Document and Entity Information
Document and Entity Information | 3 Months Ended |
Aug. 31, 2018shares | |
Document and Entity Information | |
Entity Registrant Name | NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/ |
Entity Central Index Key | 70,502 |
Document Type | 10-Q |
Document Period End Date | Aug. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --05-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Document Fiscal Year Focus | 2,019 |
Document Fiscal Period Focus | Q1 |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | ||
Income Statement [Abstract] | |||
Interest income | $ 278,491 | $ 265,915 | |
Interest expense | [1],[2] | (210,231) | (192,731) |
Net interest income | 68,260 | 73,184 | |
Benefit for loan losses | 109 | 298 | |
Net interest income after benefit for loan losses | 68,369 | 73,482 | |
Non-interest income: | |||
Fee and other income | 3,185 | 3,945 | |
Derivative gains (losses) | 7,183 | (46,198) | |
Results of operations of foreclosed assets | 0 | (24) | |
Total non-interest income | 10,368 | (42,277) | |
Non-interest expense: | |||
Salaries and employee benefits | (12,682) | (11,823) | |
Other general and administrative expenses | (10,523) | (9,813) | |
Losses on early extinguishment of debt | (7,100) | 0 | |
Other non-interest expense | (394) | (522) | |
Total non-interest expense | (30,699) | (22,158) | |
Income before income taxes | 48,038 | 9,047 | |
Income tax expense | (60) | (32) | |
Net income | 47,978 | 9,015 | |
Less: Net (income) loss attributable to noncontrolling interests | (13) | 118 | |
Net income attributable to CFC | $ 47,965 | $ 9,133 | |
[1] | Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. | ||
[2] | ncludes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 47,978 | $ 9,015 |
Other comprehensive income (loss): | ||
Unrealized losses on equity securities | 0 | (1,151) |
Unrealized gains on cash flow hedge | 24 | 0 |
Reclassification of derivative gains to net income | (119) | (192) |
Defined benefit plan adjustments | 131 | 127 |
Other comprehensive income (loss) | 36 | (1,216) |
Total comprehensive income | 48,014 | 7,799 |
Less: Total comprehensive (income) loss attributable to noncontrolling interests | (13) | 118 |
Total comprehensive income attributable to CFC | $ 48,001 | $ 7,917 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 265,905 | $ 230,999 |
Restricted cash | 8,597 | 7,825 |
Total cash, cash equivalents and restricted cash | 274,502 | 238,824 |
Time deposits | 0 | 100,000 |
Investment securities: | ||
Equity securities | 88,606 | 89,332 |
Debt securities held to maturity, at amortized cost | 553,754 | 520,519 |
Total investment securities | 642,360 | 609,851 |
Loans to members | 25,182,654 | 25,178,608 |
Less: Allowance for loan losses | (18,692) | (18,801) |
Loans to members, net | 25,163,962 | 25,159,807 |
Accrued interest receivable | 124,343 | 127,442 |
Other receivables | 38,299 | 39,220 |
Fixed assets, net | 117,549 | 116,031 |
Derivative assets | 256,186 | 244,526 |
Other assets | 59,006 | 54,503 |
Total assets | 26,676,207 | 26,690,204 |
Liabilities: | ||
Accrued interest payable | 205,898 | 149,284 |
Debt outstanding: | ||
Short-term borrowings | 3,793,136 | 3,795,910 |
Long-term debt | 18,674,932 | 18,714,960 |
Subordinated deferrable debt | 742,445 | 742,410 |
Members’ subordinated certificates: | ||
Membership subordinated certificates | 630,448 | 630,448 |
Loan and guarantee subordinated certificates | 526,479 | 528,386 |
Member capital securities | 221,170 | 221,148 |
Total members’ subordinated certificates | 1,378,097 | 1,379,982 |
Total debt outstanding | 24,588,610 | 24,633,262 |
Deferred income | 63,711 | 65,922 |
Derivative liabilities | 267,675 | 275,932 |
Other liabilities | 43,737 | 59,951 |
Total liabilities | 25,169,631 | 25,184,351 |
CFC equity: | ||
Retained equity | 1,474,705 | 1,465,789 |
Accumulated other comprehensive income (loss) | (214) | 8,544 |
Total CFC equity | 1,474,491 | 1,474,333 |
Noncontrolling interests | 32,085 | 31,520 |
Total equity | 1,506,576 | 1,505,853 |
Total liabilities and equity | $ 26,676,207 | $ 26,690,204 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Non-controlling Interests | Total CFC Equity | Accumulated Other Comprehensive Income (Loss) | CFC Retained Equity | Unallocated Net Income (Loss) | Members’ Capital Reserve | Patronage Capital Allocated | Membership Fees and Educational Fund |
Balance at May. 31, 2017 | $ 1,098,805 | $ 28,852 | $ 1,069,953 | $ 13,175 | $ 1,056,778 | $ (338,128) | $ 630,305 | $ 761,701 | $ 2,900 |
Net income | 9,015 | (118) | 9,133 | 9,133 | 9,133 | ||||
Other comprehensive income (loss) | (1,216) | (1,216) | (1,216) | ||||||
Patronage capital retirement | (45,220) | (45,220) | (45,220) | 0 | (45,220) | ||||
Other | 196 | 552 | (356) | (356) | (356) | ||||
Balance at Aug. 31, 2017 | 1,061,580 | 29,286 | 1,032,294 | 11,959 | 1,020,335 | (328,995) | 630,305 | 716,481 | 2,544 |
Cumulative effect from adoption of new accounting standard | (8,794) | 8,794 | 8,794 | ||||||
Balance as of June 1, 2018 | 1,505,853 | 31,520 | 1,474,333 | (250) | 1,474,583 | (27,640) | 687,785 | 811,493 | 2,945 |
Balance at May. 31, 2018 | 1,505,853 | 31,520 | 1,474,333 | 8,544 | 1,465,789 | (36,434) | 687,785 | 811,493 | 2,945 |
Net income | 47,978 | 13 | 47,965 | 47,965 | 47,965 | ||||
Other comprehensive income (loss) | 36 | 36 | 36 | 0 | 0 | ||||
Patronage capital retirement | (47,507) | (47,507) | (47,507) | (47,507) | |||||
Other | 216 | 552 | (336) | (336) | (336) | ||||
Balance at Aug. 31, 2018 | $ 1,506,576 | $ 32,085 | $ 1,474,491 | $ (214) | $ 1,474,705 | $ 20,325 | $ 687,785 | $ 763,986 | $ 2,609 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 47,978 | $ 9,015 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred loan fees | (2,609) | (3,229) |
Amortization of debt issuance costs and deferred charges | 3,003 | 2,478 |
Amortization of discount on long-term debt | 2,802 | 2,473 |
Amortization of issuance costs for bank revolving lines of credit | 1,328 | 1,317 |
Depreciation and amortization | 2,230 | 1,862 |
Benefit for loan losses | (109) | (298) |
Loss on early extinguishment of debt | 7,100 | 0 |
Derivative forward value gains | (20,012) | 25,976 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | 3,099 | (422) |
Accrued interest payable | 56,614 | 57,996 |
Deferred income | 398 | (57) |
Other | (20,092) | (9,156) |
Net cash provided by operating activities | 81,730 | 87,955 |
Cash flows from investing activities: | ||
Advances on loans, net | (3,942) | (274,696) |
Investment in fixed assets | (4,253) | (3,410) |
Net proceeds from time deposits | 100,000 | 100,000 |
Purchases of held-to-maturity investments | (40,684) | 0 |
Proceeds from maturities of held-to-maturity investments | 7,339 | 0 |
Net cash provided by (used in) investing activities | 58,460 | (178,106) |
Cash flows from financing activities: | ||
Proceeds from (repayments of) short-term borrowings, net | 29,246 | (301,261) |
Proceeds from short-term borrowings with original maturity greater than 90 days | 296,242 | 273,436 |
Repayments of short term-debt with original maturity greater than 90 days | (328,262) | (240,415) |
Proceeds from issuance of long-term debt, net of discount and issuance costs | 349,509 | 580,008 |
Payments for retirement of long-term debt | (395,284) | (111,700) |
Payments made on early extinguishment of debt | (7,100) | 0 |
Proceeds from issuance of members’ subordinated certificates | 471 | 1,627 |
Payments for retirement of members’ subordinated certificates | (2,378) | (2,445) |
Payments for retirement of patronage capital | (46,956) | (4,859) |
Net cash (used in) provided by financing activities | (104,512) | 194,391 |
Net increase in cash, cash equivalents and restricted cash | 35,678 | 104,240 |
Beginning cash, cash equivalents and restricted cash | 238,824 | 188,421 |
Ending cash, cash equivalents and restricted cash | 274,502 | 292,661 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 148,063 | 129,785 |
Cash paid for income taxes | $ 0 | $ 25 |
Summary of Significant Accounti
Summary of Significant Accounting Policies - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company National Rural Utilities Cooperative Finance Corporation (“CFC”) is a member-owned cooperative association incorporated under the laws of the District of Columbia in April 1969. CFC’s principal purpose is to provide its members with financing to supplement the loan programs of the Rural Utilities Service (“RUS”) of the United States Department of Agriculture (“USDA”). CFC makes loans to its rural electric members so they can acquire, construct and operate electric distribution, generation and transmission (“power supply”) systems and related facilities. CFC also provides its members with credit enhancements in the form of letters of credit and guarantees of debt obligations. As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities. CFC is exempt from federal income taxes. Basis of Presentation and Use of Estimates The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures during the period. Management’s most significant estimates and assumptions involve determining the allowance for loan losses and the fair value of financial assets and liabilities. Actual results could differ from these estimates. We believe these financial statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results of operations for interim periods are not necessarily indicative of results for the entire fiscal year. Certain reclassifications have been made to prior periods to conform to the current presentation. The accompanying financial statements should be read in conjunction with the audited consolidated financial statements, and related notes thereto, included in CFC’s Annual Report on Form 10-K for the fiscal year ended May 31, 2018 (“ 2018 Form 10-K”). Refer to “Note 1—Summary of Significant Accounting Policies” in our 2018 Form 10-K for a discussion of our significant accounting policies. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of CFC, variable interest entities (“VIEs”) where CFC is the primary beneficiary and subsidiary entities created and controlled by CFC to hold foreclosed assets. CFC did not have any entities that held foreclosed assets as of August 31, 2018 or May 31, 2018 . All intercompany balances and transactions have been eliminated. National Cooperative Services Corporation (“NCSC”) and Rural Telephone Finance Cooperative (“RTFC”) are VIEs which are required to be consolidated by CFC. NCSC is a taxable member-owned cooperative that may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural,” and for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. RTFC is a taxable Subchapter T cooperative association that provides financing for its rural telecommunications members and their affiliates. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. Restricted Cash Restricted cash, totaled $9 million and $8 million as of August 31, 2018 and May 31, 2018 , respectively, and consists primarily of member funds held in escrow for certain specifically designated cooperative programs. Interest Income The following table presents interest income, by interest-earning asset category, for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, (Dollars in thousands) 2018 2017 Interest income by interest-earning asset type: Long-term fixed-rate loans (1) $ 251,801 $ 249,364 Long-term variable-rate loans 9,381 5,863 Line of credit loans 11,633 8,707 TDR loans (2) 218 226 Other income, net (3) (325 ) (232 ) Total loans 272,708 263,928 Cash, time deposits and investment securities 5,783 1,987 Total interest income $ 278,491 $ 265,915 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. (2) Troubled debt restructured (“TDR”) loans. (3) Consists of late payment fees and net amortization of deferred loan fees and loan origination costs. Deferred income of $64 million and $66 million as of August 31, 2018 and May 31, 2018 , respectively, consists primarily of deferred loan conversion fees totaling $58 million and $60 million , respectively. Deferred loan conversion fees are recognized in interest income using the effective interest method. Interest Expense The following table presents interest expense, by debt product type, for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, (Dollars in thousands) 2018 2017 Interest expense by debt product type: (1)(2) Short-term borrowings $ 19,419 $ 10,539 Medium-term notes 32,410 25,116 Collateral trust bonds 77,705 85,277 Guaranteed Underwriter Program notes payable 35,334 35,602 Farmer Mac notes payable 21,111 11,490 Other notes payable 322 390 Subordinated deferrable debt 9,417 9,416 Subordinated certificates 14,513 14,901 Total interest expense $ 210,231 $ 192,731 ____________________________ (1) Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. (2) Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. Recent Accounting Changes and Other Developments Accounting Standards Adopted in Fiscal Year 2019 Statement of Cash Flows—Restricted Cash In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows—Restricted Cash, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires that the statement of cash flows explain the change in the beginning-of-period and end-of-period total of cash, cash equivalents and restricted cash. Under previous guidance, we were required to explain the total change in cash and cash equivalents during the period. We adopted this guidance on June 1, 2018 on a retrospective basis. We made corresponding changes on our consolidated balance sheet to present a total for cash and cash equivalents and restricted cash. Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of the recognition, measurement, presentation and disclosure of certain financial instruments, including equity investments and liabilities measured at fair value under the fair value option. Under this guidance, investments in equity securities must be measured at fair value through earnings, with certain exceptions, and entities can no longer classify investments in equity securities as available for sale or trading. We adopted this guidance on June 1, 2018 on a modified retrospective basis and recorded a cumulative-effect adjustment that increased retained earnings by $9 million as a result of the transition adjustment to reclassify unrealized gains related to our equity securities from accumulated other comprehensive income (“AOCI”) to retained earnings. As a result of adopting this guidance, our investments in equity securities are no longer classified as available for sale and unrealized holding gains and losses are recorded in earnings. Previously, our equity securities were classified as available for sale and unrealized holding gains and losses were recorded in other comprehensive income. Revenue from Contracts with Customers In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers, which modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets. This guidance applies to all contracts with customers to provide goods or services in the ordinary course of business, except for certain contracts specifically excluded from the scope, including financial instruments, guarantees, insurance contracts and leases. As a financial institution, substantially all of our revenue is in the form of interest income derived from financial instruments, primarily our investments in loans and securities. We adopted this guidance on June 1, 2018. Given the scope exception for financial instruments, the adoption of the guidance did not have an impact on our condensed consolidated financial statements and does not affect our accounting. Accounting Standards Issued But Not Yet Adopted Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, FASB issued ASU 2018-13, Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The guidance is effective for public entities for fiscal years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted in any interim period or fiscal year before the effective date. The guidance is effective for us beginning June 1, 2020. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Acti vities, which expands the types of risk management strategies that qualify for hedge accounting treatment to more closely align the results of hedge accounting with the economics of certain risk management activities and simplifies certain hedge documentation and assessment requirement. It also eliminates the concept of separately recording hedge ineffectiveness and expands disclosure requirements. The guidance is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted in any interim period or fiscal year before the effective date. The guidance is effective for us beginning June 1, 2019. Hedge accounting is elective, and we currently apply hedge accounting on a limited basis, specifically when we enter into treasury rate lock agreements. If we continue to elect not to apply hedge accounting to our interest rate swaps, the adoption of the new guidance will not have a material impact on our consolidated financial statements. Receivables—Nonrefundable Fees and Other Cost In March 2017, FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs, which shortens the amortization period for the premium on certain callable debt securities to the earliest call date rather the maturity date. The guidance is applicable to any individual debt security, purchased at a premium, with an explicit and noncontingent call feature with a fixed price on a preset date. The guidance does not impact the accounting for purchased callable debt securities held at a discount; the discount will continue to amortize to the maturity date. The guidance is effective for public entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This update is effective for us beginning June 1, 2019. Adoption of the guidance requires modified retrospection transition as of the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model and establishes a single allowance framework based on a current expected credit loss model for financial assets carried at amortized cost, including loans and held-to-maturity debt securities. The current expected loss model requires an entity to estimate the credit losses expected over the life of the credit exposure upon initial recognition of that exposure when the financial asset is originated or acquired, which will generally result in earlier recognition of credit losses. The guidance also amends the other-than-temporary model for available-for-sale debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security. The new guidance also requires expanded credit quality disclosures. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This update is effective for us beginning June 1, 2020. We do not expect to early adopt this guidance. Upon adoption, we will be required to record a cumulative-effect adjustment to retained earnings. The impact on our consolidated financial statements from the adoption of this new guidance will depend on the composition and risk profile of our loan portfolio as of the date of adoption. |
Variable Interest Entities - (N
Variable Interest Entities - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Disclosure | NOTE 2—VARIABLE INTEREST ENTITIES NCSC and RTFC meet the definition of a VIE because they do not have sufficient equity investment at risk to finance their activities without financial support. CFC is the primary source of funding for NCSC and the sole source of funding for RTFC. Under the terms of management agreements, CFC manages the business operations of NCSC and RTFC. CFC also unconditionally guarantees full indemnification for any loan losses of NCSC and RTFC pursuant to guarantee agreements with each company. CFC earns management and guarantee fees from its agreements with NCSC and RTFC. NCSC and RTFC creditors have no recourse against CFC in the event of a default by NCSC and RTFC, unless there is a guarantee agreement under which CFC has guaranteed NCSC or RTFC debt obligations to a third party. The following table provides information on incremental consolidated assets and liabilities of VIEs included in CFC’s condensed consolidated financial statements, after intercompany eliminations, as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Total loans outstanding $ 1,139,508 $ 1,149,574 Other assets 10,897 10,280 Total assets $ 1,150,405 $ 1,159,854 Long-term debt $ 8,000 $ 8,000 Other liabilities 33,943 33,923 Total liabilities $ 41,943 $ 41,923 The following table provides information on CFC’s credit commitments to NCSC and RTFC, and its potential exposure to loss as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,106,813 1,116,465 Credit enhancements: CFC third-party guarantees 13,779 12,005 Other credit enhancements 14,314 14,655 Total credit enhancements (2) 28,093 26,660 Total outstanding commitments 1,134,906 1,143,125 CFC available credit commitments $ 4,365,094 $ 4,356,875 ____________________________ (1) Borrowings payable to CFC are eliminated in consolidation. (2) Excludes interest due on these instruments. CFC loans to NCSC and RTFC are secured by all assets and revenue of NCSC and RTFC. CFC’s maximum potential exposure, including interest due, for the credit enhancements totaled $30 million . The maturities for obligations guaranteed by CFC extend through 2031. |
Investment Securities - (Notes)
Investment Securities - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Investments [Abstract] | |
Investment Securities | NOTE 3—INVESTMENT SECURITIES We currently hold investments in equity and debt securities. We record purchases and sales of our investment securities on a trade-date basis. The accounting and measurement framework for investment securities differs depending on the security type and the classification. Equity Securities We previously had investments in equity securities that were classified as available for sale as of May 31, 2018. The unrealized gains and losses on these securities were recorded in other comprehensive income. Effective with our June 1, 2018 adoption of the financial instrument accounting standard on the recognition and measurement of financial assets and financial liabilities, unrealized gains and losses on equity securities are required to be recorded in earnings. The following table presents the fair value of our equity securities, all of which had readily determinable fair values, as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Equity securities at fair value: Farmer Mac—series A non-cumulative preferred stock $ 30,372 $ 30,480 Farmer Mac—series B non-cumulative preferred stock 25,880 26,000 Farmer Mac—series C non-cumulative preferred stock 26,440 25,872 Farmer Mac—class A common stock 5,914 6,980 Total equity securities at fair value $ 88,606 $ 89,332 We recorded unrealized losses on our investments in equity securities of $1 million in earnings during the three months ended August 31, 2018 . These unrealized losses are presented in fee and other income on our condensed consolidated statements of income. We recorded unrealized losses on our investments in equity securities of $1 million in other comprehensive income during the three months ended August 31, 2017 . For additional information on our investments in equity securities, see “Note 1—Summary of Significant Accounting Policies” and “Note 10—Equity—Accumulated Other Comprehensive Income.” Debt Securities We currently classify and account for our investments in debt securities as held to maturity (“HTM”) because we have the positive intent and ability to hold these securities to maturity. If we acquire debt securities that we may sell prior to maturity in response to changes in our investment strategy, liquidity needs, credit risk mitigating considerations, market risk profile or for other reasons, we would classify such securities as available for sale. We report debt securities classified as HTM on our condensed consolidated balance sheets at amortized cost. Interest income, including amortization of premiums and accretion of discounts, is generally recognized over the contractual life of the securities based on the effective yield method. Pursuant to our investment policy guidelines, all fixed-income debt securities, at the time of purchase, must be rated at least investment grade and on stable outlook based on external credit ratings from at least two of the leading global credit rating agencies, when available, or the corresponding equivalent, when not available. Securities rated investment grade, that is those rated Baa3 or higher by Moody’s Investors Service (“Moody’s”) or BBB- or higher by S&P or BBB- or higher by Fitch Ratings Inc. (“Fitch”), are generally considered by the rating agencies to be of lower credit risk than non-investment grade securities. Amortized Cost and Fair Value of Debt Securities The following tables present the amortized cost and fair value of our investment securities and the corresponding gross unrealized gains and losses, by classification category and major security type, as of August 31, 2018 and May 31, 2018 . August 31, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities held to maturity: Certificates of deposit $ 3,650 $ — $ — $ 3,650 Commercial paper 9,037 — — 9,037 U.S. agency debt securities 2,431 12 — 2,443 Corporate debt securities 468,059 737 (4,430 ) 464,366 Commercial MBS: Agency 7,342 50 (1 ) 7,391 Non-agency 3,453 2 (4 ) 3,451 Total commercial MBS 10,795 52 (5 ) 10,842 U.S. state and municipality debt securities 9,617 37 — 9,654 Foreign government debt securities 1,241 5 — 1,246 Other ABS (1) 48,924 14 (202 ) 48,736 Total debt securities held to maturity $ 553,754 $ 857 $ (4,637 ) $ 549,974 May 31, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities held to maturity: Certificates of deposit $ 5,148 $ — $ — $ 5,148 Commercial paper 9,134 — — 9,134 U.S. agency debt securities 2,000 16 — 2,016 Corporate debt securities 455,721 714 (4,595 ) 451,840 Commercial MBS: Agency 7,024 63 — 7,087 Non-agency 3,453 3 (3 ) 3,453 Total commercial MBS 10,477 66 (3 ) 10,540 U.S. state and municipality debt securities 2,147 24 — 2,171 Foreign government debt securities 1,241 9 — 1,250 Other ABS (1) 34,651 11 (215 ) 34,447 Total debt securities held to maturity $ 520,519 $ 840 $ (4,813 ) $ 516,546 ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. Debt Securities in Gross Unrealized Loss Position An unrealized loss exists when the fair value of an individual security is less than its amortized cost basis. The following table presents the fair value and gross unrealized losses for debt securities in a gross loss position, aggregated by security type, and the length of time the securities have been in a continuous unrealized loss position as of August 31, 2018 and May 31, 2018 . The securities are segregated between investments that have been in a continuous unrealized loss position for less than 12 months and 12 months or more based on the point in time that the fair value declined below the amortized cost basis. August 31, 2018 Unrealized Loss Position Less than 12 Months Unrealized Loss Position 12 Months or Longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Debt securities held to maturity: Corporate bonds $ 274,163 $ (4,430 ) $ — $ — $ 274,163 $ (4,430 ) Commercial MBS: Agency 341 (1 ) — — 341 (1 ) Non-agency 1,450 (4 ) — — 1,450 (4 ) Total commercial MBS 1,791 (5 ) — — 1,791 (5 ) Other ABS (1) 33,674 (202 ) — — 33,674 (202 ) Total investment securities $ 309,628 $ (4,637 ) $ — $ — $ 309,628 $ (4,637 ) May 31, 2018 Unrealized Loss Position Less than 12 Months Unrealized Loss Position 12 Months or Longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Held to maturity: Corporate debt securities $ 280,139 $ (4,595 ) $ — $ — $ 280,139 $ (4,595 ) Commercial MBS, non-agency 1,451 (3 ) — — 1,451 (3 ) Other ABS (1) 27,012 (215 ) — — 27,012 (215 ) Total investment securities $ 308,602 $ (4,813 ) $ — $ — $ 308,602 $ (4,813 ) ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. Other-Than-Temporary Impairment We conduct periodic reviews of all securities with unrealized losses to evaluate whether the impairment is other than temporary. The number of individual securities in an unrealized loss position was 271 as of August 31, 2018 . We have assessed each security with gross unrealized losses included in the above table for credit impairment. As part of that assessment, we concluded that the unrealized losses are driven by changes in market interest rates rather than by adverse changes in the credit quality of these securities. Based on our assessment, we expect to recover the entire amortized cost basis of these securities, as we do not intend to sell any of the securities and have concluded that it is more likely than not that we will not be required to sell prior to recovery of the amortized cost basis. Accordingly, we currently consider the impairment of these securities to be temporary. Contractual Maturity and Yield The following table presents, by major security type, the remaining contractual maturity based on amortized cost and fair value of our HTM investment securities as of August 31, 2018 and May 31, 2018 . Because borrowers may have the right to call or prepay certain obligations, the expected maturities of our investments may differ from the scheduled contractual maturities presented below. August 31, 2018 (Dollars in thousands) Due in 1 Year or Less Due > 1 Year through 5 Years Due > 5 Years through 10 Years Due >10 Years Total Amortized cost: Certificates of deposit $ 3,650 $ — $ — $ — $ 3,650 Commercial paper 9,037 — — — 9,037 U.S. agency debt securities — 2,431 — — 2,431 Corporate debt securities 14,347 382,249 71,463 — 468,059 Commercial MBS: Agency — 342 7,000 — 7,342 Non-agency — — — 3,453 3,453 Total commercial MBS — 342 7,000 3,453 10,795 U.S. state and municipality debt securities — 5,484 4,133 — 9,617 Foreign government debt securities — 1,241 — — 1,241 Other ABS (1) — 46,483 2,441 — 48,924 Total $ 27,034 $ 438,230 $ 85,037 $ 3,453 $ 553,754 Fair value: Certificates of deposit $ 3,650 $ — $ — $ — $ 3,650 Commercial paper 9,037 — — — 9,037 U.S. agency debt securities — 2,443 — — 2,443 Corporate debt securities 14,283 378,300 71,783 — 464,366 Commercial MBS: Agency — 341 7,050 — 7,391 Non-Agency — — — 3,451 3,451 Total Commercial MBS — 341 7,050 3,451 10,842 U.S. State and Municipality Debt Securities — 5,492 4,162 — 9,654 Foreign Government Debt Securities — 1,246 — — 1,246 Other ABS (1) — 46,290 2,446 — 48,736 Total $ 26,970 $ 434,112 $ 85,441 $ 3,451 $ 549,974 Weighted average coupon (2) 2.00 % 2.85 % 3.56 % 2.89 % 2.92 % May 31, 2018 (Dollars in thousands) Due in 1 Year or Less Due > 1 Year through 5 Years Due > 5 Years through 10 Years Due >10 Years Total Amortized cost: Certificates of deposit $ 5,148 $ — $ — $ — $ 5,148 Commercial paper 9,134 — — — 9,134 U.S. agency debt securities — 2,000 — — 2,000 Corporate debt securities 9,111 377,384 69,226 — 455,721 Commercial MBS: Agency — — 7,024 — 7,024 Non-Agency — — — 3,453 3,453 Total Commercial MBS — — 7,024 3,453 10,477 U.S. State and Municipality Debt Securities — — 2,147 — 2,147 Foreign Government Debt Securities — 1,241 — — 1,241 Other ABS (1) — 33,357 1,294 — 34,651 Total $ 23,393 $ 413,982 $ 79,691 $ 3,453 $ 520,519 Fair value: Certificates of deposit $ 5,148 $ — $ — $ — $ 5,148 Commercial paper 9,134 — — — 9,134 U.S. agency debt securities — 2,016 — — 2,016 Corporate debt securities 9,056 373,284 69,500 — 451,840 Commercial MBS: Agency — — 7,087 — 7,087 Non-Agency — — — 3,453 3,453 Total Commercial MBS — — 7,087 3,453 10,540 U.S. State and Municipality Debt Securities — — 2,171 — 2,171 Foreign Government Debt Securities — 1,250 — — 1,250 Other ABS (1) — 33,157 1,290 — 34,447 Total $ 23,338 $ 409,707 $ 80,048 $ 3,453 $ 516,546 Weighted average coupon (2) 1.81 % 2.84 % 3.60 % 2.74 % 2.91 % ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. (2) Calculated based on the weighted average coupon rate, which excludes the impact of amortization of premium and accretion of discount. The average contractual maturity and weighted average coupon of our HTM investment securities was four years and 2.92% , respectively, as of August 31, 2018 . The average credit rating of these securities, based on the equivalent lowest credit rating by Moody’s, S&P and Fitch was A2, A and A, respectively, as of August 31, 2018 . Realized Gains and Losses We did not sell any of our investment securities during the three months ended August 31, 2018 , and therefore have not recorded any realized gains or losses. |
Loans - (Notes)
Loans - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Commitments | NOTE 4—LOANS Loans, which are classified as held for investment, are carried at the outstanding unpaid principal balance net of unamortized loan origination costs. The following table presents the outstanding principal balance of loans to members, including deferred loan origination costs, and unadvanced loan commitments by loan type and member class, as of August 31, 2018 and May 31, 2018 . August 31, 2018 May 31, 2018 (Dollars in thousands) Loans Outstanding Unadvanced Commitments (1) Loans Outstanding Unadvanced Commitments (1) Loan type: Long-term loans: Fixed rate $ 22,682,597 $ — $ 22,696,185 $ — Variable rate 1,111,679 5,103,629 1,039,491 4,952,834 Total long-term loans 23,794,276 5,103,629 23,735,676 4,952,834 Lines of credit 1,377,160 7,804,966 1,431,818 7,692,784 Total loans outstanding 25,171,436 12,908,595 25,167,494 12,645,618 Deferred loan origination costs 11,218 — 11,114 — Loans to members $ 25,182,654 $ 12,908,595 $ 25,178,608 $ 12,645,618 Member class: CFC: Distribution $ 19,638,104 $ 8,384,392 $ 19,551,511 $ 8,188,376 Power supply 4,320,866 3,463,774 4,397,353 3,407,095 Statewide and associate 72,959 140,227 69,055 128,025 Total CFC 24,031,929 11,988,393 24,017,919 11,723,496 NCSC 780,892 614,200 786,457 624,663 RTFC 358,615 306,002 363,118 297,459 Total loans outstanding 25,171,436 12,908,595 25,167,494 12,645,618 Deferred loan origination costs 11,218 — 11,114 — Loans to members $ 25,182,654 $ 12,908,595 $ 25,178,608 $ 12,645,618 ____________________________ (1) The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. Unadvanced Loan Commitments Unadvanced loan commitments represent approved and executed loan contracts for which funds have not been advanced to borrowers. The following table summarizes the available balance under unadvanced loan commitments as of August 31, 2018 and the related maturities by fiscal year and thereafter by loan type: Available Balance Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2019 2020 2021 2022 2023 Thereafter Line of credit loans $ 7,804,966 $ 504,426 $ 4,144,522 $ 889,426 $ 860,833 $ 1,304,869 $ 100,890 Long-term loans 5,103,629 732,028 556,221 620,100 1,652,454 1,224,865 317,961 Total $ 12,908,595 $ 1,236,454 $ 4,700,743 $ 1,509,526 $ 2,513,287 $ 2,529,734 $ 418,851 Unadvanced line of credit commitments accounted for 60% of total unadvanced loan commitments as of August 31, 2018 , while unadvanced long-term loan commitments accounted for 40% of total unadvanced loan commitments. Unadvanced line of credit commitments are typically revolving facilities for periods not to exceed five years. Unadvanced line of credit commitments generally serve as supplemental back-up liquidity to our borrowers. Historically, borrowers have not drawn the full commitment amount for line of credit facilities, and we have experienced a very low utilization rate on line of credit loan facilities regardless of whether or not we are obligated to fund the facility where a material adverse change exists. Our unadvanced long-term loan commitments have a five-year draw period under which a borrower may advance funds prior to the expiration of the commitment. We expect that the majority of the long-term unadvanced loan commitments of $5,104 million will be advanced prior to the expiration of the commitment. Because we historically have experienced a very low utilization rate on line of credit loan facilities, which account for the majority of our total unadvanced loan commitments, we believe the unadvanced loan commitment total of $12,909 million as of August 31, 2018 is not necessarily representative of our future funding cash requirements. Unadvanced Loan Commitments—Conditional The substantial majority of our line of credit commitments and all of our unadvanced long-term loan commitments include material adverse change clauses. Unadvanced loan commitments subject to material adverse change clauses totaled $9,962 million and $9,789 million as of August 31, 2018 and May 31, 2018 , respectively. Prior to making an advance on these facilities, we confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with loan terms and conditions. In some cases, the borrower’s access to the full amount of the facility is further constrained by the designated purpose, imposition of borrower-specific restrictions or by additional conditions that must be met prior to advancing funds. Unadvanced Loan Commitments—Unconditional Unadvanced loan commitments not subject to material adverse change clauses at the time of each advance consisted of unadvanced committed lines of credit totaling $2,947 million and $2,857 million as of August 31, 2018 and May 31, 2018 , respectively. As such, we are required to advance amounts on these committed facilities as long as the borrower is in compliance with the terms and conditions of the facility. The following table summarizes the available balance under unconditional committed lines of credit, and the related maturities by fiscal year and thereafter, as of August 31, 2018 . Available Balance Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2019 2020 2021 2022 2023 Thereafter Committed lines of credit $2,946,596 $218,571 $458,236 $454,348 $609,513 $1,147,488 $58,440 Loan Sales We transfer, from time to time, loans to third parties under our direct loan sale program. We did no t have any loan sales during the three months ended August 31, 2018 . We sold CFC loans with outstanding balances totaling $70 million , at par for cash, during the three months ended August 31, 2017 . We recorded immaterial losses upon the sale of these loans, attributable to the unamortized deferred loan origination costs associated with the transferred loans. Pledging of Loans We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. The following table summarizes our loans outstanding as collateral pledged to secure our collateral trust bonds, Clean Renewable Energy Bonds, notes payable to Farmer Mac and notes payable under the Guaranteed Underwriter Program of the USDA (“Guaranteed Underwriter Program”) and the amount of the corresponding debt outstanding as of August 31, 2018 and May 31, 2018 . See “Note 6—Short-Term Borrowings” and “Note 7—Long-Term Debt” for information on our borrowings. (Dollars in thousands) August 31, 2018 May 31, 2018 Collateral trust bonds: 2007 indenture: Distribution system mortgage notes $ 8,393,917 $ 8,643,344 RUS-guaranteed loans qualifying as permitted investments 139,208 140,680 Total pledged collateral $ 8,533,125 $ 8,784,024 Collateral trust bonds outstanding 7,397,711 7,697,711 1994 indenture: Distribution system mortgage notes $ 239,509 $ 243,418 Collateral trust bonds outstanding 220,000 220,000 Farmer Mac: Distribution and power supply system mortgage notes $ 3,204,521 $ 3,331,775 Notes payable outstanding 2,777,532 2,891,496 Clean Renewable Energy Bonds Series 2009A: Distribution and power supply system mortgage notes $ 12,178 $ 12,615 Cash 671 415 Total pledged collateral $ 12,849 $ 13,030 Notes payable outstanding 11,556 11,556 Federal Financing Bank: Distribution and power supply system mortgage notes $ 5,560,856 $ 5,772,750 Notes payable outstanding 4,840,976 4,856,375 Credit Concentration As a tax-exempt, member-owned finance cooperative, CFC’s principal focus is to provide funding to its rural electric utility cooperative members to assist them in acquiring, constructing and operating electric distribution, power supply systems and related facilities. We serve electric and telecommunications members throughout the United States and its territories, including 50 states, the District of Columbia, American Samoa and Guam. Our consolidated membership totaled 1,449 members and 216 associates as of August 31, 2018 . Texas had the largest concentration of outstanding loans to borrowers in any one state, with approximately 15% of total loans outstanding as of both August 31, 2018 and May 31, 2018 . Because we lend primarily to our rural electric utility cooperative members, we have a loan portfolio subject to single-industry and single-obligor concentration risks. Loans outstanding to electric utility organizations represented approximately 99% of total loans outstanding as of August 31, 2018 , unchanged from May 31, 2018 . The remaining loans outstanding in our portfolio were to RTFC members, affiliates and associates in the telecommunications industry. The combined exposure of loans and guarantees outstanding for our 20 largest borrowers was 23% as of both August 31, 2018 and May 31, 2018 . The 20 largest borrowers consisted of nine distribution systems, 10 power supply systems and one NCSC associate member as of both August 31, 2018 and May 31, 2018 . The largest total outstanding exposure to a single borrower or controlled group represented approximately 2% of total loans and guarantees outstanding as of both August 31, 2018 and May 31, 2018 . As part of our strategy in managing our credit exposure, we entered into a long-term standby purchase commitment agreement with Farmer Mac during fiscal year 2016. Under this agreement, we may designate certain long-term loans to be covered under the commitment, subject to approval by Farmer Mac, and in the event any such loan later goes into payment default for at least 90 days, upon request by us, Farmer Mac must purchase such loan at par value. The aggregate unpaid principal balance of designated and Farmer Mac approved loans was $651 million and $660 million as of August 31, 2018 and May 31, 2018 , respectively. Under the agreement, we are required to pay Farmer Mac a monthly fee based on the unpaid principal balance of loans covered under the purchase commitment. No loans had been put to Farmer Mac for purchase, pursuant to this agreement, as of August 31, 2018 . Also, we had long-term loans totaling $159 million and $161 million as of August 31, 2018 and May 31, 2018 , respectively, guaranteed by RUS. Credit Quality Assessing the overall credit quality of our loan portfolio and measuring our credit risk is an ongoing process that involves tracking payment status, charge-offs, troubled debt restructurings, nonperforming and impaired loans, the internal risk ratings of our borrowers and other indicators of credit risk. We monitor and subject each borrower and loan facility in our loan portfolio to an individual risk assessment based on quantitative and qualitative factors. Internal risk ratings and payment status trends are indicators, among others, of the probability of borrower default and level of credit risk in our loan portfolio. Payment Status of Loans The tables below present the payment status of loans outstanding by member class as of August 31, 2018 and May 31, 2018 . As indicated in the table, we did not have any past due loans as of either August 31, 2018 or May 31, 2018 . August 31, 2018 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Past Due Total Financing Receivables Nonaccrual Loans CFC: Distribution $ 19,638,104 $ — $ — $ — $ 19,638,104 $ — Power supply 4,320,866 — — — 4,320,866 — Statewide and associate 72,959 — — — 72,959 — CFC total 24,031,929 — — — 24,031,929 — NCSC 780,892 — — — 780,892 — RTFC 358,615 — — — 358,615 — Total loans outstanding $ 25,171,436 $ — $ — $ — $ 25,171,436 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % May 31, 2018 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Total Financing Nonaccrual Loans CFC: Distribution $ 19,551,511 $ — $ — $ — $ 19,551,511 $ — Power supply 4,397,353 — — — 4,397,353 — Statewide and associate 69,055 — — — 69,055 — CFC total 24,017,919 — — — 24,017,919 — NCSC 786,457 — — — 786,457 — RTFC 363,118 — — — 363,118 — Total loans outstanding $ 25,167,494 $ — $ — $ — $ 25,167,494 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % ____________________________ (1) All loans 90 days or more past due are on nonaccrual status. Troubled Debt Restructurings We did not have any loans modified as TDRs during the three months ended August 31, 2018 . The following table provides a summary of loans modified as TDRs in prior periods, the performance status of these loans and the unadvanced loan commitments related to the TDR loans, by member class, as of August 31, 2018 and May 31, 2018 . August 31, 2018 May 31, 2018 (Dollars in thousands) Loans Outstanding % of Total Loans Unadvanced Commitments Loans Outstanding % of Total Loans Unadvanced Commitments TDR loans: Performing TDR loans: CFC/Distribution $ 6,261 0.03 % $ — $ 6,507 0.03 % $ — RTFC 5,967 0.02 — 6,092 0.02 — Total performing TDR loans 12,228 0.05 — 12,599 0.05 — Total TDR loans $ 12,228 0.05 % $ — $ 12,599 0.05 % $ — We did not have any TDR loans classified as nonperforming as of August 31, 2018 or May 31, 2018 . TDR loans classified as performing as of August 31, 2018 and May 31, 2018 were performing in accordance with the terms of their respective restructured loan agreement and on accrual status as of the respective reported dates. One borrower with a TDR loan also had a line of credit facility, restricted for fuel purchases only, totaling $6 million as of both August 31, 2018 and May 31, 2018 . The outstanding amount under this facility totaled less than $1 million as of both August 31, 2018 and May 31, 2018 , and was classified as performing as of each respective date. Nonperforming Loans In addition to TDR loans that may be classified as nonperforming, we also may have nonperforming loans that have not been modified as a TDR. We did not have any loans classified as nonperforming as of either August 31, 2018 or May 31, 2018 . We had no foregone interest income for loans on nonaccrual status during the three months ended August 31, 2018 and 2017 . Impaired Loans The following table provides information on loans classified as individually impaired loans as of August 31, 2018 and May 31, 2018 . August 31, 2018 May 31, 2018 (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Related Allowance With no specific allowance recorded: CFC $ 6,261 $ — $ 6,507 $ — With a specific allowance recorded: RTFC 5,967 1,175 6,092 1,198 Total impaired loans $ 12,228 $ 1,175 $ 12,599 $ 1,198 The following table presents, by company, the average recorded investment for individually impaired loans and the interest income recognized on these loans for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, 2018 2017 2018 2017 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC $ 6,504 $ 6,574 $ 142 $ 144 RTFC 6,048 6,548 76 82 Total impaired loans $ 12,552 $ 13,122 $ 218 $ 226 Net Charge-Offs Charge-offs represent the amount of a loan that has been removed from our consolidated balance sheet when the loan is deemed uncollectible. Generally the amount of a charge-off is the recorded investment in excess of the fair value of the expected cash flows from the loan, or, if the loan is collateral dependent, the fair value of the underlying collateral securing the loan. We report charge-offs net of amounts recovered on previously charged off loans. We had no loan defaults or charge-offs during the three months ended August 31, 2018 or 2017. Internal Risk Ratings of Loans As part of our credit risk management process, we monitor and evaluate each borrower and loan in our loan portfolio and assign internal borrower and loan facility risk ratings based on quantitative and qualitative assessments. Our borrower risk ratings are intended to assess probability of default. Each risk rating is reassessed annually following the receipt of the borrower’s audited financial statements; however, interim risk-rating downgrades or upgrades may occur as a result of significant developments or trends. Our borrower risk ratings are intended to align with banking regulatory agency credit risk rating definitions of pass and criticized classifications, with criticized divided between special mention, substandard and doubtful. Pass ratings reflect relatively low probability of default, while criticized ratings have a higher probability of default. Following is a description of each rating category. • Pass : Borrowers that are not experiencing difficulty and/or not showing a potential or well-defined credit weakness. • Special Mention : Borrowers that may be characterized by a potential credit weakness or deteriorating financial condition that is not sufficiently serious to warrant a classification of substandard or doubtful. • Substandard : Borrowers that display a well-defined credit weakness that may jeopardize the full collection of principal and interest. • Doubtful : Borrowers that have a well-defined credit weakness or weaknesses that make full collection of principal and interest, on the basis of currently known facts, conditions and collateral values, highly questionable and improbable. Loans to borrowers in the pass, special mention and substandard categories are generally considered not to be individually impaired and are included in the loan pools for determining the collective reserve component of the allowance for loan losses. Loans to borrowers in the doubtful category are considered to be impaired and are therefore individually assessed for impairment in determining the specific reserve component of the allowance for loan losses. The following tables present total loans outstanding, by member class and borrower risk rating category, based on the risk ratings used in the estimation of our allowance for loan losses as of August 31, 2018 and May 31, 2018 . August 31, 2018 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 19,507,777 $ 6,358 $ 123,969 $ — $ 19,638,104 Power supply 4,272,061 — 48,805 — 4,320,866 Statewide and associate 72,959 — — — 72,959 CFC total 23,852,797 6,358 172,774 — 24,031,929 NCSC 780,892 — — — 780,892 RTFC 352,202 446 5,967 — 358,615 Total loans outstanding $ 24,985,891 $ 6,804 $ 178,741 $ — $ 25,171,436 May 31, 2018 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 19,429,121 $ 6,853 $ 115,537 $ — $ 19,551,511 Power supply 4,348,328 — 49,025 — 4,397,353 Statewide and associate 69,055 — — — 69,055 CFC total 23,846,504 6,853 164,562 — 24,017,919 NCSC 786,457 — — — 786,457 RTFC 356,503 523 6,092 — 363,118 Total loans outstanding $ 24,989,464 $ 7,376 $ 170,654 $ — $ 25,167,494 We had loans to one electric distribution cooperative borrower and its subsidiary totaling $173 million and $165 million as of August 31, 2018 and May 31, 2018 , respectively, that were classified as substandard. The electric distribution cooperative owns and operates a distribution and transmission system and is in the early stages of deploying retail broadband service. The borrower is currently experiencing financial difficulties due to recent net losses and weak cash flows. The borrower and its subsidiary are current with regard to all principal and interest payments and have never been delinquent. The borrower operates in a territory that is not rate-regulated and has the ability to adjust its electric rates to cover operating costs and service debt. Of the outstanding amount, all but $17 million and $7 million was secured under our typical collateral requirements for long-term loan advances as of August 31, 2018 and May 31, 2018 , respectively. We currently expect to collect all principal and interest amounts due from the borrower and its subsidiary. Accordingly, the loans outstanding to this borrower and its subsidiary were not deemed to be impaired as of either August 31, 2018 or May 31, 2018. |
Allowance for Loan Losses - (No
Allowance for Loan Losses - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Loan Losses | NOTE 5—ALLOWANCE FOR LOAN LOSSES We maintain an allowance for loan losses that represents management’s estimate of probable losses inherent in our loan portfolio as of each balance sheet date. Our allowance for loan losses consists of a collective allowance for loans in our portfolio that are not individually impaired and a specific allowance for loans identified as individually impaired. The allowance for loan losses is reported separately on the consolidated balance sheet, and the provision for loan losses is separately reported on our consolidated statement of income. The following tables summarize changes, by company, in the allowance for loan losses as of and for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, 2018 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2018 $ 12,300 $ 2,082 $ 4,419 $ 18,801 Provision (benefit) for loan losses 208 (70 ) (247 ) (109 ) Balance as of August 31, 2018 $ 12,508 $ 2,012 $ 4,172 $ 18,692 Three Months Ended August 31, 2017 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2017 $ 29,499 $ 2,910 $ 4,967 $ 37,376 Provision (benefit) for loan losses 22 (174 ) (146 ) (298 ) Balance as of August 31, 2017 $ 29,521 $ 2,736 $ 4,821 $ 37,078 The tables below present, by company, the components of our allowance for loan losses and the recorded investment of the related loans as of August 31, 2018 and May 31, 2018 . August 31, 2018 (Dollars in thousands) CFC NCSC RTFC Total Ending balance of the allowance: Collective allowance $ 12,508 $ 2,012 $ 2,997 $ 17,517 Specific allowance — — 1,175 1,175 Total ending balance of the allowance $ 12,508 $ 2,012 $ 4,172 $ 18,692 Recorded investment in loans: Collectively evaluated loans $ 24,025,668 $ 780,892 $ 352,648 $ 25,159,208 Individually evaluated loans 6,261 — 5,967 12,228 Total recorded investment in loans $ 24,031,929 $ 780,892 $ 358,615 $ 25,171,436 Total recorded investment in loans, net (1) $ 24,019,421 $ 778,880 $ 354,443 $ 25,152,744 May 31, 2018 (Dollars in thousands) CFC NCSC RTFC Total Ending balance of the allowance: Collective allowance $ 12,300 $ 2,082 $ 3,221 $ 17,603 Specific allowance — — 1,198 1,198 Total ending balance of the allowance $ 12,300 $ 2,082 $ 4,419 $ 18,801 Recorded investment in loans: Collectively evaluated loans $ 24,011,412 $ 786,457 $ 357,026 $ 25,154,895 Individually evaluated loans 6,507 — 6,092 12,599 Total recorded investment in loans $ 24,017,919 $ 786,457 $ 363,118 $ 25,167,494 Total recorded investment in loans, net (1) $ 24,005,619 $ 784,375 $ 358,699 $ 25,148,693 ____________________________ (1) Excludes unamortized deferred loan origination costs of $11 million as of both August 31, 2018 and May 31, 2018 . In addition to the allowance for loan losses, we also maintain a reserve for unadvanced loan commitments at a level estimated by management to provide for probable losses under these commitments as of each balance sheet date, which was less than $1 million as of both August 31, 2018 and May 31, 2018 . |
Short-Term Borrowings - (Notes)
Short-Term Borrowings - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | NOTE 6—SHORT-TERM BORROWINGS Short-term borrowings consist of borrowings with an original contractual maturity of one year or less and do not include the current portion of long-term debt. Our short-term borrowings totaled $3,793 million and accounted for 15% of total debt outstanding as of August 31, 2018 , compared with $3,796 million , or 15% , of total debt outstanding as of May 31, 2018 . The following table displays short-term borrowings outstanding as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Short-term borrowings: Commercial paper sold through dealers, net of discounts $ 929,380 $ 1,064,266 Commercial paper sold directly to members, at par 1,286,441 1,202,105 Select notes 799,240 780,472 Daily liquidity fund notes 535,090 400,635 Farmer Mac revolving facility — 100,000 Medium-term notes sold to members 242,985 248,432 Total short-term borrowings $ 3,793,136 $ 3,795,910 Committed Bank Revolving Line of Credit Agreements We had $3,085 million of commitments under committed bank revolving line of credit agreements as of both August 31, 2018 and May 31, 2018 . Under our current committed bank revolving line of credit agreements, we have the ability to request up to $300 million of letters of credit, which would result in a reduction in the remaining available amount under the facilities. The following table presents the total commitment, the net amount available for use and the outstanding letters of credit under our committed bank revolving line of credit agreements as of August 31, 2018 and May 31, 2018 . August 31, 2018 May 31, 2018 (Dollars in millions) Total Commitment Letters of Credit Outstanding Net Available for Use Total Commitment Letters of Credit Outstanding Net Available for Use Maturity Annual Facility Fee (1) 3-year agreement $ 1,492 $ — $ 1,492 $ 1,492 $ — $ 1,492 November 20, 2020 7.5 bps 5-year agreement 1,593 3 1,590 1,593 3 1,590 November 20, 2022 10 bps Total $ 3,085 $ 3 $ 3,082 $ 3,085 $ 3 $ 3,082 ____________________________ (1) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. We had no borrowings outstanding under our committed bank revolving line of credit agreements as of August 31, 2018 or May 31, 2018 , and we were in compliance with all covenants and conditions under the agreements as of each date. |
Long-Term Debt - (Notes)
Long-Term Debt - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Debt Instruments [Abstract] | |
Long-Term Debt | NOTE 7—LONG-TERM DEBT The following table displays long-term debt outstanding, by debt type, as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Unsecured long-term debt: Medium-term notes sold through dealers $ 3,317,219 $ 3,026,472 Medium-term notes sold to members 388,748 395,389 Subtotal medium-term notes 3,705,967 3,421,861 Unamortized discount (1,175 ) (1,256 ) Debt issuance costs (21,844 ) (22,237 ) Total unsecured medium-term notes 3,682,948 3,398,368 Unsecured notes payable 18,892 18,892 Unamortized discount (253 ) (277 ) Debt issuance costs (62 ) (68 ) Total unsecured notes payable 18,577 18,547 Total unsecured long-term debt 3,701,525 3,416,915 Secured long-term debt: Collateral trust bonds 7,617,711 7,917,711 Unamortized discount (247,723 ) (250,421 ) Debt issuance costs (26,419 ) (28,197 ) Total collateral trust bonds 7,343,569 7,639,093 Guaranteed Underwriter Program notes payable 4,840,976 4,856,375 Debt issuance costs — (232 ) Total Guaranteed Underwriter Program notes payable 4,840,976 4,856,143 Farmer Mac notes payable 2,777,532 2,791,496 Other secured notes payable 11,556 11,556 Debt issuance costs (226 ) (243 ) Total other secured notes payable 11,330 11,313 Total secured notes payable 7,629,838 7,658,952 Total secured long-term debt 14,973,407 15,298,045 Total long-term debt $ 18,674,932 $ 18,714,960 Collateral Trust Bonds Collateral trust bonds represent secured obligations sold to investors in the capital markets. Collateral trust bonds are secured by the pledge of mortgage notes or eligible securities in an amount at least equal to the principal balance of the bonds outstanding. On July 12, 2018, we redeemed $300 million of the $1 billion 10.375% collateral trust bonds due November 1, 2018, at a premium of $7 million . Secured Notes Payable We had outstanding secured notes payable totaling $4,841 million and $4,856 million as of August 31, 2018 and May 31, 2018 , respectively, under bond purchase agreements with the Federal Financing Bank and a bond guarantee agreement with RUS issued under the Guaranteed Underwriter Program, which provides guarantees to the Federal Financing Bank. We pay RUS a fee of 30 basis points per year on the total amount outstanding. We had up to $1,225 million available for access under the Guaranteed Underwriter Program as of August 31, 2018 . We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under the Guaranteed Underwriter Program. See “Note 4—Loans” for additional information on the collateral pledged to secure notes payable under this program. We have two revolving note purchase agreements with Farmer Mac, which together allow us to borrow up to $5,500 million from Farmer Mac. On February 26, 2018, we amended our first revolving note purchase agreement with Farmer Mac, dated March 24, 2011. Under the amended agreement, we can currently borrow, subject to market conditions, up to $5,200 million at any time through January 11, 2022, and such date shall automatically extend on each anniversary date of the closing for an additional year, unless prior to any such anniversary date, Farmer Mac provides us with a notice that the draw period will not be extended beyond the remaining term. This revolving note purchase agreement allows us to borrow, repay and re-borrow funds at any time through maturity, as market conditions permit, provided that the outstanding principal amount at any time does not exceed the total available under the agreement. Each borrowing under the revolving note purchase agreement is evidenced by a pricing agreement setting forth the interest rate, maturity date and other related terms as we may negotiate with Farmer Mac at the time of each such borrowing. We may select a fixed rate or variable rate at the time of each advance with a maturity as determined in the applicable pricing agreement. Under this note purchase agreement with Farmer Mac, we had outstanding secured notes payable totaling $2,778 million and $2,791 million as of August 31, 2018 and May 31, 2018 , respectively. Our second revolving note purchase agreement with Farmer Mac, dated July 31, 2015, was amended effective July 31, 2018 to extend the maturity to December 20, 2023. Prior to the maturity date, Farmer Mac may terminate the agreement upon 30 days written notice to us on periodic facility renewal dates, the first of which is January 31, 2019. Subsequent facility renewal dates are on each June 20 or December 20 thereafter until the maturity date. We may terminate the agreement upon 30 days written notice at any time. Under the terms of the first revolving note purchase agreement with Farmer Mac described above, the $5,200 million commitment will increase to $5,500 million in the event the second revolving note purchase agreement is terminated. Under the terms of the amended second revolving note purchase agreement with Farmer Mac, we can borrow up to $300 million at any time through December 20, 2023 at a fixed spread over LIBOR. This agreement also allows us to borrow, repay and re-borrow funds at any time through maturity, provided that the outstanding principal amount at any time does not exceed the total available under the agreement. We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under each of our Farmer Mac revolving note purchase agreements. See “Note 4—Loans” for additional information on the collateral pledged to secure notes payable under these programs. We were in compliance with all covenants and conditions under our senior debt indentures as of August 31, 2018 and May 31, 2018 . |
Subordinated Deferrable Debt -
Subordinated Deferrable Debt - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Subordinated Debt [Abstract] | |
Subordinated Deferrable Debt | NOTE 8—SUBORDINATED DEFERRABLE DEBT The following table presents subordinated deferrable debt outstanding as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 4.75% due 2043 with a call date of April 30, 2023 $ 400,000 $ 400,000 5.25% due 2046 with a call date of April 20, 2026 350,000 350,000 Debt issuance costs (7,555 ) (7,590 ) Total subordinated deferrable debt $ 742,445 $ 742,410 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 9—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We are an end user of derivative financial instruments and do not engage in derivative trading. We use derivatives, primarily interest rate swaps and Treasury rate locks, to manage interest rate risk. Derivatives may be privately negotiated contracts, which are often referred to as over-the-counter (“OTC”) derivatives, or they may be listed and traded on an exchange. We generally engage in OTC derivative transactions. Accounting for Derivatives In accordance with the accounting standards for derivatives and hedging activities, we record derivative instruments at fair value as either a derivative asset or derivative liability on our condensed consolidated balance sheets. We report derivative asset and liability amounts on a gross basis based on individual contracts, which does not take into consideration the effects of master netting agreements or collateral netting. Derivatives in a gain position are reported as derivative assets on our condensed consolidated balance sheets, while derivatives in a loss position are reported as derivative liabilities. Accrued interest related to derivatives is reported on our condensed consolidated balance sheets as a component of either accrued interest and other receivables or accrued interest payable. If we do not elect hedge accounting treatment, changes in the fair value of derivative instruments, which consist of net accrued periodic derivative cash settlements and derivative forward value amounts, are recognized in our consolidated statements of income under derivative gains (losses). If we elect hedge accounting treatment for derivatives, we formally document, designate and assess the effectiveness of the hedge relationship. Changes in the fair value of derivatives designated as qualifying fair value hedges are recorded in earnings together with offsetting changes in the fair value of the hedged item and any related ineffectiveness. Changes in the fair value of derivatives designated as qualifying cash flow hedges are recorded as a component of OCI, to the extent that the hedge relationships are effective, and reclassified AOCI to earnings using the effective interest method over the term of the forecasted transaction. Any ineffectiveness in the hedging relationship is recognized as a component of derivative gains (losses) in our consolidated statement of income. We generally do not designate interest rate swaps, which currently represent all of our outstanding derivatives, for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our consolidated statements of income under derivative gains (losses). Net periodic cash settlements related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. Outstanding Notional Amount of Derivatives not Designated as Accounting Hedges The notional amount provides an indication of the volume of our derivatives activity, but this amount is not recorded on our condensed consolidated balance sheets. The notional amount is used only as the basis on which interest payments are determined and is not the amount exchanged. The following table shows the outstanding notional amounts and the weighted-average rate paid and received for our interest rate swaps, by type, as of August 31, 2018 and May 31, 2018 . The substantial majority of our interest rate swaps use an index based on the London Interbank Offered Rate (“LIBOR”) for either the pay or receive leg of the swap agreement. August 31, 2018 May 31, 2018 (Dollars in thousands) Notional Amount Weighted- Average Rate Paid Weighted- Average Rate Received Notional Weighted- Weighted- Pay-fixed swaps $ 7,474,762 2.82 % 2.34 % $ 6,987,999 2.83 % 2.30 % Receive-fixed swaps 3,699,000 2.96 2.52 3,824,000 2.93 2.50 Total interest rate swaps 11,173,762 2.87 2.40 10,811,999 2.86 2.37 Forward pay-fixed swaps 65,000 256,154 Total $ 11,238,762 $ 11,068,153 Cash Flow Hedge In anticipation of the repricing of $100 million in notes payable outstanding under the Guaranteed Underwriter Program, we entered into a treasury rate lock agreement with a notional amount of $100 million on May 25, 2018. The agreement, which matures on October 12, 2018, was designated as a cash flow hedge of the forecasted transaction. This cash flow hedge was recorded at fair value on our condensed consolidated balance sheets as of August 31, 2018 , and the related unrealized loss of $1 million was recorded in AOCI. Impact of Derivatives on Condensed Consolidated Balance Sheets The following table displays the fair value of the derivative assets and derivative liabilities recorded on our condensed consolidated balance sheets and the related outstanding notional amount of our interest rate swaps by derivatives type, as of August 31, 2018 and May 31, 2018 . August 31, 2018 May 31, 2018 (Dollars in thousands) Fair Value Notional Balance Fair Value Notional Balance Derivative assets: Interest rate swaps $ 256,186 $ 5,391,495 $ 244,526 $ 5,264,971 Derivative liabilities: Treasury rate lock—cash flow hedge $ 1,036 $ 100,000 $ 1,059 $ 100,000 Interest rate swaps 266,639 5,847,267 274,873 5,803,182 Total derivative liabilities $ 267,675 $ 5,947,267 $ 275,932 $ 5,903,182 All of our master swap agreements include netting provisions that allow for offsetting of all contracts with a given counterparty in the event of default by one of the two parties. However, as indicated above, we report derivative asset and liability amounts on a gross basis by individual contracts. The following table presents the gross fair value of derivative assets and liabilities reported on our condensed consolidated balance sheets as of August 31, 2018 and May 31, 2018 , and provides information on the impact of netting provisions and collateral pledged. August 31, 2018 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 256,186 $ — $ 256,186 $ 196,187 $ — $ 59,999 Derivative liabilities: Treasury rate lock—cash flow hedge 1,036 — 1,036 — — 1,036 Interest rate swaps 266,639 — 266,639 196,187 — 70,452 May 31, 2018 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 244,526 $ — $ 244,526 $ 196,633 $ — $ 47,893 Derivative liabilities: Treasury rate lock—cash flow hedge 1,059 — 1,059 — — 1,059 Interest rate swaps 274,873 — 274,873 196,633 — 78,240 Impact of Derivatives on Condensed Consolidated Statements of Income and AOCI Derivative gains (losses) reported in our condensed consolidated statements of income consist of derivative cash settlements and derivative forward value gains (losses). Derivative cash settlements represent net contractual interest expense accruals on interest rate swaps during the period. The derivative forward value gains (losses) represent the change in fair value of our interest rate swaps during the reporting period due to changes in the estimate of future interest rates over the remaining life of our derivative contracts. The following table presents the components of the derivative gains (losses) reported in our condensed consolidated statements of income for our interest rate swaps for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, (Dollars in thousands) 2018 2017 Derivative cash settlements $ (12,829 ) $ (20,222 ) Derivative forward value gains (losses) 20,012 (25,976 ) Derivative gains (losses) $ 7,183 $ (46,198 ) As described above, during fiscal year 2018, we entered into a treasury rate lock agreement that was designated as a cash flow hedge of a forecasted transaction. A related unrealized gain of less than $1 million was recorded in AOCI for the three months ended August 31, 2018 . Credit Risk-Related Contingent Features Our derivative contracts typically contain mutual early termination provisions, generally in the form of a credit rating trigger. Under the mutual credit rating trigger provisions, either counterparty may, but is not obligated to, terminate and settle the agreement if the credit rating of the other counterparty falls below a level specified in the agreement. If a derivative contract is terminated, the amount to be received or paid by us would be equal to the prevailing fair value, as defined in the agreement, as of the termination date. Our senior unsecured credit ratings from Moody’s and S&P were A2 and A, respectively, as of August 31, 2018 . Both Moody’s and S&P had our ratings on stable outlook as of August 31, 2018 . The following table displays the notional amounts of our derivative contracts with rating triggers as of August 31, 2018 , and the payments that would be required if the contracts were terminated as of that date because of a downgrade of our unsecured credit ratings or the counterparty’s unsecured credit ratings below A3/A-, below Baa1/BBB+, to or below Baa2/BBB, below Baa3/BBB-, or to or below Ba2/BB+ by Moody’s or S&P, respectively. In calculating the payment amounts that would be required upon termination of the derivative contracts, we assumed that the amounts for each counterparty would be netted in accordance with the provisions of the master netting agreements for each counterparty. The net payment amounts are based on the fair value of the underlying derivative instrument, excluding the credit risk valuation adjustment, plus any unpaid accrued interest amounts. (Dollars in thousands) Notional Amount Payable Due from CFC Receivable Due to CFC Net (Payable)/Receivable Impact of rating downgrade trigger: Falls below A3/A- (1) $ 54,890 $ (8,767 ) $ — $ (8,767 ) Falls below Baa1/BBB+ 7,355,092 (53,994 ) 44,183 (9,811 ) Falls to or below Baa2/BBB (2) 528,919 — 5,012 5,012 Falls below Baa3/BBB- 255,641 (10,523 ) — (10,523 ) Total $ 8,194,542 $ (73,284 ) $ 49,195 $ (24,089 ) ____________________________ (1) Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. (2) Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively. We have outstanding notional amount of derivatives with one counterparty subject to a ratings trigger and early termination provision in the event of a downgrade of CFC’s senior unsecured credit ratings below Baa3, BBB- or BBB- by Moody’s, S&P or Fitch, respectively, which is not included in the above table, totaling $265 million as of August 31, 2018 . These contracts were in an unrealized loss position of $3 million as of August 31, 2018 . Our largest counterparty exposure, based on the outstanding notional amount, accounted for approximately 24% of the total outstanding notional amount of derivatives as of both August 31, 2018 and May 31, 2018 . The aggregate fair value amount, including the credit risk valuation adjustment, of all interest rate swaps with rating triggers that were in a net liability position was $75 million as of August 31, 2018 . |
Equity - (Notes)
Equity - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 10—EQUITY Total equity of $1,507 million as of August 31, 2018 remained relatively unchanged compared to May 31, 2018 , as our reported net income of $48 million for the three months ended August 31, 2018 , was offset by the patronage capital retirement of $48 million in August 2018. The following table presents the components of equity as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Membership fees $ 969 $ 969 Educational fund 1,640 1,976 Total membership fees and educational fund 2,609 2,945 Patronage capital allocated 763,986 811,493 Members’ capital reserve 687,785 687,785 Unallocated net income (loss): Prior year-end cumulative derivative forward value losses (1) (30,831 ) (332,525 ) Current year derivative forward value gains (1) 19,671 301,694 Current period-end cumulative derivative forward value losses (1) (11,160 ) (30,831 ) Other unallocated net income (loss) 31,485 (5,603 ) Unallocated net income (loss) 20,325 (36,434 ) CFC retained equity 1,474,705 1,465,789 Accumulated other comprehensive income (loss) (214 ) 8,544 Total CFC equity 1,474,491 1,474,333 Noncontrolling interests 32,085 31,520 Total equity $ 1,506,576 $ 1,505,853 ____________________________ (1) Represents derivative forward value gains (losses) for CFC only, as total CFC equity does not include the noncontrolling interests of the consolidated variable interest entities NCSC and RTFC. See “Note 13—Business Segments” for the separate statements of income for CFC . In July 2018 , the CFC Board of Directors authorized the allocation of the fiscal year 2018 net earnings as follows: $95 million to members in the form of patronage, $57 million to the members’ capital reserve and $1 million to the cooperative educational fund. The amount of patronage capital allocated each year by CFC’s Board of Directors is based on adjusted net income, which excludes the impact of derivative forward value gains (losses). See “MD&A—Non-GAAP Financial Measures” for information on adjusted net income. In July 2018 , the CFC Board of Directors authorized the retirement of allocated net earnings totaling $48 million , representing 50% of the fiscal year 2018 allocation. This amount was returned to members in cash in August 2018. The remaining portion of the allocated amount will be retained by CFC for 25 years under guidelines adopted by the CFC Board of Directors in June 2009. The CFC Board of Directors is required to make annual allocations of adjusted net income, if any. CFC has made annual retirements of allocated net earnings in 39 of the last 40 fiscal years; however, future retirements of allocated amounts are determined based on CFC’s financial condition. The CFC Board of Directors has the authority to change the current practice for allocating and retiring net earnings at any time, subject to applicable laws. See “Item 1. Business—Allocation and Retirement of Patronage Capital” of our 2018 Form 10-K for additional information. Accumulated Other Comprehensive Income (Loss) The following tables summarize, by component, the activity in AOCI as of and for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, 2018 (Dollars in thousands) Unrealized Gains (Losses) Equity Securities Unrealized Gains Derivatives Unrealized Gains (Losses) Cash Flow Hedges Unrealized Losses Defined Benefit Plan Total Beginning balance $ 8,794 $ 3,039 $ (1,059 ) $ (2,230 ) $ 8,544 Cumulative effect of changes from adoption of new accounting standards (1) (8,794 ) — — — (8,794 ) Unrealized gains — — 24 — 24 (Gains) losses reclassified into earnings — (119 ) — 131 12 Other comprehensive income (loss) — (119 ) 24 131 36 Ending balance $ — $ 2,920 $ (1,035 ) $ (2,099 ) $ (214 ) Three Months Ended August 31, 2017 (Dollars in thousands) Unrealized Gains (Losses) Equity Securities Unrealized Gains Derivatives Unrealized Gains (Losses) Cash Flow Hedges Unrealized Losses Defined Benefit Plan Total Beginning balance $ 12,016 $ 3,531 $ 171 $ (2,543 ) $ 13,175 Unrealized losses (1,151 ) — — — (1,151 ) Gains (losses) reclassified into earnings — (124 ) (68 ) 127 (65 ) Other comprehensive income (loss) (1,151 ) (124 ) (68 ) 127 (1,216 ) Ending balance $ 10,865 $ 3,407 $ 103 $ (2,416 ) $ 11,959 ____________________________ (1) Represents the adjustment to AOCI as a result of the new accounting standards adopted during the three months ended August 31, 2018 , see “Note 1—Summary of Significant Accounting Policies. We expect to reclassify less than $1 million of amounts in AOCI related to unrealized derivative gains into earnings over the next 12 months. |
Guarantees - (Notes)
Guarantees - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Guarantees [Abstract] | |
Guarantees | NOTE 11—GUARANTEES The following table summarizes total guarantees, by type of guarantee and by member class, as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Total by type: Long-term tax-exempt bonds (1) $ 316,385 $ 316,985 Letters of credit (2) 316,731 343,970 Other guarantees 143,571 144,206 Total $ 776,687 $ 805,161 Total by member class: CFC: Distribution $ 197,527 $ 201,993 Power supply 561,999 587,837 Statewide and associate 3,382 3,326 CFC total 762,908 793,156 NCSC 12,205 10,431 RTFC 1,574 1,574 Total $ 776,687 $ 805,161 ____________________________ (1) Represents the outstanding principal amount of long-term fixed-rate and variable-rate guaranteed bonds. (2) Reflects our maximum potential exposure for letters of credit. Long-term tax-exempt bonds of $316 million and $317 million as of August 31, 2018 and May 31, 2018 , respectively, included $249 million and $250 million , respectively, of adjustable or variable-rate bonds that may be converted to a fixed rate as specified in the applicable indenture for each bond offering. We are unable to determine the maximum amount of interest that we may be required to pay related to the remaining adjustable and variable-rate bonds. Many of these bonds have a call provision that allows us to call the bond in the event of a default, which would limit our exposure to future interest payments on these bonds. Our maximum potential exposure generally is secured by mortgage liens on the members’ assets and future revenue. If a member’s debt is accelerated because of a determination that the interest thereon is not tax-exempt, the member’s obligation to reimburse us for any guarantee payments will be treated as a long-term loan. The remaining long-term tax-exempt bonds of $67 million as of August 31, 2018 are fixed-rate. The maximum potential exposure for these bonds, including the outstanding principal of $67 million and related interest through maturity, totaled $94 million as of August 31, 2018 . The maturities for long-term tax-exempt bonds and the related guarantees extend through calendar year 2042. Of the outstanding letters of credit of $317 million and $344 million as of August 31, 2018 and May 31, 2018 , respectively, $119 million and $120 million , respectively, were secured. We did not have any letters of credit outstanding that provided for standby liquidity for adjustable and floating-rate tax-exempt bonds issued for the benefit of our members as of August 31, 2018 . The maturities for the outstanding letters of credit as of August 31, 2018 extend through calendar year 2028. In addition to the letters of credit listed in the table above, under master letter of credit facilities in place as of August 31, 2018 , we may be required to issue up to an additional $67 million in letters of credit to third parties for the benefit of our members. All of our master letter of credit facilities were subject to material adverse change clauses at the time of issuance as of August 31, 2018 . Prior to issuing a letter of credit, we would confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with the letter of credit terms and conditions. The maximum potential exposure for other guarantees was $144 million and $145 million as of August 31, 2018 and May 31, 2018 , respectively, all of which were unsecured. The maturities for these other guarantees listed in the table above extend through calendar year 2025. Guarantees under which our right of recovery from our members was not secured totaled $316 million and $344 million and represented 41% and 43% of total guarantees as of August 31, 2018 and May 31, 2018 , respectively. In addition to the guarantees described above, we were also the liquidity provider for $249 million of variable-rate tax-exempt bonds as of August 31, 2018 , issued for our member cooperatives. While the bonds are in variable-rate mode, in return for a fee, we have unconditionally agreed to purchase bonds tendered or put for redemption if the remarketing agents are unable to sell such bonds to other investors. We were not required to perform as liquidity provider pursuant to these obligations during the three months ended August 31, 2018 or the prior fiscal year. Guarantee Liability As of August 31, 2018 and May 31, 2018 , we recorded a guarantee liability of $10 million and $11 million respectively, which represents the contingent and noncontingent exposures related to guarantees and liquidity obligations. The contingent guarantee liability was $1 million as of both August 31, 2018 and May 31, 2018 , based on management’s estimate of exposure to losses within the guarantee portfolio. The remaining balance of the total guarantee liability of $9 million and $10 million as of August 31, 2018 and May 31, 2018 , respectively, relates to our noncontingent obligation to stand ready to perform over the term of our guarantees and liquidity obligations that we have entered into or modified since January 1, 2003. |
Fair Value Measurement - (Notes
Fair Value Measurement - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 12—FAIR VALUE MEASUREMENT We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain assets and liabilities on a recurring or nonrecurring basis. The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value. The levels of the fair value hierarchy, in priority order, include Level 1, Level 2 and Level 3. For additional information regarding the fair value hierarchy and a description of the methodologies we use to measure fair value, see “Note 13—Fair Value Measurement” to the Consolidated Financial Statements in our 2018 Form 10-K. The following tables present the carrying value and fair value for all of our financial instruments, including those carried at amortized cost, as of August 31, 2018 and May 31, 2018 . The tables also display the classification within the fair value hierarchy of the valuation technique used in estimating fair value. August 31, 2018 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 265,905 $ 265,905 $ 265,905 $ — $ — Restricted cash 8,597 8,597 8,597 — — Equity securities 88,606 88,606 88,606 — — Debt securities held-to-maturity 553,754 549,974 — 549,974 — Deferred compensation investments 5,626 5,626 5,626 — — Loans to members, net 25,163,962 24,071,721 — — 24,071,721 Accrued interest receivable 124,343 124,343 — 124,343 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 256,186 256,186 — 256,186 — Liabilities: Short-term borrowings $ 3,793,136 $ 3,793,280 $ — $ 3,793,280 $ — Long-term debt 18,674,932 18,842,450 — 11,345,230 7,497,220 Accrued interest payable 205,898 205,898 — 205,898 — Guarantee liability 9,858 9,630 — — 9,630 Derivative liabilities 267,675 267,675 — 267,675 — Subordinated deferrable debt 742,445 762,678 — 762,678 — Members’ subordinated certificates 1,378,097 1,378,097 — — 1,378,097 May 31, 2018 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 230,999 $ 230,999 $ 230,999 $ — $ — Restricted cash 7,825 7,825 7,825 — — Time deposits 100,000 100,000 — 100,000 — Equity securities 89,332 89,332 89,332 — — Debt securities held to maturity 520,519 516,546 — 516,546 — Deferred compensation investments 5,194 5,194 5,194 — — Loans to members, net 25,159,807 24,167,886 — — 24,167,886 Accrued interest receivable 127,442 127,442 — 127,442 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 244,526 244,526 — 244,526 — Liabilities: Short-term borrowings $ 3,795,910 $ 3,795,799 $ — $ 3,695,799 $ 100,000 Long-term debt 18,714,960 18,909,276 — 11,373,216 7,536,060 Accrued interest payable 149,284 149,284 — 149,284 — Guarantee liability 10,589 10,454 — — 10,454 Derivative liabilities 275,932 275,932 — 275,932 — Subordinated deferrable debt 742,410 766,088 — 766,088 — Members’ subordinated certificates 1,379,982 1,380,004 — — 1,380,004 Transfers Between Levels We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy and transfer between Level 1, Level 2, and Level 3 accordingly. Observable market data includes but is not limited to quoted prices and market transactions. Changes in economic conditions or market liquidity generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changes in the valuation technique used, are generally the cause of transfers between levels. We did not have any transfers between levels for financial instruments measured at fair value on a recurring basis for the three months ended August 31, 2018 and 2017 . Recurring Fair Value Measurements The following table presents the carrying value and fair value of financial instruments reported in our condensed consolidated financial statements at fair value on a recurring basis as of August 31, 2018 and May 31, 2018 , and the classification of the valuation technique within the fair value hierarchy. August 31, 2018 May 31, 2018 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Equity securities $ 88,606 $ — $ 88,606 $ 89,332 $ — $ 89,332 Deferred compensation investments 5,626 — 5,626 5,194 — 5,194 Derivative assets — 256,186 256,186 — 244,526 244,526 Derivative liabilities — 267,675 267,675 — 275,932 275,932 Nonrecurring Fair Value We did not have any assets or liabilities reported in our condensed consolidated financial statements at fair value on a nonrecurring basis during the three months ended August 31, 2018 and 2017 . Significant Unobservable Level 3 Inputs Impaired Loans We utilize the fair value of estimated cash flows or the collateral underlying the loan to determine the fair value and specific allowance for impaired loans. The valuation technique used to determine fair value of the impaired loans provided by both our internal staff and third-party specialists includes market multiples (i.e., comparable companies). The significant unobservable inputs used in the determination of fair value for individually impaired loans is a multiple of earnings before interest, taxes, depreciation and amortization based on various factors (i.e., financial condition of the borrower). In estimating the fair value of the collateral, we may use third-party valuation specialists, internal estimates or a combination of both. The significant unobservable inputs for estimating the fair value of impaired collateral-dependent loans are reviewed by our Credit Risk Management group to assess the reasonableness of the assumptions used and the accuracy of the work performed. In cases where we rely on third-party inputs, we use the final unadjusted third-party valuation analysis as support for any adjustments to our consolidated financial statements and disclosures. Because of the limited amount of impaired loans as of August 31, 2018 and May 31, 2018 , we do not believe that potential changes in the significant unobservable inputs used in the determination of the fair value for impaired loans will have a material impact on the fair value measurement of these assets or our results of operations. |
Business Segments - (Notes)
Business Segments - (Notes) | 3 Months Ended |
Aug. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 13—BUSINESS SEGMENTS The following tables display segment results for the three months ended August 31, 2018 and 2017 , and assets attributable to each segment as of August 31, 2018 and August 31, 2017 . Three Months Ended August 31, 2018 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of income: Interest income $ 276,243 $ 12,984 $ (10,736 ) $ 278,491 Interest expense (210,050 ) (10,917 ) 10,736 (210,231 ) Net interest income 66,193 2,067 — 68,260 Benefit for loan losses 109 — — 109 Net interest income after benefit for loan losses 66,302 2,067 — 68,369 Non-interest income: Fee and other income 4,473 564 (1,852 ) 3,185 Derivative gains (losses): Derivative cash settlements (12,562 ) (267 ) — (12,829 ) Derivative forward value gains 19,671 341 — 20,012 Derivative gains 7,109 74 — 7,183 Total non-interest income 11,582 638 (1,852 ) 10,368 Non-interest expense: General and administrative expenses (22,425 ) (2,374 ) 1,594 (23,205 ) Losses on early extinguishment of debt (7,100 ) — — (7,100 ) Other non-interest expense (394 ) (258 ) 258 (394 ) Total non-interest expense (29,919 ) (2,632 ) 1,852 (30,699 ) Income before income taxes 47,965 73 — 48,038 Income tax expense — (60 ) — (60 ) Net income $ 47,965 $ 13 $ — $ 47,978 August 31, 2018 CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 25,138,742 $ 1,139,507 $ (1,106,813 ) $ 25,171,436 Deferred loan origination costs 11,218 — — 11,218 Loans to members 25,149,960 1,139,507 (1,106,813 ) 25,182,654 Less: Allowance for loan losses (18,692 ) — — (18,692 ) Loans to members, net 25,131,268 1,139,507 (1,106,813 ) 25,163,962 Other assets 1,501,315 106,902 (95,972 ) 1,512,245 Total assets $ 26,632,583 $ 1,246,409 $ (1,202,785 ) $ 26,676,207 Three Months Ended August 31, 2017 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of income: Interest income $ 263,411 $ 10,949 $ (8,445 ) $ 265,915 Interest expense (192,505 ) (8,671 ) 8,445 (192,731 ) Net interest income 70,906 2,278 — 73,184 Benefit for loan losses 298 — — 298 Net interest income after benefit for loan losses 71,204 2,278 — 73,482 Non-interest income: Fee and other income 3,888 400 (343 ) 3,945 Derivative gains (losses): Derivative cash settlements (19,564 ) (658 ) (20,222 ) Derivative forward value gains (losses) (26,111 ) 135 — (25,976 ) Derivative losses (45,675 ) (523 ) — (46,198 ) Results of operations of foreclosed assets (24 ) — — (24 ) Total non-interest income (41,811 ) (123 ) (343 ) (42,277 ) Non-interest expense: General and administrative expenses (19,738 ) (1,898 ) — (21,636 ) Other non-interest expense (522 ) (343 ) 343 (522 ) Total non-interest expense (20,260 ) (2,241 ) 343 (22,158 ) Income (loss) before income taxes 9,133 (86 ) — 9,047 Income tax expense — (32 ) — (32 ) Net income (loss) $ 9,133 $ (118 ) $ — $ 9,015 August 31, 2017 CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 24,595,584 $ 1,011,420 $ (975,978 ) $ 24,631,026 Deferred loan origination costs 11,051 — — 11,051 Loans to members 24,606,635 1,011,420 (975,978 ) 24,642,077 Less: Allowance for loan losses (37,078 ) — — (37,078 ) Loans to members, net 24,569,557 1,011,420 (975,978 ) 24,604,999 Other assets 864,334 107,146 (95,953 ) 875,527 Total assets $ 25,433,891 $ 1,118,566 $ (1,071,931 ) $ 25,480,526 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - (Policies) | 3 Months Ended |
Aug. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company National Rural Utilities Cooperative Finance Corporation (“CFC”) is a member-owned cooperative association incorporated under the laws of the District of Columbia in April 1969. CFC’s principal purpose is to provide its members with financing to supplement the loan programs of the Rural Utilities Service (“RUS”) of the United States Department of Agriculture (“USDA”). CFC makes loans to its rural electric members so they can acquire, construct and operate electric distribution, generation and transmission (“power supply”) systems and related facilities. CFC also provides its members with credit enhancements in the form of letters of credit and guarantees of debt obligations. As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities. CFC is exempt from federal income taxes. |
Basis of Presentation | Basis of Presentation and Use of Estimates The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures during the period. Management’s most significant estimates and assumptions involve determining the allowance for loan losses and the fair value of financial assets and liabilities. Actual results could differ from these estimates. We believe these financial statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results of operations for interim periods are not necessarily indicative of results for the entire fiscal year. Certain reclassifications have been made to prior periods to conform to the current presentation. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of CFC, variable interest entities (“VIEs”) where CFC is the primary beneficiary and subsidiary entities created and controlled by CFC to hold foreclosed assets. CFC did not have any entities that held foreclosed assets as of August 31, 2018 or May 31, 2018 . All intercompany balances and transactions have been eliminated. National Cooperative Services Corporation (“NCSC”) and Rural Telephone Finance Cooperative (“RTFC”) are VIEs which are required to be consolidated by CFC. NCSC is a taxable member-owned cooperative that may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural,” and for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. RTFC is a taxable Subchapter T cooperative association that provides financing for its rural telecommunications members and their affiliates. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. |
Restricted Cash | estricted Cash Restricted cash, totaled $9 million and $8 million as of August 31, 2018 and May 31, 2018 , respectively, and consists primarily of member funds held in escrow for certain specifically designated cooperative programs. |
Revenue Recognition, Interest | The following table presents interest income, by interest-earning asset category, for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, (Dollars in thousands) 2018 2017 Interest income by interest-earning asset type: Long-term fixed-rate loans (1) $ 251,801 $ 249,364 Long-term variable-rate loans 9,381 5,863 Line of credit loans 11,633 8,707 TDR loans (2) 218 226 Other income, net (3) (325 ) (232 ) Total loans 272,708 263,928 Cash, time deposits and investment securities 5,783 1,987 Total interest income $ 278,491 $ 265,915 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. (2) Troubled debt restructured (“TDR”) loans. (3) Consists of late payment fees and net amortization of deferred loan fees and loan origination costs. Deferred income of $64 million and $66 million as of August 31, 2018 and May 31, 2018 , respectively, consists primarily of deferred loan conversion fees totaling $58 million and $60 million , respectively. Deferred loan conversion fees are recognized in interest income using the effective interest method. |
Recently Issued but Not Yet Adopted Accounting Standards | Recent Accounting Changes and Other Developments Accounting Standards Adopted in Fiscal Year 2019 Statement of Cash Flows—Restricted Cash In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Statement of Cash Flows—Restricted Cash, which addresses the presentation of restricted cash in the statement of cash flows. The guidance requires that the statement of cash flows explain the change in the beginning-of-period and end-of-period total of cash, cash equivalents and restricted cash. Under previous guidance, we were required to explain the total change in cash and cash equivalents during the period. We adopted this guidance on June 1, 2018 on a retrospective basis. We made corresponding changes on our consolidated balance sheet to present a total for cash and cash equivalents and restricted cash. Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of the recognition, measurement, presentation and disclosure of certain financial instruments, including equity investments and liabilities measured at fair value under the fair value option. Under this guidance, investments in equity securities must be measured at fair value through earnings, with certain exceptions, and entities can no longer classify investments in equity securities as available for sale or trading. We adopted this guidance on June 1, 2018 on a modified retrospective basis and recorded a cumulative-effect adjustment that increased retained earnings by $9 million as a result of the transition adjustment to reclassify unrealized gains related to our equity securities from accumulated other comprehensive income (“AOCI”) to retained earnings. As a result of adopting this guidance, our investments in equity securities are no longer classified as available for sale and unrealized holding gains and losses are recorded in earnings. Previously, our equity securities were classified as available for sale and unrealized holding gains and losses were recorded in other comprehensive income. Revenue from Contracts with Customers In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers, which modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets. This guidance applies to all contracts with customers to provide goods or services in the ordinary course of business, except for certain contracts specifically excluded from the scope, including financial instruments, guarantees, insurance contracts and leases. As a financial institution, substantially all of our revenue is in the form of interest income derived from financial instruments, primarily our investments in loans and securities. We adopted this guidance on June 1, 2018. Given the scope exception for financial instruments, the adoption of the guidance did not have an impact on our condensed consolidated financial statements and does not affect our accounting. Accounting Standards Issued But Not Yet Adopted Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, FASB issued ASU 2018-13, Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The guidance is effective for public entities for fiscal years beginning after December 15, 2019, including interim periods within those years. Early adoption is permitted in any interim period or fiscal year before the effective date. The guidance is effective for us beginning June 1, 2020. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Acti vities, which expands the types of risk management strategies that qualify for hedge accounting treatment to more closely align the results of hedge accounting with the economics of certain risk management activities and simplifies certain hedge documentation and assessment requirement. It also eliminates the concept of separately recording hedge ineffectiveness and expands disclosure requirements. The guidance is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted in any interim period or fiscal year before the effective date. The guidance is effective for us beginning June 1, 2019. Hedge accounting is elective, and we currently apply hedge accounting on a limited basis, specifically when we enter into treasury rate lock agreements. If we continue to elect not to apply hedge accounting to our interest rate swaps, the adoption of the new guidance will not have a material impact on our consolidated financial statements. Receivables—Nonrefundable Fees and Other Cost In March 2017, FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs, which shortens the amortization period for the premium on certain callable debt securities to the earliest call date rather the maturity date. The guidance is applicable to any individual debt security, purchased at a premium, with an explicit and noncontingent call feature with a fixed price on a preset date. The guidance does not impact the accounting for purchased callable debt securities held at a discount; the discount will continue to amortize to the maturity date. The guidance is effective for public entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This update is effective for us beginning June 1, 2019. Adoption of the guidance requires modified retrospection transition as of the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model and establishes a single allowance framework based on a current expected credit loss model for financial assets carried at amortized cost, including loans and held-to-maturity debt securities. The current expected loss model requires an entity to estimate the credit losses expected over the life of the credit exposure upon initial recognition of that exposure when the financial asset is originated or acquired, which will generally result in earlier recognition of credit losses. The guidance also amends the other-than-temporary model for available-for-sale debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security. The new guidance also requires expanded credit quality disclosures. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This update is effective for us beginning June 1, 2020. We do not expect to early adopt this guidance. Upon adoption, we will be required to record a cumulative-effect adjustment to retained earnings. The impact on our consolidated financial statements from the adoption of this new guidance will depend on the composition and risk profile of our loan portfolio as of the date of adoption. |
Interest Expense, Policy | The following table presents interest expense, by debt product type, for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, (Dollars in thousands) 2018 2017 Interest expense by debt product type: (1)(2) Short-term borrowings $ 19,419 $ 10,539 Medium-term notes 32,410 25,116 Collateral trust bonds 77,705 85,277 Guaranteed Underwriter Program notes payable 35,334 35,602 Farmer Mac notes payable 21,111 11,490 Other notes payable 322 390 Subordinated deferrable debt 9,417 9,416 Subordinated certificates 14,513 14,901 Total interest expense $ 210,231 $ 192,731 ____________________________ (1) Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. (2) Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. |
Derivatives | Accounting for Derivatives In accordance with the accounting standards for derivatives and hedging activities, we record derivative instruments at fair value as either a derivative asset or derivative liability on our condensed consolidated balance sheets. We report derivative asset and liability amounts on a gross basis based on individual contracts, which does not take into consideration the effects of master netting agreements or collateral netting. Derivatives in a gain position are reported as derivative assets on our condensed consolidated balance sheets, while derivatives in a loss position are reported as derivative liabilities. Accrued interest related to derivatives is reported on our condensed consolidated balance sheets as a component of either accrued interest and other receivables or accrued interest payable. If we do not elect hedge accounting treatment, changes in the fair value of derivative instruments, which consist of net accrued periodic derivative cash settlements and derivative forward value amounts, are recognized in our consolidated statements of income under derivative gains (losses). If we elect hedge accounting treatment for derivatives, we formally document, designate and assess the effectiveness of the hedge relationship. Changes in the fair value of derivatives designated as qualifying fair value hedges are recorded in earnings together with offsetting changes in the fair value of the hedged item and any related ineffectiveness. Changes in the fair value of derivatives designated as qualifying cash flow hedges are recorded as a component of OCI, to the extent that the hedge relationships are effective, and reclassified AOCI to earnings using the effective interest method over the term of the forecasted transaction. Any ineffectiveness in the hedging relationship is recognized as a component of derivative gains (losses) in our consolidated statement of income. We generally do not designate interest rate swaps, which currently represent all of our outstanding derivatives, for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our consolidated statements of income under derivative gains (losses). Net periodic cash settlements related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. |
Fair Value Measurement | We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain assets and liabilities on a recurring or nonrecurring basis. The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value. The levels of the fair value hierarchy, in priority order, include Level 1, Level 2 and Level 3. For additional information regarding the fair value hierarchy and a description of the methodologies we use to measure fair value, see “Note 13—Fair Value Measurement” to the Consolidated Financial Statements in our 2018 Form 10-K. |
Impaired loans | Impaired Loans We utilize the fair value of estimated cash flows or the collateral underlying the loan to determine the fair value and specific allowance for impaired loans. The valuation technique used to determine fair value of the impaired loans provided by both our internal staff and third-party specialists includes market multiples (i.e., comparable companies). The significant unobservable inputs used in the determination of fair value for individually impaired loans is a multiple of earnings before interest, taxes, depreciation and amortization based on various factors (i.e., financial condition of the borrower). In estimating the fair value of the collateral, we may use third-party valuation specialists, internal estimates or a combination of both. The significant unobservable inputs for estimating the fair value of impaired collateral-dependent loans are reviewed by our Credit Risk Management group to assess the reasonableness of the assumptions used and the accuracy of the work performed. In cases where we rely on third-party inputs, we use the final unadjusted third-party valuation analysis as support for any adjustments to our consolidated financial statements and disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of components of interest income | The following table presents interest income, by interest-earning asset category, for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, (Dollars in thousands) 2018 2017 Interest income by interest-earning asset type: Long-term fixed-rate loans (1) $ 251,801 $ 249,364 Long-term variable-rate loans 9,381 5,863 Line of credit loans 11,633 8,707 TDR loans (2) 218 226 Other income, net (3) (325 ) (232 ) Total loans 272,708 263,928 Cash, time deposits and investment securities 5,783 1,987 Total interest income $ 278,491 $ 265,915 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. (2) Troubled debt restructured (“TDR”) loans. (3) Consists of late payment fees and net amortization of deferred loan fees and loan origination costs. |
Schedule of Components of Interest (Expense) | The following table presents interest expense, by debt product type, for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, (Dollars in thousands) 2018 2017 Interest expense by debt product type: (1)(2) Short-term borrowings $ 19,419 $ 10,539 Medium-term notes 32,410 25,116 Collateral trust bonds 77,705 85,277 Guaranteed Underwriter Program notes payable 35,334 35,602 Farmer Mac notes payable 21,111 11,490 Other notes payable 322 390 Subordinated deferrable debt 9,417 9,416 Subordinated certificates 14,513 14,901 Total interest expense $ 210,231 $ 192,731 ____________________________ (1) Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. (2) Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. |
Variable Interest Entities - (T
Variable Interest Entities - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table provides information on incremental consolidated assets and liabilities of VIEs included in CFC’s condensed consolidated financial statements, after intercompany eliminations, as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Total loans outstanding $ 1,139,508 $ 1,149,574 Other assets 10,897 10,280 Total assets $ 1,150,405 $ 1,159,854 Long-term debt $ 8,000 $ 8,000 Other liabilities 33,943 33,923 Total liabilities $ 41,943 $ 41,923 |
Schedule of Variable Interest Entities, Credit Commitments | The following table provides information on CFC’s credit commitments to NCSC and RTFC, and its potential exposure to loss as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,106,813 1,116,465 Credit enhancements: CFC third-party guarantees 13,779 12,005 Other credit enhancements 14,314 14,655 Total credit enhancements (2) 28,093 26,660 Total outstanding commitments 1,134,906 1,143,125 CFC available credit commitments $ 4,365,094 $ 4,356,875 ____________________________ (1) Borrowings payable to CFC are eliminated in consolidation. (2) Excludes interest due on these instruments. |
Investment Securities - (Tables
Investment Securities - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Investments [Abstract] | |
Equity Securities | The following table presents the fair value of our equity securities, all of which had readily determinable fair values, as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Equity securities at fair value: Farmer Mac—series A non-cumulative preferred stock $ 30,372 $ 30,480 Farmer Mac—series B non-cumulative preferred stock 25,880 26,000 Farmer Mac—series C non-cumulative preferred stock 26,440 25,872 Farmer Mac—class A common stock 5,914 6,980 Total equity securities at fair value $ 88,606 $ 89,332 |
Unrealized Gain (Loss) on Investments | The following tables present the amortized cost and fair value of our investment securities and the corresponding gross unrealized gains and losses, by classification category and major security type, as of August 31, 2018 and May 31, 2018 . August 31, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities held to maturity: Certificates of deposit $ 3,650 $ — $ — $ 3,650 Commercial paper 9,037 — — 9,037 U.S. agency debt securities 2,431 12 — 2,443 Corporate debt securities 468,059 737 (4,430 ) 464,366 Commercial MBS: Agency 7,342 50 (1 ) 7,391 Non-agency 3,453 2 (4 ) 3,451 Total commercial MBS 10,795 52 (5 ) 10,842 U.S. state and municipality debt securities 9,617 37 — 9,654 Foreign government debt securities 1,241 5 — 1,246 Other ABS (1) 48,924 14 (202 ) 48,736 Total debt securities held to maturity $ 553,754 $ 857 $ (4,637 ) $ 549,974 May 31, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities held to maturity: Certificates of deposit $ 5,148 $ — $ — $ 5,148 Commercial paper 9,134 — — 9,134 U.S. agency debt securities 2,000 16 — 2,016 Corporate debt securities 455,721 714 (4,595 ) 451,840 Commercial MBS: Agency 7,024 63 — 7,087 Non-agency 3,453 3 (3 ) 3,453 Total commercial MBS 10,477 66 (3 ) 10,540 U.S. state and municipality debt securities 2,147 24 — 2,171 Foreign government debt securities 1,241 9 — 1,250 Other ABS (1) 34,651 11 (215 ) 34,447 Total debt securities held to maturity $ 520,519 $ 840 $ (4,813 ) $ 516,546 ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. |
Schedule of Unrealized Loss on Investments | The following table presents the fair value and gross unrealized losses for debt securities in a gross loss position, aggregated by security type, and the length of time the securities have been in a continuous unrealized loss position as of August 31, 2018 and May 31, 2018 . The securities are segregated between investments that have been in a continuous unrealized loss position for less than 12 months and 12 months or more based on the point in time that the fair value declined below the amortized cost basis. August 31, 2018 Unrealized Loss Position Less than 12 Months Unrealized Loss Position 12 Months or Longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Debt securities held to maturity: Corporate bonds $ 274,163 $ (4,430 ) $ — $ — $ 274,163 $ (4,430 ) Commercial MBS: Agency 341 (1 ) — — 341 (1 ) Non-agency 1,450 (4 ) — — 1,450 (4 ) Total commercial MBS 1,791 (5 ) — — 1,791 (5 ) Other ABS (1) 33,674 (202 ) — — 33,674 (202 ) Total investment securities $ 309,628 $ (4,637 ) $ — $ — $ 309,628 $ (4,637 ) May 31, 2018 Unrealized Loss Position Less than 12 Months Unrealized Loss Position 12 Months or Longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Held to maturity: Corporate debt securities $ 280,139 $ (4,595 ) $ — $ — $ 280,139 $ (4,595 ) Commercial MBS, non-agency 1,451 (3 ) — — 1,451 (3 ) Other ABS (1) 27,012 (215 ) — — 27,012 (215 ) Total investment securities $ 308,602 $ (4,813 ) $ — $ — $ 308,602 $ (4,813 ) ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. |
Investments Classified by Contractual Maturity Date | The following table presents, by major security type, the remaining contractual maturity based on amortized cost and fair value of our HTM investment securities as of August 31, 2018 and May 31, 2018 . Because borrowers may have the right to call or prepay certain obligations, the expected maturities of our investments may differ from the scheduled contractual maturities presented below. August 31, 2018 (Dollars in thousands) Due in 1 Year or Less Due > 1 Year through 5 Years Due > 5 Years through 10 Years Due >10 Years Total Amortized cost: Certificates of deposit $ 3,650 $ — $ — $ — $ 3,650 Commercial paper 9,037 — — — 9,037 U.S. agency debt securities — 2,431 — — 2,431 Corporate debt securities 14,347 382,249 71,463 — 468,059 Commercial MBS: Agency — 342 7,000 — 7,342 Non-agency — — — 3,453 3,453 Total commercial MBS — 342 7,000 3,453 10,795 U.S. state and municipality debt securities — 5,484 4,133 — 9,617 Foreign government debt securities — 1,241 — — 1,241 Other ABS (1) — 46,483 2,441 — 48,924 Total $ 27,034 $ 438,230 $ 85,037 $ 3,453 $ 553,754 Fair value: Certificates of deposit $ 3,650 $ — $ — $ — $ 3,650 Commercial paper 9,037 — — — 9,037 U.S. agency debt securities — 2,443 — — 2,443 Corporate debt securities 14,283 378,300 71,783 — 464,366 Commercial MBS: Agency — 341 7,050 — 7,391 Non-Agency — — — 3,451 3,451 Total Commercial MBS — 341 7,050 3,451 10,842 U.S. State and Municipality Debt Securities — 5,492 4,162 — 9,654 Foreign Government Debt Securities — 1,246 — — 1,246 Other ABS (1) — 46,290 2,446 — 48,736 Total $ 26,970 $ 434,112 $ 85,441 $ 3,451 $ 549,974 Weighted average coupon (2) 2.00 % 2.85 % 3.56 % 2.89 % 2.92 % May 31, 2018 (Dollars in thousands) Due in 1 Year or Less Due > 1 Year through 5 Years Due > 5 Years through 10 Years Due >10 Years Total Amortized cost: Certificates of deposit $ 5,148 $ — $ — $ — $ 5,148 Commercial paper 9,134 — — — 9,134 U.S. agency debt securities — 2,000 — — 2,000 Corporate debt securities 9,111 377,384 69,226 — 455,721 Commercial MBS: Agency — — 7,024 — 7,024 Non-Agency — — — 3,453 3,453 Total Commercial MBS — — 7,024 3,453 10,477 U.S. State and Municipality Debt Securities — — 2,147 — 2,147 Foreign Government Debt Securities — 1,241 — — 1,241 Other ABS (1) — 33,357 1,294 — 34,651 Total $ 23,393 $ 413,982 $ 79,691 $ 3,453 $ 520,519 Fair value: Certificates of deposit $ 5,148 $ — $ — $ — $ 5,148 Commercial paper 9,134 — — — 9,134 U.S. agency debt securities — 2,016 — — 2,016 Corporate debt securities 9,056 373,284 69,500 — 451,840 Commercial MBS: Agency — — 7,087 — 7,087 Non-Agency — — — 3,453 3,453 Total Commercial MBS — — 7,087 3,453 10,540 U.S. State and Municipality Debt Securities — — 2,171 — 2,171 Foreign Government Debt Securities — 1,250 — — 1,250 Other ABS (1) — 33,157 1,290 — 34,447 Total $ 23,338 $ 409,707 $ 80,048 $ 3,453 $ 516,546 Weighted average coupon (2) 1.81 % 2.84 % 3.60 % 2.74 % 2.91 % ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. (2) Calculated based on the weighted average coupon rate, which excludes the impact of amortization of premium and accretion of discount. |
Loans - (Tables)
Loans - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Summary of loans outstanding to members and unadvanced commitments by loan type and by member class | The following table presents the outstanding principal balance of loans to members, including deferred loan origination costs, and unadvanced loan commitments by loan type and member class, as of August 31, 2018 and May 31, 2018 . August 31, 2018 May 31, 2018 (Dollars in thousands) Loans Outstanding Unadvanced Commitments (1) Loans Outstanding Unadvanced Commitments (1) Loan type: Long-term loans: Fixed rate $ 22,682,597 $ — $ 22,696,185 $ — Variable rate 1,111,679 5,103,629 1,039,491 4,952,834 Total long-term loans 23,794,276 5,103,629 23,735,676 4,952,834 Lines of credit 1,377,160 7,804,966 1,431,818 7,692,784 Total loans outstanding 25,171,436 12,908,595 25,167,494 12,645,618 Deferred loan origination costs 11,218 — 11,114 — Loans to members $ 25,182,654 $ 12,908,595 $ 25,178,608 $ 12,645,618 Member class: CFC: Distribution $ 19,638,104 $ 8,384,392 $ 19,551,511 $ 8,188,376 Power supply 4,320,866 3,463,774 4,397,353 3,407,095 Statewide and associate 72,959 140,227 69,055 128,025 Total CFC 24,031,929 11,988,393 24,017,919 11,723,496 NCSC 780,892 614,200 786,457 624,663 RTFC 358,615 306,002 363,118 297,459 Total loans outstanding 25,171,436 12,908,595 25,167,494 12,645,618 Deferred loan origination costs 11,218 — 11,114 — Loans to members $ 25,182,654 $ 12,908,595 $ 25,178,608 $ 12,645,618 ____________________________ (1) The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. |
Schedule of available balance and maturities of lines of credit | The following table summarizes the available balance under unadvanced loan commitments as of August 31, 2018 and the related maturities by fiscal year and thereafter by loan type: Available Balance Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2019 2020 2021 2022 2023 Thereafter Line of credit loans $ 7,804,966 $ 504,426 $ 4,144,522 $ 889,426 $ 860,833 $ 1,304,869 $ 100,890 Long-term loans 5,103,629 732,028 556,221 620,100 1,652,454 1,224,865 317,961 Total $ 12,908,595 $ 1,236,454 $ 4,700,743 $ 1,509,526 $ 2,513,287 $ 2,529,734 $ 418,851 |
Summary of available balance under committed lines of credit and the related maturities by fiscal year | The following table summarizes the available balance under unconditional committed lines of credit, and the related maturities by fiscal year and thereafter, as of August 31, 2018 . Available Balance Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2019 2020 2021 2022 2023 Thereafter Committed lines of credit $2,946,596 $218,571 $458,236 $454,348 $609,513 $1,147,488 $58,440 |
Summary of loans outstanding as collateral pledged to secure the entity's collateral trust bonds, Clean Renewable Energy Bonds and notes payable to the Federal Agricultural Mortgage Corporation and the amount of the corresponding debt outstanding | The following table summarizes our loans outstanding as collateral pledged to secure our collateral trust bonds, Clean Renewable Energy Bonds, notes payable to Farmer Mac and notes payable under the Guaranteed Underwriter Program of the USDA (“Guaranteed Underwriter Program”) and the amount of the corresponding debt outstanding as of August 31, 2018 and May 31, 2018 . See “Note 6—Short-Term Borrowings” and “Note 7—Long-Term Debt” for information on our borrowings. (Dollars in thousands) August 31, 2018 May 31, 2018 Collateral trust bonds: 2007 indenture: Distribution system mortgage notes $ 8,393,917 $ 8,643,344 RUS-guaranteed loans qualifying as permitted investments 139,208 140,680 Total pledged collateral $ 8,533,125 $ 8,784,024 Collateral trust bonds outstanding 7,397,711 7,697,711 1994 indenture: Distribution system mortgage notes $ 239,509 $ 243,418 Collateral trust bonds outstanding 220,000 220,000 Farmer Mac: Distribution and power supply system mortgage notes $ 3,204,521 $ 3,331,775 Notes payable outstanding 2,777,532 2,891,496 Clean Renewable Energy Bonds Series 2009A: Distribution and power supply system mortgage notes $ 12,178 $ 12,615 Cash 671 415 Total pledged collateral $ 12,849 $ 13,030 Notes payable outstanding 11,556 11,556 Federal Financing Bank: Distribution and power supply system mortgage notes $ 5,560,856 $ 5,772,750 Notes payable outstanding 4,840,976 4,856,375 |
Past Due Financing Receivables | The tables below present the payment status of loans outstanding by member class as of August 31, 2018 and May 31, 2018 . As indicated in the table, we did not have any past due loans as of either August 31, 2018 or May 31, 2018 . August 31, 2018 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Past Due Total Financing Receivables Nonaccrual Loans CFC: Distribution $ 19,638,104 $ — $ — $ — $ 19,638,104 $ — Power supply 4,320,866 — — — 4,320,866 — Statewide and associate 72,959 — — — 72,959 — CFC total 24,031,929 — — — 24,031,929 — NCSC 780,892 — — — 780,892 — RTFC 358,615 — — — 358,615 — Total loans outstanding $ 25,171,436 $ — $ — $ — $ 25,171,436 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % May 31, 2018 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Total Financing Nonaccrual Loans CFC: Distribution $ 19,551,511 $ — $ — $ — $ 19,551,511 $ — Power supply 4,397,353 — — — 4,397,353 — Statewide and associate 69,055 — — — 69,055 — CFC total 24,017,919 — — — 24,017,919 — NCSC 786,457 — — — 786,457 — RTFC 363,118 — — — 363,118 — Total loans outstanding $ 25,167,494 $ — $ — $ — $ 25,167,494 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % ____________________________ (1) All loans 90 days or more past due are on nonaccrual status. |
Schedule of Troubled Debt Restructured loans | The following table provides a summary of loans modified as TDRs in prior periods, the performance status of these loans and the unadvanced loan commitments related to the TDR loans, by member class, as of August 31, 2018 and May 31, 2018 . August 31, 2018 May 31, 2018 (Dollars in thousands) Loans Outstanding % of Total Loans Unadvanced Commitments Loans Outstanding % of Total Loans Unadvanced Commitments TDR loans: Performing TDR loans: CFC/Distribution $ 6,261 0.03 % $ — $ 6,507 0.03 % $ — RTFC 5,967 0.02 — 6,092 0.02 — Total performing TDR loans 12,228 0.05 — 12,599 0.05 — Total TDR loans $ 12,228 0.05 % $ — $ 12,599 0.05 % $ — |
Impaired Financing Receivable with Related Allowance Recorded Investment | The following table provides information on loans classified as individually impaired loans as of August 31, 2018 and May 31, 2018 . August 31, 2018 May 31, 2018 (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Related Allowance With no specific allowance recorded: CFC $ 6,261 $ — $ 6,507 $ — With a specific allowance recorded: RTFC 5,967 1,175 6,092 1,198 Total impaired loans $ 12,228 $ 1,175 $ 12,599 $ 1,198 |
Schedule of average recorded investment in impaired loans and the interest income recognized by member class | The following table presents, by company, the average recorded investment for individually impaired loans and the interest income recognized on these loans for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, 2018 2017 2018 2017 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC $ 6,504 $ 6,574 $ 142 $ 144 RTFC 6,048 6,548 76 82 Total impaired loans $ 12,552 $ 13,122 $ 218 $ 226 |
Schedule of loan portfolio by risk rating category and member class based on available data | The following tables present total loans outstanding, by member class and borrower risk rating category, based on the risk ratings used in the estimation of our allowance for loan losses as of August 31, 2018 and May 31, 2018 . August 31, 2018 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 19,507,777 $ 6,358 $ 123,969 $ — $ 19,638,104 Power supply 4,272,061 — 48,805 — 4,320,866 Statewide and associate 72,959 — — — 72,959 CFC total 23,852,797 6,358 172,774 — 24,031,929 NCSC 780,892 — — — 780,892 RTFC 352,202 446 5,967 — 358,615 Total loans outstanding $ 24,985,891 $ 6,804 $ 178,741 $ — $ 25,171,436 May 31, 2018 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 19,429,121 $ 6,853 $ 115,537 $ — $ 19,551,511 Power supply 4,348,328 — 49,025 — 4,397,353 Statewide and associate 69,055 — — — 69,055 CFC total 23,846,504 6,853 164,562 — 24,017,919 NCSC 786,457 — — — 786,457 RTFC 356,503 523 6,092 — 363,118 Total loans outstanding $ 24,989,464 $ 7,376 $ 170,654 $ — $ 25,167,494 |
Allowance for Loan Losses - (Ta
Allowance for Loan Losses - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses on Financing Receivables | The following tables summarize changes, by company, in the allowance for loan losses as of and for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, 2018 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2018 $ 12,300 $ 2,082 $ 4,419 $ 18,801 Provision (benefit) for loan losses 208 (70 ) (247 ) (109 ) Balance as of August 31, 2018 $ 12,508 $ 2,012 $ 4,172 $ 18,692 Three Months Ended August 31, 2017 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2017 $ 29,499 $ 2,910 $ 4,967 $ 37,376 Provision (benefit) for loan losses 22 (174 ) (146 ) (298 ) Balance as of August 31, 2017 $ 29,521 $ 2,736 $ 4,821 $ 37,078 |
Allowance for Credit Losses and Recorded Investment in Financing Receivables | The tables below present, by company, the components of our allowance for loan losses and the recorded investment of the related loans as of August 31, 2018 and May 31, 2018 . August 31, 2018 (Dollars in thousands) CFC NCSC RTFC Total Ending balance of the allowance: Collective allowance $ 12,508 $ 2,012 $ 2,997 $ 17,517 Specific allowance — — 1,175 1,175 Total ending balance of the allowance $ 12,508 $ 2,012 $ 4,172 $ 18,692 Recorded investment in loans: Collectively evaluated loans $ 24,025,668 $ 780,892 $ 352,648 $ 25,159,208 Individually evaluated loans 6,261 — 5,967 12,228 Total recorded investment in loans $ 24,031,929 $ 780,892 $ 358,615 $ 25,171,436 Total recorded investment in loans, net (1) $ 24,019,421 $ 778,880 $ 354,443 $ 25,152,744 May 31, 2018 (Dollars in thousands) CFC NCSC RTFC Total Ending balance of the allowance: Collective allowance $ 12,300 $ 2,082 $ 3,221 $ 17,603 Specific allowance — — 1,198 1,198 Total ending balance of the allowance $ 12,300 $ 2,082 $ 4,419 $ 18,801 Recorded investment in loans: Collectively evaluated loans $ 24,011,412 $ 786,457 $ 357,026 $ 25,154,895 Individually evaluated loans 6,507 — 6,092 12,599 Total recorded investment in loans $ 24,017,919 $ 786,457 $ 363,118 $ 25,167,494 Total recorded investment in loans, net (1) $ 24,005,619 $ 784,375 $ 358,699 $ 25,148,693 ____________________________ (1) Excludes unamortized deferred loan origination costs of $11 million as of both August 31, 2018 and May 31, 2018 . |
Short-Term Borrowings - (Tables
Short-Term Borrowings - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The following table displays short-term borrowings outstanding as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Short-term borrowings: Commercial paper sold through dealers, net of discounts $ 929,380 $ 1,064,266 Commercial paper sold directly to members, at par 1,286,441 1,202,105 Select notes 799,240 780,472 Daily liquidity fund notes 535,090 400,635 Farmer Mac revolving facility — 100,000 Medium-term notes sold to members 242,985 248,432 Total short-term borrowings $ 3,793,136 $ 3,795,910 |
Schedule of Line of Credit Facilities | The following table presents the total commitment, the net amount available for use and the outstanding letters of credit under our committed bank revolving line of credit agreements as of August 31, 2018 and May 31, 2018 . August 31, 2018 May 31, 2018 (Dollars in millions) Total Commitment Letters of Credit Outstanding Net Available for Use Total Commitment Letters of Credit Outstanding Net Available for Use Maturity Annual Facility Fee (1) 3-year agreement $ 1,492 $ — $ 1,492 $ 1,492 $ — $ 1,492 November 20, 2020 7.5 bps 5-year agreement 1,593 3 1,590 1,593 3 1,590 November 20, 2022 10 bps Total $ 3,085 $ 3 $ 3,082 $ 3,085 $ 3 $ 3,082 ____________________________ (1) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. |
Long-Term Debt - (Tables)
Long-Term Debt - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Debt Instruments [Abstract] | |
Summary of long-term debt outstanding | The following table displays long-term debt outstanding, by debt type, as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Unsecured long-term debt: Medium-term notes sold through dealers $ 3,317,219 $ 3,026,472 Medium-term notes sold to members 388,748 395,389 Subtotal medium-term notes 3,705,967 3,421,861 Unamortized discount (1,175 ) (1,256 ) Debt issuance costs (21,844 ) (22,237 ) Total unsecured medium-term notes 3,682,948 3,398,368 Unsecured notes payable 18,892 18,892 Unamortized discount (253 ) (277 ) Debt issuance costs (62 ) (68 ) Total unsecured notes payable 18,577 18,547 Total unsecured long-term debt 3,701,525 3,416,915 Secured long-term debt: Collateral trust bonds 7,617,711 7,917,711 Unamortized discount (247,723 ) (250,421 ) Debt issuance costs (26,419 ) (28,197 ) Total collateral trust bonds 7,343,569 7,639,093 Guaranteed Underwriter Program notes payable 4,840,976 4,856,375 Debt issuance costs — (232 ) Total Guaranteed Underwriter Program notes payable 4,840,976 4,856,143 Farmer Mac notes payable 2,777,532 2,791,496 Other secured notes payable 11,556 11,556 Debt issuance costs (226 ) (243 ) Total other secured notes payable 11,330 11,313 Total secured notes payable 7,629,838 7,658,952 Total secured long-term debt 14,973,407 15,298,045 Total long-term debt $ 18,674,932 $ 18,714,960 |
Subordinated Deferrable Debt _2
Subordinated Deferrable Debt - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Subordinated Debt [Abstract] | |
Schedule of Subordinated Borrowing | The following table presents subordinated deferrable debt outstanding as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 4.75% due 2043 with a call date of April 30, 2023 $ 400,000 $ 400,000 5.25% due 2046 with a call date of April 20, 2026 350,000 350,000 Debt issuance costs (7,555 ) (7,590 ) Total subordinated deferrable debt $ 742,445 $ 742,410 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts and weighted average rates paid and received | The following table shows the outstanding notional amounts and the weighted-average rate paid and received for our interest rate swaps, by type, as of August 31, 2018 and May 31, 2018 . The substantial majority of our interest rate swaps use an index based on the London Interbank Offered Rate (“LIBOR”) for either the pay or receive leg of the swap agreement. August 31, 2018 May 31, 2018 (Dollars in thousands) Notional Amount Weighted- Average Rate Paid Weighted- Average Rate Received Notional Weighted- Weighted- Pay-fixed swaps $ 7,474,762 2.82 % 2.34 % $ 6,987,999 2.83 % 2.30 % Receive-fixed swaps 3,699,000 2.96 2.52 3,824,000 2.93 2.50 Total interest rate swaps 11,173,762 2.87 2.40 10,811,999 2.86 2.37 Forward pay-fixed swaps 65,000 256,154 Total $ 11,238,762 $ 11,068,153 |
Schedule of fair values and notional amounts of outstanding derivatives | The following table displays the fair value of the derivative assets and derivative liabilities recorded on our condensed consolidated balance sheets and the related outstanding notional amount of our interest rate swaps by derivatives type, as of August 31, 2018 and May 31, 2018 . August 31, 2018 May 31, 2018 (Dollars in thousands) Fair Value Notional Balance Fair Value Notional Balance Derivative assets: Interest rate swaps $ 256,186 $ 5,391,495 $ 244,526 $ 5,264,971 Derivative liabilities: Treasury rate lock—cash flow hedge $ 1,036 $ 100,000 $ 1,059 $ 100,000 Interest rate swaps 266,639 5,847,267 274,873 5,803,182 Total derivative liabilities $ 267,675 $ 5,947,267 $ 275,932 $ 5,903,182 |
Schedule of offsetting assets and liabilities | The following table presents the gross fair value of derivative assets and liabilities reported on our condensed consolidated balance sheets as of August 31, 2018 and May 31, 2018 , and provides information on the impact of netting provisions and collateral pledged. August 31, 2018 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 256,186 $ — $ 256,186 $ 196,187 $ — $ 59,999 Derivative liabilities: Treasury rate lock—cash flow hedge 1,036 — 1,036 — — 1,036 Interest rate swaps 266,639 — 266,639 196,187 — 70,452 May 31, 2018 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 244,526 $ — $ 244,526 $ 196,633 $ — $ 47,893 Derivative liabilities: Treasury rate lock—cash flow hedge 1,059 — 1,059 — — 1,059 Interest rate swaps 274,873 — 274,873 196,633 — 78,240 |
Schedule of offsetting assets and liabilities | The following table presents the gross fair value of derivative assets and liabilities reported on our condensed consolidated balance sheets as of August 31, 2018 and May 31, 2018 , and provides information on the impact of netting provisions and collateral pledged. August 31, 2018 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 256,186 $ — $ 256,186 $ 196,187 $ — $ 59,999 Derivative liabilities: Treasury rate lock—cash flow hedge 1,036 — 1,036 — — 1,036 Interest rate swaps 266,639 — 266,639 196,187 — 70,452 May 31, 2018 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 244,526 $ — $ 244,526 $ 196,633 $ — $ 47,893 Derivative liabilities: Treasury rate lock—cash flow hedge 1,059 — 1,059 — — 1,059 Interest rate swaps 274,873 — 274,873 196,633 — 78,240 |
Summary of gains and losses recorded on the consolidated statements of operations for the entity's interest rate swaps | The following table presents the components of the derivative gains (losses) reported in our condensed consolidated statements of income for our interest rate swaps for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, (Dollars in thousands) 2018 2017 Derivative cash settlements $ (12,829 ) $ (20,222 ) Derivative forward value gains (losses) 20,012 (25,976 ) Derivative gains (losses) $ 7,183 $ (46,198 ) |
Schedule of notional amounts of derivative instruments having rating triggers | The following table displays the notional amounts of our derivative contracts with rating triggers as of August 31, 2018 , and the payments that would be required if the contracts were terminated as of that date because of a downgrade of our unsecured credit ratings or the counterparty’s unsecured credit ratings below A3/A-, below Baa1/BBB+, to or below Baa2/BBB, below Baa3/BBB-, or to or below Ba2/BB+ by Moody’s or S&P, respectively. In calculating the payment amounts that would be required upon termination of the derivative contracts, we assumed that the amounts for each counterparty would be netted in accordance with the provisions of the master netting agreements for each counterparty. The net payment amounts are based on the fair value of the underlying derivative instrument, excluding the credit risk valuation adjustment, plus any unpaid accrued interest amounts. (Dollars in thousands) Notional Amount Payable Due from CFC Receivable Due to CFC Net (Payable)/Receivable Impact of rating downgrade trigger: Falls below A3/A- (1) $ 54,890 $ (8,767 ) $ — $ (8,767 ) Falls below Baa1/BBB+ 7,355,092 (53,994 ) 44,183 (9,811 ) Falls to or below Baa2/BBB (2) 528,919 — 5,012 5,012 Falls below Baa3/BBB- 255,641 (10,523 ) — (10,523 ) Total $ 8,194,542 $ (73,284 ) $ 49,195 $ (24,089 ) ____________________________ (1) Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. (2) Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively. |
Equity - (Tables)
Equity - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following table presents the components of equity as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Membership fees $ 969 $ 969 Educational fund 1,640 1,976 Total membership fees and educational fund 2,609 2,945 Patronage capital allocated 763,986 811,493 Members’ capital reserve 687,785 687,785 Unallocated net income (loss): Prior year-end cumulative derivative forward value losses (1) (30,831 ) (332,525 ) Current year derivative forward value gains (1) 19,671 301,694 Current period-end cumulative derivative forward value losses (1) (11,160 ) (30,831 ) Other unallocated net income (loss) 31,485 (5,603 ) Unallocated net income (loss) 20,325 (36,434 ) CFC retained equity 1,474,705 1,465,789 Accumulated other comprehensive income (loss) (214 ) 8,544 Total CFC equity 1,474,491 1,474,333 Noncontrolling interests 32,085 31,520 Total equity $ 1,506,576 $ 1,505,853 ____________________________ (1) Represents derivative forward value gains (losses) for CFC only, as total CFC equity does not include the noncontrolling interests of the consolidated variable interest entities NCSC and RTFC. See “Note 13—Business Segments” for the separate statements of income for CFC . |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize, by component, the activity in AOCI as of and for the three months ended August 31, 2018 and 2017 . Three Months Ended August 31, 2018 (Dollars in thousands) Unrealized Gains (Losses) Equity Securities Unrealized Gains Derivatives Unrealized Gains (Losses) Cash Flow Hedges Unrealized Losses Defined Benefit Plan Total Beginning balance $ 8,794 $ 3,039 $ (1,059 ) $ (2,230 ) $ 8,544 Cumulative effect of changes from adoption of new accounting standards (1) (8,794 ) — — — (8,794 ) Unrealized gains — — 24 — 24 (Gains) losses reclassified into earnings — (119 ) — 131 12 Other comprehensive income (loss) — (119 ) 24 131 36 Ending balance $ — $ 2,920 $ (1,035 ) $ (2,099 ) $ (214 ) Three Months Ended August 31, 2017 (Dollars in thousands) Unrealized Gains (Losses) Equity Securities Unrealized Gains Derivatives Unrealized Gains (Losses) Cash Flow Hedges Unrealized Losses Defined Benefit Plan Total Beginning balance $ 12,016 $ 3,531 $ 171 $ (2,543 ) $ 13,175 Unrealized losses (1,151 ) — — — (1,151 ) Gains (losses) reclassified into earnings — (124 ) (68 ) 127 (65 ) Other comprehensive income (loss) (1,151 ) (124 ) (68 ) 127 (1,216 ) Ending balance $ 10,865 $ 3,407 $ 103 $ (2,416 ) $ 11,959 |
Guarantees - (Tables)
Guarantees - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Guarantees [Abstract] | |
Summary of total guarantees by type of guarantee and member class | The following table summarizes total guarantees, by type of guarantee and by member class, as of August 31, 2018 and May 31, 2018 . (Dollars in thousands) August 31, 2018 May 31, 2018 Total by type: Long-term tax-exempt bonds (1) $ 316,385 $ 316,985 Letters of credit (2) 316,731 343,970 Other guarantees 143,571 144,206 Total $ 776,687 $ 805,161 Total by member class: CFC: Distribution $ 197,527 $ 201,993 Power supply 561,999 587,837 Statewide and associate 3,382 3,326 CFC total 762,908 793,156 NCSC 12,205 10,431 RTFC 1,574 1,574 Total $ 776,687 $ 805,161 ____________________________ (1) Represents the outstanding principal amount of long-term fixed-rate and variable-rate guaranteed bonds. (2) Reflects our maximum potential exposure for letters of credit. |
Fair Value Measurement - (Table
Fair Value Measurement - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The tables also display the classification within the fair value hierarchy of the valuation technique used in estimating fair value. August 31, 2018 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 265,905 $ 265,905 $ 265,905 $ — $ — Restricted cash 8,597 8,597 8,597 — — Equity securities 88,606 88,606 88,606 — — Debt securities held-to-maturity 553,754 549,974 — 549,974 — Deferred compensation investments 5,626 5,626 5,626 — — Loans to members, net 25,163,962 24,071,721 — — 24,071,721 Accrued interest receivable 124,343 124,343 — 124,343 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 256,186 256,186 — 256,186 — Liabilities: Short-term borrowings $ 3,793,136 $ 3,793,280 $ — $ 3,793,280 $ — Long-term debt 18,674,932 18,842,450 — 11,345,230 7,497,220 Accrued interest payable 205,898 205,898 — 205,898 — Guarantee liability 9,858 9,630 — — 9,630 Derivative liabilities 267,675 267,675 — 267,675 — Subordinated deferrable debt 742,445 762,678 — 762,678 — Members’ subordinated certificates 1,378,097 1,378,097 — — 1,378,097 May 31, 2018 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 230,999 $ 230,999 $ 230,999 $ — $ — Restricted cash 7,825 7,825 7,825 — — Time deposits 100,000 100,000 — 100,000 — Equity securities 89,332 89,332 89,332 — — Debt securities held to maturity 520,519 516,546 — 516,546 — Deferred compensation investments 5,194 5,194 5,194 — — Loans to members, net 25,159,807 24,167,886 — — 24,167,886 Accrued interest receivable 127,442 127,442 — 127,442 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 244,526 244,526 — 244,526 — Liabilities: Short-term borrowings $ 3,795,910 $ 3,795,799 $ — $ 3,695,799 $ 100,000 Long-term debt 18,714,960 18,909,276 — 11,373,216 7,536,060 Accrued interest payable 149,284 149,284 — 149,284 — Guarantee liability 10,589 10,454 — — 10,454 Derivative liabilities 275,932 275,932 — 275,932 — Subordinated deferrable debt 742,410 766,088 — 766,088 — Members’ subordinated certificates 1,379,982 1,380,004 — — 1,380,004 |
Schedule of the entity's assets and liabilities that are measured at fair value on a recurring basis | The following table presents the carrying value and fair value of financial instruments reported in our condensed consolidated financial statements at fair value on a recurring basis as of August 31, 2018 and May 31, 2018 , and the classification of the valuation technique within the fair value hierarchy. August 31, 2018 May 31, 2018 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Equity securities $ 88,606 $ — $ 88,606 $ 89,332 $ — $ 89,332 Deferred compensation investments 5,626 — 5,626 5,194 — 5,194 Derivative assets — 256,186 256,186 — 244,526 244,526 Derivative liabilities — 267,675 267,675 — 275,932 275,932 |
Business Segments - (Tables)
Business Segments - (Tables) | 3 Months Ended |
Aug. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment presentation for the consolidated statements of operations and consolidated balance sheets | The following tables display segment results for the three months ended August 31, 2018 and 2017 , and assets attributable to each segment as of August 31, 2018 and August 31, 2017 . Three Months Ended August 31, 2018 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of income: Interest income $ 276,243 $ 12,984 $ (10,736 ) $ 278,491 Interest expense (210,050 ) (10,917 ) 10,736 (210,231 ) Net interest income 66,193 2,067 — 68,260 Benefit for loan losses 109 — — 109 Net interest income after benefit for loan losses 66,302 2,067 — 68,369 Non-interest income: Fee and other income 4,473 564 (1,852 ) 3,185 Derivative gains (losses): Derivative cash settlements (12,562 ) (267 ) — (12,829 ) Derivative forward value gains 19,671 341 — 20,012 Derivative gains 7,109 74 — 7,183 Total non-interest income 11,582 638 (1,852 ) 10,368 Non-interest expense: General and administrative expenses (22,425 ) (2,374 ) 1,594 (23,205 ) Losses on early extinguishment of debt (7,100 ) — — (7,100 ) Other non-interest expense (394 ) (258 ) 258 (394 ) Total non-interest expense (29,919 ) (2,632 ) 1,852 (30,699 ) Income before income taxes 47,965 73 — 48,038 Income tax expense — (60 ) — (60 ) Net income $ 47,965 $ 13 $ — $ 47,978 August 31, 2018 CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 25,138,742 $ 1,139,507 $ (1,106,813 ) $ 25,171,436 Deferred loan origination costs 11,218 — — 11,218 Loans to members 25,149,960 1,139,507 (1,106,813 ) 25,182,654 Less: Allowance for loan losses (18,692 ) — — (18,692 ) Loans to members, net 25,131,268 1,139,507 (1,106,813 ) 25,163,962 Other assets 1,501,315 106,902 (95,972 ) 1,512,245 Total assets $ 26,632,583 $ 1,246,409 $ (1,202,785 ) $ 26,676,207 Three Months Ended August 31, 2017 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of income: Interest income $ 263,411 $ 10,949 $ (8,445 ) $ 265,915 Interest expense (192,505 ) (8,671 ) 8,445 (192,731 ) Net interest income 70,906 2,278 — 73,184 Benefit for loan losses 298 — — 298 Net interest income after benefit for loan losses 71,204 2,278 — 73,482 Non-interest income: Fee and other income 3,888 400 (343 ) 3,945 Derivative gains (losses): Derivative cash settlements (19,564 ) (658 ) (20,222 ) Derivative forward value gains (losses) (26,111 ) 135 — (25,976 ) Derivative losses (45,675 ) (523 ) — (46,198 ) Results of operations of foreclosed assets (24 ) — — (24 ) Total non-interest income (41,811 ) (123 ) (343 ) (42,277 ) Non-interest expense: General and administrative expenses (19,738 ) (1,898 ) — (21,636 ) Other non-interest expense (522 ) (343 ) 343 (522 ) Total non-interest expense (20,260 ) (2,241 ) 343 (22,158 ) Income (loss) before income taxes 9,133 (86 ) — 9,047 Income tax expense — (32 ) — (32 ) Net income (loss) $ 9,133 $ (118 ) $ — $ 9,015 August 31, 2017 CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 24,595,584 $ 1,011,420 $ (975,978 ) $ 24,631,026 Deferred loan origination costs 11,051 — — 11,051 Loans to members 24,606,635 1,011,420 (975,978 ) 24,642,077 Less: Allowance for loan losses (37,078 ) — — (37,078 ) Loans to members, net 24,569,557 1,011,420 (975,978 ) 24,604,999 Other assets 864,334 107,146 (95,953 ) 875,527 Total assets $ 25,433,891 $ 1,118,566 $ (1,071,931 ) $ 25,480,526 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | May 31, 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Investment Income, Interest | $ 5,783 | $ 1,987 | ||
Interest income | 278,491 | 265,915 | ||
Deferred income | 63,711 | $ 65,922 | ||
Deferred Loan Conversion Fees | 58,000 | $ 60,000 | ||
Long Term Fixed Rate Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | [1] | 251,801 | 249,364 | |
Long-term variable-rate loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 9,381 | 5,863 | ||
Line of credit loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | 11,633 | 8,707 | ||
Restructured loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | [2] | 218 | 226 | |
Other Income | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | [3] | 325 | 232 | |
Loans Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income | $ 272,708 | $ 263,928 | ||
[1] | Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. | |||
[2] | Troubled debt restructured (“TDR”) loans. | |||
[3] | Consists of late payment fees and net amortization of deferred loan fees and loan origination costs. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | ||
Interest expense on debt: | |||
Total interest expense | [1],[2] | $ 210,231 | $ 192,731 |
Short-term borrowings | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 19,419 | 10,539 |
Medium-term notes | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 32,410 | 25,116 |
Collateral trust bonds | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 77,705 | 85,277 |
Guaranteed Underwriter Program notes payable | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 35,334 | 35,602 |
Farmer Mac notes payable | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 21,111 | 11,490 |
Other notes payable | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 322 | 390 |
Subordinated deferrable debt | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 9,417 | 9,416 |
Subordinated certificates | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | $ 14,513 | $ 14,901 |
[1] | Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. | ||
[2] | ncludes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2018 | May 31, 2018 | |
Summary of Significant Accounting Policies [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 8,597 | $ 7,825 |
Cumulative effect from adoption of new accounting standard | $ 8,794 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated Assets and Liabilities of VIEs included in CFCs Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2017 |
Variable Interest Entity [Line Items] | |||
Loans to members | $ 25,182,654 | $ 25,178,608 | $ 24,642,077 |
Other assets | 59,006 | 54,503 | |
Total assets | 26,676,207 | 26,690,204 | $ 25,480,526 |
Long-term debt | 18,674,932 | 18,714,960 | |
Other liabilities | 43,737 | 59,951 | |
Total liabilities | 25,169,631 | 25,184,351 | |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure | |||
Variable Interest Entity [Line Items] | |||
Loans to members | 1,139,508 | 1,149,574 | |
Other assets | 10,897 | 10,280 | |
Total assets | 1,150,405 | 1,159,854 | |
Long-term debt | 8,000 | 8,000 | |
Other liabilities | 33,943 | 33,923 | |
Total liabilities | $ 41,943 | $ 41,923 |
Variable Interest Entities - In
Variable Interest Entities - Information on CFCs Credit Commitments to NCSC and RTFC (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | |
Variable Interest Entity [Line Items] | |||
CFC third-party guarantees | $ 776,687 | $ 805,161 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
CFC credit commitments | 5,500,000 | 5,500,000 | |
Borrowings payable to CFC | [1] | 1,106,813 | 1,116,465 |
CFC third-party guarantees | 13,779 | 12,005 | |
Other credit enhancements | 14,314 | 14,655 | |
Total credit enhancements | [2] | 28,093 | 26,660 |
CFC available credit commitments | 1,134,906 | 1,143,125 | |
CFC available credit commitments | $ 4,365,094 | $ 4,356,875 | |
[1] | Borrowings payable to CFC are eliminated in consolidation. | ||
[2] | Excludes interest due on these instruments. |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) $ in Millions | Aug. 31, 2018USD ($) |
Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Maximum Potential Exposure Credit Enhancements | $ 30 |
Investment Securities - Amortiz
Investment Securities - Amortized cost and Fair Value of Equity Securities and Corresponding Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 88,606 | $ 89,332 |
Federal Agricultural Mortgage Corporation Series A preferred stock | Preferred Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | 30,372 | 30,480 |
Federal Agricultural Mortgage Corporation Series B Preferred Stock | Preferred Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | 25,880 | 26,000 |
Federal Agricultural Mortgage Corporation Series C Preferred Stock | Preferred Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | 26,440 | 25,872 |
Federal Agricultural Mortgage Corporation Class A common stock | Common Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 5,914 | $ 6,980 |
Investment Securities - Debt Se
Investment Securities - Debt Securities and Corresponding Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | $ 553,754 | $ 520,519 |
Gross Unrealized Gains | 857 | 840 |
Gross Unrealized Losses | (4,637) | (4,813) |
Debt Securities, Held-to-maturity, Fair Value | 549,974 | 516,546 |
Certificates of deposit | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | 3,650 | 5,148 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 3,650 | 5,148 |
Commercial paper | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | 9,037 | 9,134 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 9,037 | 9,134 |
U.S. agency debt securities | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | 2,431 | 2,000 |
Gross Unrealized Gains | 12 | 16 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 2,443 | 2,016 |
Corporate debt securities | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | 468,059 | 455,721 |
Gross Unrealized Gains | 737 | 714 |
Gross Unrealized Losses | (4,430) | (4,595) |
Debt Securities, Held-to-maturity, Fair Value | 464,366 | 451,840 |
Agency | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | 7,342 | 7,024 |
Gross Unrealized Gains | 50 | 63 |
Gross Unrealized Losses | (1) | 0 |
Debt Securities, Held-to-maturity, Fair Value | 7,391 | 7,087 |
Non-agency | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | 3,453 | 3,453 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | (4) | (3) |
Debt Securities, Held-to-maturity, Fair Value | 3,451 | 3,453 |
Total commercial MBS | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | 10,795 | 10,477 |
Gross Unrealized Gains | 52 | 66 |
Gross Unrealized Losses | (5) | (3) |
Debt Securities, Held-to-maturity, Fair Value | 10,842 | 10,540 |
U.S. state and municipality debt securities | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | 9,617 | 2,147 |
Gross Unrealized Gains | 37 | 24 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 9,654 | 2,171 |
Foreign government debt securities | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | 1,241 | 1,241 |
Gross Unrealized Gains | 5 | 9 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 1,246 | 1,250 |
Other ABS | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held to maturity, at amortized cost | 48,924 | 34,651 |
Gross Unrealized Gains | 14 | 11 |
Gross Unrealized Losses | (202) | (215) |
Debt Securities, Held-to-maturity, Fair Value | $ 48,736 | $ 34,447 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Gross Unrealized Losses for Investments in a Gross Loss Position (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||||
Less than 12 months, Fair value, held-to-maturity | $ 309,628 | $ 308,602 | ||
Less than 12 months, Gross unrealized losses, held-to-maturity | (4,637) | (4,813) | ||
Total Fair Value | 309,628 | 308,602 | ||
Gross Unrealized Losses | (4,637) | (4,813) | ||
Corporate debt securities | ||||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||||
Less than 12 months, Fair value, held-to-maturity | 274,163 | 280,139 | ||
Less than 12 months, Gross unrealized losses, held-to-maturity | (4,430) | (4,595) | ||
Total Fair Value | 274,163 | 280,139 | ||
Gross Unrealized Losses | (4,430) | (4,595) | ||
Agency | ||||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||||
Less than 12 months, Fair value, held-to-maturity | 341 | |||
Less than 12 months, Gross unrealized losses, held-to-maturity | (1) | |||
Total Fair Value | 341 | |||
Gross Unrealized Losses | (1) | |||
Non-agency | ||||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||||
Less than 12 months, Fair value, held-to-maturity | 1,450 | 1,451 | ||
Less than 12 months, Gross unrealized losses, held-to-maturity | (4) | (3) | ||
Total Fair Value | 1,450 | 1,451 | ||
Gross Unrealized Losses | (4) | (3) | ||
Total commercial MBS | ||||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||||
Less than 12 months, Fair value, held-to-maturity | 1,791 | |||
Less than 12 months, Gross unrealized losses, held-to-maturity | (5) | |||
Total Fair Value | 1,791 | |||
Gross Unrealized Losses | (5) | |||
Other ABS | ||||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||||
Less than 12 months, Fair value, held-to-maturity | [1] | 33,674 | 27,012 | |
Less than 12 months, Gross unrealized losses, held-to-maturity | (202) | (215) | [1] | |
Total Fair Value | [1] | 33,674 | 27,012 | |
Gross Unrealized Losses | $ (202) | $ (215) | [1] | |
[1] | Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. |
Investment Securities - Remaini
Investment Securities - Remaining Contractual Maturity Based on Amortized Cost and Fair Value of HTM by Type (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | $ 27,034 | $ 23,393 |
Due 1 Year through 5 Years | 438,230 | 413,982 |
Due 5 Years through 10 Years | 85,037 | 79,691 |
Due 10 Years | 3,453 | 3,453 |
Debt securities held to maturity, at amortized cost | 553,754 | 520,519 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 26,970 | 23,338 |
Due 1 Year through 5 Years | 434,112 | 409,707 |
Due 5 Years through 10 Years | 85,441 | 80,048 |
Due 10 Years | 3,451 | 3,453 |
Debt Securities, Held-to-maturity, Fair Value | $ 549,974 | $ 516,546 |
Due in 1 Year or Less | 2.00% | 1.81% |
Due 1 Year through 5 Years | 2.85% | 2.84% |
Due 5 Years through 10 Years | 3.56% | 3.60% |
Due 10 Years | 2.89% | 2.74% |
Held To Maturity Securities Expected Debt Maturities Weighted Average Yield | 2.92% | 2.91% |
Certificates of deposit | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | $ 3,650 | $ 5,148 |
Due 1 Year through 5 Years | 0 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt securities held to maturity, at amortized cost | 3,650 | 5,148 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 3,650 | 5,148 |
Due 1 Year through 5 Years | 0 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 3,650 | 5,148 |
Commercial paper | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 9,037 | 9,134 |
Due 1 Year through 5 Years | 0 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt securities held to maturity, at amortized cost | 9,037 | 9,134 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 9,037 | 9,134 |
Due 1 Year through 5 Years | 0 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 9,037 | 9,134 |
U.S. agency debt securities | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 2,431 | 2,000 |
Debt securities held to maturity, at amortized cost | 2,431 | 2,000 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 2,443 | 2,016 |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 2,443 | 2,016 |
Corporate debt securities | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 14,347 | 9,111 |
Due 1 Year through 5 Years | 382,249 | 377,384 |
Due 5 Years through 10 Years | 71,463 | 69,226 |
Due 10 Years | 0 | |
Debt securities held to maturity, at amortized cost | 468,059 | 455,721 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 14,283 | 9,056 |
Due 1 Year through 5 Years | 378,300 | 373,284 |
Due 5 Years through 10 Years | 71,783 | 69,500 |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 464,366 | 451,840 |
Agency | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 342 | |
Due 5 Years through 10 Years | 7,000 | 7,024 |
Due 10 Years | 0 | |
Debt securities held to maturity, at amortized cost | 7,342 | 7,024 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 341 | |
Due 5 Years through 10 Years | 7,050 | 7,087 |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 7,391 | 7,087 |
Non-agency | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 0 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 3,453 | 3,453 |
Debt securities held to maturity, at amortized cost | 3,453 | 3,453 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 0 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 3,451 | 3,453 |
Debt Securities, Held-to-maturity, Fair Value | 3,451 | 3,453 |
Total commercial MBS | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 342 | |
Due 5 Years through 10 Years | 7,000 | 7,024 |
Due 10 Years | 3,453 | 3,453 |
Debt securities held to maturity, at amortized cost | 10,795 | 10,477 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 341 | |
Due 5 Years through 10 Years | 7,050 | 7,087 |
Due 10 Years | 3,451 | 3,453 |
Debt Securities, Held-to-maturity, Fair Value | 10,842 | 10,540 |
U.S. state and municipality debt securities | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 5,484 | |
Due 5 Years through 10 Years | 4,133 | 2,147 |
Due 10 Years | 0 | |
Debt securities held to maturity, at amortized cost | 9,617 | 2,147 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 5,492 | |
Due 5 Years through 10 Years | 4,162 | 2,171 |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 9,654 | 2,171 |
Foreign government debt securities | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 1,241 | 1,241 |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt securities held to maturity, at amortized cost | 1,241 | 1,241 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 1,246 | 1,250 |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 1,246 | 1,250 |
Other ABS | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 46,483 | 33,357 |
Due 5 Years through 10 Years | 2,441 | 1,294 |
Due 10 Years | 0 | |
Debt securities held to maturity, at amortized cost | 48,924 | 34,651 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 46,290 | 33,157 |
Due 5 Years through 10 Years | 2,446 | 1,290 |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | $ 48,736 | $ 34,447 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | May 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Equity Securities Unrealized Loss | $ 1,000,000 | ||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | $ 0 | $ 1,151,000 | |
Investment Securities in Unrealized Loss Positions, Number of Positions | 271 | ||
Held To Maturity Securities Expected Debt Maturities Weighted Average Yield | 2.92% | 2.91% | |
Average Contractual Maturity of Held-to-maturity Securities | 4 years | ||
Gain (Loss) on Sale of Debt Investments | $ 0 | $ 0 |
Loans - Outstanding Principal B
Loans - Outstanding Principal Balance and Unadvanced Commitments (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2017 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | $ 25,171,436 | $ 25,167,494 | $ 24,631,026 | ||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11,218 | 11,114 | 11,051 | ||
Loans to members | 25,182,654 | 25,178,608 | $ 24,642,077 | ||
Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 12,908,595 | 12,645,618 | ||
CFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 24,031,929 | 24,017,919 | |||
CFC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 11,988,393 | 11,723,496 | ||
CFC | Distribution | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 19,638,104 | 19,551,511 | |||
CFC | Distribution | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 8,384,392 | 8,188,376 | ||
CFC | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 4,320,866 | 4,397,353 | |||
CFC | Power supply | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 3,463,774 | 3,407,095 | ||
CFC | Statewide and associate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 72,959 | 69,055 | |||
CFC | Statewide and associate | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 140,227 | 128,025 | ||
NCSC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 780,892 | 786,457 | |||
NCSC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 614,200 | 624,663 | ||
RTFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 358,615 | 363,118 | |||
RTFC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 306,002 | 297,459 | ||
Long Term Fixed Rate Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 22,682,597 | 22,696,185 | |||
Long-term variable-rate loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 1,111,679 | 1,039,491 | |||
Long-term variable-rate loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 5,103,629 | 4,952,834 | ||
Long Term Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 23,794,276 | 23,735,676 | |||
Long Term Loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 5,103,629 | 4,952,834 | ||
Line of credit loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 1,377,160 | 1,431,818 | |||
Line of credit loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | $ 7,804,966 | $ 7,692,784 | [1] | ||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. |
Loans - Available Balance Under
Loans - Available Balance Under Unadvanced Commitments and Maturity (Details) - Unadvanced commitments - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | [1] | $ 12,908,595 | $ 12,645,618 | |
2,018 | 1,236,454 | |||
2,019 | 4,700,743 | |||
2,020 | 1,509,526 | |||
2,021 | 2,513,287 | |||
2,022 | 2,529,734 | |||
Thereafter | 418,851 | |||
Line of credit loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | 7,804,966 | 7,692,784 | [1] | |
2,018 | 504,426 | |||
2,019 | 4,144,522 | |||
2,020 | 889,426 | |||
2,021 | 860,833 | |||
2,022 | 1,304,869 | |||
Thereafter | 100,890 | |||
Long-term variable-rate loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | [1] | 5,103,629 | $ 4,952,834 | |
2,018 | 732,028 | |||
2,019 | 556,221 | |||
2,020 | 620,100 | |||
2,021 | 1,652,454 | |||
2,022 | 1,224,865 | |||
Thereafter | $ 317,961 | |||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. |
Loans - Unconditional Committed
Loans - Unconditional Committed Lines of Credit and Maturity (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | |
Unadvanced commitments | |||
Notional maturities of committed lines of credit | |||
Available Balance | [1] | $ 12,908,595 | $ 12,645,618 |
2,018 | 1,236,454 | ||
2,019 | 4,700,743 | ||
2,020 | 1,509,526 | ||
2,021 | 2,513,287 | ||
2,022 | 2,529,734 | ||
Thereafter | 418,851 | ||
Unadvanced commitments not subject to material adverse change clauses | |||
Notional maturities of committed lines of credit | |||
Available Balance | 2,946,596 | $ 2,857,000 | |
2,018 | 218,571 | ||
2,019 | 458,236 | ||
2,020 | 454,348 | ||
2,021 | 609,513 | ||
2,022 | 1,147,488 | ||
Thereafter | $ 58,440 | ||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. |
Loans - Outstanding Pledged as
Loans - Outstanding Pledged as Collateral (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Pledging of Loans and Loans on Deposit | ||
Restricted Cash and Cash Equivalents | $ 8,597 | $ 7,825 |
Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,533,125 | 8,784,024 |
Secured Debt | 7,397,711 | 7,697,711 |
Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Secured Debt | 220,000 | 220,000 |
Notes payable | Federal Agricultural Mortgage Corporation | ||
Pledging of Loans and Loans on Deposit | ||
Secured Debt | 2,777,532 | 2,891,496 |
Clean Renewable Energy Bonds Series 2009A | ||
Pledging of Loans and Loans on Deposit | ||
Restricted Cash and Cash Equivalents | 671 | 415 |
Secured Debt | 11,556 | 11,556 |
Assets Pledged as Collateral | 12,849 | 13,030 |
Guaranteed Underwriter Program notes payable | ||
Pledging of Loans and Loans on Deposit | ||
Secured Debt | 4,840,976 | 4,856,375 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,393,917 | 8,643,344 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 239,509 | 243,418 |
Mortgage notes | Distribution and power supply system mortgage notes | Federal Agricultural Mortgage Corporation | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 3,204,521 | 3,331,775 |
Mortgage notes | Distribution and power supply system mortgage notes | Clean Renewable Energy Bonds Series 2009A | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 12,178 | 12,615 |
Loans Guaranteed by Rural Utilities Service | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 139,208 | 140,680 |
Mortgage notes receivable on deposit | Distribution and power supply system mortgage notes | Federal Financing Bank | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | $ 5,560,856 | $ 5,772,750 |
Loans - Payment Status of Loans
Loans - Payment Status of Loans Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2017 | |
Payment Status of Loans | ||||
Past due | $ 0 | $ 0 | ||
Total recorded investment in loans | 25,171,436 | 25,167,494 | $ 24,631,026 | |
Non-accrual loans | $ 0 | $ 0 | ||
As a % of total loans | ||||
Current (percent) | 100.00% | 100.00% | ||
30-89 days past due (percent) | 0.00% | 0.00% | ||
90 days or more past due (percent) | [1] | 0.00% | 0.00% | |
Total past due (percent) | 0.00% | 0.00% | ||
Total financing receivables (percent) | 100.00% | 100.00% | ||
Non-accrual loans (percent) | 0.00% | 0.00% | ||
CFC | ||||
Payment Status of Loans | ||||
Past due | $ 0 | $ 0 | ||
Total recorded investment in loans | 24,031,929 | 24,017,919 | ||
Non-accrual loans | 0 | 0 | ||
CFC | Distribution | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Total recorded investment in loans | 19,638,104 | 19,551,511 | ||
Non-accrual loans | 0 | 0 | ||
CFC | Power supply | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Total recorded investment in loans | 4,320,866 | 4,397,353 | ||
Non-accrual loans | 0 | 0 | ||
CFC | Statewide and associate | ||||
Payment Status of Loans | ||||
Total recorded investment in loans | 72,959 | 69,055 | ||
NCSC | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Total recorded investment in loans | 780,892 | 786,457 | ||
Non-accrual loans | 0 | 0 | ||
RTFC | ||||
Payment Status of Loans | ||||
Past due | 0 | |||
Total recorded investment in loans | 358,615 | 363,118 | ||
Non-accrual loans | 0 | 0 | ||
Financing Receivables, 1 to 29 Days Past Due [Member] | ||||
Payment Status of Loans | ||||
Current | 25,171,436 | 25,167,494 | ||
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | ||||
Payment Status of Loans | ||||
Current | 24,031,929 | 24,017,919 | ||
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | Distribution | ||||
Payment Status of Loans | ||||
Current | 19,638,104 | 19,551,511 | ||
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | Power supply | ||||
Payment Status of Loans | ||||
Current | 4,320,866 | 4,397,353 | ||
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | Statewide and associate | ||||
Payment Status of Loans | ||||
Current | 72,959 | 69,055 | ||
Financing Receivables, 1 to 29 Days Past Due [Member] | NCSC | ||||
Payment Status of Loans | ||||
Current | 780,892 | 786,457 | ||
Financing Receivables, 1 to 29 Days Past Due [Member] | RTFC | ||||
Payment Status of Loans | ||||
Current | 358,615 | 363,118 | ||
Financing Receivables, 30 to 89 Days Past Due [Member] | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Financing Receivables, 30 to 89 Days Past Due [Member] | CFC | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Financing Receivables, 30 to 89 Days Past Due [Member] | CFC | Distribution | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Financing Receivables, 30 to 89 Days Past Due [Member] | CFC | Power supply | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Financing Receivables, 30 to 89 Days Past Due [Member] | NCSC | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Financing Receivables, 30 to 89 Days Past Due [Member] | RTFC | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Payment Status of Loans | ||||
Past due | [1] | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CFC | ||||
Payment Status of Loans | ||||
Past due | [1] | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CFC | Distribution | ||||
Payment Status of Loans | ||||
Past due | [1] | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CFC | Power supply | ||||
Payment Status of Loans | ||||
Past due | [1] | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | NCSC | ||||
Payment Status of Loans | ||||
Past due | [1] | $ 0 | $ 0 | |
[1] | All loans 90 days or more past due are on nonaccrual status. |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructured Loans (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2017 |
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment in loans | $ 25,171,436 | $ 25,167,494 | $ 24,631,026 |
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage | 100.00% | 100.00% | |
Unadvanced commitments | $ 0 | ||
Nonperforming TDR loans | |||
Financing Receivable, Modifications [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 0 | 0 | |
Performing TDR loans | |||
Financing Receivable, Modifications [Line Items] | |||
Other Commitment | 6,000 | ||
Loans outstanding | $ 12,228 | $ 12,599 | |
Performing TDR Loans As Percentage of Total Loans | 0.05% | 0.05% | |
Total TDR loans | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment in loans | $ 12,228 | $ 12,599 | |
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage | 0.05% | 0.05% | |
CFC | |||
Financing Receivable, Modifications [Line Items] | |||
Total recorded investment in loans | $ 24,031,929 | $ 24,017,919 | |
CFC | Performing TDR loans | |||
Financing Receivable, Modifications [Line Items] | |||
Loans outstanding | $ 6,261 | $ 6,507 | |
Performing TDR Loans As Percentage of Total Loans | 0.03% | 0.03% | |
RTFC | |||
Financing Receivable, Modifications [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 5,967 | $ 6,092 | |
Total recorded investment in loans | 358,615 | 363,118 | |
RTFC | Performing TDR loans | |||
Financing Receivable, Modifications [Line Items] | |||
Loans outstanding | $ 5,967 | $ 6,092 | |
Performing TDR Loans As Percentage of Total Loans | 0.02% | 0.02% |
Loans Impaired Loans - Recorded
Loans Impaired Loans - Recorded Investment and Allowance (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, Related Allowance | $ 1,175 | $ 1,198 |
Impaired Financing Receivable, Recorded Investment | 12,228 | 12,599 |
CFC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 6,261 | 6,507 |
RTFC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 5,967 | 6,092 |
Impaired Financing Receivable, Related Allowance | $ 1,175 | $ 1,198 |
Impaired Loans - Average Record
Impaired Loans - Average Recorded Investment and Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Average recorded investment | ||
Total impaired loans | $ 12,552 | $ 13,122 |
Interest income recognized | ||
Interest impaired loans | 218 | 226 |
CFC | ||
Average recorded investment | ||
Total impaired loans | 6,504 | 6,574 |
Interest income recognized | ||
Interest impaired loans | 142 | 144 |
RTFC | ||
Average recorded investment | ||
Total impaired loans | 6,048 | 6,548 |
Interest income recognized | ||
Interest impaired loans | $ 76 | $ 82 |
Loans - Internal Risk Rating (D
Loans - Internal Risk Rating (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2017 |
Credit Quality | |||
Total recorded investment in loans | $ 25,171,436 | $ 25,167,494 | $ 24,631,026 |
CFC | |||
Credit Quality | |||
Total recorded investment in loans | 24,031,929 | 24,017,919 | |
CFC | Distribution | |||
Credit Quality | |||
Total recorded investment in loans | 19,638,104 | 19,551,511 | |
CFC | Power supply | |||
Credit Quality | |||
Total recorded investment in loans | 4,320,866 | 4,397,353 | |
CFC | Statewide and associate | |||
Credit Quality | |||
Total recorded investment in loans | 72,959 | 69,055 | |
NCSC | |||
Credit Quality | |||
Total recorded investment in loans | 780,892 | 786,457 | |
RTFC | |||
Credit Quality | |||
Total recorded investment in loans | 358,615 | 363,118 | |
Pass | |||
Credit Quality | |||
Total recorded investment in loans | 24,985,891 | 24,989,464 | |
Pass | CFC | |||
Credit Quality | |||
Total recorded investment in loans | 23,852,797 | 23,846,504 | |
Pass | CFC | Distribution | |||
Credit Quality | |||
Total recorded investment in loans | 19,507,777 | 19,429,121 | |
Pass | CFC | Power supply | |||
Credit Quality | |||
Total recorded investment in loans | 4,272,061 | 4,348,328 | |
Pass | CFC | Statewide and associate | |||
Credit Quality | |||
Total recorded investment in loans | 72,959 | 69,055 | |
Pass | NCSC | |||
Credit Quality | |||
Total recorded investment in loans | 780,892 | 786,457 | |
Pass | RTFC | |||
Credit Quality | |||
Total recorded investment in loans | 352,202 | 356,503 | |
Special Mention | |||
Credit Quality | |||
Total recorded investment in loans | 6,804 | 7,376 | |
Special Mention | CFC | |||
Credit Quality | |||
Total recorded investment in loans | 6,358 | 6,853 | |
Special Mention | CFC | Distribution | |||
Credit Quality | |||
Total recorded investment in loans | 6,358 | 6,853 | |
Special Mention | CFC | Statewide and associate | |||
Credit Quality | |||
Total recorded investment in loans | 0 | 0 | |
Special Mention | NCSC | |||
Credit Quality | |||
Total recorded investment in loans | 0 | 0 | |
Special Mention | RTFC | |||
Credit Quality | |||
Total recorded investment in loans | 446 | 523 | |
Substandard | |||
Credit Quality | |||
Total recorded investment in loans | 178,741 | 170,654 | |
Substandard | CFC | |||
Credit Quality | |||
Total recorded investment in loans | 172,774 | 164,562 | |
Substandard | CFC | Distribution | |||
Credit Quality | |||
Total recorded investment in loans | 123,969 | 115,537 | |
Substandard | CFC | Power supply | |||
Credit Quality | |||
Total recorded investment in loans | 48,805 | 49,025 | |
Substandard | RTFC | |||
Credit Quality | |||
Total recorded investment in loans | 5,967 | 6,092 | |
Doubtful | |||
Credit Quality | |||
Total recorded investment in loans | $ 0 | 0 | |
Doubtful | RTFC | |||
Credit Quality | |||
Total recorded investment in loans | $ 0 |
Loans - Additional Information
Loans - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2018USD ($)memberpower_supply_systemdistribution_systemborrowerassociate | Aug. 31, 2017USD ($) | May 31, 2018USD ($)power_supply_systemdistribution_systemborrowerassociate | May 31, 2017 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Borrowers With TDR Loans | 1 | 1 | |||
Line of Credit Commitments as percentage of unadvanced loan commitment | 60.00% | ||||
Long-term Loan commitments as percentage of unadvanced loan commitment | 40.00% | ||||
Loans Receivable Cost of Loans Sold | $ 0 | $ 70,000,000 | |||
Number of States in which Entity Operates | 50 | ||||
Number of Associates in Consolidated Membership | associate | 216 | ||||
Number of Members in Consolidated Membership | member | 1,449 | ||||
Total recorded investment in loans | $ 25,171,436,000 | 24,631,026,000 | $ 25,167,494,000 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | 0 | |||
Allowance for Doubtful Accounts Receivable, Write-offs | 0 | 0 | |||
Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 12,908,595,000 | 12,645,618,000 | ||
Unadvanced commitments not subject to material adverse change clauses | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | 2,946,596,000 | 2,857,000,000 | |||
Commitments to Extend Credit Subject to Material Adverse Change Clause | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | 9,962,000,000 | 9,789,000,000 | |||
Loans Guaranteed by Farmer Mac | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 651,000,000 | 660,000,000 | |||
Loans Guaranteed by Rural Utilities Service | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 159,000,000 | 161,000,000 | |||
Nonperforming TDR loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | |||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 0 | $ 0 | |||
Performing line of credit for Troubled Debt Restructuring Borrower [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | 6,000,000 | ||||
Total recorded investment in loans | 1,000,000 | 1,000,000 | |||
Nonperforming Financial Instruments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | |||
Substandard | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 178,741,000 | 170,654,000 | |||
Substandard | Unsecured Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 17,000,000 | 7,000,000 | |||
CFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 24,031,929,000 | 24,017,919,000 | |||
CFC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 11,988,393,000 | 11,723,496,000 | ||
CFC | Substandard | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | $ 172,774,000 | $ 164,562,000 | |||
Credit Concentration Risk | Loans Receivable Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk, Percentage | 2.00% | 2.00% | |||
Concentration Risk Number of Borrowers | borrower | 20 | 20 | |||
Customer Concentration Risk | Loans Receivable Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk, Percentage | 23.00% | 23.00% | |||
Geographic Concentration Risk | Loans Receivable Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk, Percentage | 15.00% | 15.00% | |||
Product Concentration Risk | Loans Receivable Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk, Percentage | 99.00% | 99.00% | |||
Distribution | CFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | $ 19,638,104,000 | $ 19,551,511,000 | |||
Distribution | CFC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 8,384,392,000 | 8,188,376,000 | ||
Distribution | CFC | Substandard | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | $ 123,969,000 | $ 115,537,000 | |||
Distribution | Credit Concentration Risk | Loans Receivable Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk Number of Borrowers | distribution_system | 9 | 10 | |||
Power supply | CFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | $ 4,320,866,000 | $ 4,397,353,000 | |||
Power supply | CFC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 3,463,774,000 | 3,407,095,000 | ||
Power supply | CFC | Substandard | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | $ 48,805,000 | $ 49,025,000 | |||
Power supply | Credit Concentration Risk | Loans Receivable Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk Number of Borrowers | power_supply_system | 10 | 9 | |||
Associates | Credit Concentration Risk | Loans Receivable Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk Number of Borrowers | associate | 1 | 1 | |||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. |
Allowance for Loan Losses - Ro
Allowance for Loan Losses - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | May 31, 2018 | May 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | $ 18,692 | $ 37,078 | $ 18,801 | $ 37,376 |
Provision for Loan and Lease Losses | (109) | (298) | ||
CFC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | 12,508 | 29,521 | 12,300 | 29,499 |
Provision for Loan and Lease Losses | 208 | 22 | ||
NCSC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | 2,012 | 2,736 | 2,082 | 2,910 |
Provision for Loan and Lease Losses | (70) | (174) | ||
RTFC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | 4,172 | 4,821 | $ 4,419 | $ 4,967 |
Provision for Loan and Lease Losses | $ (247) | $ (146) |
Allowance for Loan Losses - Re
Allowance for Loan Losses - Recorded Investments (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2017 | May 31, 2017 |
Ending balance of the allowance: | ||||
Collectively evaluated loans | $ 17,517 | $ 17,603 | ||
Specific allowance | 1,175 | 1,198 | ||
Total ending balance of the allowance | 18,692 | 18,801 | $ 37,078 | $ 37,376 |
Recorded investment in loans: | ||||
Collectively evaluated loans | 25,159,208 | 25,154,895 | ||
Individually evaluated loans | 12,228 | 12,599 | ||
Total recorded investment in loans | 25,171,436 | 25,167,494 | 24,631,026 | |
Loans and Leases Receivable, Net Amount | 25,152,744 | 25,148,693 | ||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11,218 | 11,114 | 11,051 | |
CFC | ||||
Ending balance of the allowance: | ||||
Collectively evaluated loans | 12,508 | 12,300 | ||
Specific allowance | 0 | |||
Total ending balance of the allowance | 12,508 | 12,300 | 29,521 | 29,499 |
Recorded investment in loans: | ||||
Collectively evaluated loans | 24,025,668 | 24,011,412 | ||
Individually evaluated loans | 6,261 | 6,507 | ||
Total recorded investment in loans | 24,031,929 | 24,017,919 | ||
Loans and Leases Receivable, Net Amount | 24,019,421 | 24,005,619 | ||
NCSC | ||||
Ending balance of the allowance: | ||||
Collectively evaluated loans | 2,012 | 2,082 | ||
Specific allowance | 0 | 0 | ||
Total ending balance of the allowance | 2,012 | 2,082 | 2,736 | 2,910 |
Recorded investment in loans: | ||||
Collectively evaluated loans | 780,892 | 786,457 | ||
Individually evaluated loans | 0 | 0 | ||
Total recorded investment in loans | 780,892 | 786,457 | ||
Loans and Leases Receivable, Net Amount | 778,880 | 784,375 | ||
RTFC | ||||
Ending balance of the allowance: | ||||
Collectively evaluated loans | 2,997 | 3,221 | ||
Specific allowance | 1,175 | 1,198 | ||
Total ending balance of the allowance | 4,172 | 4,419 | $ 4,821 | $ 4,967 |
Recorded investment in loans: | ||||
Collectively evaluated loans | 352,648 | 357,026 | ||
Individually evaluated loans | 5,967 | 6,092 | ||
Total recorded investment in loans | 358,615 | 363,118 | ||
Loans and Leases Receivable, Net Amount | $ 354,443 | $ 358,699 |
Allowance for Loan Losses - Ad
Allowance for Loan Losses - Additional Information (Details) - USD ($) $ in Millions | Aug. 31, 2018 | May 31, 2018 |
Receivables [Abstract] | ||
Credit reserve for unadvanced loan commitments | $ 1 | $ 1 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Details) - USD ($) | Aug. 31, 2018 | May 31, 2018 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 3,793,136,000 | $ 3,795,910,000 |
Short Term Debt as Percentage of Debt Outstanding | 15.00% | 15.00% |
Revolving credit agreements | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 0 | $ 0 |
Maximum borrowing capacity | 3,085,000,000 | 3,085,000,000 |
Letter of Credit Maximum Amount Available | 300,000,000 | |
Three Year Agreement | Revolving credit agreements | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | 1,492,000,000 | 1,492,000,000 |
Five Year Agreement | Revolving credit agreements | ||
Short-term Debt [Line Items] | ||
Maximum borrowing capacity | $ 1,593,000,000 | $ 1,593,000,000 |
Short-Term Borrowings - Outsta
Short-Term Borrowings - Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 3,793,136 | $ 3,795,910 |
Commercial paper sold through dealers, net of discounts | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 929,380 | 1,064,266 |
Commercial paper sold directly to members, at par | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 1,286,441 | 1,202,105 |
Select notes | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 799,240 | 780,472 |
Daily liquidity fund notes | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 535,090 | 400,635 |
Farmer Mac notes payable | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 100,000 | |
Medium-term notes sold to members | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 242,985 | $ 248,432 |
Short-Term Borrowings - Commitm
Short-Term Borrowings - Commitments under Revolving Credit Agreements (Details) - Revolving credit agreements - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2018 | May 31, 2017 | May 31, 2018 | ||
Revolving Credit Agreements | ||||
Maximum borrowing capacity | $ 3,085,000 | $ 3,085,000 | ||
Letters of credit outstanding | 3,000 | 3,000 | ||
Total available | 3,082,000 | 3,082,000 | ||
Three Year Agreement | ||||
Revolving Credit Agreements | ||||
Maximum borrowing capacity | 1,492,000 | 1,492,000 | ||
Total available | $ 1,492,000 | 1,492,000 | ||
Debt Instrument, Maturity Date | Nov. 20, 2020 | |||
Line of Credit Facility Commitment Fee Percentage (percent) | [1] | 0.075% | 0.075% | |
Five Year Agreement | ||||
Revolving Credit Agreements | ||||
Maximum borrowing capacity | $ 1,593,000 | 1,593,000 | ||
Letters of credit outstanding | 3,000 | 3,000 | ||
Total available | $ 1,590,000 | $ 1,590,000 | ||
Debt Instrument, Maturity Date | Nov. 20, 2022 | |||
Line of Credit Facility Commitment Fee Percentage (percent) | [1] | 0.10% | 0.10% | |
[1] | Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. |
Long-Term Debt Outstanding (Det
Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Long-term debt | ||
Long-term debt | $ 18,674,932 | $ 18,714,960 |
Medium-term notes sold through dealers | ||
Long-term debt | ||
Long-term Debt, Gross | 3,317,219 | 3,026,472 |
Medium-term notes sold to members | ||
Long-term debt | ||
Long-term Debt, Gross | 388,748 | 395,389 |
Unsecured Medium Term Notes | ||
Long-term debt | ||
Long-term Debt, Gross | 3,705,967 | 3,421,861 |
Unamortized discount | (1,175) | (1,256) |
Debt issuance costs | (21,844) | (22,237) |
Long-term debt | 3,682,948 | 3,398,368 |
Other Unsecured Notes Payable | ||
Long-term debt | ||
Long-term Debt, Gross | 18,892 | 18,892 |
Unamortized discount | (253) | (277) |
Debt issuance costs | (62) | (68) |
Unsecured notes payable | ||
Long-term debt | ||
Long-term debt | 18,577 | 18,547 |
Unsecured Debt | ||
Long-term debt | ||
Long-term debt | 3,701,525 | 3,416,915 |
Collateral trust bonds | ||
Long-term debt | ||
Long-term Debt, Gross | 7,617,711 | 7,917,711 |
Unamortized discount | (247,723) | (250,421) |
Debt issuance costs | (26,419) | (28,197) |
Long-term debt | 7,343,569 | 7,639,093 |
Guaranteed Underwriter Program notes payable | ||
Long-term debt | ||
Long-term Debt, Gross | 4,840,976 | 4,856,375 |
Debt issuance costs | 0 | (232) |
Long-term debt | 4,840,976 | 4,856,143 |
Farmer Mac notes payable | ||
Long-term debt | ||
Long-term Debt, Gross | 2,777,532 | 2,791,496 |
Other Secured Notes Payable | ||
Long-term debt | ||
Long-term Debt, Gross | 11,556 | 11,556 |
Debt issuance costs | (226) | (243) |
Long-term debt | 11,330 | 11,313 |
Notes payable | ||
Long-term debt | ||
Long-term debt | 7,629,838 | 7,658,952 |
Secured Debt | ||
Long-term debt | ||
Long-term debt | $ 14,973,407 | $ 15,298,045 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | Jul. 12, 2018 | May 31, 2018 | |
Long-term debt | ||||
Losses on early extinguishment of debt | $ 7,100 | $ 0 | ||
Long-term debt | 18,674,932 | $ 18,714,960 | ||
Federal Agricultural Mortgage Corporation | ||||
Long-term debt | ||||
Maximum borrowing capacity | 5,500,000 | |||
10.375% CTB | ||||
Long-term debt | ||||
Repayments of Secured Debt | 300,000 | |||
Long-term Debt, Gross | $ 1,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 10.375% | |||
Guaranteed Underwriter Program notes payable | ||||
Long-term debt | ||||
Long-term Debt, Gross | 4,840,976 | 4,856,375 | ||
Long-term debt | 4,840,976 | 4,856,143 | ||
Available under committed loan facilities | 1,225,000 | |||
Collateral trust bonds | ||||
Long-term debt | ||||
Long-term Debt, Gross | 7,617,711 | 7,917,711 | ||
Long-term debt | 7,343,569 | 7,639,093 | ||
Notes payable | ||||
Long-term debt | ||||
Long-term debt | $ 7,629,838 | 7,658,952 | ||
Debt Instrument Fee Percentage | 0.30% | |||
Farmer Mac notes payable | ||||
Long-term debt | ||||
Long-term Debt, Gross | $ 2,777,532 | 2,791,496 | ||
Federal Agricultural Mortgage Corporation First Revolving Note Purchase Agreement | Federal Agricultural Mortgage Corporation | ||||
Long-term debt | ||||
Long-term debt | 2,778,000 | 2,791,000 | ||
Maximum borrowing capacity | $ 5,200,000 | |||
Federal Agricultural Mortgage Corporation Second Revolving Note Purchase Agreement | Federal Agricultural Mortgage Corporation | ||||
Long-term debt | ||||
Maximum borrowing capacity | $ 300,000 |
Subordinated Deferrable Debt Su
Subordinated Deferrable Debt Subordinated Deferrable Debt Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Subordinated Deferrable Debt | ||
Subordinated Debt | $ 742,445 | $ 742,410 |
4.75 percent due 2043 | ||
Subordinated Deferrable Debt | ||
Subordinated Debt | $ 400,000 | $ 400,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% |
5.25 Percent Due 2046 | ||
Subordinated Deferrable Debt | ||
Subordinated Debt | $ 350,000 | $ 350,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% |
Subordinated Debt | ||
Subordinated Deferrable Debt | ||
Debt issuance costs | $ 7,555 | $ 7,590 |
Derivative Notional Amounts and
Derivative Notional Amounts and Weighted-Average Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2018 | May 31, 2017 | May 31, 2018 | |
Pay-fixed swaps | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 7,474,762 | $ 6,987,999 | |
Derivative Weighted Average Interest Rate Paid Percentage | 2.82% | 2.83% | |
Derivative Weighted Average Interest Rate Received Percentage | 2.34% | 2.30% | |
Receive fixed swaps | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 3,699,000 | 3,824,000 | |
Derivative Weighted Average Interest Rate Paid Percentage | 2.96% | 2.93% | |
Derivative Weighted Average Interest Rate Received Percentage | 2.52% | 2.50% | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 11,173,762 | 10,811,999 | |
Derivative Weighted Average Interest Rate Paid Percentage | 2.87% | 2.86% | |
Derivative Weighted Average Interest Rate Received Percentage | 2.40% | 2.37% | |
Forward Contracts | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 65,000 | 256,154 | |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 11,238,762 | $ 11,068,153 |
Derivatives - Balance Sheet Imp
Derivatives - Balance Sheet Impact (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Derivative [Line Items] | ||
Derivative assets | $ 256,186 | $ 244,526 |
Derivative liabilities | 267,675 | 275,932 |
Derivative Asset, Notional Amount | 5,391,495 | 5,264,971 |
Derivative Liability, Notional Amount | 5,947,267 | 5,903,182 |
Derivative Assets (Liabilities), at Fair Value, Net | 267,675 | 275,932 |
Treasury Lock | ||
Derivative [Line Items] | ||
Derivative liabilities | 1,036 | 1,059 |
Derivative Liability, Notional Amount | 100,000 | 100,000 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative liabilities | 266,639 | 274,873 |
Derivative Liability, Notional Amount | $ 5,847,267 | $ 5,803,182 |
Derivatives Offsetting (Details
Derivatives Offsetting (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Derivative [Line Items] | ||
Derivative liabilities | $ 267,675 | $ 275,932 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 256,186 | 244,526 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 256,186 | 244,526 |
Derivative, Collateral, Obligation to Return Securities | 196,187 | 196,633 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 59,999 | 47,893 |
Derivative liabilities | 266,639 | 274,873 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 266,639 | 274,873 |
Derivative, Collateral, Right to Reclaim Securities | 196,187 | 196,633 |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 70,452 | 78,240 |
Treasury Lock | ||
Derivative [Line Items] | ||
Derivative liabilities | 1,036 | 1,059 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 1,036 | 1,059 |
Derivative, Collateral, Right to Reclaim Securities | 0 | 0 |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 1,036 | $ 1,059 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities Derivatives - Income Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Derivative [Line Items] | ||
Gain (Loss) on Sale of Derivatives | $ (20,222) | |
Unrealized Gain (Loss) on Derivatives | $ 20,012 | (25,976) |
Derivative gains (losses) | 7,183 | (46,198) |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Gain (Loss) on Sale of Derivatives | (12,829) | (20,222) |
Unrealized Gain (Loss) on Derivatives | 20,012 | (25,976) |
Derivative gains (losses) | $ 7,183 | $ (46,198) |
Derivatives - Rating Triggers (
Derivatives - Rating Triggers (Details) - Interest rate swaps $ in Thousands | Aug. 31, 2018USD ($) | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 8,194,542 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | (73,284) | |
Assets Received for Immediate Settlement Aggregate Fair Value | 49,195 | |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (24,089) | |
Moody's, A3 Rating Standard Poor's A- rating | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 54,890 | [1] |
Assets Needed for Immediate Settlement, Aggregate Fair Value | (8,767) | [1] |
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | [1] |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (8,767) | [1] |
Moodys Baa 1 Rating Standard Poor's BBB Plus Rating | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 7,355,092 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | (53,994) | |
Assets Received for Immediate Settlement Aggregate Fair Value | 44,183 | |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (9,811) | |
Moody's Baa 2 Rating Standard Poor's BBB Rating | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 528,919 | [2] |
Assets Needed for Immediate Settlement, Aggregate Fair Value | 0 | [2] |
Assets Received for Immediate Settlement Aggregate Fair Value | 5,012 | [2] |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | 5,012 | [2] |
Moodys Baa3 Rating Standard Poor's BB Rating | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 255,641 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | (10,523) | |
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | $ (10,523) | |
[1] | Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. | |
[2] | Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively. |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2018 | May 31, 2017 | May 31, 2018 | |
Derivative [Line Items] | |||
Long-term debt | $ 18,674,932 | $ 18,714,960 | |
Derivative Liability, Notional Amount | 5,947,267 | 5,903,182 | |
Accumulated Other comprehensive income (loss) cumulative changes in net gain (loss) | 1,000 | ||
Treasury Lock | |||
Derivative [Line Items] | |||
Derivative Liability, Notional Amount | 100,000 | 100,000 | |
Interest Rate Contracts and Treasury Lock | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 265,000 | ||
Assets Needed for Immediate Settlement, Aggregate Fair Value | 3,000 | ||
Interest Rate Swaps and Treasury Lock [Member] | |||
Derivative [Line Items] | |||
Concentration Risk, Percentage | 24.00% | ||
Derivative, Net Liability Position, Aggregate Fair Value | 75,000 | ||
Designated as Hedging Instrument | Treasury Lock | |||
Derivative [Line Items] | |||
Derivative Liability, Notional Amount | 100,000 | ||
Guaranteed Underwriter Program notes payable | |||
Derivative [Line Items] | |||
Long-term debt | 4,840,976 | $ 4,856,143 | |
Guaranteed Underwriter Program notes payable | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Long-term debt | 100,000 | ||
Maximum | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
Derivative [Line Items] | |||
Other Comprehensive Income (Loss) unrealized gain (loss) | $ 1,000 |
Equity Components (Details)
Equity Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | May 31, 2018 | May 31, 2017 | |
Equity | ||||
Prior Years Cumulative Derivative Forward Value and Foreign Currency Adjustments | $ 30,831 | $ 332,525 | ||
Unrealized Gain (Loss) on Derivatives | (20,012) | $ 25,976 | ||
Total Cumulative Derivative Forward Value and Foreign Currency Adjustments | (11,160) | (30,831) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,506,576 | 1,061,580 | 1,505,853 | $ 1,098,805 |
Retained equity | 1,474,705 | 1,465,789 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (214) | 11,959 | 8,544 | 13,175 |
Stockholders' Equity Attributable to Parent | 1,474,491 | 1,474,333 | ||
Noncontrolling interests | 32,085 | 31,520 | ||
Membership Fees | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 969 | 969 | ||
Cooperative educational fund | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 1,640 | 1,976 | ||
Membership Fees and Educational Fund | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 2,609 | 2,945 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,609 | 2,544 | 2,945 | 2,900 |
Members’ Capital Reserve | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 763,986 | 811,493 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 687,785 | 630,305 | 687,785 | 630,305 |
Patronage Capital Allocated | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 687,785 | 687,785 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 763,986 | 716,481 | 811,493 | 761,701 |
Other unallocated net income (loss) | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 31,485 | (5,603) | ||
Unallocated Net Income (Loss) | ||||
Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 20,325 | (328,995) | $ (36,434) | $ (338,128) |
CFC | ||||
Equity | ||||
Unrealized Gain (Loss) on Derivatives | $ 19,671 | $ 301,694 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | May 31, 2018 | May 31, 2017 | |
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (214) | $ 11,959 | $ 8,544 | $ 13,175 |
Cumulative effect from adoption of new accounting standard | (8,794) | |||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | (1,151) | ||
Unrealized gains on cash flow hedge | 24 | 0 | ||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Foreclosed Asset | 12 | (65) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 36 | (1,216) | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 10,865 | 8,794 | 12,016 | |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | (1,151) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | (1,151) | ||
AOCI, Derivative Qualifying as Hedge, Excluded Component, Parent [Member] | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,920 | 3,407 | 3,039 | 3,531 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (119) | (124) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (119) | (124) | ||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,035) | 103 | (1,059) | 171 |
Unrealized gains on cash flow hedge | 24 | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | (68) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 24 | (68) | ||
Accumulated Defined Benefit Plans Adjustment, Net Transition Attributable to Parent | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,099) | (2,416) | $ (2,230) | $ (2,543) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 131 | 127 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 131 | $ 127 | ||
Retained Earnings, Unappropriated | ||||
Stockholder's Equity [Line Items] | ||||
Cumulative effect from adoption of new accounting standard | $ (8,794) |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2018 | Aug. 31, 2017 | May 31, 2018 | May 31, 2017 | |
Stockholder's Equity [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,506,576 | $ 1,061,580 | $ 1,505,853 | $ 1,098,805 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 47,978 | 9,015 | ||
Patronage Refunds | $ 47,507 | 45,220 | ||
Fiscal Period Duration | 40 years | |||
Expected Reclassification from Accumulated Other Comprehensive Income over Next Twelve Months Net of Tax | $ 1,000 | |||
Patronage Capital Allocated | ||||
Stockholder's Equity [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 763,986 | 716,481 | 811,493 | 761,701 |
Patronage Refunds | 47,507 | 45,220 | ||
Members’ Capital Reserve | ||||
Stockholder's Equity [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 687,785 | $ 630,305 | $ 687,785 | $ 630,305 |
Patronage Capital Retired | ||||
Stockholder's Equity [Line Items] | ||||
Fiscal Period Duration | 39 years | |||
CFC | Patronage Capital Allocated | ||||
Stockholder's Equity [Line Items] | ||||
Patronage Refunds | $ 48,000 | |||
Retained Patronage Allocations | $ 95,000 | |||
Patronage Refunds Percentage of Allocation of Net Earnings | 50.00% | |||
CFC | Cooperative educational fund | ||||
Stockholder's Equity [Line Items] | ||||
Retained Patronage Allocations | $ 1,000 | |||
CFC | Members’ Capital Reserve | ||||
Stockholder's Equity [Line Items] | ||||
Retained Patronage Allocations | $ 57,000 |
Guarantees Outstanding (Details
Guarantees Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | |
Guarantees | |||
Guarantor obligations | $ 776,687 | $ 805,161 | |
CFC | |||
Guarantees | |||
Guarantor obligations | 762,908 | 793,156 | |
CFC | Distribution | |||
Guarantees | |||
Guarantor obligations | 197,527 | 201,993 | |
CFC | Power supply | |||
Guarantees | |||
Guarantor obligations | 561,999 | 587,837 | |
CFC | Statewide and associate | |||
Guarantees | |||
Guarantor obligations | 3,382 | 3,326 | |
NCSC | |||
Guarantees | |||
Guarantor obligations | 12,205 | 10,431 | |
RTFC | |||
Guarantees | |||
Guarantor obligations | 1,574 | 1,574 | |
Long-term tax-exempt bonds | |||
Guarantees | |||
Guarantor obligations | [1] | 316,385 | 316,985 |
Letters of credit | |||
Guarantees | |||
Guarantor obligations | [2] | 316,731 | 343,970 |
Other guarantees | |||
Guarantees | |||
Guarantor obligations | $ 143,571 | $ 144,206 | |
[1] | Represents the outstanding principal amount of long-term fixed-rate and variable-rate guaranteed bonds. | ||
[2] | Reflects our maximum potential exposure for letters of credit. |
Guarantees - Additional Informa
Guarantees - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2018 | May 31, 2018 | ||
Guarantees | |||
Guarantor obligations | $ 776,687 | $ 805,161 | |
Guarantee Obligations Unsecured | $ 316,000 | $ 344,000 | |
Guarantee Obligations Unsecured Commitment as Percentage of Total Commitment | 41.00% | 43.00% | |
Guarantee Liability Recorded | $ 10,000 | $ 11,000 | |
Guaranty Liabilities Contingent | 1,000 | 1,000 | |
Guaranty Liabilities | 9,000 | 10,000 | |
Long-term variable-rate loans | |||
Guarantees | |||
Guarantee Obligations Liquidity Provided to Member Carrying Value | 249,000 | ||
Long-term tax-exempt bonds | |||
Guarantees | |||
Guarantor obligations | [1] | 316,385 | 316,985 |
Financial Guarantee | Long-term fixed-rate bonds | |||
Guarantees | |||
Guarantor obligations | 67,000 | ||
Financial Guarantee | Long Term Fixed Rate Loans [Member] | |||
Guarantees | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | 94,000 | ||
Financial Guarantee | Long-term variable-rate loans | |||
Guarantees | |||
Guarantor obligations | 249,000 | 250,000 | |
Letters of credit | |||
Guarantees | |||
Guarantor obligations | [2] | 316,731 | 343,970 |
Guarantee Obligations Secured | 119,000 | 120,000 | |
Master Letter of Credit | Master Letter of Credit | |||
Guarantees | |||
Letter of Credit Facility Maximum Additional Amount Potentially Required to be Issued | 67,000 | ||
Other guarantees | |||
Guarantees | |||
Guarantor obligations | 143,571 | 144,206 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 144,000 | $ 145,000 | |
[1] | Represents the outstanding principal amount of long-term fixed-rate and variable-rate guaranteed bonds. | ||
[2] | Reflects our maximum potential exposure for letters of credit. |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 | Aug. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 265,905 | $ 230,999 | |
Cash and Cash Equivalents, Fair Value Disclosure | 265,905 | 230,999 | |
Restricted cash | 8,597 | 7,825 | |
Time deposits | 0 | 100,000 | |
Equity securities | 88,606 | 89,332 | |
Debt Securities, Held-to-maturity | 553,754 | 520,519 | |
Debt Securities, Held-to-maturity, Fair Value | 549,974 | 516,546 | |
Deferred Compensation Plan Assets | 5,626 | 5,194 | |
Loans and Leases Receivable Commercial, Net of Allowance | 25,163,962 | 25,159,807 | $ 24,604,999 |
Loans Receivable, Fair Value Disclosure | 24,071,721 | 24,167,886 | |
Accrued interest receivable | 124,343 | 127,442 | |
Debt service reserve restricted funds | 17,151 | 17,151 | |
Derivative assets | 256,186 | 244,526 | |
Short-term borrowings | 3,793,136 | 3,795,910 | |
Short-term Debt, Fair Value | 3,793,280 | 3,795,799 | |
Long-term debt | 18,674,932 | 18,714,960 | |
Long-term Debt, Fair Value | 18,842,450 | 18,909,276 | |
Accrued interest payable | 205,898 | 149,284 | |
Guaranty Liabilities Contingent and Noncontingent | 9,858 | 10,589 | |
Guarantees, Fair Value Disclosure | 9,630 | 10,454 | |
Derivative liabilities | 267,675 | 275,932 | |
Subordinated deferrable debt | 742,445 | 742,410 | |
Subordinated Debt Obligations, Fair Value Disclosure | 762,678 | 766,088 | |
Members Subordinated Certificates | 1,378,097 | 1,379,982 | |
Members Subordinated Certificates, At Fair Value | 1,378,097 | 1,380,004 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 265,905 | 230,999 | |
Restricted cash | 8,597 | 7,825 | |
Equity securities | 88,606 | 89,332 | |
Deferred Compensation Plan Assets | 5,626 | 5,194 | |
Accrued interest receivable | 0 | ||
Debt service reserve restricted funds | 17,151 | 17,151 | |
Short-term Debt, Fair Value | 0 | ||
Accrued interest payable | 0 | ||
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Time deposits | 100,000 | ||
Debt Securities, Held-to-maturity, Fair Value | 549,974 | 516,546 | |
Accrued interest receivable | 124,343 | 127,442 | |
Derivative assets | 256,186 | 244,526 | |
Short-term Debt, Fair Value | 3,793,280 | 3,695,799 | |
Long-term Debt, Fair Value | 11,345,230 | 11,373,216 | |
Accrued interest payable | 205,898 | 149,284 | |
Derivative liabilities | 267,675 | 275,932 | |
Subordinated Debt Obligations, Fair Value Disclosure | 762,678 | 766,088 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans Receivable, Fair Value Disclosure | 24,071,721 | 24,167,886 | |
Short-term Debt, Fair Value | 100,000 | ||
Long-term Debt, Fair Value | 7,497,220 | 7,536,060 | |
Guarantees, Fair Value Disclosure | 9,630 | 10,454 | |
Members Subordinated Certificates, At Fair Value | $ 1,378,097 | $ 1,380,004 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Aug. 31, 2018 | May 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 88,606 | $ 89,332 |
Deferred Compensation Plan Assets | 5,626 | 5,194 |
Derivative assets | 256,186 | 244,526 |
Derivative liabilities | 267,675 | 275,932 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 88,606 | 89,332 |
Deferred Compensation Plan Assets | 5,626 | 5,194 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 256,186 | 244,526 |
Derivative liabilities | 267,675 | 275,932 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 88,606 | 89,332 |
Deferred Compensation Plan Assets | 5,626 | 5,194 |
Derivative assets | 256,186 | 244,526 |
Derivative liabilities | 267,675 | 275,932 |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 88,606 | 89,332 |
Deferred Compensation Plan Assets | 5,626 | 5,194 |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 256,186 | 244,526 |
Derivative liabilities | $ 267,675 | $ 275,932 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Assets on a Nonrecurring Basis | $ 0 | $ 0 |
Fair Value Liabilities on a Nonrecurring Basis | $ 0 | $ 0 |
Business Segments - Segment Res
Business Segments - Segment Results and Total Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Aug. 31, 2018 | Aug. 31, 2017 | May 31, 2018 | May 31, 2017 | ||
Statement of operations: | |||||
Interest income | $ 278,491 | $ 265,915 | |||
Interest expense | [1],[2] | (210,231) | (192,731) | ||
Net interest income | 68,260 | 73,184 | |||
Provision for loan losses | 109 | 298 | |||
Net interest income after benefit for loan losses | 68,369 | 73,482 | |||
Fee and other income | 3,185 | 3,945 | |||
Non-interest income: | |||||
Gain (Loss) on Sale of Derivatives | (20,222) | ||||
Unrealized Gain (Loss) on Derivatives | (20,012) | 25,976 | |||
Derivative gains (losses) | 7,183 | (46,198) | |||
Results of operations of foreclosed assets | 0 | (24) | |||
Total non-interest income | 10,368 | (42,277) | |||
Non-interest expense: | |||||
General and administrative expenses | (23,205) | (21,636) | |||
Losses on early extinguishment of debt | (7,100) | 0 | |||
Other non-interest expense | (394) | (522) | |||
Total non-interest expense | (30,699) | (22,158) | |||
Income (loss) before income taxes | 48,038 | 9,047 | |||
Income tax expense | (60) | (32) | |||
Net income | 47,978 | 9,015 | |||
Assets: | |||||
Loans Receivable, Gross, Commercial and Industrial | 25,182,654 | 24,642,077 | $ 25,178,608 | ||
Less: Allowance for loan losses | (18,692) | (37,078) | (18,801) | $ (37,376) | |
Loans to members, net | 25,163,962 | 24,604,999 | 25,159,807 | ||
Other assets | 1,512,245 | 875,527 | |||
Total assets | 26,676,207 | 25,480,526 | 26,690,204 | ||
Total recorded investment in loans | 25,171,436 | 24,631,026 | 25,167,494 | ||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11,218 | 11,051 | $ 11,114 | ||
CFC | |||||
Statement of operations: | |||||
Interest income | 276,243 | 263,411 | |||
Interest expense | (210,050) | (192,505) | |||
Net interest income | 66,193 | 70,906 | |||
Provision for loan losses | 109 | 298 | |||
Net interest income after benefit for loan losses | 66,302 | 71,204 | |||
Fee and other income | 4,473 | 3,888 | |||
Non-interest income: | |||||
Gain (Loss) on Sale of Derivatives | (12,562) | (19,564) | |||
Unrealized Gain (Loss) on Derivatives | (19,671) | 26,111 | |||
Derivative gains (losses) | 7,109 | (45,675) | |||
Results of operations of foreclosed assets | 24 | ||||
Total non-interest income | 11,582 | (41,811) | |||
Non-interest expense: | |||||
General and administrative expenses | (22,425) | (19,738) | |||
Losses on early extinguishment of debt | (7,100) | ||||
Other non-interest expense | (394) | (522) | |||
Total non-interest expense | (29,919) | (20,260) | |||
Income (loss) before income taxes | 47,965 | 9,133 | |||
Net income | 47,965 | 9,133 | |||
Assets: | |||||
Loans Receivable, Gross, Commercial and Industrial | 25,149,960 | 24,606,635 | |||
Less: Allowance for loan losses | (18,692) | (37,078) | |||
Loans to members, net | 25,131,268 | 24,569,557 | |||
Other assets | 1,501,315 | 864,334 | |||
Total assets | 26,632,583 | 25,433,891 | |||
Total recorded investment in loans | 25,138,742 | 24,595,584 | |||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11,218 | 11,051 | |||
Other | |||||
Statement of operations: | |||||
Interest income | 12,984 | 10,949 | |||
Interest expense | (10,917) | (8,671) | |||
Net interest income | 2,067 | 2,278 | |||
Provision for loan losses | 0 | ||||
Net interest income after benefit for loan losses | 2,067 | 2,278 | |||
Fee and other income | 564 | 400 | |||
Non-interest income: | |||||
Gain (Loss) on Sale of Derivatives | (267) | (658) | |||
Unrealized Gain (Loss) on Derivatives | 341 | 135 | |||
Derivative gains (losses) | 74 | (523) | |||
Total non-interest income | 638 | (123) | |||
Non-interest expense: | |||||
General and administrative expenses | (2,374) | (1,898) | |||
Other non-interest expense | (258) | (343) | |||
Total non-interest expense | (2,632) | (2,241) | |||
Income (loss) before income taxes | 73 | (86) | |||
Income tax expense | (60) | (32) | |||
Net income | 13 | (118) | |||
Assets: | |||||
Loans Receivable, Gross, Commercial and Industrial | 1,139,507 | 1,011,420 | |||
Loans to members, net | 1,139,507 | 1,011,420 | |||
Other assets | 106,902 | 107,146 | |||
Total assets | 1,246,409 | 1,118,566 | |||
Total recorded investment in loans | 1,139,507 | 1,011,420 | |||
Elimination | |||||
Statement of operations: | |||||
Interest income | (10,736) | (8,445) | |||
Interest expense | 10,736 | 8,445 | |||
Net interest income | 0 | 0 | |||
Provision for loan losses | 0 | ||||
Net interest income after benefit for loan losses | 0 | 0 | |||
Fee and other income | (1,852) | (343) | |||
Non-interest income: | |||||
Derivative gains (losses) | 0 | 0 | |||
Total non-interest income | (1,852) | (343) | |||
Non-interest expense: | |||||
General and administrative expenses | 1,594 | 0 | |||
Other non-interest expense | 258 | 343 | |||
Total non-interest expense | 1,852 | 343 | |||
Assets: | |||||
Loans Receivable, Gross, Commercial and Industrial | (1,106,813) | (975,978) | |||
Loans to members, net | (1,106,813) | (975,978) | |||
Other assets | (95,972) | (95,953) | |||
Total assets | (1,202,785) | (1,071,931) | |||
Total recorded investment in loans | $ (1,106,813) | $ (975,978) | |||
[1] | Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. | ||||
[2] | ncludes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. |