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v3.22.1

Summary of Significant Accounting Policies (Tables) | 3 Months Ended
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Mar. 31, 2022
Accounting Policies [Abstract] |
Schedule of Consolidation of Variable Interest Entities | Table 1.1
| Consolidation of Variable Interest Entities
| As of March 31, 2022
| Agricultural Finance |  | Treasury |  | Total
| (in thousands)
On-Balance Sheet: |  |  |  |  |
Consolidated VIEs: |  |  |  |  |
Loans held for investment in consolidated trusts, at amortized cost | $ | 888,200 |  |  | $ | — |  |  | $ | 888,200 |
Debt securities of consolidated trusts held by third parties (1) | 895,145 |  |  | — |  |  | 895,145 |
Unconsolidated VIEs: |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |
Carrying value | 37,018 |  |  | — |  |  | 37,018 |
Maximum exposure to loss (2) | 37,956 |  |  | — |  |  | 37,956 |
Investment securities: |  |  |  |  |
Carrying value (3) | — |  |  | 2,430,613 |  |  | 2,430,613 |
Maximum exposure to loss (2) (3) | — |  |  | 2,465,989 |  |  | 2,465,989 |
Off-Balance Sheet: |  |  |  |  |
Unconsolidated VIEs: |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |
Maximum exposure to loss (2) (4) | 544,484 |  |  | — |  |  | 544,484 |
(1)Includes borrower remittances of $6.9 million. The borrower remittances had not been passed through to third-party investors as of March 31, 2022. (2)Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (3)Includes auction-rate certificates, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments. (4)The amount under the Agricultural Finance line of business relates to unconsolidated trusts where it was determined that Farmer Mac was either not the primary beneficiary due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause.
| Consolidation of Variable Interest Entities
| As of December 31, 2021
| Agricultural Finance |  | Treasury |  | Total
| (in thousands)
On-Balance Sheet: |  |  |  |  |
Consolidated VIEs: |  |  |  |  |
Loans held for investment in consolidated trusts, at amortized cost | $ | 948,623 |  |  | $ | — |  |  | $ | 948,623 |
Debt securities of consolidated trusts held by third parties (1) | 981,379 |  |  | — |  |  | 981,379 |
Unconsolidated VIEs: |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |
Carrying value | 42,298 |  |  | — |  |  | 42,298 |
Maximum exposure to loss (2) | 42,155 |  |  | — |  |  | 42,155 |
Investment securities: |  |  |  |  |
Carrying value (3) | — |  |  | 2,258,219 |  |  | 2,258,219 |
Maximum exposure to loss (2) (3) | — |  |  | 2,246,272 |  |  | 2,246,272 |
Off-Balance Sheet: |  |  |  |  |
Unconsolidated VIEs: |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |
Maximum exposure to loss (2) (4) | 578,358 |  |  | — |  |  | 578,358 |
(1)Includes borrower remittances of $32.8 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2021. (2)Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (3)Includes auction-rate certificates, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments. (4)The amount under the Agricultural Finance line of business relates to unconsolidated trusts where it was determined that Farmer Mac was either not the primary beneficiary due to shared power with an unrelated party or a subordinate class majority holder has the unilateral right to remove Farmer Mac as Master Servicer without cause.
Basic and Diluted EPS | The following schedule reconciles basic and diluted EPS for the three months ended March 31, 2022 and 2021: Table 1.2
| For the Three Months Ended
| March 31, 2022 |  | March 31, 2021 |  |
| Net Income |  | Weighted-Average Shares |  | $ per Share |  | Net Income |  | Weighted-Average Shares |  | $ per Share |  |  |  |  |  |
| (in thousands, except per share amounts)
Basic EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to common stockholders | $ | 41,046 |  |  | 10,767 |  |  | $ | 3.81 |  |  | $ | 27,958 |  |  | 10,738 |  |  | $ | 2.60 |  |  |  |  |  |  |
Effect of dilutive securities(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
SARs and restricted stock | — |  |  | 120 |  |  | (0.04) |  |  | — |  |  | 81 |  |  | (0.02) |  |  |  |  |  |  |
Diluted EPS | $ | 41,046 |  |  | 10,887 |  |  | $ | 3.77 |  |  | $ | 27,958 |  |  | 10,819 |  |  | $ | 2.58 |  |  |  |  |  |  |
(1)For the three months ended March 31, 2022 and 2021, SARs and restricted stock of 50,005 and 99,684, respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because they were anti-dilutive. For the three months ended March 31, 2022 and 2021 contingent shares of unvested restricted stock of 18,535 and 18,183 respectively, were outstanding but not included in the computation of diluted earnings per share of common stock because performance conditions had not yet been met.
Schedule of Accumulated Other Comprehensive Income, Net of Tax | The following table presents the changes in accumulated other comprehensive income ("AOCI"), net of tax, by component for the three months ended March 31, 2022 and 2021. Table 1.3
| As of March 31, 2022 |  | As of March 31, 2021
| Available-for-Sale Securities |  | Held-to-Maturity Securities |  | Cash Flow Hedges |  | Total |  | Available-for-Sale Securities |  | Held-to-Maturity Securities |  | Cash Flow Hedges |  | Total
| (in thousands)
For the Three Months Ended: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance | $ | (6,932) |  |  | $ | 16,153 |  |  | $ | (5,368) |  |  | $ | 3,853 |  |  | $ | (13,937) |  |  | $ | 22,829 |  |  | $ | (22,815) |  |  | $ | (13,923) |
Other comprehensive (loss)/income before reclassifications | (68,148) |  |  | — |  |  | 23,062 |  |  | (45,086) |  |  | 53,211 |  |  | — |  |  | 13,562 |  |  | 66,773 |
Amounts reclassified from AOCI | (3) |  |  | (19) |  |  | 1,590 |  |  | 1,568 |  |  | (783) |  |  | (1,704) |  |  | 1,381 |  |  | (1,106) |
Net comprehensive (loss)/income | (68,151) |  |  | (19) |  |  | 24,652 |  |  | (43,518) |  |  | 52,428 |  |  | (1,704) |  |  | 14,943 |  |  | 65,667 |
Ending Balance | $ | (75,083) |  |  | $ | 16,134 |  |  | $ | 19,284 |  |  | $ | (39,665) |  |  | $ | 38,491 |  |  | $ | 21,125 |  |  | $ | (7,872) |  |  | $ | 51,744 |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | The following table presents other comprehensive income activity, the impact on net income of amounts reclassified from each component of AOCI, and the related tax impact for the three months ended March 31, 2022 and 2021: Table 1.4
| For the Three Months Ended
| March 31, 2022 |  | March 31, 2021 |  |
| Before Tax |  | Provision (Benefit) |  | After Tax |  | Before Tax |  | Provision (Benefit) |  | After Tax |  |  |  |  |  |
| (in thousands)
Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale-securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding (losses)/gains on available-for-sale securities | $ | (86,263) |  |  | $ | (18,115) |  |  | $ | (68,148) |  |  | $ | 67,356 |  |  | $ | 14,145 |  |  | $ | 53,211 |  |  |  |  |  |  |
Less reclassification adjustments included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income(1) | — |  |  | — |  |  | — |  |  | (984) |  |  | (207) |  |  | (777) |  |  |  |  |  |  |
Other income(2) | (4) |  |  | (1) |  |  | (3) |  |  | (8) |  |  | (2) |  |  | (6) |  |  |  |  |  |  |
Total | $ | (86,267) |  |  | $ | (18,116) |  |  | $ | (68,151) |  |  | $ | 66,364 |  |  | $ | 13,936 |  |  | $ | 52,428 |  |  |  |  |  |  |
Held-to-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less reclassification adjustments included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income(3) | (23) |  |  | (4) |  |  | (19) |  |  | (2,157) |  |  | (453) |  |  | (1,704) |  |  |  |  |  |  |
Total | $ | (23) |  |  | $ | (4) |  |  | $ | (19) |  |  | $ | (2,157) |  |  | $ | (453) |  |  | $ | (1,704) |  |  |  |  |  |  |
Cash flow hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gains on cash flow hedges | $ | 29,193 |  |  | $ | 6,131 |  |  | $ | 23,062 |  |  | $ | 17,170 |  |  | $ | 3,608 |  |  | $ | 13,562 |  |  |  |  |  |  |
Less reclassification adjustments included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income(4) | 2,011 |  |  | 421 |  |  | 1,590 |  |  | 1,746 |  |  | 365 |  |  | 1,381 |  |  |  |  |  |  |
Total | $ | 31,204 |  |  | $ | 6,552 |  |  | $ | 24,652 |  |  | $ | 18,916 |  |  | $ | 3,973 |  |  | $ | 14,943 |  |  |  |  |  |  |
Other comprehensive (loss)/income | $ | (55,086) |  |  | $ | (11,568) |  |  | $ | (43,518) |  |  | $ | 83,123 |  |  | $ | 17,456 |  |  | $ | 65,667 |  |  |  |  |  |  |
(1)Relates to the amortization of unrealized gains on hedged items prior to the application of fair value hedge accounting. (2)Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. (3)Relates to the amortization of unrealized gains or losses prior to the reclassification of these securities from available-for-sale to held-to-maturity. The amortization of unrealized gains or losses reported in AOCI for held-to-maturity securities will be offset by the amortization of the premium or discount created from the transfer into held-to-maturity securities, which occurred at fair value. These unrealized gains or losses will be recorded over the remaining life of the security with no impact on future net income. (4)Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance
Standard | Description | Date of Adoption | Effect on Consolidated Financial Statements
ASU 2020-04 and 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | The amendments in this Update provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. They provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. | January 1, 2020 | Farmer Mac adopted optional expedients specific to discounting transition on a retrospective basis, and as a result of this election, the discounting transition did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.
Recently Issued Accounting Guidance

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