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Business Segment Reporting | 3 Months Ended
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Mar. 31, 2022
Segment Reporting [Abstract] |
BUSINESS SEGMENT REPORTING | BUSINESS SEGMENT REPORTING The following table presents the alignment of the Farmer Mac's seven segments:
Agricultural Finance | Rural Infrastructure Finance | Treasury |
Farm & Ranch | Corporate AgFinance | Rural Utilities | Renewable Energy | Funding | Investments | Corporate
The financial information presented below reflects the accounts of Farmer Mac and its subsidiaries on a consolidated basis. Accordingly, the core earnings for Farmer Mac's segments would differ from any stand-alone financial statements of Farmer Mac's subsidiaries. These differences would be due to various factors, including the exclusion of unrealized gains and losses related to fair value changes of trading assets and financial derivatives, as well as the allocation of certain expenses such as operating expenses, dividends and interest expense related to the issuance of capital and the issuance of indebtedness managed at the corporate level. The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the three months ended March 31, 2022 and 2021. The amounts for the three months ended March 31, 2021 have been revised to conform to the current year's segment alignment. Table 10.1
Core Earnings by Business Segment
For the Three Months Ended March 31, 2022
| Agricultural Finance |  | Rural Infrastructure |  | Treasury |  | Corporate |  |  |  |
| Farm & Ranch |  | Corporate AgFinance |  | Rural Utilities |  | Renewable Energy |  | Funding |  | Investments |  |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 31,354 |  |  | $ | 7,209 |  |  | $ | 3,193 |  |  | $ | 375 |  |  | $ | 19,740 |  |  | $ | 4 |  |  | $ | — |  |  | $ | — |  |  | $ | 61,875 |
Less: reconciling adjustments(1)(2)(3) | (1,000) |  |  | — |  |  | (34) |  |  | — |  |  | (3,002) |  |  | — |  |  | — |  |  | 4,036 |  |  | — |
Net effective spread | 30,354 |  |  | 7,209 |  |  | 3,159 |  |  | 375 |  |  | 16,738 |  |  | 4 |  |  | — |  |  | 4,036 |  |  | — |
Guarantee and commitment fees | 4,216 |  |  | 19 |  |  | 286 |  |  | 36 |  |  | — |  |  | — |  |  | — |  |  | (862) |  |  | 3,695 |
Other income/(expense)(3) | 400 |  |  | 114 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16,172 |  |  | 16,686 |
Total revenues | 34,970 |  |  | 7,342 |  |  | 3,445 |  |  | 411 |  |  | 16,738 |  |  | 4 |  |  | — |  |  | 19,346 |  |  | 82,256 |
(Provision for)/release of losses | (510) |  |  | (515) |  |  | 1,169 |  |  | (202) |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  | (56) |
Release of reserve for losses | 75 |  |  | — |  |  | 35 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 110 |
Operating expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (21,388) |  |  | — |  |  | (21,388) |
Total non-interest expense | 75 |  |  | — |  |  | 35 |  |  | — |  |  | — |  |  | — |  |  | (21,388) |  |  | — |  |  | (21,278) |
Core earnings before income taxes | 34,535 |  |  | 6,827 |  |  | 4,649 |  |  | 209 |  |  | 16,738 |  |  | 6 |  |  | (21,388) |  |  | 19,346 |  | (4) | 60,922 |
Income tax (expense)/benefit | (7,252) |  |  | (1,434) |  |  | (976) |  |  | (44) |  |  | (3,515) |  |  | (1) |  |  | 4,198 |  |  | (4,061) |  |  | (13,085) |
Core earnings before preferred stock dividends | 27,283 |  |  | 5,393 |  |  | 3,673 |  |  | 165 |  |  | 13,223 |  |  | 5 |  |  | (17,190) |  |  | 15,285 |  | (4) | 47,837 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,791) |  |  | — |  |  | (6,791) |
Segment core earnings/(losses) | $ | 27,283 |  |  | $ | 5,393 |  |  | $ | 3,673 |  |  | $ | 165 |  |  | $ | 13,223 |  |  | $ | 5 |  |  | $ | (23,981) |  |  | $ | 15,285 |  | (4) | $ | 41,046 |
Total Assets | $ | 13,610,138 |  |  | $ | 1,491,127 |  |  | $ | 5,480,668 |  |  | $ | 92,132 |  |  | $ | — |  |  | $ | 4,995,154 |  |  | $ | 120,195 |  |  | $ | — |  |  | 25,789,414 |
Total on- and off-balance sheet program assets at principal balance | $ | 16,575,595 |  |  | $ | 1,540,760 |  |  | $ | 6,006,446 |  |  | $ | 120,609 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | 24,243,410 |
(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4)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 March 31, 2021
| Agricultural Finance |  | Rural Infrastructure |  | Treasury |  | Corporate |  |  |  |
| Farm & Ranch |  | Corporate AgFinance |  | Rural Utilities |  | Renewable Energy |  | Funding |  | Investments |  |  | Reconciling Adjustments |  | Consolidated Net Income
| (in thousands)
Net interest income | $ | 27,646 |  |  | $ | 6,921 |  |  | $ | 1,754 |  |  | $ | 248 |  |  | $ | 16,568 |  |  | $ | 114 |  |  | $ | — |  |  | $ | — |  |  | $ | 53,251 |
Less: reconciling adjustments(1)(2)(3) | (1,184) |  |  | — |  |  | (34) |  |  | — |  |  | 1,826 |  |  | — |  |  | — |  |  | (608) |  |  | — |
Net effective spread | 26,462 |  |  | 6,921 |  |  | 1,720 |  |  | 248 |  |  | 18,394 |  |  | 114 |  |  | — |  |  | (608) |  |  | — |
Guarantee and commitment fees | 3,908 |  |  | 8 |  |  | 319 |  |  | 5 |  |  | — |  |  | — |  |  | — |  |  | (1,210) |  |  | 3,030 |
Other income/(expense)(3) | 572 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | (122) |  |  | 4,412 |  |  | 4,863 |
Total revenues | 30,942 |  |  | 6,929 |  |  | 2,040 |  |  | 253 |  |  | 18,394 |  |  | 114 |  |  | (122) |  |  | 2,594 |  |  | 61,144 |
(Provision for)/release of losses | — |  |  | (61) |  |  | (633) |  |  | (195) |  |  | — |  |  | (24) |  |  | — |  |  | — |  |  | (913) |
Provision for reserve for losses | 731 |  |  | — |  |  | 213 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 944 |
Operating expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (18,881) |  |  | — |  |  | (18,881) |
Total non-interest expense | 731 |  |  | — |  |  | 213 |  |  | — |  |  | — |  |  | — |  |  | (18,881) |  |  | — |  |  | (17,937) |
Core earnings before income taxes | 31,673 |  |  | 6,868 |  |  | 1,620 |  |  | 58 |  |  | 18,394 |  |  | 90 |  |  | (19,003) |  |  | 2,594 |  | (4) | 42,294 |
Income tax (expense)/benefit | (6,650) |  |  | (1,441) |  |  | (341) |  |  | (12) |  |  | (3,863) |  |  | (19) |  |  | 3,806 |  |  | (547) |  |  | (9,067) |
Core earnings before preferred stock dividends | 25,023 |  |  | 5,427 |  |  | 1,279 |  |  | 46 |  |  | 14,531 |  |  | 71 |  |  | (15,197) |  |  | 2,047 |  | (4) | 33,227 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,269) |  |  | — |  |  | (5,269) |
Loss on retirement of preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Segment core earnings/(losses) | $ | 25,023 |  |  | $ | 5,427 |  |  | $ | 1,279 |  |  | $ | 46 |  |  | $ | 14,531 |  |  | $ | 71 |  |  | $ | (20,466) |  |  | $ | 2,047 |  | (4) | $ | 27,958 |
Total Assets | $ | 12,289,354 |  |  | $ | 1,644,837 |  |  | $ | 4,836,306 |  |  | $ | 83,352 |  |  | $ | — |  |  | $ | 5,128,901 |  |  | $ | 31,161 |  |  | $ | — |  |  | $ | 24,013,911 |
Total on- and off-balance sheet program assets at principal balance | $ | 14,738,052 |  |  | $ | 1,647,796 |  |  | $ | 5,382,835 |  |  | $ | 93,848 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 21,862,531 |
(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 "Gains on financial derivatives" on the consolidated financial statements, to determine the effective funding cost for each operating segment. (4)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 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -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 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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