UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 23, 2003
Federal Agricultural Mortgage Corporation
-------------------------------------------
(Exact name of registrant as specified in its charter)
Federally chartered
instrumentality of
the United States 0-17440 52-1578738
------------------------------- ------------ ------------------
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
1133 Twenty-First Street, N.W., Suite 600, Washington, D.C. 20036
----------------------------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (202) 872-7700
No change
--------------------
(Former name or former address, if changed since last report)
Item 7. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
99 Press release dated January 23, 2003.
Item 9. Regulation FD Disclosure.
On January 23, 2003, the Registrant issued a press release to announce the
Registrant's financial results for fourth quarter 2002. The press release is
filed as Exhibit 99 hereto and incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FEDERAL AGRICULTURAL MORTGAGE CORPORATION
By: /s/ Jerome G. Oslick
---------------------------------
Name: Jerome G. Oslick
Title: Vice President - General Counsel
Dated: January 24, 2003
EXHIBIT INDEX
Exhibit No. Description Page No.
----------- ----------- --------
99 Press Release Dated January 23, 2003 5
Exhibit 99
FARMER MAC NEWS
FOR IMMEDIATE RELEASE CONTACT
--------------------- -------------
January 23, 2003 Jerome Oslick
202-872-7700
Farmer Mac Posts Solid Fourth Quarter Results
New Volume Exceeded $2 Billion for the Year
Washington, D.C. -- The Federal Agricultural Mortgage Corporation (Farmer
Mac, NYSE: AGM and AGMA) today announced it achieved net income for fourth
quarter 2002 of $2.8 million, or $0.23 per diluted share, and net income of
$21.3 million, or $1.77 per diluted share, for the year. Excluding extraordinary
gains and losses, net income was $4.1 million, or $0.34 per diluted share, and
$20.4 million, or $1.69 per diluted share for fourth quarter 2002 and the year,
respectively. Later in this release, Farmer Mac provides supplemental
information about the impact of Statement of Financial Accounting Standards No.
133, Accounting for Derivative Instruments and Hedging Activities ("FAS 133"),
which reduced net income by $1.8 million in fourth quarter 2002 and $2.5 million
for the year.
Farmer Mac President and Chief Executive Officer Henry D. Edelman stated,
"Farmer Mac's solid fourth quarter performance confirms the soundness of its
business approach and its financial strength as it fulfills its
Congressionally-mandated mission to serve America's farmers, ranchers and rural
homeowners. We grew our 2002 new business volume by more than $2 billion, a 38%
increase over the previous year and a new annual record.
"We are pleased with our business growth and financial performance during
2002, even though both were dampened by the effects of adverse publicity related
to misinformation published in the media and on the internet. Current and
prospective customers' interest in our business has picked up and earnings were
helped by the receipt of yield maintenance payments that resulted from the
declining interest rate environment throughout 2002. As we look forward to 2003,
we are seeing slower borrower prepayments which, while representing an expected
reduction of income related to the yield maintenance income that accompanies
such prepayments, is a positive indicator of a longer-term stream of future
interest income.
"Overall, we are gratified by the performance of the portfolio of loans
underlying our guarantees and Long-Term Standby Purchase Commitments ("LTSPCs").
As we have noted in the past, Farmer Mac anticipates fluctuations in loan
delinquencies, both in absolute dollars and as a percentage of the outstanding
portfolio, with higher levels likely at the end of the first and third quarters
of each year, due to the semi-annual payment characteristics of most Farmer Mac
loans. Consistent with that pattern, delinquencies at the end of the fourth
quarter were lower than they were as of September 30, 2002 in both dollar and
percentage terms. On a year-to-year basis, the absolute dollar amount of
delinquencies increased and the percentage of delinquencies decreased, as
expected. These trends resulted from the continued maturation of a significant
segment of Farmer Mac's portfolio into its expected peak default years and the
growth of the loan portfolio.
"While Farmer Mac's financial condition and business prospects are solid,
current circumstances make it too early to comment on the market analyst's
current projection for its financial performance in 2003."
Net Interest Income
Net interest income was $8.7 million for fourth quarter 2002 and $35.0
million for the year, compared to $7.2 million and $26.9 million for the same
periods in 2001. The net interest yield, which does not include guarantee fees
for loans purchased prior to April 1, 2001 (the effective date of Statement of
Financial Accounting Standards No. 140, Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities ("FAS 140")), was 88
basis points for fourth quarter 2002, compared to 88 basis points for fourth
quarter 2001. The net interest yields for fourth quarter 2002 and fourth quarter
2001 included the benefits of yield maintenance payments of 5 basis points and 4
basis points, respectively. For 2002, the effects on net income and diluted
earnings per share resulting from yield maintenance payments were $2.1 million
and $0.17, respectively. The effect of FAS 140 for fourth quarter 2002 was a
reclassification of approximately $1.1 million (11 basis points) of guarantee
fee income as interest income compared to an immaterial amount for fourth
quarter 2001. Adjusted to eliminate the effects of both yield maintenance and
the effects of FAS 140, the net interest yields for fourth quarter 2002 and the
year ended December 31, 2002 were 72 basis points and 78 basis points,
respectively. Those figures compare to 84 basis points and 80 basis points for
fourth quarter 2001 and the year ended December 31, 2001, respectively.
Guarantee Fees
Guarantee fees, which include commitment fees, were $5.1 million for fourth
quarter 2002 and $19.3 million for the year - both new records. This compares to
$4.5 million and $15.8 million for fourth quarter 2001 and the year ended
December 31, 2001, respectively. The relative increase in guarantee fees
reflects an increase in the average balance of outstanding guarantees and
commitments. For fourth quarter 2002, $1.1 million of guarantee fee income was
reclassified as interest income in accordance with FAS 140. That amount compares
to an immaterial amount for fourth quarter 2001.
Operating Expenses
For presentation in the Consolidated Statements of Operations beginning
with fourth quarter 2002, Farmer Mac has segregated its Provision for Losses
into two components:
o Provision for Loan Losses, which records probable losses on loans held for
investment and is presented as a reduction to Net Interest Income; and
o Provision for Losses, which records probable losses on loans underlying
Farmer Mac I Guaranteed Securities and LTSPCs and is presented as a
component of Operating Expenses.
Prior period information has been reclassified to conform to the current period
presentation. Operating expenses for fourth quarter 2002 totaled $4.2 million
compared to $4.1 million for fourth quarter 2001. Although quarterly operating
expenses are in line with fourth quarter 2001, they reflect a decrease from
third quarter 2002 operating expenses of $5.6 million. The decrease in operating
expenses in fourth quarter 2002, compared to third quarter 2002, primarily
reflects a decrease in legal and consulting fees as the adverse publicity about
Farmer Mac diminished more quickly than anticipated; the actual costs incurred
for associated legal and consulting fees for third quarter 2002 were
approximately $300,000 less than expected. Nevertheless, events associated with
the publicity previously noted could cause Farmer Mac to incur higher than
expected legal and consulting fees in future quarters. Management expects
general and administrative expenses per quarter in 2003 to range between $1.0
million and $1.2 million. The net change in operating expenses in fourth quarter
2002, compared to fourth quarter 2001, reflects an increase in regulatory fees
partially offset by decreases in compensation and general and administrative
costs. The Farm Credit Administration ("FCA"), the federal agency with direct
regulatory authority over Farmer Mac, has advised Farmer Mac that its regulatory
assessment for October 1, 2002 through September 30, 2003 will be an estimated
$1.4 million, an increase from the $0.7 million estimate for October 1, 2001
through September 30, 2002, during which actual costs incurred were more than
$0.9 million. Operating expenses as a percentage of total revenues, excluding
gains and losses on financial derivatives and trading assets, were 31 percent
for fourth quarter 2002, compared to 37 percent for third quarter 2002 and 36
percent for fourth quarter 2001.
Provision for Income Taxes
The provision for income taxes totaled $1.9 million for fourth quarter 2002
and $9.3 million for the year, compared to $2.3 million and $8.4 million for the
same periods in 2001. The decrease in Farmer Mac's effective tax rate from 33.1
percent in 2001 to 29.9 percent in 2002 reflects the effects of certain
tax-advantaged investment securities.
Extraordinary Item
During fourth quarter 2002, Farmer Mac recognized a net after-tax
extraordinary loss of $1.3 million resulting from the repurchase of $41.0
million of outstanding Farmer Mac debt. As with previous repurchases during
2002, the debt securities repurchased were replaced with new funding to the same
maturity dates at more attractive interest rates. This preserves Farmer Mac's
asset-liability match and reduces future interest expense. The combined net
after-tax extraordinary gain resulting from the repurchase of outstanding Farmer
Mac debt in 2002 was $0.9 million.
Capital
Farmer Mac's core capital totaled $184.0 million as of December 31, 2002,
compared to $126.0 million as of December 31, 2001 and $181.1 million as of
September 30, 2002. The regulatory methodology for calculating core capital
excludes the effects of Statement of Financial Accounting Standards No. 115,
Accounting for Certain Investments in Debt and Equity Securities ("FAS 115") and
FAS 133, which are reported on Farmer Mac's balance sheet as accumulated other
comprehensive income. Farmer Mac's core capital as of December 31, 2002 exceeded
the statutory minimum capital requirement of $137.1 million by $46.9 million.
The Corporation is required to meet the capital standards of a risk-based
capital stress test promulgated by the FCA ("RBC test"). That test determines
the amount of regulatory capital (core capital plus allowances for losses)
Farmer Mac would need to maintain positive capital during a ten-year period
while incurring credit losses equivalent to the highest historical two-year
agricultural mortgage loss rates and an interest rate shock at the lesser of 600
basis points or 50 percent of the ten-year U.S. Treasury rate. The RBC test then
adds to the resulting capital requirement an additional 30 percent for
management and operational risk.
As of December 31, 2002, the RBC test generated a regulatory capital
requirement of $73.4 million. Farmer Mac's regulatory capital of $204.0 million
exceeded that amount by approximately $130.6 million. The $14.0 million increase
in the risk-based capital requirement from September 30, 2002 ($59.4 million) to
December 31, 2002 was a result of the growth of Farmer Mac's loan portfolio. The
Corporation is required to hold capital at the higher of the statutory minimum
capital requirement or the amount required by the RBC test.
Average return on common equity excluding extraordinary items was 10.6
percent for fourth quarter 2002, compared to 16.6 percent for fourth quarter
2001. The effects of FAS 133 and FAS 115 reduced the average return on common
equity by 5.4 percent for fourth quarter 2002 and 0.5 percent for fourth quarter
2001.
Credit
As of December 31, 2002, Farmer Mac I loans purchased, guaranteed or
committed to be purchased under its LTSPC Program since the enactment in 1996 of
changes to Farmer Mac's statutory charter ("post-1996 Act loans"), both on- and
off-balance sheet, that were 90 days or more past due, in foreclosure, in
bankruptcy (including loans performing under the original terms of the loan or
an approved bankruptcy plan) and REO ("real estate owned") represented 1.54
percent of the current outstanding principal balance of all post-1996 Act loans
and totaled $74.1 million (including $12.9 million of loans performing under the
original terms of the loan or an approved bankruptcy plan). This compares to
2.03 percent ($91.3 million, including $6.7 million of loans performing under
the original terms of the loan or an approved bankruptcy plan) as of September
30, 2002 and 1.70 percent ($59.8 million, including $1.9 million of loans
performing under the original terms of the loan or an approved bankruptcy plan)
as of December 31, 2001. The year-to-year increase in dollars of delinquencies
reflects the continued maturation of a significant segment of Farmer Mac's
portfolio into its expected peak default years. The year-to-year decline in the
ratio of delinquencies to outstanding guarantees and commitments reflects the
growth of the portfolio.
Farmer Mac conducts loan-by-loan analyses of delinquencies to update or
discount the value of the collateral supporting each individual loan relative to
the total amount due, including principal, interest and expenses. In the event
that the revised collateral value does not support the total amount due, Farmer
Mac allocates a specific allowance to the loan. Farmer Mac charges off losses
against its allowance for losses when management believes a loss has occurred,
but no later than when the Corporation takes possession of the property. As of
December 31, 2002, Farmer Mac's loan-by-loan analysis of the revised collateral
values for its $74.1 million of delinquent loans indicated that $62.0 million of
the delinquent loans were adequately collateralized, while $12.1 million had
insufficient collateral to cover principal, interest and expenses. Farmer Mac
has specifically allocated $2.0 million of the allowance to those
under-collateralized loans. As of December 31, 2002, after the allocation of
specific allowances for losses to those under-collateralized loans, Farmer Mac
had additional general allowances for losses of $18.0 million, bringing total
allowances to $20.0 million.
Based on Farmer Mac's loan-by-loan analyses, loan collection experience, and
continuing provisions for the allowance for losses, Farmer Mac believes that
ongoing losses will be covered adequately by the allowance for losses. During
fourth quarter 2002, Farmer Mac charged off $1.3 million in losses against the
allowance for losses. In certain collateral liquidation scenarios, Farmer Mac
may recover amounts previously charged off or incur additional losses, if
liquidation proceeds vary from previous estimates. Farmer Mac's total provision
for losses was $2.1 million for fourth quarter 2002, compared to $2.0 million
for third quarter 2002 and $2.0 million for fourth quarter 2001. As of December
31, 2002, Farmer Mac's allowance for losses totaled $20.0 million, or 42 basis
points on the outstanding post-1996 Act loans, compared to $19.1 million (42
basis points) as of September 30, 2002 and $15.9 million (45 basis points) as of
December 31, 2001.
Interest Rate Risk
Farmer Mac measures its interest rate risk through several tests, including
the sensitivity of Market Value of Equity ("MVE") and Net Interest Income
("NII") to uniform or "parallel" yield curve shocks. As of December 31, 2002, a
parallel increase of 100 basis points across the entire U.S. Treasury yield
curve would have increased MVE by 5.9 percent, while a parallel decrease of 100
basis points would have decreased MVE by 7.1 percent. As of December 31, 2002, a
parallel increase of 100 basis points would have increased Farmer Mac's NII, a
shorter-term measure of interest rate risk, by 6.8 percent, while a parallel
decrease of 100 basis points would have decreased NII by 6.7 percent. Farmer Mac
also measures the sensitivity of both MVE and NII to a variety of non-parallel
interest rate shocks. Farmer Mac's MVE and NII were less sensitive to those
non-parallel shocks than to parallel shocks. Finally, Farmer Mac's duration gap,
a static measure of interest rate risk, was minus 3.6 months as of December 31,
2002.
The economic effects of derivatives, including interest rate swaps, are
included in the MVE, NII and duration gap analyses. Farmer Mac's principal use
of derivatives is as an alternative to traditional debt issuance in which it
enters into contracts to pay fixed rates of interest and receive floating rates
of interest from counterparties. These "floating-to-fixed interest rate swaps"
are used to adjust the characteristics of Farmer Mac's short-term debt to match
more closely the cash flow and duration characteristics of its longer-term
mortgage assets, thereby reducing interest rate risk, and also to derive an
overall lower effective fixed-rate cost of borrowing than would otherwise be
available in the conventional debt market. As of December 31, 2002, Farmer Mac
had $714.1 million notional amount of floating-to-fixed interest rate swaps for
terms ranging from 2 to 15 years. In addition, Farmer Mac enters into interest
rate swaps to adjust the characteristics of its assets to match more closely the
cash flow and duration characteristics of its shorter-term financing thereby
reducing interest rate risk. As of December 31, 2002, Farmer Mac had $369.8
million of such interest rate swaps.
Farmer Mac uses derivatives for hedging purposes, not for speculative
purposes. All of Farmer Mac's derivative transactions are conducted through
standard, collateralized agreements that limit Farmer Mac's potential credit
exposure to any counterparty. As of December 31, 2002, Farmer Mac had no
uncollateralized net exposure to any counterparty.
Derivatives and Financial Statement Effects of FAS 133
Farmer Mac accounts for its derivatives under FAS 133, which became
effective January 1, 2001. The implementation of FAS 133 resulted in significant
accounting changes to both the Consolidated Statements of Operations and Balance
Sheets. During fourth quarter 2002, the reduction in net after-tax income
resulting from FAS 133 was $1.8 million and the net after-tax decrease in
accumulated other comprehensive income was $16.9 million. For fourth quarter
2001, the increases in net after-tax income and accumulated other comprehensive
income resulting from FAS 133 were $0.2 million and $7.6 million, respectively.
Accumulated other comprehensive income is not a component of Farmer Mac's
regulatory core capital.
Forward-Looking Statements
In addition to historical information, this release includes
forward-looking statements that reflect management's current expectations for
Farmer Mac's future financial results, business prospects and business
developments. Management's expectations for Farmer Mac's future necessarily
involve assumptions, estimates and the evaluation of risks and uncertainties.
Various factors could cause actual events or results to differ materially from
those expectations. Some of the important factors that could cause Farmer Mac's
actual results to differ materially from management's expectations include
uncertainties regarding: (1) the rate and direction of the development of the
secondary market for agricultural mortgage loans; (2) the effect on the
agricultural economy resulting from low commodity prices, weak demand for U.S.
agricultural products and crop damage from natural disasters; (3) the effect on
the agricultural economy of federal assistance for agriculture provided for in
the Farm Bill enacted last Spring; (4) the possible effect of the risk-based
capital requirement which could, under certain circumstances, be in excess of
the statutory minimum capital level; (5) the possible establishment of
additional legislative or regulatory restrictions on Farmer Mac; (6) the outcome
of the pending analysis of Farmer Mac by the General Accounting Office; and (7)
Farmer Mac's continuing access to the debt markets at favorable rates and terms.
Other factors are discussed in Farmer Mac's Annual Report on Form 10-K for the
year ended December 31, 2001, as filed with the Securities and Exchange
Commission ("SEC") on March 27, 2002, and Farmer Mac's Quarterly Report on Form
10-Q for the quarter ended September 30, 2002, as filed with the SEC on November
14, 2002. The forward-looking statements contained herein represent management's
expectations as of the date of this release. Farmer Mac undertakes no obligation
to release publicly the results of any revisions to the forward-looking
statements included herein to reflect events or circumstances after today, or to
reflect the occurrence of unanticipated events, except as otherwise mandated by
the SEC.
Farmer Mac is a stockholder-owned instrumentality of the United States chartered
by Congress to establish a secondary market for agricultural real estate and
rural housing mortgage loans and to facilitate capital market funding for USDA
guaranteed farm program and rural development loans. Farmer Mac's Class C and
Class A common stocks are listed on the New York Stock Exchange under the
symbols AGM and AGMA, respectively. Additional information about Farmer Mac (as
well as the Form 10-K and Form 10-Q referenced above) is available on Farmer
Mac's website at www.farmermac.com. The conference call to discuss Farmer Mac's
fourth quarter 2002 earnings and this press release will be webcast on Farmer
Mac's website beginning at 11:00 a.m. eastern time, Friday, January 24, 2003,
and an audio recording of that call will be available for two weeks on Farmer
Mac's website after the call is concluded.
Federal Agricultural Mortgage Corporation
Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2002 2001
--------------------- -------------------
Assets:
Cash and cash equivalents $ 723,800 $ 437,831
Investment securities 830,409 1,007,954
Farmer Mac guaranteed securities 1,608,507 1,690,049
Loans 966,123 199,682
Allowance for loan losses (2,662) (1,352)
Real estate owned (net of valuation allowance 5,031 2,457
of $0.6 million and zero)
Financial derivatives - 15
Interest receivable 65,276 56,253
Guarantee fees receivable 5,938 6,004
Prepaid expenses and other assets 20,176 16,963
--------------------- -------------------
Total assets $ 4,222,598 $ 3,415,856
--------------------- -------------------
Liabilities and stockholders' equity:
Notes payable:
Due within one year $ 2,860,746 $ 2,233,267
Due after one year 1,020,318 968,463
--------------------- -------------------
Total notes payable 3,881,064 3,201,730
Financial derivatives 93,997 20,762
Accrued interest payable 29,756 26,358
Accounts payable and accrued expenses 17,453 18,037
Reserve for losses 16,757 14,532
--------------------- -------------------
Total liabilities 4,039,027 3,281,419
Preferred stock 35,000 -
Common stock at par 11,639 11,564
Additional paid-in capital 82,527 80,960
Accumulated other comprehensive (loss)/income (407) 8,395
Retained earnings 54,812 33,518
--------------------- -------------------
Stockholders' equity 183,571 134,437
--------------------- -------------------
Total liabilities and stockholders' equity $ 4,222,598 $ 3,415,856
--------------------- -------------------
Federal Agricultural Mortgage Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
----------------------------------- --------------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2002 2001 2002 2001
----------------- ----------------- ---------------- ---------------
Interest income:
Investments and cash equivalents $ 9,682 $ 11,494 $ 40,799 $ 65,334
Farmer Mac guaranteed securities 21,383 25,234 89,736 110,169
Loans 12,578 2,525 39,505 5,710
----------------- ----------------- ---------------- ----------------
Total interest income 43,643 39,253 170,040 181,213
Interest expense 34,914 32,056 135,014 154,274
----------------- ----------------- ---------------- ----------------
Net interest income 8,729 7,197 35,026 26,939
Provision for loan losses 389 300 1,340 600
----------------- ----------------- ---------------- ----------------
Net interest income after provision for loan losses 8,340 6,897 33,686 26,339
Gains/(Losses) on financial derivatives
and trading assets (2,903) 317 (4,359) (726)
Other income:
Guarantee fees 5,114 4,534 19,277 15,807
Miscellaneous 114 140 1,332 560
----------------- ----------------- ---------------- ----------------
Total other income 5,228 4,674 20,609 16,367
----------------- ----------------- ---------------- ----------------
Total revenues 10,665 11,888 49,936 41,980
Expenses:
Compensation and employee benefits 1,238 1,454 5,142 5,601
Provision for losses 1,759 1,686 6,883 6,125
Regulatory fees 383 23 1,172 735
General and administrative 781 957 5,547 4,094
----------------- ----------------- ---------------- ----------------
Total operating expenses 4,161 4,120 18,744 16,555
----------------- ----------------- ---------------- ----------------
Income before income taxes 6,504 7,768 31,192 25,425
Income tax provision 1,854 2,287 9,330 8,419
----------------- ----------------- ---------------- ----------------
Net income before cumulative effect 4,650 5,481 21,862 17,006
of change in accounting principles and
extraordinary item
Cumulative effect of change - - - (726)
in accounting principles, net of tax
Extraordinary gain/(loss), net of tax (1,313) - 889 -
----------------- ----------------- ---------------- ----------------
Net income 3,337 5,481 22,751 16,280
Preferred stock dividends 560 - 1,456 -
----------------- ----------------- ---------------- ----------------
Net income available to common stockholders $ 2,777 $ 5,481 $ 21,295 $ 16,280
----------------- ----------------- ---------------- ----------------
Earnings per share:
Basic earnings per share $ 0.24 $ 0.48 $ 1.83 $ 1.44
Diluted earnings per share $ 0.23 $ 0.46 $ 1.77 $ 1.38
Earnings per share before cumulative
effect of change in accounting principles
and extraordinary item:
Basic earnings per share $ 0.35 $ 0.48 $ 1.76 $ 1.50
Diluted earnings per share $ 0.34 $ 0.46 $ 1.69 $ 1.45
Federal Agricultural Mortgage Corporation
Supplemental Information
The following tables present quarterly and annual information regarding
loan purchases, guarantees and LTSPCs, outstanding guarantees and LTSPCs and
delinquencies.
Farmer Mac Purchases, Guarantees and LTSPCs
-------------------------------------------------------------------------------------------
Farmer Mac I
------------------------------
Loans & AMBS LTSPC Farmer Mac II Total
------------------------------ ----------------- ---------------
(in thousands)
For the quarter ended:
December 31, 2002 $ 62,841 $ 395,597 $ 38,714 $ 497,152
September 30, 2002 58,475 140,157 37,374 236,006
June 30, 2002 551,690 280,904 57,769 890,363
March 31, 2002 74,875 338,821 39,154 452,850
December 31, 2001 62,953 237,292 51,056 351,301
September 30, 2001 75,135 246,472 42,396 364,003
June 30, 2001 85,439 499,508 57,012 641,959
March 31, 2001 48,600 49,695 47,707 146,002
For the year ended:
December 31, 2002 747,881 1,155,479 173,011 2,076,371
December 31, 2001 272,127 1,032,967 198,171 1,503,265
Farmer Mac Outstanding Guarantees and LTSPCs (1)
----------------------------------------------------------------------------------------------------------
Farmer Mac I
---------------------------------------------
Post-1996 Act
------------------------------
Loans & AMBS(2) LTSPC Pre-1996 Act Farmer Mac II Total
------------------------------ -------------- ---------------- ---------------
(in thousands)
As of:
December 31, 2002 $2,168,994 $2,681,240 $ 31,960 $ 645,790 $ 5,527,984
September 30, 2002 2,127,460 2,407,469 35,297 630,452 5,200,678
June 30, 2002 2,180,948 2,336,886 37,873 617,503 5,173,210
March 31, 2002 1,655,485 2,126,485 41,414 592,836 4,416,220
December 31, 2001 1,658,716 1,884,260 48,979 595,156 4,187,111
September 30, 2001 1,605,160 1,731,861 58,813 608,944 4,004,778
June 30, 2001 1,572,800 1,537,061 65,709 579,251 3,754,821
March 31, 2001 1,466,443 1,083,528 72,646 549,003 3,171,620
Outstanding Balance of On-Balance Sheet Farmer Mac I and II Loans and Guaranteed Securities
--------------------------------------------------------------------------------------------------------------------
5-to-10-Year 1-Month-to-3-Year
Fixed Rate ARMs & Resets ARMs Total
-------------------- ------------------ ---------------------- --------------------
(in thousands)
As of:
December 31, 2002 $ 1,003,434 $ 981,548 $ 494,713 $ 2,479,695
September 30, 2002 1,000,518 934,435 498,815 2,433,768
June 30, 2002 1,016,997 892,737 516,892 2,426,626
March 31, 2002 751,222 797,780 350,482 1,899,484
December 31, 2001 764,115 790,948 302,169 1,857,232
Post-1996 Act Loan Delinquencies (3)
------------------------------------------------------------------------------
Outstanding
Guarantees and
Delinquencies LTSPCs Percentage
------------------ ------------------ -------------
(dollars in thousands)
As of:
December 31, 2002 $ 74,141 $ 4,821,634 1.54%
September 30, 2002 91,286 4,506,330 2.03%
June 30, 2002 65,196 4,489,735 1.45%
March 31, 2002 87,097 3,754,171 2.32%
December 31, 2001 59,807 3,518,476 1.70%
September 30, 2001 71,686 3,318,796 2.16%
June 30, 2001 53,139 3,089,460 1.72%
March 31, 2001 67,134 2,562,374 2.62%
Distribution of Post-1996 Act Loan Delinquencies
by Original LTV Ratio
as of December 31, 2002
---------------------------------------------------------------
(dollars in thousands)
Original LTV Ratio Delinquencies Percentage
----------------------- ----------------- ----------------
0.00% to 40.00% $ 2,740 4%
40.01% to 50.00% 14,734 20%
50.01% to 60.00% 28,267 38%
60.01% to 70.00% 22,967 31%
70.01% to 80.00% 3,543 5%
80.01% + 1,890 2%
----------------- ----------------
Total $ 74,141 100%
----------------- ----------------
Distribution of Post-1996 Act Loan Delinquencies
by Loan Origination Date
as of December 31, 2002
----------------------------------------------------------------------------
(dollars in thousands)
Loan Outstanding
Origination Guarantees Delinquency
Date Delinquencies and LTSPCs Rate
---------------- ----------------- -------------------- ----------------
Before 1994 $ 4,525 $ 696,624 0.65%
1994 - 171,407 0.00%
1995 3,098 155,668 1.99%
1996 13,002 355,671 3.66%
1997 16,477 386,658 4.26%
1998 14,391 707,075 2.04%
1999 12,770 744,708 1.71%
2000 6,077 437,433 1.39%
2001 3,597 626,647 0.57%
2002 204 539,743 0.04%
----------------- -------------------- ----------------
Total $ 74,141 $4,821,634 1.54%
----------------- -------------------- ----------------
(1) Pre-1996 Act loans back securities that are supported by unguaranteed
subordinated interests representing approximately 10 percent of the balance
of the loans. Farmer Mac assumes 100 percent of the credit risk on
post-1996 Act loans. Farmer Mac II loans are guaranteed by the U.S.
Department of Agriculture.
(2) Periods prior to June 30, 2001 include only AMBS.
(3) Includes Farmer Mac I loans 90 days or more past due, in foreclosure, in
bankruptcy (including loans performing under the original terms of the loan
or an approved bankruptcy plan) and REO.