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BUSINESS SEGMENT REPORTING (Tables) | 9 Months Ended
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Sep. 30, 2024
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information | The following tables present core earnings for Farmer Mac's segments and a reconciliation to consolidated net income for the three and nine months ended September 30, 2024 and 2023. Table 10.1
Core Earnings by Business Segment
For the Three Months Ended September 30, 2024
| 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 | $ | 36,816 |  |  | $ | 6,397 |  |  | $ | 7,608 |  |  | $ | 3,810 |  |  | $ | 31,217 |  |  | $ | 943 |  |  | $ | — |  |  | $ | — |  |  | $ | 86,791 |
Less: reconciling adjustments(1)(2)(3) | (1,061) |  |  | — |  |  | (29) |  |  | — |  |  | (305) |  |  | — |  |  | — |  |  | 1,395 |  |  | — |
Net effective spread | 35,755 |  |  | 6,397 |  |  | 7,579 |  |  | 3,810 |  |  | 30,912 |  |  | 943 |  |  | — |  |  | 1,395 |  |  | — |
Guarantee and commitment fees | 4,304 |  |  | 168 |  |  | 338 |  |  | 187 |  |  | — |  |  | — |  |  | — |  |  | (982) |  |  | 4,015 |
Gain on sale of investment securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss on sale of mortgage loan | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other income/(expense)(3) | 1,091 |  |  | 40 |  |  | — |  |  | — |  |  | — |  |  | 10 |  |  | (8) |  |  | (1,649) |  |  | (516) |
Total revenues | 41,150 |  |  | 6,605 |  |  | 7,917 |  |  | 3,997 |  |  | 30,912 |  |  | 953 |  |  | (8) |  |  | (1,236) |  |  | 90,290 |
Provision for of losses | (116) |  |  | (1,779) |  |  | (1,195) |  |  | (337) |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | (3,428) |
Release of reserve for losses | 126 |  |  | — |  |  | 44 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 170 |
Operating expenses | (196) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (24,587) |  |  | — |  |  | (24,783) |
Total non-interest expense | (70) |  |  | — |  |  | 44 |  |  | — |  |  | — |  |  | — |  |  | (24,587) |  |  | — |  |  | (24,613) |
Core earnings before income taxes | 40,964 |  |  | 4,826 |  |  | 6,766 |  |  | 3,660 |  |  | 30,912 |  |  | 952 |  |  | (24,595) |  |  | (1,236) |  | (4) | 62,249 |
Income tax (expense)/benefit | (8,602) |  |  | (1,013) |  |  | (1,421) |  |  | (768) |  |  | (6,492) |  |  | (201) |  |  | 5,816 |  |  | 260 |  |  | (12,421) |
Core earnings before preferred stock dividends | 32,362 |  |  | 3,813 |  |  | 5,345 |  |  | 2,892 |  |  | 24,420 |  |  | 751 |  |  | (18,779) |  |  | (976) |  | (4) | 49,828 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,897) |  |  | — |  |  | (5,897) |
Loss on retirement of preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,619) |  |  | (1,619) |
Segment core earnings/(losses) | $ | 32,362 |  |  | $ | 3,813 |  |  | $ | 5,345 |  |  | $ | 2,892 |  |  | $ | 24,420 |  |  | $ | 751 |  |  | $ | (24,676) |  |  | $ | (2,595) |  | (4) | $ | 42,312 |
Total Assets | $ | 14,562,142 |  |  | $ | 1,662,687 |  |  | $ | 6,952,605 |  |  | $ | 985,435 |  |  | $ | — |  |  | $ | 6,389,160 |  |  | $ | 63,192 |  |  | $ | — |  |  | $ | 30,615,221 |
Total on- and off-balance sheet program assets at principal balance | $ | 18,090,374 |  |  | $ | 1,842,780 |  |  | $ | 7,440,141 |  |  | $ | 1,095,008 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 28,468,303 |
(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)/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 September 30, 2023
| 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 | $ | 33,735 |  |  | $ | 8,250 |  |  | $ | 6,393 |  |  | $ | 1,150 |  |  | $ | 37,642 |  |  | $ | 473 |  |  | $ | — |  |  | $ | — |  |  | $ | 87,643 |
Less: reconciling adjustments(1)(2)(3) | (1,017) |  |  | — |  |  | (31) |  |  | — |  |  | (3,230) |  |  | 59 |  |  | — |  |  | 4,219 |  |  | — |
Net effective spread | 32,718 |  |  | 8,250 |  |  | 6,362 |  |  | 1,150 |  |  | 34,412 |  |  | 532 |  |  | — |  |  | 4,219 |  |  | — |
Guarantee and commitment fees | 4,447 |  |  | 78 |  |  | 279 |  |  | 24 |  |  | — |  |  | — |  |  | — |  |  | 692 |  |  | 5,520 |
Other income/(expense)(3) | 807 |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 6 |  |  | 240 |  |  | 2,884 |  |  | 3,940 |
Total revenues | 37,972 |  |  | 8,328 |  |  | 6,641 |  |  | 1,174 |  |  | 34,415 |  |  | 538 |  |  | 240 |  |  | 7,795 |  |  | 97,103 |
Release of/(provision for) losses | 13 |  |  | 3,694 |  |  | (3,504) |  |  | (66) |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | 136 |
Release of/(provision for) reserve for losses | 58 |  |  | — |  |  | (13) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 45 |
Operating expenses | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (24,034) |  |  | — |  |  | (24,034) |
Total non-interest expense | 58 |  |  | — |  |  | (13) |  |  | — |  |  | — |  |  | — |  |  | (24,034) |  |  | — |  |  | (23,989) |
Core earnings before income taxes | 38,043 |  |  | 12,022 |  |  | 3,124 |  |  | 1,108 |  |  | 34,415 |  |  | 537 |  |  | (23,794) |  |  | 7,795 |  | (4) | 73,250 |
Income tax (expense)/benefit | (7,989) |  |  | (2,525) |  |  | (656) |  |  | (233) |  |  | (7,226) |  |  | (113) |  |  | 5,267 |  |  | (1,638) |  |  | (15,113) |
Core earnings before preferred stock dividends | 30,054 |  |  | 9,497 |  |  | 2,468 |  |  | 875 |  |  | 27,189 |  |  | 424 |  |  | (18,527) |  |  | 6,157 |  | (4) | 58,137 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,792) |  |  | — |  |  | (6,792) |
Segment core earnings/(losses) | $ | 30,054 |  |  | $ | 9,497 |  |  | $ | 2,468 |  |  | $ | 875 |  |  | $ | 27,189 |  |  | $ | 424 |  |  | $ | (25,319) |  |  | $ | 6,157 |  | (4) | $ | 51,345 |
Total Assets | $ | 14,660,371 |  |  | $ | 1,619,664 |  |  | $ | 6,648,693 |  |  | $ | 320,572 |  |  | $ | — |  |  | $ | 4,866,969 |  |  | $ | 195,112 |  |  | $ | — |  |  | $ | 28,311,381 |
Total on- and off-balance sheet program assets at principal balance | $ | 18,461,835 |  |  | $ | 1,741,306 |  |  | $ | 7,118,295 |  |  | $ | 330,575 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 27,652,011 |
(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)/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 Nine Months Ended September 30, 2024
| 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 | $ | 106,227 |  |  | $ | 22,234 |  |  | $ | 22,545 |  |  | $ | 8,858 |  |  | $ | 98,556 |  |  | $ | 2,079 |  |  | $ | — |  |  | $ | — |  |  | $ | 260,499 |
Less: reconciling adjustments(1)(2)(3) | (3,473) |  |  | — |  |  | (88) |  |  | — |  |  | (4,902) |  |  | — |  |  | — |  |  | 8,463 |  |  | — |
Net effective spread | 102,754 |  |  | 22,234 |  |  | 22,457 |  |  | 8,858 |  |  | 93,654 |  |  | 2,079 |  |  | — |  |  | 8,463 |  |  | — |
Guarantee and commitment fees | 13,400 |  |  | 382 |  |  | 988 |  |  | 465 |  |  | — |  |  | — |  |  | — |  |  | (3,506) |  |  | 11,729 |
Gain on sale of investment securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,052 |  |  | — |  |  | — |  |  | 1,052 |
Loss on sale of mortgage loan | — |  |  | (1,147) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,147) |
Other income/(expense)(3) | 2,603 |  |  | 47 |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  | 20 |  |  | (1,004) |  |  | 1,687 |
Total revenues | 118,757 |  |  | 21,516 |  |  | 23,445 |  |  | 9,323 |  |  | 93,654 |  |  | 3,152 |  |  | 20 |  |  | 3,953 |  |  | 273,820 |
(Provision for)/release of losses | (888) |  |  | (6,755) |  |  | 2,324 |  |  | (2,488) |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | (7,806) |
Release of reserve for losses | 154 |  |  | — |  |  | 34 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 188 |
Operating expenses | (196) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (76,293) |  |  | — |  |  | (76,489) |
Total non-interest expense | (42) |  |  | — |  |  | 34 |  |  | — |  |  | — |  |  | — |  |  | (76,293) |  |  | — |  |  | (76,301) |
Core earnings before income taxes | 117,827 |  |  | 14,761 |  |  | 25,803 |  |  | 6,835 |  |  | 93,654 |  |  | 3,153 |  |  | (76,273) |  |  | 3,953 |  | (4) | 189,713 |
Income tax (expense)/benefit | (24,743) |  |  | (3,099) |  |  | (5,419) |  |  | (1,435) |  |  | (19,666) |  |  | (664) |  |  | 16,822 |  |  | (830) |  |  | (39,034) |
Core earnings before preferred stock dividends | 93,084 |  |  | 11,662 |  |  | 20,384 |  |  | 5,400 |  |  | 73,988 |  |  | 2,489 |  |  | (59,451) |  |  | 3,123 |  | (4) | 150,679 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (19,480) |  |  | — |  |  | (19,480) |
Loss on retirement of preferred stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,619) |  |  | (1,619) |
Segment core earnings/(losses) | $ | 93,084 |  |  | $ | 11,662 |  |  | $ | 20,384 |  |  | $ | 5,400 |  |  | $ | 73,988 |  |  | $ | 2,489 |  |  | $ | (78,931) |  |  | $ | 1,504 |  | (4) | $ | 129,580 |
Total Assets | $ | 14,562,142 |  |  | $ | 1,662,687 |  |  | $ | 6,952,605 |  |  | $ | 985,435 |  |  | $ | — |  |  | $ | 6,389,160 |  |  | $ | 63,192 |  |  | $ | — |  |  | $ | 30,615,221 |
Total on- and off-balance sheet program assets at principal balance | $ | 18,090,374 |  |  | $ | 1,842,780 |  |  | $ | 7,440,141 |  |  | $ | 1,095,008 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 28,468,303 |
(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)/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 Nine Months Ended September 30, 2023
| 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 | $ | 102,671 |  |  | $ | 22,842 |  |  | $ | 17,772 |  |  | $ | 3,108 |  |  | $ | 98,588 |  |  | $ | 397 |  |  | $ | — |  |  | $ | — |  |  | $ | 245,378 |
Less: reconciling adjustments(1)(2)(3) | (3,100) |  |  | — |  |  | (95) |  |  | — |  |  | 60 |  |  | 186 |  |  | — |  |  | 2,949 |  |  | — |
Net effective spread | 99,571 |  |  | 22,842 |  |  | 17,677 |  |  | 3,108 |  |  | 98,648 |  |  | 583 |  |  | — |  |  | 2,949 |  |  | — |
Guarantee and commitment fees | 12,960 |  |  | 193 |  |  | 841 |  |  | 69 |  |  | — |  |  | — |  |  | — |  |  | (1,121) |  |  | 12,942 |
Other income/(expense)(3) | 2,216 |  |  | 12 |  |  | — |  |  | — |  |  | 3 |  |  | 17 |  |  | 284 |  |  | 5,484 |  |  | 8,016 |
Total revenues | 114,747 |  |  | 23,047 |  |  | 18,518 |  |  | 3,177 |  |  | 98,651 |  |  | 600 |  |  | 284 |  |  | 7,312 |  |  | 266,336 |
Release of/(provision for) losses | 136 |  |  | (934) |  |  | (652) |  |  | (38) |  |  | — |  |  | 4 |  |  | — |  |  | — |  |  | (1,484) |
(Provision for)/release of reserve for losses | (594) |  |  | — |  |  | 367 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (227) |
Operating expenses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (71,935) |  |  | — |  |  | (71,935) |
Total non-interest expense | (594) |  |  | — |  |  | 367 |  |  | — |  |  | — |  |  | — |  |  | (71,935) |  |  | — |  |  | (72,162) |
Core earnings before income taxes | 114,289 |  |  | 22,113 |  |  | 18,233 |  |  | 3,139 |  |  | 98,651 |  |  | 604 |  |  | (71,651) |  |  | 7,312 |  | (4) | 192,690 |
Income tax (expense)/benefit | (24,001) |  |  | (4,644) |  |  | (3,829) |  |  | (659) |  |  | (20,716) |  |  | (127) |  |  | 15,206 |  |  | (1,536) |  |  | (40,306) |
Core earnings before preferred stock dividends | 90,288 |  |  | 17,469 |  |  | 14,404 |  |  | 2,480 |  |  | 77,935 |  |  | 477 |  |  | (56,445) |  |  | 5,776 |  | (4) | 152,384 |
Preferred stock dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (20,374) |  |  | — |  |  | (20,374) |
Segment core earnings/(losses) | $ | 90,288 |  |  | $ | 17,469 |  |  | $ | 14,404 |  |  | $ | 2,480 |  |  | $ | 77,935 |  |  | $ | 477 |  |  | $ | (76,819) |  |  | $ | 5,776 |  | (4) | $ | 132,010 |
Total Assets | $ | 14,660,371 |  |  | $ | 1,619,664 |  |  | $ | 6,648,693 |  |  | $ | 320,572 |  |  | $ | — |  |  | $ | 4,866,969 |  |  | $ | 195,112 |  |  | $ | — |  |  | $ | 28,311,381 |
Total on- and off-balance sheet program assets at principal balance | $ | 18,461,835 |  |  | $ | 1,741,306 |  |  | $ | 7,118,295 |  |  | $ | 330,575 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 27,652,011 |
(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)/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 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 -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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