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Loans | 3 Months Ended
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Mar. 31, 2021
Receivables [Abstract] |
LOANS | LOANS Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost basis adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. As of both March 31, 2021, and December 31, 2020, Farmer Mac had no loans held for sale. The following table includes loans held for investment and displays the composition of the loan balances as of March 31, 2021 and December 31, 2020: Table 5.1
| As of March 31, 2021 |  | As of December 31, 2020
| Unsecuritized |  | In Consolidated Trusts |  | Total |  | Unsecuritized |  | In Consolidated Trusts |  | Total
| (in thousands)
Farm & Ranch | $ | 5,128,442 |  |  | $ | 1,174,525 |  |  | $ | 6,302,967 |  |  | $ | 4,889,393 |  |  | $ | 1,287,045 |  |  | $ | 6,176,438 |
Rural Utilities | 2,247,104 |  |  | — |  |  | 2,247,104 |  |  | 2,260,412 |  |  | — |  |  | 2,260,412 |
Total unpaid principal balance(1) | 7,375,546 |  |  | 1,174,525 |  |  | 8,550,071 |  |  | 7,149,805 |  |  | 1,287,045 |  |  | 8,436,850 |
Unamortized premiums, discounts, fair value hedge basis adjustment, and other cost basis adjustments | (33,634) |  |  | — |  |  | (33,634) |  |  | 112,128 |  |  | — |  |  | 112,128 |
Total loans | 7,341,912 |  |  | 1,174,525 |  |  | 8,516,437 |  |  | 7,261,933 |  |  | 1,287,045 |  |  | 8,548,978 |
Allowance for losses | (14,021) |  |  | (786) |  |  | (14,807) |  |  | (12,943) |  |  | (889) |  |  | (13,832) |
Total loans, net of allowance | $ | 7,327,891 |  |  | $ | 1,173,739 |  |  | $ | 8,501,630 |  |  | $ | 7,248,990 |  |  | $ | 1,286,156 |  |  | $ | 8,535,146 |
(1)Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business. Allowance for Losses The following table is a summary, by asset type, of the allowance for losses as of March 31, 2021 and December 31, 2020: Table 5.2
| March 31, 2021 |  | December 31, 2020
| Allowance for Losses |  | Allowance for Losses
| (in thousands)
Loans: |  |  |
Farm & Ranch | $ | 3,718 |  |  | $ | 3,745 |
Rural Utilities | 11,089 |  |  | 10,087 |
Total | $ | 14,807 |  |  | $ | 13,832 |
The following is a summary of the changes in the allowance for losses for the three month period ended March 31, 2021 and 2020: Table 5.3
| For the Three Months Ended
| March 31, 2021 |  | March 31, 2020
| Allowance for Losses |  | Allowance for Losses
| (in thousands)
Farm & Ranch: |  |  |
Balance as of December 31 | $ | 3,745 |  |  | $ | 10,454 |
Cumulative effect adjustment from adoption of current expected credit loss standard | — |  |  | (3,909) |
Balance as of January 1 | 3,745 |  |  | 6,545 |
(Release of)/provision for losses | $ | (27) |  |  | $ | 808 |
Charge-offs | — |  |  | — |
Ending Balance(1) | $ | 3,718 |  |  | $ | 7,353 |
Rural Utilities: |  |  |
Balance as of December 31 | $ | 10,087 |  |  | $ | — |
Cumulative effect adjustment from adoption of current expected credit loss standard | — |  |  | 5,378 |
Balance as of January 1 | 10,087 |  |  | 5,378 |
Provision for losses | $ | 1,002 |  |  | $ | 2,125 |
Charge-offs | — |  |  | — |
Ending Balance(2) | $ | 11,089 |  |  | $ | 7,503 |
(1)As of March 31, 2021 and 2020, allowance for losses for Farm & Ranch includes no allowance and $2.2 million, respectively, for collateral dependent assets secured by agricultural real estate. (2)As of both March 31, 2021 and 2020, allowance for losses for Rural Utilities includes no allowance for collateral dependent assets. The provision to the allowance for Rural Utilities loan losses of $1.0 million recorded during first quarter 2021 was primarily attributable to the impact of ratings downgrades on multiple rural utilities that were negatively impacted by the polar vortex that struck Texas in February 2021. The small release from the allowance for the Farm & Ranch portfolio during first quarter 2021 was primarily attributable to ratings upgrades and updated loss-given-default assumptions, offset by net growth in our loan portfolio. The provision to the allowance for loan losses recorded during first quarter 2020 was primarily due to the impact of updated economic factor forecasts, particularly higher credit spreads and expected higher unemployment, as a result of the COVID-19 pandemic and the resulting economic volatility. In addition, economic factor forecasts for lower commodity prices impacted the Farm & Ranch portfolio. The following table presents the unpaid principal balances by delinquency status of Farmer Mac's loans and non-performing assets as of March 31, 2021 and December 31, 2020: Table 5.4
| As of March 31, 2021
| Accruing |  |  |  |
| Current |  | 30-59 Days |  | 60-89 Days |  | 90 Days and Greater(2) |  | Total Past Due |  | Nonaccrual loans(3)(4) |  | Total Loans
| (in thousands)
Loans(1): |  |  |  |  |  |  |  |  |  |  |  |  |
Farm & Ranch | $ | 6,154,416 |  |  | $ | 4,733 |  |  | $ | 261 |  |  | $ | 14,150 |  |  | $ | 19,144 |  |  | $ | 129,407 |  |  | $ | 6,302,967 |
Rural Utilities | 2,247,104 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,247,104 |
Total | $ | 8,401,520 |  |  | $ | 4,733 |  |  | $ | 261 |  |  | $ | 14,150 |  |  | $ | 19,144 |  |  | $ | 129,407 |  |  | $ | 8,550,071 |
(1)Amounts represent unpaid principal balance of risk rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. (2)Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (3)Includes loans that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan. (4)Includes $58.1 million of nonaccrual loans for which there was no associated allowance. During the three months ended March 31, 2021, Farmer Mac received $1.1 million in interest on nonaccrual loans.
| As of December 31, 2020
| Accruing |  |  |  |
| Current |  | 30-59 Days |  | 60-89 Days |  | 90 Days and Greater(2) |  | Total Past Due |  | Nonaccrual loans(3)(4) |  | Total Loans
| (in thousands)
Loans(1): |  |  |  |  |  |  |  |  |  |  |  |  |
Farm & Ranch | $ | 6,055,154 |  |  | $ | 4,582 |  |  | $ | 632 |  |  | $ | 1,072 |  |  | $ | 6,286 |  |  | $ | 114,998 |  |  | $ | 6,176,438 |
Rural Utilities | 2,260,412 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,260,412 |
Total | $ | 8,315,566 |  |  | $ | 4,582 |  |  | $ | 632 |  |  | $ | 1,072 |  |  | $ | 6,286 |  |  | $ | 114,998 |  |  | $ | 8,436,850 |
(1)Amounts represent unpaid principal balance of risk rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. (2)Includes loans in consolidated trusts with beneficial interests owned by third parties that are 90 days or more past due. (3)Includes loans that are 90 days or more past due, in foreclosure, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan. (4)Includes $44.2 million of nonaccrual loans for which there was no associated allowance. During the year ended December 31, 2020, Farmer Mac received $4.4 million in interest on nonaccrual loans. Credit Quality Indicators The following tables present credit quality indicators related to Farm & Ranch loans and Rural Utilities loans held as of March 31, 2021 and December 31, 2020, by year of origination: Table 5.5
| As of March 31, 2021
| Year of Origination: |  |  |  |
| 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Revolving Loans - Amortized Cost Basis |  | Total
| (in thousands)
Farm & Ranch(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Internally Assigned Risk Rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Acceptable | $ | 542,638 |  |  | $ | 1,923,390 |  |  | $ | 724,202 |  |  | $ | 443,929 |  |  | $ | 399,931 |  |  | $ | 1,334,771 |  |  | $ | 482,993 |  |  | $ | 5,851,854 |
Special mention(2) | 16,079 |  |  | 102,656 |  |  | 56,723 |  |  | 16,292 |  |  | 2,569 |  |  | 23,003 |  |  | 11,804 |  |  | 229,126 |
Substandard(3) | — |  |  | 3,655 |  |  | 25,027 |  |  | 28,825 |  |  | 57,791 |  |  | 94,565 |  |  | 12,124 |  |  | 221,987 |
Total | $ | 558,717 |  |  | $ | 2,029,701 |  |  | $ | 805,952 |  |  | $ | 489,046 |  |  | $ | 460,291 |  |  | $ | 1,452,339 |  |  | $ | 506,921 |  |  | $ | 6,302,967 |
For the Three Months Ended March 31, 2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period Farm & Ranch net charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. (2)Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (3)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
| As of March 31, 2021
| Year of Origination: |  |  |  |
| 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Revolving Loans - Amortized Cost Basis |  | Total
| (in thousands)
Rural Utilities(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Internally Assigned Risk Rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Acceptable | $ | 10,979 |  |  | $ | 639,730 |  |  | $ | 801,799 |  |  | $ | 8,181 |  |  | $ | 89,621 |  |  | $ | 650,486 |  |  | $ | 22,708 |  |  | $ | 2,223,504 |
Special mention(2) | — |  |  | 23,600 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23,600 |
Substandard(3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 10,979 |  |  | $ | 663,330 |  |  | $ | 801,799 |  |  | $ | 8,181 |  |  | $ | 89,621 |  |  | $ | 650,486 |  |  | $ | 22,708 |  |  | $ | 2,247,104 |
For the Three Months Ended March 31, 2021: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period Rural Utilities net charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. (2)Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (3)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
| As of December 31, 2020
| Year of Origination: |  |  |  |
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving Loans - Amortized Cost Basis |  | Total
| (in thousands)
Farm & Ranch(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Internally Assigned Risk Rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Acceptable | $ | 1,947,618 |  |  | $ | 774,315 |  |  | $ | 484,345 |  |  | $ | 500,768 |  |  | $ | 465,277 |  |  | $ | 1,068,693 |  |  | $ | 535,742 |  |  | $ | 5,776,758 |
Special mention(2) | 70,171 |  |  | 79,744 |  |  | 18,317 |  |  | 8,530 |  |  | 13,111 |  |  | 21,328 |  |  | 7,656 |  |  | 218,857 |
Substandard(3) | 3,400 |  |  | 5,821 |  |  | 21,879 |  |  | 52,709 |  |  | 37,173 |  |  | 50,582 |  |  | 9,259 |  |  | 180,823 |
Total | $ | 2,021,189 |  |  | $ | 859,880 |  |  | $ | 524,541 |  |  | $ | 562,007 |  |  | $ | 515,561 |  |  | $ | 1,140,603 |  |  | $ | 552,657 |  |  | $ | 6,176,438 |
For the Three Months Ended March 31, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period Farm & Ranch net charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. (2)Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (3)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.
| As of December 31, 2020
| Year of Origination: |  |  |  |
| 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving Loans - Amortized Cost Basis |  | Total
| (in thousands)
Rural Utilities(1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Internally Assigned Risk Rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Acceptable | $ | 667,489 |  |  | $ | 809,921 |  |  | $ | 8,260 |  |  | $ | 89,842 |  |  | $ | 31,275 |  |  | $ | 641,145 |  |  | $ | 12,480 |  |  | $ | 2,260,412 |
Special mention(2) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard(3) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 667,489 |  |  | $ | 809,921 |  |  | $ | 8,260 |  |  | $ | 89,842 |  |  | $ | 31,275 |  |  | $ | 641,145 |  |  | $ | 12,480 |  |  | $ | 2,260,412 |
For the Three Months Ended March 31, 2020: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current period charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Current period recoveries | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Current period Rural Utilities net charge-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
(1)Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. (2)Assets in the "Special mention" category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured. (3)Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

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- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2196816 + Details
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