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, 2018 and December 31, 2017, Farmer Mac had no loans held for sale. The following table displays the composition of the loan balances as of June 30, 2018 and December 31, 2017:

Table 5.1



	As of June 30, 2018									As of December 31, 2017
	Unsecuritized			In Consolidated Trusts			Total			Unsecuritized			In Consolidated Trusts			Total
	(in thousands)
Farm & Ranch	$	2,935,712		$	1,443,246		$	4,378,958		$	2,798,906		$	1,399,827		$	4,198,733
Rural Utilities	991,819			—			991,819			1,076,291			—			1,076,291
Total unpaid principal balance⁽¹⁾	3,927,531			1,443,246			5,370,777			3,875,197			1,399,827			5,275,024
Unamortized premiums, discounts, and other cost basis adjustments	(11,404		)	—			(11,404		)	(1,442		)	—			(1,442		)
Total loans	3,916,127			1,443,246			5,359,373			3,873,755			1,399,827			5,273,582
Allowance for loan losses	(5,339		)	(1,450		)	(6,789		)	(5,493		)	(1,303		)	(6,796		)
Total loans, net of allowance	$	3,910,788		$	1,441,796		$	5,352,584		$	3,868,262		$	1,398,524		$	5,266,786


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

Allowance for Losses

Farm & Ranch

Farmer Mac maintains an allowance for losses presented in two components on its consolidated balance sheets: (1) an allowance for loan losses to account for estimated probable losses on loans held, and (2) a reserve for losses to account for estimated probable losses on loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities). Farmer Mac's total allowance for losses was $9.0 million as of June 30, 2018 and $8.9 million as of December 31, 2017. See Note 6 for more information about off-balance sheet Farmer Mac Guaranteed Securities and LTSPCs.

The following is a summary of the changes in the total allowance for losses for the three and six months ended June 30, 2018 and 2017:

Table 5.2



	As of June 30, 2018							As of June 30, 2017
	Allowance for Loan Losses			Reserve for Losses		Total Allowance for Losses		Allowance for Loan Losses			Reserve for Losses			Total Allowance for Losses
	(in thousands)
For the Three Months Ended
Beginning Balance	$	6,365		$	2,091	$	8,456	$	5,811		$	1,827		$	7,638
Provision for losses	424			158		582		327			139			466
Ending Balance	$	6,789		$	2,249	$	9,038	$	6,138		$	1,966		$	8,104

For the Six Months Ended
Beginning Balance	6,796			2,070		8,866		5,415			2,020			7,435
(Release of)/provision for losses	(7		)	179		172		964			(54		)	910
Charge-offs	$	—		$	—	$	—	$	(241	)	$	—		$	(241	)
Ending Balance	$	6,789		$	2,249	$	9,038	$	6,138		$	1,966		$	8,104

During second quarter 2018, Farmer Mac recorded a provision to both its allowance for loan losses and reserve for losses of $0.4 million and $0.2 million, respectively. The net provisions to the total allowance for loan losses recorded during second quarter 2018 were attributable to (1) a modest decline in overall portfolio credit quality, and (2) an increase in the general allowance due to net volume growth in both on and off-balance sheet Farm & Ranch loans, primarily related to new agricultural storage and processing loans purchased during second quarter 2018. Farmer Mac recorded no charge-offs to its allowance for loan losses during second quarter 2018.

During second quarter 2017, Farmer Mac recorded provisions to its allowance for loan losses and reserve for losses of $0.3 million and $0.1 million, respectively. The provisions to the allowance for loan losses recorded during the second quarter 2017 were primarily attributable to an increase in the general allowance due to overall net volume growth in on-balance sheet Farm & Ranch loans. The provision to the reserve for losses recorded during the second quarter 2017 was primarily attributable to an increase in the general reserve due to downgrades in risk ratings on certain unimpaired crop and permanent planting loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities. Farmer Mac recorded no charge-offs to its allowance for loan losses during the second quarter 2017.

The following tables present the changes in the total allowance for losses for the three and six months ended June 30, 2018 and 2017 by commodity type:

Table 5.3



	June 30, 2018
	Crops		Permanent Plantings			Livestock		Part-time Farm			Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,793	$	2,479		$	1,236	$	413		$	522	$	13	$	8,456
Provision for/(release of) losses	332		(111		)	86		35			198		42		582
Ending Balance	$	4,125	$	2,368		$	1,322	$	448		$	720	$	55	$	9,038

For the Six Months Ended:
Beginning Balance	$	4,081	$	2,469		$	1,211	$	481		$	606	$	18	$	8,866
Provision for/(release of) losses	44		(101		)	111		(33		)	114		37		172
Ending Balance	$	4,125	$	2,368		$	1,322	$	448		$	720	$	55	$	9,038



	June 30, 2017
	Crops			Permanent Plantings		Livestock			Part-time Farm			Ag. Storage and Processing		Other			Total
	(in thousands)
For the Three Months Ended:
Beginning Balance	$	3,562		$	1,870	$	1,379		$	324		$	472	$	31		$	7,638
Provision for/(release of) losses	173			294		(145		)	73			86		(15		)	466
Ending Balance	$	3,735		$	2,164	$	1,234		$	397		$	558	$	16		$	8,104

For the Six Months Ended:
Beginning Balance	$	3,365		$	1,723	$	1,375		$	405		$	533	$	34		$	7,435
Provision for/(release of) losses	598			441		(128		)	(8		)	25		(18		)	910
Charge-offs	(228		)	—		(13		)	—			—		—			(241		)
Ending Balance	$	3,735		$	2,164	$	1,234		$	397		$	558	$	16		$	8,104

The following tables present the unpaid principal balances of loans held and loans underlying LTSPCs and off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities) and the related total allowance for losses by impairment method and commodity type as of June 30, 2018 and December 31, 2017:

Table 5.4



	As of June 30, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,424,914	$	837,083	$	677,830	$	292,445	$	10,496	$	4,567	$	4,247,335
Off-balance sheet	1,256,165		501,328		654,115		162,146		58,062		3,604		2,635,420
Total	$	3,681,079	$	1,338,411	$	1,331,945	$	454,591	$	68,558	$	8,171	$	6,882,755
Individually evaluated for impairment:
On-balance sheet	$	65,878	$	40,694	$	16,558	$	8,493	$	—	$	—	$	131,623
Off-balance sheet	10,946		12,736		6,360		904		—		73		31,019
Total	$	76,824	$	53,430	$	22,918	$	9,397	$	—	$	73	$	162,642
Total Farm & Ranch loans:
On-balance sheet	$	2,490,792	$	877,777	$	694,388	$	300,938	$	10,496	$	4,567	$	4,378,958
Off-balance sheet	1,267,111		514,064		660,475		163,050		58,062		3,677		2,666,439
Total	$	3,757,903	$	1,391,841	$	1,354,863	$	463,988	$	68,558	$	8,244	$	7,045,397
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,260	$	918	$	741	$	271	$	10	$	24	$	4,224
Off-balance sheet	622		182		212		54		710		5		1,785
Total	$	2,882	$	1,100	$	953	$	325	$	720	$	29	$	6,009
Individually evaluated for impairment:
On-balance sheet	$	987	$	1,211	$	241	$	101	$	—	$	25	$	2,565
Off-balance sheet	256		57		128		22		—		1		464
Total	$	1,243	$	1,268	$	369	$	123	$	—	$	26	$	3,029
Total Farm & Ranch loans:
On-balance sheet	$	3,247	$	2,129	$	982	$	372	$	10	$	49	$	6,789
Off-balance sheet	878		239		340		76		710		6		2,249
Total	$	4,125	$	2,368	$	1,322	$	448	$	720	$	55	$	9,038



	As of December 31, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Ending Balance:
Collectively evaluated for impairment:
On-balance sheet	$	2,344,821	$	794,478	$	635,768	$	269,337	$	13,023	$	9,030	$	4,066,457
Off-balance sheet	1,236,392		532,666		678,642		155,627		45,738		4,981		2,654,046
Total	$	3,581,213	$	1,327,144	$	1,314,410	$	424,964	$	58,761	$	14,011	$	6,720,503
Individually evaluated for impairment:
On-balance sheet	$	67,828	$	38,180	$	17,766	$	7,858	$	—	$	644	$	132,276
Off-balance sheet	8,904		2,239		2,782		806		—		76		14,807
Total	$	76,732	$	40,419	$	20,548	$	8,664	$	—	$	720	$	147,083
Total Farm & Ranch loans:
On-balance sheet	$	2,412,649	$	832,658	$	653,534	$	277,195	$	13,023	$	9,674	$	4,198,733
Off-balance sheet	1,245,296		534,905		681,424		156,433		45,738		5,057		2,668,853
Total	$	3,657,945	$	1,367,563	$	1,334,958	$	433,628	$	58,761	$	14,731	$	6,867,586
Allowance for Losses:
Collectively evaluated for impairment:
On-balance sheet	$	2,104	$	1,101	$	738	$	287	$	44	$	11	$	4,285
Off-balance sheet	546		305		231		48		562		5		1,697
Total	$	2,650	$	1,406	$	969	$	335	$	606	$	16	$	5,982
Individually evaluated for impairment:
On-balance sheet	$	1,207	$	1,006	$	172	$	126	$	—	$	—	$	2,511
Off-balance sheet	224		57		70		20		—		2		373
Total	$	1,431	$	1,063	$	242	$	146	$	—	$	2	$	2,884
Total Farm & Ranch loans:
On-balance sheet	$	3,311	$	2,107	$	910	$	413	$	44	$	11	$	6,796
Off-balance sheet	770		362		301		68		562		7		2,070
Total	$	4,081	$	2,469	$	1,211	$	481	$	606	$	18	$	8,866

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, 2018 and December 31, 2017:

Table 5.5



	As of June 30, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	13,239	$	12,564	$	7,816	$	3,060	$	—	$	—	$	36,679
Unpaid principal balance	13,249		12,565		7,822		3,062		—		—		36,698
With a specific allowance:
Recorded investment⁽¹⁾	63,535		40,835		15,089		6,331		—		73		125,863
Unpaid principal balance	63,575		40,865		15,096		6,335		—		73		125,944
Associated allowance	1,243		1,268		369		123		—		26		3,029
Total:
Recorded investment	76,774		53,399		22,905		9,391		—		73		162,542
Unpaid principal balance	76,824		53,430		22,918		9,397		—		73		162,642
Associated allowance	1,243		1,268		369		123		—		26		3,029

Recorded investment of loans on nonaccrual status⁽²⁾	$	27,442	$	26,066	$	5,142	$	4,453	$	—	$	—	$	63,103


⁽¹⁾	Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $123.5 million (76 percent) of impaired loans as of June 30, 2018, which resulted in a specific allowance of $2.6 million.


⁽²⁾	Includes $27.4 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, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Impaired Loans:
With no specific allowance:
Recorded investment	$	14,417	$	3,272	$	11,171	$	1,953	$	—	$	644	$	31,457
Unpaid principal balance	14,418		3,273		11,172		1,953		—		644		31,460
With a specific allowance:
Recorded investment⁽¹⁾	62,309		37,143		9,376		6,710		—		76		115,614
Unpaid principal balance	62,314		37,146		9,376		6,711		—		76		115,623
Associated allowance	1,431		1,063		242		146		—		2		2,884
Total:
Recorded investment	76,726		40,415		20,547		8,663		—		720		147,071
Unpaid principal balance	76,732		40,419		20,548		8,664		—		720		147,083
Associated allowance	1,431		1,063		242		146		—		2		2,884

Recorded investment of loans on nonaccrual status⁽²⁾	$	27,630	$	25,701	$	5,333	$	4,929	$	—	$	—	$	63,593


⁽¹⁾	Impairment analysis was performed in the aggregate in consideration of similar risk characteristics of the assets and historical statistics on $113.2 million (77 percent) of impaired loans as of December 31, 2017, which resulted in a specific allowance of $2.7 million.


⁽²⁾	Includes $15.7 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, 2018 and 2017:

Table 5.6



	June 30, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	72,041	$	49,919	$	23,453	$	9,214	$	—	$	392	$	155,019
Income recognized on impaired loans	327		492		60		62		—		—		941

For the Six Months Ended:
Average recorded investment in impaired loans	$	74,527	$	45,945	$	21,361	$	8,780	$	—	$	557	$	151,170
Income recognized on impaired loans	719		664		139		117		—		—		1,639



	June 30, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
For the Three Months Ended:
Average recorded investment in impaired loans	$	65,295	$	33,222	$	12,557	$	7,926	$	—	$	40	$	119,040
Income recognized on impaired loans	160		68		22		71		—		—		321

For the Six Months Ended:
Average recorded investment in impaired loans	$	61,226	$	32,292	$	13,497	$	8,119	$	—	$	27	$	115,161
Income recognized on impaired loans	462		220		199		174		—		—		1,055

For the three and six months ended June 30, 2018, there were no troubled debt restructurings ("TDRs"). For the three and six months ended June 30, 2017, the recorded investment of loans determined to be TDRs was $0.2 million both before and after restructuring. As of June 30, 2018 and 2017, there were no TDRs identified during the previous 12 months that were in default under the modified terms. The impact of TDRs on Farmer Mac's allowance for loan losses was immaterial for the three and six months ended June 30, 2018 and 2017.

In accordance with the terms of all LTSPCs, Farmer Mac acquires loans that are either 90 days or 120 days delinquent (depending on the provisions of the applicable agreement) upon the request of the counterparty. Subsequent to the purchase, these defaulted loans are treated as nonaccrual loans and, therefore, interest is accounted for on the cash basis. Any decreases in expected cash flows are recognized as impairment.

The following tables present information related to Farmer Mac's acquisition of defaulted loans for the three and six months ended June 30, 2018 and 2017 and the outstanding balances and carrying amounts of all such loans as of June 30, 2018 and December 31, 2017:

Table 5.7



	For the Three Months Ended				For the Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
	($ in thousands)
Unpaid principal balance at acquisition date:
Loans underlying LTSPCs	$	—	$	—	$	—	$	311
Loans underlying off-balance sheet Farmer Mac Guaranteed Securities (excluding AgVantage securities)	—		104		721		104
Total unpaid principal balance at acquisition date	—		104		721		415
Contractually required payments receivable	—		105		730		416
Impairment recognized subsequent to acquisition	—		—		—		—
Release of allowance for all outstanding acquired defaulted loans	—		128		—		142

Number of defaulted loans purchased	—		1		4		4



	As of
	June 30, 2018		December 31, 2017
	(in thousands)
Outstanding balance	$	19,131	$	18,866
Carrying amount	17,776		17,691

Net credit losses and 90-day delinquencies as of and for the periods indicated for loans held and loans underlying off-balance sheet securities representing interests in pools of eligible Farm & Ranch loans ("Farm & Ranch Guaranteed Securities") and LTSPCs are presented in the table below. As of June 30, 2018, there were no delinquencies and no probable losses inherent in Farmer Mac's Rural Utilities loan portfolio and Farmer Mac had 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, 2018		December 31, 2017		June 30, 2018			June 30, 2017
	(in thousands)
On-balance sheet assets:
Farm & Ranch:
Loans	$	35,744	$	47,881	$	(18	)	$	(488	)
Total on-balance sheet	$	35,744	$	47,881	$	(18	)	$	(488	)
Off-balance sheet assets:
Farm & Ranch:
LTSPCs	$	7,332	$	563	$	—		$	—
Total off-balance sheet	$	7,332	$	563	$	—		$	—
Total	$	43,076	$	48,444	$	(18	)	$	(488	)


⁽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, or in bankruptcy with at least one missed payment, excluding loans performing under either their original loan terms or a court-approved bankruptcy plan.

Of the $35.7 million of on-balance sheet loans reported as 90-day delinquencies as of June 30, 2018, $0.7 million were loans subject to "removal-of-account" provisions. Of the $47.9 million of on-balance sheet loans reported as 90-day delinquencies as of December 31, 2017, $0.3 million were loans subject to "removal-of-account" provisions.

Credit Quality Indicators

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, 2018 and December 31, 2017:

Table 5.9



	As of June 30, 2018
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade⁽¹⁾
On-balance sheet:
Acceptable	$	2,315,593	$	829,733	$	651,584	$	287,055	$	10,496	$	4,567	$	4,099,028
Special mention⁽²⁾	109,471		7,350		26,248		5,847		—		—		148,916
Substandard⁽³⁾	65,728		40,694		16,556		8,036		—		—		131,014
Total on-balance sheet	$	2,490,792	$	877,777	$	694,388	$	300,938	$	10,496	$	4,567	$	4,378,958
Off-Balance Sheet:
Acceptable	$	1,146,495	$	463,043	$	610,263	$	156,667	$	56,698	$	2,945	$	2,436,111
Special mention⁽²⁾	76,110		24,774		32,839		921		—		158		134,802
Substandard⁽³⁾	44,506		26,247		17,373		5,462		1,364		574		95,526
Total off-balance sheet	$	1,267,111	$	514,064	$	660,475	$	163,050	$	58,062	$	3,677	$	2,666,439
Total Ending Balance:
Acceptable	$	3,462,088	$	1,292,776	$	1,261,847	$	443,722	$	67,194	$	7,512	$	6,535,139
Special mention⁽²⁾	185,581		32,124		59,087		6,768		—		158		283,718
Substandard⁽³⁾	110,234		66,941		33,929		13,498		1,364		574		226,540
Total	$	3,757,903	$	1,391,841	$	1,354,863	$	463,988	$	68,558	$	8,244	$	7,045,397

Commodity analysis of past due loans⁽¹⁾
On-balance sheet	$	17,290	$	8,363	$	6,654	$	3,437	$	—	$	—	$	35,744
Off-balance sheet	5,747		—		1,085		500		—		—		7,332
90 days or more past due	$	23,037	$	8,363	$	7,739	$	3,937	$	—	$	—	$	43,076


⁽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, 2017
	Crops		Permanent Plantings		Livestock		Part-time Farm		Ag. Storage and Processing		Other		Total
	(in thousands)
Credit risk profile by internally assigned grade⁽¹⁾
On-balance sheet:
Acceptable	$	2,274,912	$	771,600	$	617,527	$	260,854	$	13,023	$	9,030	$	3,946,946
Special mention⁽²⁾	70,063		22,878		18,405		8,483		—		—		119,829
Substandard⁽³⁾	67,674		38,180		17,602		7,858		—		644		131,958
Total on-balance sheet	$	2,412,649	$	832,658	$	653,534	$	277,195	$	13,023	$	9,674	$	4,198,733
Off-Balance Sheet
Acceptable	$	1,132,196	$	478,573	$	634,633	$	150,906	$	42,723	$	4,294	$	2,443,325
Special mention⁽²⁾	76,778		26,134		31,451		1,647		—		169		136,179
Substandard⁽³⁾	36,322		30,198		15,340		3,880		3,015		594		89,349
Total off-balance sheet	$	1,245,296	$	534,905	$	681,424	$	156,433	$	45,738	$	5,057	$	2,668,853
Total Ending Balance:
Acceptable	$	3,407,108	$	1,250,173	$	1,252,160	$	411,760	$	55,746	$	13,324	$	6,390,271
Special mention⁽²⁾	146,841		49,012		49,856		10,130		—		169		256,008
Substandard⁽³⁾	103,996		68,378		32,942		11,738		3,015		1,238		221,307
Total	$	3,657,945	$	1,367,563	$	1,334,958	$	433,628	$	58,761	$	14,731	$	6,867,586

Commodity analysis of past due loans⁽¹⁾
On-balance sheet	$	21,702	$	18,833	$	3,835	$	3,511	$	—	$	—	$	47,881
Off-balance sheet	151		—		—		412		—		—		563
90 days or more past due	$	21,853	$	18,833	$	3,835	$	3,923	$	—	$	—	$	48,444


⁽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, the range of original loan-to-value ratios, and the range in the size of borrower exposure for all Farm & Ranch loans held and loans underlying off-balance sheet Farm & Ranch Guaranteed Securities and LTSPCs as of June 30, 2018 and December 31, 2017:

Table 5.10



	As of
	June 30, 2018		December 31, 2017
	(in thousands)
By commodity/collateral type:
Crops	$	3,757,903	$	3,657,945
Permanent plantings	1,391,841		1,367,563
Livestock	1,354,863		1,334,958
Part-time farm	463,988		433,628
Ag. Storage and Processing	68,558		58,761
Other	8,244		14,731
Total	$	7,045,397	$	6,867,586
By geographic region⁽¹⁾:
Northwest	$	819,607	$	740,991
Southwest	2,170,739		2,093,213
Mid-North	2,279,960		2,244,094
Mid-South	879,945		908,603
Northeast	305,288		296,264
Southeast	589,858		584,421
Total	$	7,045,397	$	6,867,586
By original loan-to-value ratio⁽²⁾:
0.00% to 40.00%	$	1,314,094	$	1,322,422
40.01% to 50.00%	1,762,371		1,733,671
50.01% to 60.00%	2,440,299		2,385,605
60.01% to 70.00%	1,235,630		1,150,914
70.01% to 80.00%	268,002		248,799
80.01% to 90.00%	25,001		26,175
Total	$	7,045,397	$	6,867,586
By size of borrower exposure⁽³⁾:
Less than $1,000,000	$	2,427,187	$	2,379,596
$1,000,000 to $4,999,999	2,729,196		2,627,617
$5,000,000 to $9,999,999	908,347		867,574
$10,000,000 to $24,999,999	565,184		584,896
$25,000,000 to $50,000,000	415,483		407,903
Total	$	7,045,397	$	6,867,586


⁽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).

⁽²⁾

As of second quarter 2017, Farmer Mac revised its calculation of the original loan-to-value ratio of a loan to combine for any cross-collateralized loans: (i) the original loan principal balance amounts in the numerator and (ii) the original appraised property values in the denominator. In previous periods, the ratio was calculated on a loan-by-loan basis without considering the effects of any cross-collateralization. Prior period information has been reclassified to conform to the current period calculation and presentation.


⁽³⁾	Includes multiple loans to the same borrower or borrower-related entities.

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.