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Related Party Transactions | 12 Months Ended
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Dec. 31, 2020
Related Party Transactions [Abstract] |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSFarmer Mac considers an entity to be a related party if (1) the entity holds at least 5% of a class of Farmer Mac voting common stock or (2) the institution has an affiliation with a Farmer Mac director and conducts material business with Farmer Mac. As provided by Farmer Mac's statutory charter, only banks, insurance companies, and other financial institutions or similar entities may hold Farmer Mac's Class A voting common stock and only institutions of the Farm Credit System may hold Farmer Mac's Class B voting common stock. Farmer Mac's statutory charter also provides that Class A stockholders elect 5 members of Farmer Mac's 15-member board of directors and that Class B stockholders elect 5 members of the board of directors. Farmer Mac generally requires financial institutions to own a requisite amount of common stock, based on the size and type of institution, to participate in the Farm & Ranch line of business. As a result of these requirements, Farmer Mac conducts business with related parties in the normal course of Farmer Mac's business. All related party transactions were conducted with terms and conditions comparable to those available to any other participant in Farmer Mac's lines of business not related to Farmer Mac. Zions Bancorporation, National Association: Farmer Mac considers Zions Bancorporation, National Association and its affiliates ("Zions") a related party because Zions owns approximately 31.2% of Farmer Mac's Class A voting common stock. The following transactions occurred between Farmer Mac and Zions during 2020, 2019, and 2018: Table 3.1
| For the Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (in thousands)
Unpaid Principal Balance: |  |  |  |  |
Purchases: |  |  |  |  |
Loans | $ | 177,143 |  |  | $ | 129,040 |  |  | $ | 114,719 |
USDA Securities | 10,764 |  |  | 8,875 |  |  | 19,120 |
Sales of Farmer Mac Guaranteed Securities | 41,247 |  |  | 163,134 |  |  | 68,721 |
The purchases of loans from Zions under the Farm & Ranch line of business represented approximately 7.1%, 9.5%, and 11.9% of Farm & Ranch loan purchases for the years ended December 31, 2020, 2019, and 2018, respectively, and 6.2%, 7.6% and 8.2%, respectively, of total new Farm & Ranch business volume. The purchases of USDA Securities from Zions under the USDA Guarantees line of business represented approximately 1.4%, 2.1%, and 4.2% of purchases in that line of business for the years ended December 31, 2020, 2019, and 2018, respectively. Outstanding Farm & Ranch loans, USDA Securities, and AgVantage securities purchased from Zions represented 4.1% and 4.5%, respectively, of Farmer Mac's outstanding business volume as of December 31, 2020 and 2019. Zions retained servicing fees of $11.8 million, $12.2 million, and $11.6 million in 2020, 2019, and 2018, respectively, for its work as a Farmer Mac servicer. National Rural Utilities Cooperative Financial Corporation: Farmer Mac considers the National Rural Utilities Cooperative Financial Corporation ("CFC") a related party because CFC owns approximately 7.9% of Farmer Mac's Class A voting common stock and because a member of Farmer Mac's board of directors has an affiliation with CFC. The following transactions occurred between Farmer Mac and CFC during 2020, 2019, and 2018: Table 3.2
Farmer Mac Loan Purchases and Guarantees
| For the Years Ended December 31,
| 2020 |  | 2019 |  | 2018
| (in thousands)
Unpaid Principal Balance: |  |  |  |  |
Loans | $ | 272,943 |  |  | $ | 85,000 |  |  | $ | 11,645 |
Off-balance sheet revolving line of credit | 19,500 |  |  | — |  |  | — |
On-balance sheet AgVantage Securities | 250,000 |  |  | 575,000 |  |  | 675,000 |
Off-balance sheet revolving floating rate AgVantage facility | — |  |  | — |  |  | 300,000 |
Total purchases and guarantees | $ | 542,443 |  |  | $ | 660,000 |  |  | $ | 986,645 |
The transactions with CFC represented 36.7% of Farmer Mac's loan purchase volume under the Rural Utilities line of business for 2020, compared to 9.8% of Farmer Mac's loan purchase volume for 2019 and 100% for 2018. These transactions represented 19.2%, 25.5%, and 29.5% of AgVantage securities volume under the Institutional Credit line of business for 2020, 2019, and 2018, respectively, and represented 9.5%, 12.5%, and 19.1% of total purchases, guarantees, and LTSPCs for 2020, 2019, and 2018, respectively. Of Farmer Mac's total outstanding business volume as of December 31, 2020 and 2019, Rural Utilities loans, loans under LTSPCs, and AgVantage securities issued by CFC represented 19.2% and 21.2%, respectively. Farmer Mac had interest receivable of $5.3 million and $9.2 million as of December 31, 2020 and 2019, respectively, and earned interest income of $63.1 million, $97.3 million, and $76.8 million during 2020, 2019, and 2018, respectively, related to its AgVantage transactions with CFC. As of both December 31, 2020 and 2019, Farmer Mac had $0.1 million of commitment fees receivable from CFC and earned commitment fees of $1.3 million, $1.7 million, and $1.9 million, respectively for 2020, 2019, and 2018. CFC retained servicing fees of $3.3 million, $3.2 million and $3.6 million in 2020, 2019, and 2018, respectively, for its work as a Farmer Mac central servicer. CoBank: Farmer Mac considers CoBank a related party because CoBank owns approximately 32.6% of Farmer Mac's Class B voting common stock and because a member of Farmer Mac's board of directors had an affiliation with CoBank through the end of 2019. Farmer Mac purchased $416.8 million and $776.4 million of loans and participations from CoBank, under the Rural Utilities line of business in 2020 and 2019, respectively. The transactions with CoBank represented 56.0% and 89.1% of Farmer Mac's loan purchase transactions under the Rural Utilities line of business for 2020 and 2019, respectively. During 2018, Farmer Mac did not do any business with CoBank through any of its lines of business. CoBank retained servicing fees of $2.3 million and $1.2 million in 2020 and 2019, respectively, for its work as a Farmer Mac central servicer. During 2018, CoBank was not a Farmer Mac central servicer. AgFirst Farm Credit Bank: Farmer Mac considers AgFirst Farm Credit Bank ("AgFirst") a related party because AgFirst owns approximately 16.8% of Farmer Mac's Class B voting common stock. AgFirst entered into $32.5 million, $26.7 million, and $26.6 million of LTSPC transactions in 2020, 2019, and 2018, respectively, and the aggregate balance of LTSPCs outstanding as of December 31, 2020 and 2019 was $331.2 million and $332.4 million, respectively. In each of 2020, 2019, and 2018, Farmer Mac received $1.2 million in commitment fees from AgFirst, and had $0.1 million of commitment fees receivable as of both December 31, 2020 and 2019. AgFirst owns certain securities backed by rural housing loans. Farmer Mac guarantees the last ten percent of losses (based on the original principal balance at the time of pooling) from each loan in the pool backing those securities. As of December 31, 2020 and 2019, the outstanding balance of those securities owned by AgFirst was $5.5 million and $7.0 million, respectively. Farmer Mac received guarantee fees of $25,000, $29,000, and $33,000 in 2020, 2019, and 2018, respectively, on those securities. Farm Credit Bank of Texas: Farmer Mac considers Farm Credit Bank of Texas a related party because the bank owns approximately 7.7% of Farmer Mac's Class B voting common stock. Farmer Mac received from Farm Credit Bank of Texas commitment fees of $1.2 million, $1.1 million, and $1.0 million in 2020, 2019, and 2018, respectively. The aggregate amount of LTSPCs outstanding with Farm Credit Bank of Texas as of December 31, 2020 and 2019 was $304.9 million and $270.3 million, respectively. In 2020, 2019, and 2018, Farm Credit Bank of Texas retained $0.1 million, $0.1 million, and $0.2 million, respectively, in servicing fees for its work as a Farmer Mac central servicer. Other Related Party Transactions: Farmer Mac considers Bath State Bank and Farm Credit of Florida related parties because a member of Farmer Mac's board of directors is affiliated with those entities. Farmer Mac purchased $9.2 million, $4.0 million, and $2.0 million in USDA Securities from Bath State Bank in 2020, 2019, and 2018, respectively. Farmer Mac purchased $0.2 million of Farm & Ranch loans from Farm Credit of Florida in 2020. Farmer Mac did not purchase any loans from Farm Credit of Florida in 2019 or 2018.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864 + Details
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