Loans and Allowance for Losses and Concentrations of Credit Risk

6 Months Ended

Jun. 30, 2014

Loans and Leases Receivable, Allowance [Abstract]

Loans and Allowance for Credit Losses and Concentration Risk Disclosure

LOANS AND ALLOWANCE FOR LOSSES

Loans

Farmer Mac classifies loans as either held for investment or held for sale. Loans held for investment are recorded at the unpaid principal balance, net of unamortized premium or discount and other cost adjustments. Loans held for sale are reported at the lower of cost or fair value determined on a pooled basis. As of June 30, 2014 and December 31, 2013, Farmer Mac had no loans held for sale. The following table displays the composition of the loan balances as of June 30, 2014 and December 31, 2013:

Table 5.1

	As of June 30, 2014									As of December 31, 2013
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	1,955,207		$	371,960		$	2,327,167		$	1,875,958		$	259,509		$	2,135,467
Rural Utilities	719,784			292,529			1,012,313			698,010			354,241			1,052,251
Total unpaid principal balance (1)	2,674,991			664,489			3,339,480			2,573,968			613,750			3,187,718
Unamortized premiums, discounts and other cost basis adjustments	(3,540		)	4,247			707			(3,843		)	16,239			12,396
Total loans	2,671,451			668,736			3,340,187			2,570,125			629,989			3,200,114
Allowance for loan losses	(5,274		)	(496		)	(5,770		)	(6,587		)	(279		)	(6,866		)
Total loans, net of allowance	$	2,666,177		$	668,240		$	3,334,417		$	2,563,538		$	629,710		$	3,193,248

(1) Unpaid principal balance is the basis of presentation in disclosures of outstanding balances for Farmer Mac's lines of business.

Allowances for Losses

Farmer Mac maintains an allowance for loan losses to account for estimated probable losses on loans held and a reserve for losses to account for estimated probable losses on loans underlying long-term standby purchase commitments ("LTSPCs") and off-balance sheet Farmer Mac Guaranteed Securities.  As of June 30, 2014 and December 31, 2013, Farmer Mac recorded allowances for losses of $11.4 million and $13.3 million, respectively. See Note 3 and Note 6 for more information about Farmer Mac Guaranteed Securities.  Farmer Mac Guaranteed Securities do not include AgVantage securities with regard to the allowance for losses discussion.

Farmer Mac's allowance for losses is presented in two components on its consolidated balance sheets:

• an "Allowance for loan losses" on loans held; and

• a "Reserve for losses" on loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities.

The following is a summary of the changes in the total allowance for losses for the three and six months ended June 30, 2014 and 2013:

Table 5.2

	June 30, 2014									June 30, 2013
	Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses			Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses
For the Three Months Ended:	(in thousands)
Beginning Balance	$	7,410		$	6,569		$	13,979		$	7,967		$	6,285		$	14,252
Release of losses	(1,583		)	(974		)	(2,557		)	(529		)	(175		)	(704		)
Charge-offs	(57		)	—			(57		)	(70		)	—			(70		)
Ending Balance	$	5,770		$	5,595		$	11,365		$	7,368		$	6,110		$	13,478
For the Six Months Ended:
Beginning Balance	$	6,866		$	6,468		$	13,334		$	11,351		$	5,539		$	16,890
(Release of)/provision for losses	(1,010		)	(873		)	(1,883		)	(99		)	571			472
Charge-offs	(86		)	—			(86		)	(3,884		)	—			(3,884		)
Ending Balance	$	5,770		$	5,595		$	11,365		$	7,368		$	6,110		$	13,478

During second quarter 2014, Farmer Mac recorded releases to its allowance for loan losses of $1.6 million and releases to its reserve for losses of $1.0 million. Farmer Mac also recorded $0.1 million of charge-offs to its allowance for loan losses during second quarter 2014. The releases recorded during second quarter 2014 primarily relate to a significant decline in the balance of its ethanol-related Agricultural Storage and Processing portfolio. During second quarter 2013, Farmer Mac recorded a release from its allowance for loan losses of $0.5 million and a release from its reserve for losses of $0.2 million. Farmer Mac also recorded charge-offs of $0.1 million to its allowance for loan losses during second quarter 2013. Charge-offs recorded in first quarter 2013 included a $3.6 million charge-off related to one ethanol loan that transitioned to real estate owned ("REO") during that quarter and for which Farmer Mac had previously provided a specific allowance.

The following tables present the changes in the total allowance for losses for the three and six months ended June 30, 2014 and 2013 by commodity type:

Table 5.3

	June 30, 2014
	Crops		Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing (including ethanol facilities)			Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	2,278	$	2,131	$	1,387		$	464		$	7,715		$	4		$	13,979
Provision for/(release of) losses	112		86		(19		)	(20		)	(2,716		)	—			(2,557		)
Charge-offs	—		—		(57		)	—			—			—			(57		)
Ending Balance	$	2,390	$	2,217	$	1,311		$	444		$	4,999		$	4		$	11,365
For the Six Months Ended:
Beginning Balance	$	2,124	$	2,186	$	1,271		$	454		$	7,292		$	7		$	13,334
Provision for/(release of) losses	266		31		97			19			(2,293		)	(3		)	(1,883		)
Charge-offs	—		—		(57		)	(29		)	—			—			(86		)
Ending Balance	$	2,390	$	2,217	$	1,311		$	444		$	4,999		$	4		$	11,365

	June 30, 2013
	Crops			Permanent Plantings			Livestock			Part-time Farm			Ag. Storage and Processing (including ethanol facilities)			Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	2,617		$	2,326		$	1,587		$	733		$	6,971		$	18		$	14,252
(Release of)/provision for losses	(212		)	(158		)	(308		)	(238		)	225			(13		)	(704		)
Charge-offs	—			—			—			(70		)	—			—			(70		)
Ending Balance	$	2,405		$	2,168		$	1,279		$	425		$	7,196		$	5		$	13,478
For the Six Months Ended:
Beginning Balance	$	2,589		$	2,316		$	1,534		$	784		$	9,661		$	6		$	16,890
(Release of)/provision for losses	(184		)	41			(255		)	(289		)	1,160			(1		)	472
Charge-offs	—			(189		)	—			(70		)	(3,625		)	—			(3,884		)
Ending Balance	$	2,405		$	2,168		$	1,279		$	425		$	7,196		$	5		$	13,478

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities and the related total allowance for losses by impairment method and commodity type as of June 30, 2014 and December 31, 2013:

Table 5.4

	As of June 30, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	1,487,792	$	318,616	$	368,556	$	40,744	$	35,593	$	662	$	2,251,963
Off-balance sheet	1,323,765		546,073		875,870		105,263		112,247		7,520		2,970,738
Total	$	2,811,557	$	864,689	$	1,244,426	$	146,007	$	147,840	$	8,182	$	5,222,701
Individually evaluated for impairment:
On-balance sheet	$	18,011	$	38,782	$	8,094	$	10,317	$	—	$	—	$	75,204
Off-balance sheet	3,217		3,331		4,309		1,902		—		—		12,759
Total	$	21,228	$	42,113	$	12,403	$	12,219	$	—	$	—	$	87,963
Total Farm & Ranch loans:
On-balance sheet	$	1,505,803	$	357,398	$	376,650	$	51,061	$	35,593	$	662	$	2,327,167
Off-balance sheet	1,326,982		549,404		880,179		107,165		112,247		7,520		2,983,497
Total	$	2,832,785	$	906,802	$	1,256,829	$	158,226	$	147,840	$	8,182	$	5,310,664
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,723	$	369	$	615	$	32	$	756	$	—	$	3,495
Off-balance sheet	311		162		529		48		4,243		4		5,297
Total	$	2,034	$	531	$	1,144	$	80	$	4,999	$	4	$	8,792
Individually evaluated for impairment:
On-balance sheet	$	269	$	1,594	$	103	$	309	$	—	$	—	$	2,275
Off-balance sheet	87		92		64		55		—		—		298
Total	$	356	$	1,686	$	167	$	364	$	—	$	—	$	2,573
Total Farm & Ranch loans:
On-balance sheet	$	1,992	$	1,963	$	718	$	341	$	756	$	—	$	5,770
Off-balance sheet	398		254		593		103		4,243		4		5,595
Total	$	2,390	$	2,217	$	1,311	$	444	$	4,999	$	4	$	11,365

	As of December 31, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	1,363,861	$	295,037	$	319,665	$	39,940	$	32,636	$	359	$	2,051,498
Off-balance sheet	1,279,887		567,932		912,397		109,884		138,282		8,159		3,016,541
Total	$	2,643,748	$	862,969	$	1,232,062	$	149,824	$	170,918	$	8,518	$	5,068,039
Individually evaluated for impairment:
On-balance sheet	$	21,147	$	41,441	$	10,844	$	10,422	$	—	$	115	$	83,969
Off-balance sheet	1,962		3,414		3,199		2,497		—		—		11,072
Total	$	23,109	$	44,855	$	14,043	$	12,919	$	—	$	115	$	95,041
Total Farm & Ranch loans:
On-balance sheet	$	1,385,008	$	336,478	$	330,509	$	50,362	$	32,636	$	474	$	2,135,467
Off-balance sheet	1,281,849		571,346		915,596		112,381		138,282		8,159		3,027,613
Total	$	2,666,857	$	907,824	$	1,246,105	$	162,743	$	170,918	$	8,633	$	5,163,080
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	1,321	$	325	$	436	$	20	$	2,290	$	—	$	4,392
Off-balance sheet	397		159		642		42		5,002		4		6,246
Total	$	1,718	$	484	$	1,078	$	62	$	7,292	$	4	$	10,638
Individually evaluated for impairment:
On-balance sheet	$	362	$	1,641	$	140	$	331	$	—	$	—	$	2,474
Off-balance sheet	44		61		53		61		—		3		222
Total	$	406	$	1,702	$	193	$	392	$	—	$	3	$	2,696
Total Farm & Ranch loans:
On-balance sheet	$	1,683	$	1,966	$	576	$	351	$	2,290	$	—	$	6,866
Off-balance sheet	441		220		695		103		5,002		7		6,468
Total	$	2,124	$	2,186	$	1,271	$	454	$	7,292	$	7	$	13,334

The following tables present by commodity type the unpaid principal balances, recorded investment, and specific allowance for losses related to impaired loans and the recorded investment in loans on nonaccrual status as of June 30, 2014 and December 31, 2013:

Table 5.5

	As of June 30, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including  ethanol facilities)		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	8,284	$	8,411	$	6,417	$	1,745	$	—	$	—	$	24,857
Unpaid principal balance	8,071		8,364		6,284		1,753		—		—		24,472
With a specific allowance:
Recorded investment (1)	13,763		34,256		5,898		10,409		—		—		64,326
Unpaid principal balance	13,157		33,749		6,119		10,466		—		—		63,491
Associated allowance	356		1,686		167		364		—		—		2,573
Total:
Recorded investment	22,047		42,667		12,315		12,154		—		—		89,183
Unpaid principal balance	21,228		42,113		12,403		12,219		—		—		87,963
Associated allowance	356		1,686		167		364		—		—		2,573
Recorded investment of loans on nonaccrual status (2)	$	9,737	$	15,020	$	5,141	$	5,757	$	—	$	—	$	35,655

(1) Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $57.1 million (64 percent) of impaired loans as of June 30, 2014, which resulted in a specific reserve of $1.3 million.

(2) Includes $10.5 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

	As of December 31, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including  ethanol facilities)		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	6,956	$	9,880	$	6,671	$	1,444	$	—	$	—	$	24,951
Unpaid principal balance	6,825		9,877		6,588		1,443		—		—		24,733
With a specific allowance:
Recorded investment (1)	16,697		36,146		7,600		11,554		—		119		72,116
Unpaid principal balance	16,284		34,978		7,455		11,476		—		115		70,308
Associated allowance	406		1,702		193		392		—		3		2,696
Total:
Recorded investment	23,653		46,026		14,271		12,998		—		119		97,067
Unpaid principal balance	23,109		44,855		14,043		12,919		—		115		95,041
Associated allowance	406		1,702		193		392		—		3		2,696
Recorded investment of loans on nonaccrual status (2)	$	10,812	$	15,237	$	5,344	$	5,835	$	—	$	—	$	37,228

(1) Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $65.1 million (67 percent) of impaired loans as of December 31, 2013, which resulted in a specific reserve of $1.3 million.

(2) Includes $9.6 million of loans that are less than 90 days delinquent but which have not met Farmer Mac's performance criteria for returning to accrual status.

The following table presents by commodity type the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2014 and 2013:

Table 5.6

	June 30, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including  ethanol facilities)		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	22,969	$	43,329	$	12,798	$	12,116	$	—	$	—	$	91,212
Income recognized on impaired loans	105		76		59		79		—		—		319
For the Six Months Ended:
Average recorded investment in impaired loans	$	23,197	$	44,228	$	13,289	$	12,410	$	—	$	40	$	93,164
Income recognized on impaired loans	275		270		135		201		—		—		881

	June 30, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including  ethanol facilities)		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	34,879	$	46,300	$	17,403	$	12,181	$	—	$	571	$	111,334
Income recognized on impaired loans	61		123		38		78		—		—		300
For the Six Months Ended:
Average recorded investment in impaired loans	$	31,422	$	43,606	$	17,270	$	13,207	$	1,446	$	722	$	107,673
Income recognized on impaired loans	403		497		192		272		—		—		1,364

For the three and six months ended June 30, 2014, the recorded investment of loans determined to be troubled debt restructurings ("TDRs") was $0.3 million and $0.8 million, respectively, both before and after restructuring. For the three months and six months ended June 30, 2013, the recorded investment of loans determined to be TDRs was $0.7 million and $0.9 million before restructuring and $0.7 million and $1.0 million after restructuring. As of June 30, 2014, there were no TDRs identified during the previous 12 months that were in default under the modified terms. As of June 30, 2013, there were two TDRs identified during the previous 12 months that were in default under the modified terms, with a recorded investment of $0.4 million. The impact of TDRs on Farmer Mac's allowance for loan losses was immaterial for the three and six months ended June 30, 2014.

During the three months ended June 30, 2014, Farmer Mac purchased no defaulted loans. During the six months ended June 30, 2014, Farmer Mac purchased one defaulted loan having an unpaid principal balance of $0.4 million from a pool underlying an LTSPC.  During the three and six months ended June 30, 2013, Farmer Mac purchased six defaulted loans having an unpaid principal balance of $5.9 million and eight defaulted loans having an unpaid principal balance of $6.1 million, respectively, from pools underlying Farm & Ranch Guaranteed Securities and LTSPCs.

The following tables present information related to Farmer Mac's acquisition of defaulted loans for the three and six months ended June 30, 2014 and 2013 and the outstanding balances and carrying amounts of all such loans as of June 30, 2014 and December 31, 2013:

Table 5.7

	For the Three Months Ended				For the Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
	(in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	—	$	—	$	440	$	37
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities	—		5,935		—		6,038
Total unpaid principal balance at acquisition date	—		5,935		440		6,075
Contractually required payments receivable	—		6,086		440		6,229
Impairment recognized subsequent to acquisition	17		61		69		447
Recovery/release of allowance for defaulted loans	5		839		7		889

	As of
	June 30, 2014		December 31, 2013
	(in thousands)
Outstanding balance	$	30,463	$	32,838
Carrying amount	28,429		29,613

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs are presented in the table below.  As of June 30, 2014, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities loan portfolio and Farmer Mac has not experienced credit losses on any Rural Utilities loans.

Table 5.8

	90-Day Delinquencies (1)				Net Credit (Recoveries)/Losses
	As of				For the Six Months Ended
	June 30, 2014		December 31, 2013		June 30, 2014			June 30, 2013
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	25,118	$	27,580	$	(21	)	$	2,857
Total on-balance sheet	$	25,118	$	27,580	$	(21	)	$	2,857
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	793	$	716	$	—		$	—
Total off-balance sheet	$	793	$	716	$	—		$	—
Total	$	25,911	$	28,296	$	(21	)	$	2,857

(1) Includes loans and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs that are 90 days or more past due, in foreclosure, restructured after delinquency, or in bankruptcy, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $25.1 million and $27.6 million of on-balance sheet loans reported as 90-day delinquencies as of June 30, 2014 and December 31, 2013, respectively, $1.2 million, were loans subject to "removal-of-account" provisions.

Credit Quality Indicators

Farmer Mac analyzes credit risk related to loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities based on internally assigned loan scores (i.e., risk ratings) that are derived by taking into consideration such factors as historical repayment performance, indicators of current financial condition, loan seasoning, loan size, and loan-to-value ratio. Loans are then classified into one of the following asset categories based on their underlying risk rating: acceptable; other assets especially mentioned; and substandard. Farmer Mac believes this analysis provides meaningful information regarding the credit risk profile of its Farm & Ranch portfolio as of each quarterly reporting period end date.

Farmer Mac also uses 90-day delinquency information to evaluate its credit risk exposure on these assets because historically it has been the best measure of borrower credit quality deterioration. Most of the loans held and underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities have annual (January 1) or semi-annual (January 1 and July 1) payment dates and are supported by less frequent and less predictable revenue sources, such as the cash flows generated from the maturation of crops, sales of livestock, and government farm support programs.  Taking into account the reduced frequency of payment due dates and revenue sources, Farmer Mac considers 90-day delinquency to be the most significant observation point when evaluating delinquency information.

The following tables present credit quality indicators related to Farm & Ranch loans held and loans underlying LTSPCs and off-balance sheet Farm & Ranch Guaranteed Securities as of June 30, 2014 and December 31, 2013:  

Table 5.9

	As of June 30, 2014
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade (1)
On-balance sheet:
Acceptable	$	1,457,197	$	316,996	$	340,433	$	39,591	$	26,279	$	662	$	2,181,158
Special mention (2)	30,594		1,620		28,429		1,153		4,080		—		65,876
Substandard (3)	18,012		38,782		7,788		10,317		5,234		—		80,133
Total on-balance sheet	$	1,505,803	$	357,398	$	376,650	$	51,061	$	35,593	$	662	$	2,327,167
Off-Balance Sheet:
Acceptable	$	1,299,651	$	522,316	$	818,678	$	100,514	$	83,711	$	6,854	$	2,831,724
Special mention (2)	13,624		17,265		34,222		1,033		13,911		565		80,620
Substandard (3)	13,707		9,823		27,279		5,618		14,625		101		71,153
Total off-balance sheet	$	1,326,982	$	549,404	$	880,179	$	107,165	$	112,247	$	7,520	$	2,983,497
Total Ending Balance:
Acceptable	$	2,756,848	$	839,312	$	1,159,111	$	140,105	$	109,990	$	7,516	$	5,012,882
Special mention (2)	44,218		18,885		62,651		2,186		17,991		565		146,496
Substandard (3)	31,719		48,605		35,067		15,935		19,859		101		151,286
Total	$	2,832,785	$	906,802	$	1,256,829	$	158,226	$	147,840	$	8,182	$	5,310,664
Commodity analysis of past due loans (1)
On-balance sheet	$	5,910	$	11,339	$	5,511	$	2,358	$	—	$	—	$	25,118
Off-balance sheet	379		—		—		414		—		—		793
90-days or more past due	$	6,289	$	11,339	$	5,511	$	2,772	$	—	$	—	$	25,911

(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans. 

(2) Assets in the Special mention category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  

(3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

	As of December 31, 2013
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing (including ethanol facilities)		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade (1)
On-balance sheet:
Acceptable	$	1,348,205	$	290,064	$	300,308	$	39,022	$	10,987	$	359	$	1,988,945
Special Mention (2)	15,656		4,973		19,357		918		6,267		—		47,171
Substandard (3)	21,147		41,441		10,844		10,422		15,382		115		99,351
Total on-balance sheet	$	1,385,008	$	336,478	$	330,509	$	50,362	$	32,636	$	474	$	2,135,467
Off-Balance Sheet
Acceptable	$	1,251,834	$	548,254	$	844,130	$	105,589	$	99,072	$	7,478	$	2,856,357
Special Mention (2)	10,977		15,621		36,555		917		11,011		578		75,659
Substandard (3)	19,038		7,471		34,911		5,875		28,199		103		95,597
Total off-balance sheet	$	1,281,849	$	571,346	$	915,596	$	112,381	$	138,282	$	8,159	$	3,027,613
Total Ending Balance:
Acceptable	$	2,600,039	$	838,318	$	1,144,438	$	144,611	$	110,059	$	7,837	$	4,845,302
Special Mention (2)	26,633		20,594		55,912		1,835		17,278		578		122,830
Substandard (3)	40,185		48,912		45,755		16,297		43,581		218		194,948
Total	$	2,666,857	$	907,824	$	1,246,105	$	162,743	$	170,918	$	8,633	$	5,163,080
Commodity analysis of past due loans (1)
On-balance sheet	$	8,036	$	11,841	$	4,462	$	3,122	$	—	$	119	$	27,580
Off-balance sheet	220		—		—		496		—		—		716
90-days or more past due	$	8,256	$	11,841	$	4,462	$	3,618	$	—	$	119	$	28,296

(1) Amounts represent unpaid principal balance of risk-rated loans, which is the basis Farmer Mac uses to analyze its portfolio, and recorded investment of past due loans.  

(2) Assets in the Special mention category generally have potential weaknesses due to performance issues but are currently considered to be adequately secured.  

(3) Substandard assets have a well-defined weakness or weaknesses and there is a distinct possibility that some loss will be sustained if deficiencies are not corrected.

Concentrations of Credit Risk

The following table sets forth the geographic and commodity/collateral diversification, as well as the range of original loan-to-value ratios, for all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs as of June 30, 2014 and December 31, 2013:

Table 5.10

	As of June 30, 2014		As of December 31, 2013
	(in thousands)
By commodity/collateral type:
Crops	$	2,832,785	$	2,666,857
Permanent plantings	906,802		907,824
Livestock	1,256,829		1,246,105
Part-time farm	158,226		162,743
Ag. Storage and Processing (including ethanol facilities)	147,840		170,918
Other	8,182		8,633
Total	$	5,310,664	$	5,163,080
By geographic region (1):
Northwest	$	551,254	$	524,034
Southwest	1,716,331		1,752,109
Mid-North	1,834,187		1,702,668
Mid-South	622,183		601,359
Northeast	224,830		231,731
Southeast	361,879		351,179
Total	$	5,310,664	$	5,163,080
By original loan-to-value ratio:
0.00% to 40.00%	$	1,439,917	$	1,375,758
40.01% to 50.00%	1,160,478		1,099,033
50.01% to 60.00%	1,462,113		1,431,562
60.01% to 70.00%	1,107,922		1,113,427
70.01% to 80.00%	106,556		110,828
80.01% to 90.00%	33,678		32,472
Total	$	5,310,664	$	5,163,080

(1) Geographic regions:  Northwest (AK, ID, MT, OR, WA, WY); Southwest (AZ, CA, CO, HI, NM, NV, UT); Mid-North (IA, IL, IN, MI, MN, NE, ND, SD, WI); Mid-South (AR, KS, LA, MO, OK, TX); Northeast (CT, DE, KY, MA, MD, ME, NH, NJ, NY, OH, PA, RI, VA, VT, WV); Southeast (AL, FL, GA, MS, NC, SC, TN).

The original loan-to-value ratio is calculated by dividing the loan principal balance at the time of guarantee, purchase, or commitment by the appraised value at the date of loan origination or, when available, the updated appraised value at the time of guarantee, purchase, or commitment.  Current loan-to-value ratios may be higher or lower than the original loan-to-value ratios.