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Business Segment Reporting (Tables) | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by Segment | 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, 2021 and 2020: Table 10.1
Core Earnings by Business Segment
For the Three Months Ended September 30, 2021
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 24,893 |  |  | $ | 6,449 |  |  | $ | 7,018 |  |  | $ | 13,707 |  |  | $ | 2,938 |  |  | $ | — |  |  | $ | 55,005 |
Less: reconciling adjustments(1)(2)(3) | (526) |  |  | 398 |  |  | (554) |  |  | 1,652 |  |  | (50) |  |  | (920) |  |  | — |
Net effective spread | 24,367 |  |  | 6,847 |  |  | 6,464 |  |  | 15,359 |  |  | 2,888 |  |  | (920) |  |  | — |
Guarantee and commitment fees(2) | 3,831 |  |  | 166 |  |  | 320 |  |  | 5 |  |  | — |  |  | (1,167) |  |  | 3,155 |
Other income/(expense)(3) | 405 |  |  | 152 |  |  | 2 |  |  | — |  |  | 128 |  |  | (2,162) |  |  | (1,475) |
Non-interest income/(loss) | 4,236 |  |  | 318 |  |  | 322 |  |  | 5 |  |  | 128 |  |  | (3,329) |  |  | 1,680 |
(Provision for)/release of losses | (414) |  |  | — |  |  | 120 |  |  | (78) |  |  | 6 |  |  | — |  |  | (366) |
Release of reserve for losses | 91 |  |  | — |  |  | 20 |  |  | — |  |  | — |  |  | — |  |  | 111 |
Other non-interest expense | (6,275) |  |  | (2,284) |  |  | (1,889) |  |  | (2,514) |  |  | (4,145) |  |  | — |  |  | (17,107) |
Non-interest expense(4) | (6,184) |  |  | (2,284) |  |  | (1,869) |  |  | (2,514) |  |  | (4,145) |  |  | — |  |  | (16,996) |
Core earnings before income taxes | 22,005 |  |  | 4,881 |  |  | 5,037 |  |  | 12,772 |  |  | (1,123) |  |  | (4,249) |  | (5) | 39,323 |
Income tax (expense)/benefit | (4,621) |  |  | (1,025) |  |  | (1,058) |  |  | (2,682) |  |  | 234 |  |  | 892 |  |  | (8,260) |
Core earnings before preferred stock dividends | 17,384 |  |  | 3,856 |  |  | 3,979 |  |  | 10,090 |  |  | (889) |  |  | (3,357) |  | (5) | 31,063 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (6,774) |  |  | — |  |  | (6,774) |
Segment core earnings/(losses) | $ | 17,384 |  |  | $ | 3,856 |  |  | $ | 3,979 |  |  | $ | 10,090 |  |  | $ | (7,663) |  |  | $ | (3,357) |  | (5) | $ | 24,289 |
Total assets at carrying value | $ | 6,883,879 |  |  | $ | 2,522,382 |  |  | $ | 2,249,071 |  |  | $ | 8,395,286 |  |  | $ | 4,693,750 |  |  | $ | — |  |  | $ | 24,744,368 |
Total on- and off-balance sheet program assets at principal balance | $ | 9,445,359 |  |  | $ | 2,722,702 |  |  | $ | 2,817,427 |  |  | $ | 8,133,303 |  |  | $ | — |  |  | $ | — |  |  | $ | 23,118,791 |
(1)Includes 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 "Losses on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. (5)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 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, 2020
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 18,093 |  |  | $ | 4,747 |  |  | $ | 5,709 |  |  | $ | 14,171 |  |  | $ | 1,941 |  |  | $ | — |  |  | $ | 44,661 |
Less: reconciling adjustments(1)(2)(3) | (68) |  |  | 1,118 |  |  | 1,230 |  |  | 4,430 |  |  | 431 |  |  | (7,141) |  |  | — |
Net effective spread | 18,025 |  |  | 5,865 |  |  | 6,939 |  |  | 18,601 |  |  | 2,372 |  |  | (7,141) |  |  | — |
Guarantee and commitment fees(2) | 4,111 |  |  | 213 |  |  | 328 |  |  | 7 |  |  | — |  |  | (1,500) |  |  | 3,159 |
Other income/(expense)(3) | 443 |  |  | 135 |  |  | — |  |  | — |  |  | (125) |  |  | (681) |  |  | (228) |
Non-interest income/(loss) | 4,554 |  |  | 348 |  |  | 328 |  |  | 7 |  |  | (125) |  |  | (2,181) |  |  | 2,931 |
Release of/(provision for) losses | 300 |  |  | — |  |  | (1,182) |  |  | 228 |  |  | 1 |  |  | — |  |  | (653) |
(Provision for)/release of reserve for losses | (628) |  |  | — |  |  | 81 |  |  | — |  |  | — |  |  | — |  |  | (547) |
Other non-interest expense | (5,381) |  |  | (1,643) |  |  | (1,438) |  |  | (2,160) |  |  | (3,938) |  |  | — |  |  | (14,560) |
Non-interest expense(4) | (6,009) |  |  | (1,643) |  |  | (1,357) |  |  | (2,160) |  |  | (3,938) |  |  | — |  |  | (15,107) |
Core earnings before income taxes | 16,870 |  |  | 4,570 |  |  | 4,728 |  |  | 16,676 |  |  | (1,690) |  |  | (9,322) |  | (5) | 31,832 |
Income tax (expense)/benefit | (3,543) |  |  | (960) |  |  | (993) |  |  | (3,502) |  |  | 701 |  |  | 1,957 |  |  | (6,340) |
Core earnings before preferred stock dividends | 13,327 |  |  | 3,610 |  |  | 3,735 |  |  | 13,174 |  |  | (989) |  |  | (7,365) |  | (5) | 25,492 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (5,166) |  |  | — |  |  | (5,166) |
Loss on retirement of preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,667) |  |  | (1,667) |
Segment core earnings/(losses) | $ | 13,327 |  |  | $ | 3,610 |  |  | $ | 3,735 |  |  | $ | 13,174 |  |  | $ | (6,155) |  |  | $ | (9,032) |  | (5) | $ | 18,659 |
Total assets at carrying value | $ | 5,961,307 |  |  | $ | 2,487,687 |  |  | $ | 2,256,011 |  |  | $ | 8,716,923 |  |  | $ | 4,576,909 |  |  | $ | — |  |  | $ | 23,998,837 |
Total on- and off-balance sheet program assets at principal balance | $ | 8,249,349 |  |  | $ | 2,735,128 |  |  | $ | 2,685,309 |  |  | $ | 8,319,502 |  |  | $ | — |  |  | $ | — |  |  | $ | 21,989,288 |
(1)Includes 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 "Losses on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. (5)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 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, 2021
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 70,805 |  |  | $ | 18,227 |  |  | $ | 19,995 |  |  | $ | 46,124 |  |  | $ | 8,234 |  |  | $ | — |  |  | $ | 163,385 |
Less: reconciling adjustments(1)(2)(3) | (1,006) |  |  | 1,969 |  |  | (242) |  |  | 2,039 |  |  | 190 |  |  | (2,950) |  |  | — |
Net effective spread | 69,799 |  |  | 20,196 |  |  | 19,753 |  |  | 48,163 |  |  | 8,424 |  |  | (2,950) |  |  | — |
Guarantee and commitment fees(2) | 11,403 |  |  | 522 |  |  | 956 |  |  | 15 |  |  | — |  |  | (3,714) |  |  | 9,182 |
Other income/(expense)(3) | 1,118 |  |  | 441 |  |  | 3 |  |  | — |  |  | (123) |  |  | (744) |  |  | 695 |
Non-interest income/(loss) | 12,521 |  |  | 963 |  |  | 959 |  |  | 15 |  |  | (123) |  |  | (4,458) |  |  | 9,877 |
Release of/(provision for) losses | 239 |  |  | — |  |  | (701) |  |  | (40) |  |  | (16) |  |  | — |  |  | (518) |
Release of reserve for losses | 994 |  |  | — |  |  | 283 |  |  | — |  |  | — |  |  | — |  |  | 1,277 |
Other non-interest expense | (18,679) |  |  | (7,080) |  |  | (5,784) |  |  | (7,420) |  |  | (13,903) |  |  | — |  |  | (52,866) |
Non-interest expense(4) | (17,685) |  |  | (7,080) |  |  | (5,501) |  |  | (7,420) |  |  | (13,903) |  |  | — |  |  | (51,589) |
Core earnings before income taxes | 64,874 |  |  | 14,079 |  |  | 14,510 |  |  | 40,718 |  |  | (5,618) |  |  | (7,408) |  | (5) | 121,155 |
Income tax (expense)/benefit | (13,623) |  |  | (2,957) |  |  | (3,047) |  |  | (8,551) |  |  | 1,043 |  |  | 1,556 |  |  | (25,579) |
Core earnings before preferred stock dividends | 51,251 |  |  | 11,122 |  |  | 11,463 |  |  | 32,167 |  |  | (4,575) |  |  | (5,852) |  | (5) | 95,576 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (17,885) |  |  | — |  |  | (17,885) |
Segment core earnings/(losses) | $ | 51,251 |  |  | $ | 11,122 |  |  | $ | 11,463 |  |  | $ | 32,167 |  |  | $ | (22,460) |  |  | $ | (5,852) |  | (5) | $ | 77,691 |
Total assets at carrying value | $ | 6,883,879 |  |  | $ | 2,522,382 |  |  | $ | 2,249,071 |  |  | $ | 8,395,286 |  |  | $ | 4,693,750 |  |  | $ | — |  |  | $ | 24,744,368 |
Total on- and off-balance sheet program assets at principal balance | $ | 9,445,359 |  |  | $ | 2,722,702 |  |  | $ | 2,817,427 |  |  | $ | 8,133,303 |  |  | $ | — |  |  | $ | — |  |  | $ | 23,118,791 |
(1)Includes 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 "Losses on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. (5)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 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, 2020
| Farm & Ranch |  | USDA Guarantees |  | Rural Utilities |  | Institutional Credit |  | Corporate |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 53,768 |  |  | $ | 14,691 |  |  | $ | 12,778 |  |  | $ | 48,059 |  |  | $ | 5,025 |  |  | $ | — |  |  | $ | 134,321 |
Less: reconciling adjustments(1)(2)(3) | (4,072) |  |  | 488 |  |  | 4,597 |  |  | 7,026 |  |  | 74 |  |  | (8,113) |  |  | — |
Net effective spread | 49,696 |  |  | 15,179 |  |  | 17,375 |  |  | 55,085 |  |  | 5,099 |  |  | (8,113) |  |  | — |
Guarantee and commitment fees(2) | 12,822 |  |  | 658 |  |  | 995 |  |  | 23 |  |  | — |  |  | (5,003) |  |  | 9,495 |
Other income/(expense)(3) | 2,197 |  |  | 864 |  |  | 12 |  |  | — |  |  | (413) |  |  | (3,048) |  |  | (388) |
Non-interest income/(loss) | 15,019 |  |  | 1,522 |  |  | 1,007 |  |  | 23 |  |  | (413) |  |  | (8,051) |  |  | 9,107 |
Release of/(provision for) losses | 412 |  |  | — |  |  | (4,704) |  |  | (222) |  |  | (28) |  |  | — |  |  | (4,542) |
Provision for reserve for losses | (262) |  |  | — |  |  | (278) |  |  | — |  |  | — |  |  | — |  |  | (540) |
Other non-interest expense | (16,632) |  |  | (5,045) |  |  | (4,428) |  |  | (6,606) |  |  | (12,171) |  |  | — |  |  | (44,882) |
Non-interest expense(4) | (16,894) |  |  | (5,045) |  |  | (4,706) |  |  | (6,606) |  |  | (12,171) |  |  | — |  |  | (45,422) |
Core earnings before income taxes | 48,233 |  |  | 11,656 |  |  | 8,972 |  |  | 48,280 |  |  | (7,513) |  |  | (16,164) |  | (5) | 93,464 |
Income tax (expense)/benefit | (10,129) |  |  | (2,448) |  |  | (1,884) |  |  | (10,139) |  |  | 1,689 |  |  | 3,395 |  |  | (19,516) |
Core earnings before preferred stock dividends | 38,104 |  |  | 9,208 |  |  | 7,088 |  |  | 38,141 |  |  | (5,824) |  |  | (12,769) |  | (5) | 73,948 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | (12,536) |  |  | — |  |  | (12,536) |
Loss on retirement of preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,667) |  |  | (1,667) |
Segment core earnings/(losses) | $ | 38,104 |  |  | $ | 9,208 |  |  | $ | 7,088 |  |  | $ | 38,141 |  |  | $ | (18,360) |  |  | $ | (14,436) |  | (5) | $ | 59,745 |
Total assets at carrying value | $ | 5,961,307 |  |  | $ | 2,487,687 |  |  | $ | 2,256,011 |  |  | $ | 8,716,923 |  |  | $ | 4,576,909 |  |  | $ | — |  |  | $ | 23,998,837 |
Total on- and off-balance sheet program assets at principal balance | $ | 8,249,349 |  |  | $ | 2,735,128 |  |  | $ | 2,685,309 |  |  | $ | 8,319,502 |  |  | $ | — |  |  | $ | — |  |  | $ | 21,989,288 |
(1)Includes 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 "Losses on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4)Includes directly attributable costs and an allocation of indirectly attributable costs based on employee headcount. (5)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 reconciled to net income; and segment core earnings reconciled to net income attributable to common stockholders.

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599 + Details
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