Investment Securities (Tables)

12 Months Ended

May 31, 2018

Schedule of investments in equity securities

The following tables present the amortized cost and fair value of our investment securities and the corresponding gross unrealized gains and losses, by classification category and major security type, as of May 31, 2018 and 2017.



	May 31, 2018
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale:
Farmer Mac—series A non-cumulative preferred stock	$	30,000	$	480	$	—		$	30,480
Farmer Mac—series B non-cumulative preferred stock	25,000		1,000		—			26,000
Farmer Mac—series C non-cumulative preferred stock	25,000		872		—			25,872
Farmer Mac—class A common stock	538		6,442		—			6,980
Total investment securities, available for sale	80,538		8,794		—			89,332

Held to maturity:
Certificates of deposit	4,148		—		—			4,148
Commercial paper	9,134		—		—			9,134
U.S. agency debt securities	2,000		16		—			2,016
Corporate debt securities	455,721		714		(4,595		)	451,840
Commercial MBS:
Agency	7,024		63		—			7,087
Non-agency	3,453		3		(3		)	3,453
Total commercial MBS	10,477		66		(3		)	10,540
U.S. state and municipality debt securities	2,147		24		—			2,171
Foreign government debt securities	1,241		9		—			1,250
Other ABS⁽¹⁾	34,651		11		(215		)	34,447
Total investment securities, held to maturity	519,519		840		(4,813		)	515,546

Total investment securities	$	600,057	$	9,634	$	(4,813	)	$	604,878

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⁽¹⁾Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans.



	May 31, 2017
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale:
Farmer Mac—series A non-cumulative preferred stock	$	30,000	$	1,585	$	—	$	31,585
Farmer Mac—series B non-cumulative preferred stock	25,000		1,940		—		26,940
Farmer Mac—series C non-cumulative preferred stock	25,000		4,150		—		29,150
Farmer Mac—class A common stock	538		4,341		—		4,879
Total investment securities, available for sale	$	80,538	$	12,016	$	—	$	92,554

Schedule of Unrealized Loss on Investments

The following table presents the fair value and gross unrealized losses for investments in a gross loss position, aggregated by security type, and the length of time the securities have been in a continuous unrealized loss position as of May 31, 2018. The securities are segregated between investments that have been in a continuous unrealized loss position for less than 12 months and 12 months or more based on the point in time that the fair value declined below the amortized cost basis. We did not have any investment securities in a gross unrealized loss position as of May 31, 2017.



	May 31, 2018
	Unrealized Loss Position Less than 12 Months					Unrealized Loss Position 12 Months or Longer				Total
(Dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Held to maturity:
Corporate debt securities	$	280,139	$	(4,595	)	$	—	$	—	$	280,139	$	(4,595	)
Commercial MBS, non-agency	1,451		(3		)	—		—		1,451		(3		)
Other ABS⁽¹⁾	27,012		(215		)	—		—		27,012		(215		)
Total investment securities	$	308,602	$	(4,813	)	$	—	$	—	$	308,602	$	(4,813	)

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⁽¹⁾Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans.

Investments Classified by Contractual Maturity Date

The following table presents, by major security type, the remaining contractual maturity based on amortized cost and fair value as of May 31, 2018 of our HTM investment securities. Because borrowers may have the right to call or prepay certain obligations, the expected maturities of our investments may differ from the scheduled contractual maturities presented below.



	May 31, 2018
(Dollars in thousands)	Due in 1 Year or Less			Due >1 Year through 5 Years			Due >5 Years through 10 Years			Due >10 Years			Total
Amortized cost:
Certificates of deposit	$	4,148		$	—		$	—		$	—		$	4,148
Commercial paper	9,134			—			—			—			9,134
U.S. agency debt securities	—			2,000			—			—			2,000
Corporate debt securities	9,111			377,384			69,226			—			455,721
Commercial MBS:
Agency	—			—			7,024			—			7,024
Non-agency	—			—			—			3,453			3,453
Total commercial MBS	—			—			7,024			3,453			10,477
U.S. state and municipality debt securities	—			—			2,147			—			2,147
Foreign government debt securities	—			1,241			—			—			1,241
Other ABS⁽¹⁾	—			33,357			1,294			—			34,651
Total	$	22,393		$	413,982		$	79,691		$	3,453		$	519,519

Fair value:
Certificates of deposit	$	4,148		$	—		$	—		$	—		$	4,148
Commercial paper	9,134			—			—			—			9,134
U.S. agency debt securities	—			2,016			—			—			2,016
Corporate debt securities	9,056			373,284			69,500			—			451,840
Commercial MBS:
Agency	—			—			7,087			—			7,087
Non-agency	—			—			—			3,453			3,453
Total commercial MBS	—			—			7,087			3,453			10,540
U.S. state and municipality debt securities	—			—			2,171			—			2,171
Foreign government debt securities	—			1,250			—			—			1,250
Other ABS⁽¹⁾	—			33,157			1,290			—			34,447
Total	$	22,338		$	409,707		$	80,048		$	3,453		$	515,546

Weighted-average coupon⁽²⁾	1.81		%	2.84		%	3.60		%	2.74		%	2.91		%

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⁽¹⁾Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans.

⁽²⁾Calculated based on the weighted-average coupon rate, which excludes the impact of amortization of premium and accretion of discount.