Annual Report 2018 - Page 25

Participations Purchased and Sold (in thousands) As of December 31, 2018 Real estate mortgage Production and intermediate-term Agribusiness Other Total As of December 31, 2017 Real estate mortgage Production and intermediate-term Agribusiness Other Total As of December 31, 2016 Real estate mortgage Production and intermediate-term Agribusiness Other Total Other Farm Credit Institutions Participations Purchased Sold AgriBank Participations Sold Non-Farm Credit Institutions Participations Purchased Total Participations Purchased Sold ($87,912) -- (282) -- $166,039 6,878 696,932 222,362 ($17,972) (9,901) (81,166) -- $31,897 -- -- -- $197,936 6,878 696,932 222,362 ($105,884) (9,901) (81,448) -- ($88,194) $1,092,211 ($109,039) $31,897 $1,124,108 ($197,233) Other Farm Credit Institutions Participations Purchased Sold AgriBank Participations Sold Non-Farm Credit Institutions Participations Purchased Total Participations Purchased Sold ($107,915) -- (229) -- $82,612 88,426 659,992 170,445 ($19,906) (7,487) (96,621) -- $21,243 -- -- -- $103,855 88,426 659,992 170,445 ($127,821) (7,487) (96,850) -- ($108,144) $1,001,475 ($124,014) $21,243 $1,022,718 ($232,158) Other Farm Credit Institutions Participations Purchased Sold AgriBank Participations Sold Non-Farm Credit Institutions Participations Purchased Total Participations Purchased Sold ($130,962) -- (285) -- $113,329 70,858 586,816 169,331 ($14,497) (9,334) (60,426) -- $17,257 -- 317 -- $130,586 70,858 587,133 169,331 ($145,459) (9,334) (60,711) -- ($131,247) $940,334 ($84,257) $17,574 $957,908 ($215,504) Credit Quality and Delinquency We utilize the FCA Uniform Classification System to categorize loans into five credit quality categories. The categories are:      Acceptable – loans are non-criticized loans representing the highest quality. They are expected to be fully collectible. This category is further differentiated into various probabilities of default. Other assets especially mentioned (Special Mention) – loans are currently collectible but exhibit some potential weakness. These loans involve increased credit risk, but not to the point of justifying a substandard classification. Substandard – loans exhibit some serious weakness in repayment capacity, equity, and/or collateral pledged on the loan. Doubtful – loans exhibit similar weaknesses as substandard loans. Doubtful loans have additional weaknesses in existing factors, conditions, and values that make collection in full highly questionable. Loss – loans are considered uncollectible. We had no loans categorized as loss at December 31, 2018, 2017, or 2016. Credit Quality of Loans (dollars in thousands) As of December 31, 2018 Real estate mortgage Production and intermediate-term Agribusiness Other Total As of December 31, 2017 Real estate mortgage Production and intermediate-term Agribusiness Other Total Acceptable Amount % Special Mention Amount % Substandard/ Doubtful Amount % Total Amount % $2,286,684 610,546 805,250 236,186 96.5% 89.2% 97.7% 97.7% $45,429 43,483 2,596 5,630 1.9% 6.4% 0.3% 2.3% $38,176 30,038 16,837 105 1.6% 4.4% 2.0% 0.0% $2,370,289 684,067 824,683 241,921 100.0% 100.0% 100.0% 100.0% $3,938,666 95.5% $97,138 2.4% $85,156 2.1% $4,120,960 100.0% % Total Amount % Acceptable Amount % Special Mention Amount % Substandard/ Doubtful Amount $2,051,451 669,611 742,748 187,570 95.4% 87.3% 98.6% 99.9% $41,025 63,232 3,901 -- 1.9% 8.2% 0.5% 0.0% $58,691 34,637 6,910 112 2.7% 4.5% 0.9% 0.1% $2,151,167 767,480 753,559 187,682 100.0% 100.0% 100.0% 100.0% $3,651,380 94.6% $108,158 2.8% $100,350 2.6% $3,859,888 100.0% 22