Cover Page
Cover Page | 12 Months Ended |
May 31, 2021USD ($)shares | |
Cover [Abstract] | |
Document Type | 10-K |
Document Annual Report | true |
Current Fiscal Year End Date | --05-31 |
Document Period End Date | May 31, 2021 |
Document Transition Report | false |
Entity File Number | 1-7102 |
Entity Registrant Name | NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION |
Entity Incorporation, State or Country Code | DC |
Entity Tax Identification Number | 52-0891669 |
Entity Address, Address Line One | 20701 Cooperative Way, |
Entity Address, City or Town | Dulles, |
Entity Address, State or Province | VA |
Entity Address, Postal Zip Code | 20166 |
City Area Code | (703) |
Local Phone Number | 467-1800 |
Document Information [Line Items] | |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | shares | 0 |
Entity Public Float | $ | $ 0 |
Entity Central Index Key | 0000070502 |
Amendment Flag | false |
Entity Small Business | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
7.35% Collateral Trust Bonds, due 2026 | |
Document Information [Line Items] | |
Title of 12(b) Security | 7.35% Collateral Trust Bonds, due 2026 |
Trading Symbol | NRUC 26 |
Security Exchange Name | NYSE |
5.50 Percent Due 2064 | |
Document Information [Line Items] | |
Title of 12(b) Security | 5.50% Subordinated Notes, due 2064 |
Trading Symbol | NRUC |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Income Statement [Abstract] | |||
Interest income | $ 1,116,601 | $ 1,151,286 | $ 1,135,670 |
Interest expense | (702,063) | (821,089) | (836,209) |
Net interest income | 414,538 | 330,197 | 299,461 |
Benefit (provision) for credit losses | (28,507) | (35,590) | 1,266 |
Net interest income after benefit (provision) for credit losses | 386,031 | 294,607 | 300,727 |
Non-interest income: | |||
Fee and other income | 18,929 | 22,961 | 15,355 |
Derivative gains (losses) | 506,301 | (790,151) | (363,341) |
Investment securities gains (losses) | 1,495 | 9,431 | (1,799) |
Total non-interest income | 526,725 | (757,759) | (349,785) |
Non-interest expense: | |||
Salaries and employee benefits | (55,258) | (54,522) | (49,824) |
Other general and administrative expenses | (39,447) | (46,645) | (43,342) |
Losses on early extinguishment of debt | (1,456) | (683) | (7,100) |
Other non-interest expense | (1,619) | (25,588) | (1,675) |
Total non-interest expense | (97,780) | (127,438) | (101,941) |
Income (loss) before income taxes | 814,976 | (590,590) | (150,999) |
Income tax benefit (provision) | (998) | 1,160 | (211) |
Net income (loss) | 813,978 | (589,430) | (151,210) |
Less: Net (income) loss attributable to noncontrolling interests | (2,311) | 4,190 | 1,979 |
Net income (loss) attributable to CFC | $ 811,667 | $ (585,240) | $ (149,231) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 813,978 | $ (589,430) | $ (151,210) |
Other comprehensive income (loss): | |||
Unrealized gains on cash flow hedges | 0 | 0 | 1,059 |
Reclassification of derivative gains to earnings | (412) | (441) | (468) |
Defined benefit plan adjustments | 2,297 | (1,322) | (488) |
Other comprehensive income (loss) | 1,885 | (1,763) | 103 |
Total comprehensive income (loss) | 815,863 | (591,193) | (151,107) |
Less: Total comprehensive (income) loss attributable to noncontrolling interests | (2,311) | 4,190 | 1,979 |
Total comprehensive income (loss) attributable to CFC | $ 813,552 | $ (587,003) | $ (149,128) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | ||
Assets: | ||||
Cash and cash equivalents | $ 295,063 | $ 671,372 | ||
Restricted cash | [1] | 8,298 | 8,647 | |
Total cash, cash equivalents and restricted cash | 303,361 | 680,019 | ||
Investment securities: | ||||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 576,175 | 309,400 | ||
Equity securities, at fair value | 35,102 | 60,735 | ||
Total investment securities, at fair value | 611,277 | 370,135 | ||
Loans to members | 28,426,961 | 26,702,380 | [2] | |
Less: Allowance for credit losses | (85,532) | (53,125) | ||
Loans to members, net | 28,341,429 | 26,649,255 | ||
Accrued interest receivable | 107,856 | 117,138 | ||
Other receivables | 37,197 | 41,099 | ||
Fixed assets, net | 91,882 | 89,137 | ||
Derivative assets | 121,259 | 173,195 | ||
Other assets | 24,102 | 37,627 | ||
Total assets | 29,638,363 | 28,157,605 | ||
Liabilities: | ||||
Accrued interest payable | 123,672 | 139,619 | ||
Total debt outstanding | ||||
Short-term borrowings | 4,582,096 | 3,961,985 | ||
Long-term debt | 20,603,123 | 19,712,024 | ||
Subordinated deferrable debt | 986,315 | 986,119 | ||
Members’ subordinated certificates: | ||||
Membership subordinated certificates | 628,594 | 630,483 | ||
Loan and guarantee subordinated certificates | 386,896 | 482,965 | ||
Member capital securities | 239,170 | 226,170 | ||
Total members’ subordinated certificates | 1,254,660 | 1,339,618 | ||
Total debt outstanding | 27,426,194 | 25,999,746 | ||
Deferred income | 51,198 | 59,303 | ||
Derivative liabilities | 584,989 | 1,258,459 | ||
Other liabilities | 52,431 | 51,656 | ||
Total liabilities | 28,238,484 | 27,508,783 | ||
CFC equity: | ||||
Retained equity | 1,374,973 | 628,031 | ||
Accumulated other comprehensive loss | (25) | (1,910) | ||
Total CFC equity | 1,374,948 | 626,121 | ||
Noncontrolling interests | 24,931 | 22,701 | ||
Total equity | 1,399,879 | 648,822 | ||
Total liabilities and equity | 29,638,363 | 28,157,605 | ||
Collateral pledged | $ 210,894 | $ 210,894 | ||
[1] | (1) Restricted cash consists primarily of member funds held in escrow for certain specifically designed cooperative programs. | |||
[2] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Statement of Financial Position [Abstract] | ||
Collateral pledged | $ 210,894 | $ 210,894 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Cumulative effect from adoption of new accounting standard | Adjusted Balance | Noncontrolling interests | Noncontrolling interestsAdjusted Balance | Total CFC equity | Total CFC equityCumulative effect from adoption of new accounting standard | Total CFC equityAdjusted Balance | Accumulated other comprehensive income | Accumulated other comprehensive incomeCumulative effect from adoption of new accounting standard | Accumulated other comprehensive incomeAdjusted Balance | CFC retained equity | CFC retained equityCumulative effect from adoption of new accounting standard | CFC retained equityAdjusted Balance | Unallocated Net Income (Loss) | Unallocated Net Income (Loss)Cumulative effect from adoption of new accounting standard | Unallocated Net Income (Loss)Adjusted Balance | Members' capital reserve | Members' capital reserveAdjusted Balance | Patronage Capital Allocated | Patronage Capital AllocatedAdjusted Balance | Membership Fees and Education Fund | Membership Fees and Education FundAdjusted Balance |
Beginning balance at May. 31, 2018 | $ 1,505,853 | $ 1,505,853 | $ 31,520 | $ 31,520 | $ 1,474,333 | $ 1,474,333 | $ 8,544 | $ (8,794) | $ (250) | $ 1,465,789 | $ 8,794 | $ 1,474,583 | $ (36,434) | $ 8,794 | $ (27,640) | $ 687,785 | $ 687,785 | $ 811,493 | $ 811,493 | $ 2,945 | $ 2,945 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income (loss) | (151,210) | (1,979) | (149,231) | (149,231) | (318,135) | 71,312 | 96,592 | 1,000 | |||||||||||||||
Other comprehensive income (loss) | 103 | 103 | 103 | ||||||||||||||||||||
Patronage capital retirement | (50,415) | (2,908) | (47,507) | (47,507) | (47,507) | ||||||||||||||||||
Other | (449) | 514 | (963) | (963) | (963) | ||||||||||||||||||
Ending balance at May. 31, 2019 | 1,303,882 | 27,147 | 1,276,735 | (147) | 1,276,882 | (345,775) | 759,097 | 860,578 | 2,982 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income (loss) | (589,430) | (4,190) | (585,240) | (585,240) | (730,773) | 48,223 | 96,310 | 1,000 | |||||||||||||||
Other comprehensive income (loss) | (1,763) | (1,763) | (1,763) | ||||||||||||||||||||
Patronage capital retirement | (64,755) | (1,933) | (62,822) | (62,822) | (62,822) | ||||||||||||||||||
Other | 888 | 1,677 | (789) | (789) | (789) | ||||||||||||||||||
Ending balance at May. 31, 2020 | 648,822 | $ (3,900) | $ 644,922 | 22,701 | $ 22,701 | 626,121 | $ (3,900) | $ 622,221 | (1,910) | $ (1,910) | 628,031 | $ (3,900) | $ 624,131 | (1,076,548) | $ (3,900) | $ (1,080,448) | 807,320 | $ 807,320 | 894,066 | $ 894,066 | 3,193 | $ 3,193 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income (loss) | 813,978 | 2,311 | 811,667 | 811,667 | 618,577 | 102,429 | 89,761 | 900 | |||||||||||||||
Other comprehensive income (loss) | 1,885 | 1,885 | 1,885 | ||||||||||||||||||||
Patronage capital retirement | (61,911) | (2,054) | (59,857) | (59,857) | (59,857) | ||||||||||||||||||
Other | 1,005 | 1,973 | (968) | (968) | (968) | ||||||||||||||||||
Ending balance at May. 31, 2021 | $ 1,399,879 | $ 24,931 | $ 1,374,948 | $ (25) | $ 1,374,973 | $ (461,871) | $ 909,749 | $ 923,970 | $ 3,125 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 813,978 | $ (589,430) | $ (151,210) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred loan fees | (9,390) | (9,309) | (10,009) |
Amortization of debt issuance costs and deferred charges | 10,608 | 9,095 | 10,439 |
Amortization of discount on long-term debt | 11,925 | 10,896 | 10,605 |
Amortization of issuance costs for bank revolving lines of credit | 4,434 | 4,972 | 5,324 |
Depreciation and amortization | 7,959 | 9,238 | 9,305 |
Provision (benefit) for credit losses | 28,507 | 35,590 | (1,266) |
Loss on early extinguishment of debt | 1,456 | 683 | 7,100 |
Fixed assets impairment | 0 | 31,284 | 0 |
Gain on sale of land | 0 | (7,713) | 0 |
Unrealized (gains) losses on equity and debt securities | (1,015) | (5,975) | 1,799 |
Derivative forward value (gains) losses | (621,946) | 734,278 | 319,730 |
Changes in operating assets and liabilities: | |||
Accrued interest receivable | 9,282 | 16,467 | (6,163) |
Accrued interest payable | (15,947) | (19,378) | 9,713 |
Deferred income | 1,285 | 10,973 | 2,077 |
Other | (1,181) | (12,456) | (10,401) |
Net cash provided by operating activities | 239,955 | 219,215 | 197,043 |
Cash flows from investing activities: | |||
Advances on loans, net | (1,724,253) | (785,190) | (738,171) |
Investments in fixed assets, net | (9,862) | (9,565) | (14,725) |
Proceeds from sale of land | 0 | 21,268 | 0 |
Net proceeds from time deposits | 0 | 0 | 100,000 |
Purchase of trading securities | (397,522) | (3,883) | 0 |
Proceeds from sales and maturities of trading securities | 127,875 | 277,687 | 0 |
Proceeds from redemption of equity securities | 30,000 | 25,000 | 0 |
Purchases of held-to-maturity debt securities | 0 | (76,339) | (80,123) |
Proceeds from maturities of held-to-maturity debt securities | 0 | 69,726 | 35,340 |
Net cash used in investing activities | (1,973,762) | (481,296) | (697,679) |
Cash flows from financing activities: | |||
Proceeds from (repayments of) short-term borrowings, net | 808,252 | (208,340) | (452,618) |
Proceeds from short-term borrowings with original maturity > 90 days | 3,081,069 | 3,022,910 | 1,652,005 |
Repayments of short-term borrowings with original maturity > 90 days | (3,269,210) | (2,460,311) | (1,387,571) |
Payments for issuance costs for revolving bank lines of credit | 0 | (1,025) | (2,382) |
Proceeds from issuance of long-term debt, net of discount and issuance costs | 3,055,220 | 2,156,711 | 3,281,595 |
Payments for retirement of long-term debt | (2,186,458) | (1,675,288) | (2,806,639) |
Payments made for early extinguishment of debt | (1,456) | (683) | (7,100) |
Payments for issuance costs for subordinated deferrable debt | 0 | (84) | (6,535) |
Proceeds from issuance of subordinated deferrable debt | 0 | 0 | 250,000 |
Proceeds from issuance of members’ subordinated certificates | 14,292 | 9,621 | 1,986 |
Payments for retirement of members’ subordinated certificates | (84,659) | (24,572) | (24,861) |
Payments for retirement of patronage capital | (59,889) | (63,035) | (49,860) |
Repayments for membership fees, net | (12) | (8) | (4) |
Net cash provided by financing activities | 1,357,149 | 755,896 | 448,016 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (376,658) | 493,815 | (52,620) |
Beginning cash, cash equivalents and restricted cash | 680,019 | 186,204 | 238,824 |
Ending cash, cash equivalents and restricted cash | 303,361 | 680,019 | 186,204 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 687,145 | 805,086 | 801,966 |
Cash paid for income taxes | 219 | 20 | 112 |
Noncash financing and investing activities: | |||
Net decrease in debt service reserve funds/debt service reserve certificates | $ 0 | $ 2,560 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 12 Months Ended |
May 31, 2021 | |
Accounting Policies [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 systems, electric 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. National Cooperative Services Corporation (“NCSC”) is a taxable cooperative incorporated in 1981 in the District of Columbia as a member-owned cooperative association. NCSC’s principal purpose is to provide financing to members of CFC, entities eligible to be members of CFC and the for-profit and nonprofit entities that are owned, operated or controlled by or provide significant benefit to certain members of CFC. NCSC’s membership consists of distribution systems, power supply systems and statewide and regional associations that are members of CFC. CFC is the primary source of funding for NCSC and manages NCSC’s business operations under a management agreement that is automatically renewable on an annual basis unless terminated by either party. NCSC pays CFC a fee and, in exchange, CFC reimburses NCSC for loan losses under a guarantee agreement. As a taxable cooperative, NCSC pays income tax based on its reported taxable income and deductions. NCSC is headquartered with CFC in Dulles, Virginia. Rural Telephone Finance Cooperative (“RTFC”) is a taxable Subchapter T cooperative association originally incorporated in South Dakota in 1987 and reincorporated as a member-owned cooperative association in the District of Columbia in 2005. RTFC’s principal purpose is to provide financing for its rural telecommunications members and their affiliates. RTFC’s membership consists of a combination of not-for-profit and for-profit entities. CFC is the sole lender to and manages the business operations of RTFC through a management agreement that is automatically renewable on an annual basis unless terminated by either party. RTFC pays CFC a fee and, in exchange, CFC reimburses RTFC for loan losses under a guarantee agreement. As permitted under Subchapter T of the Internal Revenue Code, RTFC pays income tax based on its net income, excluding patronage-sourced earnings allocated to its patrons. RTFC is headquartered with CFC in Dulles, Virginia. Basis of Presentation and Use of Estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. 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 credit losses and the fair value of financial assets and liabilities. Actual results could differ from these estimates. Certain reclassifications have been made to prior periods to conform to the current presentation. Risks and Uncertainties While the novel strain of coronavirus that causes coronavirus disease 2019 (“COVID-19”) continues to persist, disruptions caused by the virus have been significantly reduced as a result of the manufacturing and distribution of recently developed COVID-19 vaccines. Although most of the initial restrictions have been relaxed or lifted, the risk of future COVID-19 outbreaks remains. New information may emerge regarding the severity of COVID-19 variants or the effectiveness of the vaccines developed, causing federal, state and local governments to take additional actions to contain COVID-19 or to treat its impact. We continue to closely monitor developments; however, we cannot predict the future impact of COVID-19 on our operational and financial performance, or the specific ways the pandemic uniquely impacts our members, all of which continue to involve uncertainties. Principles of Consolidation The accompanying 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 May 31, 2021 or May 31, 2020. All intercompany balances and transactions have been eliminated. NCSC and RTFC are VIEs that are required to be consolidated by CFC. Unless stated otherwise, references to “we, “our” or “us” relate to CFC and its consolidated entities. Variable Interest Entities A VIE is an entity that has a total equity investment at risk that is not sufficient to finance its activities without additional subordinated financial support provided by another party, or where the group of equity holders does not have (i) the ability to make decisions about the entity’s activities that most significantly impact its economic performance; (ii) the obligation to absorb the entity’s expected losses; or (iii) the right to receive the entity’s expected residual returns. NCSC and RTFC meet the definition of VIEs because they do not have sufficient equity investment at risk to finance their activities without additional financial support. When evaluating an entity for possible consolidation, we must determine whether or not we have a variable interest in the entity. If it is determined that we do not have a variable interest in the entity, no further analysis is required and we do not consolidate the entity. If we have a variable interest in the entity, we must evaluate whether we are the primary beneficiary based on an assessment of quantitative and qualitative factors. We are considered the primary beneficiary holder if we have a controlling financial interest in the VIE that provides (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. We consolidate the results of NCSC and RTFC with CFC because CFC is the primary beneficiary holder. Cash and Cash Equivalents Cash, certificates of deposit due from banks and other investments with original maturities of less than 90 days are classified as cash and cash equivalents. Restricted Cash Restricted cash, which consists primarily of member funds held in escrow for certain specifically designed cooperative programs, totaled $8 million and $9 million as of May 31, 2021 and 2020, respectively. Investment Securities Our investment securities portfolio consists of equity and debt securities. We record purchases and sales of 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 are reported at fair value on our consolidated balance sheets with unrealized gains and losses recorded as a component of other non-interest income. All of our debt securities were classified as trading as of May 31, 2021 and 2020. Accordingly, we also report our debt securities at fair value on our consolidated balance sheets and record unrealized gains and losses as a component of non-interest income. Interest income is generally recognized over the contractual life of the securities based on the effective yield method. Loans to Members We originate loans to members and classify loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff as held for investment. Loans classified as held for investment are reported based on the unpaid principal balance, net of principal charge-offs, and deferred loan origination costs. Deferred loan origination costs are amortized using the straight-line method, which approximates the effective interest method, into interest income over the life of the loan. Accrued Interest Receivable As permitted by the current expected credit loss (“CECL”) model, we elected to continue reporting accrued interest on loans separately on our consolidated balance sheets as a component of the line item accrued interest receivable rather than as a component of loans to members. Accrued interest receivable amounts generally represent three months or less of accrued interest on loans outstanding. Because our policy is to write off past-due accrued interest receivable in a timely manner, we elected not to measure an allowance for credit losses for accrued interest receivable on loans outstanding, which totaled $93 million and $96 million as of May 31, 2021 and May 31, 2020, respectively. We also elected to exclude accrued interest receivable from the credit quality disclosures required under CECL. Interest Income Interest income on performing loans is accrued and recognized as interest income based on the contractual rate of interest. Loan origination costs and nonrefundable loan fees that meet the definition of loan origination fees are deferred and generally recognized in interest income as yield adjustments over the period to maturity of the loan using the effective interest method. Troubled Debt Restructurings A loan modification is considered a troubled debt restructuring (“TDR”) if the borrower is experiencing financial difficulties and a concession is granted to the borrower that we would not otherwise consider. Under CECL, we are required to estimate an allowance for lifetime expected credit losses for TDR loans. As discussed below under “Allowance for Credit Losses—Loan Portfolio—Asset-Specific Allowance,” TDR loans are evaluated on an individual basis in estimating expected credit losses. Credit losses for anticipated TDRs are accounted for similarly to TDRs and are identified when there is a reasonable expectation that a TDR will be executed with the borrower and when we expect the modification to affect the timing or amount of payments and/or the payment term. We generally classify TDR loans as nonperforming and place the loan on nonaccrual status, although in many cases such loans were already classified as nonperforming prior to modification. These loans may be returned to performing status and the accrual of interest resumed if the borrower performs under the modified terms for an extended period of time, and we expect the borrower to continue to perform in accordance with the modified terms. In certain limited circumstances in which a TDR loan is current at the modification date, the loan may remain on accrual status at the time of modification. Nonperforming Loans We classify loans as nonperforming when contractual principal or interest is 90 days past due or when we believe the collection of principal and interest in full is not reasonably assured. When a loan is classified as nonperforming, we generally place the loan on nonaccrual status. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed against current-period interest income. Interest income on nonaccrual loans is subsequently recognized only upon the receipt of cash payments. However, if we believe the ultimate collectability of the loan principal is in doubt, cash received is applied against the principal balance of the loan. Nonaccrual loans generally are returned to accrual status when principal and interest becomes and remains current for a specified period and repayment of the remaining contractual principal and interest is reasonably assured. Charge-Offs We charge off loans or a portion of a loan when we determine that the loan is uncollectible. The charge-off of uncollectible principal amounts results in a reduction to the allowance for credit losses for our loan portfolio. Recoveries of previously charged off principal amounts result in an increase to the allowance. Allowance for Credit Losses—Loan Portfolio Current Allowance Methodology Beginning June 1, 2020, the allowance for credit losses is determined based on management’s current estimate of expected credit losses over the remaining contractual term, adjusted as appropriate for estimated prepayments, of loans in our loan portfolio as of each balance sheet date. The allowance for credit losses for our loan portfolio is reported on our consolidated balance sheet as a valuation account that is deducted from loans to members to present the net amount we expect to collect over the life of our loans. We immediately recognize an allowance for expected credit losses upon origination of a loan. Adjustments to the allowance each period for changes in our estimate of lifetime expected credit losses are recognized in earnings through the provision for credit losses presented on our consolidated statements of operations. We estimate our allowance for lifetime expected credit losses for our loan portfolio using a probability of default/loss given default methodology. Our allowance for credit losses consists of a collective allowance and an asset-specific allowance. The collective allowance is established for loans in our portfolio that share similar risk characteristics and are therefore evaluated on a collective, or pool, basis in measuring expected credit losses. The asset-specific allowance is established for loans in our portfolio that do not share similar risk characteristics with other loans in our portfolio and are therefore evaluated on an individual basis in measuring expected credit losses. Expected credit losses are estimated based on historical experience, current conditions and forecasts, if applicable, that affect the collectibility of the reported amount. Since inception in 1969, CFC has experienced limited defaults and losses as the utility sector generally tends to be less sensitive to changes in the economy than other sectors largely due to the essential nature of the service provided. The losses we have incurred were not tied to economic factors, but rather to distinct operating issues related to each borrower. Given that our borrowers’ creditworthiness, and accordingly our loss experience, has not correlated to specific underlying macroeconomic variables, such as U.S. unemployment rates or gross domestic product (“GDP”) growth, we have not made adjustments to our historical loss rates for any economic forecast. We consider the need, however, to adjust our historical loss information for differences in the specific characteristics of our existing loan portfolio based on an evaluation of relative qualitative factors, such as differences in the composition of our loan portfolio, our underwriting standards, problem loan trends, the quality of our credit review function, as well as changes in the regulatory environment and other pertinent external factors that may impact the amount of future credit losses. Collective Allowance We employ a quantitative methodology and a qualitative framework to measure the collective component of our allowance for expected credit losses. The first element in our quantitative methodology involves the segmentation of our loan portfolio into loan pools that share similar risk characteristics. We disaggregate our loan portfolio into segments that reflect the member borrower type, which is based on the utility sector of the borrower because the key operational, infrastructure, regulatory, environmental, customer and financial risks of each sector are similar in nature. Our primary member borrower types consist of CFC electric distribution, CFC electric power supply, CFC statewide and associate, NCSC and RTFC telecommunications. Our portfolio segments align with the sectors generally seen in the utilities industry. We further stratify each portfolio into loan pools based on our internal borrower risk ratings, as our borrower risk ratings provide important information on the collectibility of each of our loan portfolio segments. We then apply loss factors, consisting of the probability of default and loss given default, to the scheduled loan-level amortization amounts over the life of the loans for each of our loan pools. Below we discuss the source and basis for the key inputs, which include borrower risk ratings and the loss factors, in measuring expected credit losses for our loan portfolio. • Borrower Risk Ratings : We evaluate each borrower and loan facility in our loan portfolio and assign internal borrower and loan facility risk ratings based on consideration of a number of quantitative and qualitative factors. Each risk rating is reassessed annually following the receipt of the borrower’s audited financial statements; however, interim risk-rating adjustments may occur as a result of updated information affecting a borrower’s ability to fulfill its obligations or other significant developments and trends. Our internally assigned borrower risk ratings are intended to assess the general creditworthiness of the borrower and probability of default. We use our internal borrower risk ratings, which we map to the equivalent credit ratings by external rating agencies, to differentiate risk within each of our portfolio segments and loan pools. We provide additional information on our borrower risk ratings below in “Note 4—Loans.” • Probability of Default : The probability of default, or default rate, represents the likelihood that a borrower will default over a particular time horizon. Because of our limited default history, we utilize third-party default data for the utility sector as a proxy to estimate default rates for each of our loan pools. The third-party default data provide historical default rates, based on credit ratings and remaining maturities of outstanding bonds, for the utility sector. Based on the mapping and alignment of our internal borrower risk ratings to equivalent credit ratings provided in the third-party utility default table, we apply the corresponding cumulative default rates to the scheduled amortization amounts over the remaining term of the loans in each of our loan pools. • Loss Given Default : The loss given default, or loss severity, represents the estimated loss, net of recoveries, on a loan that would be realized in the event of a borrower default. While we utilize third-party default data, we utilize our lifetime historical loss experience to estimate loss given default, or the recovery rate, for each of our loan portfolio segments. We believe our internal historical loss severity rates provide a more reliable estimate than third-party loss severity data due to the organizational structure and operating environment of rural utility cooperatives, our lending practice of generally requiring a senior security position on the assets and revenue of borrowers for long-term loans, the investment our member borrowers have in CFC and therefore the collaborative approach we generally take in working with members in the event that a default occurs. In addition to the quantitative methodology used in our collective measurement of expected credit losses, management performs a qualitative evaluation and analyses of relevant factors, such as changes in risk-management practices, current and past underwriting standards, specific industry issues and trends and other subjective factors. Based on our assessment, we did not make a qualitative adjustment to the collective allowance for credit losses measured under our quantitative methodology as of May 31, 2021 or at adoption of CECL on June 1, 2020. Asset-Specific Allowance We generally consider nonperforming loans as well as loans that have been or are anticipated to be modified under a troubled debt restructuring for individual evaluation given the risk characteristics of such loans. Factors we consider in measuring the extent of expected credit loss include the payment status, the collateral value, the borrower’s financial condition, guarantor support, the probability of collecting scheduled principal and interest payments when due, anticipated modifications of payment structure or term for troubled borrowers, and recoveries if they can be reasonably estimated. We generally measure the expected credit loss as the difference between the amortized cost basis in the loan and the present value of the expected future cash flows from the borrower, which is generally discounted at the loan’s effective interest rate, or the fair value of the collateral, if the loan is collateral dependent. Prior Allowance Methodology Prior to June 1, 2020, the allowance for credit losses was determined based the incurred loss model under which management estimated probable losses inherent in our loan portfolio as of each balance sheet date. We used a probability of default/loss given default methodology in estimating probable losses based on a loss emergence period of five years. We utilized the same portfolio segments, borrower risk-rating framework, third-party default data and internal historical recovery rates under the incurred loss model that we use in determining the allowance based on the current expected credit loss model. Unadvanced Loan Commitments Unadvanced commitments represent amounts for which we have approved and executed loan contracts, but the funds have not been advanced. The majority of the unadvanced commitments reported represent amounts that are subject to material adverse change clauses at the time of the loan advance. Prior to making an advance on these facilities, we would confirm 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 the borrower is currently in compliance with loan terms and conditions. The remaining unadvanced commitments relate to line of credit loans that are not subject to a material adverse change clause at the time of each loan advance. As such, we would be required to advance amounts on these committed facilities as long as the borrower is in compliance with the terms and conditions of the loan commitment. Unadvanced loan commitments related to line of credit loans are typically for periods not to exceed five years and are generally revolving facilities used for working capital and backup liquidity purposes. Historically, we have experienced a very low utilization rate on line of credit loan facilities, whether or not there is a material adverse change clause. Since we generally do not charge a fee on the unadvanced portion of the majority of our loan facilities, our borrowers will typically request long-term facilities to fund construction work plans and other capital expenditures for periods of up to five years and draw down on the facility over that time. These factors contribute to our expectation that the majority of the unadvanced line of credit loan commitments will expire without being fully drawn upon and that the total unadvanced amount does not necessarily represent future cash funding requirements. Reserve for Credit Losses—Off-Balance Sheet Credit Exposures We also maintain a reserve for credit losses for our off-balance sheet credit exposures related to unadvanced loan commitments and financial guarantees. Because our business processes and credit risks associated with our off-balance sheet credit exposures are essentially the same as for our loans, we measure expected credit losses for our off-balance sheet exposures, after adjusting for the probability of funding these exposures. consistent with the methodology used for our funded outstanding exposures. We include the reserve for expected credit losses for our off-balance sheet credit exposures as a component of other liabilities on our consolidated balance sheets. Fixed Assets Fixed assets are recorded at cost less accumulated depreciation. We recognize depreciation expense for each category of our depreciable fixed assets on a straight-line basis over the estimated useful life, which ranges from three recognized depreciation expense o f $8 million, $9 million a nd $9 million in fiscal years 2021, 2020 and 2019, respectively. The following table displays the components of our fixed assets. Our headquarters facility in Loudoun County, Virginia, which is owned by CFC, is included as a component of building and building equipment. Table 1.1: Fixed Assets May 31, (Dollars in thousands) 2021 2020 Building and building equipment $ 50,090 $ 50,087 Furniture and fixtures 6,039 6,015 Computer software and hardware 54,582 49,944 Other 1,048 1,051 Depreciable fixed assets 111,759 107,097 Less: Accumulated depreciation (66,777) (59,007) Net depreciable fixed assets 44,982 48,090 Land 23,796 23,796 Software development in progress 23,104 17,251 Fixed assets, net $ 91,882 $ 89,137 In fiscal year 2020, management made a decision to abandon a project to develop an internal-use loan origination and servicing platform. The project was intended to update our loan platform to provide increased functionality and flexibility and enhance the operational efficiency of our lending, loan servicing and loan accounting processes. As a result of the decision to abandon the project, we wrote off the capitalized amounts related to this project, which were recorded as a component of computer software and hardware and software development in progress, and recognized a non-cash impairment charge of $31 million in the fourth quarter of fiscal year 2020. The impairment charge is reported as a component of other non-interest expense on our consolidated statements of operations. Foreclosed Assets Foreclosed assets acquired through our lending activities in satisfaction of indebtedness may be held in operating entities created and controlled by CFC and presented separately in our consolidated balance sheets under foreclosed assets, net. These assets are initially recorded at estimated fair value as of the date of acquisition. Subsequent to acquisition, foreclosed assets not classified as held for sale are evaluated for impairment, and the results of operations and any impairment are reported on our consolidated statements of operations under results of operations of foreclosed assets. When foreclosed assets meet the accounting criteria to be classified as held for sale, they are recorded at the lower of cost or fair value less estimated cost to sell at the date of transfer, with the amount at the date of transfer representing the new cost basis. Subsequent changes are recognized in our consolidated statements of operations under results of operations of foreclosed assets. We also review foreclosed assets classified as held for sale each reporting period to determine whether the existing carrying amounts are fully recoverable in comparison to estimated fair values. We did not carry any foreclosed assets on our consolidated balance sheet as of May 31, 2021 or May 31, 2020. Securities Sold Under Repurchase Agreements We enter into repurchase agreements to sell investment securities. These transactions are accounted for as collateralized financing transactions and are recorded on our consolidated balance sheets as part of short-term borrowings at the amounts at which the securities were sold. Debt We report debt at cost net of unamortized issuance costs and discounts or premiums. Issuance costs, discounts and premiums are deferred and amortized into interest expense using the effective interest method or a method approximating the effective interest method over the legal maturity of each bond issue. 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. Borrowings with an original contractual maturity of greater than one year are classified as long-term debt. Derivative Instruments 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. 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 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 consolidated balance sheets, while derivatives in a loss position are reported as derivative liabilities. Accrued interest related to derivatives is reported on our consolidated balance sheets as a component of either accrued interest receivable 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 expense and derivative forward value amounts, are recognized in our consolidated statements of operations 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 other comprehensive income (“OCI”), to the extent that the hedge relationships are effective, and reclassified from accumulated other comprehensive income (“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 operations. We generally do not designate interest rate swaps, which represent the substantial majority of our derivatives, for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our consolidated statements of operations under derivative gains (losses). Net periodic cash settlements expense related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. We typically designate Treasury rate locks as cash flow hedges of forecasted debt issuances or repricings. Changes in the fair value of treasury locks designated as cash flow hedges are recorded as a component of OCI and reclassified from AOCI into interest expense when the forecasted transaction occurs using the effective interest method. Any ineffectiveness is recognized as a component of derivative gains (losses) in our consolidated statements of operations. Guarantee Liability We maintain a guarantee liability that represents our contingent and noncontingent exposure related to guarantees and standby liquidity obligations associated with our members’ debt. The guarantee liability is included in the other liabilities line item on the consolidated balance sheet, and the provision for guarantee liability is reported in non-interest expense as a separate line item on the consolidated statement of operations. The contingent portion of the guarantee liability represents management’s estimate of our exposure to losses within the guarantee portfolio. The methodology used to estimate the contingent guarantee liability is consistent with the methodology used to determine the allowance for credit losses under the CECL model. We have recorded a noncontingent guarantee liability for all new or modified guarantees since January 1, 2003. Our noncontingent guarantee liability represents our 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. Our noncontingent obligation is estimated based on guarantee and liquidity fees charged for guarantees issued, which represents manageme |
Interest Income and Interest Ex
Interest Income and Interest Expense (Notes) | 12 Months Ended |
May 31, 2021 | |
Banking and Thrift, Interest [Abstract] | |
Interest income: | NOTE 2—INTEREST INCOME AND INTEREST EXPENSE The following table displays the components of interest income, by interest-earning asset type, and interest expense, by debt product type, presented on our consolidated statements of operations for fiscal years 2021, 2020 and 2019. Table 2.1: Interest Income and Interest Expense Year Ended May 31, (Dollars in thousands) 2021 2020 2019 Interest income: Loans (1)(2) $ 1,101,505 $ 1,129,883 $ 1,111,061 Investment securities 15,096 21,403 24,609 Total interest income 1,116,601 1,151,286 1,135,670 Interest expense: (3)(4) Short-term borrowings 14,730 77,995 92,854 Long-term debt 581,292 634,567 647,284 Subordinated debt 106,041 108,527 96,071 Total interest expense 702,063 821,089 836,209 Net interest income $ 414,538 $ 330,197 $ 299,461 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized in interest income over the period to maturity using the effective interest method. (2) Includes late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs. (3) Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense over the period to maturity using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized in interest expense immediately as incurred. (4) Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Based on the nature of the fees, the amount is either recognized immediately as incurred or deferred and recognized in interest expense ratably over the term of the arrangement. Deferred income reported on our consolidated balance sheets of $51 million and $59 million as of May 31, 2021 and 2020, respectively, consists primarily of deferred loan conversion fees that totaled $45 million and $53 million as of each respective date. Deferred loan conversion fees are recognized in interest income over the remaining period to maturity of loans using the effective interest method. |
Investment Securities (Notes)
Investment Securities (Notes) | 12 Months Ended |
May 31, 2021 | |
Investments [Abstract] | |
INVESTMENT SECURITIES | NOTE 3—INVESTMENT SECURITIES We maintain a portfolio of equity and debt securities. Our debt securities portfolio, which is intended to serve as a supplemental source of liquidity, consists of certificates of deposit with maturities greater than 90 days, commercial paper, corporate debt securities, municipality debt securities, commercial mortgage-backed securities (“MBS”), foreign government debt securities and other asset-backed securities (“ABS”). Equity Securities The following table presents the composition of our equity security holdings and the fair value as of May 31, 2021 and 2020. Table 3.1: Investments in Equity Securities, at Fair Value May 31, (Dollars in thousands) 2021 2020 Equity securities, at fair value: Farmer Mac—Series A non-cumulative preferred stock $ — $ 30,240 Farmer Mac—Series C non-cumulative preferred stock 27,450 25,400 Farmer Mac—Class A common stock 7,652 5,095 Total equity securities, at fair value $ 35,102 $ 60,735 On September 19, 2020, Farmer Mac redeemed all of the outstanding shares of its 5.875% Series A non-cumulative preferred stock at a redemption price of $25.00 per share, plus any declared and unpaid dividends through and including the redemption date. We held 1.2 million shares of Farmer Mac’s Series A non-cumulative preferred stock at an amortized cost of $25 per share as of the redemption date, which was equal to the per-share redemption price. We recognized net unrealized gains on our equity securities of $4 million for the fiscal year ended May 31, 2021 and net unrealized losses of $2 million for fiscal years ended May 31, 2020 and 2019. These unrealized amounts are reported as a component of non-interest income on our consolidated statements of operations. For additional information on our investments in equity securities, see “Note 1—Summary of Significant Accounting Policies” and “Note 11—Equity—Accumulated Other Comprehensive Income.” Debt Securities 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 Global Inc. (“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. Debt Securities The following table presents the composition of our investments in trading debt securities and the fair value as of May 31, 2021 and 2020. Table 3.2: Investments in Debt Securities Trading, at Fair Value May 31, (Dollars in thousands) 2021 2020 Debt securities, at fair value: Certificates of deposit $ 1,501 $ 5,585 Commercial paper 12,365 — Corporate debt securities 497,944 253,153 Commercial MBS: Agency (1) 8,683 7,655 Non-agency — 3,207 Total commercial MBS 8,683 10,862 U.S. state and municipality debt securities 11,840 8,296 Foreign government debt securities 999 — Other ABS (2) 42,843 31,504 Total debt securities trading, at fair value $ 576,175 $ 309,400 ____________________________ (1) Consists of securities backed by Federal National Mortgage Association (“ Fannie Mae ”) and Federal Home Loan Mortgage Corporation (“ Freddie Mac ”). (2) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. We received cash proceeds of $6 million on the sale of debt securities at fair value during the year ended May 31, 2021, and recorded realized losses related to the sale of these securities of less than $1 million for the year ended May 31, 2021. We received cash proceeds of $239 million on the sale of debt securities at fair value during the year ended May 31, 2020, and recorded realized gains related to the sale of these securities of $3 million for the year ended May 31, 2020. We did not sell any of our debt investment securities during the year ended May 31, 2019, and therefore have not recorded any realized gains or losses during fiscal year 2019. We recognized net unrealized losses on our debt securities of $3 million for the year ended May 31, 2021 and net unrealized gains of $8 million for the year ended May 31, 2020. These realized and unrealized amounts are reported as a component of non-interest income on our consolidated statements of operations. For additional information on our investments in debt securities, see “Note 1—Summary of Significant Accounting Policies.” We also pledge debt securities as collateral under our repurchase agreements. Debt securities with a carrying value of $211 million as of May 31, 2021 were pledged as collateral for securities sold under repurchase agreements. |
Loans (Notes)
Loans (Notes) | 12 Months Ended |
May 31, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | NOTE 4—LOANS We offer loans under secured long-term facilities with terms up to 35 years and line of credit loans. Under secured long-term facilities, borrowers have the option of selecting a fixed or variable rate for a period of one Loans to Members Loans to members consist of total loans outstanding, which reflects the unpaid principal balance, net of charge-offs and recoveries, of loans and deferred loan origination costs. The following table presents loans to members and unadvanced loan commitments, by member class and by loan type, as of May 31, 2021 and 2020. Table 4.1: Loans to Members by Member Class and Loan Type May 31, 2021 2020 (Dollars in thousands) Loans Unadvanced Commitments (1) Loans Unadvanced Commitments (1) Member class: CFC: Distribution $ 22,027,423 $ 9,387,070 $ 20,769,653 $ 8,992,457 Power supply 5,154,312 3,970,698 4,731,506 3,409,227 Statewide and associate 106,121 161,340 106,498 153,626 Total CFC 27,287,856 13,519,108 25,607,657 12,555,310 NCSC 706,868 551,125 697,862 551,674 RTFC 420,383 286,806 385,335 281,642 Total loans outstanding (2) 28,415,107 14,357,039 26,690,854 13,388,626 Deferred loan origination costs 11,854 — 11,526 — Loans to members $ 28,426,961 $ 14,357,039 $ 26,702,380 $ 13,388,626 Loan type: Long-term loans: Fixed rate $ 25,514,766 $ — $ 24,472,003 $ — Variable rate 658,579 5,771,813 655,704 5,458,676 Total long-term loans 26,173,345 5,771,813 25,127,707 5,458,676 Lines of credit 2,241,762 8,585,226 1,563,147 7,929,950 Total loans outstanding (2) 28,415,107 14,357,039 26,690,854 13,388,626 Deferred loan origination costs 11,854 — 11,526 — Loans to members $ 28,426,961 $ 14,357,039 $ 26,702,380 $ 13,388,626 ____________________________ (1) The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. Loan Sales We transfer, from time to time, whole loans and participating interests to third parties. These transfers are made concurrently with the closing of the loan or participation agreement at par value and meet the accounting criteria required for sale accounting. Therefore, we remove the transferred loans or participating interests from our consolidated balance sheets when control has been surrendered and recognize a gain or loss on the sale. We retain a servicing performance obligation on the transferred loans and recognize related servicing fees on an accrual basis over the period for which servicing is provided, as we believe the servicing fee represents adequate compensation. Other than the servicing performance obligation, we have not retained any interest in the loans sold to date. In addition, we have no obligation to repurchase loans that are sold, except in the case of breaches of representations and warranties. We sold CFC loans, at par for cash, totaling $126 million, $151 million and $35 million in fiscal years 2021, 2020 and 2019, respectively. We recorded immaterial losses on the sale of these loans attributable to the unamortized deferred loan origination costs associated with the transferred loans. Credit Concentration Concentrations may exist when there are amounts loaned to borrowers engaged in similar activities or in geographic areas that would cause them to be similarly impacted by economic or other conditions or when there are large exposures to single borrowers. 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 systems, power supply systems and related facilities. Because we lend primarily to our rural electric utility cooperative members, we have had a loan portfolio subject to single-industry and single-obligor concentration risks since our inception in 1969. Loans outstanding to electric utility organizations of $27,995 million and $26,306 million as of May 31, 2021 and 2020, respectively, accounted for 99% of total loans outstanding as of both May 31, 2021 and 2020. The remaining loans outstanding in our portfolio were to RTFC members, affiliates and associates in the telecommunications industry. Geographic Concentration Although our organizational structure and mission results in single-industry concentration, we serve a geographically diverse group of electric and telecommunications borrowers throughout the U.S. The number of borrowers with outstanding loans totaled 892 and 889 as of May 31, 2021 and 2020, respectively, located in 49 states. Texas accounted for the largest number of borrowers in any one state and also the largest concentration of loan exposure in any one state as of each respective date. Loans outstanding to Texas-based electric utility organizations totaled $4,878 million and $4,222 million as of May 31, 2021 and 2020, respectively, and accounted for approximately 17% and 16% of total loans outstanding as of each respective date. Of the loans outstanding to Texas-based electric utility organizations, $172 million and $181 million as of May 31, 2021 and 2020, respect ively, were covered by the Farmer Mac standby repurchase agreement, which slightly reduces our Texas loan exposure. Single-Obligor Concentration The outstanding loan exposure for our 20 largest borrowers totaled $6,182 million and $5,877 million as of May 31, 2021 and 2020, respectively, representing 22% of total loans outstanding as of each respective date. The 20 largest borrowers consisted of 10 distribution systems and 10 power supply systems as of May 31, 2021. The 20 largest borrowers consisted of 11 distribution systems and nine power supply systems as of May 31, 2020. The largest total outstanding exposure to a single borrower or controlled group represented less than 2% of total loans outstanding as of both May 31, 2021 and 2020. As part of our strategy in managing credit exposure to large borrowers, 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. We are required to pay Farmer Mac a monthly fee based on the unpaid principal balance of loans covered under the purchase commitment. The aggregate unpaid principal balance of designated and Farmer Mac-approved loans was $512 million and $569 million as of May 31, 2021 and 2020, respectively. Loan exposure to our 20 largest borrowers covered under the Farmer Mac agreement totaled $309 million and $314 million as of May 31, 2021 and 2020, respectively, which reduced our exposure to the 20 largest borrowers to 21% as of each respective date. We have had no loan defaults for loans covered under this agreement; therefore, no loans had been put to Farme r Mac for purchase pursuant to the standby purchase agreement as of May 31, 2021. Our credit exposure is also mitigated by long-term loans guaranteed by the RUS. Guaranteed RUS loans totaled $139 million and $147 million as of May 31, 2021 and 2020, respectively. Credit Quality Indicators Assessing the overall credit quality of our loan portfolio and measuring our credit risk is an ongoing process that involves tracking payment status, troubled debt restructurings, nonperforming loans, charge-offs, 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. Payment status trends and internal risk ratings are indicators, among others, of the probability of borrower default and overall credit quality of our loan portfolio. Payment Status of Loans Loans are considered delinquent when contractual principal or interest amounts become past due 30 days or more following the scheduled payment due date. Loans are placed on nonaccrual status when payment of principal or interest is 90 days or more past due or management determines that the full collection of principal and interest is doubtful. The following table presents the payment status, by member class, of loans outstanding as of May 31, 2021 and 2020. Table 4.2: Payment Status of Loans Outstanding May 31, 2021 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Total Total Loans Outstanding Nonaccrual Loans CFC: Distribution $ 22,027,423 $ — $ — $ — $ 22,027,423 $ — Power supply 5,069,316 3,400 81,596 84,996 5,154,312 228,312 Statewide and associate 106,121 — — — 106,121 — CFC total 27,202,860 3,400 81,596 84,996 27,287,856 228,312 NCSC 706,868 — — — 706,868 — RTFC 420,383 — — — 420,383 9,185 Total loans outstanding $ 28,330,111 $ 3,400 $ 81,596 $ 84,996 $ 28,415,107 $ 237,497 Percentage of total loans 99.70 % 0.01 % 0.29 % 0.30 % 100.00 % 0.84 % May 31, 2020 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Total Total Loans Outstanding Nonaccrual Loans CFC: Distribution $ 20,769,653 $ — $ — $ — $ 20,769,653 $ — Power supply 4,731,506 — — — 4,731,506 167,708 Statewide and associate 106,498 — — — 106,498 — CFC total 25,607,657 — — — 25,607,657 167,708 NCSC 697,862 — — — 697,862 — RTFC 385,335 — — — 385,335 — Total loans outstanding $ 26,690,854 $ — $ — $ — $ 26,690,854 $ 167,708 Percentage of total loans 100.00 % — % — % — % 100.00 % 0.63 % We had one delinquent loan totaling $85 million as of May 31, 2021 to Brazos Electric Power Cooperative, Inc. (“Brazos”), a CFC Texas-based power supply borrower, which we classified as nonperforming as a result of its bankruptcy filing as described below under “Nonperforming Loans.” Brazos is unable to make scheduled loan payments without approval of the bankruptcy court. We had no delinquent loans as of May 31, 2020. Loans outstanding on nonaccrual status increased $69 million to $237 million as of May 31, 2021, primarily due to the Brazos nonperforming loans. No interest income was recognized on nonaccrual loans for the years ended May 31, 2021 and 2020. See “Nonperforming Loans” below for additional information. Troubled Debt Restructurings We did not have any loan modifications that were required to be accounted for as a TDR during the year ended May 31, 2021, nor have we had any TDR loan modifications since fiscal year 2016. The following table presents the outstanding balance of modified loans accounted for as TDRs in prior periods and the performance status, by member class, of these loans as of May 31, 2021 and 2020. Table 4.3: Trouble Debt Restructurings May 31, 2021 2020 (Dollars in thousands) Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding TDR loans: CFC—Distribution 1 $ 5,379 0.02 % 1 $ 5,756 0.02 % RTFC 1 4,592 0.02 1 5,092 0.02 Total TDR loans 2 $ 9,971 0.04 % 2 $ 10,848 0.04 % Performance status of TDR loans: Performing TDR loans 2 $ 9,971 0.04 % 2 $ 10,848 0.04 % Total TDR loans 2 $ 9,971 0.04 % 2 $ 10,848 0.04 % ____________________________ (1) Represents the unpaid principal balance net of charge-offs and recoveries as of the end of each period. The outstanding TDR loans for CFC and RTFC each relate to the modification of a loan for one borrower that, at the time of the modification, was experiencing financial difficulty. There were no unadvanced commitments related to these loans as of May 31, 2021 or May 31, 2020. We did not have any TDR loans classified as nonperforming as of May 31, 2021 or May 31, 2020. TDR loans classified as performing as of May 31, 2021 and 2020 were performing in accordance with the terms of their respective restructured loan agreement and on accrual status as of the respective reported dates. The CFC borrower with the TDR loan also had one line of credit as of May 31, 2021 and two lines of credit as of May 31, 2020. The line of credit facility for $6 million as of both May 31, 2021 and 2020, is restricted for fuel purchases only. There were no outstanding loans under this facility as of May 31, 2021. Outstanding loans under this facility totaled less than $1 million as of May 31, 2020 and were classified as performing. The other line of credit facility for $2 million as of May 31, 2020, was put in place during fiscal year 2019 to provide bridge funding for electric work plan expenditures in anticipation of receiving RUS funding. Outstanding loans under this facility totaled $2 million as of May 31, 2020, and were classified as performing. 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. The following table presents the outstanding balance of nonperforming loans, by member class, as of May 31, 2021 and 2020. Table 4.4: Nonperforming Loans May 31, 2021 2020 (Dollars in thousands) Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Nonperforming loans: CFC—Power supply (2) 2 $ 228,312 0.81 % 1 $ 167,708 0.63 % RTFC 2 9,185 0.03 — — — Total nonperforming loans 4 $ 237,497 0.84 % 1 $ 167,708 0.63 % ____________________________ (1) Represents the unpaid principal balance net of charge-offs and recoveries as of the end of each period. (2) In addition, we had less than $1 million letters of credit outstanding to Brazos as of May 31, 2021. Nonperforming loans increased $69 million to $237 million, or 0.84%, of total loans outstanding as of May 31, 2021, from $168 million, or 0.63%, of total loans outstanding as of May 31, 2020, primarily due to our classification of the loans outstanding of $85 million to Brazos, a CFC Texas-based power supply borrower, as nonperforming during fiscal year 2021 as a result of its bankruptcy filing as described below. During the February 2021 polar vortex that affected Texas and several neighboring states, as the freezing conditions impacted power demand, Brazos had insufficient generation supply and was forced, to purchase power at peak prices to meet the electric demand of its member distribution customers. On March 1, 2021, we were informed that Brazos filed for Chapter 11 bankruptcy protection. In the third quarter of fiscal year 2021, we downgraded Brazos’ borrower risk rating from a rating within the pass category to doubtful, classified its loans outstanding as nonperforming, placed the loans on nonaccrual status, and reversed unpaid interest amounts previously accrued and recognized in interest income. We had loans outstanding to Brazos of $85 million as of May 31, 2021, pursuant to a syndicated Bank of America revolving credit agreement, of which $64 million was unsecured and $21 million was secured based on the set-off provisions of the revolving credit agreement approved by the bankruptcy court. In addition to Brazos, we classified loans outstanding to two affiliated RTFC telecommunications borrowers as nonperforming during fiscal year. Loans outstanding to these RTFC borrowers totaled $9 million as of May 31, 2021. Under the terms of the syndicated Bank of America revolving credit agreement, in the event of bankruptcy by Brazos, each lending participant is permitted to hold any deposited or investment funds from Brazos, up to the amount of the participant’s exposure to Brazos pursuant to the agreement, for set-off against such exposure to Brazos. The total so held by all participants is required to be shared among the participants in accordance with the pro rata share of each participant in the agreement. As of the bankruptcy filing date, funds on deposit from or invested by Brazos with participating lenders of the agreement, available for set-off against Brazos’ obligations, totaled $124 million. Based on our exposure of $85 million under the $500 million syndicated Bank of America agreement, our pro rata share set-off right is 17%, or approximately $21 million. The set-off rights have been agreed to and confirmed by Brazos and the bankruptcy court. In order to allow Brazos to access such deposited or invested funds, the lenders have been granted adequate protection liens and super-priority claims in an amount equal to the diminution of value of the amount available for set-off. One loan to another CFC power supply borrower, with an outstanding balance of $143 million and $168 million as of May 31, 2021 and 2020, respectively, accounted for the majority of nonperforming loans as of May 31, 2021, and the entire amount of nonperforming loans as of May 31, 2020. Under the terms of this loan, which matures in December 2026, the amount the borrower is required to pay in 2024 and 2025 may vary, as the payments are contingent on the borrower’s financial performance in those years. Based on our review and assessment of the borrower’s forecast and underlying assumptions provided to us in May 2020, we no longer believed that the future expected cash payments from the borrower through the maturity of the loan in December 2026 would be sufficient to repay the outstanding loan balance. We therefore classified this loan as nonperforming, placed the loan on nonaccrual status and established an asset-specific allowance for credit losses as of May 31, 2020. We received payments from the borrower on this loan during the current year-to-date period, reducing the outstanding balance to $143 million as of May 31, 2021. While the borrower is not in default and was current with respect to required payments on the loan as of May 31, 2021, we have continued to report the loan as nonperforming. 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 charge-offs during the years ended May 31, 2021, 2020 and 2019. Prior to Brazos’ bankruptcy filing, we had not experienced any defaults or charge-offs in our electric utility and telecommunications loan portfolios since fiscal year 2013 and 2017, respectively. We had one delinquent loan to Brazos totaling $85 million as of May 31, 2021, as Brazos is unable to make scheduled loan payments without approval of the bankruptcy court. We had no delinquent loans as of May 31, 2020. Borrower Risk Ratings As part of our management of credit risk, we maintain a credit risk-rating framework under which we employ a consistent process for assessing the credit quality of our loan portfolio. We evaluate each borrower and loan facility in our loan portfolio and assign internal borrower and loan facility risk ratings based on consideration of a number of quantitative and qualitative factors. Each risk rating is reassessed annually following the receipt of the borrower’s audited financial statements; however, interim risk-rating adjustments may occur as a result of updated information affecting a borrower’s ability to fulfill its obligations or other significant developments and trends. We categorize loans in our portfolio based on our internally assigned borrower risk ratings, which are intended to assess the general creditworthiness of the borrower and probability of default. Our borrower risk ratings align with the U.S. federal banking regulatory agency credit risk definitions of pass and criticized categories, with the criticized category further segmented among 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 the borrower risk-rating categories. • 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. We use our internal risk ratings to measure the credit risk of each borrower and loan facility, identify or confirm problem or potential problem loans in a timely manner, differentiate risk within each of our portfolio segments, assess the overall credit quality of our loan portfolio and manage overall risk levels. Our internally assigned borrower risk ratings, which we map to equivalent credit ratings by external credit rating agencies, serve as the primary credit quality indicator for our loan portfolio. Because our internal borrower risk ratings provide important information on the probability of default, they are a key input in estimating our allowance for credit losses. Table 4.5 displays total loans outstanding, by borrower risk-rating category and borrower member class, as of May 31, 2021 and 2020. The borrower risk-rating categories presented below correspond to the borrower risk rating categories used in calculating our collective allowance for credit losses. If a parent company provides a guarantee of full repayment of loans of a subsidiary borrower, we include the loans outstanding in the borrower risk-rating category of the guarantor parent company rather than the risk-rating category of the subsidiary borrower for purposes of calculating the collective allowance. In connection with our adoption of CECL, we present term loans outstanding as of May 31, 2021, by fiscal year of origination for each year during the five-year annual reporting period beginning in fiscal year 2017, and in the aggregate for periods prior to fiscal year 2017. The origination period represents the date CFC advances funds to a borrower, rather than the execution date of a loan facility for a borrower. Revolving loans are presented separately due to the nature of revolving loans. The substantial majority of loans in our portfolio represent fixed-rate advances under secured long-term facilities with terms up to 35 years. As indicated in Table 4.5 below, term loan advances made to borrowers prior to fiscal year 2017 totaled $15,825 million, representing 56% of our total loans outstanding of $28,415 million as of May 31, 2021. The average remaining maturity of our long-term loans, which accounted for 92% of total loans outstanding as of May 31, 2021, was 18 years. As discussed above, as a 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 systems, power supply systems and related facilities. As such, since our inception in 1969 we have had an extended repeat lending and repayment history with substantially all of member borrowers through our various loan programs. Our secured long-term loan commitment facilities typically provide a five-year draw period under which a borrower may draw funds prior to the expiration of the commitment. Because our electric utility cooperative borrowers must make substantial annual capital investments to maintain operations and ensure delivery of the essential service provided by electric utilities, they require a continuous inflow of funds to finance infrastructure upgrades and new asset purchases. Due to the funding needs of electric utility cooperatives, a CFC borrower generally has multiple loans outstanding under advances drawn in different years. While the number of borrowers with loans outstanding was 892 borrowers as of May 31, 2021, the number of loans outstanding was 16,575 as of May 31, 2021, resulting in an average of 19 loans outstanding per borrower. Our borrowers, however, are subject to cross-default under the terms of our loan agreements. Therefore, if a borrower defaults on one loan, the borrower is considered in default on all outstanding loans. Due to these factors, we historically have not observed a correlation between the year of origination of our loans and default risk. Instead, default risk on our loans has typically been more closely correlated to the risk rating of our borrowers. Table 4.5: Loans Outstanding by Borrower Risk Ratings and Origination Year May 31, 2021 Term Loans by Fiscal Year of Origination (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Total May 31, 2020 Pass CFC: Distribution $ 1,768,491 $ 1,935,368 $ 1,227,223 $ 1,497,479 $ 1,520,593 $ 12,654,148 $ 1,204,797 $ 21,808,099 $ 20,643,737 Power supply 568,917 201,122 345,496 252,783 259,358 2,510,572 379,160 4,517,408 4,516,595 Statewide and associate 2,491 22,028 3,686 — 547 23,534 37,975 90,261 90,274 CFC total 2,339,899 2,158,518 1,576,405 1,750,262 1,780,498 15,188,254 1,621,932 26,415,768 25,250,606 NCSC 41,506 241,576 4,379 44,848 14,325 248,127 112,107 706,868 697,862 RTFC 98,797 50,011 12,138 27,356 65,035 131,936 21,333 406,606 371,507 Total pass 2,480,202 2,450,105 1,592,922 1,822,466 1,859,858 15,568,317 1,755,372 27,529,242 26,319,975 Special mention CFC: Distribution 5,000 — 5,197 950 — 13,177 195,000 219,324 7,743 Power supply — — — — — 29,611 — 29,611 — Statewide and associate — — 5,000 4,000 5,704 1,156 — 15,860 16,224 CFC total 5,000 — 10,197 4,950 5,704 43,944 195,000 264,795 23,967 RTFC — — — — — 4,592 — 4,592 8,736 Total special mention 5,000 — 10,197 4,950 5,704 48,536 195,000 269,387 32,703 Substandard CFC: Distribution — — — — — — — — 118,173 Power supply 23,600 — 85,839 — — 64,982 204,560 378,981 47,203 CFC total 23,600 — 85,839 — — 64,982 204,560 378,981 165,376 RTFC — — — — — — — — 5,092 Total substandard 23,600 — 85,839 — — 64,982 204,560 378,981 170,468 Doubtful CFC: Power supply — — — — — 143,316 84,996 228,312 167,708 CFC total — — — — — 143,316 84,996 228,312 167,708 RTFC — — 1,411 2,947 2,993 — 1,834 9,185 — Total doubtful — — 1,411 2,947 2,993 143,316 86,830 237,497 167,708 Total criticized loans 28,600 — 97,447 7,897 8,697 256,834 486,390 885,865 370,879 Total loans outstanding $ 2,508,802 $ 2,450,105 $ 1,690,369 $ 1,830,363 $ 1,868,555 $ 15,825,151 $ 2,241,762 $ 28,415,107 $ 26,690,854 Criticized loans increased $515 million to $886 million as of May 31, 2021, from $371 million as of May 31, 2020, representing approximately 3% and 1% of total loans outstanding as of each respective date. The increase was attributable to increases in loans outstanding in the special mention, substandard and doubtful categories. Each of the borrowers with loans outstanding in the criticized category, with the exception of Brazos, was current with regard to all principal and interest amounts due as of May 31, 2021. As mentioned above, Brazos is unable to make scheduled loan payments without approval of the bankruptcy court. Special Mention One CFC electric distribution borrower totaling $219 million accounted for the substantial majority of the special mention loan category amount of $269 million as of May 31, 2021. The CFC electric distribution borrower with loans outstanding of $219 million as of May 31, 2021 was downgraded to special mention in fiscal year 2021, from a rating within the pass category as of May 31, 2020 . The downgrade was attributable to an adverse financial impact from restoration costs incurred to repair damage caused by two successive hurricanes. We expect that the borrower will receive grant funds from the Federal Emergency Management Agency and the state where it is located for reimbursement of the hurricane damage-related restoration costs. Substandard Loans outstanding to Rayburn Country Electric Cooperative, Inc. (“Rayburn”), a CFC Texas-based electric power supply borrower, consisted of secured loans of $167 million and unsecured loans of $212 million, which together totaled $379 million as of May 31, 2021, and accounted for the substandard loan category amount of $379 million as of May 31, 2021. Rayburn was downgraded to substandard in fiscal year 2021, from a rating within the pass category as of May 31, 2020. The downgrade was attributable to the significant adverse financial impact from exposure to the elevated power costs during the February 2021 polar vortex. One CFC electric distribution borrower and its subsidiary with loans totaling $146 million as of May 31, 2021, was upgraded to a risk rating grade in the pass category in fiscal year 2021, from a substandard rating as of May 31, 2020, based on the borrower’s improved financial performance. Doubtful The increase in loans outstanding in the doubtful category to $237 million as of May 31, 2021, from $168 million as of May 31, 2020 was attributable to the downgrades in the borrower risk ratings of Brazos and two affiliated RTFC telecommunications borrowers and the classification of loans outstanding to these borrowers of $85 million and $9 million, respectively, as nonperforming as of May 31, 2021, discussed above under “Nonperforming Loans.” On June 18, 2021, the Texas governor signed into law Senate Bill 1580, the electric cooperative securitization bill, which became effective immediately with the governor’s signature. This bill allows electric cooperatives to securitize extraordinary costs and expenses incurred due to exposure to high power costs during the February 2021 polar vortex, including amounts owed to Electric Reliability Council of Texas (“ERCOT”). Qualifying cooperatives may issue bonds directly or through a special purpose vehicle legal entity. Payments on the bonds are required to be made over a period not to exceed 30 years. The bill also requires that cooperatives that owe ERCOT use all means necessary to securitize the amount owed, calculated according to ERCOT’s protocols in effect during the period of the February 2021 polar vortex, and stipulates that failure to pay such amount may result in being barred from the ERCOT-administered power market by the Public Utility Commission of Texas . While Brazos and Rayburn are eligible to utilize the provisions of this bill, we are currently uncertain whether they will elect to do so. Unadvanced Loan Commitments Unadvanced loan commitments represent approved and executed loan contracts for which funds have not been advanced to borrowers. The following table displays, by loan type, the available balance under unadvanced loan commitments as of May 31, 2021 and the related maturities in each fiscal year during the five-year period ended May 31, 2026, and thereafter. Table 4.6: Unadvanced Loan Commitments Available Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter Line of credit loans $ 8,585,226 $ 4,333,891 $ 1,523,158 $ 1,169,922 $ 1,061,235 $ 378,815 $ 118,205 Long-term loans 5,771,813 1,140,280 758,417 1,672,458 890,629 1,123,215 186,814 Total $ 14,357,039 $ 5,474,171 $ 2,281,575 $ 2,842,380 $ 1,951,864 $ 1,502,030 $ 305,019 Unadvanced line of credit commitments accounted for 60% of total unadvanced loan commitments as of May 31, 2021, 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 draw funds prior to the expiration of the commitment. We expect that the majority of the long-term unadvanced loan commitments of $5,772 million will be advanced prior to the expiration of the commitment. Because we historically have experie |
Allowance for Credit Losses - (
Allowance for Credit Losses - (Notes) | 12 Months Ended |
May 31, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses | NOTE 5—ALLOWANCE FOR CREDIT LOSSES Upon adoption of CECL on June 1, 2020, we recorded an increase in our allowance for credit losses for our loan portfolio of $4 million. The impact on the reserve for expected credit losses for our off-balance sheet credit exposures related to unadvanced loan commitments and financial guarantees was not material. Additional information on our adoption of CECL is provided in “Note 1—Summary of Significant Accounting Policies.” Allowance for Credit Losses—Loan Portfolio The following tables summarize, by member class, changes in the allowance for credit losses for our loan portfolio and present the allowance components for the years ended May 31, 2021, 2020 and 2019. The changes in the allowance and the allowance components prior to our adoption of CECL on June 1, 2020 are based on the incurred loss model. The allowance components, which consist of a collective allowance and an asset-specific allowance, are based on the evaluation method used to measure our loans for credit losses. Loans that share similar risk characteristics are evaluated on a collective basis in measuring credit losses, while loans that do not share similar risk characteristics with other loans in our portfolio are evaluated on an individual basis. Table 5.1: Changes in Allowance for Credit Losses Year Ended May 31, 2021 (Dollars in thousands) Distribution Power Supply Statewide and Associate CFC Total NCSC RTFC Total Balance as of May 31, 2020 $ 8,002 $ 38,027 $ 1,409 $ 47,438 $ 806 $ 4,881 $ 53,125 Cumulative-effect adjustment from adoption of CECL accounting standard 3,586 2,034 25 5,645 (15) (1,730) 3,900 Balance as of June 1, 2020 11,588 40,061 1,434 53,083 791 3,151 57,025 Provision (benefit) for credit losses 1,838 24,585 (43) 26,380 583 1,544 28,507 Balance as of May 31, 2021 $ 13,426 $ 64,646 $ 1,391 $ 79,463 $ 1,374 $ 4,695 $ 85,532 Year Ended May 31, 2020 (Dollars in thousands) Distribution Power Supply Statewide and Associate CFC Total NCSC RTFC Total Balance as of May 31, 2019 $ 7,483 $ 4,253 $ 1,384 $ 13,120 $ 2,007 $ 2,408 $ 17,535 Provision (benefit) for credit losses 519 33,774 25 34,318 (1,201) 2,473 35,590 Balance as of May 31, 2020 $ 8,002 $ 38,027 $ 1,409 $ 47,438 $ 806 $ 4,881 $ 53,125 Year Ended May 31, 2019 (Dollars in thousands) Distribution Power Supply Statewide and Associate CFC Total NCSC RTFC Total Balance as of May 31, 2018 $ 7,611 $ 4,588 $ 101 $ 12,300 $ 2,082 $ 4,419 $ 18,801 Provision (benefit) for credit losses (128) (335) 1,283 820 (75) (2,011) (1,266) Balance as of May 31, 2019 $ 7,483 $ 4,253 $ 1,384 $ 13,120 $ 2,007 $ 2,408 $ 17,535 The following tables present, by member class, the components of our allowance for credit losses as of May 31, 2021 and 2020. Table 5.2: Allowance for Credit Losses Components May 31, 2021 (Dollars in thousands) Distribution Power Supply Statewide and Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 13,426 $ 25,104 $ 1,391 $ 39,921 $ 1,374 $ 1,147 $ 42,442 Asset-specific allowance (1) — 39,542 — 39,542 — 3,548 43,090 Total allowance for credit losses $ 13,426 $ 64,646 $ 1,391 $ 79,463 $ 1,374 $ 4,695 $ 85,532 Loans outstanding: (2) Collectively evaluated loans $ 22,022,044 $ 4,926,000 $ 106,121 $ 27,054,165 $ 706,868 $ 406,606 $ 28,167,639 Individually evaluated loans (1) 5,379 228,312 — 233,691 — 13,777 247,468 Total loans outstanding $ 22,027,423 $ 5,154,312 $ 106,121 $ 27,287,856 $ 706,868 $ 420,383 $ 28,415,107 Allowance ratios: Collective allowance coverage ratio (3) 0.06 % 0.51 % 1.31 % 0.15 % 0.19 % 0.28 % 0.15 % Asset-specific allowance coverage ratio (4) — 17.32 — 16.92 — 25.75 17.41 Total allowance coverage ratio (5) 0.06 1.25 1.31 0.29 0.19 1.12 0.30 May 31, 2020 (Dollars in thousands) Distribution Power Supply Statewide and Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 8,002 $ 4,173 $ 1,409 $ 13,584 $ 806 $ 3,902 $ 18,292 Asset-specific allowance — 33,854 — 33,854 — 979 34,833 Total allowance for credit losses $ 8,002 $ 38,027 $ 1,409 $ 47,438 $ 806 $ 4,881 $ 53,125 Loans outstanding: (2) Collectively evaluated loans $ 20,763,897 $ 4,563,798 $ 106,498 $ 25,434,193 $ 697,862 $ 380,243 $ 26,512,298 Individually evaluated loans 5,756 167,708 — 173,464 — 5,092 178,556 Total loans outstanding $ 20,769,653 $ 4,731,506 $ 106,498 $ 25,607,657 $ 697,862 $ 385,335 $ 26,690,854 Allowance coverage ratios: Collective allowance coverage ratio (3) 0.04 % 0.09 % 1.32 % 0.05 % 0.12 % 1.03 % 0.07 % Asset-specific allowance coverage ratio (4) — 20.19 — 19.52 — 19.23 19.51 Total allowance coverage ratio (5) 0.04 0.80 1.32 0.19 0.12 1.27 0.20 ___________________________ (1) In addition, we had less than $1 million letters of credit outstanding to Brazos, for which the reserve is included in the asset-specific allowance as of May 31, 2021. (2) Represents the unpaid principal amount of loans as of the end of each period. Excludes unamortized deferred loan origination costs of $12 million and $11 million as of May 31, 2021 and 2020, respectively. (3) Calculated based on the collective allowance component at period-end divided by collectively evaluated loans outstanding at period-end. (4) Calculated based on the asset-specific allowance component at period-end divided by individually evaluated loans outstanding at period-end. (5) Calculated based on the total allowance for credit losses at period-end divided by total loans outstanding at period-end. The allowance for credit losses increased $32 million to $86 million as of May 31, 2021, and the allowance coverage ratio increased to 0.30%. Of the $32 million increase in the allowance, $24 million was attributable to the collective allowance and $8 million was attributable to the asset-specific allowance. The increase in the collective allowance of $24 million was primarily driven by the risk-rating downgrade of Rayburn Country Electric Cooperative, Inc. (“Rayburn”), a CFC Texas-based power supply borrower with loans outstanding of $379 million as of May 31, 2021, from a pass rating to a criticized rating in fiscal year 2021 coupled with a decrease we made in the recovery rate assumption for power supply loans during fiscal year 2021 and the addition to the collective allowance of $4 million upon our adoption of CECL on June 1, 2020. The increase in the asset-specific allowance of $8 million was primarily driven by the risk-rating downgrade of Brazos, a CFC Texas-based power supply borrower, in fiscal year 2021 and the classification of Brazos’ loans outstanding, which totaled $85 million as of May 31, 2021 , as nonperforming due to the bankruptcy filing by Brazos as discussed above in “Note 4—Loans.” Individually Impaired Loans Under Incurred Loss Methodology Prior to our adoption of CECL on June 1, 2020, we assessed loan impairment on a collective basis unless we considered a loan to be impaired. We assessed loan impairment on an individual basis when, based on current information, it was probable that we would not receive all principal and interest amounts due in accordance with the contractual terms of the original loan agreement. In connection with our adoption of CECL, we no longer provide information on impaired loans. The following table provides information on loans previously classified as individually impaired under the incurred loss model for determining the allowance for credit losses. Table 5.3: Individually Impaired Loans—Incurred Loss Model May 31, 2020 (Dollars in thousands) Recorded Investment Related Allowance With Specific Allowance With No Specific Allowance Individually impaired loans: CFC $ 173,464 $ 33,854 $ 167,708 $ 5,756 RTFC 5,092 979 5,092 — Total $ 178,556 $ 34,833 $ 172,800 $ 5,756 The following tables present, by company, the components of our recorded investment and interest income recognized for the years ended May 31, 2020 and 2019. Table 5.4: Average Recorded Investment and Interest Income Recognized on Individually Impaired Loans—Incurred Loss Model Year Ended May 31, Year Ended May 31, 2020 2019 2020 2019 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC $ 11,834 $ 6,322 $ 568 $ 553 RTFC 5,361 5,861 268 293 Total impaired loans $ 17,195 $ 12,183 $ 836 $ 846 Reserve for Credit Losses—Unadvanced Loan Commitments In addition to the allowance for credit losses f or our loan portfolio, we maintain an allowance for credit losses for unadvanced loan commitments, which we refer to as our “reserve for credit losses” bec ause this amount is reported as a component of other liabilities on our consolidated balance sheets. Upon adoption of CECL on June 1, 2020, we began measuring the reserve for credit losses for unadvanced loan commitments based on expected credit losses over the contractual period of our exposure to credit risk arising from our obligation to extend credit, unless that obligation is unconditionally cancellable by us. The reserve for credit losses related to our off-balance sheet exposure for unadvanced loan commitments was less than $1 million as of both May 31, 2021 and 2020. |
Short-Term Borrowings (Notes)
Short-Term Borrowings (Notes) | 12 Months Ended |
May 31, 2021 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | 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 $4,582 million and accounted for 17% of total debt outstanding as of May 31, 2021, compared with $3,962 million, or 15% of total debt outstanding, as of May 31, 2020. The following table provides comparative information on our short-term borrowings and weighted-average interest rates as of May 31, 2021 and 2020. Table 6.1: Short-Term Borrowings Sources and Weighted-Average Interest Rates May 31, 2021 2020 (Dollars in thousands) Amount Weighted- Average Amount Weighted-Average Short-term borrowings: Commercial paper: Commercial paper sold through dealers, net of discounts $ 894,977 0.16 % $ — — % Commercial paper sold directly to members, at par 1,124,607 0.14 1,318,566 0.34 Total commercial paper 2,019,584 0.15 1,318,566 0.34 Select notes to members 1,539,150 0.30 1,597,959 0.75 Daily liquidity fund notes 460,556 0.08 508,618 0.10 Medium-term notes sold to members 362,691 0.42 286,842 1.64 Farmer Mac notes payable (1) — — 250,000 1.06 Securities sold under repurchase agreements 200,115 0.30 — — Total short-term borrowings $ 4,582,096 0.22 $ 3,961,985 0.62 ___________________________ (1) Advanced under the revolving purchase agreement with Farmer Mac dated March 24, 2011. See “Note 7—Long-Term Debt” for additional information on this revolving note purchase agreement. We issue commercial paper for periods of one We also enter into repurchase agreements to sell investment securities. These transactions are accounted for as collateralized borrowings. On May 25, 2021, we borrowed $200 million under a securities repurchase agreement and pledged as collateral investment securities classified as trading, the fair value of which was $211 million as of May 31, 2021. We repurchased these securities on June 2, 2021. Committed Bank Revolving Line of Credit Agreements The total commitment amount under our committed bank revolving line of credit agreements was $2,725 million as of both May 31, 2021 and 2020. These agreements allow us to request up to $300 million of letters of credit, which, if requested, results in a reduction in the total amount available for our use. The following table presents the amount available for access under our bank revolving line of credit agreements as of May 31, 2021 and 2020. Table 6.2: Committed Bank Revolving Line of Credit Agreements Available Amounts May 31, 2021 2020 (Dollars in millions) Total Commitment Letters of Credit Outstanding Available Amount Total Commitment Letters of Credit Outstanding Available Amount Maturity Annual Facility Fee (1) 3-year agreement $ 1,315 $ — $ 1,315 $ 1,315 $ — $ 1,315 November 28, 2022 7.5 bps 5-year agreement 1,410 3 1,407 1,410 3 1,407 November 28, 2023 10 bps Total $ 2,725 $ 3 $ 2,722 $ 2,725 $ 3 $ 2,722 ___________________________ (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. On June 7, 2021, we amended the three-year and five-year committed bank revolving line of credit agreements to extend the maturity dates to November 28, 2024 and November 28, 2025, respectively, and to terminate certain bank commitments totaling $70 million under the three-year agreement and $55 million under the five-year agreement. As a result, the total commitment amount under the three-year facility and the five-year facility is $1,245 million and $1,355 million, respectively, resulting in a combined total commitment amount under the two facilities of $2,600 million. As indicated in the table above we had no borrowings outstanding under our committed bank revolving line of credit agreements as of May 31, 2021 and 2020. We were in compliance with all covenants and conditions under the agreements as of each respective date. |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 12 Months Ended |
May 31, 2021 | |
Debt Instruments [Abstract] | |
Long-Term Debt | NOTE 7—LONG-TERM DEBT The following table displays long-term debt outstanding, by debt product type, and the weighted-average interest rate and maturity date for each debt product type, as of May 31, 2021 and 2020. Long-term debt outstanding totaled $20,603 million and accounted for 75% of total debt outstanding as of May 31, 2021, compared with $19,712 million and 76% of total debt outstanding as of May 31, 2020. Long-term debt with fixed- and variable-rate accounted for 89% and 11%, respectively, of our total long-term debt outstanding as of May 31, 2021, compared with 86% and 14%, respectively, of our total long-term debt outstanding as of May 31, 2020. Table 7.1: Long-Term Debt—Debt Product Types and Weighted-Average Interest Rates May 31, 2021 2020 (Dollars in thousands) Amount Weighted- Average Maturity Amount Weighted- Average Maturity Secured long-term debt: Collateral trust bonds $ 7,452,711 3.15 % 2022-2049 $ 7,457,711 3.23 % 2020-2049 Unamortized discount (227,046) (236,461) Debt issuance costs (33,721) (32,697) Total collateral trust bonds 7,191,944 7,188,553 Guaranteed Underwriter Program notes payable 6,269,303 2.76 2025-2041 6,261,312 2.74 2025-2040 Farmer Mac notes payable 2,977,909 1.68 2021-2049 2,809,637 2.07 2020-2049 Other secured notes payable 4,412 3.14 2021-2023 6,068 2.69 2020-2023 Debt issuance costs (22) (117) Total other secured notes payable 4,390 5,951 Total secured notes payable 9,251,602 9,076,900 2.53 Total secured long-term debt 16,443,546 2.74 16,265,453 2.85 Unsecured long-term debt: Medium-term notes sold through dealers 3,943,728 2.31 2021-2032 3,086,733 3.34 2020-2032 Medium-term notes sold to members 232,346 2.61 2021-2037 372,117 2.85 2020-2037 Subtotal medium-term notes 4,176,074 — 3,458,850 3.29 Unamortized discount (2,307) (997) Debt issuance costs (18,036) (16,943) Total unsecured medium-term notes 4,155,731 3,440,910 Unsecured notes payable 3,886 — 2021-2023 5,794 — 2020-2023 Unamortized discount (35) (107) Debt issuance costs (5) (26) Total unsecured notes payable 3,846 5,661 Total unsecured long-term debt 4,159,577 2.33 3,446,571 3.29 Total long-term debt $ 20,603,123 2.66 $ 19,712,024 2.92 The following table presents the principal amount of long-term debt maturing in each of the five fiscal years subsequent to May 31, 2021 and thereafter. Table 7.2: Long-Term Debt—Maturities and Weighted-Average Interest Rates (Dollars in thousands) Maturity Amount Weighted-Average 2022 $ 2,597,519 1.81 % 2023 1,843,775 1.65 2024 1,652,300 2.18 2025 842,377 2.76 2026 2,428,251 2.86 Thereafter 11,520,073 3.03 Total $ 20,884,295 2.66 Secured Debt Long-term secured debt of $16,444 million and $16,265 million as of May 31, 2021 and 2020, respectively, represented 80% and 83% of total long-term debt outstanding as of each respective date. The increase in long-term secured debt of $179 million for the year ended May 31, 2021 was primarily attributable to advances under the Farmer Mac revolving note purchase agreement. We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. We believe we were in compliance with all covenants and conditions under our debt indentures as of May 31, 2021 and 2020. See “Note 4—Loans” for information on pledged collateral under our secured debt agreements. 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. Collateral trust bonds outstanding increased $3 million to $7,192 million as of May 31, 2021. In June 2020, we redeemed $400 million outstanding principal amount of our 2.35% collateral trust bonds due June 15, 2020. In October 2020, we redeemed $350 million outstanding principal amount of our 2.30% collateral trust bonds, due November 1, 2020. On October 8, 2020, we issued $400 million aggregate principal amount of 1.35% sustainability collateral trust bonds due March 15, 2031. On February 8, 2021, we issued $350 million aggregate principal amount of 1.65% collateral trust bonds due June 15, 2031. Guaranteed Underwriter Program Notes Payable No tes payable outstanding under the Guaranteed Underwriter Program increased $8 million to $6,269 million as of May 31, 2021. We pay RUS a fee of 30 basis points per year on the total amount outstanding. On November 19, 2020, we closed on a $375 million committed loan facility (“Series R”) from the Federal Financing Bank under the Guar anteed Underwriter Program. Pursuant to this facility, we may borrow any time before July 15, 2025. Each advance is subject to quarterly amortization and a final maturity not longer than 30 years from the date of the a dvance. We borrowed $300 million and redeemed $150 million of notes payable outstanding under the Guaranteed Underwriter Program during the year ended May 31, 2021. We had up to $975 million available for access under the Guaranteed Underwriter Program as of May 31, 2021. The notes outstanding under the Guaranteed Underwriter Program contain a provision that if during any portion of the fiscal year, our senior secured credit ratings do not have at least two of the following ratings: (i) A3 or higher from Moody’s, (ii) A- or higher from S&P, (iii) A- or higher from Fitch or (iv) an equivalent rating from a successor rating agency to any of the above rating agencies, we may not make cash patronage capital distributions in excess of 5% of total patronage capital. 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. Farmer Mac Notes Payable We have a revolving note purchase agreement with Farmer Mac, dated March 24, 2011, as amended, under which we can borrow up to $5,500 million from Farmer Mac, at any time, subject to market conditions. On May 20, 2021, we amended our revolving note purchase agreement with Farmer Mac to automatically extend the draw period from January 11, 2022 to June 30, 2026, with successive automatic one-year renewals without notice by either party. Beginning June 30, 2025, the revolving note purchase agreement is subject to termination of the draw period by Farmer Mac upon 425 days’ prior written notice. Pursuant to this revolving note purchase agreement, we can 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. The amount outstanding under this agreement included $2,978 million of long-term debt as of May 31, 2021. We advanced notes payable totaling $500 million under the Farmer Mac Note purchase agreement during the year ended May 31, 2021. The amount available for borrowing totaled $2,522 million as of May 31, 2021. Unsecured Debt Long-term unsecured debt of $4,160 million and $3,447 million as of May 31, 2021 and 2020, respectively, represented 20% and 17% of total long-term debt outstanding as of each respective date. The increase in long-term unsecured debt of $712 million for the year ended May 31, 2021 was primarily attributable to dealer medium-term notes issuances. Medium-Term Notes Medium-term notes represent unsecured obligations that may be issued through dealers in the capital markets or directly to our members. On February 8, 2021, we issued $500 million aggregate principal amount of 0.35% dealer medium-term notes due February 8, 2024. On February 16, 2021, we issued $250 million aggregate principal amount of 3-month LIBOR dealer medium-term notes due February 16, 2023. On February 24, 2021, we issued $600 million aggregate principal amount of 1.00% dealer medium-term notes due June 15, 2026. On February 24, 2021, we also issued $75 million aggregate principal amount of 0.25% dealer medium-term notes due February 24, 2023. |
Subordinated Deferrable Debt (N
Subordinated Deferrable Debt (Notes) | 12 Months Ended |
May 31, 2021 | |
Subordinated Debt [Abstract] | |
Subordinated Deferrable Debt | NOTE 8—SUBORDINATED DEFERRABLE DEBT Subordinated deferrable debt represents long-term debt that is subordinated to all debt other than subordinated certificates held by our members. Our 4.75% and 5.25% subordinated debt due 2043 and 2046, respectively, was issued for a term of up to 30 years, pays interest semi-annually, may be called at par after 10 years, converts to a variable rate after 10 years and allows us to defer the payment of interest for one or more consecutive interest periods not exceeding five The following table presents, by issuance, subordinated deferrable debt outstanding and the weighted-average interest rates as of May 31, 2021 and 2020. Table 8.1: Subordinated Deferrable Debt Outstanding and Weighted-Average Interest Rates May 31, 2021 2020 Maturity and Call Dates (Dollars in thousands) Outstanding Amount Weighted- Average Outstanding Amount Weighted-Average Term in Years Maturity Call Date Issuances of subordinated notes: 4.75% issuance 2013 $ 400,000 4.75 % $ 400,000 4.75 % 30 2043 April 30, 2023 5.25% issuance 2016 350,000 5.25 350,000 5.25 30 2046 April 20, 2026 5.50% issuance 2019 250,000 5.50 250,000 5.50 45 2064 May 15, 2024 Total aggregate principal amount 1,000,000 1,000,000 Debt issuance costs (13,685) (13,881) Total subordinated deferrable debt $ 986,315 5.11 $ 986,119 5.11 |
Members' Subordinated Certifica
Members' Subordinated Certificates (Notes) | 12 Months Ended |
May 31, 2021 | |
Subordinated Borrowings [Abstract] | |
Members' Subordinated Certificates | NOTE 9—MEMBERS’ SUBORDINATED CERTIFICATES Membership Subordinated Certificates Prior to June 2009, CFC members were required to purchase membership subordinated certificates as a condition of membership. Such certificates are interest-bearing, unsecured, subordinated debt. Membership certificates typically have an original maturity of 100 years and pay interest at 5% semi-annually. No requirement to purchase membership certificates has existed for NCSC or RTFC members. Loan and Guarantee Subordinated Certificates Members obtaining long-term loans, certain line of credit loans or guarantees may be required to purchase additional loan or guarantee subordinated certificates with each such loan or guarantee based on the borrower’s debt-to-equity ratio with CFC. These certificates are unsecured, subordinated debt and may be interest bearing or non-interest bearing. Under our current policy, most borrowers requesting standard loans are not required to buy subordinated certificates as a condition of a loan or guarantee. Borrowers meeting certain criteria, including but not limited to, high leverage ratios, or borrowers requesting large facilities, may be required to purchase loan or guarantee subordinated certificates or member capital securities (described below) as a condition of the loan. Loan subordinated certificates have the same maturity as the related long-term loan. Some certificates may amortize annually based on the outstanding loan balance. The interest rates payable on guarantee subordinated certificates purchased in conjunction with our guarantee program vary in accordance with applicable CFC policy. Guarantee subordinated certificates have the same maturity as the related guarantee. Member Capital Securities CFC offers member capital securities to its voting members. Member capital securities are interest-bearing, unsecured obligations of CFC, which are subordinate to all existing and future senior and subordinated indebtedness of CFC held by non-members of CFC, but rank proportionally to our member subordinated certificates. Member capital securities mature 30 years from the date of issuance, typically pay interest at 5% and are callable at par at our option 10 years from the date of issuance and anytime thereafter. The interest rate for new member capital securities issuance is set at the time of issuance. These securities represent voluntary investments in CFC by the members. The following table displays members’ subordinated certificates and the weighted-average interest rates as of May 31, 2021 and 2020. Table 9.1: Members’ Subordinated Certificates Outstanding and Weighted-Average Interest Rates May 31, 2021 2020 (Dollars in thousands) Amounts Weighted- Amounts Weighted- Membership subordinated certificates: Certificates maturing 2021 through 2119 $ 628,582 $ 630,467 Subscribed and unissued (1) 12 16 Total membership subordinated certificates 628,594 4.95 % 630,483 4.95 % Loan and guarantee subordinated certificates: Interest-bearing loan subordinated certificates maturing through 2047 223,067 280,372 Non-interest-bearing loan subordinated certificates maturing through 2047 132,203 144,258 Subscribed and unissued (1) 45 45 Total loan subordinated certificates 355,315 2.61 424,675 2.71 Interest-bearing guarantee subordinated certificates maturing through 2044 31,581 43,700 Non-interest-bearing guarantee subordinated certificates maturing through 2037 — 14,590 Total guarantee subordinated certificates 31,581 6.06 58,290 4.43 Total loan and guarantee subordinated certificates 386,896 2.89 482,965 2.92 Member capital securities: Securities maturing through 2050 239,170 5.00 226,170 5.00 Total members’ subordinated certificates $ 1,254,660 4.32 $ 1,339,618 4.22 ___________________________ (1) The subscribed and unissued subordinated certificates represent subordinated certificates that members are required to purchase. Upon collection of full payment of the subordinated certificate amount, the certificate will be reclassified from subscribed and unissued to outstanding. The weighted-average maturity for all membership subordinated certificates outstanding was 56 years as of both May 31, 2021 and 2020 . The following table presents the amount of members’ subordinated certificates maturing in each of the five fiscal years subsequent to May 31, 2021 and thereafter. Table 9.2: Members’ Subordinated Certificate Maturities and Weighted-Average Interest Rates (Dollars in thousands) Amount Maturing (1) Weighted-Average 2022 $ 6,879 2.64 % 2023 18,820 3.87 2024 10,635 2.46 2025 10,458 2.87 2026 55,073 2.88 Thereafter 1,152,739 4.44 Total $ 1,254,604 4.32 ___________________________ (1) Excludes $0.06 million in subscribed and unissued member subordinated certificates for which a payment has been received, but no certificate has been issued. Amortizing member loan subordinated certificates totaling $190 million are amortizing annually based on the unpaid principal balance of the related loan. Amortization payments on these certificates totaled $13 million in fiscal year 2021 and represented 7% of amortizing loan subordinated certificates outstanding. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Notes) | 12 Months Ended |
May 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | NOTE 10—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We are an end user of derivative financial instruments and do not engage in derivative trading. Derivatives may be privately negotiated contracts, which are often referred to as OTC derivatives, or they may be listed and traded on an exchange. We generally engage in OTC derivative transactions. Our derivative instruments are an integral part of our interest rate risk-management strategy. Our principal purpose in using derivatives is to manage our aggregate interest rate risk profile within prescribed risk parameters. The derivative instruments we use primarily include interest rate swaps, which we typically hold to maturity. In addition, we may on occasion use treasury locks to manage the interest rate risk associated with future debt issuance or debt that is scheduled to reprice in the future. Notional Amount and Maturities of Derivatives Not Designated as Accounting Hedges The notional amount is used only as the basis on which interest payments are determined and is not the amount exchanged, nor recorded on our consolidated balance sheets. The following table shows, by derivative instrument type, the notional amount, the weighted-average rate paid and the weighted-average interest rate received for our interest rate swaps as of May 31, 2021 and 2020. For the substantial majority of interest rate swap agreements, a LIBOR index is currently used as the basis for determining variable interest payment amounts each period. Table 10.1: Derivative Notional Amount and Weighted-Average Rates May 31, 2021 2020 (Dollars in thousands) Notional Weighted- Weighted- Notional Weighted- Weighted- Pay-fixed swaps $ 6,579,516 2.65 % 0.20 % $ 6,604,808 2.78 % 0.88 % Receive-fixed swaps 2,399,000 0.92 2.80 2,699,000 1.54 2.75 Subtotal 8,978,516 2.19 0.89 9,303,808 2.42 1.42 Forward pay-fixed swaps — 3,000 Total interest rate swaps $ 8,978,516 $ 9,306,808 The following table presents the maturities, based on the notional amount of our interest rate swaps as of May 31, 2021. Table 10.2: Derivative Notional Amount Maturities Notional Amount Notional Amortization and Maturities (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter Interest rate swaps $8,978,516 $735,554 $558,159 $643,849 $100,000 $798,822 $6,142,132 Impact of Derivatives on Consolidated Balance Sheets The following table displays the fair value of the derivative assets and derivative liabilities, by derivatives type, recorded on our consolidated balance sheets and the related outstanding notional amount as of May 31, 2021 and 2020. Table 10.3: Derivative Assets and Liabilities at Fair Value May 31, 2021 2020 (Dollars in thousands) Fair Value Notional Amount Fair Value Notional Amount (1) Derivative assets: Interest rate swaps $ 121,259 $ 2,560,618 $ 173,195 $ 2,699,000 Derivative liabilities: Interest rate swaps $ 584,989 $ 6,417,898 $ 1,258,459 $ 6,607,808 ____________________________ (1) The notional amount includes $3 million notional amount of forward starting swaps, as shown above in Table 10.1: Derivative Notional Amount and Weighted Average Rates, with an effective start date of June 5, 2020, outstanding as of May 31, 2020. The fair value of these swaps as of May 31, 2020 is included in the above table and in our consolidated financial statements. 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, in “Note 1—Summary of Significant Accounting Policies,” 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 consolidated balance sheets as of May 31, 2021 and 2020, and provides information on the impact of netting provisions and collateral pledged, if any. Table 10.4: Derivative Gross and Net Amounts May 31, 2021 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 121,259 $ — $ 121,259 $ 121,259 $ — $ — Derivative liabilities: Interest rate swaps 584,989 — 584,989 121,259 — 463,730 May 31, 2020 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 173,195 $ — $ 173,195 $ 173,195 $ — $ — Derivative liabilities: Interest rate swaps 1,258,459 — 1,258,459 173,195 — 1,085,264 Impact of Derivatives on Consolidated Statements of Operations The primary factors affecting the fair value of our derivatives and the derivative gains (losses) recorded in our consolidated statements of operations include changes in interest rates, the shape of the swap curve and the composition of our derivative portfolio. We generally record derivative losses when interest rates decline and derivative gains when interest rates rise, as our derivative portfolio consists of a higher proportion of pay-fixed swaps than receive-fixed swaps. The following table presents the components of the derivative gains (losses) reported in our consolidated statements of operations for fiscal years 2021, 2020 and 2019. Derivative cash settlements interest expense represents the net periodic contractual interest amount for our interest-rate swaps during the reporting period. Derivative forward value gains (losses) represent the change in fair value of our interest rate swaps during the reporting period due to changes in expected future interest rates over the remaining life of our derivative contracts. We classify the derivative cash settlement amounts for the net periodic contractual interest expense on our interest rate swaps as an operating activity in our consolidated statements of cash flows. Table 10.5: Derivative Gains (Losses) Year Ended May 31, (Dollars in thousands) 2021 2020 2019 Derivative gains (losses) attributable to: Derivative cash settlements interest expense $ (115,645) $ (55,873) $ (43,611) Derivative forward value gains (losses) 621,946 (734,278) (319,730) Derivative gains (losses) $ 506,301 $ (790,151) $ (363,341) 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. On March 5, 2021, S&P downgraded our senior unsecured credit ratings from A to A- with a negative outlook. Our senior unsecured credit ratings from Moody’s, S&P and Fitch were A2, A- and A, respectively, as of May 31, 2021. Moody’s and Fitch had our ratings on stable outlook as of May 31, 2021. S&P had our ratings on negative outlook as of May 31, 2021. As of the date of the filing of this Report , no action has been taken by Moody’s and Fitch on our ratings. The following table displays the notional amounts of our derivative contracts with rating triggers as of May 31, 2021, 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, 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 assume that amounts for each counterparty would be netted in accordance with the provisions of the master netting agreements with the 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. Table 10.6: Derivative Credit Rating Trigger Exposure (Dollars in thousands) Notional Payable Due from CFC Receivable Due to CFC Net Payable Impact of rating downgrade trigger: Falls below A3/A- (1) $ 41,080 $ (8,168) $ — $ (8,168) Falls below Baa1/BBB+ 6,031,373 (304,922) — (304,922) Falls to or below Baa2/BBB (2) 407,712 (14,835) — (14,835) Total $ 6,480,165 $ (327,925) $ — $ (327,925) ___________________________ (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 interest rate swaps with one counterparty that are 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. The outstanding notional amount of these swaps, which is not included in the above table , totaled $222 million as of May 31, 2021. These swaps were in an unrealized loss position of $22 million as of May 31, 2021. Our largest counterparty exposure, based on the outstanding notional amount, accounted for approximately 24% and 25% of the total outstanding notional amount of derivatives as of May 31, 2021 and 2020, respectively. The aggregate fair value amount, including the credit valuation adjustment, of all interest rate swaps with rating triggers that were in a net liability position was $344 million |
Equity (Notes)
Equity (Notes) | 12 Months Ended |
May 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 11—EQUITY Total equity increased $751 million to $1,400 million as of May 31, 2021, attributable to the combined impact of our reported net income of $814 million for the year ended May 31, 2021, which was partially offset by the retirement of patronage capital of $60 million authorized by the CFC Board of Directors in July 2020 and paid to members in September 2020, and a decrease to retained earnings of $4 million from the cumulative-effect adjustment recorded at adoption of the CECL accounting standard on June 1, 2020. Table 11.1: Equity May 31, (Dollars in thousands) 2021 2020 Membership fees $ 968 $ 969 Educational fund 2,157 2,224 Total membership fees and educational fund 3,125 3,193 Patronage capital allocated 923,970 894,066 Members’ capital reserve 909,749 807,320 Unallocated net income (loss): Prior year-end cumulative derivative forward value losses (1,079,739) (348,965) Current-year derivative forward value gains (losses) (1) 618,577 (730,774) Current year-end cumulative derivative forward value losses (461,162) (1,079,739) Other unallocated net income (709) 3,191 Unallocated net loss (461,871) (1,076,548) CFC retained equity 1,374,973 628,031 Accumulated other comprehensive loss (25) (1,910) Total CFC equity 1,374,948 626,121 Noncontrolling interests 24,931 22,701 Total equity $ 1,399,879 $ 648,822 ____________________________ (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 16—Business Segments” for the statements of operations for CFC. Allocation of Net Earnings and Retirement of Patronage Capital—CFC District of Columbia cooperative law requires cooperatives to allocate net earnings to patrons, to a general reserve in an amount sufficient to maintain a balance of at least 50% of paid-in capital and to a cooperative educational fund, as well as permits additional allocations to board-approved reserves. District of Columbia cooperative law also requires that a cooperative’s net earnings be allocated to all patrons in proportion to their individual patronage and each patron’s allocation be distributed to the patron unless the patron agrees that the cooperative may retain its share as additional capital. Annually, the CFC Board of Directors allocates its net earnings to its patrons in the form of patronage capital, to a cooperative educational fund, to a general reserve, if necessary, and to board-approved reserves. An allocation to the general reserve is made, if necessary, to maintain the balance of the general reserve at 50% of the membership fees collected. CFC’s bylaws require the allocation to the cooperative educational fund to be at least 0.25% of its net earnings. Funds from the cooperative educational fund are disbursed annually to statewide cooperative organizations to fund the teaching of cooperative principles and for other cooperative education programs. Currently, CFC has one additional board-approved reserve, the members’ capital reserve. The CFC Board of Directors determines the amount of net earnings that is allocated to the members’ capital reserve, if any. The members’ capital reserve represents net earnings that CFC holds to increase equity retention. The net earnings held in the members’ capital reserve have not been specifically allocated to members, but may be allocated to individual members in the future as patronage capital if authorized by the CFC Board of Directors. All remaining net earnings are allocated to CFC’s members in the form of patronage capital. The amount of net earnings allocated to each member is based on the member’s patronage of CFC’s lending programs during the year. No interest is earned by members on allocated patronage capital. There is no effect on CFC’s total equity as a result of allocating net earnings to members in the form of patronage capital or to board-approved reserves. The CFC Board of Directors has voted annually to retire a portion of the patronage capital allocation. Upon retirement, patronage capital is paid out in cash to the members to whom it was allocated. CFC’s total equity is reduced by the amount of patronage capital retired to its members and by amounts disbursed from board-approved reserves. CFC’s net earnings for determining allocations is based on CFC’s non-GAAP adjusted net income, which excludes the impact of derivative forward value gains and losses. The current policy of the CFC Board of Directors is to retire 50% of the prior year’s allocated patronage capital and hold the remaining 50% for 25 years. The retirement amount and timing is subject to annual approval by the CFC Board of Directors. In May 2021, the CFC Board of Directors authorized the allocation of $1 million of net earnings for fiscal year 2021 to the cooperative educational fund. In July 2021, the CFC Board of Directors authorized the allocation of net earnings for fiscal year 2021 as follows: $90 million to members in the form of patronage capital and $102 million to the members’ capital reserve. In July 2021, the CFC Board of D irectors also authorized the retirement of patronage capital totaling $58 million, of which $45 million represented 50% of the patronage capital allocation for fiscal year 2021 and $13 million represented the portion of the allocation from net earnings for fiscal year 1996 that has been held for 25 years pursuant to the CFC Board of Directors’ policy. We expect to return the authorized patronage capital retirement amount of $58 million to members in cash in the second quarter of fiscal year 2022. The remaining portion of the patronage capital allocation for fiscal year 2021 will be retained by CFC for 25 years pursuant to the guidelines adopted by the CFC Board of Directors in June 2009. In May 2020, the CFC Board of Directors authorized the allocation of $1 million of net earnings for fiscal year 2020 to the cooperative educational fund. In July 2020 the CFC Board of Directors authorized the allocation of net earnings for fiscal year 2020 as follows: $96 million to members in the form of patronage capital and $48 million to the members’ capital reserve. In July 2020, the CFC Board of Directors also authorized the retirement of patronage capital totaling $60 million, of which $48 million represented 50% of the patronage capital allocation for fiscal year 2020 and $12 million represented the portion of the allocation from net earnings for fiscal year 1995 that has been held for 25 years pursuant to the CFC Board of Directors’ policy. This amount was returned to members in cash in September 2020. The remaining portion of the patronage capital allocation for fiscal year 2020 will be retained by CFC for 25 years pursuant to the guidelines adopted by the CFC Board of Directors in June 2009. Future allocations and retirements of net earnings may be made annually as determined by the CFC Board of Directors with due regard for its 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 and regulations. CFC’s total equity includes noncontrolling interests, which consist of 100% of the equity of NCSC and RTFC, as the members of NCSC and RTFC own or control 100% of the interests in their respective companies. NCSC and RTFC also allocate annual net earnings, subject to approval by the board of directors for each company. The allocation of net earnings by NCSC and RTFC to members or board-approved reserves does not affect noncontrolling interests; however, the cash retirement of amounts allocated to members or to disbursements from board-approved reserves results in a reduction to noncontrolling interests. Allocation of Net Earnings and Retirement of Patronage Capital—RTFC In accordance with District of Columbia cooperative law and its bylaws and board policies, RTFC allocates its net earnings to its patrons, to a cooperative educational fund and to a general reserve, if necessary. RTFC’s bylaws require that it allocate at least 1% of net income to a cooperative educational fund. Funds from the cooperative educational fund are disbursed annually to fund the teaching of cooperative principles and for other cooperative education programs. An allocation to the general reserve is made, if necessary, to maintain the balance of the general reserve at 50% of the membership fees collected. The remainder is allocated to borrowers in proportion to their patronage. RTFC retires at least 20% of its annual allocation, if any, to members in cash prior to filing the applicable tax return. Any additional amounts are retired as determined by the RTFC Board of Directors, taking into consideration RTFC’s financial condition. Allocation of Net Earnings—NCSC NCSC’s bylaws require that it allocate at least 0.25% of its net earnings to a cooperative educational fund and an amount to the general reserve required to maintain the general reserve balance at 50% of membership fees collected. Funds from the cooperative educational fund are disbursed annually to fund the teaching of cooperative principles and for other cooperative education programs. Accumulated Other Comprehensive Income (Loss) The following table presents, by component, changes in AOCI for the years ended May 31, 2021 and 2020 and the balance of each component as of the end of each respective period. Table 11.2: Changes in Accumulated Other Comprehensive Income (Loss) Year Ended May 31, 2021 (Dollars in thousands) Derivatives Unrealized Gains (1) Defined Benefit Plan Unrealized Losses (2) Total Beginning balance $ 2,130 $ (4,040) $ (1,910) Gains reclassified into earnings (412) — (412) Defined benefit plan adjustments — 2,297 2,297 Other comprehensive loss (412) 2,297 1,885 Ending balance $ 1,718 $ (1,743) $ (25) Year Ended May 31, 2020 (Dollars in thousands) Derivatives Unrealized Gains (1) Defined Benefit Plan Unrealized Losses (2) Total Beginning balance $ 2,571 $ (2,718) $ (147) Gains reclassified into earnings (441) — (441) Defined benefit plan adjustments — (1,322) (1,322) Other comprehensive loss (441) (1,322) (1,763) Ending balance $ 2,130 $ (4,040) $ (1,910) ____________________________ (1) Reclassified to earnings as a component of the derivative gains (losses) line item presented on our consolidated statements of operations. (2) Reclassified to earnings as a component of the other non-interest expense line item presented on our consolidated statements of operations. We expect to reclassify less than $1 million of amounts in AOCI related to unrealized derivative gains to earnings over the next 12 months. |
Employee Benefits (Notes)
Employee Benefits (Notes) | 12 Months Ended |
May 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefits | NOTE 12—EMPLOYEE BENEFITS National Rural Electric Cooperative Association (“NRECA”) Retirement Security Plan CFC is a participant in the NRECA Retirement Security Plan (“the Retirement Security Plan”), a multiple-employer defined benefit pension plan. The employer identification number of the Retirement Security Plan is 53-0116145, and the plan number is 333. Plan information is available publicly through the annual Form 5500, including attachments. The Retirement Security Plan is a qualified plan in which all employees are eligible to participate upon completion of one year of service. Under this plan, participating employees are entitled to receive annually, under a 50% joint and surviving spouse annuity, 1.70% of the average of their five highest base salaries during their participation in the plan, multiplied by the number of years of participation in the plan. The risks of participating in the multiple-employer plan are different from the risks of single-employer plans due to the following characteristics of the plan: • Assets contributed to the multiple-employer plan by one participating employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If CFC chooses to stop participating in the plan, CFC may be required to pay a withdrawal liability representing an amount based on the underfunded status of the plan. Because of the current funding status of the Retirement Security Plan, it is not subject to a certified zone status determination under the Pension Protection Act of 2006 (“PPA”). Based on the PPA target and PPA actuarial value of the plan assets, it was more than 80% funded as of January 1, 2021, 2020 and 2019. We made contributions to the Retirement Security Plan of $4 million, $5 million and $5 million in fiscal years 2021, 2020 and 2019, respectively. In each of these years, our contribution represented less than 5% of total contributions made to the plan by all participating employers. Our contribution did not include a surcharge. CFC’s expense is limited to the annual premium to participate in the Retirement Security Plan. Because it is a multiple-employer plan, there is no funding liability for CFC for the plan. There were no funding improvement plans, rehabilitation plans implemented or pending, and no required minimum contributions. There are no collective bargaining agreements in place that cover CFC’s employees. Pension Restoration Plan The Pension Restoration Plan (“PRP”) is a nonqualified defined benefit plan established to provide supplemental benefits to certain eligible employees whose compensation exceeds the Internal Revenue Service (“IRS”) limits for the qualified Retirement Security Plan. The PRP restores the value of the Retirement Security Plan for eligib le officers to the level it would be if the IRS limits on annual pay and annual annuity benefits were not in place. The limit was $290,000 for calendar year 2021. The PRP, which is administered by NRECA, was frozen as of December 31, 2014. The benefit and payout formula under the nonqualified PRP component of the Retirement Security Plan is similar to that under the qualified plan component. Under the PRP, the amount NRECA invoices us for the Retirement Security Plan is based on the full compensation paid to each covered employee. Upon retirement of an employee covered under the PRP, NRECA will calculate the retirement benefits to be paid both with and without consideration of the IRS compensation limits. We will then pay the nonqualified supplemental benefit to the covered employee. NRECA will provide a credit for supplemental benefit payments made by us to covered employees against future contributions we are required to make to the Retirement Security Plan. There were two executive officers who were participants in this plan. Both have satisfied the provisions established to receive the benefit from this plan. Since there is no longer a risk of forfeiture of the benefit under the PRP, we will make distributions of any earned benefit from the plan to each of the executive officers included in the plan and the distributions will be credited back to us by NRECA. Accordingly, the distributions have no impact on our consolidated financial statements. Executive Benefit Restoration Plan NRECA restricted additional participation in the PRP in December 2014. We therefore adopted a supplemental top-hat Executive Benefit Restoration (“EBR”) Plan, effective January 1, 2015. The EBR Plan is a nonqualified, unfunded plan maintained by CFC to provide retirement benefits to a select group of executive officers whose compensation exceeds IRS limits for qualified defined benefit plans. There is a risk of forfeiture if participants leave the company prior to becoming fully vested in the EBR Plan. This plan included five and seven participants as of May 31, 2021 and 2020, respectively. We recognized net periodic pension expense for this plan of approximately $2 million, $2 million and $1 million in fiscal years 2021, 2020 and 2019, respectively. The unfunded projected benefit obligation of this plan, which is included on our consolidated balance sheets as a component of other liabilities, decreased to $5 million as of May 31, 2021 from $7 million as of May 31, 2021 and 2020, respectively. The decrease in the projected benefit obligation was primarily due to lump-sum settlement payments to plan participants who became fully vested during the year. CFC made contributions to the plan of $1 million and $2 million in fiscal years 2021 and 2020, respectively, for lump-sum settlement payments to fully-vested participants of $1 million and $2 million in each respective year. There were no lump-sum settlement payments made in fiscal year 2019. Unrecognized pension costs recorded in accumulated other comprehensive income decreased to $2 million as of May 31, 2021, from $4 million as of May 31, 2020, largely due to the lump-sum payments to fully-vested plan participants. We expect to amortize less than $1 million of the unrecognized pension costs as a component of our net periodic pension benefit expense in fiscal year 2022. As a result of the settlement payments in fiscal year 2021 and 2020, we recognized a combined settlement and curtailment loss of approximately $1 million in fiscal year 2021 and a settlement loss of approximately $1 million in fiscal year 2020. The curtailment and settlements losses are recorded as a component of non-interest expense on our consolidated statements of operations. Defined Contribution Plan CFC offers a 401(k) defined contribution savings program, the 401(k) Pension Plan, to all employees who have completed a minimum of 1,000 hours of service in either the first 12 consecutive months or first full calendar year of employment. We contribute an amount up to 2% of an employee’s salary each year for all employees participating in the program with a minimum 2% employee contribution. We contributed approximately $1 million to the plan in each of fiscal years 2021, 2020 and 2019. |
Guarantees (Notes)
Guarantees (Notes) | 12 Months Ended |
May 31, 2021 | |
Guarantees [Abstract] | |
Guarantees | NOTE 13—GUARANTEES We guarantee certain contractual obligations of our members so they may obtain various forms of financing. We use the same credit policies and monitoring procedures in providing guarantees as we do for loans and commitments. If a member system defaults on its obligation to pay debt service, then we are obligated to pay any required amounts under our guarantees. Meeting our guarantee obligations satisfies the underlying obligation of our member systems and prevents the exercise of remedies by the guarantee beneficiary based upon a payment default by a member system. In general, the member system is required to repay any amount advanced by us with interest, pursuant to the documents evidencing the member system’s reimbursement obligation. The following table displays the notional amount of our outstanding guarantee obligations, by guarantee type and by member class, as of May 31, 2021 and 2020. Table 13.1: Guarantees Outstanding by Type and Member Class May 31, (Dollars in thousands) 2021 2020 Guarantee type: Long-term tax-exempt bonds (1) $ 145,025 $ 263,875 Letters of credit (2) 389,735 413,839 Other guarantees 154,320 143,072 Total $ 689,080 $ 820,786 Member class: CFC: Distribution $ 251,023 $ 266,301 Power supply 415,984 538,532 Statewide and associate (3) 5,523 5,954 CFC total 672,530 810,787 NCSC 16,550 9,999 RTFC — — Total $ 689,080 $ 820,786 ____________________________ (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. (3) Includes CFC guarantees to NCSC and RTFC members totaling $3 million as of both May 31, 2021 and 2020. We guarantee debt issued in connection with the construction or acquisition of pollution control, solid waste disposal, industrial development and electric distribution facilities, classified as long-term tax-exempt bonds in the table above. We unconditionally guarantee to the holders or to trustees for the benefit of holders of these bonds the full principal, interest, and in most cases, premium, if any, on each bond when due. If a member system defaults in its obligation to pay debt service, then we are obligated to pay any required amounts under our guarantees. Such payment will prevent the occurrence of an event of default that would otherwise permit acceleration of the bond issue. In general, the member system is required to repay any amount advanced by us with interest, pursuant to the documents evidencing the member system’s reimbursement obligation. Long-term tax-exempt bonds of $145 million and $264 million as of May 31, 2021 and 2020, respectively, included $145 million and $244 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 a s a long-term loan. The maturities for long-term tax-exempt bonds and the related guarantees extend through calendar year 2037. Of the outstanding letters of credit of $390 million and $414 million as of May 31, 2021 and 2020, respectively, $104 million and $106 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 May 31, 2021. The maturities for the outstanding letters of credit as of May 31, 2021 extend through calenda r year 2040. I n March 2021, subsequent to Brazos’ bankruptcy filing, we had draws totaling $3 million on the letters of credit for Brazos. With the exception of Brazos, we were not required to perform pursuant to any of our guarantee obligations during fiscal year 2021. In addition to the letters of credit listed in the table above, under master letter of credit facilities in place as of May 31, 2021, we may be required to issue up to an additional $64 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 May 31, 2021. Prior to issuing a letter of credit, we would confirm 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 $154 million and $143 million as of May 31, 2021 and 2020, respectively, of which $25 million was secured as of both May 31, 2021 and 2020. The maturities for these other guarantees listed in the table above extend through calendar year 2025. Gu arantees under which our right of recovery from our members was not secured totaled $415 million and $426 million and represented 60% and 52% of total guarantees as of May 31, 2021 and 2020, respectively. In addition to the guarantees described above, we were also the liquidity provider for $145 million of variable-rate tax-exempt bonds as of May 31, 2021, 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 fiscal years 2021, 2020 or 2019. Guarantee Liability We recorded a total guarantee liability for noncontingent and contingent exposures related to guarantees and liquidity obligations of $10 million and $11 million as of May 31, 2021 and 2020, respectively. The noncontingent guarantee liability, which pertains to our obligation to stand ready to perform over the term of our guarantees and liquidity obligations we have entered into or modified since January 1, 2003, was $9 million and $10 million as of May 31, 2021 and 2020, respectively. The contingent guarantee liability, which is based on management’s estimate of exposure to losses within our guarantee portfolio, was $1 million as of both May 31, 2021 and 2020. The following table details the scheduled maturities of our outstanding guarantees in each of the five fiscal years following May 31, 2021 and thereafter: Table 13.2: Guarantees Outstanding Maturities (Dollars in thousands) Amount 2022 $ 219,647 2023 26,825 2024 52,750 2025 90,964 2026 157,362 Thereafter 141,532 Total $ 689,080 |
Fair Value Measurement (Notes)
Fair Value Measurement (Notes) | 12 Months Ended |
May 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 14—FAIR VALUE MEASUREMENT Fair value, also referred to as an exit price, is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. The fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The levels, in priority order based on the extent to which observable inputs are available to measure fair value, are Level 1, Level 2 and Level 3. The accounting guidance for fair value measurements requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. We describe the valuation technique for each level in “Note 1—Summary of Significant Accounting Policies.” The following table presents the carrying value and estimated fair value of all of our financial instruments, including those carried at amortized cost, as of May 31, 2021 and 2020. The table also displays the classification level within the fair value hierarchy based on the degree of observability of the inputs used in the valuation technique for estimating fair value. Table 14.1: Fair Value of Financial Instruments May 31, 2021 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 295,063 $ 295,063 $ 295,063 $ — $ — Restricted cash 8,298 8,298 8,298 — — Equity securities, at fair value 35,102 35,102 35,102 — — Debt securities trading, at fair value 576,175 576,175 — 576,175 — Deferred compensation investments 7,222 7,222 7,222 — — Loans to members, net 28,341,429 29,967,692 — — 29,967,692 Accrued interest receivable 107,856 107,856 — 107,856 — Derivative assets 121,259 121,259 — 121,259 — Total financial assets $ 29,492,404 $ 31,118,667 $ 345,685 $ 805,290 $ 29,967,692 Liabilities: Short-term borrowings $ 4,582,096 $ 4,582,329 $ — $ 4,582,329 $ — Long-term debt 20,603,123 21,799,736 — 12,476,073 9,323,663 Accrued interest payable 123,672 123,672 — 123,672 — Guarantee liability 10,041 10,841 — — 10,841 Derivative liabilities 584,989 584,989 — 584,989 — Subordinated deferrable debt 986,315 1,062,748 265,200 797,548 — Members’ subordinated certificates 1,254,660 1,254,660 — — 1,254,660 Total financial liabilities $ 28,144,896 $ 29,418,975 $ 265,200 $ 18,564,611 $ 10,589,164 May 31, 2020 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 671,372 $ 671,372 $ 671,372 $ — $ — Restricted cash 8,647 8,647 8,647 — — Equity securities, at fair value 60,735 60,735 60,735 — — Debt securities trading, at fair value 309,400 309,400 — 309,400 — Deferred compensation investments 5,496 5,496 5,496 — — Loans to members, net 26,649,255 29,252,065 — — 29,252,065 Accrued interest receivable 117,138 117,138 — 117,138 — Debt service reserve funds 14,591 14,591 14,591 — — Derivative assets 173,195 173,195 — 173,195 — Total financial assets $ 28,009,829 $ 30,612,639 $ 760,841 $ 599,733 $ 29,252,065 Liabilities: Short-term borrowings $ 3,961,985 $ 3,963,164 $ — $ 3,713,164 $ 250,000 Long-term debt 19,712,024 21,826,337 — 11,981,580 9,844,757 Accrued interest payable 139,619 139,619 — 139,619 — Guarantee liability 10,937 11,948 — — 11,948 Derivative liabilities 1,258,459 1,258,459 — 1,258,459 — Subordinated deferrable debt 986,119 1,030,108 — 1,030,108 — Members’ subordinated certificates 1,339,618 1,339,618 — — 1,339,618 Total financial liabilities $ 27,408,761 $ 29,569,253 $ — $ 18,122,930 $ 11,446,323 Loans to Members, Net Because of the interest rate repricing options we provide to borrowers on loan advances and other characteristics of our loans, there is no ready market from which to obtain fair value quotes or observable inputs for similar loans. As a result, we are unable to use the exit price to estimate the fair value of loans to members. We therefore estimate fair value for fixed-rate loans by discounting the expected future cash flows based on the current rate at which we would make a similar new loan for the same remaining maturity to a borrower. The assumed maturity date used in estimating the fair value of loans with a fixed rate for a selected rate term is the next repricing date because at the repricing date, the loan will reprice at the current market rate. The carrying value of our variable-rate loans adjusted for credit risk approximates fair value since variable-rate loans are eligible to be reset at least monthly. The fair value of loans with different risk characteristics, specifically nonperforming and restructured loans, is estimated using collateral valuations or by adjusting cash flows for credit risk and discounting those cash flows using the current rates at which similar loans would be made by us to borrowers for the same remaining maturities. See below for information on how we estimate the fair value of certain individually evaluated loans. 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 include but are 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 into or out of Level 3 of the fair value hierarchy during the fiscal years ended May 31, 2021 and 2020. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the carrying value and fair value of financial instruments reported in our consolidated financial statements at fair value on a recurring basis as of May 31, 2021 and 2020, and the classification of the valuation technique within the fair value hierarchy. We did not have any assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs for the years ended May 31, 2021 and 2020. Table 14.2: Assets and Liabilities Measured at Fair Value on a Recurring Basis May 31, 2021 2020 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities, at fair value $ 35,102 $ — $ 35,102 $ 60,735 $ — $ 60,735 Debt securities trading, at fair value — 576,175 576,175 — 309,400 309,400 Deferred compensation investments 7,222 — 7,222 5,496 — 5,496 Derivative assets — 121,259 121,259 — 173,195 173,195 Liabilities: Derivative liabilities — 584,989 584,989 — 1,258,459 1,258,459 Below is a description of the valuation techniques we use to estimate fair value of our financial assets and liabilities recorded at fair value on a recurring basis, the significant inputs used in those techniques, if applicable, and the classification within the fair value hierarchy. Equity Securities Our investments in equity securities consist of investments in Farmer Mac Class A common stock and Series C preferred stock. These securities are reported at fair value in our consolidated balance sheets. We determine the fair value based on quoted prices on the stock exchange where the stock is traded. That stock exchange with respect to Farmer Mac Class A common stock is an active market based on the volume of shares transacted. Fair values for these securities are classified within Level 1 of the fair value hierarchy. Debt Securities Trading As discussed above in “Note 1—Summary of Significant Accounting Policies” our debt securities consist of investments in certificates of deposit with maturities greater than 90 days, commercial paper, corporate debt securities, municipality debt securities, commercial MBS, foreign government debt securities and other ABS and were classified as trading as of May 31, 2021. Management estimates the fair value of our debt securities utilizing the assistance of third-party pricing services. Methodologies employed, controls relied upon and inputs used by third-party pricing vendors are subject to management review when such services are provided. This review may consist of, in part, obtaining and evaluating control reports issued and pricing methodology materials distributed. We review the pricing methodologies provided by the vendors in order to determine if observable market information is being used to determine the fair value versus unobservable inputs. Investment securities traded in secondary markets are typically valued using unadjusted vendor prices. These investment securities, which include those measured using unadjusted vendor prices, are generally classified as Level 2 because the valuation typically involves using quoted market prices for similar securities, pricing models, discounted cash flow analyses using significant observable market where available or a combination of multiple valuation techniques for which all significant assumptions are observable in the market. Deferred Compensation Investments CFC offers a nonqualified 457(b) deferred compensation plan to highly compensated employees and board members. Such amounts deferred by employees are invested by the company. The deferred compensation investments are presented as other assets in the consolidated balance sheets in the other assets category at fair value. We calculate fair value based on the daily published and quoted net asset value, and these investments are classified within Level 1 of the fair value hierarchy. Derivative Instruments Our derivatives primarily consist of OTC interest rate swaps. All of our swap agreements are subject to master netting agreements. There is not an active secondary market for the types of interest rate swaps we use. We determine the fair value of our derivatives using models that incorporate observable market inputs, such as spot LIBOR rates, Eurodollar futures contracts and market swap rates. These inputs can vary depending on the type of derivative and nature of the underlying rate, price or index upon which the derivative’s value is based. The impact of counterparty nonperformance risk is considered when measuring the fair value of derivative assets. Internal pricing is compared against additional pricing sources, such as external valuation agents and other sources. Pricing variances among different pricing sources are analyzed and validated. The technique for determining the fair value for our interest rate swaps is classified as Level 2. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis on our consolidated balance sheets. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as in the application of lower of cost or fair value accounting or when we evaluate assets for impairment. We had certain loans measured at fair value on a nonrecurring basis as of and during the fiscal year ended May 31, 2021. We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of and during the fiscal year ended May 31, 2020. Collateral-Dependent Loans Because our loans are classified as held for investment and carried at amortized cost, we generally do not record loans at fair value on a recurring basis. However, we periodically record nonrecurring fair value adjustments for nonperforming collateral-dependent loans through the allowance for credit losses and provision for credit losses. We had nonperforming collateral-dependent loans outstanding to two affiliated RTFC telecommunications borrowers totaling $9 million as of May 31, 2021 . The collateral underlying these loans consisted primarily of U.S. Federal Communications Commission (“FCC”) wireless spectrum licenses. Our estimate of the fair value of these loans was $6 million as of May 31, 2021. As a result, we recorded a nonrecurring fair value adjustment for these loans of $3 million for the year ended May 31, 2021 . Significant Unobservable Level 3 Inputs We employ various approaches and techniques to estimate the fair value of loans where we expect repayment to be provided solely by the continued operation or sale of the underlying collateral, including estimated cash flows from the collateral, valuations obtained from third-party specialists and comparable sales data. The technique depends on the nature of the collateral and the extent to which observable inputs are available. Our Credit Risk Management group reviews the valuation technique, including the use of any significant inputs that are not readily observable by market participants, to assess the appropriateness of the technique and the reasonableness of the assumptions involved. The estimated fair value of $6 million as of May 31, 2021 for the two affiliated RTFC nonperforming collateral-dependent loans totaling $9 million as of May 31, 2021 was derived primarily based on the lower end of limited publicly available sales data for the underlying FCC spectrum licenses collateral. |
Variable Interest Entities (Not
Variable Interest Entities (Notes) | 12 Months Ended |
May 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Disclosure | NOTE 15—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 with each company, 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. All loans that require NCSC board approval also require CFC board approval. CFC is not a member of NCSC and does not elect directors to the NCSC board. If CFC becomes a member of NCSC, it would control the nomination process for one NCSC director. NCSC members elect directors to the NCSC board based on one vote for each member. NCSC is a Class C member of CFC. All loans that require RTFC board approval also require approval by CFC for funding under RTFC’s credit facilities with CFC. CFC is not a member of RTFC and does not elect directors to the RTFC board. RTFC is a non-voting associate of CFC. RTFC members elect directors to the RTFC board based on one vote for each member. 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 consolidated financial statements, after intercompany eliminations, as of May 31, 2021 and 2020. Table 15.1: Consolidated Assets and Liabilities of Variable Interest Entities May 31, (Dollars in thousands) 2021 2020 Assets: Loans outstanding $ 1,127,251 $ 1,083,197 Other assets 11,343 11,352 Total assets $ 1,138,594 $ 1,094,549 Liabilities: Total liabilities $ 30,187 $ 38,803 The following table provides information on CFC’s credit commitments to NCSC and RTFC, and potential exposure to loss under these commitments as of May 31, 2021 and 2020. Table 15.2: CFC Exposure Under Credit Commitments to NCSC and RTFC May 31, (Dollars in thousands) 2021 2020 CFC credit commitments to NCSC and RTFC: Total CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,107,185 1,062,103 Credit enhancements: CFC third-party guarantees 16,550 9,999 Other credit enhancements 8,386 11,755 Total credit enhancements (2) 24,936 21,754 Total outstanding commitments 1,132,121 1,083,857 CFC credit commitments available (3) $ 4,367,879 $ 4,416,143 ____________________________ (1) Intercompany borrowings payable by NCSC and RTFC to CFC are eliminated in consolidation. (2) Excludes interest due on these instruments. (3) Represents total CFC credit commitments less outstanding commitments as of each period-end. |
Business Segments (Notes)
Business Segments (Notes) | 12 Months Ended |
May 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 16—BUSINESS SEGMENTS Our consolidated financial statements include the financial results of CFC, NCSC and RTFC and certain entities created and controlled by CFC to hold foreclosed assets. Separate financial statements are produced for CFC, NCSC and RTFC and are the primary reports that management reviews in evaluating performance. The separate financial statements for CFC represent the consolidation of the financial results for CFC and the entities controlled by CFC. For more detail on the requirement to consolidate the financial results of NCSC and RTFC see “Note 1—Summary of Significant Accounting Policies.” Our activities are conducted through three operating segments that are based on each of the legal entities included in our consolidated financial statements: CFC, NCSC and RTFC. We report segment information for CFC separately, while we aggregate NCSC and RTFC and report combined segment information for these entities. CFC is the primary source of funding to NCSC. CFC is the sole source of funding to RTFC. Pursuant to a guarantee agreement, CFC has agreed to indemnify NCSC and RTFC for loan losses. The loan loss allowance at NCSC and RTFC is offset by a guarantee receivable from CFC. The following tables display segment results for the years ended May 31, 2021, 2020 and 2019, and assets attributable to each segment as of May 31, 2021 and 2020. Table 16.1: Business Segment Information Year Ended May 31, 2021 (Dollars in thousands) CFC Other Elimination Consolidated Statement of operations: Interest income $ 1,108,543 $ 43,632 $ (35,574) $ 1,116,601 Interest expense (702,063) (35,574) 35,574 (702,063) Net interest income 406,480 8,058 — 414,538 Provision for credit losses (28,507) — — (28,507) Net interest income after provision for credit losses 377,973 8,058 — 386,031 Non-interest income: Fee and other income 23,732 2,800 (7,603) 18,929 Derivative gains: Derivative cash settlements interest expense (113,951) (1,694) — (115,645) Derivative forward value gains 618,578 3,368 — 621,946 Derivative gains 504,627 1,674 — 506,301 Investment securities gains 1,495 — — 1,495 Total non-interest income 529,854 4,474 (7,603) 526,725 Non-interest expense: General and administrative expenses (93,085) (7,849) 6,229 (94,705) Losses on early extinguishment of debt (1,456) — — (1,456) Other non-interest expense (1,619) (1,374) 1,374 (1,619) Total non-interest expense (96,160) (9,223) 7,603 (97,780) Income before income taxes 811,667 3,309 — 814,976 Income tax provision — (998) — (998) Net income $ 811,667 $ 2,311 $ — $ 813,978 May 31, 2021 CFC Other Elimination Consolidated Assets: Total loans outstanding $ 28,395,040 $ 1,127,251 $ (1,107,184) $ 28,415,107 Deferred loan origination costs 11,854 — — 11,854 Loans to members 28,406,894 1,127,251 (1,107,184) 28,426,961 Less: Allowance for credit losses (85,532) — — (85,532) Loans to members, net 28,321,362 1,127,251 (1,107,184) 28,341,429 Other assets 1,285,591 100,298 (88,955) 1,296,934 Total assets $ 29,606,953 $ 1,227,549 $ (1,196,139) $ 29,638,363 Year Ended May 31, 2020 (Dollars in thousands) CFC Other Elimination Consolidated Statement of operations: Interest income $ 1,143,397 $ 47,107 $ (39,218) $ 1,151,286 Interest expense (820,841) (39,466) 39,218 (821,089) Net interest income 322,556 7,641 — 330,197 Provision for credit losses (35,590) — — (35,590) Net interest income after provision for credit losses 286,966 7,641 — 294,607 Non-interest income: Fee and other income 28,309 9,524 (14,872) 22,961 Derivative losses: Derivative cash settlements interest expense (54,707) (1,166) — (55,873) Derivative forward value losses (730,774) (3,504) — (734,278) Derivative losses (785,481) (4,670) — (790,151) Investment securities gains 9,431 — — 9,431 Total non-interest income (747,741) 4,854 (14,872) (757,759) Non-interest expense: General and administrative expenses (98,808) (8,940) 6,581 (101,167) Losses on early extinguishment of debt (69) (614) — (683) Other non-interest expense (25,588) (8,291) 8,291 (25,588) Total non-interest expense (124,465) (17,845) 14,872 (127,438) Loss before income taxes (585,240) (5,350) — (590,590) Income tax benefit — 1,160 — 1,160 Net loss $ (585,240) $ (4,190) $ — $ (589,430) May 31, 2020 CFC Other Elimination Consolidated Assets: Total loans outstanding $ 26,669,759 $ 1,083,197 $ (1,062,102) $ 26,690,854 Deferred loan origination costs 11,526 — — 11,526 Loans to members 26,681,285 1,083,197 (1,062,102) 26,702,380 Less: Allowance for credit losses (53,125) — — (53,125) Loans to members, net 26,628,160 1,083,197 (1,062,102) 26,649,255 Other assets 1,496,998 106,525 (95,173) 1,508,350 Total assets $ 28,125,158 $ 1,189,722 $ (1,157,275) $ 28,157,605 Year Ended May 31, 2019 (Dollars in thousands) CFC Other Elimination Consolidated Statement of operations: Interest income $ 1,126,869 $ 51,741 $ (42,940) $ 1,135,670 Interest expense (835,491) (43,658) 42,940 (836,209) Net interest income 291,378 8,083 — 299,461 Benefit for credit losses 1,266 — — 1,266 Net interest income after benefit for credit losses 292,644 8,083 — 300,727 Non-interest income: Fee and other income 20,515 2,655 (7,815) 15,355 Derivative losses: Derivative cash settlements interest expense (42,618) (993) — (43,611) Derivative forward value losses (318,135) (1,595) — (319,730) Derivative losses (360,753) (2,588) — (363,341) Investment securities losses (1,799) — — (1,799) Total non-interest income (342,037) 67 (7,815) (349,785) Non-interest expense: General and administrative expenses (91,063) (8,477) 6,374 (93,166) Losses on early extinguishment of debt (7,100) — — (7,100) Other non-interest expense (1,675) (1,441) 1,441 (1,675) Total non-interest expense (99,838) (9,918) 7,815 (101,941) Loss before income taxes (149,231) (1,768) — (150,999) Income tax provision — (211) — (211) Net loss $ (149,231) $ (1,979) $ — $ (151,210) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2021 | |
Accounting Policies [Abstract] | |
General Information | 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 systems, electric 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. National Cooperative Services Corporation (“NCSC”) is a taxable cooperative incorporated in 1981 in the District of Columbia as a member-owned cooperative association. NCSC’s principal purpose is to provide financing to members of CFC, entities eligible to be members of CFC and the for-profit and nonprofit entities that are owned, operated or controlled by or provide significant benefit to certain members of CFC. NCSC’s membership consists of distribution systems, power supply systems and statewide and regional associations that are members of CFC. CFC is the primary source of funding for NCSC and manages NCSC’s business operations under a management agreement that is automatically renewable on an annual basis unless terminated by either party. NCSC pays CFC a fee and, in exchange, CFC reimburses NCSC for loan losses under a guarantee agreement. As a taxable cooperative, NCSC pays income tax based on its reported taxable income and deductions. NCSC is headquartered with CFC in Dulles, Virginia. Rural Telephone Finance Cooperative (“RTFC”) is a taxable Subchapter T cooperative association originally incorporated in South Dakota in 1987 and reincorporated as a member-owned cooperative association in the District of Columbia in 2005. RTFC’s principal purpose is to provide financing for its rural telecommunications members and their affiliates. RTFC’s membership consists of a combination of not-for-profit and for-profit entities. CFC is the sole lender to and manages the business operations of RTFC through a management agreement that is automatically renewable on an annual basis unless terminated by either party. RTFC pays CFC a fee and, in exchange, CFC reimburses RTFC for loan losses under a guarantee agreement. As permitted under Subchapter T of the Internal Revenue Code, RTFC pays income tax based on its net income, excluding patronage-sourced earnings allocated to its patrons. RTFC is headquartered with CFC in Dulles, Virginia. |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of EstimatesThe accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). |
Use of Estimates | The preparation of financial statements in conformity with U.S. 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 credit losses and the fair value of financial assets and liabilities. Actual results could differ from these estimates. Certain reclassifications have been made to prior periods to conform to the current presentation. |
Principles of Consolidation | Principles of ConsolidationThe accompanying 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 May 31, 2021 or May 31, 2020. All intercompany balances and transactions have been eliminated. NCSC and RTFC are VIEs that are required to be consolidated by CFC. Unless stated otherwise, references to “we, “our” or “us” relate to CFC and its consolidated entities. |
Variable Interest Entities | Variable Interest Entities A VIE is an entity that has a total equity investment at risk that is not sufficient to finance its activities without additional subordinated financial support provided by another party, or where the group of equity holders does not have (i) the ability to make decisions about the entity’s activities that most significantly impact its economic performance; (ii) the obligation to absorb the entity’s expected losses; or (iii) the right to receive the entity’s expected residual returns. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash, certificates of deposit due from banks and other investments with original maturities of less than 90 days are classified as cash and cash equivalents. |
Restricted Cash | Restricted CashRestricted cash, which consists primarily of member funds held in escrow for certain specifically designed cooperative programs, totaled $8 million and $9 million as of May 31, 2021 and 2020 |
Investments | Investment Securities Our investment securities portfolio consists of equity and debt securities. We record purchases and sales of 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 are reported at fair value on our consolidated balance sheets with unrealized gains and losses recorded as a component of other non-interest income. All of our debt securities were classified as trading as of May 31, 2021 and 2020. Accordingly, we also report our debt securities at fair value on our consolidated balance sheets and record unrealized gains and losses as a component of non-interest income. Interest income is generally recognized over the contractual life of the securities based on the effective yield method. |
Non-performing Loans | Nonperforming Loans We classify loans as nonperforming when contractual principal or interest is 90 days past due or when we believe the collection of principal and interest in full is not reasonably assured. When a loan is classified as nonperforming, we generally place the loan on nonaccrual status. Interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed against current-period interest income. Interest income on nonaccrual loans is subsequently recognized only upon the receipt of cash payments. However, if we believe the ultimate collectability of the loan principal is in doubt, cash received is applied against the principal balance of the loan. Nonaccrual loans generally are returned to accrual status when principal and interest becomes and remains current for a specified period and repayment of the remaining contractual principal and interest is reasonably assured. |
Allowance for Credit Losses | Allowance for Credit Losses—Loan Portfolio Current Allowance Methodology Beginning June 1, 2020, the allowance for credit losses is determined based on management’s current estimate of expected credit losses over the remaining contractual term, adjusted as appropriate for estimated prepayments, of loans in our loan portfolio as of each balance sheet date. The allowance for credit losses for our loan portfolio is reported on our consolidated balance sheet as a valuation account that is deducted from loans to members to present the net amount we expect to collect over the life of our loans. We immediately recognize an allowance for expected credit losses upon origination of a loan. Adjustments to the allowance each period for changes in our estimate of lifetime expected credit losses are recognized in earnings through the provision for credit losses presented on our consolidated statements of operations. We estimate our allowance for lifetime expected credit losses for our loan portfolio using a probability of default/loss given default methodology. Our allowance for credit losses consists of a collective allowance and an asset-specific allowance. The collective allowance is established for loans in our portfolio that share similar risk characteristics and are therefore evaluated on a collective, or pool, basis in measuring expected credit losses. The asset-specific allowance is established for loans in our portfolio that do not share similar risk characteristics with other loans in our portfolio and are therefore evaluated on an individual basis in measuring expected credit losses. Expected credit losses are estimated based on historical experience, current conditions and forecasts, if applicable, that affect the collectibility of the reported amount. Since inception in 1969, CFC has experienced limited defaults and losses as the utility sector generally tends to be less sensitive to changes in the economy than other sectors largely due to the essential nature of the service provided. The losses we have incurred were not tied to economic factors, but rather to distinct operating issues related to each borrower. Given that our borrowers’ creditworthiness, and accordingly our loss experience, has not correlated to specific underlying macroeconomic variables, such as U.S. unemployment rates or gross domestic product (“GDP”) growth, we have not made adjustments to our historical loss rates for any economic forecast. We consider the need, however, to adjust our historical loss information for differences in the specific characteristics of our existing loan portfolio based on an evaluation of relative qualitative factors, such as differences in the composition of our loan portfolio, our underwriting standards, problem loan trends, the quality of our credit review function, as well as changes in the regulatory environment and other pertinent external factors that may impact the amount of future credit losses. Collective Allowance We employ a quantitative methodology and a qualitative framework to measure the collective component of our allowance for expected credit losses. The first element in our quantitative methodology involves the segmentation of our loan portfolio into loan pools that share similar risk characteristics. We disaggregate our loan portfolio into segments that reflect the member borrower type, which is based on the utility sector of the borrower because the key operational, infrastructure, regulatory, environmental, customer and financial risks of each sector are similar in nature. Our primary member borrower types consist of CFC electric distribution, CFC electric power supply, CFC statewide and associate, NCSC and RTFC telecommunications. Our portfolio segments align with the sectors generally seen in the utilities industry. We further stratify each portfolio into loan pools based on our internal borrower risk ratings, as our borrower risk ratings provide important information on the collectibility of each of our loan portfolio segments. We then apply loss factors, consisting of the probability of default and loss given default, to the scheduled loan-level amortization amounts over the life of the loans for each of our loan pools. Below we discuss the source and basis for the key inputs, which include borrower risk ratings and the loss factors, in measuring expected credit losses for our loan portfolio. • Borrower Risk Ratings : We evaluate each borrower and loan facility in our loan portfolio and assign internal borrower and loan facility risk ratings based on consideration of a number of quantitative and qualitative factors. Each risk rating is reassessed annually following the receipt of the borrower’s audited financial statements; however, interim risk-rating adjustments may occur as a result of updated information affecting a borrower’s ability to fulfill its obligations or other significant developments and trends. Our internally assigned borrower risk ratings are intended to assess the general creditworthiness of the borrower and probability of default. We use our internal borrower risk ratings, which we map to the equivalent credit ratings by external rating agencies, to differentiate risk within each of our portfolio segments and loan pools. We provide additional information on our borrower risk ratings below in “Note 4—Loans.” • Probability of Default : The probability of default, or default rate, represents the likelihood that a borrower will default over a particular time horizon. Because of our limited default history, we utilize third-party default data for the utility sector as a proxy to estimate default rates for each of our loan pools. The third-party default data provide historical default rates, based on credit ratings and remaining maturities of outstanding bonds, for the utility sector. Based on the mapping and alignment of our internal borrower risk ratings to equivalent credit ratings provided in the third-party utility default table, we apply the corresponding cumulative default rates to the scheduled amortization amounts over the remaining term of the loans in each of our loan pools. • Loss Given Default : The loss given default, or loss severity, represents the estimated loss, net of recoveries, on a loan that would be realized in the event of a borrower default. While we utilize third-party default data, we utilize our lifetime historical loss experience to estimate loss given default, or the recovery rate, for each of our loan portfolio segments. We believe our internal historical loss severity rates provide a more reliable estimate than third-party loss severity data due to the organizational structure and operating environment of rural utility cooperatives, our lending practice of generally requiring a senior security position on the assets and revenue of borrowers for long-term loans, the investment our member borrowers have in CFC and therefore the collaborative approach we generally take in working with members in the event that a default occurs. In addition to the quantitative methodology used in our collective measurement of expected credit losses, management performs a qualitative evaluation and analyses of relevant factors, such as changes in risk-management practices, current and past underwriting standards, specific industry issues and trends and other subjective factors. Based on our assessment, we did not make a qualitative adjustment to the collective allowance for credit losses measured under our quantitative methodology as of May 31, 2021 or at adoption of CECL on June 1, 2020. Asset-Specific Allowance We generally consider nonperforming loans as well as loans that have been or are anticipated to be modified under a troubled debt restructuring for individual evaluation given the risk characteristics of such loans. Factors we consider in measuring the extent of expected credit loss include the payment status, the collateral value, the borrower’s financial condition, guarantor support, the probability of collecting scheduled principal and interest payments when due, anticipated modifications of payment structure or term for troubled borrowers, and recoveries if they can be reasonably estimated. We generally measure the expected credit loss as the difference between the amortized cost basis in the loan and the present value of the expected future cash flows from the borrower, which is generally discounted at the loan’s effective interest rate, or the fair value of the collateral, if the loan is collateral dependent. Prior Allowance Methodology |
Unadvanced Loan Commitments | Unadvanced Loan Commitments Unadvanced commitments represent amounts for which we have approved and executed loan contracts, but the funds have not been advanced. The majority of the unadvanced commitments reported represent amounts that are subject to material adverse change clauses at the time of the loan advance. Prior to making an advance on these facilities, we would confirm 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 the borrower is currently in compliance with loan terms and conditions. The remaining unadvanced commitments relate to line of credit loans that are not subject to a material adverse change clause at the time of each loan advance. As such, we would be required to advance amounts on these committed facilities as long as the borrower is in compliance with the terms and conditions of the loan commitment. Unadvanced loan commitments related to line of credit loans are typically for periods not to exceed five years and are generally revolving facilities used for working capital and backup liquidity purposes. Historically, we have experienced a very low utilization rate on line of credit loan facilities, whether or not there is a material adverse change clause. Since we generally do not charge a fee on the unadvanced portion of the majority of our loan facilities, our borrowers will typically request long-term facilities to fund construction work plans and other capital expenditures for periods of up to five years and draw down on the facility over that time. These factors contribute to our expectation that the majority of the unadvanced line of credit loan commitments will expire without being fully drawn upon and that the total unadvanced amount does not necessarily represent future cash funding requirements. |
Fixed Assets | Fixed Assets Fixed assets are recorded at cost less accumulated depreciation. We recognize depreciation expense for each category of our depreciable fixed assets on a straight-line basis over the estimated useful life, which ranges from three recognized depreciation expense o f $8 million, $9 million a nd $9 million in fiscal years 2021, 2020 and 2019, respectively. The following table displays the components of our fixed assets. Our headquarters facility in Loudoun County, Virginia, which is owned by CFC, is included as a component of building and building equipment. Table 1.1: Fixed Assets May 31, (Dollars in thousands) 2021 2020 Building and building equipment $ 50,090 $ 50,087 Furniture and fixtures 6,039 6,015 Computer software and hardware 54,582 49,944 Other 1,048 1,051 Depreciable fixed assets 111,759 107,097 Less: Accumulated depreciation (66,777) (59,007) Net depreciable fixed assets 44,982 48,090 Land 23,796 23,796 Software development in progress 23,104 17,251 Fixed assets, net $ 91,882 $ 89,137 |
Foreclosed Assets | Foreclosed AssetsForeclosed assets acquired through our lending activities in satisfaction of indebtedness may be held in operating entities created and controlled by CFC and presented separately in our consolidated balance sheets under foreclosed assets, net. These assets are initially recorded at estimated fair value as of the date of acquisition. Subsequent to acquisition, foreclosed assets not classified as held for sale are evaluated for impairment, and the results of operations and any impairment are reported on our consolidated statements of operations under results of operations of foreclosed assets. When foreclosed assets meet the accounting criteria to be classified as held for sale, they are recorded at the lower of cost or fair value less estimated cost to sell at the date of transfer, with the amount at the date of transfer representing the new cost basis. Subsequent changes are recognized in our consolidated statements of operations under results of operations of foreclosed assets. We also review foreclosed assets classified as held for sale each reporting period to determine whether the existing carrying amounts are fully recoverable in comparison to estimated fair values. We did not carry any foreclosed assets on our consolidated balance sheet as of May 31, 2021 or May 31, 2020 |
Debt | Debt We report debt at cost net of unamortized issuance costs and discounts or premiums. Issuance costs, discounts and premiums are deferred and amortized into interest expense using the effective interest method or a method approximating the effective interest method over the legal maturity of each bond issue. Short-term borrowings consist of borrowings with an original |
Derivative Financial Instruments | Derivative Instruments 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. 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 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 consolidated balance sheets, while derivatives in a loss position are reported as derivative liabilities. Accrued interest related to derivatives is reported on our consolidated balance sheets as a component of either accrued interest receivable 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 expense and derivative forward value amounts, are recognized in our consolidated statements of operations 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 other comprehensive income (“OCI”), to the extent that the hedge relationships are effective, and reclassified from accumulated other comprehensive income (“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 operations. We generally do not designate interest rate swaps, which represent the substantial majority of our derivatives, for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our consolidated statements of operations under derivative gains (losses). Net periodic cash settlements expense related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. |
Guarantee Liability | Guarantee Liability We maintain a guarantee liability that represents our contingent and noncontingent exposure related to guarantees and standby liquidity obligations associated with our members’ debt. The guarantee liability is included in the other liabilities line item on the consolidated balance sheet, and the provision for guarantee liability is reported in non-interest expense as a separate line item on the consolidated statement of operations. The contingent portion of the guarantee liability represents management’s estimate of our exposure to losses within the guarantee portfolio. The methodology used to estimate the contingent guarantee liability is consistent with the methodology used to determine the allowance for credit losses under the CECL model. |
Fair Value of Financial Instruments | Fair Value Valuation Processes We present certain financial instruments at fair value, including equity and debt securities, and derivatives. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (also referred to as an exit price). We have various processes and controls in place to ensure that fair value is reasonably estimated. We consider observable prices in the principal market in our valuations where possible. Fair value estimates were developed at the reporting date and may not necessarily be indicative of amounts that could ultimately be realized in a market transaction at a future date. With the exception of redeeming debt under early redemption provisions, terminating derivative instruments under early-termination provisions and allowing borrowers to prepay their loans, we held and intend to hold all financial instruments to maturity excluding common stock and preferred stock investments that have no stated maturity and our trading debt securities. Fair Value Hierarchy The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. Fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are summarized below: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: Observable market-based inputs, other than quoted prices in active markets for identical assets or liabilities Level 3: Unobservable inputs |
Membership Fees | Membership Fees Members are charged a one-time membership fee based on member class. CFC distribution system members, power supply system members and national associations of cooperatives pay a $1,000 membership fee. CFC service organization members pay a $200 membership fee and CFC associates pay a $1,000 fee. RTFC voting members pay a $1,000 membership fee and RTFC associates pay a $100 fee. NCSC members pay a $100 membership fee. Membership fees are accounted for as members’ equity. |
Financial Instruments with Off-Balance Sheet Risk | Financial Instruments with Off-Balance Sheet Risk In the normal course of business, we are a party to financial instruments with off-balance sheet risk to meet the financing needs of our member borrowers. These financial instruments include committed lines of credit, standby letters of credit and guarantees of members’ obligations. |
Interest Income | Interest Income Interest income on performing loans is accrued and recognized as interest income based on the contractual rate of interest. Loan origination costs and nonrefundable loan fees that meet the definition of loan origination fees are deferred and generally recognized in interest income as yield adjustments over the period to maturity of the loan using the effective interest method. |
Early Extinguishment of Debt | Early Extinguishment of DebtWe redeem outstanding debt early from time to time to manage liquidity and interest rate risk. When we redeem outstanding debt early, we recognize a gain or loss related to the difference between the amount paid to redeem the debt and the net book value of the extinguished debt as a component of non-interest expense in the gain (loss). |
Income Taxes | Income Taxes While CFC is exempt under Section 501(c)(4) of the Internal Revenue Code, it is subject to tax on unrelated business taxable income. NCSC is a taxable cooperative that pays income tax on the full amount of its reportable taxable income and allowable deductions. RTFC is a taxable cooperative under Subchapter T of the Internal Revenue Code and is not subject to income taxes on income from patronage sources that is allocated to its borrowers, as long as the allocation is properly noticed and at least 20% of the amount allocated is retired in cash prior to filing the applicable tax return. The income tax benefit (expense) recorded in the consolidated statement of operations represents the income tax benefit (expense) at the applicable combined federal and state income tax rates resulting in a statutory tax rate. The federal statutory tax rate for both NCSC and RTFC was 21% for each of fiscal years 2021, 2020 and 2019. Substantially all o f the income tax expense recorded in our consolidated statements of operations relates to NCSC. NCSC had a deferred tax asset of $2 million and $3 million as o |
New Accounting Pronouncements | New Accounting Standards Adopted in Fiscal Year 2021 Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value Measurement On June 1, 2020, we adopted Accounting Standards Update (“ASU”) 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which removes, adds and modifies certain disclosure requirements on fair value measurements. The adoption of this guidance, which resulted only in certain changes to the fair value measurement disclosures presented in “Note 14—Fair Value Measurement” did not otherwise affect our consolidated financial statements. Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments On June 1, 2020, we adopted ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology for estimating credit losses with an expected loss methodology that is referred to as the CECL model. The incurred loss model delayed the recognition of credit losses until it was probable that a loss had occurred, while the CECL model requires the immediate recognition of expected credit losses over the contractual term, adjusted as appropriate for estimated prepayments, for financial instruments that fall within the scope of CECL at the date of origination or purchase of the financial instrument. The CECL model, which is applicable to the measurement of credit losses on financial assets measured at amortized cost and certain off-balance sheet credit exposures, affects our estimates of the allowance for credit losses for our loan portfolio and our off-balance sheet credit exposures related to unadvanced loan commitments and financial guarantees. In measuring lifetime expected credit losses, management is required to take into consideration relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount of the financial instrument. We adopted CECL using the modified retrospective approach, which resulted in an increase in our allowance for credit losses for our loan portfolio of $4 million and a corresponding decrease to retained earnings of $4 million recorded as a cumulative-effect adjustment. The impact on the allowance for credit losses for our off-balance sheet credit exposures related to unadvanced loan commitments and financial guarantees was not material. The increase in the allowance for credit losses for our loan portfolio was attributable to the transition to measuring the allowance based on expected credit losses over the remaining contractual term of loans in our portfolio as required under the CECL model, whereas the allowance under the incurred model did not consider the remaining contractual term of our loans. The transition adjustment was primarily driven by an increase in the allowances for CFC distribution and CFC power supply loans, which have a longer remaining contractual term than the estimated loss emergence period of five years we used in estimating probable losses in our loan portfolio under the incurred loss model. While CECL had no impact on our earnings at adoption on June 1, 2020, subsequent estimates of lifetime expected credit losses for newly recognized loans, unadvanced loan commitments and financial guarantees, as well as changes during the period in our estimate of lifetime expected credit losses for existing financial instruments subject to CECL, are now recognized in earnings. We present the expanded credit quality disclosures required under CECL for financial instruments measured at amortized cost in “Note 4—Loans” and “Note 5—Allowance for Credit Losses.” Amounts in periods prior to our adoption of CECL on June 1, 2020 continue to be reported in accordance with previously applicable U.S. GAAP. New Accounting Standards Issued But Not Yet Adopted Reference Rate Reform On March 12, 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions for applying U.S. GAAP on contracts, hedging relationships and other transactions subject to modification due to the expected discontinuance of the London Interbank Offered Rate (“LIBOR”) and other reference rate reform changes to ease the potential accounting and financial burdens related to the expected transition in market reference rates. This guidance permits entities to elect not to apply certain modification accounting requirements to contracts affected by reference rate transition, if certain criteria are met. An entity that makes this election would not be required to remeasure modified contracts at the modification date or reassess a previous accounting determination. The guidance was effective upon issuance on March 12, 2020, and can generally be applied through December 31, 2022. We expect to apply certain of the practical expedients and are in the process of evaluating the timing and application of those elections. Based on our current assessment, we do not believe that the application of this guidance will have a material impact on our consolidated financial statements. |
Fair Value Measurement | Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the carrying value and fair value of financial instruments reported in our consolidated financial statements at fair value on a recurring basis as of May 31, 2021 and 2020, and the classification of the valuation technique within the fair value hierarchy. We did not have any assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs for the years ended May 31, 2021 and 2020. Table 14.2: Assets and Liabilities Measured at Fair Value on a Recurring Basis May 31, 2021 2020 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities, at fair value $ 35,102 $ — $ 35,102 $ 60,735 $ — $ 60,735 Debt securities trading, at fair value — 576,175 576,175 — 309,400 309,400 Deferred compensation investments 7,222 — 7,222 5,496 — 5,496 Derivative assets — 121,259 121,259 — 173,195 173,195 Liabilities: Derivative liabilities — 584,989 584,989 — 1,258,459 1,258,459 Below is a description of the valuation techniques we use to estimate fair value of our financial assets and liabilities recorded at fair value on a recurring basis, the significant inputs used in those techniques, if applicable, and the classification within the fair value hierarchy. Equity Securities Our investments in equity securities consist of investments in Farmer Mac Class A common stock and Series C preferred stock. These securities are reported at fair value in our consolidated balance sheets. We determine the fair value based on quoted prices on the stock exchange where the stock is traded. That stock exchange with respect to Farmer Mac Class A common stock is an active market based on the volume of shares transacted. Fair values for these securities are classified within Level 1 of the fair value hierarchy. Debt Securities Trading As discussed above in “Note 1—Summary of Significant Accounting Policies” our debt securities consist of investments in certificates of deposit with maturities greater than 90 days, commercial paper, corporate debt securities, municipality debt securities, commercial MBS, foreign government debt securities and other ABS and were classified as trading as of May 31, 2021. Management estimates the fair value of our debt securities utilizing the assistance of third-party pricing services. Methodologies employed, controls relied upon and inputs used by third-party pricing vendors are subject to management review when such services are provided. This review may consist of, in part, obtaining and evaluating control reports issued and pricing methodology materials distributed. We review the pricing methodologies provided by the vendors in order to determine if observable market information is being used to determine the fair value versus unobservable inputs. Investment securities traded in secondary markets are typically valued using unadjusted vendor prices. These investment securities, which include those measured using unadjusted vendor prices, are generally classified as Level 2 because the valuation typically involves using quoted market prices for similar securities, pricing models, discounted cash flow analyses using significant observable market where available or a combination of multiple valuation techniques for which all significant assumptions are observable in the market. Deferred Compensation Investments CFC offers a nonqualified 457(b) deferred compensation plan to highly compensated employees and board members. Such amounts deferred by employees are invested by the company. The deferred compensation investments are presented as other assets in the consolidated balance sheets in the other assets category at fair value. We calculate fair value based on the daily published and quoted net asset value, and these investments are classified within Level 1 of the fair value hierarchy. Derivative Instruments Our derivatives primarily consist of OTC interest rate swaps. All of our swap agreements are subject to master netting agreements. There is not an active secondary market for the types of interest rate swaps we use. We determine the fair value of our derivatives using models that incorporate observable market inputs, such as spot LIBOR rates, Eurodollar futures contracts and market swap rates. These inputs can vary depending on the type of derivative and nature of the underlying rate, price or index upon which the derivative’s value is based. The impact of counterparty nonperformance risk is considered when measuring the fair value of derivative assets. Internal pricing is compared against additional pricing sources, such as external valuation agents and other sources. Pricing variances among different pricing sources are analyzed and validated. The technique for determining the fair value for our interest rate swaps is classified as Level 2. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis on our consolidated balance sheets. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as in the application of lower of cost or fair value accounting or when we evaluate assets for impairment. We had certain loans measured at fair value on a nonrecurring basis as of and during the fiscal year ended May 31, 2021. We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of and during the fiscal year ended May 31, 2020. Collateral-Dependent Loans Because our loans are classified as held for investment and carried at amortized cost, we generally do not record loans at fair value on a recurring basis. However, we periodically record nonrecurring fair value adjustments for nonperforming collateral-dependent loans through the allowance for credit losses and provision for credit losses. We had nonperforming collateral-dependent loans outstanding to two affiliated RTFC telecommunications borrowers totaling $9 million as of May 31, 2021 . The collateral underlying these loans consisted primarily of U.S. Federal Communications Commission (“FCC”) wireless spectrum licenses. Our estimate of the fair value of these loans was $6 million as of May 31, 2021. As a result, we recorded a nonrecurring fair value adjustment for these loans of $3 million for the year ended May 31, 2021 . Significant Unobservable Level 3 Inputs We employ various approaches and techniques to estimate the fair value of loans where we expect repayment to be provided solely by the continued operation or sale of the underlying collateral, including estimated cash flows from the collateral, valuations obtained from third-party specialists and comparable sales data. The technique depends on the nature of the collateral and the extent to which observable inputs are available. Our Credit Risk Management group reviews the valuation technique, including the use of any significant inputs that are not readily observable by market participants, to assess the appropriateness of the technique and the reasonableness of the assumptions involved. The estimated fair value of $6 million as of May 31, 2021 for the two affiliated RTFC nonperforming collateral-dependent loans totaling $9 million as of May 31, 2021 was derived primarily based on the lower end of limited publicly available sales data for the underlying FCC spectrum licenses collateral. |
Repurchase and Resale Agreements Policy | Securities Sold Under Repurchase AgreementsWe enter into repurchase agreements to sell investment securities. These transactions are accounted for as collateralized financing transactions and are recorded on our consolidated balance sheets as part of short-term borrowings at the amounts at which the securities were sold. |
Troubled Debt Restructuring | Troubled Debt Restructurings A loan modification is considered a troubled debt restructuring (“TDR”) if the borrower is experiencing financial difficulties and a concession is granted to the borrower that we would not otherwise consider. Under CECL, we are required to estimate an allowance for lifetime expected credit losses for TDR loans. As discussed below under “Allowance for Credit Losses—Loan Portfolio—Asset-Specific Allowance,” TDR loans are evaluated on an individual basis in estimating expected credit losses. Credit losses for anticipated TDRs are accounted for similarly to TDRs and are identified when there is a reasonable expectation that a TDR will be executed with the borrower and when we expect the modification to affect the timing or amount of payments and/or the payment term. We generally classify TDR loans as nonperforming and place the loan on nonaccrual status, although in many cases such loans were already classified as nonperforming prior to modification. These loans may be returned to performing status and the accrual of interest resumed if the borrower performs under the modified terms for an extended period of time, and we expect the borrower to continue to perform in accordance with the modified terms. In certain limited circumstances in which a TDR loan is current at the modification date, the loan may remain on accrual status at the time of modification. |
Credit Loss, Financial Instrument | Reserve for Credit Losses—Off-Balance Sheet Credit ExposuresWe also maintain a reserve for credit losses for our off-balance sheet credit exposures related to unadvanced loan commitments and financial guarantees. Because our business processes and credit risks associated with our off-balance sheet credit exposures are essentially the same as for our loans, we measure expected credit losses for our off-balance sheet exposures, after adjusting for the probability of funding these exposures. consistent with the methodology used for our funded outstanding exposures. We include the reserve for expected credit losses for our off-balance sheet credit exposures as a component of other liabilities on our consolidated balance sheets. |
Policy Loans Receivable, Policy | Loans to Members We originate loans to members and classify loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff as held for investment. Loans classified as held for investment are reported based on the unpaid principal balance, net of principal charge-offs, and deferred loan origination costs. Deferred loan origination costs are amortized using the straight-line method, which approximates the effective interest method, into interest income over the life of the loan. |
Accrued Interest Receivable , Policy | Accrued Interest Receivable As permitted by the current expected credit loss (“CECL”) model, we elected to continue reporting accrued interest on loans separately on our consolidated balance sheets as a component of the line item accrued interest receivable rather than as a component of loans to members. Accrued interest receivable amounts generally represent three months or less of accrued interest on loans outstanding. Because our policy is to write off past-due accrued interest receivable in a timely manner, we elected not to measure an allowance for credit losses for accrued interest receivable on loans outstanding, which totaled $93 million and $96 million as of May 31, 2021 and May 31, 2020, respectively. We also elected to exclude accrued interest receivable from the credit quality disclosures required under CECL. |
Risks and Uncertainties, Policy | Risks and Uncertainties While the novel strain of coronavirus that causes coronavirus disease 2019 (“COVID-19”) continues to persist, disruptions caused by the virus have been significantly reduced as a result of the manufacturing and distribution of recently developed COVID-19 vaccines. Although most of the initial restrictions have been relaxed or lifted, the risk of future COVID-19 outbreaks remains. New information may emerge regarding the severity of COVID-19 variants or the effectiveness of the vaccines developed, causing federal, state and local governments to take additional actions to contain COVID-19 or to treat its impact. We continue to closely monitor developments; however, we cannot predict the future impact of COVID-19 on |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of fixed assets | The following table displays the components of our fixed assets. Our headquarters facility in Loudoun County, Virginia, which is owned by CFC, is included as a component of building and building equipment. Table 1.1: Fixed Assets May 31, (Dollars in thousands) 2021 2020 Building and building equipment $ 50,090 $ 50,087 Furniture and fixtures 6,039 6,015 Computer software and hardware 54,582 49,944 Other 1,048 1,051 Depreciable fixed assets 111,759 107,097 Less: Accumulated depreciation (66,777) (59,007) Net depreciable fixed assets 44,982 48,090 Land 23,796 23,796 Software development in progress 23,104 17,251 Fixed assets, net $ 91,882 $ 89,137 |
Interest Income and Interest _2
Interest Income and Interest Expense (Tables) | 12 Months Ended |
May 31, 2021 | |
Banking and Thrift, Interest [Abstract] | |
Components of Interest Income | The following table displays the components of interest income, by interest-earning asset type, and interest expense, by debt product type, presented on our consolidated statements of operations for fiscal years 2021, 2020 and 2019. Table 2.1: Interest Income and Interest Expense Year Ended May 31, (Dollars in thousands) 2021 2020 2019 Interest income: Loans (1)(2) $ 1,101,505 $ 1,129,883 $ 1,111,061 Investment securities 15,096 21,403 24,609 Total interest income 1,116,601 1,151,286 1,135,670 Interest expense: (3)(4) Short-term borrowings 14,730 77,995 92,854 Long-term debt 581,292 634,567 647,284 Subordinated debt 106,041 108,527 96,071 Total interest expense 702,063 821,089 836,209 Net interest income $ 414,538 $ 330,197 $ 299,461 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized in interest income over the period to maturity using the effective interest method. (2) Includes late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs. (3) Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense over the period to maturity using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized in interest expense immediately as incurred. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
May 31, 2021 | |
Investments [Abstract] | |
Schedule of investments in equity securities | The following table presents the composition of our equity security holdings and the fair value as of May 31, 2021 and 2020. Table 3.1: Investments in Equity Securities, at Fair Value May 31, (Dollars in thousands) 2021 2020 Equity securities, at fair value: Farmer Mac—Series A non-cumulative preferred stock $ — $ 30,240 Farmer Mac—Series C non-cumulative preferred stock 27,450 25,400 Farmer Mac—Class A common stock 7,652 5,095 Total equity securities, at fair value $ 35,102 $ 60,735 |
Schedule of Fair Values of Investments in Debt Securities, Trading | The following table presents the composition of our investments in trading debt securities and the fair value as of May 31, 2021 and 2020. Table 3.2: Investments in Debt Securities Trading, at Fair Value May 31, (Dollars in thousands) 2021 2020 Debt securities, at fair value: Certificates of deposit $ 1,501 $ 5,585 Commercial paper 12,365 — Corporate debt securities 497,944 253,153 Commercial MBS: Agency (1) 8,683 7,655 Non-agency — 3,207 Total commercial MBS 8,683 10,862 U.S. state and municipality debt securities 11,840 8,296 Foreign government debt securities 999 — Other ABS (2) 42,843 31,504 Total debt securities trading, at fair value $ 576,175 $ 309,400 ____________________________ (1) Consists of securities backed by Federal National Mortgage Association (“ Fannie Mae ”) and Federal Home Loan Mortgage Corporation (“ Freddie Mac ”). (2) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
May 31, 2021 | |
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 loans to members and unadvanced loan commitments, by member class and by loan type, as of May 31, 2021 and 2020. Table 4.1: Loans to Members by Member Class and Loan Type May 31, 2021 2020 (Dollars in thousands) Loans Unadvanced Commitments (1) Loans Unadvanced Commitments (1) Member class: CFC: Distribution $ 22,027,423 $ 9,387,070 $ 20,769,653 $ 8,992,457 Power supply 5,154,312 3,970,698 4,731,506 3,409,227 Statewide and associate 106,121 161,340 106,498 153,626 Total CFC 27,287,856 13,519,108 25,607,657 12,555,310 NCSC 706,868 551,125 697,862 551,674 RTFC 420,383 286,806 385,335 281,642 Total loans outstanding (2) 28,415,107 14,357,039 26,690,854 13,388,626 Deferred loan origination costs 11,854 — 11,526 — Loans to members $ 28,426,961 $ 14,357,039 $ 26,702,380 $ 13,388,626 Loan type: Long-term loans: Fixed rate $ 25,514,766 $ — $ 24,472,003 $ — Variable rate 658,579 5,771,813 655,704 5,458,676 Total long-term loans 26,173,345 5,771,813 25,127,707 5,458,676 Lines of credit 2,241,762 8,585,226 1,563,147 7,929,950 Total loans outstanding (2) 28,415,107 14,357,039 26,690,854 13,388,626 Deferred loan origination costs 11,854 — 11,526 — Loans to members $ 28,426,961 $ 14,357,039 $ 26,702,380 $ 13,388,626 ____________________________ (1) The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Schedule of analysis of the age of the recorded investment in loans outstanding by member class | The following table presents the payment status, by member class, of loans outstanding as of May 31, 2021 and 2020. Table 4.2: Payment Status of Loans Outstanding May 31, 2021 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Total Total Loans Outstanding Nonaccrual Loans CFC: Distribution $ 22,027,423 $ — $ — $ — $ 22,027,423 $ — Power supply 5,069,316 3,400 81,596 84,996 5,154,312 228,312 Statewide and associate 106,121 — — — 106,121 — CFC total 27,202,860 3,400 81,596 84,996 27,287,856 228,312 NCSC 706,868 — — — 706,868 — RTFC 420,383 — — — 420,383 9,185 Total loans outstanding $ 28,330,111 $ 3,400 $ 81,596 $ 84,996 $ 28,415,107 $ 237,497 Percentage of total loans 99.70 % 0.01 % 0.29 % 0.30 % 100.00 % 0.84 % May 31, 2020 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Total Total Loans Outstanding Nonaccrual Loans CFC: Distribution $ 20,769,653 $ — $ — $ — $ 20,769,653 $ — Power supply 4,731,506 — — — 4,731,506 167,708 Statewide and associate 106,498 — — — 106,498 — CFC total 25,607,657 — — — 25,607,657 167,708 NCSC 697,862 — — — 697,862 — RTFC 385,335 — — — 385,335 — Total loans outstanding $ 26,690,854 $ — $ — $ — $ 26,690,854 $ 167,708 Percentage of total loans 100.00 % — % — % — % 100.00 % 0.63 % |
Schedule of troubled debt restructured loans | The following table presents the outstanding balance of modified loans accounted for as TDRs in prior periods and the performance status, by member class, of these loans as of May 31, 2021 and 2020. Table 4.3: Trouble Debt Restructurings May 31, 2021 2020 (Dollars in thousands) Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding TDR loans: CFC—Distribution 1 $ 5,379 0.02 % 1 $ 5,756 0.02 % RTFC 1 4,592 0.02 1 5,092 0.02 Total TDR loans 2 $ 9,971 0.04 % 2 $ 10,848 0.04 % Performance status of TDR loans: Performing TDR loans 2 $ 9,971 0.04 % 2 $ 10,848 0.04 % Total TDR loans 2 $ 9,971 0.04 % 2 $ 10,848 0.04 % |
Schedule of non-performing loans | The following table presents the outstanding balance of nonperforming loans, by member class, as of May 31, 2021 and 2020. Table 4.4: Nonperforming Loans May 31, 2021 2020 (Dollars in thousands) Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Nonperforming loans: CFC—Power supply (2) 2 $ 228,312 0.81 % 1 $ 167,708 0.63 % RTFC 2 9,185 0.03 — — — Total nonperforming loans 4 $ 237,497 0.84 % 1 $ 167,708 0.63 % ____________________________ (1) Represents the unpaid principal balance net of charge-offs and recoveries as of the end of each period. (2) In addition, we had less than $1 million letters of credit outstanding to Brazos as of May 31, 2021. |
Schedule of loan portfolio by risk rating category and member class based on available data | Table 4.5: Loans Outstanding by Borrower Risk Ratings and Origination Year May 31, 2021 Term Loans by Fiscal Year of Origination (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Total May 31, 2020 Pass CFC: Distribution $ 1,768,491 $ 1,935,368 $ 1,227,223 $ 1,497,479 $ 1,520,593 $ 12,654,148 $ 1,204,797 $ 21,808,099 $ 20,643,737 Power supply 568,917 201,122 345,496 252,783 259,358 2,510,572 379,160 4,517,408 4,516,595 Statewide and associate 2,491 22,028 3,686 — 547 23,534 37,975 90,261 90,274 CFC total 2,339,899 2,158,518 1,576,405 1,750,262 1,780,498 15,188,254 1,621,932 26,415,768 25,250,606 NCSC 41,506 241,576 4,379 44,848 14,325 248,127 112,107 706,868 697,862 RTFC 98,797 50,011 12,138 27,356 65,035 131,936 21,333 406,606 371,507 Total pass 2,480,202 2,450,105 1,592,922 1,822,466 1,859,858 15,568,317 1,755,372 27,529,242 26,319,975 Special mention CFC: Distribution 5,000 — 5,197 950 — 13,177 195,000 219,324 7,743 Power supply — — — — — 29,611 — 29,611 — Statewide and associate — — 5,000 4,000 5,704 1,156 — 15,860 16,224 CFC total 5,000 — 10,197 4,950 5,704 43,944 195,000 264,795 23,967 RTFC — — — — — 4,592 — 4,592 8,736 Total special mention 5,000 — 10,197 4,950 5,704 48,536 195,000 269,387 32,703 Substandard CFC: Distribution — — — — — — — — 118,173 Power supply 23,600 — 85,839 — — 64,982 204,560 378,981 47,203 CFC total 23,600 — 85,839 — — 64,982 204,560 378,981 165,376 RTFC — — — — — — — — 5,092 Total substandard 23,600 — 85,839 — — 64,982 204,560 378,981 170,468 Doubtful CFC: Power supply — — — — — 143,316 84,996 228,312 167,708 CFC total — — — — — 143,316 84,996 228,312 167,708 RTFC — — 1,411 2,947 2,993 — 1,834 9,185 — Total doubtful — — 1,411 2,947 2,993 143,316 86,830 237,497 167,708 Total criticized loans 28,600 — 97,447 7,897 8,697 256,834 486,390 885,865 370,879 Total loans outstanding $ 2,508,802 $ 2,450,105 $ 1,690,369 $ 1,830,363 $ 1,868,555 $ 15,825,151 $ 2,241,762 $ 28,415,107 $ 26,690,854 |
Schedule of available balances under unadvanced loan commitments | The following table displays, by loan type, the available balance under unadvanced loan commitments as of May 31, 2021 and the related maturities in each fiscal year during the five-year period ended May 31, 2026, and thereafter. Table 4.6: Unadvanced Loan Commitments Available Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter Line of credit loans $ 8,585,226 $ 4,333,891 $ 1,523,158 $ 1,169,922 $ 1,061,235 $ 378,815 $ 118,205 Long-term loans 5,771,813 1,140,280 758,417 1,672,458 890,629 1,123,215 186,814 Total $ 14,357,039 $ 5,474,171 $ 2,281,575 $ 2,842,380 $ 1,951,864 $ 1,502,030 $ 305,019 |
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 May 31, 2021. Table 4.7: Unconditional Committed Lines of Credit—Available Balance Available Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter Committed lines of credit $ 3,044,515 $ 3,423 $ 1,147,724 $ 682,998 $ 926,344 $ 229,120 $ 54,906 |
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 loans outstanding pledged as collateral to secure our collateral trust bonds, notes payable under the USDA Guaranteed Underwriter Program (“Guaranteed Underwriter Program”), notes payable under the revolving note purchase agreement with Farmer Mac and Clean Renewable Energy Bonds, and the corresponding debt outstanding as of May 31, 2021 and 2020. See “Note 6—Short-Term Borrowings” and “Note 7—Long-Term Debt” for information on our borrowings. Table 4.8: Pledged Loans May 31, (Dollars in thousands) 2021 2020 Collateral trust bonds: 2007 indenture: Distribution system mortgage notes pledged $ 8,400,293 $ 8,244,202 RUS-guaranteed loans qualifying as permitted investments 121,679 128,361 Total pledged collateral $ 8,521,972 $ 8,372,563 Collateral trust bonds outstanding 7,422,711 7,422,711 1994 indenture: Distribution system mortgage notes pledged $ 34,924 $ 39,785 Collateral trust bonds outstanding 30,000 35,000 Guaranteed Underwriter Program: Distribution and power supply system mortgage notes pledged $ 7,150,240 $ 7,535,931 Notes payable outstanding 6,269,303 6,261,312 Farmer Mac: Distribution and power supply system mortgage notes pledged $ 3,440,307 $ 3,687,418 Notes payable outstanding 2,977,909 3,059,637 Clean Renewable Energy Bonds Series 2009A: Distribution and power supply system mortgage notes pledged $ 5,316 $ 7,269 Cash 394 395 Total pledged collateral $ 5,710 $ 7,664 Notes payable outstanding 4,412 6,068 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - (Tables) | 12 Months Ended |
May 31, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Financing Receivable, Allowance for Credit Loss | Table 5.1: Changes in Allowance for Credit Losses Year Ended May 31, 2021 (Dollars in thousands) Distribution Power Supply Statewide and Associate CFC Total NCSC RTFC Total Balance as of May 31, 2020 $ 8,002 $ 38,027 $ 1,409 $ 47,438 $ 806 $ 4,881 $ 53,125 Cumulative-effect adjustment from adoption of CECL accounting standard 3,586 2,034 25 5,645 (15) (1,730) 3,900 Balance as of June 1, 2020 11,588 40,061 1,434 53,083 791 3,151 57,025 Provision (benefit) for credit losses 1,838 24,585 (43) 26,380 583 1,544 28,507 Balance as of May 31, 2021 $ 13,426 $ 64,646 $ 1,391 $ 79,463 $ 1,374 $ 4,695 $ 85,532 Year Ended May 31, 2020 (Dollars in thousands) Distribution Power Supply Statewide and Associate CFC Total NCSC RTFC Total Balance as of May 31, 2019 $ 7,483 $ 4,253 $ 1,384 $ 13,120 $ 2,007 $ 2,408 $ 17,535 Provision (benefit) for credit losses 519 33,774 25 34,318 (1,201) 2,473 35,590 Balance as of May 31, 2020 $ 8,002 $ 38,027 $ 1,409 $ 47,438 $ 806 $ 4,881 $ 53,125 Year Ended May 31, 2019 (Dollars in thousands) Distribution Power Supply Statewide and Associate CFC Total NCSC RTFC Total Balance as of May 31, 2018 $ 7,611 $ 4,588 $ 101 $ 12,300 $ 2,082 $ 4,419 $ 18,801 Provision (benefit) for credit losses (128) (335) 1,283 820 (75) (2,011) (1,266) Balance as of May 31, 2019 $ 7,483 $ 4,253 $ 1,384 $ 13,120 $ 2,007 $ 2,408 $ 17,535 |
Schedule of loan loss allowance and the recorded investment in outstanding loans by impairment methodology and by company | The following tables present, by member class, the components of our allowance for credit losses as of May 31, 2021 and 2020. Table 5.2: Allowance for Credit Losses Components May 31, 2021 (Dollars in thousands) Distribution Power Supply Statewide and Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 13,426 $ 25,104 $ 1,391 $ 39,921 $ 1,374 $ 1,147 $ 42,442 Asset-specific allowance (1) — 39,542 — 39,542 — 3,548 43,090 Total allowance for credit losses $ 13,426 $ 64,646 $ 1,391 $ 79,463 $ 1,374 $ 4,695 $ 85,532 Loans outstanding: (2) Collectively evaluated loans $ 22,022,044 $ 4,926,000 $ 106,121 $ 27,054,165 $ 706,868 $ 406,606 $ 28,167,639 Individually evaluated loans (1) 5,379 228,312 — 233,691 — 13,777 247,468 Total loans outstanding $ 22,027,423 $ 5,154,312 $ 106,121 $ 27,287,856 $ 706,868 $ 420,383 $ 28,415,107 Allowance ratios: Collective allowance coverage ratio (3) 0.06 % 0.51 % 1.31 % 0.15 % 0.19 % 0.28 % 0.15 % Asset-specific allowance coverage ratio (4) — 17.32 — 16.92 — 25.75 17.41 Total allowance coverage ratio (5) 0.06 1.25 1.31 0.29 0.19 1.12 0.30 May 31, 2020 (Dollars in thousands) Distribution Power Supply Statewide and Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 8,002 $ 4,173 $ 1,409 $ 13,584 $ 806 $ 3,902 $ 18,292 Asset-specific allowance — 33,854 — 33,854 — 979 34,833 Total allowance for credit losses $ 8,002 $ 38,027 $ 1,409 $ 47,438 $ 806 $ 4,881 $ 53,125 Loans outstanding: (2) Collectively evaluated loans $ 20,763,897 $ 4,563,798 $ 106,498 $ 25,434,193 $ 697,862 $ 380,243 $ 26,512,298 Individually evaluated loans 5,756 167,708 — 173,464 — 5,092 178,556 Total loans outstanding $ 20,769,653 $ 4,731,506 $ 106,498 $ 25,607,657 $ 697,862 $ 385,335 $ 26,690,854 Allowance coverage ratios: Collective allowance coverage ratio (3) 0.04 % 0.09 % 1.32 % 0.05 % 0.12 % 1.03 % 0.07 % Asset-specific allowance coverage ratio (4) — 20.19 — 19.52 — 19.23 19.51 Total allowance coverage ratio (5) 0.04 0.80 1.32 0.19 0.12 1.27 0.20 ___________________________ (1) In addition, we had less than $1 million letters of credit outstanding to Brazos, for which the reserve is included in the asset-specific allowance as of May 31, 2021. (2) Represents the unpaid principal amount of loans as of the end of each period. Excludes unamortized deferred loan origination costs of $12 million and $11 million as of May 31, 2021 and 2020, respectively. (3) Calculated based on the collective allowance component at period-end divided by collectively evaluated loans outstanding at period-end. (4) Calculated based on the asset-specific allowance component at period-end divided by individually evaluated loans outstanding at period-end. (5) Calculated based on the total allowance for credit losses at period-end divided by total loans outstanding at period-end. |
Impaired Financing Receivables With Related Allowance | The following table provides information on loans previously classified as individually impaired under the incurred loss model for determining the allowance for credit losses. Table 5.3: Individually Impaired Loans—Incurred Loss Model May 31, 2020 (Dollars in thousands) Recorded Investment Related Allowance With Specific Allowance With No Specific Allowance Individually impaired loans: CFC $ 173,464 $ 33,854 $ 167,708 $ 5,756 RTFC 5,092 979 5,092 — Total $ 178,556 $ 34,833 $ 172,800 $ 5,756 |
Impaired Financing Receivables | The following tables present, by company, the components of our recorded investment and interest income recognized for the years ended May 31, 2020 and 2019. Table 5.4: Average Recorded Investment and Interest Income Recognized on Individually Impaired Loans—Incurred Loss Model Year Ended May 31, Year Ended May 31, 2020 2019 2020 2019 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC $ 11,834 $ 6,322 $ 568 $ 553 RTFC 5,361 5,861 268 293 Total impaired loans $ 17,195 $ 12,183 $ 836 $ 846 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
May 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of short-term debt outstanding and the weighted-average effective interest rates | The following table provides comparative information on our short-term borrowings and weighted-average interest rates as of May 31, 2021 and 2020. Table 6.1: Short-Term Borrowings Sources and Weighted-Average Interest Rates May 31, 2021 2020 (Dollars in thousands) Amount Weighted- Average Amount Weighted-Average Short-term borrowings: Commercial paper: Commercial paper sold through dealers, net of discounts $ 894,977 0.16 % $ — — % Commercial paper sold directly to members, at par 1,124,607 0.14 1,318,566 0.34 Total commercial paper 2,019,584 0.15 1,318,566 0.34 Select notes to members 1,539,150 0.30 1,597,959 0.75 Daily liquidity fund notes 460,556 0.08 508,618 0.10 Medium-term notes sold to members 362,691 0.42 286,842 1.64 Farmer Mac notes payable (1) — — 250,000 1.06 Securities sold under repurchase agreements 200,115 0.30 — — Total short-term borrowings $ 4,582,096 0.22 $ 3,961,985 0.62 ___________________________ (1) Advanced under the revolving purchase agreement with Farmer Mac dated March 24, 2011. See “Note 7—Long-Term Debt” for additional information on this revolving note purchase agreement. |
Schedule of total available and outstanding letters of credit under the revolving credit agreements | The following table presents the amount available for access under our bank revolving line of credit agreements as of May 31, 2021 and 2020. Table 6.2: Committed Bank Revolving Line of Credit Agreements Available Amounts May 31, 2021 2020 (Dollars in millions) Total Commitment Letters of Credit Outstanding Available Amount Total Commitment Letters of Credit Outstanding Available Amount Maturity Annual Facility Fee (1) 3-year agreement $ 1,315 $ — $ 1,315 $ 1,315 $ — $ 1,315 November 28, 2022 7.5 bps 5-year agreement 1,410 3 1,407 1,410 3 1,407 November 28, 2023 10 bps Total $ 2,725 $ 3 $ 2,722 $ 2,725 $ 3 $ 2,722 ___________________________ (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) | 12 Months Ended |
May 31, 2021 | |
Debt Instruments [Abstract] | |
Summary of long-term debt outstanding and the weighted-average effective interest rates | The following table displays long-term debt outstanding, by debt product type, and the weighted-average interest rate and maturity date for each debt product type, as of May 31, 2021 and 2020. Long-term debt outstanding totaled $20,603 million and accounted for 75% of total debt outstanding as of May 31, 2021, compared with $19,712 million and 76% of total debt outstanding as of May 31, 2020. Long-term debt with fixed- and variable-rate accounted for 89% and 11%, respectively, of our total long-term debt outstanding as of May 31, 2021, compared with 86% and 14%, respectively, of our total long-term debt outstanding as of May 31, 2020. Table 7.1: Long-Term Debt—Debt Product Types and Weighted-Average Interest Rates May 31, 2021 2020 (Dollars in thousands) Amount Weighted- Average Maturity Amount Weighted- Average Maturity Secured long-term debt: Collateral trust bonds $ 7,452,711 3.15 % 2022-2049 $ 7,457,711 3.23 % 2020-2049 Unamortized discount (227,046) (236,461) Debt issuance costs (33,721) (32,697) Total collateral trust bonds 7,191,944 7,188,553 Guaranteed Underwriter Program notes payable 6,269,303 2.76 2025-2041 6,261,312 2.74 2025-2040 Farmer Mac notes payable 2,977,909 1.68 2021-2049 2,809,637 2.07 2020-2049 Other secured notes payable 4,412 3.14 2021-2023 6,068 2.69 2020-2023 Debt issuance costs (22) (117) Total other secured notes payable 4,390 5,951 Total secured notes payable 9,251,602 9,076,900 2.53 Total secured long-term debt 16,443,546 2.74 16,265,453 2.85 Unsecured long-term debt: Medium-term notes sold through dealers 3,943,728 2.31 2021-2032 3,086,733 3.34 2020-2032 Medium-term notes sold to members 232,346 2.61 2021-2037 372,117 2.85 2020-2037 Subtotal medium-term notes 4,176,074 — 3,458,850 3.29 Unamortized discount (2,307) (997) Debt issuance costs (18,036) (16,943) Total unsecured medium-term notes 4,155,731 3,440,910 Unsecured notes payable 3,886 — 2021-2023 5,794 — 2020-2023 Unamortized discount (35) (107) Debt issuance costs (5) (26) Total unsecured notes payable 3,846 5,661 Total unsecured long-term debt 4,159,577 2.33 3,446,571 3.29 Total long-term debt $ 20,603,123 2.66 $ 19,712,024 2.92 |
Schedule of amount of long-term debt maturities | The following table presents the principal amount of long-term debt maturing in each of the five fiscal years subsequent to May 31, 2021 and thereafter. Table 7.2: Long-Term Debt—Maturities and Weighted-Average Interest Rates (Dollars in thousands) Maturity Amount Weighted-Average 2022 $ 2,597,519 1.81 % 2023 1,843,775 1.65 2024 1,652,300 2.18 2025 842,377 2.76 2026 2,428,251 2.86 Thereafter 11,520,073 3.03 Total $ 20,884,295 2.66 |
Subordinated Deferrable Debt (T
Subordinated Deferrable Debt (Tables) | 12 Months Ended |
May 31, 2021 | |
Subordinated Debt [Abstract] | |
Schedule of Subordinated Borrowing | The following table presents, by issuance, subordinated deferrable debt outstanding and the weighted-average interest rates as of May 31, 2021 and 2020. Table 8.1: Subordinated Deferrable Debt Outstanding and Weighted-Average Interest Rates May 31, 2021 2020 Maturity and Call Dates (Dollars in thousands) Outstanding Amount Weighted- Average Outstanding Amount Weighted-Average Term in Years Maturity Call Date Issuances of subordinated notes: 4.75% issuance 2013 $ 400,000 4.75 % $ 400,000 4.75 % 30 2043 April 30, 2023 5.25% issuance 2016 350,000 5.25 350,000 5.25 30 2046 April 20, 2026 5.50% issuance 2019 250,000 5.50 250,000 5.50 45 2064 May 15, 2024 Total aggregate principal amount 1,000,000 1,000,000 Debt issuance costs (13,685) (13,881) Total subordinated deferrable debt $ 986,315 5.11 $ 986,119 5.11 |
Members' Subordinated Certifi_2
Members' Subordinated Certificates (Tables) | 12 Months Ended |
May 31, 2021 | |
Members' subordinated certificates | |
Schedule of Subordinated Borrowing | The following table presents, by issuance, subordinated deferrable debt outstanding and the weighted-average interest rates as of May 31, 2021 and 2020. Table 8.1: Subordinated Deferrable Debt Outstanding and Weighted-Average Interest Rates May 31, 2021 2020 Maturity and Call Dates (Dollars in thousands) Outstanding Amount Weighted- Average Outstanding Amount Weighted-Average Term in Years Maturity Call Date Issuances of subordinated notes: 4.75% issuance 2013 $ 400,000 4.75 % $ 400,000 4.75 % 30 2043 April 30, 2023 5.25% issuance 2016 350,000 5.25 350,000 5.25 30 2046 April 20, 2026 5.50% issuance 2019 250,000 5.50 250,000 5.50 45 2064 May 15, 2024 Total aggregate principal amount 1,000,000 1,000,000 Debt issuance costs (13,685) (13,881) Total subordinated deferrable debt $ 986,315 5.11 $ 986,119 5.11 |
Schedule of amount of members' subordinated certificates maturing in each of the five fiscal years | The following table presents the principal amount of long-term debt maturing in each of the five fiscal years subsequent to May 31, 2021 and thereafter. Table 7.2: Long-Term Debt—Maturities and Weighted-Average Interest Rates (Dollars in thousands) Maturity Amount Weighted-Average 2022 $ 2,597,519 1.81 % 2023 1,843,775 1.65 2024 1,652,300 2.18 2025 842,377 2.76 2026 2,428,251 2.86 Thereafter 11,520,073 3.03 Total $ 20,884,295 2.66 |
Subordinated Certificates | |
Members' subordinated certificates | |
Schedule of Subordinated Borrowing | The following table displays members’ subordinated certificates and the weighted-average interest rates as of May 31, 2021 and 2020. Table 9.1: Members’ Subordinated Certificates Outstanding and Weighted-Average Interest Rates May 31, 2021 2020 (Dollars in thousands) Amounts Weighted- Amounts Weighted- Membership subordinated certificates: Certificates maturing 2021 through 2119 $ 628,582 $ 630,467 Subscribed and unissued (1) 12 16 Total membership subordinated certificates 628,594 4.95 % 630,483 4.95 % Loan and guarantee subordinated certificates: Interest-bearing loan subordinated certificates maturing through 2047 223,067 280,372 Non-interest-bearing loan subordinated certificates maturing through 2047 132,203 144,258 Subscribed and unissued (1) 45 45 Total loan subordinated certificates 355,315 2.61 424,675 2.71 Interest-bearing guarantee subordinated certificates maturing through 2044 31,581 43,700 Non-interest-bearing guarantee subordinated certificates maturing through 2037 — 14,590 Total guarantee subordinated certificates 31,581 6.06 58,290 4.43 Total loan and guarantee subordinated certificates 386,896 2.89 482,965 2.92 Member capital securities: Securities maturing through 2050 239,170 5.00 226,170 5.00 Total members’ subordinated certificates $ 1,254,660 4.32 $ 1,339,618 4.22 ___________________________ (1) The subscribed and unissued subordinated certificates represent subordinated certificates that members are required to purchase. Upon collection of full payment of the subordinated certificate amount, the certificate will be reclassified from subscribed and unissued to outstanding. |
Schedule of amount of members' subordinated certificates maturing in each of the five fiscal years | The following table presents the amount of members’ subordinated certificates maturing in each of the five fiscal years subsequent to May 31, 2021 and thereafter. Table 9.2: Members’ Subordinated Certificate Maturities and Weighted-Average Interest Rates (Dollars in thousands) Amount Maturing (1) Weighted-Average 2022 $ 6,879 2.64 % 2023 18,820 3.87 2024 10,635 2.46 2025 10,458 2.87 2026 55,073 2.88 Thereafter 1,152,739 4.44 Total $ 1,254,604 4.32 ___________________________ (1) Excludes $0.06 million in subscribed and unissued member subordinated certificates for which a payment has been received, but no certificate has been issued. Amortizing member loan subordinated certificates totaling $190 million are amortizing annually based on the unpaid principal balance of the related loan. Amortization payments on these certificates totaled $13 million in fiscal year 2021 and represented 7% of amortizing loan subordinated certificates outstanding. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
May 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts outstanding and the weighted average interest rate paid and received for the entity's interest rate swaps | The following table shows, by derivative instrument type, the notional amount, the weighted-average rate paid and the weighted-average interest rate received for our interest rate swaps as of May 31, 2021 and 2020. For the substantial majority of interest rate swap agreements, a LIBOR index is currently used as the basis for determining variable interest payment amounts each period. Table 10.1: Derivative Notional Amount and Weighted-Average Rates May 31, 2021 2020 (Dollars in thousands) Notional Weighted- Weighted- Notional Weighted- Weighted- Pay-fixed swaps $ 6,579,516 2.65 % 0.20 % $ 6,604,808 2.78 % 0.88 % Receive-fixed swaps 2,399,000 0.92 2.80 2,699,000 1.54 2.75 Subtotal 8,978,516 2.19 0.89 9,303,808 2.42 1.42 Forward pay-fixed swaps — 3,000 Total interest rate swaps $ 8,978,516 $ 9,306,808 |
Schedule of Derivative Instruments Maturity | The following table presents the maturities, based on the notional amount of our interest rate swaps as of May 31, 2021. Table 10.2: Derivative Notional Amount Maturities Notional Amount Notional Amortization and Maturities (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter Interest rate swaps $8,978,516 $735,554 $558,159 $643,849 $100,000 $798,822 $6,142,132 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table displays the fair value of the derivative assets and derivative liabilities, by derivatives type, recorded on our consolidated balance sheets and the related outstanding notional amount as of May 31, 2021 and 2020. Table 10.3: Derivative Assets and Liabilities at Fair Value May 31, 2021 2020 (Dollars in thousands) Fair Value Notional Amount Fair Value Notional Amount (1) Derivative assets: Interest rate swaps $ 121,259 $ 2,560,618 $ 173,195 $ 2,699,000 Derivative liabilities: Interest rate swaps $ 584,989 $ 6,417,898 $ 1,258,459 $ 6,607,808 ____________________________ (1) The notional amount includes $3 million notional amount of forward starting swaps, as shown above in Table 10.1: Derivative Notional Amount and Weighted Average Rates, with an effective start date of June 5, 2020, outstanding as of May 31, 2020. The fair value of these swaps as of May 31, 2020 is included in the above table and in our consolidated financial statements. |
Offsetting Assets | The following table presents the gross fair value of derivative assets and liabilities reported on our consolidated balance sheets as of May 31, 2021 and 2020, and provides information on the impact of netting provisions and collateral pledged, if any. Table 10.4: Derivative Gross and Net Amounts May 31, 2021 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 121,259 $ — $ 121,259 $ 121,259 $ — $ — Derivative liabilities: Interest rate swaps 584,989 — 584,989 121,259 — 463,730 May 31, 2020 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 173,195 $ — $ 173,195 $ 173,195 $ — $ — Derivative liabilities: Interest rate swaps 1,258,459 — 1,258,459 173,195 — 1,085,264 |
Offsetting Liabilities | The following table presents the gross fair value of derivative assets and liabilities reported on our consolidated balance sheets as of May 31, 2021 and 2020, and provides information on the impact of netting provisions and collateral pledged, if any. Table 10.4: Derivative Gross and Net Amounts May 31, 2021 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 121,259 $ — $ 121,259 $ 121,259 $ — $ — Derivative liabilities: Interest rate swaps 584,989 — 584,989 121,259 — 463,730 May 31, 2020 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 173,195 $ — $ 173,195 $ 173,195 $ — $ — Derivative liabilities: Interest rate swaps 1,258,459 — 1,258,459 173,195 — 1,085,264 |
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 consolidated statements of operations for fiscal years 2021, 2020 and 2019. Derivative cash settlements interest expense represents the net periodic contractual interest amount for our interest-rate swaps during the reporting period. Derivative forward value gains (losses) represent the change in fair value of our interest rate swaps during the reporting period due to changes in expected future interest rates over the remaining life of our derivative contracts. We classify the derivative cash settlement amounts for the net periodic contractual interest expense on our interest rate swaps as an operating activity in our consolidated statements of cash flows. Table 10.5: Derivative Gains (Losses) Year Ended May 31, (Dollars in thousands) 2021 2020 2019 Derivative gains (losses) attributable to: Derivative cash settlements interest expense $ (115,645) $ (55,873) $ (43,611) Derivative forward value gains (losses) 621,946 (734,278) (319,730) Derivative gains (losses) $ 506,301 $ (790,151) $ (363,341) |
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 May 31, 2021, 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, 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 assume that amounts for each counterparty would be netted in accordance with the provisions of the master netting agreements with the 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. Table 10.6: Derivative Credit Rating Trigger Exposure (Dollars in thousands) Notional Payable Due from CFC Receivable Due to CFC Net Payable Impact of rating downgrade trigger: Falls below A3/A- (1) $ 41,080 $ (8,168) $ — $ (8,168) Falls below Baa1/BBB+ 6,031,373 (304,922) — (304,922) Falls to or below Baa2/BBB (2) 407,712 (14,835) — (14,835) Total $ 6,480,165 $ (327,925) $ — $ (327,925) ___________________________ (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. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
May 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of components of equity | Table 11.1: Equity May 31, (Dollars in thousands) 2021 2020 Membership fees $ 968 $ 969 Educational fund 2,157 2,224 Total membership fees and educational fund 3,125 3,193 Patronage capital allocated 923,970 894,066 Members’ capital reserve 909,749 807,320 Unallocated net income (loss): Prior year-end cumulative derivative forward value losses (1,079,739) (348,965) Current-year derivative forward value gains (losses) (1) 618,577 (730,774) Current year-end cumulative derivative forward value losses (461,162) (1,079,739) Other unallocated net income (709) 3,191 Unallocated net loss (461,871) (1,076,548) CFC retained equity 1,374,973 628,031 Accumulated other comprehensive loss (25) (1,910) Total CFC equity 1,374,948 626,121 Noncontrolling interests 24,931 22,701 Total equity $ 1,399,879 $ 648,822 ____________________________ |
Summary of activity in accumulated other comprehensive income account by component | The following table presents, by component, changes in AOCI for the years ended May 31, 2021 and 2020 and the balance of each component as of the end of each respective period. Table 11.2: Changes in Accumulated Other Comprehensive Income (Loss) Year Ended May 31, 2021 (Dollars in thousands) Derivatives Unrealized Gains (1) Defined Benefit Plan Unrealized Losses (2) Total Beginning balance $ 2,130 $ (4,040) $ (1,910) Gains reclassified into earnings (412) — (412) Defined benefit plan adjustments — 2,297 2,297 Other comprehensive loss (412) 2,297 1,885 Ending balance $ 1,718 $ (1,743) $ (25) Year Ended May 31, 2020 (Dollars in thousands) Derivatives Unrealized Gains (1) Defined Benefit Plan Unrealized Losses (2) Total Beginning balance $ 2,571 $ (2,718) $ (147) Gains reclassified into earnings (441) — (441) Defined benefit plan adjustments — (1,322) (1,322) Other comprehensive loss (441) (1,322) (1,763) Ending balance $ 2,130 $ (4,040) $ (1,910) ____________________________ (1) Reclassified to earnings as a component of the derivative gains (losses) line item presented on our consolidated statements of operations. (2) Reclassified to earnings as a component of the other non-interest expense line item presented on our consolidated statements of operations. |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
May 31, 2021 | |
Guarantees [Abstract] | |
Summary of total guarantees by type of guarantee and member class | The following table displays the notional amount of our outstanding guarantee obligations, by guarantee type and by member class, as of May 31, 2021 and 2020. Table 13.1: Guarantees Outstanding by Type and Member Class May 31, (Dollars in thousands) 2021 2020 Guarantee type: Long-term tax-exempt bonds (1) $ 145,025 $ 263,875 Letters of credit (2) 389,735 413,839 Other guarantees 154,320 143,072 Total $ 689,080 $ 820,786 Member class: CFC: Distribution $ 251,023 $ 266,301 Power supply 415,984 538,532 Statewide and associate (3) 5,523 5,954 CFC total 672,530 810,787 NCSC 16,550 9,999 RTFC — — Total $ 689,080 $ 820,786 ____________________________ (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. |
Schedule of maturities of outstanding guarantees | The following table details the scheduled maturities of our outstanding guarantees in each of the five fiscal years following May 31, 2021 and thereafter: Table 13.2: Guarantees Outstanding Maturities (Dollars in thousands) Amount 2022 $ 219,647 2023 26,825 2024 52,750 2025 90,964 2026 157,362 Thereafter 141,532 Total $ 689,080 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
May 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying and fair values for entity's financial instruments | The following table presents the carrying value and estimated fair value of all of our financial instruments, including those carried at amortized cost, as of May 31, 2021 and 2020. The table also displays the classification level within the fair value hierarchy based on the degree of observability of the inputs used in the valuation technique for estimating fair value. Table 14.1: Fair Value of Financial Instruments May 31, 2021 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 295,063 $ 295,063 $ 295,063 $ — $ — Restricted cash 8,298 8,298 8,298 — — Equity securities, at fair value 35,102 35,102 35,102 — — Debt securities trading, at fair value 576,175 576,175 — 576,175 — Deferred compensation investments 7,222 7,222 7,222 — — Loans to members, net 28,341,429 29,967,692 — — 29,967,692 Accrued interest receivable 107,856 107,856 — 107,856 — Derivative assets 121,259 121,259 — 121,259 — Total financial assets $ 29,492,404 $ 31,118,667 $ 345,685 $ 805,290 $ 29,967,692 Liabilities: Short-term borrowings $ 4,582,096 $ 4,582,329 $ — $ 4,582,329 $ — Long-term debt 20,603,123 21,799,736 — 12,476,073 9,323,663 Accrued interest payable 123,672 123,672 — 123,672 — Guarantee liability 10,041 10,841 — — 10,841 Derivative liabilities 584,989 584,989 — 584,989 — Subordinated deferrable debt 986,315 1,062,748 265,200 797,548 — Members’ subordinated certificates 1,254,660 1,254,660 — — 1,254,660 Total financial liabilities $ 28,144,896 $ 29,418,975 $ 265,200 $ 18,564,611 $ 10,589,164 May 31, 2020 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 671,372 $ 671,372 $ 671,372 $ — $ — Restricted cash 8,647 8,647 8,647 — — Equity securities, at fair value 60,735 60,735 60,735 — — Debt securities trading, at fair value 309,400 309,400 — 309,400 — Deferred compensation investments 5,496 5,496 5,496 — — Loans to members, net 26,649,255 29,252,065 — — 29,252,065 Accrued interest receivable 117,138 117,138 — 117,138 — Debt service reserve funds 14,591 14,591 14,591 — — Derivative assets 173,195 173,195 — 173,195 — Total financial assets $ 28,009,829 $ 30,612,639 $ 760,841 $ 599,733 $ 29,252,065 Liabilities: Short-term borrowings $ 3,961,985 $ 3,963,164 $ — $ 3,713,164 $ 250,000 Long-term debt 19,712,024 21,826,337 — 11,981,580 9,844,757 Accrued interest payable 139,619 139,619 — 139,619 — Guarantee liability 10,937 11,948 — — 11,948 Derivative liabilities 1,258,459 1,258,459 — 1,258,459 — Subordinated deferrable debt 986,119 1,030,108 — 1,030,108 — Members’ subordinated certificates 1,339,618 1,339,618 — — 1,339,618 Total financial liabilities $ 27,408,761 $ 29,569,253 $ — $ 18,122,930 $ 11,446,323 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the carrying value and fair value of financial instruments reported in our consolidated financial statements at fair value on a recurring basis as of May 31, 2021 and 2020, and the classification of the valuation technique within the fair value hierarchy. We did not have any assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs for the years ended May 31, 2021 and 2020. Table 14.2: Assets and Liabilities Measured at Fair Value on a Recurring Basis May 31, 2021 2020 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities, at fair value $ 35,102 $ — $ 35,102 $ 60,735 $ — $ 60,735 Debt securities trading, at fair value — 576,175 576,175 — 309,400 309,400 Deferred compensation investments 7,222 — 7,222 5,496 — 5,496 Derivative assets — 121,259 121,259 — 173,195 173,195 Liabilities: Derivative liabilities — 584,989 584,989 — 1,258,459 1,258,459 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
May 31, 2021 | |
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 consolidated financial statements, after intercompany eliminations, as of May 31, 2021 and 2020. Table 15.1: Consolidated Assets and Liabilities of Variable Interest Entities May 31, (Dollars in thousands) 2021 2020 Assets: Loans outstanding $ 1,127,251 $ 1,083,197 Other assets 11,343 11,352 Total assets $ 1,138,594 $ 1,094,549 Liabilities: Total liabilities $ 30,187 $ 38,803 |
Schedule of Variable Interest Entities, Credit Commitments | The following table provides information on CFC’s credit commitments to NCSC and RTFC, and potential exposure to loss under these commitments as of May 31, 2021 and 2020. Table 15.2: CFC Exposure Under Credit Commitments to NCSC and RTFC May 31, (Dollars in thousands) 2021 2020 CFC credit commitments to NCSC and RTFC: Total CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,107,185 1,062,103 Credit enhancements: CFC third-party guarantees 16,550 9,999 Other credit enhancements 8,386 11,755 Total credit enhancements (2) 24,936 21,754 Total outstanding commitments 1,132,121 1,083,857 CFC credit commitments available (3) $ 4,367,879 $ 4,416,143 ____________________________ (1) Intercompany borrowings payable by NCSC and RTFC to CFC are eliminated in consolidation. (2) Excludes interest due on these instruments. (3) Represents total CFC credit commitments less outstanding commitments as of each period-end. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
May 31, 2021 | |
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 years ended May 31, 2021, 2020 and 2019, and assets attributable to each segment as of May 31, 2021 and 2020. Table 16.1: Business Segment Information Year Ended May 31, 2021 (Dollars in thousands) CFC Other Elimination Consolidated Statement of operations: Interest income $ 1,108,543 $ 43,632 $ (35,574) $ 1,116,601 Interest expense (702,063) (35,574) 35,574 (702,063) Net interest income 406,480 8,058 — 414,538 Provision for credit losses (28,507) — — (28,507) Net interest income after provision for credit losses 377,973 8,058 — 386,031 Non-interest income: Fee and other income 23,732 2,800 (7,603) 18,929 Derivative gains: Derivative cash settlements interest expense (113,951) (1,694) — (115,645) Derivative forward value gains 618,578 3,368 — 621,946 Derivative gains 504,627 1,674 — 506,301 Investment securities gains 1,495 — — 1,495 Total non-interest income 529,854 4,474 (7,603) 526,725 Non-interest expense: General and administrative expenses (93,085) (7,849) 6,229 (94,705) Losses on early extinguishment of debt (1,456) — — (1,456) Other non-interest expense (1,619) (1,374) 1,374 (1,619) Total non-interest expense (96,160) (9,223) 7,603 (97,780) Income before income taxes 811,667 3,309 — 814,976 Income tax provision — (998) — (998) Net income $ 811,667 $ 2,311 $ — $ 813,978 May 31, 2021 CFC Other Elimination Consolidated Assets: Total loans outstanding $ 28,395,040 $ 1,127,251 $ (1,107,184) $ 28,415,107 Deferred loan origination costs 11,854 — — 11,854 Loans to members 28,406,894 1,127,251 (1,107,184) 28,426,961 Less: Allowance for credit losses (85,532) — — (85,532) Loans to members, net 28,321,362 1,127,251 (1,107,184) 28,341,429 Other assets 1,285,591 100,298 (88,955) 1,296,934 Total assets $ 29,606,953 $ 1,227,549 $ (1,196,139) $ 29,638,363 Year Ended May 31, 2020 (Dollars in thousands) CFC Other Elimination Consolidated Statement of operations: Interest income $ 1,143,397 $ 47,107 $ (39,218) $ 1,151,286 Interest expense (820,841) (39,466) 39,218 (821,089) Net interest income 322,556 7,641 — 330,197 Provision for credit losses (35,590) — — (35,590) Net interest income after provision for credit losses 286,966 7,641 — 294,607 Non-interest income: Fee and other income 28,309 9,524 (14,872) 22,961 Derivative losses: Derivative cash settlements interest expense (54,707) (1,166) — (55,873) Derivative forward value losses (730,774) (3,504) — (734,278) Derivative losses (785,481) (4,670) — (790,151) Investment securities gains 9,431 — — 9,431 Total non-interest income (747,741) 4,854 (14,872) (757,759) Non-interest expense: General and administrative expenses (98,808) (8,940) 6,581 (101,167) Losses on early extinguishment of debt (69) (614) — (683) Other non-interest expense (25,588) (8,291) 8,291 (25,588) Total non-interest expense (124,465) (17,845) 14,872 (127,438) Loss before income taxes (585,240) (5,350) — (590,590) Income tax benefit — 1,160 — 1,160 Net loss $ (585,240) $ (4,190) $ — $ (589,430) May 31, 2020 CFC Other Elimination Consolidated Assets: Total loans outstanding $ 26,669,759 $ 1,083,197 $ (1,062,102) $ 26,690,854 Deferred loan origination costs 11,526 — — 11,526 Loans to members 26,681,285 1,083,197 (1,062,102) 26,702,380 Less: Allowance for credit losses (53,125) — — (53,125) Loans to members, net 26,628,160 1,083,197 (1,062,102) 26,649,255 Other assets 1,496,998 106,525 (95,173) 1,508,350 Total assets $ 28,125,158 $ 1,189,722 $ (1,157,275) $ 28,157,605 Year Ended May 31, 2019 (Dollars in thousands) CFC Other Elimination Consolidated Statement of operations: Interest income $ 1,126,869 $ 51,741 $ (42,940) $ 1,135,670 Interest expense (835,491) (43,658) 42,940 (836,209) Net interest income 291,378 8,083 — 299,461 Benefit for credit losses 1,266 — — 1,266 Net interest income after benefit for credit losses 292,644 8,083 — 300,727 Non-interest income: Fee and other income 20,515 2,655 (7,815) 15,355 Derivative losses: Derivative cash settlements interest expense (42,618) (993) — (43,611) Derivative forward value losses (318,135) (1,595) — (319,730) Derivative losses (360,753) (2,588) — (363,341) Investment securities losses (1,799) — — (1,799) Total non-interest income (342,037) 67 (7,815) (349,785) Non-interest expense: General and administrative expenses (91,063) (8,477) 6,374 (93,166) Losses on early extinguishment of debt (7,100) — — (7,100) Other non-interest expense (1,675) (1,441) 1,441 (1,675) Total non-interest expense (99,838) (9,918) 7,815 (101,941) Loss before income taxes (149,231) (1,768) — (150,999) Income tax provision — (211) — (211) Net loss $ (149,231) $ (1,979) $ — $ (151,210) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Fixed Assets (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Fixed Assets | ||
Fixed assets, gross | $ 111,759 | $ 107,097 |
Less: accumulated depreciation | (66,777) | (59,007) |
Net depreciable fixed assets | 44,982 | 48,090 |
Fixed assets, net | 91,882 | 89,137 |
Building and building equipment | ||
Fixed Assets | ||
Fixed assets, gross | 50,090 | 50,087 |
Furniture and fixtures | ||
Fixed Assets | ||
Fixed assets, gross | 6,039 | 6,015 |
Computer software and hardware | ||
Fixed Assets | ||
Fixed assets, gross | 54,582 | 49,944 |
Other | ||
Fixed Assets | ||
Fixed assets, gross | 1,048 | 1,051 |
Land | ||
Fixed Assets | ||
Fixed assets, gross | 23,796 | 23,796 |
Construction-in-progress and software | ||
Fixed Assets | ||
Fixed assets, gross | $ 23,104 | $ 17,251 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Interest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Components of interest income | |||
Interest income | $ (1,116,601) | $ (1,151,286) | $ (1,135,670) |
Investment securities | $ 15,096 | $ 21,403 | $ 24,609 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Interest Expense (Details) - USD ($) $ in Thousands | Jun. 01, 2020 | May 31, 2021 | May 31, 2020 | May 31, 2019 |
Interest expense on debt: | ||||
Total interest expense | $ 702,063 | $ 821,089 | $ 836,209 | |
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 32,000 | |||
Cumulative effect from adoption of new accounting standard | Accounting Standards Update 2016-13 | ||||
Interest expense on debt: | ||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 4,000 | |||
Short-term Debt | ||||
Interest expense on debt: | ||||
Short-term borrowings | $ 14,730 | $ 77,995 | $ 92,854 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | |||
May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
Summary of Significant Accounting Policies [Line Items] | ||||
Repossessed Assets | $ 0 | $ 0 | ||
Restricted cash | [1] | 8,298,000 | 8,647,000 | |
Depreciation and amortization | 7,959,000 | 9,238,000 | $ 9,305,000 | |
Deferred income | 51,198,000 | 59,303,000 | ||
Deferred Loan Conversion Fees | 45,000,000 | 53,000,000 | ||
Gain on sale of land | 0 | (7,713,000) | 0 | |
Asset Impairment Charges | 0 | 31,284,000 | $ 0 | |
Retained equity | 1,374,973,000 | 628,031,000 | ||
Financing Receivable, Accrued Interest, before Allowance for Credit Loss | 93,000,000 | $ 96,000,000 | ||
Cumulative effect from adoption of new accounting standard | Accounting Standards Update 2016-13 | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Retained equity | $ 4,000,000 | |||
Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 40 years | |||
Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
RTFC | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Effective percentage of tax rate | 21.00% | 21.00% | 21.00% | |
RTFC | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of income from patronage sources allocated to borrowers to be retired in cash prior to filing the applicable tax return | 20.00% | |||
NCSC | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Membership fees (in dollars per share) | $ 100 | |||
Deferred Tax Assets, Net | $ 2,000,000 | $ 3,000,000 | ||
Effective percentage of tax rate | 21.00% | 21.00% | 21.00% | |
Distribution system members | CFC | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Membership fees (in dollars per share) | $ 1,000 | |||
Service organization members | CFC | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Membership fees (in dollars per share) | 200 | |||
Associates | CFC | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Membership fees (in dollars per share) | 1,000 | |||
Associates | RTFC | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Membership fees (in dollars per share) | 100 | |||
Voting members | RTFC | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Membership fees (in dollars per share) | $ 1,000 | |||
Unadvanced commitments not subject to material adverse change clauses | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Loans and Leases Receivable Unadvanced Commitments Period Maximum | 5 years | |||
Unadvanced commitments | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Loans and Leases Receivable Unadvanced Commitments Period Maximum | 5 years | |||
[1] | (1) Restricted cash consists primarily of member funds held in escrow for certain specifically designed cooperative programs. |
Interest Income and Interest _3
Interest Income and Interest Expense - Schedule of Interest Income and Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Interest income: | |||
Loans | $ 1,116,601 | $ 1,151,286 | $ 1,135,670 |
Investment securities | 15,096 | 21,403 | 24,609 |
Components of interest expense | |||
Total interest expense | 702,063 | 821,089 | 836,209 |
Net interest income | 414,538 | 330,197 | 299,461 |
Loans Receivable [Member] | |||
Interest income: | |||
Loans | 1,101,505 | 1,129,883 | 1,111,061 |
Short-term Debt | |||
Components of interest expense | |||
Short-term borrowings | 14,730 | 77,995 | 92,854 |
Long-term debt | (14,730) | (77,995) | (92,854) |
Long-Term Debt | |||
Components of interest expense | |||
Short-term borrowings | 581,292 | 634,567 | 647,284 |
Long-term debt | (581,292) | (634,567) | (647,284) |
Subordinated Debt | |||
Components of interest expense | |||
Short-term borrowings | 106,041 | 108,527 | 96,071 |
Long-term debt | $ (106,041) | $ (108,527) | $ (96,071) |
Interest Income and Interest _4
Interest Income and Interest Expense - Narrative (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Banking and Thrift, Interest [Abstract] | ||
Deferred income | $ 51,198 | $ 59,303 |
Deferred Loan Conversion Fees | $ 45,000 | $ 53,000 |
Investment Securities - Fair va
Investment Securities - Fair value of Equity Securities (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity Securities, FV-NI | $ 35,102 | $ 60,735 |
Common Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity Securities, FV-NI | 7,652 | 5,095 |
Noncumulative Preferred Stock | Series A Preferred Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity Securities, FV-NI | 0 | 30,240 |
Noncumulative Preferred Stock | Series C Preferred Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity Securities, FV-NI | $ 27,450 | $ 25,400 |
Investment Securities - Debt Se
Investment Securities - Debt Securities and Corresponding Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | $ 576,175 | $ 309,400 |
Debt Securities, Held-to-maturity | 309,400 | |
Certificates of deposit | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 1,501 | 5,585 |
Commercial paper | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 12,365 | 0 |
Corporate debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 497,944 | 253,153 |
Agency(1) | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 8,683 | 7,655 |
Non-agency | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 0 | 3,207 |
Total commercial MBS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 8,683 | 10,862 |
U.S. state and municipality debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 11,840 | 8,296 |
Asset-backed Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 42,843 | 31,504 |
Foreign Government Debt | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | $ 999 | $ 0 |
Investment Securities - Remaini
Investment Securities - Remaining Contractual Maturity Based on Amortized Cost and Fair Value of HTM by Type (Details) (Details) $ in Thousands | May 31, 2020USD ($) |
Schedule of Held-to-maturity Securities [Line Items] | |
Debt Securities, Held-to-maturity | $ 309,400 |
Debt Securities, Held-to-maturity, Fair Value | $ 309,400 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Sep. 19, 2020 | May 31, 2021 | May 31, 2020 | May 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Investment securities gains (losses) | $ (2) | $ (2) | ||
Equity Securities, FV-NI, Unrealized Gain | $ 4 | |||
Equity Securities, FV-NI, Shares Held | 1.2 | |||
preferred stock amortized cost, price per share | $ 25 | |||
Proceeds from Sale of Debt and Equity Securities, FV-NI, Held-for-investment | 6 | 239 | 0 | |
Debt Securities, Trading, Realized Loss | $ 1 | |||
Debt Securities, Trading, Realized Gain | $ 3 | |||
Debt Securities, Realized Gain (Loss) | $ 0 | |||
Series A Preferred Stock | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Preferred Stock, Redemption Price Per Share | $ 25 | |||
Preferred Stock, Dividend Rate, Percentage | 5.875% |
Investment Securities - Debt _2
Investment Securities - Debt Securities, Trading Gains and Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt Securities, Trading, Unrealized Gain (Loss) | $ (3) | $ 8 |
Loans - Outstanding Principal B
Loans - Outstanding Principal Balance and Unadvanced Commitments (Details) $ in Thousands | May 31, 2021USD ($)borrower | May 31, 2020USD ($)borrower | ||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | $ 28,415,107 | $ 26,690,854 | [1] | |
Deferred origination costs | 11,854 | 11,526 | [1] | |
Loans and Leases Receivable, Gross | 28,426,961 | 26,702,380 | [1] | |
Unadvanced commitments | ||||
Loans outstanding:(2) | ||||
Available Balance | [1] | 14,357,039 | 13,388,626 | |
CFC | ||||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | 27,287,856 | 25,607,657 | [1] | |
Deferred origination costs | 12,000 | 11,000 | ||
CFC | Unadvanced commitments | ||||
Loans outstanding:(2) | ||||
Available Balance | [1] | 13,519,108 | 12,555,310 | |
CFC | Distribution | ||||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | 22,027,423 | 20,769,653 | [1] | |
CFC | Distribution | Unadvanced commitments | ||||
Loans outstanding:(2) | ||||
Available Balance | [1] | 9,387,070 | 8,992,457 | |
CFC | Power supply | ||||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | 5,154,312 | 4,731,506 | [1] | |
CFC | Power supply | Unadvanced commitments | ||||
Loans outstanding:(2) | ||||
Available Balance | [1] | 3,970,698 | 3,409,227 | |
CFC | Statewide and associate | ||||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | 106,121 | 106,498 | [1] | |
CFC | Statewide and associate | Unadvanced commitments | ||||
Loans outstanding:(2) | ||||
Available Balance | [1] | 161,340 | 153,626 | |
NCSC | ||||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | 706,868 | 697,862 | [1] | |
NCSC | Unadvanced commitments | ||||
Loans outstanding:(2) | ||||
Available Balance | [1] | 551,125 | 551,674 | |
RTFC | ||||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | 420,383 | 385,335 | [1] | |
RTFC | Unadvanced commitments | ||||
Loans outstanding:(2) | ||||
Available Balance | [1] | 286,806 | 281,642 | |
Fixed rate | ||||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | 25,514,766 | 24,472,003 | [1] | |
Variable rate | ||||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | 658,579 | 655,704 | [1] | |
Variable rate | Unadvanced commitments | ||||
Loans outstanding:(2) | ||||
Available Balance | [1] | 5,771,813 | 5,458,676 | |
Long-term loans | ||||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | 26,173,345 | 25,127,707 | [1] | |
Long-term loans | Unadvanced commitments | ||||
Loans outstanding:(2) | ||||
Available Balance | 5,771,813 | 5,458,676 | [1] | |
Lines of credit | ||||
Loans outstanding:(2) | ||||
Loans and Leases Receivable, Net of Deferred Income | 2,241,762 | 1,563,147 | [1] | |
Lines of credit | Unadvanced commitments | ||||
Loans outstanding:(2) | ||||
Available Balance | $ 8,585,226 | $ 7,929,950 | [1] | |
Loans Receivable Commercial and Industrial | Credit concentration | Loans | ||||
Loans outstanding:(2) | ||||
Concentration Risk Number of Borrowers | borrower | 20 | 20 | ||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Loans - Unadvanced Commitments
Loans - Unadvanced Commitments - Available Balance and Maturity (Details) - Unadvanced commitments - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | [1] | $ 14,357,039 | $ 13,388,626 | |
2022 | 5,474,171 | |||
2023 | 2,281,575 | |||
2024 | 2,842,380 | |||
2025 | 1,951,864 | |||
2026 | 1,502,030 | |||
Thereafter | 305,019 | |||
Lines of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | 8,585,226 | 7,929,950 | [1] | |
2022 | 4,333,891 | |||
2023 | 1,523,158 | |||
2024 | 1,169,922 | |||
2025 | 1,061,235 | |||
2026 | 378,815 | |||
Thereafter | 118,205 | |||
Long-term loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | 5,771,813 | $ 5,458,676 | [1] | |
2022 | 1,140,280 | |||
2023 | 758,417 | |||
2024 | 1,672,458 | |||
2025 | 890,629 | |||
2026 | 1,123,215 | |||
Thereafter | $ 186,814 | |||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Loans - Committed Lines of Cred
Loans - Committed Lines of Credit - Available Balance and Maturity (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | |
Unadvanced commitments | |||
Unadvanced Loan Commitments | |||
2022 | $ 5,474,171 | ||
2023 | 2,281,575 | ||
2024 | 2,842,380 | ||
2025 | 1,951,864 | ||
2026 | 1,502,030 | ||
Available Balance | [1] | 14,357,039 | $ 13,388,626 |
Unadvanced commitments not subject to material adverse change clauses | |||
Unadvanced Loan Commitments | |||
2022 | 3,423 | ||
2023 | 1,147,724 | ||
2024 | 682,998 | ||
2025 | 926,344 | ||
2026 | 229,120 | ||
Available Balance | 3,044,515 | $ 2,857,000 | |
Other Commitment, to be Paid, after Year Four | $ 54,906 | ||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Loans - Loans Outstanding Pledg
Loans - Loans Outstanding Pledged as Collateral (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | |
Pledging of Loans and Loans on Deposit | |||
Cash | [1] | $ 8,298 | $ 8,647 |
Collateral trust bonds 2007 indenture | |||
Pledging of Loans and Loans on Deposit | |||
Debt outstanding | 7,422,711 | 7,422,711 | |
Loans and Leases Receivable, Collateral for Secured Borrowings | 8,521,972 | 8,372,563 | |
Collateral trust bonds 1994 indenture | |||
Pledging of Loans and Loans on Deposit | |||
Debt outstanding | 30,000 | 35,000 | |
Secured notes payable | Federal Agricultural Mortgage Corporation | |||
Pledging of Loans and Loans on Deposit | |||
Debt outstanding | 2,977,909 | 3,059,637 | |
Clean Renewable Energy Bonds Series 2009A | |||
Pledging of Loans and Loans on Deposit | |||
Debt outstanding | 4,412 | 6,068 | |
Cash | 394 | 395 | |
Total pledged collateral | 5,710 | 7,664 | |
Guaranteed Underwriter Program Notes Payable | |||
Pledging of Loans and Loans on Deposit | |||
Debt outstanding | 6,269,303 | 6,261,312 | |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 2007 indenture | |||
Pledging of Loans and Loans on Deposit | |||
Loans and Leases Receivable, Collateral for Secured Borrowings | 8,400,293 | 8,244,202 | |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 1994 indenture | |||
Pledging of Loans and Loans on Deposit | |||
Loans and Leases Receivable, Collateral for Secured Borrowings | 34,924 | 39,785 | |
Mortgage notes | Distribution and power supply system mortgage notes | Federal Agricultural Mortgage Corporation | |||
Pledging of Loans and Loans on Deposit | |||
Loans and Leases Receivable, Collateral for Secured Borrowings | 3,440,307 | 3,687,418 | |
Mortgage notes | Distribution and power supply system mortgage notes | Clean Renewable Energy Bonds Series 2009A | |||
Pledging of Loans and Loans on Deposit | |||
Loans and Leases Receivable, Collateral for Secured Borrowings | 5,316 | 7,269 | |
RUS guaranteed loans qualifying as permitted investments | Collateral trust bonds 2007 indenture | |||
Pledging of Loans and Loans on Deposit | |||
Loans and Leases Receivable, Collateral for Secured Borrowings | 121,679 | 128,361 | |
Mortgage Receivables on Deposit | Distribution and power supply system mortgage notes | Federal Financing Bank | |||
Pledging of Loans and Loans on Deposit | |||
Loans and Leases Receivable, Collateral for Secured Borrowings | $ 7,150,240 | $ 7,535,931 | |
[1] | (1) Restricted cash consists primarily of member funds held in escrow for certain specifically designed cooperative programs. |
Loans - Internal Risk Rating (D
Loans - Internal Risk Rating (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | |
Credit Quality | |||
Total loans outstanding | $ 28,415,107 | $ 26,690,854 | [1] |
CFC | |||
Credit Quality | |||
Total loans outstanding | 27,287,856 | 25,607,657 | [1] |
CFC | Distribution | |||
Credit Quality | |||
Total loans outstanding | 22,027,423 | 20,769,653 | [1] |
CFC | Power supply | |||
Credit Quality | |||
Total loans outstanding | 5,154,312 | 4,731,506 | [1] |
CFC | Statewide and associate | |||
Credit Quality | |||
Total loans outstanding | 106,121 | 106,498 | [1] |
NCSC | |||
Credit Quality | |||
Total loans outstanding | 706,868 | 697,862 | [1] |
RTFC | |||
Credit Quality | |||
Total loans outstanding | 420,383 | 385,335 | [1] |
Pass | |||
Credit Quality | |||
Total loans outstanding | 27,529,242 | 26,319,975 | |
Pass | CFC | |||
Credit Quality | |||
Total loans outstanding | 26,415,768 | 25,250,606 | |
Pass | CFC | Distribution | |||
Credit Quality | |||
Total loans outstanding | 21,808,099 | 20,643,737 | |
Pass | CFC | Power supply | |||
Credit Quality | |||
Total loans outstanding | 4,517,408 | 4,516,595 | |
Pass | CFC | Statewide and associate | |||
Credit Quality | |||
Total loans outstanding | 90,261 | 90,274 | |
Pass | NCSC | |||
Credit Quality | |||
Total loans outstanding | 706,868 | 697,862 | |
Pass | RTFC | |||
Credit Quality | |||
Total loans outstanding | 406,606 | 371,507 | |
Special Mention | |||
Credit Quality | |||
Total loans outstanding | 269,387 | 32,703 | |
Special Mention | CFC | |||
Credit Quality | |||
Total loans outstanding | 264,795 | 23,967 | |
Special Mention | CFC | Distribution | |||
Credit Quality | |||
Total loans outstanding | 219,324 | 7,743 | |
Special Mention | CFC | Power supply | |||
Credit Quality | |||
Total loans outstanding | 29,611 | 0 | |
Special Mention | CFC | Statewide and associate | |||
Credit Quality | |||
Total loans outstanding | 15,860 | 16,224 | |
Special Mention | RTFC | |||
Credit Quality | |||
Total loans outstanding | 4,592 | 8,736 | |
Substandard | |||
Credit Quality | |||
Total loans outstanding | 378,981 | 170,468 | |
Substandard | CFC | |||
Credit Quality | |||
Total loans outstanding | 378,981 | 165,376 | |
Substandard | CFC | Distribution | |||
Credit Quality | |||
Total loans outstanding | 0 | 118,173 | |
Substandard | CFC | Power supply | |||
Credit Quality | |||
Total loans outstanding | 378,981 | 47,203 | |
Substandard | RTFC | |||
Credit Quality | |||
Total loans outstanding | 0 | 5,092 | |
Doubtful [Member] | |||
Credit Quality | |||
Total loans outstanding | 237,497 | 167,708 | |
Doubtful [Member] | CFC | |||
Credit Quality | |||
Total loans outstanding | 228,312 | 167,708 | |
Doubtful [Member] | CFC | Power supply | |||
Credit Quality | |||
Total loans outstanding | 228,312 | 167,708 | |
Doubtful [Member] | RTFC | |||
Credit Quality | |||
Total loans outstanding | $ 9,185 | $ 0 | |
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Loans - Payment Status (Details
Loans - Payment Status (Details) - USD ($) | May 31, 2021 | May 31, 2020 | |
Payment Status of Loans | |||
Total loans outstanding | $ 28,415,107,000 | $ 26,690,854,000 | [1] |
Non-accrual loans | $ 237,497,000 | $ 167,708,000 | |
Financing Receivable, Nonaccrual, Percent Past Due | 0.84% | 0.63% | |
As a % of total loans | |||
Current | 99.70% | 100.00% | |
30-89 days past due | 0.01% | 0.00% | |
90 days or more past due | 0.29% | 0.00% | |
Total past due | 0.30% | 0.00% | |
Financing Receivable Commercial, Net of Deferred Income, Percentage | 100.00% | 100.00% | |
CFC | |||
Payment Status of Loans | |||
Total loans outstanding | $ 27,287,856,000 | $ 25,607,657,000 | [1] |
Non-accrual loans | 228,312,000 | 167,708,000 | |
CFC | Distribution | |||
Payment Status of Loans | |||
Total loans outstanding | 22,027,423,000 | 20,769,653,000 | [1] |
Non-accrual loans | 0 | 0 | |
CFC | Power supply | |||
Payment Status of Loans | |||
Total loans outstanding | 5,154,312,000 | 4,731,506,000 | [1] |
Non-accrual loans | 228,312,000 | 167,708,000 | |
CFC | Statewide and associate | |||
Payment Status of Loans | |||
Total loans outstanding | 106,121,000 | 106,498,000 | [1] |
Non-accrual loans | 0 | 0 | |
CFC | Brazos Electric Power Cooperative | |||
Payment Status of Loans | |||
Total loans outstanding | 85,000,000 | ||
CFC | Rayburn Country Electric Cooperative | |||
Payment Status of Loans | |||
Total loans outstanding | 379,000,000 | ||
NCSC | |||
Payment Status of Loans | |||
Total loans outstanding | 706,868,000 | 697,862,000 | [1] |
Non-accrual loans | 0 | 0 | |
RTFC | |||
Payment Status of Loans | |||
Total loans outstanding | 420,383,000 | 385,335,000 | [1] |
Non-accrual loans | 9,185,000 | 0 | |
Current | |||
Payment Status of Loans | |||
Total loans outstanding | 28,330,111,000 | 26,690,854,000 | |
Current | CFC | |||
Payment Status of Loans | |||
Total loans outstanding | 27,202,860,000 | 25,607,657,000 | |
Current | CFC | Distribution | |||
Payment Status of Loans | |||
Total loans outstanding | 22,027,423,000 | 20,769,653,000 | |
Current | CFC | Power supply | |||
Payment Status of Loans | |||
Total loans outstanding | 5,069,316,000 | 4,731,506,000 | |
Current | CFC | Statewide and associate | |||
Payment Status of Loans | |||
Total loans outstanding | 106,121,000 | 106,498,000 | |
Current | NCSC | |||
Payment Status of Loans | |||
Total loans outstanding | 706,868,000 | 697,862,000 | |
Current | RTFC | |||
Payment Status of Loans | |||
Total loans outstanding | 420,383,000 | 385,335,000 | |
30-89 Days Past Due | |||
Payment Status of Loans | |||
Total loans outstanding | 3,400,000 | 0 | |
30-89 Days Past Due | CFC | |||
Payment Status of Loans | |||
Total loans outstanding | 3,400,000 | 0 | |
30-89 Days Past Due | CFC | Distribution | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
30-89 Days Past Due | CFC | Power supply | |||
Payment Status of Loans | |||
Total loans outstanding | 3,400,000 | 0 | |
30-89 Days Past Due | CFC | Statewide and associate | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
30-89 Days Past Due | NCSC | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
30-89 Days Past Due | RTFC | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
90 Days or More Past Due | |||
Payment Status of Loans | |||
Total loans outstanding | 81,596,000 | 0 | |
90 Days or More Past Due | CFC | |||
Payment Status of Loans | |||
Total loans outstanding | 81,596,000 | 0 | |
90 Days or More Past Due | CFC | Distribution | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
90 Days or More Past Due | CFC | Power supply | |||
Payment Status of Loans | |||
Total loans outstanding | 81,596,000 | 0 | |
90 Days or More Past Due | CFC | Statewide and associate | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
90 Days or More Past Due | NCSC | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
90 Days or More Past Due | RTFC | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
Total Past Due | |||
Payment Status of Loans | |||
Total loans outstanding | 84,996,000 | 0 | |
Total Past Due | CFC | |||
Payment Status of Loans | |||
Total loans outstanding | 84,996,000 | 0 | |
Total Past Due | CFC | Distribution | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
Total Past Due | CFC | Power supply | |||
Payment Status of Loans | |||
Total loans outstanding | 84,996,000 | 0 | |
Total Past Due | CFC | Statewide and associate | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
Total Past Due | CFC | Brazos Electric Power Cooperative | Power supply | |||
Payment Status of Loans | |||
Total loans outstanding | 85,000,000 | ||
Total Past Due | NCSC | |||
Payment Status of Loans | |||
Total loans outstanding | 0 | 0 | |
Total Past Due | RTFC | |||
Payment Status of Loans | |||
Total loans outstanding | $ 0 | $ 0 | |
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructured Loans (Details) | 12 Months Ended | 51 Months Ended | |
May 31, 2021USD ($)borrower | May 31, 2020USD ($)borrower | May 31, 2021USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loan modification required to be accounted for as TDRs | $ 0 | $ 0 | |
Financing Receivable Commercial, Net of Deferred Income, Percentage | 100.00% | 100.00% | 100.00% |
Total loans outstanding | $ 28,415,107,000 | $ 26,690,854,000 | $ 28,415,107,000 |
Nonperforming TDR loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring | $ 0 | $ 0 | 0 |
Performing TDR Loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | borrower | 2 | 2 | |
Financing Receivable, Troubled Debt Restructuring | $ 9,971,000 | $ 10,848,000 | $ 9,971,000 |
Performing TDR Loans As Percentage of Total Loans | 0.04% | 0.04% | 0.04% |
TDR Financing Receivable | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | borrower | 2 | 2 | |
Financing Receivable, Troubled Debt Restructuring | $ 9,971,000 | $ 10,848,000 | $ 9,971,000 |
Performing TDR Loans As Percentage of Total Loans | 0.04% | 0.04% | 0.04% |
Financing Receivable Commercial, Net of Deferred Income, Percentage | 0.04% | 0.04% | 0.04% |
Performing Line of Credit for Troubled Debt Restructuring Borrower [Member] | Line of Credit Restricted for Fuel Purchases | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total loans outstanding | $ 0 | $ 1,000,000 | $ 0 |
Performing Line of Credit for Troubled Debt Restructuring Borrower [Member] | Line of Credit to Provide Bridge Funding | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total loans outstanding | $ 2,000,000 | ||
CFC | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | borrower | 1 | 1 | |
Financing Receivable, Troubled Debt Restructuring | $ 5,379,000 | $ 5,756,000 | $ 5,379,000 |
Performing TDR Loans As Percentage of Total Loans | 0.02% | 0.02% | 0.02% |
RTFC | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | borrower | 1 | 1 | |
Financing Receivable, Troubled Debt Restructuring | $ 4,592,000 | $ 5,092,000 | $ 4,592,000 |
Performing TDR Loans As Percentage of Total Loans | 0.02% | 0.02% | 0.02% |
Loans - Nonperforming loans (De
Loans - Nonperforming loans (Details) $ in Thousands | 12 Months Ended | ||
May 31, 2021USD ($)borrower | May 31, 2020USD ($)borrower | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans outstanding | $ 28,415,107 | $ 26,690,854 | [1] |
Debt Instrument, Pro Rata Share Set Off-Right, Amount, In Event Of Bankruptcy | $ 21,000 | ||
Non-performing loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Borrowers, Nonperforming Loans | borrower | 4 | 1 | |
Total loans outstanding | $ 237,497 | $ 167,708 | |
Nonperforming Loans, As Percentage Of Total Loans | 0.84% | 0.63% | |
Nonperforming TDR loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring | $ 0 | $ 0 | |
CFC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans outstanding | 27,287,856 | 25,607,657 | [1] |
Financing Receivable, Troubled Debt Restructuring | 5,379 | 5,756 | |
CFC | Power Supply Systems [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans outstanding | $ 5,154,312 | $ 4,731,506 | [1] |
CFC | Non-performing loans | Power Supply Systems [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Borrowers, Nonperforming Loans | borrower | 2 | 1 | |
Total loans outstanding | $ 228,312 | $ 167,708 | |
Nonperforming Loans, As Percentage Of Total Loans | 0.81% | 0.63% | |
CFC | Brazos Electric Power Cooperative | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans outstanding | $ 85,000 | ||
CFC | Brazos Electric Power Cooperative | Power Supply Systems [Member] | Non-performing loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans outstanding | $ 85,000 | ||
CFC | Brazos Electric Power Cooperative | Non-performing loans | Power Supply Systems [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans outstanding | 85,000 | ||
RTFC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans outstanding | 420,383 | 385,335 | [1] |
Financing Receivable, Troubled Debt Restructuring | $ 4,592 | $ 5,092 | |
RTFC | Non-performing loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Borrowers, Nonperforming Loans | borrower | 2 | 0 | |
Total loans outstanding | $ 9,185 | $ 0 | |
Nonperforming Loans, As Percentage Of Total Loans | 0.03% | 0.00% | |
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Loans - Foregone Interest Incom
Loans - Foregone Interest Income (Details) - USD ($) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 0 | $ 0 |
Loans - Impaired Loans - Record
Loans - Impaired Loans - Recorded Investment and Allowance (Details) $ in Thousands | May 31, 2020USD ($) |
Impaired Loans | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 5,756 |
Recorded investment in individually-impaired loans and the related specific valuation allowance | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 172,800 |
Total impaired loans | 178,556 |
Related allowance | 34,833 |
CFC | |
Impaired Loans | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 5,756 |
Recorded investment in individually-impaired loans and the related specific valuation allowance | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 167,708 |
Total impaired loans | 173,464 |
Related allowance | 33,854 |
RTFC | |
Impaired Loans | |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 |
Recorded investment in individually-impaired loans and the related specific valuation allowance | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 5,092 |
Total impaired loans | 5,092 |
Related allowance | $ 979 |
Loans - Impaired Loans - Averag
Loans - Impaired Loans - Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Impaired Loans | ||
Total impaired loans | $ 17,195 | $ 12,183 |
Interest impaired loans | 836 | 846 |
CFC | ||
Impaired Loans | ||
Total impaired loans | 11,834 | 6,322 |
Interest impaired loans | 568 | 553 |
RTFC | ||
Impaired Loans | ||
Total impaired loans | 5,361 | 5,861 |
Interest impaired loans | $ 268 | $ 293 |
Loans - Allowance for Credit Lo
Loans - Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at the beginning of the period | $ 53,125 | $ 17,535 | $ 18,801 |
(Recovery of) provision for loan losses | 28,507 | 35,590 | (1,266) |
CFC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at the beginning of the period | 47,438 | 13,120 | 12,300 |
(Recovery of) provision for loan losses | 26,380 | 34,318 | 820 |
NCSC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at the beginning of the period | 806 | 2,007 | 2,082 |
(Recovery of) provision for loan losses | 583 | (1,201) | (75) |
RTFC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Balance at the beginning of the period | 4,881 | 2,408 | 4,419 |
(Recovery of) provision for loan losses | $ (1,544) | $ (2,473) | $ 2,011 |
Loans - Allowance for Credit _2
Loans - Allowance for Credit Losses Components and Related Loan Investments (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | |
Ending balance of the allowance: | |||
Collective allowance | $ 42,442 | $ 18,292 | |
Asset-specific allowance(1) | 43,090 | 34,833 | |
Recorded investment in loans: | |||
Collectively evaluated loans | 28,167,639 | 26,512,298 | |
Individually evaluated loans(1) | 247,468 | 178,556 | |
Loans and Leases Receivable, Net of Deferred Income | 28,415,107 | 26,690,854 | [1] |
Deferred origination costs | 11,854 | 11,526 | [1] |
CFC | |||
Ending balance of the allowance: | |||
Collective allowance | 39,921 | 13,584 | |
Asset-specific allowance(1) | 39,542 | 33,854 | |
Recorded investment in loans: | |||
Collectively evaluated loans | 27,054,165 | 25,434,193 | |
Individually evaluated loans(1) | 233,691 | 173,464 | |
Loans and Leases Receivable, Net of Deferred Income | 27,287,856 | 25,607,657 | [1] |
Deferred origination costs | 12,000 | 11,000 | |
NCSC | |||
Ending balance of the allowance: | |||
Collective allowance | 1,374 | 806 | |
Asset-specific allowance(1) | 0 | 0 | |
Recorded investment in loans: | |||
Collectively evaluated loans | 706,868 | 697,862 | |
Individually evaluated loans(1) | 0 | 0 | |
Loans and Leases Receivable, Net of Deferred Income | 706,868 | 697,862 | [1] |
RTFC | |||
Ending balance of the allowance: | |||
Collective allowance | 1,147 | 3,902 | |
Asset-specific allowance(1) | 3,548 | 979 | |
Recorded investment in loans: | |||
Collectively evaluated loans | 406,606 | 380,243 | |
Individually evaluated loans(1) | 13,777 | 5,092 | |
Loans and Leases Receivable, Net of Deferred Income | $ 420,383 | $ 385,335 | [1] |
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Loans - Additional Information
Loans - Additional Information (Details) | 12 Months Ended | ||||
May 31, 2021USD ($)borrowermemberloandistribution_systemline_of_creditpower_supply_system | May 31, 2020USD ($)power_supply_systemborrowerline_of_creditmemberdistribution_system | May 31, 2019USD ($) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Active Borrowers | member | 892 | 889 | |||
Number of States with Active Borrowers | 49 | 49 | |||
Term of Loans | 35 years | ||||
Loans Receivable Cost of Loans Sold | $ 126,000,000 | $ 151,000,000 | $ 35,000,000 | ||
Total loans outstanding | $ 28,415,107,000 | 26,690,854,000 | [1] | ||
Number of Borrowers With TDR Loans | borrower | 1 | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 172,800,000 | ||||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 0 | 0 | |||
Increase (Decrease) in Financing Receivable, Nonaccrual | 69,000,000 | ||||
Non-accrual loans | 237,497,000 | 167,708,000 | |||
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend | 0 | 0 | |||
Debt Instrument, Pro Rata Share Set Off-Right, Amount, In Event Of Bankruptcy | 21,000,000 | ||||
Debt Instrument, Funds On Deposit Or Invested Subject To Exposure, In Event Of Bankruptcy | 124,000,000 | ||||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | $ 15,825,151,000 | ||||
Financing Receivable, Percent Originated, More Than Five Years Before Current Fiscal Year | 56.00% | ||||
Long-Term Financing Receivable, before Allowance for Credit Loss, Average Remaining Maturity | 18 years | ||||
Financing Receivable, Number Of Loans Outstanding | member | 16,575 | ||||
Financing Receivable, Number Of Loans Outstanding Per Borrower | $ 19 | ||||
Unadvanced Long-term Loans Commitments Percentage of Unadvanced Loan Commitments | 40.00% | ||||
Unadvanced Line of Credit Commitments as Percentage of Unadvanced Loan Commitments | 60.00% | ||||
Financing Receivable, Loan Commitment, Term | 5 years | ||||
Total loans outstanding | $ 28,415,107,000 | 26,690,854,000 | |||
Current | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 28,330,111,000 | 26,690,854,000 | |||
Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 84,996,000 | 0 | |||
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Term of Loans | 1 year | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Term of Loans | 35 years | ||||
Nonperforming TDR loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring | $ 0 | 0 | |||
Non-performing loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 237,497,000 | 167,708,000 | |||
Increase (Decrease) in Finance Receivables | 69,000,000 | ||||
Performing TDR Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Troubled Debt Restructuring | 9,971,000 | 10,848,000 | |||
Substandard | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 378,981,000 | 170,468,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 64,982,000 | ||||
Doubtful [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 237,497,000 | 167,708,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 143,316,000 | ||||
Loan Defaults | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 0 | 0 | $ 0 | ||
Criticized | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 885,865,000 | $ 370,879,000 | |||
Increase (Decrease) in Finance Receivables | 515,000,000 | ||||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | $ 256,834,000 | ||||
Financing Receivable, before Allowance for Credit Loss, Percentage | 3.00% | 1.00% | |||
Special Mention | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 269,387,000 | $ 32,703,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 48,536,000 | ||||
Pass | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 27,529,242,000 | 26,319,975,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 15,568,317,000 | ||||
CFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 27,287,856,000 | 25,607,657,000 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 167,708,000 | ||||
Non-accrual loans | 228,312,000 | 167,708,000 | |||
Financing Receivable, Troubled Debt Restructuring | 5,379,000 | 5,756,000 | |||
CFC | Current | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 27,202,860,000 | 25,607,657,000 | |||
CFC | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 84,996,000 | 0 | |||
CFC | Brazos Electric Power Cooperative | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 85,000,000 | ||||
CFC | Brazos Electric Power Cooperative | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Number Of Loans Outstanding | loan | 1 | ||||
CFC | Rayburn Country Electric Cooperative | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 379,000,000 | ||||
CFC | Distribution | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 22,027,423,000 | 20,769,653,000 | [1] | ||
Non-accrual loans | 0 | 0 | |||
CFC | Distribution | Current | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 22,027,423,000 | 20,769,653,000 | |||
CFC | Distribution | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 0 | 0 | |||
CFC | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 5,154,312,000 | 4,731,506,000 | [1] | ||
Non-accrual loans | 228,312,000 | 167,708,000 | |||
CFC | Power supply | Current | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 5,069,316,000 | 4,731,506,000 | |||
CFC | Power supply | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 84,996,000 | 0 | |||
CFC | Power supply | Brazos Electric Power Cooperative | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Credit Exposure | $ 85,000,000 | ||||
Debt Instrument, Pro Rata Share Set-Off Right In Event Of Bankruptcy | 17.00% | ||||
CFC | Power supply | Brazos Electric Power Cooperative | Non-performing loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 85,000,000 | ||||
CFC | Power supply | Brazos Electric Power Cooperative | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 85,000,000 | ||||
CFC | Non-performing loans | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 228,312,000 | 167,708,000 | |||
CFC | Non-performing loans | Power supply | Brazos Electric Power Cooperative | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 85,000,000 | ||||
CFC | Non-performing loans | Power supply | CFC Electric Distribution Borrower | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 143,000,000 | 168,000,000 | |||
Financing Receivable, Number of Loans | member | 1 | ||||
CFC | Substandard | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 378,981,000 | 165,376,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 64,982,000 | ||||
CFC | Substandard | Rayburn Country Electric Cooperative | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 379,000,000 | ||||
CFC | Substandard | Distribution | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 0 | 118,173,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | ||||
CFC | Substandard | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 378,981,000 | 47,203,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 64,982,000 | ||||
CFC | Doubtful [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 228,312,000 | 167,708,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 143,316,000 | ||||
CFC | Doubtful [Member] | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 228,312,000 | 167,708,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 143,316,000 | ||||
CFC | Special Mention | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 264,795,000 | 23,967,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 43,944,000 | ||||
CFC | Special Mention | Distribution | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 219,324,000 | 7,743,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | $ 13,177,000 | ||||
CFC | Special Mention | Distribution | CFC Electric Distribution Borrower | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Active Borrowers | borrower | 1 | ||||
Total loans outstanding | $ 219,000,000 | ||||
CFC | Special Mention | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 29,611,000 | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 29,611,000 | ||||
CFC | Pass | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 26,415,768,000 | 25,250,606,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 15,188,254,000 | ||||
CFC | Pass | Distribution | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 21,808,099,000 | 20,643,737,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | $ 12,654,148,000 | ||||
CFC | Pass | Distribution | CFC Electric Distribution Borrower | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Active Borrowers | borrower | 1 | ||||
Total loans outstanding | $ 146,000,000 | ||||
CFC | Pass | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 4,517,408,000 | 4,516,595,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,510,572,000 | ||||
RTFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 420,383,000 | 385,335,000 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 5,092,000 | ||||
Non-accrual loans | 9,185,000 | 0 | |||
Financing Receivable, Troubled Debt Restructuring | 4,592,000 | 5,092,000 | |||
RTFC | Current | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 420,383,000 | 385,335,000 | |||
RTFC | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 0 | 0 | |||
RTFC | Non-performing loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Active Borrowers | borrower | 2 | ||||
Total loans outstanding | $ 9,185,000 | 0 | |||
RTFC | Substandard | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 0 | 5,092,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | $ 0 | ||||
RTFC | Doubtful [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Active Borrowers | borrower | 2 | ||||
Total loans outstanding | $ 9,185,000 | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | ||||
RTFC | Special Mention | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 4,592,000 | 8,736,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 4,592,000 | ||||
RTFC | Pass | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 406,606,000 | 371,507,000 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 131,936,000 | ||||
Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Available Balance | [1] | 14,357,039,000 | 13,388,626,000 | ||
Unadvanced commitments | CFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Available Balance | [1] | 13,519,108,000 | 12,555,310,000 | ||
Unadvanced commitments | CFC | Distribution | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Available Balance | [1] | 9,387,070,000 | 8,992,457,000 | ||
Unadvanced commitments | CFC | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Available Balance | [1] | 3,970,698,000 | 3,409,227,000 | ||
Unadvanced commitments | RTFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Available Balance | [1] | 286,806,000 | 281,642,000 | ||
Commitments to Extend Credit Subject to Material Adverse Change Clause [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Available Balance | 11,312,000,000 | 10,532,000,000 | |||
Unadvanced commitments not subject to material adverse change clauses | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Available Balance | 3,044,515,000 | $ 2,857,000,000 | |||
Non-performing loans | CFC | Power supply | Brazos Electric Power Cooperative | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 85,000,000 | ||||
Secured Loans | CFC | Power supply | Brazos Electric Power Cooperative | Non-performing loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 21,000,000 | ||||
Unsecured Loans | CFC | Power supply | Brazos Electric Power Cooperative | Non-performing loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 64,000,000 | ||||
Loans Receivable Commercial and Industrial | Loans | Geographic Concentration Risk | TEXAS | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration (percent) | 17.00% | 16.00% | |||
Total loans outstanding | $ (4,878,000,000) | $ (4,222,000,000) | |||
Loans Receivable Commercial and Industrial | Loans | Credit concentration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk Number of Borrowers | borrower | 20 | 20 | |||
Loans Receivable Commercial and Industrial | Loans | Credit concentration | Electric Utility | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 27,995,000,000 | $ 26,306,000,000 | |||
Loans Receivable Commercial and Industrial | Loans | Customer Concentration Risk | 20 Largest Borrowers | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration (percent) | 22.00% | 22.00% | |||
Concentration Risk Number of Borrowers | borrower | 20 | 20 | |||
Total loans outstanding | $ 6,182,000,000 | $ 5,877,000,000 | |||
Loans Receivable Commercial and Industrial | Loans | Customer Concentration Risk | Largest Single Borrower or Controlled Group | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration (percent) | 2.00% | 2.00% | |||
Loans Receivable Commercial and Industrial | Loans | Customer Concentration Risk | Distribution | 20 Largest Borrowers | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk Number of Borrowers | distribution_system | 10 | 11 | |||
Loans Receivable Commercial and Industrial | Loans | Customer Concentration Risk | Power supply | 20 Largest Borrowers | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration Risk Number of Borrowers | power_supply_system | 10 | 9 | |||
Long-term loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 26,173,345,000 | $ 25,127,707,000 | [1] | ||
Financing Receivable, before Allowance for Credit Loss, Percentage | 92.00% | ||||
Long-term loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Available Balance | $ 5,771,813,000 | $ 5,458,676,000 | [1] | ||
Loans outstanding | Loans | Credit concentration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration (percent) | 99.00% | 99.00% | |||
Loans Guaranteed by Farmer Mac | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 512,000,000 | $ 569,000,000 | |||
Number of loans that defaulted | loan | 0 | ||||
Number of defaulted loans put to Farmer Mac for purchase | loan | 0 | ||||
Loans Guaranteed by Farmer Mac | Loans | Geographic Concentration Risk | TEXAS | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 172,000,000 | $ 181,000,000 | |||
Loans Guaranteed by Farmer Mac | Loans | Credit concentration | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration (percent) | 21.00% | 21.00% | |||
Total loans outstanding | $ 309,000,000 | $ 314,000,000 | |||
RUS guaranteed loans qualifying as permitted investments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 139,000,000 | $ 147,000,000 | |||
Unsecured Loans | CFC | Substandard | Rayburn Country Electric Cooperative | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 212,000,000 | ||||
Secured Loans | CFC | Substandard | Rayburn Country Electric Cooperative | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 167,000,000 | ||||
Line of Credit Restricted for Fuel Purchases | Performing Line of Credit for Troubled Debt Restructuring Borrower [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of lines of credit | line_of_credit | 1 | 2 | |||
Available Balance | $ 6,000,000 | $ 6,000,000 | |||
Total loans outstanding | 0 | 1,000,000 | |||
Line of Credit to Provide Bridge Funding | Performing Line of Credit for Troubled Debt Restructuring Borrower [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Available Balance | 2,000,000 | ||||
Total loans outstanding | 2,000,000 | ||||
Revolving credit agreements | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,725,000,000 | $ 2,725,000,000 | |||
Revolving credit agreements | CFC | Bank Of American, Syndicated Revolving Credit Agreement | Brazos Electric Power Cooperative | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000,000 | ||||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Loans - Financing Receivable Cr
Loans - Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | |
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | $ 2,508,802 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,450,105 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,690,369 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,830,363 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,868,555 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 15,825,151 | ||
Financing Receivable, Revolving | 2,241,762 | ||
Total loans outstanding | 28,415,107 | $ 26,690,854 | [1] |
Pass | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 2,480,202 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,450,105 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,592,922 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,822,466 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,859,858 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 15,568,317 | ||
Financing Receivable, Revolving | 1,755,372 | ||
Total loans outstanding | 27,529,242 | 26,319,975 | |
Special Mention | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 5,000 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 10,197 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 4,950 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 5,704 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 48,536 | ||
Financing Receivable, Revolving | 195,000 | ||
Total loans outstanding | 269,387 | 32,703 | |
Substandard | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 23,600 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 85,839 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 64,982 | ||
Financing Receivable, Revolving | 204,560 | ||
Total loans outstanding | 378,981 | 170,468 | |
Doubtful [Member] | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,411 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 2,947 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 2,993 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 143,316 | ||
Financing Receivable, Revolving | 86,830 | ||
Total loans outstanding | 237,497 | 167,708 | |
Criticized | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 28,600 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 97,447 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 7,897 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 8,697 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 256,834 | ||
Financing Receivable, Revolving | 486,390 | ||
Total loans outstanding | 885,865 | 370,879 | |
CFC | |||
Credit Quality | |||
Total loans outstanding | 27,287,856 | 25,607,657 | [1] |
CFC | Pass | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 2,339,899 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 2,158,518 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,576,405 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,750,262 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,780,498 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 15,188,254 | ||
Financing Receivable, Revolving | 1,621,932 | ||
Total loans outstanding | 26,415,768 | 25,250,606 | |
CFC | Special Mention | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 5,000 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 10,197 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 4,950 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 5,704 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 43,944 | ||
Financing Receivable, Revolving | 195,000 | ||
Total loans outstanding | 264,795 | 23,967 | |
CFC | Substandard | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 23,600 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 85,839 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 64,982 | ||
Financing Receivable, Revolving | 204,560 | ||
Total loans outstanding | 378,981 | 165,376 | |
CFC | Doubtful [Member] | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 143,316 | ||
Financing Receivable, Revolving | 84,996 | ||
Total loans outstanding | 228,312 | 167,708 | |
CFC | Distribution | |||
Credit Quality | |||
Total loans outstanding | 22,027,423 | 20,769,653 | [1] |
CFC | Distribution | Pass | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,768,491 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 1,935,368 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,227,223 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,497,479 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 1,520,593 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 12,654,148 | ||
Financing Receivable, Revolving | 1,204,797 | ||
Total loans outstanding | 21,808,099 | 20,643,737 | |
CFC | Distribution | Special Mention | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 5,000 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 5,197 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 950 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 13,177 | ||
Financing Receivable, Revolving | 195,000 | ||
Total loans outstanding | 219,324 | 7,743 | |
CFC | Distribution | Substandard | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | ||
Financing Receivable, Revolving | 0 | ||
Total loans outstanding | 0 | 118,173 | |
CFC | Power Supply Systems [Member] | |||
Credit Quality | |||
Total loans outstanding | 5,154,312 | 4,731,506 | [1] |
CFC | Power Supply Systems [Member] | Pass | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 568,917 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 201,122 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 345,496 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 252,783 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 259,358 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,510,572 | ||
Financing Receivable, Revolving | 379,160 | ||
Total loans outstanding | 4,517,408 | 4,516,595 | |
CFC | Power Supply Systems [Member] | Special Mention | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 29,611 | ||
Financing Receivable, Revolving | 0 | ||
Total loans outstanding | 29,611 | 0 | |
CFC | Power Supply Systems [Member] | Substandard | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 23,600 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 85,839 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 64,982 | ||
Financing Receivable, Revolving | 204,560 | ||
Total loans outstanding | 378,981 | 47,203 | |
CFC | Power Supply Systems [Member] | Doubtful [Member] | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 143,316 | ||
Financing Receivable, Revolving | 84,996 | ||
Total loans outstanding | 228,312 | 167,708 | |
CFC | Statewide and Associate [Member] | |||
Credit Quality | |||
Total loans outstanding | 106,121 | 106,498 | [1] |
CFC | Statewide and Associate [Member] | Pass | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 2,491 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 22,028 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 3,686 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 547 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 23,534 | ||
Financing Receivable, Revolving | 37,975 | ||
Total loans outstanding | 90,261 | 90,274 | |
CFC | Statewide and Associate [Member] | Special Mention | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 5,000 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 4,000 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 5,704 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,156 | ||
Financing Receivable, Revolving | 0 | ||
Total loans outstanding | 15,860 | 16,224 | |
NCSC | |||
Credit Quality | |||
Total loans outstanding | 706,868 | 697,862 | [1] |
NCSC | Pass | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 41,506 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 241,576 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 4,379 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 44,848 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 14,325 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 248,127 | ||
Financing Receivable, Revolving | 112,107 | ||
Total loans outstanding | 706,868 | 697,862 | |
RTFC | |||
Credit Quality | |||
Total loans outstanding | 420,383 | 385,335 | [1] |
RTFC | Pass | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 98,797 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 50,011 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 12,138 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 27,356 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 65,035 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 131,936 | ||
Financing Receivable, Revolving | 21,333 | ||
Total loans outstanding | 406,606 | 371,507 | |
RTFC | Special Mention | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 4,592 | ||
Financing Receivable, Revolving | 0 | ||
Total loans outstanding | 4,592 | 8,736 | |
RTFC | Substandard | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | ||
Financing Receivable, Revolving | 0 | ||
Total loans outstanding | 0 | 5,092 | |
RTFC | Doubtful [Member] | |||
Credit Quality | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 1,411 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 2,947 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 2,993 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | ||
Financing Receivable, Revolving | 1,834 | ||
Total loans outstanding | $ 9,185 | $ 0 | |
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Changes in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Loan Loss Allowance | |||
Balance at the beginning of the period | $ 53,125 | $ 17,535 | $ 18,801 |
Provision for Loan and Lease Losses | (28,507) | (35,590) | 1,266 |
Total allowance for credit losses | 85,532 | 53,125 | 17,535 |
Cumulative effect from adoption of new accounting standard | Accounting Standards Update 2016-13 | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 3,900 | ||
Total allowance for credit losses | 3,900 | ||
Adjusted Balance | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 57,025 | ||
Total allowance for credit losses | 57,025 | ||
CFC | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 47,438 | 13,120 | 12,300 |
Provision for Loan and Lease Losses | (26,380) | (34,318) | (820) |
Total allowance for credit losses | 79,463 | 47,438 | 13,120 |
CFC | Distribution | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 8,002 | 7,483 | 7,611 |
Provision for Loan and Lease Losses | (1,838) | (519) | 128 |
Total allowance for credit losses | 13,426 | 8,002 | 7,483 |
CFC | Power Supply Systems [Member] | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 38,027 | 4,253 | 4,588 |
Provision for Loan and Lease Losses | (24,585) | (33,774) | 335 |
Total allowance for credit losses | 64,646 | 38,027 | 4,253 |
CFC | Statewide and Associate [Member] | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 1,409 | 1,384 | 101 |
Provision for Loan and Lease Losses | 43 | (25) | (1,283) |
Total allowance for credit losses | 1,391 | 1,409 | 1,384 |
CFC | Cumulative effect from adoption of new accounting standard | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 5,645 | ||
Total allowance for credit losses | 5,645 | ||
CFC | Cumulative effect from adoption of new accounting standard | Distribution | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 3,586 | ||
Total allowance for credit losses | 3,586 | ||
CFC | Cumulative effect from adoption of new accounting standard | Power Supply Systems [Member] | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 2,034 | ||
Total allowance for credit losses | 2,034 | ||
CFC | Cumulative effect from adoption of new accounting standard | Statewide and Associate [Member] | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 25 | ||
Total allowance for credit losses | 25 | ||
CFC | Adjusted Balance | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 53,083 | ||
Total allowance for credit losses | 53,083 | ||
CFC | Adjusted Balance | Distribution | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 11,588 | ||
Total allowance for credit losses | 11,588 | ||
CFC | Adjusted Balance | Power Supply Systems [Member] | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 40,061 | ||
Total allowance for credit losses | 40,061 | ||
CFC | Adjusted Balance | Statewide and Associate [Member] | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 1,434 | ||
Total allowance for credit losses | 1,434 | ||
NCSC | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 806 | 2,007 | 2,082 |
Provision for Loan and Lease Losses | (583) | 1,201 | 75 |
Total allowance for credit losses | 1,374 | 806 | 2,007 |
NCSC | Cumulative effect from adoption of new accounting standard | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | (15) | ||
Total allowance for credit losses | (15) | ||
NCSC | Adjusted Balance | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 791 | ||
Total allowance for credit losses | 791 | ||
RTFC | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | 4,881 | 2,408 | 4,419 |
Provision for Loan and Lease Losses | 1,544 | 2,473 | (2,011) |
Total allowance for credit losses | 4,695 | 4,881 | $ 2,408 |
RTFC | Cumulative effect from adoption of new accounting standard | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | (1,730) | ||
Total allowance for credit losses | (1,730) | ||
RTFC | Adjusted Balance | |||
Loan Loss Allowance | |||
Balance at the beginning of the period | $ 3,151 | ||
Total allowance for credit losses | $ 3,151 |
Allowance for Credit Losses - R
Allowance for Credit Losses - Recorded Investment (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | |
Allowance components: | |||||
Collective allowance | $ 42,442 | $ 18,292 | |||
Asset-specific allowance(1) | 43,090 | 34,833 | |||
Total allowance for credit losses | 85,532 | 53,125 | $ 17,535 | $ 18,801 | |
Loans outstanding:(2) | |||||
Collectively evaluated loans | 28,167,639 | 26,512,298 | |||
Individually evaluated loans(1) | 247,468 | 178,556 | |||
Total loans outstanding | $ 28,415,107 | $ 26,690,854 | [1] | ||
Allowance Coverage Ratio | 0.0030 | 0.0020 | |||
Deferred origination costs | $ 11,854 | $ 11,526 | [1] | ||
Financing Receivable, Allowance For Credit Losses, Collectively Evaluated For Impairment Ratio | 0.15% | 0.07% | |||
Financing Receivable, Allowance For Credit Losses, Individually Evaluated For Impairment Ratio | 0.1741 | 0.1951 | |||
Non-performing loans | |||||
Loans outstanding:(2) | |||||
Total loans outstanding | $ 237,497 | $ 167,708 | |||
CFC | |||||
Allowance components: | |||||
Collective allowance | 39,921 | 13,584 | |||
Asset-specific allowance(1) | 39,542 | 33,854 | |||
Total allowance for credit losses | 79,463 | 47,438 | 13,120 | 12,300 | |
Loans outstanding:(2) | |||||
Collectively evaluated loans | 27,054,165 | 25,434,193 | |||
Individually evaluated loans(1) | 233,691 | 173,464 | |||
Total loans outstanding | $ 27,287,856 | $ 25,607,657 | [1] | ||
Allowance Coverage Ratio | 0.0029 | 0.0019 | |||
Deferred origination costs | $ 12,000 | $ 11,000 | |||
Financing Receivable, Allowance For Credit Losses, Collectively Evaluated For Impairment Ratio | 0.15% | 0.05% | |||
Financing Receivable, Allowance For Credit Losses, Individually Evaluated For Impairment Ratio | 0.1692 | 0.1952 | |||
CFC | Power Supply Systems [Member] | |||||
Allowance components: | |||||
Collective allowance | $ 25,104 | $ 4,173 | |||
Asset-specific allowance(1) | 39,542 | 33,854 | |||
Total allowance for credit losses | 64,646 | 38,027 | 4,253 | 4,588 | |
Loans outstanding:(2) | |||||
Collectively evaluated loans | 4,926,000 | 4,563,798 | |||
Individually evaluated loans(1) | 228,312 | 167,708 | |||
Total loans outstanding | $ 5,154,312 | $ 4,731,506 | [1] | ||
Allowance Coverage Ratio | 0.0125 | 0.0080 | |||
Financing Receivable, Allowance For Credit Losses, Collectively Evaluated For Impairment Ratio | 0.51% | 0.09% | |||
Financing Receivable, Allowance For Credit Losses, Individually Evaluated For Impairment Ratio | 0.1732 | 0.2019 | |||
CFC | Power Supply Systems [Member] | Non-performing loans | |||||
Loans outstanding:(2) | |||||
Total loans outstanding | $ 228,312 | $ 167,708 | |||
CFC | Distribution | |||||
Allowance components: | |||||
Collective allowance | 13,426 | 8,002 | |||
Asset-specific allowance(1) | 0 | 0 | |||
Total allowance for credit losses | 13,426 | 8,002 | 7,483 | 7,611 | |
Loans outstanding:(2) | |||||
Collectively evaluated loans | 22,022,044 | 20,763,897 | |||
Individually evaluated loans(1) | 5,379 | 5,756 | |||
Total loans outstanding | $ 22,027,423 | $ 20,769,653 | [1] | ||
Allowance Coverage Ratio | 0.0006 | 0.0004 | |||
Financing Receivable, Allowance For Credit Losses, Collectively Evaluated For Impairment Ratio | 0.06% | 0.04% | |||
Financing Receivable, Allowance For Credit Losses, Individually Evaluated For Impairment Ratio | 0 | 0 | |||
CFC | Statewide and Associate [Member] | |||||
Allowance components: | |||||
Collective allowance | $ 1,391 | $ 1,409 | |||
Asset-specific allowance(1) | 0 | 0 | |||
Total allowance for credit losses | 1,391 | 1,409 | 1,384 | 101 | |
Loans outstanding:(2) | |||||
Collectively evaluated loans | 106,121 | 106,498 | |||
Individually evaluated loans(1) | 0 | 0 | |||
Total loans outstanding | $ 106,121 | $ 106,498 | [1] | ||
Allowance Coverage Ratio | 0.0131 | 0.0132 | |||
Financing Receivable, Allowance For Credit Losses, Collectively Evaluated For Impairment Ratio | 1.31% | 1.32% | |||
Financing Receivable, Allowance For Credit Losses, Individually Evaluated For Impairment Ratio | 0 | 0 | |||
NCSC | |||||
Allowance components: | |||||
Collective allowance | $ 1,374 | $ 806 | |||
Asset-specific allowance(1) | 0 | 0 | |||
Total allowance for credit losses | 1,374 | 806 | 2,007 | 2,082 | |
Loans outstanding:(2) | |||||
Collectively evaluated loans | 706,868 | 697,862 | |||
Individually evaluated loans(1) | 0 | 0 | |||
Total loans outstanding | $ 706,868 | $ 697,862 | [1] | ||
Allowance Coverage Ratio | 0.0019 | 0.0012 | |||
Financing Receivable, Allowance For Credit Losses, Collectively Evaluated For Impairment Ratio | 0.19% | 0.12% | |||
Financing Receivable, Allowance For Credit Losses, Individually Evaluated For Impairment Ratio | 0 | 0 | |||
RTFC | |||||
Allowance components: | |||||
Collective allowance | $ 1,147 | $ 3,902 | |||
Asset-specific allowance(1) | 3,548 | 979 | |||
Total allowance for credit losses | 4,695 | 4,881 | $ 2,408 | $ 4,419 | |
Loans outstanding:(2) | |||||
Collectively evaluated loans | 406,606 | 380,243 | |||
Individually evaluated loans(1) | 13,777 | 5,092 | |||
Total loans outstanding | $ 420,383 | $ 385,335 | [1] | ||
Allowance Coverage Ratio | 0.0112 | 0.0127 | |||
Financing Receivable, Allowance For Credit Losses, Collectively Evaluated For Impairment Ratio | 0.28% | 1.03% | |||
Financing Receivable, Allowance For Credit Losses, Individually Evaluated For Impairment Ratio | 0.2575 | 0.1923 | |||
RTFC | Non-performing loans | |||||
Loans outstanding:(2) | |||||
Total loans outstanding | $ 9,185 | $ 0 | |||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Allowance for Credit Losses - A
Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Thousands | Jun. 01, 2020 | May 31, 2021 | Mar. 31, 2021 | May 31, 2020 | |
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | $ 28,415,107 | $ 26,690,854 | [1] | ||
Impaired Financing Receivable, Related Allowance | 34,833 | ||||
Deferred origination costs | 11,854 | 11,526 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 172,800 | ||||
Credit Reserve for Unadvanced Loan Commitments | 1,000 | 1,000 | |||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 32,000 | ||||
Asset-specific allowance(1) | $ 43,090 | $ 34,833 | |||
Financing Receivable, Allowance For Credit Losses, Collectively Evaluated For Impairment Ratio | 0.15% | 0.07% | |||
Cumulative effect from adoption of new accounting standard | Accounting Standards Update 2016-13 | |||||
Loan Loss Allowance | |||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 4,000 | ||||
Non-performing loans | |||||
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | $ 237,497 | $ 167,708 | |||
Doubtful [Member] | |||||
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | 237,497 | 167,708 | |||
CFC | |||||
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | 27,287,856 | 25,607,657 | [1] | ||
Impaired Financing Receivable, Related Allowance | 33,854 | ||||
Deferred origination costs | 12,000 | 11,000 | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 167,708 | ||||
Asset-specific allowance(1) | $ 39,542 | $ 33,854 | |||
Financing Receivable, Allowance For Credit Losses, Collectively Evaluated For Impairment Ratio | 0.15% | 0.05% | |||
CFC | Doubtful [Member] | |||||
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | $ 228,312 | $ 167,708 | |||
CFC | Brazos Electric Power Cooperative | |||||
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | 85,000 | ||||
Letters of Credit Outstanding, Amount | 1,000 | $ 3,000 | |||
CFC | Rayburn Country Electric Cooperative | |||||
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | 379,000 | ||||
Collective Allowance | |||||
Loan Loss Allowance | |||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 24,000 | ||||
Asset-Specific Allowance | |||||
Loan Loss Allowance | |||||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 8,000 | ||||
Power Supply Systems [Member] | CFC | |||||
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | 5,154,312 | 4,731,506 | [1] | ||
Asset-specific allowance(1) | $ 39,542 | $ 33,854 | |||
Financing Receivable, Allowance For Credit Losses, Collectively Evaluated For Impairment Ratio | 0.51% | 0.09% | |||
Power Supply Systems [Member] | CFC | Non-performing loans | |||||
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | $ 228,312 | $ 167,708 | |||
Power Supply Systems [Member] | CFC | Doubtful [Member] | |||||
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | 228,312 | $ 167,708 | |||
Power Supply Systems [Member] | CFC | Brazos Electric Power Cooperative | Non-performing loans | |||||
Loan Loss Allowance | |||||
Loans and Leases Receivable, Net of Deferred Income | $ 85,000 | ||||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Short-Term Borrowings - Short-T
Short-Term Borrowings - Short-Term Debt Outstanding and Weighted-Average Interest Rates (Details) - USD ($) $ in Thousands | May 31, 2021 | May 25, 2021 | May 31, 2020 |
Short-term Debt [Line Items] | |||
Short-term Debt | $ 4,582,096 | $ 3,961,985 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.22% | 0.62% | |
Commercial paper sold through dealers, net of discounts | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 894,977 | $ 0 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.16% | 0.00% | |
Commercial paper sold directly to members, at par | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 1,124,607 | $ 1,318,566 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.14% | 0.34% | |
Commercial Paper [Member] | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 2,019,584 | $ 1,318,566 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.15% | 0.34% | |
Select notes to members | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 1,539,150 | $ 1,597,959 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.30% | 0.75% | |
Daily liquidity fund notes | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 460,556 | $ 508,618 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.08% | 0.10% | |
Medium-term notes sold to members | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 362,691 | $ 286,842 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.42% | 1.64% | |
Farmer Mac Notes Payable | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 0 | $ 250,000 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.00% | 1.06% | |
Securities Sold under Agreements to Repurchase | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 200,115 | $ 200,000 | $ 0 |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.30% | 0.00% |
Short-Term Borrowings - Commitm
Short-Term Borrowings - Commitments under Revolving Credit Agreements (Details) - Revolving credit agreements - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Short-term Debt [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,725 | $ 2,725 |
Letters of Credit Outstanding, Amount | 3 | 3 |
Line of Credit Facility, Remaining Borrowing Capacity | 2,722 | 2,722 |
Three Year Agreement | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,315 | 1,315 |
Letters of Credit Outstanding, Amount | 0 | 0 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,315 | $ 1,315 |
Debt Instrument, Maturity Date | Nov. 28, 2022 | |
Line of Credit Facility, Commitment Fee Percentage | 750.00% | 750.00% |
Five Year Agreement | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,410 | $ 1,410 |
Letters of Credit Outstanding, Amount | 3 | 3 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,407 | $ 1,407 |
Debt Instrument, Maturity Date | Nov. 28, 2023 | |
Line of Credit Facility, Commitment Fee Percentage | 1000.00% | 1000.00% |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Details) - USD ($) $ in Thousands | Jun. 07, 2021 | May 31, 2021 | May 31, 2020 |
Short-term Debt [Line Items] | |||
Short-term Debt | $ 4,582,096 | $ 3,961,985 | |
Collateral pledged | $ 210,894 | $ 210,894 | |
Short-term Debt | Credit Availability Concentration Risk | |||
Short-term Debt [Line Items] | |||
Concentration (percent) | 17.00% | 15.00% | |
Short-term Debt | |||
Short-term Debt [Line Items] | |||
Term of debt | 1 year | ||
Commercial paper | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 2,019,584 | $ 1,318,566 | |
Select notes to members | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 1,539,150 | 1,597,959 | |
Minimum | Commercial paper | |||
Short-term Debt [Line Items] | |||
Term of debt | 1 day | ||
Minimum | Select notes to members | |||
Short-term Debt [Line Items] | |||
Term of debt | 30 days | ||
Maximum | Commercial paper | |||
Short-term Debt [Line Items] | |||
Term of debt | 270 days | ||
Maximum | Select notes to members | |||
Short-term Debt [Line Items] | |||
Term of debt | 270 days | ||
Revolving credit agreements | |||
Short-term Debt [Line Items] | |||
Short-term Debt | $ 0 | 0 | |
Letter of Credit Maximum Amount Available | 300,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 2,725,000 | 2,725,000 | |
Revolving credit agreements | Subsequent Event | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,600,000 | ||
Revolving credit agreements | Three Year Agreement | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,315,000 | 1,315,000 | |
Debt Instrument, Maturity Date | Nov. 28, 2022 | ||
Revolving credit agreements | Three Year Agreement | Subsequent Event | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 1,245,000 | ||
Line Of Credit Facility Terminated | 70,000 | ||
Revolving credit agreements | Five Year Agreement | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,410,000 | $ 1,410,000 | |
Debt Instrument, Maturity Date | Nov. 28, 2023 | ||
Revolving credit agreements | Five Year Agreement | Subsequent Event | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 1,355,000 | ||
Line Of Credit Facility Terminated | $ 55,000 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Outstanding and Weighted-Average Interest Rates (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 20,603,123 | $ 19,712,024 |
Weighted-Average Interest Rate | 2.66% | 2.92% |
Medium-term notes sold through dealers | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 3,943,728 | $ 3,086,733 |
Weighted-Average Interest Rate | 2.31% | 3.34% |
Medium-term notes sold to members | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 232,346 | $ 372,117 |
Weighted-Average Interest Rate | 2.61% | 2.85% |
Unsecured medium-term notes | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 4,176,074 | $ 3,458,850 |
Unamortized discount | (2,307) | (997) |
Unamortized Debt Issuance Expense | (18,036) | (16,943) |
Long-term Debt | $ 4,155,731 | $ 3,440,910 |
Weighted-Average Interest Rate | 0.00% | 3.29% |
Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 3,886 | $ 5,794 |
Unamortized discount | (35) | (107) |
Unamortized Debt Issuance Expense | $ (5) | $ (26) |
Weighted-Average Interest Rate | 0.00% | 0.00% |
Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 3,846 | $ 5,661 |
Unsecured long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 4,159,577 | $ 3,446,571 |
Weighted-Average Interest Rate | 2.33% | 3.29% |
Collateral Trust Bonds | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 7,452,711 | $ 7,457,711 |
Unamortized discount | (227,046) | (236,461) |
Unamortized Debt Issuance Expense | (33,721) | (32,697) |
Long-term Debt | $ 7,191,944 | $ 7,188,553 |
Weighted-Average Interest Rate | 3.15% | 3.23% |
Guaranteed Underwriter Program Notes Payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 6,269,303 | $ 6,261,312 |
Long-term Debt | $ 6,269,000 | |
Weighted-Average Interest Rate | 2.76% | 2.74% |
Farmer Mac notes payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 2,809,637 | |
Long-term Debt | $ 2,977,909 | |
Weighted-Average Interest Rate | 1.68% | 2.07% |
Other secured notes payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 4,412 | $ 6,068 |
Unamortized Debt Issuance Expense | (22) | (117) |
Long-term Debt | $ 4,390 | $ 5,951 |
Weighted-Average Interest Rate | 3.14% | 2.69% |
Secured notes payable | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 9,251,602 | $ 9,076,900 |
Weighted-Average Interest Rate | 2.53% | |
Secured long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 16,443,546 | $ 16,265,453 |
Weighted-Average Interest Rate | 2.74% | 2.85% |
Long-Term Debt - Long-Term De_2
Long-Term Debt - Long-Term Debt Maturities (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Amount Maturing | ||
Long-term Debt | $ 20,603,123 | $ 19,712,024 |
Weighted-Average Interest Rate | ||
Total (as a percent) | 2.66% | 2.92% |
Long-Term Debt | ||
Amount Maturing | ||
2020 | $ 2,597,519 | |
2021 | 1,843,775 | |
2022 | 1,652,300 | |
2023 | 842,377 | |
2024 | 2,428,251 | |
Thereafter | 11,520,073 | |
Long-term Debt | $ 20,884,295 | |
Weighted-Average Interest Rate | ||
2020 (as a percent) | 1.81% | |
2021 (as a percent) | 1.65% | |
2022 (as a percent) | 2.18% | |
2023 (as a percent) | 2.76% | |
2024 (as a percent) | 2.86% | |
Thereafter (as a percent) | 3.03% | |
Total (as a percent) | 2.66% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | Feb. 24, 2021 | Feb. 16, 2021 | Feb. 08, 2021 | Oct. 08, 2020 | Oct. 31, 2020 | Jun. 30, 2020 | May 31, 2021 | May 31, 2020 | May 31, 2019 | Nov. 19, 2020 |
Debt Instrument [Line Items] | ||||||||||
Losses on early extinguishment of debt | $ (1,456) | $ (683) | $ (7,100) | |||||||
Long-term Debt | $ 20,603,123 | $ 19,712,024 | ||||||||
Long-Term Debt | Credit Availability Concentration Risk | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Concentration (percent) | 75.00% | 76.00% | ||||||||
Fixed Rate Debt | Long-Term Debt | Credit Availability Concentration Risk | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Concentration (percent) | 89.00% | 86.00% | ||||||||
Variable Rate Debt | Long-Term Debt | Credit Availability Concentration Risk | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Concentration (percent) | 11.00% | 14.00% | ||||||||
2.30 Percent Collateral Trust Bonds [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.30% | |||||||||
Early Repayment of Senior Debt | $ 350,000 | |||||||||
Secured notes payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 9,251,602 | $ 9,076,900 | ||||||||
Guaranteed Underwriter Program Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 6,269,000 | |||||||||
Debt Instrument Fee Percentage | 3.00% | 3.00% | ||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 975,000 | $ 375,000 | ||||||||
Maximum Percentage of Patronage Capital Distribution Allowed | 5.00% | |||||||||
Long-term Debt | $ 6,269,303 | $ 6,261,312 | ||||||||
Proceeds from issuance of subordinated deferrable debt | 300,000 | |||||||||
Debt Instrument, Increase (Decrease), Net | 8,000 | |||||||||
Early Repayment of Senior Debt | 150,000 | |||||||||
Unsecured notes payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 3,886 | 5,794 | ||||||||
Secured long-term debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 16,443,546 | $ 16,265,453 | ||||||||
Long Term Debt, Percentage | 80.00% | 83.00% | ||||||||
Debt Instrument, Increase (Decrease), Net | $ 179,000 | |||||||||
Collateral Trust Bonds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 7,191,944 | $ 7,188,553 | ||||||||
Long-term Debt | 7,452,711 | 7,457,711 | ||||||||
Debt Instrument, Increase (Decrease), Net | 3,000 | |||||||||
Early Repayment of Senior Debt | $ 400,000 | |||||||||
2.35 Percent Collateral Trust Bonds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.35% | |||||||||
1.35 Percent Collateral Trust Bonds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.35% | |||||||||
Proceeds from Issuance of Secured Debt | $ 400,000 | |||||||||
1.65 Percent Collateral Trust Bonds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.65% | |||||||||
Proceeds from Issuance of Secured Debt | $ 350,000 | |||||||||
Federal Agricultural Mortgage Corporation | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument Maximum Borrowing Capacity | 5,500,000 | |||||||||
Farmer Mac notes payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 2,977,909 | |||||||||
Long-term Debt | 2,809,637 | |||||||||
Unsecured long-term debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 4,159,577 | $ 3,446,571 | ||||||||
Long Term Debt, Percentage | 20.00% | 17.00% | ||||||||
Debt Instrument, Increase (Decrease), Net | $ 712,000 | |||||||||
0.35 Percent Medium Term Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.35% | |||||||||
Proceeds from Issuance of Medium-term Notes | $ 500,000 | |||||||||
Variable Rate Medium-Term Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from Issuance of Medium-term Notes | $ 250,000 | |||||||||
1.00 Percent Medium Term Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||||||||
Proceeds from Issuance of Medium-term Notes | $ 600,000 | |||||||||
0.25 Percent Medium Term Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.25% | |||||||||
Proceeds from Issuance of Medium-term Notes | $ 75,000 | |||||||||
Federal Agricultural Mortgage Corporation | First revolving note purchase agreement with FMAC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 2,522,000 | |||||||||
Farmer Mac Notes Payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from issuance of subordinated deferrable debt | $ 500,000 |
Subordinated Deferrable Debt -
Subordinated Deferrable Debt - Additional Information (Details) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Subordinated Deferrable Debt | ||
Interest rate (as a percent) | 5.11% | 5.11% |
Period after which debt can be called at par | 10 years | |
Debt Instrument, Period after which Debt can be Converted | 10 years | |
Maximum | ||
Subordinated Deferrable Debt | ||
Consecutive period for which interest payment can be deferred | 5 years | |
4.75 percent due 2043 | ||
Subordinated Deferrable Debt | ||
Interest rate (as a percent) | 4.75% | |
Term of debt | 30 years | 30 years |
5.25 Percent Due 2046 | ||
Subordinated Deferrable Debt | ||
Interest rate (as a percent) | 5.25% | |
Term of debt | 30 years | 30 years |
Subordinated Debt | Maximum | ||
Subordinated Deferrable Debt | ||
Term of debt | 30 years | |
5.50 Percent Due 2064 | ||
Subordinated Deferrable Debt | ||
Interest rate (as a percent) | 5.50% | |
Term of debt | 45 years | 45 years |
Period after which debt can be called at par | 5 years | |
5.50 Percent Due 2064 | Maximum | ||
Subordinated Deferrable Debt | ||
Term of debt | 45 years | |
Consecutive period for which interest payment can be deferred | 40 years |
Subordinated Deferrable Debt _2
Subordinated Deferrable Debt - Subordinated Deferrable Debt Outstanding and Weighted-Average Interest Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Debt Instrument [Line Items] | ||
Subordinated Debt | $ 986,315 | $ 986,119 |
Interest rate (as a percent) | 5.11% | 5.11% |
4.75 percent due 2043 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.75% | |
Debt Instrument, Face Amount | $ 400,000 | $ 400,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% |
Term of debt | 30 years | 30 years |
Period after which debt can be called at par | Apr. 30, 2023 | Apr. 30, 2023 |
5.25 Percent Due 2046 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.25% | |
Debt Instrument, Face Amount | $ 350,000 | $ 350,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% |
Term of debt | 30 years | 30 years |
Period after which debt can be called at par | Apr. 20, 2026 | Apr. 20, 2026 |
5.50 Percent Due 2064 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.50% | |
Debt Instrument, Face Amount | $ 250,000 | $ 250,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% |
Term of debt | 45 years | 45 years |
Period after which debt can be called at par | May 15, 2024 | May 15, 2024 |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ (13,685) | $ (13,881) |
Debt Instrument, Face Amount | $ 1,000,000 | $ 1,000,000 |
Members' Subordinated Certifi_3
Members' Subordinated Certificates - Outstanding and Weighted-Average Interest Rates (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | |
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | $ 986,315 | $ 986,119 | |
Weighted-Average Interest Rate | 2.66% | 2.92% | |
Subordinated Certificates | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | $ 1,254,660 | $ 1,339,618 | |
Weighted-Average Interest Rate | 4.32% | 4.22% | |
Certificates maturing 2021 through 2119 | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | $ 628,582 | $ 630,467 | |
Subscribed and unissued (1) | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | [1] | 12 | 16 |
Total membership subordinated certificates | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | $ 628,594 | $ 630,483 | |
Weighted-Average Interest Rate | 4.95% | 4.95% | |
Interest-bearing loan subordinated certificates maturing through 2047 | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | $ 223,067 | $ 280,372 | |
Non-interest-bearing loan subordinated certificates maturing through 2047 | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | 132,203 | 144,258 | |
Subscribed and unissued (1) | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | [1] | 45 | 45 |
Loan Subordinated Certificates | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | $ 355,315 | $ 424,675 | |
Weighted-Average Interest Rate | 2.61% | 2.71% | |
Interest Bearing Guarantee Subordinated Certificates | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | $ 31,581 | $ 43,700 | |
Non Interest Bearing Guarantee Subordinated Certificates | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | 0 | 14,590 | |
Guarantee Subordinated Certificates | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | $ 31,581 | $ 58,290 | |
Weighted-Average Interest Rate | 6.06% | 4.43% | |
Loan and guarantee subordinated certificates | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | $ 386,896 | $ 482,965 | |
Weighted-Average Interest Rate | 2.89% | 2.92% | |
Member capital securities | |||
Subordinated Deferrable Debt | |||
Subordinated deferrable debt | $ 239,170 | $ 226,170 | |
Weighted-Average Interest Rate | 5.00% | 5.00% | |
[1] | The subscribed and unissued subordinated certificates represent subordinated certificates that members are required to purchase. Upon collection of full payment of the subordinated certificate amount, the certificate will be reclassified from subscribed and unissued to outstanding. |
Members' Subordinated Certifi_4
Members' Subordinated Certificates - Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | ||
Amount Maturing | |||
Total long-term debt | $ 986,315 | $ 986,119 | |
Members' Certificates, exclusive of certificates amortized annually | |||
Amount Maturing | |||
2020 | [1] | 6,879 | |
2021 | [1] | 18,820 | |
2023 | [1] | 10,458 | |
2024 | [1] | 55,073 | |
Thereafter | [1] | 1,152,739 | |
Total long-term debt | [1] | $ 1,254,604 | |
Weighted-Average Interest Rate | |||
2020 (as a percent) | 2.64% | ||
2021 (as a percent) | 3.87% | ||
Long-Term Debt, Maturity, Year Three | [1] | $ 10,635 | |
2022 (as a percent) | 2.46% | ||
2023 (as a percent) | 2.87% | ||
2024 (as a percent) | 2.88% | ||
Thereafter (as a percent) | 4.44% | ||
Total (as a percent) | 4.32% | ||
Loan Subordinated Certificates | |||
Amount Maturing | |||
Total long-term debt | $ 355,315 | $ 424,675 | |
Other information | |||
Payments not received on certificates subscribed and unissued | 60 | ||
Average amortization of debt | $ 13,000 | ||
Amortization as a percentage of amortizing loan subordinated debt outstanding | 7.00% | ||
Amortizing Member Loan Subordinated Certificates | |||
Amount Maturing | |||
Total long-term debt | $ 190,000 | ||
[1] | Amortization payments on these certificates totaled $13 million in fiscal year 2021 and represented 7% of amortizing loan subordinated certificates outstanding. |
Members' Subordinated Certifi_5
Members' Subordinated Certificates - Additional Information (Details) | 12 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Members' subordinated certificates | ||
Interest rate (as a percent) | 5.11% | 5.11% |
Membership subordinated certificates | ||
Members' subordinated certificates | ||
Maturity period | 100 years | |
Interest rate (as a percent) | 5.00% | |
Member capital securities | ||
Members' subordinated certificates | ||
Maturity period | 30 years | |
Interest rate (as a percent) | 5.00% | |
Series 2013 Member Capital Securities | ||
Members' subordinated certificates | ||
Member capital security, call option term | 10 years | |
Weighted Average | Membership subordinated certificates | ||
Members' subordinated certificates | ||
Maturity period | 56 years | 56 years |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Derivatives Notional Amounts and Weighted-Average Rate (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 8,978,516 | $ 9,306,808 |
Pay Fixed Receive Variable Swaps | ||
Derivative [Line Items] | ||
Derivative Weighted Average Interest Rate Paid Percentage | 2.65% | 2.78% |
Derivative Weighted Average Interest Rate Received Percentage | 0.20% | 0.88% |
Derivative, Notional Amount | $ 6,579,516 | $ 6,604,808 |
Pay Variable Receive Fixed Swaps | ||
Derivative [Line Items] | ||
Derivative Weighted Average Interest Rate Paid Percentage | 0.92% | 1.54% |
Derivative Weighted Average Interest Rate Received Percentage | 2.80% | 2.75% |
Derivative, Notional Amount | $ 2,399,000 | $ 2,699,000 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative Weighted Average Interest Rate Paid Percentage | 2.19% | 2.42% |
Derivative Weighted Average Interest Rate Received Percentage | 0.89% | 1.42% |
Derivative, Notional Amount | $ 8,978,516 | $ 9,303,808 |
Forward Contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 0 | $ 3,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Derivatives Notional Amount Maturities (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 8,978,516 | $ 9,306,808 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 8,978,516 | $ 9,303,808 |
Derivative Notional Amount Maturing in one year | 735,554 | |
Derivative Notional Amount Maturing in two years | 558,159 | |
Derivative Notional Amount Maturing in three years | 643,849 | |
Derivative Notional Amount Maturing in four years | 100,000 | |
Derivative Notional Amount Maturing in five years | 798,822 | |
Derivative Notional Amount Maturing in more than five years | $ 6,142,132 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Derivatives - Balance Sheet Impact (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 8,978,516 | $ 9,306,808 |
Derivative liabilities | 584,989 | 1,258,459 |
Derivative Asset, Notional Amount | 2,560,618 | 2,699,000 |
Derivative assets | 121,259 | 173,195 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 8,978,516 | 9,303,808 |
Derivative Liability, Notional Amount | 6,417,898 | 6,607,808 |
Derivative liabilities | $ 584,989 | $ 1,258,459 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Derivatives Offsetting (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Liability | $ 0 | $ 0 |
Derivative, Collateral, Obligation to Return Securities | 121,259 | 173,195 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative, Collateral, Right to Reclaim Securities | 121,259 | 173,195 |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 463,730 | 1,085,264 |
Derivative assets | 121,259 | 173,195 |
Derivative Liability, Fair Value, Gross Liability | 584,989 | 1,258,459 |
Derivative assets | 121,259 | 173,195 |
Derivative liabilities | 584,989 | 1,258,459 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative liabilities | $ 584,989 | $ 1,258,459 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Derivatives - Income Statement Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Unrealized Gain (Loss) on Derivatives | $ 621,946 | $ (734,278) | $ (319,730) |
Derivative gains (losses) | 506,301 | (790,151) | (363,341) |
Total interest expense | $ (702,063) | $ (821,089) | $ (836,209) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Derivatives - Rating Triggers (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | |
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 8,978,516 | $ 9,306,808 | |
Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 8,978,516 | $ 9,303,808 | |
Interest Rate Swap Rating Trigger | |||
Derivative [Line Items] | |||
Assets Needed for Immediate Settlement, Aggregate Fair Value | 327,925 | ||
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | ||
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (327,925) | ||
Derivative, Notional Amount | 6,480,165 | ||
Moodys A3 Rating Standard Poors A Minus Rating | Interest Rate Swap Rating Trigger | |||
Derivative [Line Items] | |||
Assets Needed for Immediate Settlement, Aggregate Fair Value | 8,168 | ||
Assets Received for Immediate Settlement Aggregate Fair Value | [1] | 0 | |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | [1] | (8,168) | |
Derivative, Notional Amount | [1] | 41,080 | |
Moodys Baa 1 Rating Standard Poor's BBB Plus Rating | Interest Rate Swap Rating Trigger | |||
Derivative [Line Items] | |||
Assets Needed for Immediate Settlement, Aggregate Fair Value | 304,922 | ||
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | ||
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (304,922) | ||
Derivative, Notional Amount | 6,031,373 | ||
Moody's Baa 2 Rating Standard Poor's BBB Rating | Interest Rate Swap Rating Trigger | |||
Derivative [Line Items] | |||
Assets Needed for Immediate Settlement, Aggregate Fair Value | [2] | 14,835 | |
Assets Received for Immediate Settlement Aggregate Fair Value | [2] | 0 | |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | [2] | (14,835) | |
Derivative, Notional Amount | [2] | $ 407,712 | |
[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_9
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
May 31, 2021USD ($)loan | May 31, 2020USD ($) | ||
Derivative [Line Items] | |||
Long-term Debt | $ 20,603,123 | $ 19,712,024 | |
Derivative, Notional Amount | $ 8,978,516 | 9,306,808 | |
Number Of Counterparties Subject to Ratings Trigger And Early Termination Provision | loan | 1 | ||
Interest Rate Swaps with CFC Rating Trigger and Treasury Lock [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | [1] | $ 222,000 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | 22,000 | ||
Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative Liability, Notional Amount | 6,417,898 | 6,607,808 | |
Derivative, Notional Amount | 8,978,516 | $ 9,303,808 | |
Interest Rate Swaps and Treasury Lock | |||
Derivative [Line Items] | |||
Derivative, Net Liability Position, Aggregate Fair Value | $ 344,000 | ||
Interest Rate Swaps and Treasury Lock | Derivatives | Counterparty Exposure Risk | |||
Derivative [Line Items] | |||
Concentration (percent) | 24.00% | 25.00% | |
Guaranteed Underwriter Program Notes Payable | |||
Derivative [Line Items] | |||
Long-term Debt | $ 6,269,000 | ||
[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. |
Equity - Equity Components (Det
Equity - Equity Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
Components of equity | |||||
Prior years cumulative derivative forward value and foreign currency adjustments | $ (1,079,739) | $ (348,965) | |||
Unrealized Gain (Loss) on Derivatives | 621,946 | (734,278) | $ (319,730) | ||
Total Cumulative Derivative Forward Value and Foreign Currency Adjustments | (461,162) | (1,079,739) | |||
Retained equity | 1,374,973 | 628,031 | |||
Accumulated other comprehensive loss | (25) | (1,910) | |||
Total CFC equity | 1,374,948 | 626,121 | |||
Noncontrolling interests | 24,931 | 22,701 | |||
Total equity | 1,399,879 | 648,822 | 1,303,882 | $ 1,505,853 | |
Membership fees | |||||
Components of equity | |||||
Total members' equity | 968 | 969 | |||
Education fund | |||||
Components of equity | |||||
Total members' equity | 2,157 | 2,224 | |||
Retained Earnings, Appropriated Membership Fees and Education Fund [Member] | |||||
Components of equity | |||||
Total members' equity | 3,125 | 3,193 | |||
Total equity | 3,125 | 3,193 | 2,982 | 2,945 | |
Members' capital reserve | |||||
Components of equity | |||||
Total members' equity | 923,970 | 894,066 | |||
Total equity | 909,749 | 807,320 | 759,097 | 687,785 | |
Allocated net income | |||||
Components of equity | |||||
Total members' equity | 909,749 | 807,320 | |||
Total equity | 923,970 | 894,066 | 860,578 | 811,493 | |
Unallocated net income (loss) | |||||
Components of equity | |||||
Total members' equity | (709) | 3,191 | |||
Unallocated Net Income (Loss) | |||||
Components of equity | |||||
Total equity | (461,871) | (1,076,548) | $ (345,775) | $ (36,434) | |
CFC | |||||
Components of equity | |||||
Unrealized Gain (Loss) on Derivatives | [1] | $ (618,577) | $ 730,774 | ||
[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 16—Business Segments” for the statements of operations for CFC. |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (1,910) | |||
Unrealized gains on cash flow hedges | 0 | $ 0 | $ 1,059 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | (2,297) | 1,322 | 488 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 2,297 | (1,322) | ||
Other comprehensive income | 1,885 | (1,763) | ||
Ending balance | (25) | (1,910) | ||
Total equity | 1,399,879 | 648,822 | 1,303,882 | $ 1,505,853 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (412) | (441) | ||
Derivatives Unrealized Gains | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Other comprehensive income | (412) | (441) | ||
Total equity | 1,718 | 2,130 | 2,571 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (412) | (441) | ||
Defined Benefit Plan Unrealized losses | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 2,297 | (1,322) | ||
Other comprehensive income | 2,297 | (1,322) | ||
Total equity | (1,743) | (4,040) | (2,718) | |
Unallocated Net Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total equity | (461,871) | (1,076,548) | (345,775) | (36,434) |
Accumulated other comprehensive income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total equity | $ (25) | $ (1,910) | $ (147) | $ 8,544 |
Equity - Additional Information
Equity - Additional Information (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||
Nov. 30, 2021USD ($) | Nov. 30, 2020USD ($) | May 31, 2022USD ($) | May 31, 2021USD ($)reserve | May 31, 2020USD ($) | May 31, 2019USD ($) | May 31, 2018USD ($) | |
Equity | |||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | $ 0 | $ 0 | $ 1,059 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (25) | (1,910) | |||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 2,297 | (1,322) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 1,885 | (1,763) | |||||
Stockholders' Equity, Period Increase (Decrease) | 751,000 | ||||||
Total equity | 1,399,879 | 648,822 | 1,303,882 | $ 1,505,853 | |||
Net income (loss) | 813,978 | (589,430) | (151,210) | ||||
Other Comprehensive Income (Loss), Net of Tax | 1,885 | (1,763) | 103 | ||||
Retirement/allocation of net earnings authorized | $ (61,911) | (64,755) | (50,415) | ||||
Minimum percentage of paid-in-capital required to be maintained under District of Columbia cooperative law | 50.00% | ||||||
Accumulated other comprehensive income expected to be reclassified into earnings over the next 12 months | $ 1,000 | ||||||
Multiemployer Plan, Employer Contribution, Cost | $ 4,000 | 5,000 | 5,000 | ||||
Retained equity | 1,374,973 | 628,031 | |||||
Cumulative effect from adoption of new accounting standard | |||||||
Equity | |||||||
Total equity | (3,900) | ||||||
Cumulative effect from adoption of new accounting standard | Accounting Standards Update 2016-13 | |||||||
Equity | |||||||
Retained equity | 4,000 | ||||||
Derivatives Unrealized Gains | |||||||
Equity | |||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (412) | (441) | |||||
Total equity | 1,718 | 2,130 | 2,571 | ||||
Noncontrolling Interest [Member] | |||||||
Equity | |||||||
Total equity | 24,931 | 22,701 | 27,147 | 31,520 | |||
Net income (loss) | 2,311 | (4,190) | (1,979) | ||||
Retirement/allocation of net earnings authorized | (2,054) | (1,933) | (2,908) | ||||
Defined Benefit Plan Unrealized losses | |||||||
Equity | |||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 2,297 | (1,322) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 2,297 | (1,322) | |||||
Total equity | (1,743) | (4,040) | (2,718) | ||||
Patronage Capital Allocated | |||||||
Equity | |||||||
Total equity | 923,970 | 894,066 | 860,578 | 811,493 | |||
Net income (loss) | 89,761 | 96,310 | 96,592 | ||||
Retirement/allocation of net earnings authorized | (59,857) | (62,822) | (47,507) | ||||
Members' capital reserve | |||||||
Equity | |||||||
Total equity | 909,749 | 807,320 | 759,097 | 687,785 | |||
Net income (loss) | 102,429 | 48,223 | 71,312 | ||||
Retained Earnings, Appropriated Membership Fees and Education Fund [Member] | |||||||
Equity | |||||||
Total equity | 3,125 | 3,193 | 2,982 | $ 2,945 | |||
Net income (loss) | $ 900 | 1,000 | $ 1,000 | ||||
CFC | |||||||
Equity | |||||||
General reserve required to be maintained as a percentage of membership fees collected | 50.00% | ||||||
Number of additional board-approved reserves | reserve | 1 | ||||||
CFC | Cooperative educational fund | Minimum | |||||||
Equity | |||||||
Minimum percentage of net earnings to be allocated to cooperative education fund as per bylaws of the entity | 0.25% | ||||||
CFC | Patronage Capital Allocated | |||||||
Equity | |||||||
Retirement/allocation of net earnings authorized | 60,000 | ||||||
Percentage of prior year's allocated patronage capital required to be retired | 50.00% | ||||||
Percentage of prior year's allocated patronage capital required to be held | 50.00% | ||||||
Period for which prior year's allocated patronage capital is required to be held | 25 years | ||||||
Retirement of allocated net earnings, percentage | 50.00% | 50.00% | |||||
Net Income Allocation | 96,000 | ||||||
CFC | Retained Earnings Allocation of Fifty Percent of Prior Year Patronage Capital Allocation [Member] | |||||||
Equity | |||||||
Retirement/allocation of net earnings authorized | $ (48,000) | ||||||
CFC | Retained earnings prior year allocation held for 25 years | |||||||
Equity | |||||||
Retirement/allocation of net earnings authorized | $ (12,000) | ||||||
CFC | Members' capital reserve | |||||||
Equity | |||||||
Retirement/allocation of net earnings authorized | (48,000) | ||||||
CFC | Retained Earnings, Appropriated Membership Fees and Education Fund [Member] | |||||||
Equity | |||||||
Retirement/allocation of net earnings authorized | $ (1,000) | ||||||
RTFC | |||||||
Equity | |||||||
Minimum percentage of paid-in-capital required to be maintained under District of Columbia cooperative law | 50.00% | ||||||
RTFC | Minimum | |||||||
Equity | |||||||
Percentage of retirement of allocated net earnings in cash | 20.00% | ||||||
RTFC | Cooperative educational fund | Minimum | |||||||
Equity | |||||||
Minimum percentage of net earnings to be allocated to cooperative education fund as per bylaws of the entity | 1.00% | ||||||
NCSC | |||||||
Equity | |||||||
Minimum percentage of paid-in-capital required to be maintained under District of Columbia cooperative law | 50.00% | ||||||
NCSC | Cooperative educational fund | Minimum | |||||||
Equity | |||||||
Minimum percentage of net earnings to be allocated to cooperative education fund as per bylaws of the entity | 0.25% | ||||||
Subsequent Event | |||||||
Equity | |||||||
Retirement/allocation of net earnings authorized | $ (58,000) | ||||||
Subsequent Event | Patronage Capital Allocated | |||||||
Equity | |||||||
Retirement/allocation of net earnings authorized | (45,000) | ||||||
Subsequent Event | Retained earnings prior year allocation held for 25 years | |||||||
Equity | |||||||
Retirement/allocation of net earnings authorized | $ (13,000) | ||||||
RTFC | |||||||
Equity | |||||||
Percentage of ownership by minority owners | 100.00% | ||||||
NCSC | |||||||
Equity | |||||||
Percentage of ownership by parent | 100.00% |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) | 12 Months Ended | ||||||
May 31, 2022USD ($) | May 31, 2021USD ($)salaryhour | May 31, 2020USD ($) | May 31, 2019USD ($) | Jan. 01, 2021 | Jan. 01, 2020 | Jan. 01, 2019 | |
Defined benefit multiemployer master pension plan | |||||||
Multiemployer plans requisite service period | 1 year | ||||||
Percentage of joint and surviving spouse annuity | 50.00% | ||||||
Annuity factor (as a percent) | 1.70% | ||||||
Number of highest base salaries | salary | 5 | ||||||
Liability, Defined Benefit Pension Plan | $ 5,000,000 | $ 7,000,000 | |||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 2,297,000 | (1,322,000) | |||||
Expected Reclassification from Accumulated Other Comprehensive Income over Next Twelve Months Net of Tax | $ 1,000,000 | ||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 1,000,000 | 1,000,000 | |||||
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 1,000,000 | 2,000,000 | $ 0 | ||||
Contributions made by CFC | 4,000,000 | 5,000,000 | 5,000,000 | ||||
Limit on the compensation to be used in the calculation of pension benefits | 290,000 | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | $ (2,297,000) | 1,322,000 | 488,000 | ||||
401(k) defined contribution savings program | |||||||
Number of consecutive months considered for eligible period of service | 12 months | ||||||
Maximum matching contributions by CFC as a percentage of employee's salary | 2.00% | ||||||
Minimum employee contribution (as a percent) | 2.00% | ||||||
Contributions made by CFC | $ 1,000,000 | 1,000,000 | $ 1,000,000 | ||||
Accumulated other comprehensive loss | (25,000) | (1,910,000) | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1,000,000 | $ 2,000,000 | |||||
Minimum | |||||||
Defined benefit multiemployer master pension plan | |||||||
Funded status, more than 80% (as a percent) | 80.00% | 80.00% | 80.00% | ||||
401(k) defined contribution savings program | |||||||
Defined Contribution Plan, Requisite Service Period | hour | 1,000 | ||||||
Maximum | |||||||
Defined benefit multiemployer master pension plan | |||||||
Contributions made by CFC as a percentage of total contributions by all participating employers | 5.00% | 5.00% | 5.00% | ||||
Pension Restoration Plan | |||||||
Defined benefit multiemployer master pension plan | |||||||
Defined Contribution Plan, Number of Employees | 2 | ||||||
Executive Benefit Restoration Plan | |||||||
Defined benefit multiemployer master pension plan | |||||||
Pension expense | $ 2,000,000 | $ 2,000,000 | $ 1,000,000 | ||||
Expected Reclassification from Accumulated Other Comprehensive Income over Next Twelve Months Net of Tax | $ 1,000,000 | ||||||
Defined Benefit Plan, Number of Employees | 5 | 7 | |||||
401(k) defined contribution savings program | |||||||
Accumulated other comprehensive loss | $ 2,000,000 | $ 4,000,000 | |||||
Defined Benefit Plan Unrealized losses | |||||||
Defined benefit multiemployer master pension plan | |||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 2,297,000 | $ (1,322,000) |
Guarantees - Guarantees Outstan
Guarantees - Guarantees Outstanding (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | |
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | $ 689,080 | $ 820,786 | |
Long-term tax-exempt bonds | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | [1] | 145,025 | 263,875 |
Letters of credit | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | [2] | 389,735 | 413,839 |
Other guarantees | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 154,320 | 143,072 | |
CFC | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 672,530 | 810,787 | |
CFC | Distribution | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 251,023 | 266,301 | |
CFC | Power supply | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 415,984 | 538,532 | |
CFC | Statewide and associate | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 5,523 | 5,954 | |
NCSC | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 0 | 0 | |
RTFC | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 16,550 | 9,999 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | 16,550 | 9,999 | |
Variable Interest Entity, Primary Beneficiary [Member] | Statewide and associate | |||
Guarantor Obligations [Line Items] | |||
Guarantor Obligations, Current Carrying Value | $ 3,000 | $ 3,000 | |
[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. |
Guarantees - Guarantees Maturit
Guarantees - Guarantees Maturities (Details) - Guarantee Obligations $ in Thousands | May 31, 2021USD ($) |
Guarantor Obligations [Line Items] | |
2022 | $ 219,647 |
2023 | 26,825 |
2024 | 52,750 |
2025 | 90,964 |
2026 | 157,362 |
Thereafter | 141,532 |
Total | $ 689,080 |
Guarantees - Additional Informa
Guarantees - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
Guarantor Obligations [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | $ 689,080 | $ 820,786 | ||
Guarantee Obligations Unsecured | $ 415,000 | $ 426,000 | ||
Guarantee Obligations Unsecured Commitment as Percentage of Total Commitment | 60.00% | 52.00% | ||
Guarantee Liability Recorded | $ 10,000 | $ 11,000 | ||
Guaranty Liabilities Contingent | 1,000 | 1,000 | ||
Guaranty Liabilities | 9,000 | 10,000 | ||
Variable rate | ||||
Guarantor Obligations [Line Items] | ||||
Guarantee Obligations Liquidity Provided to Member Carrying Value | 145,000 | |||
Other guarantees | ||||
Guarantor Obligations [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | 154,320 | 143,072 | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 154,000 | 143,000 | ||
Financial Standby Letter of Credit | Adjustable and Floating Rate Tax Exempt Bonds | ||||
Guarantor Obligations [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | 0 | 0 | $ 0 | |
Performance Guarantee | Master Letter of Credit | ||||
Guarantor Obligations [Line Items] | ||||
Letter of Credit Facility Maximum Additional Amount Potentially Required to be Issued | 64,000 | |||
Financial guarantees | Variable rate | ||||
Guarantor Obligations [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | 145,000 | 244,000 | ||
Letters of credit | ||||
Guarantor Obligations [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | [1] | 389,735 | 413,839 | |
Guarantee Obligations Secured | 104,000 | 106,000 | ||
Long-term tax-exempt bonds | ||||
Guarantor Obligations [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | [2] | 145,025 | 263,875 | |
Guarantee Type, Other Secured [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantor Obligations, Maximum Exposure, Undiscounted | 25,000 | 25,000 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | 16,550 | 9,999 | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 25,000 | |||
Statewide and Associate [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Guarantor Obligations [Line Items] | ||||
Guarantor Obligations, Current Carrying Value | $ 3,000 | $ 3,000 | ||
[1] | Reflects our maximum potential exposure for letters of credit. | |||
[2] | Represents the outstanding principal amount of long-term fixed-rate and variable-rate guaranteed bonds. |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Financial Instruments (Details) - USD ($) | May 31, 2021 | May 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 295,063,000 | $ 671,372,000 | |
Cash and Cash Equivalents, Fair Value Disclosure | 295,063,000 | 671,372,000 | |
Restricted cash | [1] | 8,298,000 | 8,647,000 |
Equity Securities, FV-NI | 35,102,000 | 60,735,000 | |
Equity securities, at fair value | 35,102,000 | 60,735,000 | |
Debt Securities, Held-to-maturity, Fair Value | 576,175,000 | 309,400,000 | |
Deferred Compensation Plan Assets | 7,222,000 | 5,496,000 | |
Loans to members, net | 28,341,429,000 | 26,649,255,000 | |
Loans Receivable, Fair Value Disclosure | 29,967,692,000 | 29,252,065,000 | |
Accrued interest receivable | 107,856,000 | 117,138,000 | |
Debt service reserve restricted funds | 14,591,000 | ||
Derivative assets | 121,259,000 | 173,195,000 | |
Financial Assets | 29,492,404,000 | 28,009,829,000 | |
Short-term Debt | 4,582,096,000 | 3,961,985,000 | |
Short-term Debt, Fair Value | 4,582,329,000 | 3,963,164,000 | |
Long-term Debt | 20,603,123,000 | 19,712,024,000 | |
Long-term Debt, Fair Value | 21,799,736,000 | 21,826,337,000 | |
Accrued interest payable | 123,672,000 | 139,619,000 | |
Guaranty Liabilities Contingent and Noncontingent | 10,041,000 | 10,937,000 | |
Guarantees, Fair Value Disclosure | 10,841,000 | 11,948,000 | |
Derivative liabilities | 584,989,000 | 1,258,459,000 | |
Subordinated deferrable debt | 986,315,000 | 986,119,000 | |
Subordinated Debt Obligations, Fair Value Disclosure | 1,062,748,000 | 1,030,108,000 | |
Members Subordinated Certificates, Total | 1,254,660,000 | 1,339,618,000 | |
Members Subordinated Certificates, At Fair Value | 1,254,660,000 | 1,339,618,000 | |
Financial Liabilities Fair Value Disclosure | 29,418,975,000 | 29,569,253,000 | |
Financial Liabilities | 28,144,896,000 | 27,408,761,000 | |
Assets, Fair Value Disclosure | 31,118,667,000 | 30,612,639,000 | |
Debt Securities, Held-to-maturity, Fair Value | 309,400,000 | ||
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 295,063,000 | 671,372,000 | |
Restricted cash | 8,298,000 | 8,647,000 | |
Equity securities, at fair value | 35,102,000 | 60,735,000 | |
Debt Securities, Held-to-maturity, Fair Value | 0 | ||
Deferred Compensation Plan Assets | 7,222,000 | 5,496,000 | |
Loans Receivable, Fair Value Disclosure | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Debt service reserve restricted funds | 14,591,000 | ||
Derivative assets | 0 | 0 | |
Short-term Debt, Fair Value | 0 | 0 | |
Long-term Debt, Fair Value | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Guarantees, Fair Value Disclosure | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Subordinated Debt Obligations, Fair Value Disclosure | 265,200,000 | 0 | |
Members Subordinated Certificates, At Fair Value | 0 | 0 | |
Financial Liabilities Fair Value Disclosure | 265,200,000 | 0 | |
Assets, Fair Value Disclosure | 345,685,000 | 760,841,000 | |
Debt Securities, Held-to-maturity, Fair Value | 0 | ||
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | |
Restricted cash | 0 | 0 | |
Equity securities, at fair value | 0 | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 576,175,000 | ||
Deferred Compensation Plan Assets | 0 | 0 | |
Loans Receivable, Fair Value Disclosure | 0 | 0 | |
Accrued interest receivable | 107,856,000 | 117,138,000 | |
Debt service reserve restricted funds | 0 | ||
Derivative assets | 121,259,000 | 173,195,000 | |
Short-term Debt, Fair Value | 4,582,329,000 | 3,713,164,000 | |
Long-term Debt, Fair Value | 12,476,073,000 | 11,981,580,000 | |
Accrued interest payable | 123,672,000 | 139,619,000 | |
Guarantees, Fair Value Disclosure | 0 | 0 | |
Derivative liabilities | 584,989,000 | 1,258,459,000 | |
Subordinated Debt Obligations, Fair Value Disclosure | 797,548,000 | 1,030,108,000 | |
Members Subordinated Certificates, At Fair Value | 0 | 0 | |
Financial Liabilities Fair Value Disclosure | 18,564,611,000 | 18,122,930,000 | |
Assets, Fair Value Disclosure | 805,290,000 | 599,733,000 | |
Debt Securities, Held-to-maturity, Fair Value | 309,400,000 | ||
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | |
Restricted cash | 0 | 0 | |
Equity securities, at fair value | 0 | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 0 | ||
Deferred Compensation Plan Assets | 0 | 0 | |
Loans Receivable, Fair Value Disclosure | 29,967,692,000 | 29,252,065,000 | |
Accrued interest receivable | 0 | 0 | |
Debt service reserve restricted funds | 0 | ||
Derivative assets | 0 | 0 | |
Short-term Debt, Fair Value | 0 | 250,000,000 | |
Long-term Debt, Fair Value | 9,323,663,000 | 9,844,757,000 | |
Accrued interest payable | 0 | 0 | |
Guarantees, Fair Value Disclosure | 10,841,000 | 11,948,000 | |
Derivative liabilities | 0 | 0 | |
Subordinated Debt Obligations, Fair Value Disclosure | 0 | 0 | |
Members Subordinated Certificates, At Fair Value | 1,254,660,000 | 1,339,618,000 | |
Financial Liabilities Fair Value Disclosure | 10,589,164,000 | 11,446,323,000 | |
Assets, Fair Value Disclosure | 29,967,692,000 | 29,252,065,000 | |
Debt Securities, Held-to-maturity, Fair Value | 0 | ||
Recurring basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities, FV-NI | 35,102,000 | 60,735,000 | |
Debt Securities, Held-to-maturity, Fair Value | 576,175,000 | 309,400,000 | |
Deferred Compensation Plan Assets | 7,222,000 | 5,496,000 | |
Derivative assets | 121,259,000 | 173,195,000 | |
Derivative liabilities | 584,989,000 | 1,258,459,000 | |
Recurring basis | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities, FV-NI | 35,102,000 | 60,735,000 | |
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 | |
Deferred Compensation Plan Assets | 7,222,000 | 5,496,000 | |
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Recurring basis | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities, FV-NI | 0 | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 576,175,000 | 309,400,000 | |
Deferred Compensation Plan Assets | 0 | 0 | |
Derivative assets | 121,259,000 | 173,195,000 | |
Derivative liabilities | 584,989,000 | 1,258,459,000 | |
Recurring basis | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial Liabilities Fair Value Disclosure | $ 0 | ||
Assets, Fair Value Disclosure | $ 0 | ||
[1] | (1) Restricted cash consists primarily of member funds held in escrow for certain specifically designed cooperative programs. |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | $ 576,175 | $ 309,400 |
Deferred Compensation Plan Assets | 7,222 | 5,496 |
Derivative assets | 121,259 | 173,195 |
Derivative liabilities | 584,989 | 1,258,459 |
Equity Securities, FV-NI | 35,102 | 60,735 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 0 | |
Deferred Compensation Plan Assets | 7,222 | 5,496 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 576,175 | |
Deferred Compensation Plan Assets | 0 | 0 |
Derivative assets | 121,259 | 173,195 |
Derivative liabilities | 584,989 | 1,258,459 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 576,175 | 309,400 |
Deferred Compensation Plan Assets | 7,222 | 5,496 |
Derivative assets | 121,259 | 173,195 |
Derivative liabilities | 584,989 | 1,258,459 |
Equity Securities, FV-NI | 35,102 | 60,735 |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 0 | 0 |
Deferred Compensation Plan Assets | 7,222 | 5,496 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Equity Securities, FV-NI | 35,102 | 60,735 |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities trading, at fair value ($210,894 pledged as collateral) | 576,175 | 309,400 |
Deferred Compensation Plan Assets | 0 | 0 |
Derivative assets | 121,259 | 173,195 |
Derivative liabilities | 584,989 | 1,258,459 |
Equity Securities, FV-NI | $ 0 | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) | 12 Months Ended | ||
May 31, 2021USD ($)memberborrower | May 31, 2020USD ($)member | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Held-to-maturity, Fair Value | $ 309,400,000 | ||
Impaired Financing Receivable, Recorded Investment | 178,556,000 | ||
Assets, Fair Value Disclosure | $ 31,118,667,000 | 30,612,639,000 | |
Financial Liabilities Fair Value Disclosure | $ 29,418,975,000 | 29,569,253,000 | |
Fair Value, Measurement With Unobservable Inputs Reconciliation, Nonrecurring Basis, Asset, Increase (Decrease) | $ 0 | ||
Number of Active Borrowers | member | 892 | 889 | |
Total loans outstanding | $ 28,415,107,000 | $ 26,690,854,000 | [1] |
Loans Receivable, Fair Value Disclosure | 29,967,692,000 | 29,252,065,000 | |
Non-performing loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total loans outstanding | 237,497,000 | 167,708,000 | |
RTFC | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 5,092,000 | ||
Total loans outstanding | $ 420,383,000 | 385,335,000 | [1] |
RTFC | Non-performing loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Number of Active Borrowers | borrower | 2 | ||
Total loans outstanding | $ 9,185,000 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Held-to-maturity, Fair Value | 309,400,000 | ||
Assets, Fair Value Disclosure | 805,290,000 | 599,733,000 | |
Financial Liabilities Fair Value Disclosure | 18,564,611,000 | 18,122,930,000 | |
Loans Receivable, Fair Value Disclosure | 0 | 0 | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Securities, Held-to-maturity, Fair Value | 0 | ||
Assets, Fair Value Disclosure | 29,967,692,000 | 29,252,065,000 | |
Financial Liabilities Fair Value Disclosure | 10,589,164,000 | 11,446,323,000 | |
Loans Receivable, Fair Value Disclosure | 29,967,692,000 | 29,252,065,000 | |
Level 3 | Recurring basis | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets, Fair Value Disclosure | 0 | ||
Financial Liabilities Fair Value Disclosure | $ 0 | ||
Level 3 | Fair Value, Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value, Measurement With Unobservable Inputs Reconciliation, Nonrecurring Basis, Asset, Increase (Decrease) | 3,000,000 | ||
Level 3 | Fair Value, Nonrecurring | RTFC | Non-performing loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans Receivable, Fair Value Disclosure | $ 6,000,000 | ||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated Assets and Liabilities of VIEs included in CFC's Consolidated Financial Statements (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | |
Variable Interest Entity [Line Items] | |||
Loans to members | $ 28,426,961 | $ 26,702,380 | [1] |
Other assets | 24,102 | 37,627 | |
Total assets | 29,638,363 | 28,157,605 | |
Long-term Debt | 20,603,123 | 19,712,024 | |
Other liabilities | 52,431 | 51,656 | |
Total liabilities | $ 28,238,484 | $ 27,508,783 | |
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Variable Interest Entities - In
Variable Interest Entities - Information on CFCs Credit Commitments to NCSC and RTFC (Details) - USD ($) $ in Thousands | May 31, 2021 | May 31, 2020 | |||
Variable Interest Entity [Line Items] | |||||
Guarantor Obligations, Current Carrying Value | $ 689,080 | $ 820,786 | |||
Loans and Leases Receivable, Gross | 28,426,961 | 26,702,380 | [1] | ||
Liabilities | 28,238,484 | 27,508,783 | |||
Assets | 29,638,363 | 28,157,605 | |||
Other Liabilities | 52,431 | 51,656 | |||
Long-term Debt | 20,603,123 | 19,712,024 | |||
Consolidated variable interest entities | |||||
Variable Interest Entity [Line Items] | |||||
Total CFC credit commitments | 5,500,000 | 5,500,000 | |||
Other Borrowings | 1,107,185 | [2] | 1,062,103 | ||
Guarantor Obligations, Current Carrying Value | 16,550 | 9,999 | |||
Other credit enhancements | 8,386 | 11,755 | |||
Total credit enhancements(2) | [3] | 24,936 | 21,754 | ||
Total outstanding commitments | 1,132,121 | 1,083,857 | |||
CFC credit commitments available(3) | 4,367,879 | 4,416,143 | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | 25,000 | ||||
Loans and Leases Receivable, Gross | 1,127,251 | 1,083,197 | |||
Liabilities | 30,187 | 38,803 | |||
Assets | $ 1,138,594 | $ 1,094,549 | |||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. | ||||
[2] | Intercompany borrowings payable by NCSC and RTFC to CFC are eliminated in consolidation. | ||||
[3] | Excludes interest due on these instruments. (3) Represents total CFC credit commitments less outstanding commitments as of each period-end. |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) $ in Thousands | May 31, 2021USD ($)votedirector | May 31, 2020USD ($) | |
Variable Interest Entity [Line Items] | |||
Prepaid Expense and Other Assets | $ 24,102 | $ 37,627 | |
Loans and Leases Receivable, Gross | 28,426,961 | 26,702,380 | [1] |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Prepaid Expense and Other Assets | 11,343 | 11,352 | |
Loans and Leases Receivable, Gross | $ 1,127,251 | $ 1,083,197 | |
RTFC | Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of Votes Per Member for Election of Directors | vote | 1 | ||
NCSC | Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of Directors for Whom Nomination Process is Controlled | director | 1 | ||
Number of Votes Per Member for Election of Directors | vote | 1 | ||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Business Segments - Segment Res
Business Segments - Segment Results and Total Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
Statement of operations: | |||||
Interest income | $ 1,116,601 | $ 1,151,286 | $ 1,135,670 | ||
Interest expense | (702,063) | (821,089) | (836,209) | ||
Net interest income | 414,538 | 330,197 | 299,461 | ||
Provision (benefit) for loan losses | (28,507) | (35,590) | 1,266 | ||
Net interest income after provision for loan losses | 386,031 | 294,607 | 300,727 | ||
Non-interest income: | |||||
Fee and other income | 18,929 | 22,961 | 15,355 | ||
Gain (Loss) on Sale of Derivatives | 115,645 | (55,873) | (43,611) | ||
Unrealized Gain (Loss) on Derivatives | 621,946 | (734,278) | (319,730) | ||
Derivative gains (losses) | 506,301 | (790,151) | (363,341) | ||
Investment securities gains (losses) | 1,495 | 9,431 | (1,799) | ||
Total non-interest income | 526,725 | (757,759) | (349,785) | ||
Non-interest expense: | |||||
General and administrative expenses | (94,705) | (101,167) | (93,166) | ||
Losses on early extinguishment of debt | (1,456) | (683) | (7,100) | ||
Other non-interest expense | (1,619) | (25,588) | (1,675) | ||
Total non-interest expense | (97,780) | (127,438) | (101,941) | ||
Income (loss) prior to income taxes | 814,976 | (590,590) | (150,999) | ||
Income tax benefit (provision) | (998) | 1,160 | (211) | ||
Net income (loss) | $ 813,978 | (589,430) | (151,210) | ||
Document Period End Date | May 31, 2021 | ||||
Assets: | |||||
Total loans outstanding | $ 28,415,107 | 26,690,854 | |||
Deferred origination costs | 11,854 | 11,526 | [1] | ||
Loans to members | 28,426,961 | 26,702,380 | |||
Loans and Leases Receivable, Allowance | (53,125) | ||||
Loans and Leases Receivable Commercial, Net of Allowance | 28,341,429 | 26,649,255 | |||
Other assets | 1,296,934 | 1,508,350 | |||
Total assets | 29,638,363 | 28,157,605 | |||
Total loans outstanding | 28,415,107 | 26,690,854 | [1] | ||
Loans and Leases Receivable, Gross | 28,426,961 | 26,702,380 | [1] | ||
Less: Allowance for credit losses | (85,532) | (53,125) | (17,535) | $ (18,801) | |
Loans to members, net | 28,341,429 | 26,649,255 | |||
Loans | 1,116,601 | 1,151,286 | 1,135,670 | ||
Interest rate swaps | |||||
Statement of operations: | |||||
Interest expense | (55,873) | (43,611) | |||
Elimination | |||||
Statement of operations: | |||||
Interest income | (35,574) | ||||
Interest expense | 35,574 | 39,218 | 42,940 | ||
Net interest income | 0 | 0 | 0 | ||
Provision (benefit) for loan losses | 0 | 0 | 0 | ||
Net interest income after provision for loan losses | 0 | 0 | 0 | ||
Non-interest income: | |||||
Fee and other income | (7,603) | (14,872) | (7,815) | ||
Gain (Loss) on Sale of Derivatives | 0 | 0 | 0 | ||
Unrealized Gain (Loss) on Derivatives | 0 | 0 | 0 | ||
Derivative gains (losses) | 0 | 0 | 0 | ||
Investment securities gains (losses) | 0 | 0 | 0 | ||
Total non-interest income | (7,603) | (14,872) | (7,815) | ||
Non-interest expense: | |||||
General and administrative expenses | 6,229 | 6,581 | 6,374 | ||
Losses on early extinguishment of debt | 0 | 0 | 0 | ||
Other non-interest expense | 1,374 | 8,291 | 1,441 | ||
Total non-interest expense | 7,603 | 14,872 | 7,815 | ||
Income (loss) prior to income taxes | 0 | 0 | 0 | ||
Income tax benefit (provision) | 0 | 0 | 0 | ||
Net income (loss) | 0 | 0 | 0 | ||
Assets: | |||||
Total loans outstanding | (1,107,184) | (1,062,102) | |||
Deferred origination costs | 0 | 0 | |||
Loans to members | (1,107,184) | (1,062,102) | |||
Loans and Leases Receivable, Allowance | 0 | ||||
Loans and Leases Receivable Commercial, Net of Allowance | (1,107,184) | (1,062,102) | |||
Other assets | (88,955) | (95,173) | |||
Total assets | (1,196,139) | (1,157,275) | |||
Less: Allowance for credit losses | 0 | ||||
Loans | (39,218) | (42,940) | |||
CFC | Operating Segments | |||||
Statement of operations: | |||||
Interest income | 1,108,543 | ||||
Interest expense | (702,063) | (820,841) | (835,491) | ||
Net interest income | 406,480 | 322,556 | 291,378 | ||
Provision (benefit) for loan losses | (28,507) | 35,590 | (1,266) | ||
Net interest income after provision for loan losses | 377,973 | 286,966 | 292,644 | ||
Non-interest income: | |||||
Fee and other income | 23,732 | 28,309 | 20,515 | ||
Gain (Loss) on Sale of Derivatives | (113,951) | (54,707) | (42,618) | ||
Unrealized Gain (Loss) on Derivatives | 618,578 | (730,774) | (318,135) | ||
Derivative gains (losses) | 504,627 | (785,481) | (360,753) | ||
Investment securities gains (losses) | 1,495 | 9,431 | (1,799) | ||
Total non-interest income | 529,854 | (747,741) | (342,037) | ||
Non-interest expense: | |||||
General and administrative expenses | (93,085) | (98,808) | (91,063) | ||
Losses on early extinguishment of debt | (1,456) | (69) | (7,100) | ||
Other non-interest expense | (1,619) | (25,588) | (1,675) | ||
Total non-interest expense | (96,160) | (124,465) | (99,838) | ||
Income (loss) prior to income taxes | 811,667 | (585,240) | (149,231) | ||
Income tax benefit (provision) | 0 | 0 | 0 | ||
Net income (loss) | 811,667 | (585,240) | (149,231) | ||
Assets: | |||||
Total loans outstanding | 28,395,040 | 26,669,759 | |||
Deferred origination costs | 11,854 | 11,526 | |||
Loans to members | 28,406,894 | 26,681,285 | |||
Loans and Leases Receivable, Allowance | (85,532) | (53,125) | |||
Loans and Leases Receivable Commercial, Net of Allowance | 28,321,362 | 26,628,160 | |||
Other assets | 1,285,591 | 1,496,998 | |||
Total assets | 29,606,953 | 28,125,158 | |||
Loans | 1,143,397 | 1,126,869 | |||
National Cooperative Services Corporation And Rural Telephone Finance Cooperative [Member] | Operating Segments | |||||
Statement of operations: | |||||
Interest income | 43,632 | ||||
Interest expense | (35,574) | (39,466) | (43,658) | ||
Net interest income | 8,058 | 7,641 | 8,083 | ||
Provision (benefit) for loan losses | 0 | 0 | 0 | ||
Net interest income after provision for loan losses | 8,058 | 7,641 | 8,083 | ||
Non-interest income: | |||||
Fee and other income | 2,800 | 9,524 | 2,655 | ||
Gain (Loss) on Sale of Derivatives | (1,694) | (1,166) | (993) | ||
Unrealized Gain (Loss) on Derivatives | (3,368) | (3,504) | (1,595) | ||
Derivative gains (losses) | 1,674 | (4,670) | (2,588) | ||
Investment securities gains (losses) | 0 | 0 | 0 | ||
Total non-interest income | 4,474 | 4,854 | 67 | ||
Non-interest expense: | |||||
General and administrative expenses | (7,849) | (8,940) | (8,477) | ||
Losses on early extinguishment of debt | 0 | (614) | 0 | ||
Other non-interest expense | (1,374) | (8,291) | (1,441) | ||
Total non-interest expense | (9,223) | (17,845) | (9,918) | ||
Income (loss) prior to income taxes | 3,309 | (5,350) | (1,768) | ||
Income tax benefit (provision) | (998) | 1,160 | (211) | ||
Net income (loss) | 2,311 | (4,190) | (1,979) | ||
Assets: | |||||
Total loans outstanding | 1,127,251 | 1,083,197 | |||
Deferred origination costs | 0 | 0 | |||
Loans to members | 1,127,251 | 1,083,197 | |||
Loans and Leases Receivable, Allowance | 0 | ||||
Loans and Leases Receivable Commercial, Net of Allowance | 1,127,251 | 1,083,197 | |||
Other assets | 100,298 | 106,525 | |||
Total assets | 1,227,549 | 1,189,722 | |||
Less: Allowance for credit losses | $ 0 | ||||
Loans | $ 47,107 | $ 51,741 | |||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. (2) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. |
Business Segments - Additional
Business Segments - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
May 31, 2021USD ($)operating_segment | May 31, 2020USD ($) | May 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Debt and Equity Securities, Gain (Loss) | $ | $ 1,495 | $ 9,431 | $ (1,799) |
Number of Operating Segments | operating_segment | 3 |