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Business Segment Reporting | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | BUSINESS SEGMENT REPORTING The following tables present core earnings for Farmer Mac's operating segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2018 and 2017: Table 9.1
Core Earnings by Business Segment
For the Three Months Ended September 30, 2018
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 16,425 |  |  | $ | 5,304 |  |  | $ | 3,081 |  |  | $ | 17,600 |  |  | $ | 2,648 |  |  | $ | — |  |  | $ | 45,058 |
Less: reconciling adjustments(1)(2)(3)(4) | (2,538 | ) |  | (677 | ) |  | (204 | ) |  | (1,958 | ) |  | (604 | ) |  | 5,981 |  |  | — |
Net effective spread | 13,887 |  |  | 4,627 |  |  | 2,877 |  |  | 15,642 |  |  | 2,044 |  |  | 5,981 |  |  | — |
Guarantee and commitment fees(2) | 4,489 |  |  | 214 |  |  | 376 |  |  | 91 |  |  | — |  |  | (1,680 | ) |  | 3,490 |
Other income/(expense)(3) | 294 |  |  | 5 |  |  | 15 |  |  | — |  |  | (245 | ) |  | 880 |  |  | 949 |
Non-interest income/(loss) | 4,783 |  |  | 219 |  |  | 391 |  |  | 91 |  |  | (245 | ) |  | (800 | ) |  | 4,439 |
Provision for loan losses | (99 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (99 | )
Release of reserve for losses | 102 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 102 |
Other non-interest expense | (4,456 | ) |  | (1,288 | ) |  | (732 | ) |  | (1,844 | ) |  | (3,432 | ) |  | — |  |  | (11,752 | )
Non-interest expense(5) | (4,354 | ) |  | (1,288 | ) |  | (732 | ) |  | (1,844 | ) |  | (3,432 | ) |  | — |  |  | (11,650 | )
Core earnings before income taxes | 14,217 |  |  | 3,558 |  |  | 2,536 |  |  | 13,889 |  |  | (1,633 | ) |  | 5,181 |  | (6) | 37,748 |
Income tax (expense)/benefit | (2,986 | ) |  | (747 | ) |  | (533 | ) |  | (2,917 | ) |  | 292 |  |  | (1,088 | ) |  | (7,979 | )
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 11,231 |  |  | 2,811 |  |  | 2,003 |  |  | 10,972 |  |  | (1,341 | ) |  | 4,093 |  | (6) | 29,769 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (3,295 | ) |  | — |  |  | (3,295 | )
Segment core earnings/(losses) | $ | 11,231 |  |  | $ | 2,811 |  |  | $ | 2,003 |  |  | $ | 10,972 |  |  | $ | (4,636 | ) |  | $ | 4,093 |  | (6) | $ | 26,474 |
Total assets at carrying value | $ | 4,438,128 |  |  | $ | 2,212,515 |  |  | $ | 956,204 |  |  | $ | 8,103,181 |  |  | $ | 2,764,006 |  |  | $ | — |  |  | $ | 18,474,034 |
Total on- and off-balance sheet program assets at principal balance | $ | 7,072,018 |  |  | $ | 2,471,251 |  |  | $ | 1,632,037 |  |  | $ | 8,365,280 |  |  | — |  |  | — |  |  | $ | 19,540,586 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
(5) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
(6) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.
Core Earnings by Business Segment
For the Three Months Ended September 30, 2017
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 13,609 |  |  | $ | 5,288 |  |  | $ | 2,230 |  |  | $ | 15,431 |  |  | $ | 3,004 |  |  | $ | — |  |  | $ | 39,562 |
Less: reconciling adjustments(1)(2)(3)(4) | (2,306 | ) |  | (560 | ) |  | 535 |  |  | (976 | ) |  | (279 | ) |  | 3,586 |  |  | — |
Net effective spread | 11,303 |  |  | 4,728 |  |  | 2,765 |  |  | 14,455 |  |  | 2,725 |  |  | 3,586 |  |  | — |
Guarantee and commitment fees(2) | 4,236 |  |  | 130 |  |  | 476 |  |  | 93 |  |  | — |  |  | (1,621 | ) |  | 3,314 |
Other income/(expense)(3)(5) | 214 |  |  | 9 |  |  | 5 |  |  | — |  |  | 78 |  |  | 679 |  |  | 985 |
Non-interest income/(loss) | 4,450 |  |  | 139 |  |  | 481 |  |  | 93 |  |  | 78 |  |  | (942 | ) |  | 4,299 |
Provision for loan losses | (270 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (270 | )
Provision for reserve for losses | (114 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (114 | )
Other non-interest expense | (4,077 | ) |  | (1,080 | ) |  | (608 | ) |  | (1,670 | ) |  | (3,067 | ) |  | — |  |  | (10,502 | )
Non-interest expense(6) | (4,191 | ) |  | (1,080 | ) |  | (608 | ) |  | (1,670 | ) |  | (3,067 | ) |  | — |  |  | (10,616 | )
Core earnings before income taxes | 11,292 |  |  | 3,787 |  |  | 2,638 |  |  | 12,878 |  |  | (264 | ) |  | 2,644 |  | (7) | 32,975 |
Income tax (expense)/benefit | (3,952 | ) |  | (1,325 | ) |  | (923 | ) |  | (4,507 | ) |  | 439 |  |  | (925 | ) |  | (11,193 | )
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 7,340 |  |  | 2,462 |  |  | 1,715 |  |  | 8,371 |  |  | 175 |  |  | 1,719 |  | (7) | 21,782 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (3,295 | ) |  | — |  |  | (3,295 | )
Non-controlling interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Segment core earnings/(losses) | $ | 7,340 |  |  | $ | 2,462 |  |  | $ | 1,715 |  |  | $ | 8,371 |  |  | $ | (3,120 | ) |  | $ | 1,719 |  | (7) | $ | 18,487 |
Total assets at carrying value | $ | 4,128,778 |  |  | $ | 2,165,749 |  |  | $ | 1,073,525 |  |  | $ | 7,612,572 |  |  | $ | 2,709,614 |  |  | $ | — |  |  | $ | 17,690,238 |
Total on- and off-balance sheet program assets at principal balance | $ | 6,557,030 |  |  | $ | 2,298,956 |  |  | $ | 1,886,445 |  |  | $ | 7,901,842 |  |  | $ | — |  |  | $ | — |  |  | $ | 18,644,273 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
(5) | Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
(6) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
(7) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.
Core Earnings by Business Segment
For the Nine Months Ended September 30, 2018
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 47,255 |  |  | $ | 15,446 |  |  | $ | 8,931 |  |  | $ | 54,237 |  |  | $ | 6,351 |  |  | $ | — |  |  | $ | 132,220 |
Less: reconciling adjustments(1)(2)(3)(4) | (7,481 | ) |  | (2,021 | ) |  | (181 | ) |  | (8,551 | ) |  | (1,646 | ) |  | 19,880 |  |  | — |
Net effective spread | 39,774 |  |  | 13,425 |  |  | 8,750 |  |  | 45,686 |  |  | 4,705 |  |  | 19,880 |  |  | — |
Guarantee and commitment fees(2) | 13,356 |  |  | 570 |  |  | 1,227 |  |  | 271 |  |  | — |  |  | (4,954 | ) |  | 10,470 |
Other income/(expense)(3) | 1,193 |  |  | 18 |  |  | 25 |  |  | — |  |  | (594 | ) |  | (54 | ) |  | 588 |
Non-interest income/(loss) | 14,549 |  |  | 588 |  |  | 1,252 |  |  | 271 |  |  | (594 | ) |  | (5,008 | ) |  | 11,058 |
Provision for loan losses | (92 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (92 | )
Provision for reserve for losses | (77 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (77 | )
Other non-interest expense | (13,930 | ) |  | (3,793 | ) |  | (2,144 | ) |  | (5,720 | ) |  | (10,549 | ) |  | — |  |  | (36,136 | )
Non-interest expense(5) | (14,007 | ) |  | (3,793 | ) |  | (2,144 | ) |  | (5,720 | ) |  | (10,549 | ) |  | — |  |  | (36,213 | )
Core earnings before income taxes | 40,224 |  |  | 10,220 |  |  | 7,858 |  |  | 40,237 |  |  | (6,438 | ) |  | 14,872 |  | (6) | 106,973 |
Income tax (expense)/benefit | (8,447 | ) |  | (2,146 | ) |  | (1,651 | ) |  | (8,450 | ) |  | 2,067 |  |  | (3,122 | ) |  | (21,749 | )
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 31,777 |  |  | 8,074 |  |  | 6,207 |  |  | 31,787 |  |  | (4,371 | ) |  | 11,750 |  | (6) | 85,224 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (9,886 | ) |  | — |  |  | (9,886 | )
Segment core earnings/(losses) | $ | 31,777 |  |  | $ | 8,074 |  |  | $ | 6,207 |  |  | $ | 31,787 |  |  | $ | (14,257 | ) |  | $ | 11,750 |  | (6) | $ | 75,338 |
Total assets at carrying value | $ | 4,438,128 |  |  | $ | 2,212,515 |  |  | $ | 956,204 |  |  | $ | 8,103,181 |  |  | $ | 2,764,006 |  |  | $ | — |  |  | $ | 18,474,034 |
Total on- and off-balance sheet program assets at principal balance | $ | 7,072,018 |  |  | $ | 2,471,251 |  |  | $ | 1,632,037 |  |  | $ | 8,365,280 |  |  | — |  |  | — |  |  | $ | 19,540,586 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
(5) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
(6) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.
Core Earnings by Business Segment
For the Nine Months Ended September 30, 2017
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 39,701 |  |  | $ | 15,747 |  |  | $ | 8,181 |  |  | $ | 44,364 |  |  | $ | 8,371 |  |  | $ | — |  |  | $ | 116,364 |
Less: reconciling adjustments(1)(2)(3)(4) | (6,729 | ) |  | (1,907 | ) |  | (179 | ) |  | (2,827 | ) |  | (886 | ) |  | 12,528 |  |  | — |
Net effective spread | 32,972 |  |  | 13,840 |  |  | 8,002 |  |  | 41,537 |  |  | 7,485 |  |  | 12,528 |  |  | — |
Guarantee and commitment fees(2) | 12,722 |  |  | 303 |  |  | 1,455 |  |  | 713 |  |  | — |  |  | (4,563 | ) |  | 10,630 |
Other income/(expense)(3)(5) | 1,402 |  |  | 34 |  |  | 15 |  |  | — |  |  | 199 |  |  | 2,559 |  |  | 4,209 |
Non-interest income/(loss) | 14,124 |  |  | 337 |  |  | 1,470 |  |  | 713 |  |  | 199 |  |  | (2,004 | ) |  | 14,839 |
Provision for loan losses | (1,234 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,234 | )
Provision for reserve for losses | (60 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (60 | )
Other non-interest expense | (12,588 | ) |  | (3,333 | ) |  | (1,838 | ) |  | (4,813 | ) |  | (9,923 | ) |  | — |  |  | (32,495 | )
Non-interest expense(6) | (12,648 | ) |  | (3,333 | ) |  | (1,838 | ) |  | (4,813 | ) |  | (9,923 | ) |  | — |  |  | (32,555 | )
Core earnings before income taxes | 33,214 |  |  | 10,844 |  |  | 7,634 |  |  | 37,437 |  |  | (2,239 | ) |  | 10,524 |  | (7) | 97,414 |
Income tax (expense)/benefit | (11,625 | ) |  | (3,795 | ) |  | (2,671 | ) |  | (13,103 | ) |  | 1,775 |  |  | (3,684 | ) |  | (33,103 | )
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 21,589 |  |  | 7,049 |  |  | 4,963 |  |  | 24,334 |  |  | (464 | ) |  | 6,840 |  | (7) | 64,311 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (9,886 | ) |  | — |  |  | (9,886 | )
Non-controlling interest | — |  |  | — |  |  | — |  |  | — |  |  | 165 |  |  | — |  |  | 165 |
Segment core earnings/(losses) | $ | 21,589 |  |  | $ | 7,049 |  |  | $ | 4,963 |  |  | $ | 24,334 |  |  | $ | (10,185 | ) |  | $ | 6,840 |  | (7) | $ | 54,590 |
Total assets at carrying value | $ | 4,128,778 |  |  | $ | 2,165,749 |  |  | $ | 1,073,525 |  |  | $ | 7,612,572 |  |  | $ | 2,709,614 |  |  | $ | — |  |  | $ | 17,690,238 |
Total on- and off-balance sheet program assets at principal balance | $ | 6,557,030 |  |  | $ | 2,298,956 |  |  | $ | 1,886,445 |  |  | $ | 7,901,842 |  |  | — |  |  | — |  |  | $ | 18,644,273 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
(5) | Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
(6) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
(7) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Table 9.1
Core Earnings by Business Segment
For the Three Months Ended September 30, 2018
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 16,425 |  |  | $ | 5,304 |  |  | $ | 3,081 |  |  | $ | 17,600 |  |  | $ | 2,648 |  |  | $ | — |  |  | $ | 45,058 |
Less: reconciling adjustments(1)(2)(3)(4) | (2,538 | ) |  | (677 | ) |  | (204 | ) |  | (1,958 | ) |  | (604 | ) |  | 5,981 |  |  | — |
Net effective spread | 13,887 |  |  | 4,627 |  |  | 2,877 |  |  | 15,642 |  |  | 2,044 |  |  | 5,981 |  |  | — |
Guarantee and commitment fees(2) | 4,489 |  |  | 214 |  |  | 376 |  |  | 91 |  |  | — |  |  | (1,680 | ) |  | 3,490 |
Other income/(expense)(3) | 294 |  |  | 5 |  |  | 15 |  |  | — |  |  | (245 | ) |  | 880 |  |  | 949 |
Non-interest income/(loss) | 4,783 |  |  | 219 |  |  | 391 |  |  | 91 |  |  | (245 | ) |  | (800 | ) |  | 4,439 |
Provision for loan losses | (99 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (99 | )
Release of reserve for losses | 102 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 102 |
Other non-interest expense | (4,456 | ) |  | (1,288 | ) |  | (732 | ) |  | (1,844 | ) |  | (3,432 | ) |  | — |  |  | (11,752 | )
Non-interest expense(5) | (4,354 | ) |  | (1,288 | ) |  | (732 | ) |  | (1,844 | ) |  | (3,432 | ) |  | — |  |  | (11,650 | )
Core earnings before income taxes | 14,217 |  |  | 3,558 |  |  | 2,536 |  |  | 13,889 |  |  | (1,633 | ) |  | 5,181 |  | (6) | 37,748 |
Income tax (expense)/benefit | (2,986 | ) |  | (747 | ) |  | (533 | ) |  | (2,917 | ) |  | 292 |  |  | (1,088 | ) |  | (7,979 | )
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 11,231 |  |  | 2,811 |  |  | 2,003 |  |  | 10,972 |  |  | (1,341 | ) |  | 4,093 |  | (6) | 29,769 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (3,295 | ) |  | — |  |  | (3,295 | )
Segment core earnings/(losses) | $ | 11,231 |  |  | $ | 2,811 |  |  | $ | 2,003 |  |  | $ | 10,972 |  |  | $ | (4,636 | ) |  | $ | 4,093 |  | (6) | $ | 26,474 |
Total assets at carrying value | $ | 4,438,128 |  |  | $ | 2,212,515 |  |  | $ | 956,204 |  |  | $ | 8,103,181 |  |  | $ | 2,764,006 |  |  | $ | — |  |  | $ | 18,474,034 |
Total on- and off-balance sheet program assets at principal balance | $ | 7,072,018 |  |  | $ | 2,471,251 |  |  | $ | 1,632,037 |  |  | $ | 8,365,280 |  |  | — |  |  | — |  |  | $ | 19,540,586 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
(5) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
(6) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.
Core Earnings by Business Segment
For the Three Months Ended September 30, 2017
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 13,609 |  |  | $ | 5,288 |  |  | $ | 2,230 |  |  | $ | 15,431 |  |  | $ | 3,004 |  |  | $ | — |  |  | $ | 39,562 |
Less: reconciling adjustments(1)(2)(3)(4) | (2,306 | ) |  | (560 | ) |  | 535 |  |  | (976 | ) |  | (279 | ) |  | 3,586 |  |  | — |
Net effective spread | 11,303 |  |  | 4,728 |  |  | 2,765 |  |  | 14,455 |  |  | 2,725 |  |  | 3,586 |  |  | — |
Guarantee and commitment fees(2) | 4,236 |  |  | 130 |  |  | 476 |  |  | 93 |  |  | — |  |  | (1,621 | ) |  | 3,314 |
Other income/(expense)(3)(5) | 214 |  |  | 9 |  |  | 5 |  |  | — |  |  | 78 |  |  | 679 |  |  | 985 |
Non-interest income/(loss) | 4,450 |  |  | 139 |  |  | 481 |  |  | 93 |  |  | 78 |  |  | (942 | ) |  | 4,299 |
Provision for loan losses | (270 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (270 | )
Provision for reserve for losses | (114 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (114 | )
Other non-interest expense | (4,077 | ) |  | (1,080 | ) |  | (608 | ) |  | (1,670 | ) |  | (3,067 | ) |  | — |  |  | (10,502 | )
Non-interest expense(6) | (4,191 | ) |  | (1,080 | ) |  | (608 | ) |  | (1,670 | ) |  | (3,067 | ) |  | — |  |  | (10,616 | )
Core earnings before income taxes | 11,292 |  |  | 3,787 |  |  | 2,638 |  |  | 12,878 |  |  | (264 | ) |  | 2,644 |  | (7) | 32,975 |
Income tax (expense)/benefit | (3,952 | ) |  | (1,325 | ) |  | (923 | ) |  | (4,507 | ) |  | 439 |  |  | (925 | ) |  | (11,193 | )
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 7,340 |  |  | 2,462 |  |  | 1,715 |  |  | 8,371 |  |  | 175 |  |  | 1,719 |  | (7) | 21,782 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (3,295 | ) |  | — |  |  | (3,295 | )
Non-controlling interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Segment core earnings/(losses) | $ | 7,340 |  |  | $ | 2,462 |  |  | $ | 1,715 |  |  | $ | 8,371 |  |  | $ | (3,120 | ) |  | $ | 1,719 |  | (7) | $ | 18,487 |
Total assets at carrying value | $ | 4,128,778 |  |  | $ | 2,165,749 |  |  | $ | 1,073,525 |  |  | $ | 7,612,572 |  |  | $ | 2,709,614 |  |  | $ | — |  |  | $ | 17,690,238 |
Total on- and off-balance sheet program assets at principal balance | $ | 6,557,030 |  |  | $ | 2,298,956 |  |  | $ | 1,886,445 |  |  | $ | 7,901,842 |  |  | $ | — |  |  | $ | — |  |  | $ | 18,644,273 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
(5) | Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
(6) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
(7) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.
Core Earnings by Business Segment
For the Nine Months Ended September 30, 2018
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 47,255 |  |  | $ | 15,446 |  |  | $ | 8,931 |  |  | $ | 54,237 |  |  | $ | 6,351 |  |  | $ | — |  |  | $ | 132,220 |
Less: reconciling adjustments(1)(2)(3)(4) | (7,481 | ) |  | (2,021 | ) |  | (181 | ) |  | (8,551 | ) |  | (1,646 | ) |  | 19,880 |  |  | — |
Net effective spread | 39,774 |  |  | 13,425 |  |  | 8,750 |  |  | 45,686 |  |  | 4,705 |  |  | 19,880 |  |  | — |
Guarantee and commitment fees(2) | 13,356 |  |  | 570 |  |  | 1,227 |  |  | 271 |  |  | — |  |  | (4,954 | ) |  | 10,470 |
Other income/(expense)(3) | 1,193 |  |  | 18 |  |  | 25 |  |  | — |  |  | (594 | ) |  | (54 | ) |  | 588 |
Non-interest income/(loss) | 14,549 |  |  | 588 |  |  | 1,252 |  |  | 271 |  |  | (594 | ) |  | (5,008 | ) |  | 11,058 |
Provision for loan losses | (92 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (92 | )
Provision for reserve for losses | (77 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (77 | )
Other non-interest expense | (13,930 | ) |  | (3,793 | ) |  | (2,144 | ) |  | (5,720 | ) |  | (10,549 | ) |  | — |  |  | (36,136 | )
Non-interest expense(5) | (14,007 | ) |  | (3,793 | ) |  | (2,144 | ) |  | (5,720 | ) |  | (10,549 | ) |  | — |  |  | (36,213 | )
Core earnings before income taxes | 40,224 |  |  | 10,220 |  |  | 7,858 |  |  | 40,237 |  |  | (6,438 | ) |  | 14,872 |  | (6) | 106,973 |
Income tax (expense)/benefit | (8,447 | ) |  | (2,146 | ) |  | (1,651 | ) |  | (8,450 | ) |  | 2,067 |  |  | (3,122 | ) |  | (21,749 | )
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 31,777 |  |  | 8,074 |  |  | 6,207 |  |  | 31,787 |  |  | (4,371 | ) |  | 11,750 |  | (6) | 85,224 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (9,886 | ) |  | — |  |  | (9,886 | )
Segment core earnings/(losses) | $ | 31,777 |  |  | $ | 8,074 |  |  | $ | 6,207 |  |  | $ | 31,787 |  |  | $ | (14,257 | ) |  | $ | 11,750 |  | (6) | $ | 75,338 |
Total assets at carrying value | $ | 4,438,128 |  |  | $ | 2,212,515 |  |  | $ | 956,204 |  |  | $ | 8,103,181 |  |  | $ | 2,764,006 |  |  | $ | — |  |  | $ | 18,474,034 |
Total on- and off-balance sheet program assets at principal balance | $ | 7,072,018 |  |  | $ | 2,471,251 |  |  | $ | 1,632,037 |  |  | $ | 8,365,280 |  |  | — |  |  | — |  |  | $ | 19,540,586 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
(5) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
(6) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.
Core Earnings by Business Segment
For the Nine Months Ended September 30, 2017
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 39,701 |  |  | $ | 15,747 |  |  | $ | 8,181 |  |  | $ | 44,364 |  |  | $ | 8,371 |  |  | $ | — |  |  | $ | 116,364 |
Less: reconciling adjustments(1)(2)(3)(4) | (6,729 | ) |  | (1,907 | ) |  | (179 | ) |  | (2,827 | ) |  | (886 | ) |  | 12,528 |  |  | — |
Net effective spread | 32,972 |  |  | 13,840 |  |  | 8,002 |  |  | 41,537 |  |  | 7,485 |  |  | 12,528 |  |  | — |
Guarantee and commitment fees(2) | 12,722 |  |  | 303 |  |  | 1,455 |  |  | 713 |  |  | — |  |  | (4,563 | ) |  | 10,630 |
Other income/(expense)(3)(5) | 1,402 |  |  | 34 |  |  | 15 |  |  | — |  |  | 199 |  |  | 2,559 |  |  | 4,209 |
Non-interest income/(loss) | 14,124 |  |  | 337 |  |  | 1,470 |  |  | 713 |  |  | 199 |  |  | (2,004 | ) |  | 14,839 |
Provision for loan losses | (1,234 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,234 | )
Provision for reserve for losses | (60 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (60 | )
Other non-interest expense | (12,588 | ) |  | (3,333 | ) |  | (1,838 | ) |  | (4,813 | ) |  | (9,923 | ) |  | — |  |  | (32,495 | )
Non-interest expense(6) | (12,648 | ) |  | (3,333 | ) |  | (1,838 | ) |  | (4,813 | ) |  | (9,923 | ) |  | — |  |  | (32,555 | )
Core earnings before income taxes | 33,214 |  |  | 10,844 |  |  | 7,634 |  |  | 37,437 |  |  | (2,239 | ) |  | 10,524 |  | (7) | 97,414 |
Income tax (expense)/benefit | (11,625 | ) |  | (3,795 | ) |  | (2,671 | ) |  | (13,103 | ) |  | 1,775 |  |  | (3,684 | ) |  | (33,103 | )
Core earnings before preferred stock dividends and attribution of income to non-controlling interest | 21,589 |  |  | 7,049 |  |  | 4,963 |  |  | 24,334 |  |  | (464 | ) |  | 6,840 |  | (7) | 64,311 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (9,886 | ) |  | — |  |  | (9,886 | )
Non-controlling interest | — |  |  | — |  |  | — |  |  | — |  |  | 165 |  |  | — |  |  | 165 |
Segment core earnings/(losses) | $ | 21,589 |  |  | $ | 7,049 |  |  | $ | 4,963 |  |  | $ | 24,334 |  |  | $ | (10,185 | ) |  | $ | 6,840 |  | (7) | $ | 54,590 |
Total assets at carrying value | $ | 4,128,778 |  |  | $ | 2,165,749 |  |  | $ | 1,073,525 |  |  | $ | 7,612,572 |  |  | $ | 2,709,614 |  |  | $ | — |  |  | $ | 17,690,238 |
Total on- and off-balance sheet program assets at principal balance | $ | 6,557,030 |  |  | $ | 2,298,956 |  |  | $ | 1,886,445 |  |  | $ | 7,901,842 |  |  | — |  |  | — |  |  | $ | 18,644,273 |
(1) | Excludes the amortization of premiums and discounts on assets consolidated at fair value, originally included in interest income, to reflect core earnings amounts.
(2) | Includes the reclassification of interest income and interest expense from consolidated trusts owned by third parties to guarantee and commitment fees, to reflect management's view that the net interest income Farmer Mac earns is effectively a guarantee fee.
(3) | Includes the reclassification of interest expense related to interest rate swaps not designated as hedges, which are included in "Gains/(losses) on financial derivatives and hedging activities" on the consolidated financial statements, to determine the effective funding cost for each operating segment.
(4) | Effective in fourth quarter 2017, Farmer Mac revised its methodology for calculating net effective spread, a component of core earnings, to also include the net effects of gains/(losses) due to terminations or net settlements on financial derivatives and hedging activities. All prior period information has been recast to reflect the revised methodology. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Use of Non-GAAP Measures—Net Effective Spread."
(5) | Includes reconciling adjustments for fair value adjustments on financial derivatives and trading assets. Also includes a reconciling adjustment related to the recognition of deferred gains over the estimated lives of certain Farmer Mac Guaranteed Securities and USDA Securities.
(6) | Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount.
(7) | Net adjustments to reconcile to the corresponding income measures: core earnings before income taxes reconciled to income before income taxes; core earnings before preferred stock dividends and attribution of income to non-controlling interest reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8813-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8736-108599 + Details
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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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