Our investment securities portfolio consists of debt securities classified as trading and equity securities with readily determinable fair values. We therefore record changes in the fair value of our debt and equity securities in earnings and report these unrealized changes together with realized gains and losses from the sale of securities as a component of non-interest income in our consolidated statements of operations.

The following table presents the composition of our investment debt securities portfolio and the fair value as of August 31, 2026 and May 31, 2026, reflecting the continued wind-down of this portfolio as we reduce our holdings over time.


(Dollars in thousands)	August 31, 2026		May 31, 2026
Debt securities, at fair value:



Corporate debt securities	$	27,322	$	30,765

Commercial agency mortgage-backed securities (“MBS”)(1)	345		379





Total debt securities trading, at fair value	$	27,667	$	31,144

(1)Consists of securities backed by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”).

We recognized net unrealized gains on our debt securities of less than $1 million and $1 million for Q1 FY2027 and Q1 FY2026, respectively.

We sold $1 million in principal amount of debt security during Q1 FY2027, and realized an immaterial amount of gains on the sale of the security during the period. We did not sell any debt securities during Q1 FY2026; therefore, no realized gains or losses were recorded during the period for the sale of debt securities.

Our equity securities consisted of Farmer Mac Class A common stock recorded at fair value of $13 million and $11 million as of August 31, 2026 and May 31, 2026, respectively.