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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended
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Mar. 31, 2024
Accounting Policies [Abstract] |
Schedule of Consolidation of Variable Interest Entities | Table 1.1
| Consolidation of Variable Interest Entities
| As of March 31, 2024
| Agricultural Finance |  | Treasury |  | Total
| (in thousands)
On-Balance Sheet: |  |  |  |  |
Consolidated VIEs: |  |  |  |  |
Loans held for investment in consolidated trusts, at amortized cost | $ | 1,409,397 |  |  | $ | — |  |  | $ | 1,409,397 |
Debt securities of consolidated trusts held by third parties (1)(2) | 1,325,289 |  |  | — |  |  | 1,325,289 |
Unconsolidated VIEs: |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |
Carrying value | 51,906 |  |  | — |  |  | 51,906 |
Maximum exposure to loss (3) | 51,616 |  |  | — |  |  | 51,616 |
Investment securities: |  |  |  |  |
Carrying value (4) | — |  |  | 3,735,413 |  |  | 3,735,413 |
Maximum exposure to loss (3)(4) | — |  |  | 3,936,368 |  |  | 3,936,368 |
Off-Balance Sheet: |  |  |  |  |
Unconsolidated VIEs: |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |
Maximum exposure to loss (3)(5) | 443,843 |  |  | — |  |  | 443,843 |
(1)Includes borrower remittances of $1.1 million. The borrower remittances had not been passed through to third-party investors as of March 31, 2024. (2)Includes $85.1 million in unamortized discount related to structured securitization transactions. (3)Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (4)Includes auction-rate certificates, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments. (5)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, 2023
| Agricultural Finance |  | Treasury |  | Total
| (in thousands)
On-Balance Sheet: |  |  |  |  |
Consolidated VIEs: |  |  |  |  |
Loans held for investment in consolidated trusts, at amortized cost | $ | 1,432,261 |  |  | $ | — |  |  | $ | 1,432,261 |
Debt securities of consolidated trusts held by third parties (1)(2) | 1,351,069 |  |  | — |  |  | 1,351,069 |
Unconsolidated VIEs: |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |
Carrying value | 46,343 |  |  | — |  |  | 46,343 |
Maximum exposure to loss (3) | 45,952 |  |  | — |  |  | 45,952 |
Investment securities: |  |  |  |  |
Carrying value (4) | — |  |  | 3,676,555 |  |  | 3,676,555 |
Maximum exposure to loss (3)(4) | — |  |  | 3,862,006 |  |  | 3,862,006 |
Off-Balance Sheet: |  |  |  |  |
Unconsolidated VIEs: |  |  |  |  |
Farmer Mac Guaranteed Securities: |  |  |  |  |
Maximum exposure to loss (3)(5) | 452,602 |  |  | — |  |  | 452,602 |
(1)Includes borrower remittances of $6.0 million. The borrower remittances had not been passed through to third-party investors as of December 31, 2023. (2)Includes $87.1 million in unamortized discount related to a structured securitization transaction. (3)Farmer Mac uses unpaid principal balance and outstanding face amount of investment securities to represent maximum exposure to loss. (4)Includes auction-rate certificates, government-sponsored enterprise ("GSE")-guaranteed mortgage-backed securities, and other mission related investments. (5)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.
Schedule of Basic and Diluted EPS | The following schedule reconciles basic and diluted EPS for the three months ended March 31, 2024 and 2023: Table 1.2
| For the Three Months Ended
| March 31, 2024 |  | March 31, 2023 |  |
| 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 | $ | 46,955 |  |  | 10,847 |  |  | $ | 4.33 |  |  | $ | 40,244 |  |  | 10,802 |  |  | $ | 3.73 |  |  |  |  |  |  |
Effect of dilutive securities(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
SARs and restricted stock units | — |  |  | 122 |  |  | (0.05) |  |  | — |  |  | 116 |  |  | (0.04) |  |  |  |  |  |  |
Diluted EPS | $ | 46,955 |  |  | 10,969 |  |  | $ | 4.28 |  |  | $ | 40,244 |  |  | 10,918 |  |  | $ | 3.69 |  |  |  |  |  |  |
(1)For the three months ended March 31, 2024 and 2023, SARs and restricted stock units of 49,371 and 62,709 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, 2024 and 2023, contingent shares of unvested restricted stock units of 29,918 and 32,282 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, 2024 and 2023. Table 1.3
| As of March 31, 2024 |  | As of March 31, 2023
| 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 | $ | (68,447) |  |  | $ | (8,724) |  |  | $ | 37,026 |  |  | $ | (40,145) |  |  | $ | (115,561) |  |  | $ | 16,357 |  |  | $ | 48,361 |  |  | $ | (50,843) |
Other comprehensive income/(loss) before reclassifications | 31,565 |  |  | — |  |  | 9,256 |  |  | 40,821 |  |  | 525 |  |  | — |  |  | (5,452) |  |  | (4,927) |
Amounts reclassified from AOCI | (4) |  |  | (500) |  |  | (4,290) |  |  | (4,794) |  |  | (5) |  |  | (618) |  |  | (3,469) |  |  | (4,092) |
Net comprehensive income/(loss) | 31,561 |  |  | (500) |  |  | 4,966 |  |  | 36,027 |  |  | 520 |  |  | (618) |  |  | (8,921) |  |  | (9,019) |
Ending Balance | $ | (36,886) |  |  | $ | (9,224) |  |  | $ | 41,992 |  |  | $ | (4,118) |  |  | $ | (115,041) |  |  | $ | 15,739 |  |  | $ | 39,440 |  |  | $ | (59,862) |
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, 2024 and 2023: Table 1.4
| For the Three Months Ended
| March 31, 2024 |  | March 31, 2023 |  |
| Before Tax |  | Provision (Benefit) |  | After Tax |  | Before Tax |  | Provision (Benefit) |  | After Tax |  |  |  |  |  |
| (in thousands)
Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale-securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding gains on available-for-sale securities | $ | 39,957 |  |  | $ | 8,392 |  |  | $ | 31,565 |  |  | $ | 664 |  |  | $ | 139 |  |  | $ | 525 |  |  |  |  |  |  |
Less reclassification adjustments included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other income(1) | (5) |  |  | (1) |  |  | (4) |  |  | (6) |  |  | (1) |  |  | (5) |  |  |  |  |  |  |
Total | $ | 39,952 |  |  | $ | 8,391 |  |  | $ | 31,561 |  |  | $ | 658 |  |  | $ | 138 |  |  | $ | 520 |  |  |  |  |  |  |
Held-to-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Less reclassification adjustments included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income(2) | $ | (634) |  |  | $ | (134) |  |  | $ | (500) |  |  | $ | (782) |  |  | $ | (164) |  |  | $ | (618) |  |  |  |  |  |  |
Total | $ | (634) |  |  | $ | (134) |  |  | $ | (500) |  |  | $ | (782) |  |  | $ | (164) |  |  | $ | (618) |  |  |  |  |  |  |
Cash flow hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gains/(losses) on cash flow hedges | $ | 11,717 |  |  | $ | 2,461 |  |  | $ | 9,256 |  |  | $ | (6,901) |  |  | $ | (1,449) |  |  | $ | (5,452) |  |  |  |  |  |  |
Less reclassification adjustments included in: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income(3) | (5,431) |  |  | (1,141) |  |  | (4,290) |  |  | (4,391) |  |  | (922) |  |  | (3,469) |  |  |  |  |  |  |
Total | $ | 6,286 |  |  | $ | 1,320 |  |  | $ | 4,966 |  |  | $ | (11,292) |  |  | $ | (2,371) |  |  | $ | (8,921) |  |  |  |  |  |  |
Other comprehensive income/(loss) | $ | 45,604 |  |  | $ | 9,577 |  |  | $ | 36,027 |  |  | $ | (11,416) |  |  | $ | (2,397) |  |  | $ | (9,019) |  |  |  |  |  |  |
(1)Represents amortization of deferred gains related to certain available-for-sale USDA Securities and Farmer Mac Guaranteed USDA Securities. (2)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. (3)Relates to the recognition of unrealized gains and losses on cash flow hedges recorded in AOCI.
Schedule of Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance
Standard | Description | Date of Adoption | Effect on Consolidated Financial Statements
ASU 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method | The amendments in this Update permit an entity to elect to account for their tax equity investments using the proportional amortization method if certain conditions are met, regardless of the tax credit program from which the income tax credits are received. | January 1, 2024 | The adoption of this Update did not have a material effect on Farmer Mac's financial position, results of operations, or cash flows.
Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements
Standard | Description | Effect on Consolidated Financial Statements
ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures | The amendments in this Update require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. This Update also requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The amendments should be applied retrospectively. Early adoption is permitted. | Farmer Mac is still assessing the effect on our annual consolidated financial statement disclosures, however, adoption will not have a material impact on Farmer Mac's financial position, results of operations, or cash flows.
ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures | The Update provides guidance on improvements to annual income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. Additionally, public entities must provide a separate disclosure for any reconciling item that meets a quantitative threshold. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. The amendments should be applied on a prospective basis. Early adoption is permitted. | Farmer Mac is still assessing the impact of the new accounting standard but does not expect that adoption of the new guidance will have a material impact on Farmer Mac's financial position, results of operations, or cash flows.

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