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Farmer Mac Guaranteed Securities and USDA Guaranteed Securities
 3 Months Ended
Mar. 31, 2013
Investments, Debt and Equity Securities [Abstract]  
Farmer Mac Guaranteed Securities and USDA Guaranteed Securities
FARMER MAC GUARANTEED SECURITIES AND USDA GUARANTEED SECURITIES

The following tables set forth information about on-balance sheet Farmer Mac Guaranteed Securities and USDA Guaranteed Securities as of March 31, 2013 and December 31, 2012:

 
March 31, 2013
 
Unpaid Principal Balance
 
Unamortized Premium/(Discount)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
 
(in thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Farm & Ranch
$
3,439,200

 
$
151

 
$
3,439,351

 
$
95,508

 
$
(6,339
)
 
$
3,528,520

USDA Guarantees
25,853

 
(451
)
 
25,402

 
1,796

 
—

 
27,198

Rural Utilities
1,545,582

 
—

 
1,545,582

 
15,568

 
(16,788
)
 
1,544,362

Total Farmer Mac Guaranteed Securities
5,010,635

 
(300
)
 
5,010,335

 
112,872

 
(23,127
)
 
5,100,080

USDA Guaranteed Securities
1,514,581

 
5,562

 
1,520,143

 
49,084

 
(67
)
 
1,569,160

Total available-for-sale
6,525,216

 
5,262

 
6,530,478

 
161,956

 
(23,194
)
 
6,669,240

Trading:
 
 
 
 
 

 
 

 
 

 
 

USDA Guaranteed Securities
82,090

 
5,893

 
87,983

 
573

 
(1,285
)
 
87,271

Total Farmer Mac Guaranteed Securities and USDA Guaranteed Securities
$
6,607,306

 
$
11,155

 
$
6,618,461

 
$
162,529

 
$
(24,479
)
 
$
6,756,511


 
December 31, 2012
 
Unpaid Principal Balance
 
Unamortized Premium/(Discount)
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair Value
 
(in thousands)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Farm & Ranch
$
3,339,200

 
$
160

 
$
3,339,360

 
$
92,223

 
$
(5,094
)
 
$
3,426,489

USDA Guarantees
26,238

 
(452
)
 
25,786

 
909

 
(14
)
 
26,681

Rural Utilities
1,298,506

 
—

 
1,298,506

 
18,530

 
(3,948
)
 
1,313,088

Total Farmer Mac Guaranteed Securities
4,663,944

 
(292
)
 
4,663,652

 
111,662

 
(9,056
)
 
4,766,258

USDA Guaranteed Securities
1,461,184

 
5,975

 
1,467,159

 
19,605

 
(169
)
 
1,486,595

Total available-for-sale
6,125,128

 
5,683

 
6,130,811

 
131,267

 
(9,225
)
 
6,252,853

Trading:
 
 
 
 
 

 
 

 
 

 
 

USDA Guaranteed Securities
98,499

 
6,415

 
104,914

 
624

 
(1,350
)
 
104,188

Total Farmer Mac Guaranteed Securities and USDA Guaranteed Securities
$
6,223,627

 
$
12,098

 
$
6,235,725

 
$
131,891

 
$
(10,575
)
 
$
6,357,041



The unrealized losses presented above are principally due to higher interest rates from the date of acquisition to March 31, 2013 and December 31, 2012, as applicable.  Additionally, the $325.0 million Rural Utilities AgVantage Security purchased in first quarter 2013 was at a narrow net interest margin spread, which resulted in an unrealized fair value loss as of March 31, 2013. The unrealized losses related to Farmer Mac's USDA Guarantees line of business are backed by the full faith and credit of the United States.  None of the Farm & Ranch or Rural Utilities Guaranteed Securities has been in an unrealized loss position for greater than 12 months. Farmer Mac has concluded that none of the unrealized losses on its available-for-sale Farmer Mac Guaranteed Securities and USDA Guaranteed Securities represents an other-than-temporary impairment as of March 31, 2013 and December 31, 2012.  Farmer Mac does not intend to sell these securities and it is not more likely than not that Farmer Mac will be required to sell the securities before recovery of the amortized cost basis.

During the three months ended March 31, 2013 and 2012 Farmer Mac realized no gains or losses from the sale of Farmer Mac Guaranteed Securities and USDA Guaranteed Securities.

The amortized cost, fair value, and weighted average yield of available-for-sale Farmer Mac Guaranteed Securities and USDA Guaranteed Securities by remaining contractual maturity as of March 31, 2013 are set forth below. The balances presented are based on their final maturities, although the actual maturities may differ due to prepayments of the underlying assets.

 
Farmer Mac Guaranteed Securities and USDA Guaranteed Securities Available-for-Sale as of March 31, 2013
 
Amortized
Cost
 
Fair Value
 
Weighted-
Average
Yield
 
(dollars in thousands)
Due within one year
$
829,636

 
$
838,105

 
2.01
%
Due after one year through five years
3,136,706

 
3,220,504

 
2.33
%
Due after five years through ten years
760,245

 
777,915

 
2.62
%
Due after ten years
1,803,891

 
1,832,716

 
2.61
%
Total
$
6,530,478

 
$
6,669,240

 
2.40
%



Farmer Mac did not own any held-to-maturity Farmer Mac Guaranteed Securities or USDA Guaranteed Securities as of March 31, 2013 and December 31, 2012. As of March 31, 2013, Farmer Mac owned trading USDA Guaranteed Securities with an amortized cost of $88.0 million, a fair value of $87.3 million, and a weighted average yield of 5.73 percent. As of December 31, 2012, Farmer Mac owned trading USDA Guaranteed Securities with an amortized cost of $104.9 million, a fair value of $104.2 million, and a weighted average yield of 5.77 percent.