Cover Page
Cover Page | 12 Months Ended |
May 31, 2022 USD ($) shares | |
Cover [Abstract] | |
Document Type | 10-K |
Document Annual Report | true |
Current Fiscal Year End Date | --05-31 |
Document Period End Date | May 31, 2022 |
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 | 2022 |
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% issuance 2019 | |
Document Information [Line Items] | |
Title of 12(b) Security | 5.50% Subordinated Notes, due 2064 |
Trading Symbol | NRUC |
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
May 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | McLean, Virginia |
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2020 | |
Income Statement [Abstract] | |||
Interest income | $ 1,141,243 | $ 1,116,601 | $ 1,151,286 |
Interest expense | (705,534) | (702,063) | (821,089) |
Net interest income | 435,709 | 414,538 | 330,197 |
Benefit (provision) for credit losses | 17,972 | (28,507) | (35,590) |
Net interest income after benefit (provision) for credit losses | 453,681 | 386,031 | 294,607 |
Non-interest income: | |||
Fee and other income | 17,193 | 18,929 | 22,961 |
Derivative gains (losses) | 456,482 | 506,301 | (790,151) |
Investment securities gains (losses) | (30,179) | 1,495 | 9,431 |
Total non-interest income | 443,496 | 526,725 | (757,759) |
Non-interest expense: | |||
Salaries and employee benefits | (51,863) | (55,258) | (54,522) |
Other general and administrative expenses | (43,323) | (39,447) | (46,645) |
Losses on early extinguishment of debt | (754) | (1,456) | (683) |
Other non-interest expense | (1,552) | (1,619) | (25,588) |
Total non-interest expense | (97,492) | (97,780) | (127,438) |
Income (loss) before income taxes | 799,685 | 814,976 | (590,590) |
Income tax benefit (provision) | (1,148) | (998) | 1,160 |
Net income (loss) | 798,537 | 813,978 | (589,430) |
Less: Net (income) loss attributable to noncontrolling interests | (2,692) | (2,311) | 4,190 |
Net income (loss) attributable to CFC | $ 795,845 | $ 811,667 | $ (585,240) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 798,537 | $ 813,978 | $ (589,430) |
Other comprehensive income (loss): | |||
Changes in unrealized gains on derivative cash flow hedges | 4,028 | 0 | 0 |
Reclassification to earnings of realized gains on derivatives | (623) | (412) | (441) |
Defined benefit plan adjustments | (1,122) | 2,297 | (1,322) |
Other comprehensive income (loss) | 2,283 | 1,885 | (1,763) |
Total comprehensive income (loss) | 800,820 | 815,863 | (591,193) |
Less: Total comprehensive (income) loss attributable to noncontrolling interests | (2,692) | (2,311) | 4,190 |
Total comprehensive income (loss) attributable to CFC | $ 798,128 | $ 813,552 | $ (587,003) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 153,551 | $ 295,063 |
Restricted cash | 7,563 | 8,298 |
Total cash, cash equivalents and restricted cash | 161,114 | 303,361 |
Investment securities: | ||
Debt securities trading, at fair value ($— and $210,894 pledged as collateral as of May 31, 2022 and 2021, respectively) | 566,146 | 576,175 |
Equity securities, at fair value | 33,758 | 35,102 |
Total investment securities, at fair value | 599,904 | 611,277 |
Loans to members | 30,063,386 | 28,426,961 |
Less: Allowance for credit losses | (67,560) | (85,532) |
Loans to members, net | 29,995,826 | 28,341,429 |
Accrued interest receivable | 111,418 | 107,856 |
Other receivables | 35,431 | 37,197 |
Fixed assets, net | 101,762 | 91,882 |
Derivative assets | 222,042 | 121,259 |
Other assets | 23,885 | 24,102 |
Total assets | 31,251,382 | 29,638,363 |
Liabilities: | ||
Accrued interest payable | 131,950 | 123,672 |
Debt outstanding: | ||
Short-term borrowings | 4,981,167 | 4,582,096 |
Long-term debt | 21,545,440 | 20,603,123 |
Subordinated deferrable debt | 986,518 | 986,315 |
Members’ subordinated certificates: | ||
Membership subordinated certificates | 628,603 | 628,594 |
Loan and guarantee subordinated certificates | 365,388 | 386,896 |
Member capital securities | 240,170 | 239,170 |
Total members’ subordinated certificates | 1,234,161 | 1,254,660 |
Total debt outstanding | 28,747,286 | 27,426,194 |
Deferred income | 44,332 | 51,198 |
Derivative liabilities | 128,282 | 584,989 |
Other liabilities | 57,563 | 52,431 |
Total liabilities | 29,109,413 | 28,238,484 |
CFC equity: | ||
Retained equity | 2,112,315 | 1,374,973 |
Accumulated other comprehensive income (loss) | 2,258 | (25) |
Total CFC equity | 2,114,573 | 1,374,948 |
Noncontrolling interests | 27,396 | 24,931 |
Total equity | 2,141,969 | 1,399,879 |
Total liabilities and equity | $ 31,251,382 | $ 29,638,363 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Statement of Financial Position [Abstract] | ||
Collateral pledged | $ 0 | $ 210,894 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Adjusted Balance | Membership Fees and Educational Fund | Membership Fees and Educational Fund Adjusted Balance | Patronage Capital Allocated | Patronage Capital Allocated Adjusted Balance | Members’ Capital Reserve | Members’ Capital Reserve Adjusted Balance | Unallocated Net Income (Loss) | Unallocated Net Income (Loss) Cumulative Effect, Period of Adoption, Adjustment | Unallocated Net Income (Loss) Adjusted Balance | CFC Retained Equity | CFC Retained Equity Cumulative Effect, Period of Adoption, Adjustment | CFC Retained Equity Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) Adjusted Balance | Total CFC Equity | Total CFC Equity Cumulative Effect, Period of Adoption, Adjustment | Total CFC Equity Adjusted Balance | Non-controlling Interests | Non-controlling Interests Adjusted Balance |
Beginning balance at May. 31, 2019 | $ 1,303,882 | $ 2,982 | $ 860,578 | $ 759,097 | $ (345,775) | $ 1,276,882 | $ (147) | $ 1,276,735 | $ 27,147 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income (loss) | (589,430) | 1,000 | 96,310 | 48,223 | (730,773) | (585,240) | (585,240) | (4,190) | |||||||||||||||
Other comprehensive income (loss) | (1,763) | (1,763) | (1,763) | ||||||||||||||||||||
Patronage capital retirement | (64,755) | (62,822) | (62,822) | (62,822) | (1,933) | ||||||||||||||||||
Other | 888 | (789) | (789) | (789) | 1,677 | ||||||||||||||||||
Ending balance at May. 31, 2020 | 648,822 | $ (3,900) | $ 644,922 | 3,193 | $ 3,193 | 894,066 | $ 894,066 | 807,320 | $ 807,320 | (1,076,548) | $ (3,900) | $ (1,080,448) | 628,031 | $ (3,900) | $ 624,131 | (1,910) | $ 0 | $ (1,910) | 626,121 | $ (3,900) | $ 622,221 | 22,701 | $ 22,701 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income (loss) | 813,978 | 900 | 89,761 | 102,429 | 618,577 | 811,667 | 811,667 | 2,311 | |||||||||||||||
Other comprehensive income (loss) | 1,885 | 1,885 | 1,885 | ||||||||||||||||||||
Patronage capital retirement | (61,911) | (59,857) | (59,857) | (59,857) | (2,054) | ||||||||||||||||||
Other | 1,005 | (968) | (968) | (968) | 1,973 | ||||||||||||||||||
Ending balance at May. 31, 2021 | 1,399,879 | 3,125 | 923,970 | 909,749 | (461,871) | 1,374,973 | (25) | 1,374,948 | 24,931 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income (loss) | 798,537 | 1,200 | 88,583 | 152,537 | 553,525 | 795,845 | 795,845 | 2,692 | |||||||||||||||
Other comprehensive income (loss) | 2,283 | 2,283 | 2,283 | ||||||||||||||||||||
Patronage capital retirement | (59,979) | (57,565) | (57,565) | (57,565) | (2,414) | ||||||||||||||||||
Other | 1,249 | (938) | (938) | (938) | 2,187 | ||||||||||||||||||
Ending balance at May. 31, 2022 | $ 2,141,969 | $ 3,387 | $ 954,988 | $ 1,062,286 | $ 91,654 | $ 2,112,315 | $ 2,258 | $ 2,114,573 | $ 27,396 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2020 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 798,537 | $ 813,978 | $ (589,430) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred loan fees | (8,211) | (9,390) | (9,309) |
Amortization of debt issuance costs and discount | 27,417 | 26,967 | 24,963 |
Amortization of guarantee fee | 18,763 | 18,687 | 16,927 |
Depreciation and amortization | 7,553 | 7,959 | 9,238 |
Provision (benefit) for credit losses | (17,972) | 28,507 | 35,590 |
Loss on early extinguishment of debt | 754 | 1,456 | 683 |
Fixed assets impairment | 0 | 0 | 31,284 |
Gain on sale of land | 0 | 0 | (7,713) |
Unrealized (gains) losses on equity and debt securities | 28,742 | (1,015) | (5,975) |
Derivative forward value (gains) losses | (557,867) | (621,946) | 734,278 |
Advances on loans held for sale | (214,486) | (125,500) | (151,110) |
Proceeds from sales of loans held for sale | 170,686 | 125,500 | 151,110 |
Changes in operating assets and liabilities: | |||
Accrued interest receivable | (3,562) | 9,282 | 16,467 |
Accrued interest payable | 8,278 | (15,947) | (19,378) |
Deferred income | 1,345 | 1,285 | 10,973 |
Other | (9,184) | (19,868) | (29,383) |
Net cash provided by operating activities | 250,793 | 239,955 | 219,215 |
Cash flows from investing activities: | |||
Advances on loans held for investment, net | (1,592,447) | (1,724,253) | (785,190) |
Investments in fixed assets, net | (17,727) | (9,862) | (9,565) |
Proceeds from sale of land | 0 | 0 | 21,268 |
Purchase of trading securities | (181,545) | (397,522) | (3,883) |
Proceeds from sales and maturities of trading securities | 162,739 | 127,875 | 277,687 |
Proceeds from redemption of equity securities | 0 | 30,000 | 25,000 |
Purchases of held-to-maturity debt securities | 0 | 0 | (76,339) |
Proceeds from maturities of held-to-maturity debt securities | 0 | 0 | 69,726 |
Net cash used in investing activities | (1,628,980) | (1,973,762) | (481,296) |
Cash flows from financing activities: | |||
Proceeds from (repayments of) short-term borrowings ≤ 90 days, net | 270,405 | 808,252 | (208,340) |
Proceeds from short-term borrowings with original maturity > 90 days | 2,693,256 | 3,081,069 | 3,022,910 |
Repayments of short-term borrowings with original maturity > 90 days | (2,564,590) | (3,269,210) | (2,460,311) |
Payments for issuance costs for revolving bank lines of credit | (3,563) | 0 | (1,025) |
Proceeds from issuance of long-term debt, net of discount and issuance costs | 3,973,810 | 3,055,220 | 2,156,711 |
Payments for retirement of long-term debt | (3,054,366) | (2,186,458) | (1,675,288) |
Payments made for early extinguishment of debt | (754) | (1,456) | (683) |
Payments for issuance costs for subordinated deferrable debt | 0 | 0 | (84) |
Proceeds from issuance of members’ subordinated certificates | 1,364 | 14,292 | 9,621 |
Payments for retirement of members’ subordinated certificates | (21,863) | (84,659) | (24,572) |
Payments for retirement of patronage capital | (57,761) | (59,889) | (63,035) |
Additions (repayments) for membership fees, net | 2 | (12) | (8) |
Net cash provided by financing activities | 1,235,940 | 1,357,149 | 755,896 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (142,247) | (376,658) | 493,815 |
Beginning cash, cash equivalents and restricted cash | 303,361 | 680,019 | 186,204 |
Ending cash, cash equivalents and restricted cash | 161,114 | 303,361 | 680,019 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 668,276 | 687,145 | 805,086 |
Cash paid for income taxes | 3 | 219 | 20 |
Noncash financing and investing activities: | |||
Net decrease in debt service reserve funds/debt service reserve certificates | $ 0 | $ 0 | $ 2,560 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2022 | |
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 tax-exempt 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. 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 conformity 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. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. Certain reclassifications and updates ha ve been made to the presentation of information in prior periods to conform to the current period presentation. These reclassifications had no effect on prior years’ net income (loss) or equity. Other Matters For the years ended May 31, 2021 and 2020, we made corrections to the consolidated statements of cash flows to present the gross amount of advances on and proceeds from sales of loans held for sale. We concluded that the corrections were not material. COVID-19 Although most health and safety restrictions in response to COVID-19 have been lifted, we cannot predict the potential future impact that the COVID-19 pandemic may have on our operations and financial performance, or the specific ways the pandemic may uniquely impact our members. We continue to closely monitor developments, all of which continue to involve significant uncertainties that depend on future developments, which include, among others, the severity and duration of the current COVID-19 resurgence and its impact on the overall economy and other industry sectors; vaccination rates; the longer-term efficacy of vaccinations; and the potential emergence of new, more transmissible or severe variants. 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 has not had entities that held foreclosed assets since fiscal year 2017. 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 as of both May 31, 2022 and 2021. 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, 2022 and 2021. 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 as held for investment or held for sale based on management’s intent and ability to sell or hold the loan for the foreseeable future or until maturity or payoff. Loans that we have the ability and intent to hold for the foreseeable future are classified as held for investment and 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. Loans that we intend to sell or for which we do not have the ability and intent to hold for the foreseeable future are classified as held for sale and are recorded at the lower of cost or fair value. These loan sales are made at par value, concurrently or within a short period of time with the closing of the loan or participation agreement. Accrued Interest Receivable As permitted by the Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments—Credit Losses , 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 $94 million and $93 million as of May 31, 2022 and 2021, 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 the loans in our portfolio, including 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, 2022 or May 31, 2021. 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 of $8 million, $8 million a nd $9 million in fiscal years 2022, 2021 and 2020, respectively. We perform a fixed assets impairment assessment annually or more frequently, whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable. Based on our annual impairment assessment for fiscal years 2022 and 2021, management determined that there were no indicators of impairment of our fixed assets as of May 31, 2022 and 2021. 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) 2022 2021 Building and building equipment $ 50,177 $ 50,090 Furniture and fixtures 6,254 6,039 Computer software and hardware 55,101 54,582 Other 1,024 1,048 Depreciable fixed assets 112,556 111,759 Less: Accumulated depreciation (73,258) (66,777) Net depreciable fixed assets 39,298 44,982 Land 23,796 23,796 Software development in progress 38,668 23,104 Fixed assets, net $ 101,762 $ 91,882 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, 2022 or May 31, 2021. 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 al |
Interest Income and Interest Ex
Interest Income and Interest Expense | 12 Months Ended |
May 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
INTEREST INCOME AND INTEREST EXPENSE | 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 2022, 2021 and 2020. Table 2.1: Interest Income and Interest Expense Year Ended May 31, (Dollars in thousands) 2022 2021 2020 Interest income: Loans (1) $ 1,125,292 $ 1,101,505 $ 1,129,883 Investment securities 15,951 15,096 21,403 Total interest income 1,141,243 1,116,601 1,151,286 Interest expense: (2)(3) Short-term borrowings 18,265 14,730 77,995 Long-term debt 581,748 581,292 634,567 Subordinated debt 105,521 106,041 108,527 Total interest expense 705,534 702,063 821,089 Net interest income $ 435,709 $ 414,538 $ 330,197 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized in interest income over the period to maturity using the effective interest method, late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs. (2) 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. (3) 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 $44 million and $51 million as of May 31, 2022 and 2021, respectively, consists primarily of deferred loan conversion fees that totaled $37 million and $45 million as of each |
Investment Securities
Investment Securities | 12 Months Ended |
May 31, 2022 | |
Investments [Abstract] | |
INVESTMENT SECURITIES | NOTE 3—INVESTMENT SECURITIES Our investment securities portfolio consists of debt securities classified as trading and equity securities with readily determinable fair values. We therefore record changes in the fair value of our debt and equity securities in earnings and report these unrealized changes together with realized gains and losses from the sale of securities as a component of non-interest income in our consolidated statements of operations. For additional information on our investments in debt securities, see “Note 1—Summary of Significant Accounting Policies.” 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”). Pursuant to our investment policy guidelines, all fixed-income debt securities, at the time of purchase, must be rated at least investment grade 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. The following table presents the composition of our investment debt securities portfolio and the fair value as of May 31, 2022 and 2021. Table 3.1: Investments in Debt Securities, at Fair Value May 31, (Dollars in thousands) 2022 2021 Debt securities, at fair value: Certificates of deposit $ — $ 1,501 Commercial paper 9,985 12,365 Corporate debt securities 487,172 497,944 Commercial Agency MBS (1) 7,815 8,683 U.S. state and municipality debt securities 27,778 11,840 Foreign government debt securities 967 999 Other ABS (2) 32,429 42,843 Total debt securities trading, at fair value $ 566,146 $ 576,175 ____________________________ (1) Consists of securities backed by the Federal National Mortgage Association (“ Fannie Mae ”) and the 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 recognized net unrealized losses on our debt securities of $27 million and $3 million for the years ended May 31, 2022 and 2021, respectively, and net unrealized gains of $8 million for the year ended May 31, 2020. We sold $5 million of debt securities at fair value during the year ended May 31, 2022, and recorded realized gains related to the sale of these securities of less than $1 million for the year ended May 31, 2022. We sold $6 million 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 sold $239 million 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 during the year ended May 31, 2020. Pledged Collateral—Debt securities Under master repurchase agreements with counterparties, we can obtain short-term funding by selling investment-grade corporate debt securities from our investment portfolio subject to an obligation to repurchase the same or similar securities at an agreed-upon price and date. Because we retain effective control over the transferred securities, transactions under these repurchase agreements are accounted for as collateralized financing agreements ( i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a component of our short-term borrowings on our consolidated balance sheets. The aggregate fair value of debt securities underlying repurchase transactions is parenthetically disclosed on our consolidated balance sheets. We had no borrowings under repurchase transactions outstanding as of May 31, 2022; therefore, we had no debt securities in our investment portfolio pledged as collateral as of May 31, 2022. We had short-term borrowings under repurchase transactions of $200 million as of May 31, 2021. The debt securities underlying these transactions had an aggregate fair value of $211 million as of this date, and we repurchased the securities on June 2, 2021. Equity Securities The following table presents the composition of our equity security holdings and the fair value as of May 31, 2022 and 2021. Table 3.2: Investments in Equity Securities, at Fair Value May 31, (Dollars in thousands) 2022 2021 Equity securities, at fair value: Farmer Mac—Series C non-cumulative preferred stock $ 25,520 $ 27,450 Farmer Mac—Class A common stock 8,238 7,652 Total equity securities, at fair value $ 33,758 $ 35,102 |
Loans
Loans | 12 Months Ended |
May 31, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS | NOTE 4—LOANS We segregate our loan portfolio into segments, by legal entity, based on the borrower member class, which consists of CFC distribution, CFC power supply, CFC statewide and associate, NCSC and RTFC. We offer both long-term and line of credit loans to our borrowers. Under our long-term loan facilities, a borrower may select a fixed interest rate or a variable interest rate at the time of each loan advance. Line of credit loans are revolving loan facilities and generally have a variable interest rate. 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 Collateral and security requirements for advances on loan commitments are identical to those required at the time of the initial loan approval. Loans to Members Loans to members consist of loans held for investment and loans held for sale. The outstanding amount of loans held for investment is recorded based on the unpaid principal balance, net of charge-offs and recoveries, of loans and deferred loan origination costs. The outstanding amount of loans held for sale is recorded based on the lower of cost or fair value. The following table presents loans to members by legal entity, member class and loan type, as of May 31, 2022 and 2021. Table 4.1: Loans to Members by Member Class and Loan Type May 31, 2022 2021 (Dollars in thousands) Amount % of Total Amount % of Total Member class: CFC: Distribution $ 23,844,242 79 % $ 22,027,423 78 % Power supply 4,901,770 17 5,154,312 18 Statewide and associate 126,863 — 106,121 — Total CFC 28,872,875 96 27,287,856 96 NCSC 710,878 2 706,868 3 RTFC 467,601 2 420,383 1 Total loans outstanding (1) 30,051,354 100 28,415,107 100 Deferred loan origination costs—CFC (2) 12,032 — 11,854 — Loans to members $ 30,063,386 100 % $ 28,426,961 100 % Loan type: Long-term loans: Fixed rate $ 26,952,372 90 % $ 25,514,766 90 % Variable rate 820,201 2 658,579 2 Total long-term loans 27,772,573 92 26,173,345 92 Lines of credit 2,278,781 8 2,241,762 8 Total loans outstanding (1) 30,051,354 100 28,415,107 100 Deferred loan origination costs—CFC (2) 12,032 — 11,854 — Loans to members $ 30,063,386 100 % $ 28,426,961 100 % ____________________________ (1) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. (2) Deferred loan origination costs are recorded on the books of CFC. Loan Sales We may transfer whole loans and participating interests to third partie s. These transfers are typically made concurrently or within a short period of time with the closing of the loan sale 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, if any. 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 and NCSC loans, at par for cash, totaling $171 million, $126 million and $151 million in fiscal years 2022, 2021 and 2020, respectively. We recorded immaterial losses on the sale of these loans attributable to the unamortized deferred loan origination costs associated with the transferred loans. We had loans held for sale totaling $44 million as of May 31, 2022, which were sold at par for cash subsequent to year-end. Credit Concentration Concentrations of credit may exist when a lender has large credit exposures to single borrowers, large credit exposures to borrowers in the same industry sector or engaged in similar activities or large credit exposures to borrowers in a geographic region that would cause the borrowers to be similarly impacted by economic or other conditions in the region. 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 $29,584 million and $27,995 million as of May 31, 2022 and 2021, respectively, accounted for 98% and 99% of total loans outstanding as of each respective date The remaining loans outstanding in our portfolio were to RTFC members, affiliates and associates in the telecommunications industry. Single-Obligor Concentration The outstanding loan exp osure for our 20 largest borrowers totaled $6,220 million and $6,182 million as of May 31, 2022 and 2021, respectively, representing 21% and 22% of total loans outstanding as of each respective date. Our 20 largest borrowers consisted of 12 distribution systems and eight p ower supply systems as of May 31, 2022. In comparison, our 20 largest borrowers consisted of 10 distribution systems and 10 power supply systems as of May 31, 2021. 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, 2022 and 2021. 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 loan s was $493 million and $512 million as of May 31, 2022 and 2021, respectively. Loan exposure to our 20 largest borrowers covered under the Farmer Mac agreement totaled $316 million and $309 million as of May 31, 2022 and 2021, respectively, which reduced our exposure to the 20 largest borrowers to 20% and 21% as of each respective date. We have had no loan defaults for loans covered under this agreement; therefore, no loans have been put to Farme r Mac for purchase pursuant to the standby purchase agreement as of May 31, 2022. Our credit exposure is also mitigated by long-term loans guaranteed by the RUS. Guaranteed RUS loans totaled $131 million and $139 million as of May 31, 2022 and 2021, respectivel y. 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 consolidated number of borrowers with loans outstanding totaled 883 and 892 as of May 31, 2022 and 2021, respectively, located in 49 states and the District of Columbia. Texas, which ha d 68 and 67 borrowers with loans outstanding as of May 31, 2022 and 2021, respectively, accounted for the largest number of borrowers with loans outstanding in any one state as of each respective date. Texas also accounted for the largest concentration of loan exposure in any one state as of each respective date. Loans outstanding to Texas-based electric utility organizations totaled $5,104 million and $4,878 million as of May 31, 2022 and 2021, respectively, and accounted for approxima tely 17% of total loans outstanding as of each respective date. Of the loans outstanding to Texas-based electric utility organizations, $163 million and $172 million as of May 31, 2022 and 2021, respect ively, were covered by the Farmer Mac standby repurchase agreement, which reduced our credit risk exposure to Texas-based borrowers to 16% of total loans outstanding as of each respective date. 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, TDRs, 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 legal entity and member class, of loans outstanding as of May 31, 2022 and 2021. Table 4.2: Payment Status of Loans Outstanding May 31, 2022 (Dollars in thousands) Current 30-89 Days Past Due > 90 Days Total Total Loans Outstanding Nonaccrual Loans Member class: CFC: Distribution $ 23,844,242 $ — $ — $ — $ 23,844,242 $ — Power supply 4,787,832 28,389 85,549 113,938 4,901,770 227,790 Statewide and associate 126,863 — — — 126,863 — CFC total 28,758,937 28,389 85,549 113,938 28,872,875 227,790 NCSC 710,878 — — — 710,878 — RTFC 467,601 — — — 467,601 — Total loans outstanding $ 29,937,416 $ 28,389 $ 85,549 $ 113,938 $ 30,051,354 $ 227,790 Percentage of total loans 99.62 % 0.09 % 0.29 % 0.38 % 100.00 % 0.76 % May 31, 2021 (Dollars in thousands) Current 30-89 Days Past Due > 90 Days Total Total Loans Outstanding Nonaccrual Loans Member class: 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 % We had two borrowers, Brazos Electric Power Cooperative, Inc. (“Brazos”) and Brazos Sandy Creek Electric Cooperative Inc. (“Brazos Sandy Creek”) with delinquent loans totaling $114 million as of May 31, 2022. In comparison, we had one borrower, Brazos, with delinquent loans totaling $85 million as of May 31, 2021. Brazos, a CFC Texas-based power supply borrower, filed for bankruptcy in March 2021 due to its exposure to elevated wholesale electric power costs during the February 2021 polar vortex. Brazos is not permitted to make scheduled loan payments without approval of the bankruptcy court. As a result, we have not received payments from Brazos since March 2021, and its loans outstanding were on nonaccrual status as of each respective date. On March 18, 2022, Brazos Sandy Creek, a wholly-owned subsidiary of Brazos and a CFC Texas-based electric power supply borrower, filed for bankruptcy following the filing of a motion by Brazos to reject its power purchase agreement with Brazos Sandy Creek as part of Brazos’ bankruptcy proceedings. A Chapter 7 Trustee has been appointed, and the Chapter 7 Trustee has been approved by the bankruptcy court to operate Brazos Sandy Creek as a going concern. CFC had a secured loan outstanding to Brazos Sandy Creek totaling $28 million as of May 31, 2022, which, upon notification of the bankruptcy filing by Brazos Sandy Creek, was classified as nonperforming. Brazos Sandy Creek’s loan outstanding of $28 million was delinquent as of May 31, 2022 and on nonaccrual status as of this date. The decrease in loans on nonaccrual stat us of $9 million to $228 million as of May 31, 2022, from $237 million was due to the receipt of loan principal payments. See “Nonperforming Loans” below for additional information. Troubled Debt Restructurings We have not had any loan modifications that were required to be accounted for as a TDR 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 legal entity and member class, of these loans as of May 31, 2022 and 2021. Table 4.3: Trouble Debt Restructurings May 31, 2022 2021 (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: Member class: CFC—Distribution 1 $ 5,092 0.02 % 1 $ 5,379 0.02 % RTFC 1 4,092 0.01 1 4,592 0.02 Total TDR loans 2 $ 9,184 0.03 % 2 $ 9,971 0.04 % Performance status of TDR loans: Performing TDR loans 2 $ 9,184 0.03 % 2 $ 9,971 0.04 % Total TDR loans 2 $ 9,184 0.03 % 2 $ 9,971 0.04 % ____________________________ (1) Represents the unpaid principal balance net of charge-offs and recoveries as of the end of each period. There were no unadvanced commitments related to these loans as of May 31, 2022 or May 31, 2021. These loans, which have been performing in accordance with the terms of their respective restructured loan agreement for an extended period of time, were classified as performing and on accrual status as of May 31, 2022 and 2021. We did not have any TDR loans classified as nonperforming as of May 31, 2022 and 2021. The CFC borrower with the TDR loan also had one line of credit as of both May 31, 2022 and May 31, 2021. The line of credit facility for $6 million as of both May 31, 2022 and 2021, is restricted for fuel purchases only. Outstanding loans under this facility totaled $1 million as of May 31, 2022. There were no outstanding loans under this facility as of May 31, 2021. 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 legal entity and member class, as of May 31, 2022 and 2021. Table 4.4: Nonperforming Loans May 31, 2022 2021 (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: Member class: CFC—Power supply (2) 3 $ 227,790 0.76 % 2 $ 228,312 0.81 % RTFC — — — 2 9,185 0.03 Total nonperforming loans 3 $ 227,790 0.76 % 4 $ 237,497 0.84 % ____________________________ (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 in letters of credit outstanding to Brazos as of May 31, 2021. We had loans to three borrowers totaling $228 million classified as nonperforming as of May 31, 2022. In comparison we had loans to four borrowers totaling $237 million classified as nonperforming as of May 31, 2021. Nonperforming loans represented 0.76% and 0.84% of total loans outstanding as of May 31, 2022 and 2021, respectively. The reduction in nonperforming loans of $9 million during fiscal year 2022 was due in part to our receipt of full payment of all amounts due on nonperforming loans to two RTFC borrowers totaling $9 million during the fiscal quarter ended November 30, 2021 (the “second quarter of fiscal year 2022.”) In addition, we have continued to receive payments on the remaining outstanding nonperforming loan to a CFC electric power supply borrower, including payments totaling $29 million during fiscal year 2022, which reduced the balance of this loan to $114 million as of May 31, 2022, from $143 million as of May 31, 2021. These reductions were partially offset by the classification during the fiscal quarter ended May 31, 2022 (the “fourth quarter of fiscal year 2022”) of the $28 million loan outstanding to Brazos Sandy Creek as nonperforming following its bankruptcy filing on March 18, 2022, as discussed above. Loans outstanding to Brazos accounted for $86 million and $85 million of our total nonperforming loans as of May 31, 2022 and 2021, respectively. As discussed above, Brazos, which filed for bankruptcy in March 2021 due to its exposure to elevated wholesale electric power costs during the February 2021 polar vortex, is not permitted to make scheduled loan payments without approval of the bankruptcy court. Aggregate loans outstanding to Brazos and Brazos Sandy Creek totaled $114 million as of May 31, 2022, of which $49 million were secured and $65 million were unsecured. Net Charge-Offs Charge-offs represent the amount of a loan that has been removed from our consolidated balance sheet when the loan is deemed uncollectible. Generally the amount of a charge-off is the recorded investment in excess of the fair value of the expected cash flows from the loan, or, if the loan is collateral dependent, the fair value of the underlying collateral securing the loan. We report charge-offs net of amounts recovered on previously charged-off loans. We had no loan charge-offs during the fiscal years ended May 31, 2022, 2021 and 2020. Prior to Brazos’ and Brazos Sandy Creek’s bankruptcy filings, we had not experienced any defaults or charge-offs in our electric utility and telecommunications loan portfolios since fiscal year 2013 and 2017, respectively. 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 agencies’ 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. The 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. Our internally assigned borrower risk ratings 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 determining our allowance for credit losses. Table 4.5 displays total loans outstanding, by borrower risk-rating category and by legal entity and member class, as of May 31, 2022 and 2021. 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. We present term loans outstanding as of May 31, 2022, by fiscal year of origination for each year during the five-year annual reporting period beginning in fiscal year 2018, and in the aggregate for periods prior to fiscal year 2018. 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 and as indicated in Table 4.5 below, term loan advances made to borrowers prior to fiscal year 2018 totaled $16,540 million, representing 55% of our total loans outstanding of as of May 31, 2022. The average remaining maturity of our long-term loans, which accounted for 92% of total loans outstanding as of May 31, 2022, 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 our member borrowers through our various loan programs. Our secured long-term loan commitment facilities typically provide a five While the number of borrowers with loans outstanding was 883 borrowers as of May 31, 2022, the number of loans outstanding was 16,584 as of May 31, 2022, resulting in an average of 19 loans outstanding per borrower. Our borrowers, however, are generally 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, 2022 Term Loans by Fiscal Year of Origination (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Total May 31, 2021 Pass CFC: Distribution $ 2,533,579 $ 1,696,580 $ 1,882,003 $ 1,192,639 $ 1,451,710 $ 13,300,784 $ 1,538,709 $ 23,596,004 $ 21,808,099 Power supply 374,185 559,384 188,864 404,425 244,840 2,637,162 265,120 4,673,980 4,517,408 Statewide and associate 33,896 2,250 18,601 3,282 — 19,998 34,583 112,610 90,261 CFC total 2,941,660 2,258,214 2,089,468 1,600,346 1,696,550 15,957,944 1,838,412 28,382,594 26,415,768 NCSC 49,141 39,747 232,224 4,067 43,079 233,992 108,628 710,878 706,868 RTFC 92,446 88,526 44,851 10,032 22,198 184,382 21,074 463,509 406,606 Total pass $ 3,083,247 $ 2,386,487 $ 2,366,543 $ 1,614,445 $ 1,761,827 $ 16,376,318 $ 1,968,114 $ 29,556,981 $ 27,529,242 Special mention CFC: Distribution $ — $ 4,889 $ — $ 5,102 $ 932 $ 12,197 $ 225,118 $ 248,238 $ 219,324 Power supply — — — — — — — — 29,611 Statewide and associate — — — 5,000 3,821 5,432 — 14,253 15,860 CFC total — 4,889 — 10,102 4,753 17,629 225,118 262,491 264,795 RTFC — — — — — 4,092 — 4,092 4,592 Total special mention $ — $ 4,889 $ — $ 10,102 $ 4,753 $ 21,721 $ 225,118 $ 266,583 $ 269,387 Substandard CFC: Power supply $ — $ — $ — $ — $ — $ — $ — $ — $ 378,981 Total substandard $ — $ — $ — $ — $ — $ — $ — $ — $ 378,981 Doubtful CFC: Power supply $ — $ — $ — $ — $ — $ 142,241 $ 85,549 $ 227,790 $ 228,312 CFC total — — — — — 142,241 85,549 227,790 228,312 RTFC — — — — — — — — 9,185 Total doubtful $ — $ — $ — $ — $ — $ 142,241 $ 85,549 $ 227,790 $ 237,497 Total criticized loans $ — $ 4,889 $ — $ 10,102 $ 4,753 $ 163,962 $ 310,667 $ 494,373 $ 885,865 Total loans outstanding $ 3,083,247 $ 2,391,376 $ 2,366,543 $ 1,624,547 $ 1,766,580 $ 16,540,280 $ 2,278,781 $ 30,051,354 $ 28,415,107 Criticized loans totaled $494 million and $886 million as of May 31, 2022 and 2021, respectively, and represented approximately 2% and 3% of total loans outstanding as of each respective date. Criticized loans include loans outstanding to Brazos and Brazos Sandy Creek totaling $114 million as of May 31, 2022, which were classified as doubtful as of the respective date. In comparison, criticized loans include loans outstanding to Brazos of $85 million as of May 31, 2021, which were classified as doubtful as of the respective date. Each of the borrowers with loans outstanding in the criticized category, with the exception of Br azos and Brazos Sandy Creek, was current with regard to all principal and interest amounts due as of May 31, 2022. In comparison, e ach of the borrowers with loans outstanding in the criticized category, with the exception of Br azos, was current with regard to all principal and interest amounts due as of May 31, 2021. Brazos is not permitted to make scheduled loan payments without approval of the bankruptcy court. Special Mention One CFC electric distribution borrower with loans out standing of $248 million and $219 million as of May 31, 2022 and 2021, respectively, accounted for the substantial majority of loans in the special mention loan category amount of $267 million and $269 million as of each respective date. This borrower experienced an adverse financial impact from restoration costs incurred to repair damage caused by two successive hurricanes. We expect t hat the borrower will receive grant funds from the Federal Emergency Management Agency and the state where it is located for the full reimbursement of the hurricane damage-related restoration costs. Substandard We did not have any loans classified as sub standard as of May 31, 2022. We had loans outstanding to Rayburn Country Electric Cooperative, Inc. (“Rayburn”) totaling $379 million that were classified as substandard as of May 31, 2021. In February 2022, Rayburn successfully completed a securitization transaction to cover extraordinary costs and expenses incurred during the February 2021 polar vortex pursuant to a financing program enacted into law by Texas in June 2021 for qualifying electric cooperatives exposed to elevated power costs during the February 2021 polar vortex. Subsequent to the completion of the securitization transaction, Rayburn fully paid its outstanding obligations to the Electric Reliability Council of Texas. As a result, we revised our borrower risk rating for Rayburn to a rating in the pass category from a previous rating in the substandard category. In addition, we received loan payments from Rayburn during the fiscal year ended May 31, 2022 that reduced our loans outstanding to Rayburn to $167 million as of May 31, 2022 from $379 million as of May 31, 2021. Doubtful Loans outstanding classified as doubtful totaled $228 million as of May 31, 2022, consisting of loans outstanding to Brazos and Brazos Sandy Creek totaling $114 million and loans outstanding to a CFC electric power supply borrower of $114 million. In comparison, loans outstanding classified as doubtful totaled $237 million as of May 31, 2021, consisting of loans outstanding to Brazos of $85 million, loans outstanding to a CFC electric power supply borrower of $143 million and loans outstanding to two RTFC telecommunications borrowers totaling $9 million. These loans were also classified as nonperforming, as discussed above under “Nonperforming Loans.” As discussed above, in June 2021, Texas enacted securitization legislation that offers a financing program for qualifying electric cooperatives exposed to elevated power costs during the February 2021 polar vortex. Brazos qualifies for the Texas-enacted financing program. Unadvanced Loan Commitments Unadvanced loan commitments represent approved and executed loan contracts for which funds have not been advanced to borrowers. The following table presents unadvanced loan commitments, by member class and by loan type, as of May 31, 2022 and 2021. Table 4.6: Unadvanced Commitments by Member Class and Loan Type May 31, (Dollars in thousands) 2022 2021 Member class: CFC: Distribution $ 9,230,197 $ 9,387,070 Power supply 3,835,535 3,970,698 Statewide and associate 183,845 161,340 Total CFC 13,249,577 13,519,108 NCSC 551,901 551,125 RTFC 309,724 286,806 Total unadvanced commitments $ 14,111,202 $ 14,357,039 Loan type: (1) Long-term loans: Fixed rate $ — $ — Variable rate 5,357,205 5,771,813 Total long-term loans 5,357,205 5,771,813 Lines of credit 8,753,997 8,585,226 Total unadvanced commitments $ 14,111,202 $ 14,357,039 ____________________________ (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. The following table displays, by loan type, the available balance under unadvanced loan commitments as of May 31, 2022 and the related maturities in each fiscal year during the five-year period ended May 31, 2027, and thereafter. Table 4.7: Unadvanced Loan Commitments Available Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2023 2024 2025 2026 2027 Thereafter Line of credit loans $ 8,753,997 $ 4,160,953 $ 1,139,303 $ 1,588,513 $ 363,001 $ 1,431,073 $ 71,154 Long-term loans 5,357,205 618,042 1,473,024 732,910 934,832 1,445,115 153,282 Total $ 14,111,202 $ 4,778,995 $ 2,612,327 $ 2,321,423 $ 1,297,833 $ 2,876,188 $ 224,436 Unadvanced line of credit commitments accounted for 62% of total unadvanced loan commitments as of May 31, 2022, while unadvanced long-term loan commitments accounted for 38% of total unadvanced loan commitments. Unadvanced line of credit commitments are typically revolving facilities for periods not to ex ceed 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 typically 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 $5,357 million will be advanced prior to the expiration of the commitment. Because we historically have experienced a very low utilization rate on line of credit loan facilities, which account for the majority of our total unadvanced loan commitments, we believe the unadvanced loan commitment total of $14,111 million as of May 31, 2022 is not necessarily representative of our future funding requirements. Unadvanced Loan Commitments—Conditional The substantial majority of our line of credit commitments and all of our unadvanced long-term loan commitments include material adverse change clauses. Unadvanced loan commitments subject to material adverse change clauses totaled $10,908 million and $11,312 million as of May 31, 2022 and 2021, respectively. Prior to making an advance on these facilities, we confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with loan terms and conditions. In some cases, the borrower’s access to the full amount of the facility is further constrained by the designated purpose, imposition of borrower-specific restrictions or by additional conditions that must be |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
May 31, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
ALLOWANCE FOR CREDIT LOSSES | NOTE 5—ALLOWANCE FOR CREDIT LOSSES We are required to maintain an allowance based on a current estimate of credit losses that are expected to occur over the remaining term of the loans in our portfolio. Our allowance for credit losses consists of a collective allowance and an asset-specific allowance. Additional information on our current CECL allowance methodology is provided in “Note 1—Summary of Significant Accounting Policies.” Allowance for Credit Losses—Loan Portfolio The following tables summarize, by legal entity and member class, changes in the allowance for credit losses for our loan portfolio and present the allowance components for the years ended May 31, 2022, 2021 and 2020. 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. Table 5.1: Changes in Allowance for Credit Losses Year Ended May 31, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of May 31, 2021 $ 13,426 $ 64,646 $ 1,391 $ 79,463 $ 1,374 $ 4,695 $ 85,532 Provision (benefit) for credit losses 2,355 (16,853) (140) (14,638) 75 (3,409) (17,972) Balance as of May 31, 2022 $ 15,781 $ 47,793 $ 1,251 $ 64,825 $ 1,449 $ 1,286 $ 67,560 Year Ended May 31, 2021 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & 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) CFC Distribution CFC Power Supply CFC Statewide & 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 The following tables present, by legal entity and member class, the components of our allowance for credit losses as of May 31, 2022 and 2021. Table 5.2: Allowance for Credit Losses Components May 31, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 15,781 $ 9,355 $ 1,251 $ 26,387 $ 1,449 $ 1,040 $ 28,876 Asset-specific allowance (1) — 38,438 — 38,438 — 246 38,684 Total allowance for credit losses $ 15,781 $ 47,793 $ 1,251 $ 64,825 $ 1,449 $ 1,286 $ 67,560 Loans outstanding: (1) Collectively evaluated loans $ 23,839,150 $ 4,673,980 $ 126,863 $ 28,639,993 $ 710,878 $ 463,509 $ 29,814,380 Individually evaluated loans (1) 5,092 227,790 — 232,882 — 4,092 236,974 Total loans outstanding $ 23,844,242 $ 4,901,770 $ 126,863 $ 28,872,875 $ 710,878 $ 467,601 $ 30,051,354 Allowance ratios: Collective allowance coverage ratio (2) 0.07 % 0.20 % 0.99 % 0.09 % 0.20 % 0.22 % 0.10 % Asset-specific allowance coverage ratio (3) — 16.87 — 16.51 — 6.01 16.32 Total allowance coverage ratio (4) 0.07 0.98 0.99 0.22 0.20 0.28 0.22 May 31, 2021 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & 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 (5) — 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: (1) Collectively evaluated loans $ 22,022,044 $ 4,926,000 $ 106,121 $ 27,054,165 $ 706,868 $ 406,606 $ 28,167,639 Individually evaluated loans 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 coverage ratios: Collective allowance coverage ratio (2) 0.06 % 0.51 % 1.31 % 0.15 % 0.19 % 0.28 % 0.15 % Asset-specific allowance coverage ratio (3) — 17.32 — 16.92 — 25.75 17.41 Total allowance coverage ratio (4) 0.06 1.25 1.31 0.29 0.19 1.12 0.30 ___________________________ (1) Represents the unpaid principal amount of loans as of the end of each period. Excludes unamortized deferred loan origination costs of $12 million as of both May 31, 2022 and 2021. (2) Calculated based on the collective allowance component at period-end divided by collectively evaluated loans outstanding at period-end. (3) Calculated based on the asset-specific allowance component at period-end divided by individually evaluated loans outstanding at period-end. (4) Calculated based on the total allowance for credit losses at period-end divided by total loans outstanding at period-end. (5) In addition, we had less than $1 million in letters of credit outstanding to Brazos, for which the reserve is included in the asset-specific allowance as of May 31, 2021. Our allowance for credit losses and allowance coverage ratio decreased to $68 million and 0.22%, respectively, as of May 31, 2022, from $86 million and 0.30%, respectively, as of May 31, 2021. The $18 million decrease in the allowance for credit losses reflected a decrease in the collective and the asset-specific allowance of $14 million and $4 million, respectively. The collective allowance decrease of $14 million was attributable to an improvement in Rayburn’s credit risk profile following the successful completion by Rayburn of a securitization transaction in February 2022 to cover extraordinary costs and expenses incurred during the February 2021 polar vortex and a significant reduction in loans outstanding to Rayburn due to paym ents received from Rayburn during fiscal year 2022. The asset-specific allowance decrease of $4 million stemmed from the combined impact of the elimination of an asset-specific allowance attributable to nonperforming loans totaling $9 million that were paid in full during the second quarter of fiscal year 2022 and the decrease of an asset-specific allowance for a nonperforming CFC power supply borrower discussed above, attributable to loan payments received on this loan, partially offset by the addition of an asset-specific allowance for Brazos Sandy Creek as a result of its bankruptcy filing. 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 presents, by company, the components of our recorded investment and interest income recognized for the year ended May 31, 2020. Table 5.3: Average Recorded Investment and Interest Income Recognized on Individually Impaired Loans—Incurred Loss Model Year Ended May 31, 2020 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC $ 11,834 $ 568 RTFC 5,361 268 Total impaired loans $ 17,195 $ 836 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, 2022 and 2021. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
May 31, 2022 | |
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 $4,981 million and accounted for 17% of total debt outstanding as of May 31, 2022, compared with $4,582 million, or 17% of total debt outstanding, as of May 31, 2021. The following table provides comparative information on our short-term borrowings and weighted-average interest rates as of May 31, 2022 and 2021. Table 6.1: Short-Term Borrowings Sources and Weighted-Average Interest Rates May 31, 2022 2021 (Dollars in thousands) Amount Weighted- Average Amount Weighted-Average Short-term borrowings: Commercial paper: Commercial paper dealers, net of discounts $ 1,024,813 0.96 % $ 894,977 0.16 % Commercial paper members, at par 1,358,069 0.92 1,124,607 0.14 Total commercial paper 2,382,882 0.94 2,019,584 0.15 Select notes to members 1,753,441 1.11 1,539,150 0.30 Daily liquidity fund notes to members 427,790 0.80 460,556 0.08 Medium-term notes to members 417,054 0.66 362,691 0.42 Securities sold under repurchase agreements — — 200,115 0.30 Total short-term borrowings $ 4,981,167 0.97 $ 4,582,096 0.22 We issue commercial paper for periods of one We have master repurchase agreements with counterparties whereby we may sell investment-grade corporate debt securities from our investment portfolio subject to an obligation to repurchase the same or similar securities at an agreed-upon price and date. Transactions under these repurchase agreements are accounted for as collateralized financing agreements and not as a sale. The obligation to repurchase the securities is reported as securities sold under repurchase agreements, which we include as a component of short-term borrowings on our consolidated balance sheets. We disclose the fair value of the debt securities underlying repurchase transactions; however, the pledged debt securities remain in the investment debt securities portfolio amount reported on our consolidated balan ce sheets. We had no borrowings under repurchase agreements outstanding as of May 31, 2022; therefore, we had no debt securities in our investment portfolio pledged as collateral as of May 31, 2022. We had borrowings under repurchase agreements of $200 million as of May 31, 2021, and we had pledged debt securities underlying these repurchase transactions with a fair value of $211 million as of May 31, 2021. Committed Bank Revolving Line of Credit Agreements The following table presents the amount available for access under our bank revolving line of credit agreements as of May 31, 2022. Table 6.2: Committed Bank Revolving Line of Credit Agreements Available Amounts May 31, 2022 (Dollars in millions) Total Commitment Letters of Credit Outstanding Amount Available for Access Maturity Annual Facility Fee (1) Bank revolving line of credit term: 3-year agreement $ 1,245 $ — $ 1,245 November 28, 2024 7.5 bps 5-year agreement 1,355 3 1,352 November 28, 2025 10.0 bps Total $ 2,600 $ 3 $ 2,597 ___________________________ (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 five three five three five We did not have any outstanding borrowings under our committed bank revolving line of credit agreements as of May 31, 2022; however, we had letters of credit outstanding of $3 million under the five |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
May 31, 2022 | |
Debt Instruments [Abstract] | |
LONG-TERM DEBT | NOTE 7—LONG-TERM DEBT The following table displays, by debt product type, long-term debt outstanding, and the weighted-average interest rate and maturity date as of May 31, 2022 and 2021. Long-term debt outstanding totaled $21,545 million and accounted for 75% of total debt outstanding as of May 31, 2022, compared with $20,603 million and 75% of total debt outstanding as of May 31, 2021. Long-term debt with fixed- and variable-rate accounted for 90% and 10%, respectively, of our total long-term debt outstanding as of May 31, 2022, compared with 89% and 11%, respectively, of our total long-term debt outstanding as of May 31, 2021. Table 7.1: Long-Term Debt—Debt Product Types and Weighted-Average Interest Rates May 31, 2022 2021 (Dollars in thousands) Amount Weighted- Average Maturity Amount Weighted- Average Maturity Secured long-term debt: Collateral trust bonds $ 7,097,711 3.17 % 2023-2049 $ 7,452,711 3.15 % 2022-2049 Unamortized discount (216,608) (227,046) Debt issuance costs (32,613) (33,721) Total collateral trust bonds 6,848,490 7,191,944 Guaranteed Underwriter Program notes payable 6,105,473 2.69 2025-2052 6,269,303 2.76 2025-2041 Farmer Mac notes payable 3,094,679 2.33 2022-2049 2,977,909 1.68 2021-2049 Other secured notes payable 2,755 3.10 2022-2023 4,412 3.14 2021-2023 Debt issuance costs (9) (22) Total other secured notes payable 2,746 4,390 Total secured notes payable 9,202,898 9,251,602 Total secured long-term debt 16,051,388 2.83 16,443,546 2.74 Unsecured long-term debt: Medium-term notes sold through dealers 5,263,496 2.20 2022-2032 3,943,728 2.31 2021-2032 Medium-term notes sold to members 250,397 2.70 2022-2037 232,346 2.61 2021-2037 Medium-term notes sold through dealers and to members 5,513,893 2.22 4,176,074 2.33 Unamortized discount (2,086) (2,307) Debt issuance costs (19,723) (18,036) Total unsecured medium-term notes 5,492,084 4,155,731 Unsecured notes payable 1,979 — 2022-2023 3,886 — 2021-2023 Unamortized discount (10) (35) Debt issuance costs (1) (5) Total unsecured notes payable 1,968 3,846 Total unsecured long-term debt 5,494,052 2.22 4,159,577 2.33 Total long-term debt $ 21,545,440 2.68 $ 20,603,123 2.66 The following table presents the principal amount of long-term debt maturing in each of the five fiscal years subsequent to May 31, 2022 and thereafter. Table 7.2: Long-Term Debt—Maturities and Weighted-Average Interest Rates (Dollars in thousands) Maturity Amount Weighted-Average 2023 $ 1,896,355 1.93 % 2024 2,143,516 1.91 2025 2,211,643 1.85 2026 2,419,500 2.98 2027 1,602,329 1.94 Thereafter 11,543,147 3.14 Total $ 21,816,490 2.68 Secured Debt Long-term secured debt of $16,051 million and $16,444 million as of May 31, 2022 and 2021, respectively, represented 75% and 80% of total long-term debt outstanding as of each respective date. The decrease in long-term secured debt of $393 million for the year ended May 31, 2022 was primarily attributable to the redemption of $850 million of collateral trust bonds, as described below, and Farmer Mac and Guaranteed Underwriter Program notes payable repayments, partially offset by the $500 million collateral trust bonds issuance and borrowings under the Farmer Mac revolving note purchase agreement and the Guaranteed Underwriter Program. We were in compliance with all covenants and conditions under our debt indentures as of May 31, 2022 and 2021. We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. 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 decreased $343 million to $6,848 million as of May 31, 2022, primarily due to the redemptions of $400 million of 3.05% of collateral trust bonds due February 15, 2022 and $450 million of 2.40% of collateral trust bonds due April 25, 2022, partially offset by the February 7, 2022 issuance of $500 million aggregate principal amount of 2.75% of collateral trust bonds due April 15, 2032. Guaranteed Underwriter Program Notes Payable No tes payable outstanding under the Guaranteed Underwriter Program decreased $164 million to $6,105 million as of May 31, 2022 due to notes payable repayments, partially offset by notes payable advances under the Guaranteed Underwriter Program. On November 4, 2021, we closed on a $550 million committed loan facility (“Series S”) from the Federal Financing Bank under the Guar anteed Underwriter Program. Pursuant to this facility, we may borrow any time before July 15, 2026. 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 $450 million and repaid $614 million of notes payable outstanding under the Guaranteed Underwriter Program during the year ended May 31, 2022. We had up to $1,075 million available for access under the Guaranteed Underwriter Program as of May 31, 2022. 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 through June 30, 2026, with successive automatic one On June 15, 2022, we amended the revolving note purchase agreement with Farmer Mac to increase the maximum borrowing availability to $6,000 million from $5,500 million, and extend the draw period from June 30, 2026 to June 30, 2027, with successive automatic one Unsecured Debt Long-term unsecured debt of $5,494 million and $4,160 million as of May 31, 2022 and 2021, respectively, represented 25% and 20% of total long-term debt outstanding as of each respective date. The increase in long-term unsecured debt of $1,334 million for the year ended May 31, 2022 was primarily attributable to dealer medium-term notes issuance, as described below, partially offset by dealer medium-term notes repayments. 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 October 18, 2021, we issued $400 million aggregate principal amount of dealer medium-term notes at a fixed rate of 1.000%, due on October 18, 2024, and $350 million aggregate principal amount of dealer medium-term notes at a variable rate based on the Secured Overnight Financing Rate (“SOFR”) plus 0.33%, d |
Subordinated Deferrable Debt
Subordinated Deferrable Debt | 12 Months Ended |
May 31, 2022 | |
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, 2022 and 2021. Table 8.1: Subordinated Deferrable Debt Outstanding and Weighted-Average Interest Rates May 31, 2022 2021 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 (13,482) (13,685) Total subordinated deferrable debt $ 986,518 5.11 $ 986,315 5.11 |
Members' Subordinated Certifica
Members' Subordinated Certificates | 12 Months Ended |
May 31, 2022 | |
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 requ irement 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. Subsequent to May 31, 2022, we revised the interest rate to 5.50% and updated the call option to five years for new member capital securities issuances. The following table displays members’ subordinated certificates and the weighted-average interest rates as of May 31, 2022 and 2021. Table 9.1: Members’ Subordinated Certificates Outstanding and Weighted-Average Interest Rates May 31, 2022 2021 (Dollars in thousands) Amounts Weighted- Amounts Weighted- Membership subordinated certificates: Certificates maturing 2025 through 2119 $ 628,591 $ 628,582 Subscribed and unissued (1) 12 12 Total membership subordinated certificates 628,603 4.95 % 628,594 4.95 % Loan and guarantee subordinated certificates: Interest-bearing loan subordinated certificates maturing through 2045 216,266 223,067 Non-interest-bearing loan subordinated certificates maturing through 2047 121,744 132,203 Subscribed and unissued (1) 45 45 Total loan subordinated certificates 338,055 2.64 355,315 2.61 Interest-bearing guarantee subordinated certificates maturing through 2044 27,333 5.90 31,581 6.06 Total loan and guarantee subordinated certificates 365,388 2.88 386,896 2.89 Member capital securities: Securities maturing through 2052 240,170 5.00 239,170 5.00 Total members’ subordinated certificates $ 1,234,161 4.35 $ 1,254,660 4.32 ___________________________ (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 outstan ding was 55 and 56 yea rs as of May 31, 2022 and 2021, respectively . The following table presents the amount of members’ subordinated certificates maturing in each of the five fiscal years subsequent to May 31, 2022 and thereafter. Table 9.2: Members’ Subordinated Certificate Maturities and Weighted-Average Interest Rates (Dollars in thousands) Amount Maturing (1) Weighted-Average 2023 $ 17,034 4.00 % 2024 8,092 2.19 2025 8,594 2.47 2026 53,515 2.92 2027 8,716 1.87 Thereafter 1,138,153 4.47 Total $ 1,234,104 4.35 ___________________________ (1) E xcludes $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 $175 million are amortizing annually based on the unpaid principal balance of the related loan. Amortization payments on these certificates totaled $12 million in fiscal year 2022 and represented 7% of amortizing loan subordinated certificates outstanding. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
May 31, 2022 | |
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 consist of 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, 2022 and 2021. 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, 2022 2021 (Dollars in thousands) Notional Weighted- Weighted- Notional Weighted- Weighted- Pay-fixed swaps $ 5,957,631 2.60 % 1.24 % $ 6,579,516 2.65 % 0.20 % Receive-fixed swaps 1,980,000 1.53 2.86 2,399,000 0.92 2.80 Subtotal 7,937,631 2.33 1.64 8,978,516 2.19 0.89 Forward pay-fixed swaps 124,000 — Total interest rate swaps $ 8,061,631 $ 8,978,516 The following table presents the maturities, based on the notional amount of our interest rate swaps as of May 31, 2022. Table 10.2: Derivative Notional Amount Maturities Notional Amount Notional Amortization and Maturities (Dollars in thousands) 2023 2024 2025 2026 2027 Thereafter Interest rate swaps $8,061,631 $542,398 $615,574 $100,000 $787,895 $43,751 $5,972,013 Cash Flow Hedges On July 20, 2021, we executed two treasury lock agreements with an aggregate notional amount of $250 million to lock in the underlying U.S. Treasury interest rate component of interest rate payments on anticipated debt issuances and repricings. The treasury locks, which were scheduled to mature on October 29, 2021, were designated and qualified as cash flow hedges. In October 2021, we borrowed $250 million under our Farmer Mac revolving note purchase agreement and terminated the treasury locks. Prior to this anticipated borrowing and the termination of the treasury locks, we recorded changes in the fair value of the treasury locks in AOCI. At termination, the treasury locks were in a gain position of $5 million, of which $4 million is being accreted from AOCI to interest expense over the term of the related Farmer Mac borrowings and the remainder was recognized in earnings. We did not have any derivatives designated as accounting hedges as of May 31, 2022 or 2021. 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, 2022 and 2021. May 31, 2022 2021 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount Derivative assets: Interest rate swaps $ 222,042 $ 4,791,699 $ 121,259 $ 2,560,618 Total derivative assets $ 222,042 $ 4,791,699 $ 121,259 $ 2,560,618 Derivative liabilities: Interest rate swaps $ 128,282 $ 3,269,932 $ 584,989 $ 6,417,898 Total derivative liabilities $ 128,282 $ 3,269,932 $ 584,989 $ 6,417,898 ____________________________ (1) The notional amount includes $124 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 subsequent to May 31, 2022, outstanding as of May 31, 2022. The fair value of these swaps as of May 31, 2022 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 contract. The following table presents the gross fair value of derivative assets and liabilities reported on our consolidated balance sheets as of May 31, 2022 and 2021, and provides information on the impact of netting provisions under our master swap agreements and collateral pledged, if any. Table 10.4: Derivative Gross and Net Amounts May 31, 2022 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 222,042 $ — $ 222,042 $ 103,228 $ — $ 118,814 Derivative liabilities: Interest rate swaps 128,282 — 128,282 103,228 — 25,054 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 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 2022, 2021 and 2020. 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) 2022 2021 2020 Derivative gains (losses) attributable to: Derivative cash settlements interest expense $ (101,385) $ (115,645) $ (55,873) Derivative forward value gains (losses) 557,867 621,946 (734,278) Derivative gains (losses) $ 456,482 $ 506,301 $ (790,151) 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 December 13, 2021, S&P affirmed CFC’s credit ratings and stable outlook under its revised criteria and updated methodology for rating financial institutions published on December 9, 2021. On December 16, 2021, Moody’s affirmed CFC’s credit ratings and stable outlook. On February 4, 2022, Fitch issued a credit ratings report review of CFC in which Fitch affirmed CFC’s credit ratings and stable outlook. Our senior unsecured credit ratings from Moody’s, S&P and Fitch were A2, A- and A, respectively, as of May 31, 2022. Moody’s, S&P and Fitch had our ratings on stable outlook as of May 31, 2022. Our credit ratings and outlook remain unchanged as of the date of this Report. The following table displays the notional amounts of our derivative contracts with rating triggers as of May 31, 2022, 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 Receivable (Payable) Impact of rating downgrade trigger: Falls below A3/A- (1) $ 36,110 $ (3,834) $ — $ (3,834) Falls below Baa1/BBB+ 5,503,211 (23,253) 77,069 53,816 Falls to or below Baa2/BBB (2) 326,897 — 5,862 5,862 Total $ 5,866,218 $ (27,087) $ 82,931 $ 55,844 ___________________________ (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 $233 million as of May 31, 2022. These swaps were in an unrealized gain position of $13 million as of May 31, 2022. Our largest counterparty exposure, based on the outstanding notional amount, accounted for approximately 24% of the total outstanding notional amount of derivatives as of both May 31, 2022 and 2021. 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 $27 million |
Equity
Equity | 12 Months Ended |
May 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE 11—EQUITY Total equity increased $742 million to $2,142 million as of May 31, 2022, attributable primarily to our reported net income of $799 million for the year ended May 31, 2022, partially offset by the patronage capital retirement of $58 million authorized by the CFC Board of Directors in July 2021. Table 11.1: Equity May 31, (Dollars in thousands) 2022 2021 Membership fees $ 970 $ 968 Educational fund 2,417 2,157 Total membership fees and educational fund 3,387 3,125 Patronage capital allocated 954,988 923,970 Members’ capital reserve 1,062,286 909,749 Unallocated net income (loss): Prior year-end cumulative derivative forward value losses (461,162) (1,079,739) Current-year derivative forward value gains (1) 553,525 618,577 Current year-end cumulative derivative forward value gains (losses) 92,363 (461,162) Other unallocated net loss (709) (709) Unallocated net gain (loss) 91,654 (461,871) CFC retained equity 2,112,315 1,374,973 Accumulated other comprehensive income (loss) 2,258 (25) Total CFC equity 2,114,573 1,374,948 Noncontrolling interests 27,396 24,931 Total equity $ 2,141,969 $ 1,399,879 ____________________________ (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 c ollected. The general reserve is included in the patronage capital allocated component of CFC’s retained equity. CFC’s bylaws require the allocation to the cooperative educational fund to be at least 0.25% of its net earnings. Funds from the coopera tive 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 2022, the CFC Board of Directors authorized the allocation of $1 million of net earnings for fiscal year 2022 to the cooperative education al fund. In July 2022, the CFC Board of Directors authorized the allocation of net earnings for fiscal year 2022 as follows: $89 million to members in the form of patronage capital and $153 million to the members’ capital reserve. The amount of patronage capital allocated each year by CFC’s Board of Directors is based on adjusted net income, which excludes the impact of derivative forward value gains (losses). See “Item 7. MD&A—Non-GAAP Financial Measures” for information on adjusted net income. In July 2022, the CFC Board of Directors also authorized the retirement of allocated net earnings totaling $59 million, of which $44 million represented 50% of the patronage capital allocation for fiscal year 2022 and $15 million represented the portion of the allocation from net earnings for fiscal year 1997 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 $59 million to members in cash in the second quarter of fiscal year 2023. The remaining portion of the patronage capital allocation for fiscal year 2022 will be retained by CFC for 25 years pursuant to the guidelines adopted by the CFC Board of Directors in June 2009. 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 Directors also authorized the retirement of allocated net earnings 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. The authorized patronage capital retirement amount of $58 million was returned to members in cash in September 2021. The remaining portion of the amount allocated for fiscal year 2021 will be retained by CFC for 25 years under current 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, 2022 and 2021 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, 2022 2021 (Dollars in thousands) Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Beginning balance $ 1,718 $ (1,743) $ (25) $ 2,130 $ (4,040) $ (1,910) Changes in unrealized gains (losses) 4,028 (1,409) 2,619 — 1,545 1,545 Realized (gains) losses reclassified into earnings (623) 287 (336) (412) 752 340 Ending balance $ 5,123 $ (2,865) $ 2,258 $ 1,718 $ (1,743) $ (25) ____________________________ (1) Of the derivative gains reclassified to earnings, a portion is reclassified as a component of the derivative gains (losses) line item and the remainder is reclassified as a component of the interest expense line item 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 reali zed gains of $1 million attributa ble to derivative cash flow hedges from AOCI into earnings over the next 12 months. |
Employee Benefits
Employee Benefits | 12 Months Ended |
May 31, 2022 | |
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 pl an assets, it was more than 80% funded as of January 1, 2022, 2021 and 2020. We made contributions to the Retirement Security Plan of $5 million, $4 million and $5 million in fiscal years 2022, 2021 and 2020, 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 $305,000 for calendar year 2022. 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 was one executive officer participating in this plan in fiscal year 2022, which satisfied the provisions established to receive the benefit from this plan and as such there was no risk of forfeiture of the benefit under the PRP. We will make distributions of any earned benefit from the plan to the executive officer included in the plan and the distributions will be credited back to us by NRECA. Accordi ngly, 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 three and five participants as of May 31, 2022 and 2021, respectively. We recognized net periodic pension expense for this plan of approximately $1 million, $2 million and $2 million in fiscal years 2022, 2021 and 2020, respectively. The unfunded projected benefit obligation of this plan, which is included on our consolidated balance sheets as a component of other liabilities, was $5 million as of both May 31, 2022 and 2021. CFC made contributions to the plan of $2 million, $1 million and $2 million in fiscal years 2022, 2021 and 2020, respectively, for lump-sum settlement payments to fully vested participants of $2 million, $1 million and $2 million in each respective year. Unrecognized pension costs recorded in accumulated other comprehensive income increased to $3 million as of May 31, 2022, from $2 million as of May 31, 2021, largely due to the increase in the projected benefit obligation. 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 2023. As a result of the settlement payments in fiscal years 2022, 2021 and 2020, we recognized a settlement loss of less than $1 million in fiscal year 2022, 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 2022, 2021 and 2020. |
Guarantees
Guarantees | 12 Months Ended |
May 31, 2022 | |
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, 2022 and 2021. Table 13.1: Guarantees Outstanding by Type and Member Class May 31, (Dollars in thousands) 2022 2021 Guarantee type: Long-term tax-exempt bonds (1) $ 122,150 $ 145,025 Letters of credit (2) 450,354 389,735 Other guarantees 158,279 154,320 Total $ 730,783 $ 689,080 Member class: CFC: Distribution $ 314,925 $ 251,023 Power supply 378,516 415,984 Statewide and associate (3) 13,372 5,523 CFC total 706,813 672,530 NCSC 23,970 16,550 Total $ 730,783 $ 689,080 ____________________________ (1) Represents the outstanding principal amount of long-term variable-rate guaranteed bonds. (2) Reflects our maximum potential exposure for letters of credit. (3) Includes CFC guarantees to NCSC and RTFC members totaling $11 million and $3 million as of May 31, 2022 and 2021, respectively. 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. Long-term tax-exempt bonds of $122 million and $145 million as of May 31, 2022 and 2021, respectively, consist 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 $450 million and $390 million as of May 31, 2022 and 2021, respectively, $118 million and $104 million, respectively, were secured. The maturities for the outstanding letters of credit as of May 31, 2022 extend through calenda r yea r 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 years 2022 or 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, 2022, we may be required to issue up to an additional $95 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, 2022. Prior to issuing a letter of credit, we would confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with the letter of credit terms and conditions. The maximum potential exposure for other guarantees was $158 million and $154 million as of May 31, 2022 and 2021, respectively, of which $25 million was secured as of both May 31, 2022 and 2021. 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 $466 million and $415 million and represented 64% and 60% of total guarantees as of May 31, 2022 and 2021, respectively. In addition to the guarantees described above, we were also the liquidity provider for $122 million of variable-rate tax-exempt bonds as of May 31, 2022, 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 2022, 2021 or 2020. Guarantee Liability We recorded a total guarantee liability for noncontingent and contingent exposures related to guarantees and liquidity obligations of $13 million and $10 million as of May 31, 2022 and 2021, 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, and accounts for the substantial majority of our guarantee liability, totaled $12 million and $9 million as of May 31, 2022 and 2021, respectively. The remaining amount pertains to our contingent guarantee exposures. The following table details the scheduled maturities of our outstanding guarantees in each of the five fiscal years following May 31, 2022 and thereafter: Table 13.2: Guarantees Outstanding Maturities (Dollars in thousands) Amount 2023 $ 238,694 2024 60,860 2025 54,766 2026 157,448 2027 19,605 Thereafter 199,410 Total $ 730,783 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
May 31, 2022 | |
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, 2022 and 2021. 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, 2022 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 153,551 $ 153,551 $ 153,551 $ — $ — Restricted cash 7,563 7,563 7,563 — — Equity securities, at fair value 33,758 33,758 33,758 — — Debt securities trading, at fair value 566,146 566,146 — 566,146 — Deferred compensation investments 6,710 6,710 6,710 — — Loans to members, net 29,995,826 28,595,111 — — 28,595,111 Accrued interest receivable 111,418 111,418 — 111,418 — Derivative assets 222,042 222,042 — 222,042 — Total financial assets $ 31,097,014 $ 29,696,299 $ 201,582 $ 899,606 $ 28,595,111 Liabilities: Short-term borrowings $ 4,981,167 $ 4,978,580 $ — $ 4,978,580 $ — Long-term debt 21,545,440 21,106,750 — 12,248,695 8,858,055 Accrued interest payable 131,950 131,950 — 131,950 — Guarantee liability 12,764 13,083 — — 13,083 Derivative liabilities 128,282 128,282 — 128,282 — Subordinated deferrable debt 986,518 960,869 250,800 710,069 — Members’ subordinated certificates 1,234,161 1,234,161 — — 1,234,161 Total financial liabilities $ 29,020,282 $ 28,553,675 $ 250,800 $ 18,197,576 $ 10,105,299 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 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. The fair value of loans held for sale is determined based on the cost, which approximates the fair value, as we sell these loans at par value, concurrently or within a short period of time with the closing of the loan or participation agreement. 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 includes but is not limited to quoted prices and market transactions. Changes in economic conditions or market liquidity generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changes in the valuation technique used, are generally the cause of transfers between levels. We did not have any transfers into or out of Level 3 of the fair value hierarchy during the fiscal years ended May 31, 2022 and 2021. 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, 2022 and 2021, 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 during the years ended May 31, 2022 and 2021. Table 14.2: Assets and Liabilities Measured at Fair Value on a Recurring Basis May 31, 2022 2021 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities, at fair value $ 33,758 $ — $ 33,758 $ 35,102 $ — $ 35,102 Debt securities trading, at fair value — 566,146 566,146 — 576,175 576,175 Deferred compensation investments 6,710 — 6,710 7,222 — 7,222 Derivative assets — 222,042 222,042 — 121,259 121,259 Liabilities: Derivative liabilities — 128,282 128,282 — 584,989 584,989 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. Because quoted market prices are the key input in deriving fair value for these securities, the valuation methodology is classified as Level 1. 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, 2022. 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. Because quoted market prices are the key input in deriving fair value for this plan, the valuation methodology is classified as Level 1. Derivative Instruments Our derivatives primarily consist of OTC interest rate swaps executed under master netting swap agreements that do not have readily available quoted market prices. We derive the fair value of our derivatives using our internal industry-standard discounted cash flow models combined with a supplemental vendor-based model. We rely primarily on market observable inputs for these models, including, market interest rates and forward swap yield curves, as well as the contractual terms of the derivative instrument, as of the valuation date. We include a credit risk valuation adjustment in our valuation of derivatives, which takes into consideration the effect of nonperformance credit risk of the counterparty or our own nonperformance risk and depends on whether the derivative instrument is in a gain, or asset, financial position or in a loss, or liability, financial position. We corroborate our derivative valuations by comparing the amounts to counterparty valuations and third-party pricing sources. We analyze and validate pricing variances, if material, among different external pricing sources. Because observable market data serves as the key inputs in valuing our interest rate swaps, the valuation methodology 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 during the fiscal year ended May 31, 2022 and 2021, which were repaid in full in November 2021. 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 no nonperforming collateral-dependent loans outstanding as of May 31, 2022. We had nonperforming collateral-dependent loans outstanding to two affiliated RTFC telecommunications borrowers totaling $9 million as of May 31, 2021 , which were paid off in November 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. 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
Variable Interest Entities | 12 Months Ended |
May 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | 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, 2022 and 2021. Table 15.1: Consolidated Assets and Liabilities of Variable Interest Entities May 31, (Dollars in thousands) 2022 2021 Assets: Loans outstanding $ 1,178,479 $ 1,127,251 Other assets 9,672 11,343 Total assets $ 1,188,151 $ 1,138,594 Liabilities: Total liabilities $ 22,958 $ 30,187 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, 2022 and 2021. Table 15.2: CFC Exposure Under Credit Commitments to NCSC and RTFC May 31, (Dollars in thousands) 2022 2021 CFC credit commitments to NCSC and RTFC: Total CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,158,583 1,107,185 Credit enhancements: CFC third-party guarantees 23,970 16,550 Other credit enhancements 4,044 8,386 Total credit enhancements (2) 28,014 24,936 Total outstanding commitments 1,186,597 1,132,121 CFC credit commitments available (3) $ 4,313,403 $ 4,367,879 ____________________________ (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
Business Segments | 12 Months Ended |
May 31, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | NOTE 16—BUSINESS SEGMENTS Our activities are conducted through three operating segments, which 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; however, we aggregate segment information for NCSC and RTFC into one reportable segment because neither entity meets the quantitative materiality threshold for separate reporting under the accounting guidance governing segment reporting. Basis of Presentation We present the results of our business segments on the basis in which management internally evaluates operating performance to establish short- and long-term performance goals, develop budgets and forecasts, identify potential trends, allocate resources and make compensation decisions. During fiscal year 2022, we changed the presentation of our segment results to align more closely to the presentation of financial information reviewed regularly by our Chief Executive Officer, the chief operating decision maker, to assess performance and inform the decision-making process in managing our business operations. This presentation change excludes derivative forward value gains and losses from the results of operations for each segment and includes net periodic derivative cash settlement expense amounts as a component of interest expense, which represents the only difference between the accounting and reporting for our business segment results of operations and our consolidated total results of operations. We recast the presentation of our business segment results for the fiscal years ended May 31, 2021 and 2020, to align with the current period presentation. Business Segment Reporting Methodology The results of our business segments are intended to present the separate results for each of the legal entities included in our consolidated financial statements. As discussed in “Note 15—Variable Interest Entities,” all of NCSC’s and RTFC’s funding is either provided by CFC or guaranteed by CFC, the terms and conditions of which are stipulated in a loan and security agreement and a guarantee agreement between CFC and each legal entity. Pursuant to the guarantee agreement, CFC unconditionally guarantees full indemnification to NCSC and RTFC for any credit losses. In addition, CFC manages the business operations of NCSC and RTFC under a management agreement that automatically renews on an annual basis unless the agreement is terminated by either party. We report loans and interest and fees earned on loans based on the legal entity that holds the loans. CFC borrows from various sources to fund the operations of CFC, NCSC and RTFC, the cost of which is reflected in CFC’s interest expense. NCSC and RTFC each borrow from CFC to fund loans to their members, the cost of which is reported as interest expense by each legal entity. CFC charges NCSC and RTFC a management fee, which CFC reports as a component of fee and other income. NCSC and RTFC report the management fee charged by CFC as a component of non-interest expense. CFC and NCSC use derivatives, primarily interest rate swaps, to manage interest rate risk. Because we generally do not elect to apply hedge accounting to our interest rate swaps, changes in the fair value of our interest rate swaps are recorded in earnings in our consolidated total results of operations. However, management excludes the impact of derivative forward value gains and losses and includes the net periodic derivative cash settlement interest expense amounts as a component of interest expense in reporting our segment results of operations. Segment Results and Reconciliation The following tables display segment results of operations for the years ended May 31, 2022, 2021 and 2020, assets attributable to each segment as of May 31, 2022 and 2021 and a reconciliation of total segment amounts to our consolidated total amounts. Table 16.1: Business Segment Information Year Ended May 31, 2022 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Results of operations: Interest income $ 1,133,173 $ 43,295 $ 1,176,468 $ — $ (35,225) $ 1,141,243 Interest expense (705,534) (35,225) (740,759) — 35,225 (705,534) Derivative cash settlements interest expense (99,768) (1,617) (101,385) 101,385 — — Interest expense (805,302) (36,842) (842,144) 101,385 35,225 (705,534) Net interest income 327,871 6,453 334,324 101,385 — 435,709 Benefit for credit losses 17,972 3,334 21,306 — (3,334) 17,972 Net interest income after benefit for credit losses 345,843 9,787 355,630 101,385 (3,334) 453,681 Non-interest income: Fee and other income 22,426 70 22,496 — (5,303) 17,193 Derivative gains: Derivative cash settlements interest expense — — — (101,385) — (101,385) Derivative forward value gains — — — 557,867 — 557,867 Derivative gains — — — 456,482 — 456,482 Investment securities losses (30,179) — (30,179) — — (30,179) Total non-interest income (7,753) 70 (7,683) 456,482 (5,303) 443,496 Non-interest expense: General and administrative expenses (93,465) (8,102) (101,567) — 6,381 (95,186) Losses on early extinguishment of debt (754) — (754) — — (754) Other non-interest expense (1,552) (2,256) (3,808) — 2,256 (1,552) Total non-interest expense (95,771) (10,358) (106,129) — 8,637 (97,492) Income (loss) before income taxes 242,319 (501) 241,818 557,867 — 799,685 Income tax provision — (1,148) (1,148) — — (1,148) Net income (loss) $ 242,319 $ (1,649) $ 240,670 $ 557,867 $ — $ 798,537 May 31, 2022 CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 30,031,459 $ 1,178,479 $ 31,209,938 $ — $ (1,158,584) $ 30,051,354 Deferred loan origination costs 12,032 — 12,032 — — 12,032 Loans to members 30,043,491 1,178,479 31,221,970 — (1,158,584) 30,063,386 Less: Allowance for credit losses (67,560) (2,735) (70,295) — 2,735 (67,560) Loans to members, net 29,975,931 1,175,744 31,151,675 — (1,155,849) 29,995,826 Other assets 1,245,884 97,394 1,343,278 — (87,722) 1,255,556 Total assets $ 31,221,815 $ 1,273,138 $ 32,494,953 $ — $ (1,243,571) $ 31,251,382 Year Ended May 31, 2021 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 1,108,543 $ 43,632 $ 1,152,175 $ — $ (35,574) $ 1,116,601 Interest expense (702,063) (35,574) (737,637) — 35,574 (702,063) Derivative cash settlements interest expense (113,951) (1,694) (115,645) 115,645 — — Interest expense (816,014) (37,268) (853,282) 115,645 35,574 (702,063) Net interest income 292,529 6,364 298,893 115,645 — 414,538 Provision for credit losses (28,507) (3,163) (31,670) — 3,163 (28,507) Net interest income after provision for credit losses 264,022 3,201 267,223 115,645 3,163 386,031 Non-interest income: Fee and other income 23,732 5,963 29,695 — (10,766) 18,929 Derivative gains: Derivative cash settlements interest expense — — — (115,645) — (115,645) Derivative forward value gains — — — 621,946 — 621,946 Derivative gains — — — 506,301 — 506,301 Investment securities gains 1,495 — 1,495 — — 1,495 Total non-interest income 25,227 5,963 31,190 506,301 (10,766) 526,725 Non-interest expense: General and administrative expenses (93,085) (7,849) (100,934) — 6,229 (94,705) Losses on early extinguishment of debt (1,456) — (1,456) — — (1,456) Other non-interest expense (1,619) (1,374) (2,993) — 1,374 (1,619) Total non-interest expense (96,160) (9,223) (105,383) — 7,603 (97,780) Income (loss) before income taxes 193,089 (59) 193,030 621,946 — 814,976 Income tax provision — (998) (998) — — (998) Net income (loss) $ 193,089 $ (1,057) $ 192,032 $ 621,946 $ — $ 813,978 May 31, 2021 CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 28,395,040 $ 1,127,251 $ 29,522,291 $ — $ (1,107,184) $ 28,415,107 Deferred loan origination costs 11,854 — 11,854 — — 11,854 Loans to members 28,406,894 1,127,251 29,534,145 — (1,107,184) 28,426,961 Less: Allowance for credit losses (85,532) (6,069) (91,601) — 6,069 (85,532) Loans to members, net 28,321,362 1,121,182 29,442,544 — (1,101,115) 28,341,429 Other assets 1,285,591 106,367 1,391,958 — (95,024) 1,296,934 Total assets $ 29,606,953 $ 1,227,549 $ 30,834,502 $ — $ (1,196,139) $ 29,638,363 Year Ended May 31, 2020 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 1,143,397 $ 47,107 $ 1,190,504 $ — $ (39,218) $ 1,151,286 Interest expense (820,841) (39,466) (860,307) — 39,218 (821,089) Derivative cash settlements interest expense (54,707) (1,166) (55,873) 55,873 — — Interest expense (875,548) (40,632) (916,180) 55,873 39,218 (821,089) Net interest income 267,849 6,475 274,324 55,873 — 330,197 Provision for credit losses (35,590) (1,272) (36,862) — 1,272 (35,590) Net interest income after provision for credit losses 232,259 5,203 237,462 55,873 1,272 294,607 Non-interest income: Fee and other income 28,309 10,796 39,105 — (16,144) 22,961 Derivative losses: Derivative cash settlements interest expense — — — (55,873) — (55,873) Derivative forward value losses — — — (734,278) — (734,278) Derivative losses — — — (790,151) — (790,151) Investment securities gains 9,431 — 9,431 — — 9,431 Total non-interest income 37,740 10,796 48,536 (790,151) (16,144) (757,759) Non-interest expense: General and administrative expenses (98,808) (8,940) (107,748) — 6,581 (101,167) Losses on early extinguishment of debt (69) (614) (683) — — (683) Other non-interest expense (25,588) (8,291) (33,879) — 8,291 (25,588) Total non-interest expense (124,465) (17,845) (142,310) — 14,872 (127,438) Income (loss) before income taxes 145,534 (1,846) 143,688 (734,278) — (590,590) Income tax benefit — 1,160 1,160 — — 1,160 Net income (loss) $ 145,534 $ (686) $ 144,848 $ (734,278) $ — $ (589,430) ____________________________ (1) Consists of (i) the reclassification of net periodic derivative settlement interest expense amounts, which we report as a component of interest expense for business segment reporting purposes but is included in derivatives gains (losses) in our consolidated total results and (ii) derivative forward value gains and losses, which we exclude from our business segment results but is included in derivatives gains (losses) in our consolidated total results. (2) Consists of intercompany borrowings payable by NCSC and RTFC to CFC and the interest related to those borrowings, management fees paid by NCSC and RTFC to CFC and other intercompany amounts, all of which are eliminated in consolidation. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2022 | |
Accounting Policies [Abstract] | |
The Company | The Company National Rural Utilities Cooperative Finance Corporation (“CFC”) is a tax-exempt 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. 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 | Basis of Presentation and Use of EstimatesThe accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). |
Reclassification | Certain reclassifications and updates have been made to the presentation of information in prior periods to conform to the current period presentation. These reclassifications had no effect on prior years’ net income (loss) or equity. |
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. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. |
COVID-19 | COVID-19Although most health and safety restrictions in response to COVID-19 have been lifted, we cannot predict the potential future impact that the COVID-19 pandemic may have on our operations and financial performance, or the specific ways the pandemic may uniquely impact our members. We continue to closely monitor developments, all of which continue to involve significant uncertainties that depend on future developments, which include, among others, the severity and duration of the current COVID-19 resurgence and its impact on the overall economy and other industry sectors; vaccination rates; the longer-term efficacy of vaccinations; and the potential emergence of new, more transmissible or severe variants. |
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 has not had entities that held foreclosed assets since fiscal year 2017. 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 as of both May 31, 2022 and 2021. |
Investment Securities | 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, 2022 and 2021. Accordingly, we also report our debt securities at fair value on our consolidated balance |
Loans to Members | Loans to Members We originate loans to members and classify loans as held for investment or held for sale based on management’s intent and ability to sell or hold the loan for the foreseeable future or until maturity or payoff. Loans that we have the ability and intent to hold for the foreseeable future are classified as held for investment and 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. Loans that we intend to sell or for which we do not have the ability and intent to hold for the foreseeable future are classified as held for sale and are recorded at the lower of cost or fair value. These loan sales are |
Accrued Interest Receivable | Accrued Interest Receivable As permitted by the Accounting Standards Codification (“ASC”) Topic 326, Financial Instruments—Credit Losses , 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 $94 million and $93 million as of May 31, 2022 and 2021, respectively. We also elected to exclude accrued interest receivable from the credit quality disclosures required under CECL. |
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. |
Troubled Debt Restructurings | 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 the loans in our portfolio, including 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 and Charge-offs | 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 |
Allowance for Credit Losses—Loan Portfolio | 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, 2022 or May 31, 2021. 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. |
Reserve for Credit Losses—Off-Balance Sheet Credit Exposures | 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. |
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 of $8 million, $8 million a nd $9 million in fiscal years 2022, 2021 and 2020, respectively. We perform a fixed assets impairment assessment annually or more frequently, whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable. Based on our annual impairment assessment for fiscal years 2022 and 2021, management determined that there were no indicators of impairment of our fixed assets as of May 31, 2022 and 2021. 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) 2022 2021 Building and building equipment $ 50,177 $ 50,090 Furniture and fixtures 6,254 6,039 Computer software and hardware 55,101 54,582 Other 1,024 1,048 Depreciable fixed assets 112,556 111,759 Less: Accumulated depreciation (73,258) (66,777) Net depreciable fixed assets 39,298 44,982 Land 23,796 23,796 Software development in progress 38,668 23,104 Fixed assets, net $ 101,762 $ 91,882 |
Foreclosed Assets | 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 |
Securities Sold Under Repurchase Agreements | 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. |
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 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 Valuation Processes and Fair Value Hierarchy | 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. |
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 fe deral and state income tax rates resulting from a statutory tax rate. The federal statutory tax rate for both NCSC and RTFC was 21% for each of f iscal years 2022, 2021 and 2020. 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 $1 million and $2 million as of May 31, 2022 and 2021, respectively, primaril |
New Accounting Standards | New Accounting Standards Financial Instruments—Credit Losses, Troubled Debt Restructurings and Vintage Disclosures In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which addresses and amends areas identified by the FASB as part of its post-implementation review of the accounting standard that introduced the CECL model. The amendments eliminate the accounting guidance for TDRs by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross writeoffs for financing receivables and net investment in leases by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for entities, such as CFC, that have adopted the CECL accounting standard. Early adoption, however, is permitted if an entity has adopted the CECL accounting standard. We expect to adopt the guidance for our fiscal y ear beginning June 1, 2023. While the guidance will result in expanded disclosures, we do not expect an impact on our consolidated results of operation, financial condition or liquidity from adoption of this accounting standard. Amendments of Certain U.S. Securities and Exchange Commission (“SEC”) Disclosure Guidance In August 2021, the FASB issued ASU 2021-06, Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946), Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses, and No.33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. This update amends certain SEC disclosure guidance that is included in the accounting standards codification to reflect the SEC’s recent issuance of rules intended to modernize and streamline disclosure requirements. We adopted the SEC’s guidance on the presentation of financial statements and update of statistical disclosures for bank and savings and loan registrants in conjunction with the completion of our Annual Report on Form 10-K for the fiscal year ended May 31, 2021 (“2021 Form 10-K”), which we filed with the SEC on July 30, 2021. The adoption of this disclosure guidance did not have a material impact on our consolidated financial statements. Reference Rate Reform In March 2020, the FASB issu ed 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2022 | |
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) 2022 2021 Building and building equipment $ 50,177 $ 50,090 Furniture and fixtures 6,254 6,039 Computer software and hardware 55,101 54,582 Other 1,024 1,048 Depreciable fixed assets 112,556 111,759 Less: Accumulated depreciation (73,258) (66,777) Net depreciable fixed assets 39,298 44,982 Land 23,796 23,796 Software development in progress 38,668 23,104 Fixed assets, net $ 101,762 $ 91,882 |
Interest Income and Interest _2
Interest Income and Interest Expense (Tables) | 12 Months Ended |
May 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of interest income and 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 2022, 2021 and 2020. Table 2.1: Interest Income and Interest Expense Year Ended May 31, (Dollars in thousands) 2022 2021 2020 Interest income: Loans (1) $ 1,125,292 $ 1,101,505 $ 1,129,883 Investment securities 15,951 15,096 21,403 Total interest income 1,141,243 1,116,601 1,151,286 Interest expense: (2)(3) Short-term borrowings 18,265 14,730 77,995 Long-term debt 581,748 581,292 634,567 Subordinated debt 105,521 106,041 108,527 Total interest expense 705,534 702,063 821,089 Net interest income $ 435,709 $ 414,538 $ 330,197 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized in interest income over the period to maturity using the effective interest method, late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs. (2) 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, 2022 | |
Investments [Abstract] | |
Schedule of composition of investments in trading securities | The following table presents the composition of our investment debt securities portfolio and the fair value as of May 31, 2022 and 2021. Table 3.1: Investments in Debt Securities, at Fair Value May 31, (Dollars in thousands) 2022 2021 Debt securities, at fair value: Certificates of deposit $ — $ 1,501 Commercial paper 9,985 12,365 Corporate debt securities 487,172 497,944 Commercial Agency MBS (1) 7,815 8,683 U.S. state and municipality debt securities 27,778 11,840 Foreign government debt securities 967 999 Other ABS (2) 32,429 42,843 Total debt securities trading, at fair value $ 566,146 $ 576,175 ____________________________ (1) Consists of securities backed by the Federal National Mortgage Association (“ Fannie Mae ”) and the 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. |
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, 2022 and 2021. Table 3.2: Investments in Equity Securities, at Fair Value May 31, (Dollars in thousands) 2022 2021 Equity securities, at fair value: Farmer Mac—Series C non-cumulative preferred stock $ 25,520 $ 27,450 Farmer Mac—Class A common stock 8,238 7,652 Total equity securities, at fair value $ 33,758 $ 35,102 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
May 31, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of loans outstanding to members and unadvanced commitments by loan type and by member class | The following table presents loans to members by legal entity, member class and loan type, as of May 31, 2022 and 2021. Table 4.1: Loans to Members by Member Class and Loan Type May 31, 2022 2021 (Dollars in thousands) Amount % of Total Amount % of Total Member class: CFC: Distribution $ 23,844,242 79 % $ 22,027,423 78 % Power supply 4,901,770 17 5,154,312 18 Statewide and associate 126,863 — 106,121 — Total CFC 28,872,875 96 27,287,856 96 NCSC 710,878 2 706,868 3 RTFC 467,601 2 420,383 1 Total loans outstanding (1) 30,051,354 100 28,415,107 100 Deferred loan origination costs—CFC (2) 12,032 — 11,854 — Loans to members $ 30,063,386 100 % $ 28,426,961 100 % Loan type: Long-term loans: Fixed rate $ 26,952,372 90 % $ 25,514,766 90 % Variable rate 820,201 2 658,579 2 Total long-term loans 27,772,573 92 26,173,345 92 Lines of credit 2,278,781 8 2,241,762 8 Total loans outstanding (1) 30,051,354 100 28,415,107 100 Deferred loan origination costs—CFC (2) 12,032 — 11,854 — Loans to members $ 30,063,386 100 % $ 28,426,961 100 % ____________________________ (1) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. (2) Deferred loan origination costs are recorded on the books of CFC. |
Schedule of analysis of the age of the recorded investment in loans outstanding by member class | The following table presents the payment status, by legal entity and member class, of loans outstanding as of May 31, 2022 and 2021. Table 4.2: Payment Status of Loans Outstanding May 31, 2022 (Dollars in thousands) Current 30-89 Days Past Due > 90 Days Total Total Loans Outstanding Nonaccrual Loans Member class: CFC: Distribution $ 23,844,242 $ — $ — $ — $ 23,844,242 $ — Power supply 4,787,832 28,389 85,549 113,938 4,901,770 227,790 Statewide and associate 126,863 — — — 126,863 — CFC total 28,758,937 28,389 85,549 113,938 28,872,875 227,790 NCSC 710,878 — — — 710,878 — RTFC 467,601 — — — 467,601 — Total loans outstanding $ 29,937,416 $ 28,389 $ 85,549 $ 113,938 $ 30,051,354 $ 227,790 Percentage of total loans 99.62 % 0.09 % 0.29 % 0.38 % 100.00 % 0.76 % May 31, 2021 (Dollars in thousands) Current 30-89 Days Past Due > 90 Days Total Total Loans Outstanding Nonaccrual Loans Member class: 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 % |
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 legal entity and member class, of these loans as of May 31, 2022 and 2021. Table 4.3: Trouble Debt Restructurings May 31, 2022 2021 (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: Member class: CFC—Distribution 1 $ 5,092 0.02 % 1 $ 5,379 0.02 % RTFC 1 4,092 0.01 1 4,592 0.02 Total TDR loans 2 $ 9,184 0.03 % 2 $ 9,971 0.04 % Performance status of TDR loans: Performing TDR loans 2 $ 9,184 0.03 % 2 $ 9,971 0.04 % Total TDR loans 2 $ 9,184 0.03 % 2 $ 9,971 0.04 % ____________________________ |
Schedule of non-performing loans | The following table presents the outstanding balance of nonperforming loans, by legal entity and member class, as of May 31, 2022 and 2021. Table 4.4: Nonperforming Loans May 31, 2022 2021 (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: Member class: CFC—Power supply (2) 3 $ 227,790 0.76 % 2 $ 228,312 0.81 % RTFC — — — 2 9,185 0.03 Total nonperforming loans 3 $ 227,790 0.76 % 4 $ 237,497 0.84 % ____________________________ (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 in 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, 2022 Term Loans by Fiscal Year of Origination (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Total May 31, 2021 Pass CFC: Distribution $ 2,533,579 $ 1,696,580 $ 1,882,003 $ 1,192,639 $ 1,451,710 $ 13,300,784 $ 1,538,709 $ 23,596,004 $ 21,808,099 Power supply 374,185 559,384 188,864 404,425 244,840 2,637,162 265,120 4,673,980 4,517,408 Statewide and associate 33,896 2,250 18,601 3,282 — 19,998 34,583 112,610 90,261 CFC total 2,941,660 2,258,214 2,089,468 1,600,346 1,696,550 15,957,944 1,838,412 28,382,594 26,415,768 NCSC 49,141 39,747 232,224 4,067 43,079 233,992 108,628 710,878 706,868 RTFC 92,446 88,526 44,851 10,032 22,198 184,382 21,074 463,509 406,606 Total pass $ 3,083,247 $ 2,386,487 $ 2,366,543 $ 1,614,445 $ 1,761,827 $ 16,376,318 $ 1,968,114 $ 29,556,981 $ 27,529,242 Special mention CFC: Distribution $ — $ 4,889 $ — $ 5,102 $ 932 $ 12,197 $ 225,118 $ 248,238 $ 219,324 Power supply — — — — — — — — 29,611 Statewide and associate — — — 5,000 3,821 5,432 — 14,253 15,860 CFC total — 4,889 — 10,102 4,753 17,629 225,118 262,491 264,795 RTFC — — — — — 4,092 — 4,092 4,592 Total special mention $ — $ 4,889 $ — $ 10,102 $ 4,753 $ 21,721 $ 225,118 $ 266,583 $ 269,387 Substandard CFC: Power supply $ — $ — $ — $ — $ — $ — $ — $ — $ 378,981 Total substandard $ — $ — $ — $ — $ — $ — $ — $ — $ 378,981 Doubtful CFC: Power supply $ — $ — $ — $ — $ — $ 142,241 $ 85,549 $ 227,790 $ 228,312 CFC total — — — — — 142,241 85,549 227,790 228,312 RTFC — — — — — — — — 9,185 Total doubtful $ — $ — $ — $ — $ — $ 142,241 $ 85,549 $ 227,790 $ 237,497 Total criticized loans $ — $ 4,889 $ — $ 10,102 $ 4,753 $ 163,962 $ 310,667 $ 494,373 $ 885,865 Total loans outstanding $ 3,083,247 $ 2,391,376 $ 2,366,543 $ 1,624,547 $ 1,766,580 $ 16,540,280 $ 2,278,781 $ 30,051,354 $ 28,415,107 |
Schedule of unadvanced commitments | The following table presents unadvanced loan commitments, by member class and by loan type, as of May 31, 2022 and 2021. Table 4.6: Unadvanced Commitments by Member Class and Loan Type May 31, (Dollars in thousands) 2022 2021 Member class: CFC: Distribution $ 9,230,197 $ 9,387,070 Power supply 3,835,535 3,970,698 Statewide and associate 183,845 161,340 Total CFC 13,249,577 13,519,108 NCSC 551,901 551,125 RTFC 309,724 286,806 Total unadvanced commitments $ 14,111,202 $ 14,357,039 Loan type: (1) Long-term loans: Fixed rate $ — $ — Variable rate 5,357,205 5,771,813 Total long-term loans 5,357,205 5,771,813 Lines of credit 8,753,997 8,585,226 Total unadvanced commitments $ 14,111,202 $ 14,357,039 ____________________________ (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. |
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, 2022 and the related maturities in each fiscal year during the five-year period ended May 31, 2027, and thereafter. Table 4.7: Unadvanced Loan Commitments Available Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2023 2024 2025 2026 2027 Thereafter Line of credit loans $ 8,753,997 $ 4,160,953 $ 1,139,303 $ 1,588,513 $ 363,001 $ 1,431,073 $ 71,154 Long-term loans 5,357,205 618,042 1,473,024 732,910 934,832 1,445,115 153,282 Total $ 14,111,202 $ 4,778,995 $ 2,612,327 $ 2,321,423 $ 1,297,833 $ 2,876,188 $ 224,436 |
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 maturity amounts in each fiscal year during the five-year period ending May 31, 2027. Table 4.8: Unconditional Committed Lines of Credit—Available Balance Available Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2023 2024 2025 2026 2027 Committed lines of credit $ 3,203,023 $ 272,083 $ 497,722 $ 1,141,980 $ 243,699 $ 1,047,539 |
Summary of pledged loans | Table 4.9 displays the borrowing amount under each of our secured borrowing agreements and the corresponding loans outstanding pledged as collateral as of May 31, 2022 and 2021. See “Note 6—Short-Term Borrowings” and “Note 7—Long-Term Debt” for information on our secured borrowings and other borrowings. Table 4.9: Pledged Loans May 31, (Dollars in thousands) 2022 2021 Collateral trust bonds: 2007 indenture: Collateral trust bonds outstanding $ 7,072,711 $ 7,422,711 Pledged collateral: Distribution system mortgage notes pledged 8,564,596 8,400,293 RUS-guaranteed loans qualifying as permitted investments 114,654 121,679 Total pledged collateral 8,679,250 8,521,972 1994 indenture: Collateral trust bonds outstanding $ 25,000 $ 30,000 Pledged collateral: Distribution system mortgage notes pledged 29,616 34,924 Guaranteed Underwriter Program: Notes payable outstanding $ 6,105,473 $ 6,269,303 Pledged collateral: Distribution and power supply system mortgage notes pledged 6,904,591 7,150,240 Farmer Mac: Notes payable outstanding $ 3,094,679 $ 2,977,909 Pledged collateral: Distribution and power supply system mortgage notes pledged 3,445,358 3,440,307 Clean Renewable Energy Bonds Series 2009A: Notes payable outstanding $ 2,755 $ 4,412 Pledged collateral: Distribution and power supply system mortgage notes pledged 3,138 5,316 Cash 392 394 Total pledged collateral 3,530 5,710 |
Allowance for Credit Losses - (
Allowance for Credit Losses - (Tables) | 12 Months Ended |
May 31, 2022 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of changes in allowance for credit losses | Table 5.1: Changes in Allowance for Credit Losses Year Ended May 31, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of May 31, 2021 $ 13,426 $ 64,646 $ 1,391 $ 79,463 $ 1,374 $ 4,695 $ 85,532 Provision (benefit) for credit losses 2,355 (16,853) (140) (14,638) 75 (3,409) (17,972) Balance as of May 31, 2022 $ 15,781 $ 47,793 $ 1,251 $ 64,825 $ 1,449 $ 1,286 $ 67,560 Year Ended May 31, 2021 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & 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) CFC Distribution CFC Power Supply CFC Statewide & 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 |
Schedule of allowance for credit losses components | The following tables present, by legal entity and member class, the components of our allowance for credit losses as of May 31, 2022 and 2021. Table 5.2: Allowance for Credit Losses Components May 31, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 15,781 $ 9,355 $ 1,251 $ 26,387 $ 1,449 $ 1,040 $ 28,876 Asset-specific allowance (1) — 38,438 — 38,438 — 246 38,684 Total allowance for credit losses $ 15,781 $ 47,793 $ 1,251 $ 64,825 $ 1,449 $ 1,286 $ 67,560 Loans outstanding: (1) Collectively evaluated loans $ 23,839,150 $ 4,673,980 $ 126,863 $ 28,639,993 $ 710,878 $ 463,509 $ 29,814,380 Individually evaluated loans (1) 5,092 227,790 — 232,882 — 4,092 236,974 Total loans outstanding $ 23,844,242 $ 4,901,770 $ 126,863 $ 28,872,875 $ 710,878 $ 467,601 $ 30,051,354 Allowance ratios: Collective allowance coverage ratio (2) 0.07 % 0.20 % 0.99 % 0.09 % 0.20 % 0.22 % 0.10 % Asset-specific allowance coverage ratio (3) — 16.87 — 16.51 — 6.01 16.32 Total allowance coverage ratio (4) 0.07 0.98 0.99 0.22 0.20 0.28 0.22 May 31, 2021 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & 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 (5) — 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: (1) Collectively evaluated loans $ 22,022,044 $ 4,926,000 $ 106,121 $ 27,054,165 $ 706,868 $ 406,606 $ 28,167,639 Individually evaluated loans 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 coverage ratios: Collective allowance coverage ratio (2) 0.06 % 0.51 % 1.31 % 0.15 % 0.19 % 0.28 % 0.15 % Asset-specific allowance coverage ratio (3) — 17.32 — 16.92 — 25.75 17.41 Total allowance coverage ratio (4) 0.06 1.25 1.31 0.29 0.19 1.12 0.30 ___________________________ (1) Represents the unpaid principal amount of loans as of the end of each period. Excludes unamortized deferred loan origination costs of $12 million as of both May 31, 2022 and 2021. (2) Calculated based on the collective allowance component at period-end divided by collectively evaluated loans outstanding at period-end. (3) Calculated based on the asset-specific allowance component at period-end divided by individually evaluated loans outstanding at period-end. (4) Calculated based on the total allowance for credit losses at period-end divided by total loans outstanding at period-end. (5) In addition, we had less than $1 million in letters of credit outstanding to Brazos, for which the reserve is included in the asset-specific allowance as of May 31, 2021. |
Schedule of impaired financing receivables | 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 presents, by company, the components of our recorded investment and interest income recognized for the year ended May 31, 2020. Table 5.3: Average Recorded Investment and Interest Income Recognized on Individually Impaired Loans—Incurred Loss Model Year Ended May 31, 2020 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC $ 11,834 $ 568 RTFC 5,361 268 Total impaired loans $ 17,195 $ 836 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
May 31, 2022 | |
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, 2022 and 2021. Table 6.1: Short-Term Borrowings Sources and Weighted-Average Interest Rates May 31, 2022 2021 (Dollars in thousands) Amount Weighted- Average Amount Weighted-Average Short-term borrowings: Commercial paper: Commercial paper dealers, net of discounts $ 1,024,813 0.96 % $ 894,977 0.16 % Commercial paper members, at par 1,358,069 0.92 1,124,607 0.14 Total commercial paper 2,382,882 0.94 2,019,584 0.15 Select notes to members 1,753,441 1.11 1,539,150 0.30 Daily liquidity fund notes to members 427,790 0.80 460,556 0.08 Medium-term notes to members 417,054 0.66 362,691 0.42 Securities sold under repurchase agreements — — 200,115 0.30 Total short-term borrowings $ 4,981,167 0.97 $ 4,582,096 0.22 |
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, 2022. Table 6.2: Committed Bank Revolving Line of Credit Agreements Available Amounts May 31, 2022 (Dollars in millions) Total Commitment Letters of Credit Outstanding Amount Available for Access Maturity Annual Facility Fee (1) Bank revolving line of credit term: 3-year agreement $ 1,245 $ — $ 1,245 November 28, 2024 7.5 bps 5-year agreement 1,355 3 1,352 November 28, 2025 10.0 bps Total $ 2,600 $ 3 $ 2,597 ___________________________ (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, 2022 | |
Debt Instruments [Abstract] | |
Summary of long-term debt outstanding and the weighted-average effective interest rates | The following table displays, by debt product type, long-term debt outstanding, and the weighted-average interest rate and maturity date as of May 31, 2022 and 2021. Long-term debt outstanding totaled $21,545 million and accounted for 75% of total debt outstanding as of May 31, 2022, compared with $20,603 million and 75% of total debt outstanding as of May 31, 2021. Long-term debt with fixed- and variable-rate accounted for 90% and 10%, respectively, of our total long-term debt outstanding as of May 31, 2022, compared with 89% and 11%, respectively, of our total long-term debt outstanding as of May 31, 2021. Table 7.1: Long-Term Debt—Debt Product Types and Weighted-Average Interest Rates May 31, 2022 2021 (Dollars in thousands) Amount Weighted- Average Maturity Amount Weighted- Average Maturity Secured long-term debt: Collateral trust bonds $ 7,097,711 3.17 % 2023-2049 $ 7,452,711 3.15 % 2022-2049 Unamortized discount (216,608) (227,046) Debt issuance costs (32,613) (33,721) Total collateral trust bonds 6,848,490 7,191,944 Guaranteed Underwriter Program notes payable 6,105,473 2.69 2025-2052 6,269,303 2.76 2025-2041 Farmer Mac notes payable 3,094,679 2.33 2022-2049 2,977,909 1.68 2021-2049 Other secured notes payable 2,755 3.10 2022-2023 4,412 3.14 2021-2023 Debt issuance costs (9) (22) Total other secured notes payable 2,746 4,390 Total secured notes payable 9,202,898 9,251,602 Total secured long-term debt 16,051,388 2.83 16,443,546 2.74 Unsecured long-term debt: Medium-term notes sold through dealers 5,263,496 2.20 2022-2032 3,943,728 2.31 2021-2032 Medium-term notes sold to members 250,397 2.70 2022-2037 232,346 2.61 2021-2037 Medium-term notes sold through dealers and to members 5,513,893 2.22 4,176,074 2.33 Unamortized discount (2,086) (2,307) Debt issuance costs (19,723) (18,036) Total unsecured medium-term notes 5,492,084 4,155,731 Unsecured notes payable 1,979 — 2022-2023 3,886 — 2021-2023 Unamortized discount (10) (35) Debt issuance costs (1) (5) Total unsecured notes payable 1,968 3,846 Total unsecured long-term debt 5,494,052 2.22 4,159,577 2.33 Total long-term debt $ 21,545,440 2.68 $ 20,603,123 2.66 |
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, 2022 and thereafter. Table 7.2: Long-Term Debt—Maturities and Weighted-Average Interest Rates (Dollars in thousands) Maturity Amount Weighted-Average 2023 $ 1,896,355 1.93 % 2024 2,143,516 1.91 2025 2,211,643 1.85 2026 2,419,500 2.98 2027 1,602,329 1.94 Thereafter 11,543,147 3.14 Total $ 21,816,490 2.68 |
Subordinated Deferrable Debt (T
Subordinated Deferrable Debt (Tables) | 12 Months Ended |
May 31, 2022 | |
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, 2022 and 2021. Table 8.1: Subordinated Deferrable Debt Outstanding and Weighted-Average Interest Rates May 31, 2022 2021 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 (13,482) (13,685) Total subordinated deferrable debt $ 986,518 5.11 $ 986,315 5.11 |
Members' Subordinated Certifi_2
Members' Subordinated Certificates (Tables) | 12 Months Ended |
May 31, 2022 | |
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, 2022 and 2021. Table 8.1: Subordinated Deferrable Debt Outstanding and Weighted-Average Interest Rates May 31, 2022 2021 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 (13,482) (13,685) Total subordinated deferrable debt $ 986,518 5.11 $ 986,315 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, 2022 and thereafter. Table 7.2: Long-Term Debt—Maturities and Weighted-Average Interest Rates (Dollars in thousands) Maturity Amount Weighted-Average 2023 $ 1,896,355 1.93 % 2024 2,143,516 1.91 2025 2,211,643 1.85 2026 2,419,500 2.98 2027 1,602,329 1.94 Thereafter 11,543,147 3.14 Total $ 21,816,490 2.68 |
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, 2022 and 2021. Table 9.1: Members’ Subordinated Certificates Outstanding and Weighted-Average Interest Rates May 31, 2022 2021 (Dollars in thousands) Amounts Weighted- Amounts Weighted- Membership subordinated certificates: Certificates maturing 2025 through 2119 $ 628,591 $ 628,582 Subscribed and unissued (1) 12 12 Total membership subordinated certificates 628,603 4.95 % 628,594 4.95 % Loan and guarantee subordinated certificates: Interest-bearing loan subordinated certificates maturing through 2045 216,266 223,067 Non-interest-bearing loan subordinated certificates maturing through 2047 121,744 132,203 Subscribed and unissued (1) 45 45 Total loan subordinated certificates 338,055 2.64 355,315 2.61 Interest-bearing guarantee subordinated certificates maturing through 2044 27,333 5.90 31,581 6.06 Total loan and guarantee subordinated certificates 365,388 2.88 386,896 2.89 Member capital securities: Securities maturing through 2052 240,170 5.00 239,170 5.00 Total members’ subordinated certificates $ 1,234,161 4.35 $ 1,254,660 4.32 ___________________________ (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, 2022 and thereafter. Table 9.2: Members’ Subordinated Certificate Maturities and Weighted-Average Interest Rates (Dollars in thousands) Amount Maturing (1) Weighted-Average 2023 $ 17,034 4.00 % 2024 8,092 2.19 2025 8,594 2.47 2026 53,515 2.92 2027 8,716 1.87 Thereafter 1,138,153 4.47 Total $ 1,234,104 4.35 ___________________________ (1) E xcludes $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 $175 million are amortizing annually based on the unpaid principal balance of the related loan. Amortization payments on these certificates totaled $12 million in fiscal year 2022 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, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative notional amount and weighted-average rates | 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, 2022 and 2021. 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, 2022 2021 (Dollars in thousands) Notional Weighted- Weighted- Notional Weighted- Weighted- Pay-fixed swaps $ 5,957,631 2.60 % 1.24 % $ 6,579,516 2.65 % 0.20 % Receive-fixed swaps 1,980,000 1.53 2.86 2,399,000 0.92 2.80 Subtotal 7,937,631 2.33 1.64 8,978,516 2.19 0.89 Forward pay-fixed swaps 124,000 — Total interest rate swaps $ 8,061,631 $ 8,978,516 |
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, 2022. Table 10.2: Derivative Notional Amount Maturities Notional Amount Notional Amortization and Maturities (Dollars in thousands) 2023 2024 2025 2026 2027 Thereafter Interest rate swaps $8,061,631 $542,398 $615,574 $100,000 $787,895 $43,751 $5,972,013 |
Schedule of derivative instruments 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, 2022 and 2021. May 31, 2022 2021 (Dollars in thousands) Fair Value Notional Amount (1) Fair Value Notional Amount Derivative assets: Interest rate swaps $ 222,042 $ 4,791,699 $ 121,259 $ 2,560,618 Total derivative assets $ 222,042 $ 4,791,699 $ 121,259 $ 2,560,618 Derivative liabilities: Interest rate swaps $ 128,282 $ 3,269,932 $ 584,989 $ 6,417,898 Total derivative liabilities $ 128,282 $ 3,269,932 $ 584,989 $ 6,417,898 ____________________________ (1) The notional amount includes $124 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 subsequent to May 31, 2022, outstanding as of May 31, 2022. The fair value of these swaps as of May 31, 2022 is included in the above table and in our consolidated financial statements. |
Schedule of 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, 2022 and 2021, and provides information on the impact of netting provisions under our master swap agreements and collateral pledged, if any. Table 10.4: Derivative Gross and Net Amounts May 31, 2022 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 222,042 $ — $ 222,042 $ 103,228 $ — $ 118,814 Derivative liabilities: Interest rate swaps 128,282 — 128,282 103,228 — 25,054 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 |
Schedule of 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, 2022 and 2021, and provides information on the impact of netting provisions under our master swap agreements and collateral pledged, if any. Table 10.4: Derivative Gross and Net Amounts May 31, 2022 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 222,042 $ — $ 222,042 $ 103,228 $ — $ 118,814 Derivative liabilities: Interest rate swaps 128,282 — 128,282 103,228 — 25,054 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 |
Summary of gains and losses recorded on the consolidated statements of operations for the entity's derivatives | The following table presents the components of the derivative gains (losses) reported in our consolidated statements of operations for fiscal years 2022, 2021 and 2020. 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) 2022 2021 2020 Derivative gains (losses) attributable to: Derivative cash settlements interest expense $ (101,385) $ (115,645) $ (55,873) Derivative forward value gains (losses) 557,867 621,946 (734,278) Derivative gains (losses) $ 456,482 $ 506,301 $ (790,151) |
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, 2022, 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 Receivable (Payable) Impact of rating downgrade trigger: Falls below A3/A- (1) $ 36,110 $ (3,834) $ — $ (3,834) Falls below Baa1/BBB+ 5,503,211 (23,253) 77,069 53,816 Falls to or below Baa2/BBB (2) 326,897 — 5,862 5,862 Total $ 5,866,218 $ (27,087) $ 82,931 $ 55,844 ___________________________ (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, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of components of equity | Table 11.1: Equity May 31, (Dollars in thousands) 2022 2021 Membership fees $ 970 $ 968 Educational fund 2,417 2,157 Total membership fees and educational fund 3,387 3,125 Patronage capital allocated 954,988 923,970 Members’ capital reserve 1,062,286 909,749 Unallocated net income (loss): Prior year-end cumulative derivative forward value losses (461,162) (1,079,739) Current-year derivative forward value gains (1) 553,525 618,577 Current year-end cumulative derivative forward value gains (losses) 92,363 (461,162) Other unallocated net loss (709) (709) Unallocated net gain (loss) 91,654 (461,871) CFC retained equity 2,112,315 1,374,973 Accumulated other comprehensive income (loss) 2,258 (25) Total CFC equity 2,114,573 1,374,948 Noncontrolling interests 27,396 24,931 Total equity $ 2,141,969 $ 1,399,879 ____________________________ |
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, 2022 and 2021 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, 2022 2021 (Dollars in thousands) Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Beginning balance $ 1,718 $ (1,743) $ (25) $ 2,130 $ (4,040) $ (1,910) Changes in unrealized gains (losses) 4,028 (1,409) 2,619 — 1,545 1,545 Realized (gains) losses reclassified into earnings (623) 287 (336) (412) 752 340 Ending balance $ 5,123 $ (2,865) $ 2,258 $ 1,718 $ (1,743) $ (25) ____________________________ (1) Of the derivative gains reclassified to earnings, a portion is reclassified as a component of the derivative gains (losses) line item and the remainder is reclassified as a component of the interest expense line item 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, 2022 | |
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, 2022 and 2021. Table 13.1: Guarantees Outstanding by Type and Member Class May 31, (Dollars in thousands) 2022 2021 Guarantee type: Long-term tax-exempt bonds (1) $ 122,150 $ 145,025 Letters of credit (2) 450,354 389,735 Other guarantees 158,279 154,320 Total $ 730,783 $ 689,080 Member class: CFC: Distribution $ 314,925 $ 251,023 Power supply 378,516 415,984 Statewide and associate (3) 13,372 5,523 CFC total 706,813 672,530 NCSC 23,970 16,550 Total $ 730,783 $ 689,080 ____________________________ (1) Represents the outstanding principal amount of long-term 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, 2022 and thereafter: Table 13.2: Guarantees Outstanding Maturities (Dollars in thousands) Amount 2023 $ 238,694 2024 60,860 2025 54,766 2026 157,448 2027 19,605 Thereafter 199,410 Total $ 730,783 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
May 31, 2022 | |
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, 2022 and 2021. 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, 2022 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 153,551 $ 153,551 $ 153,551 $ — $ — Restricted cash 7,563 7,563 7,563 — — Equity securities, at fair value 33,758 33,758 33,758 — — Debt securities trading, at fair value 566,146 566,146 — 566,146 — Deferred compensation investments 6,710 6,710 6,710 — — Loans to members, net 29,995,826 28,595,111 — — 28,595,111 Accrued interest receivable 111,418 111,418 — 111,418 — Derivative assets 222,042 222,042 — 222,042 — Total financial assets $ 31,097,014 $ 29,696,299 $ 201,582 $ 899,606 $ 28,595,111 Liabilities: Short-term borrowings $ 4,981,167 $ 4,978,580 $ — $ 4,978,580 $ — Long-term debt 21,545,440 21,106,750 — 12,248,695 8,858,055 Accrued interest payable 131,950 131,950 — 131,950 — Guarantee liability 12,764 13,083 — — 13,083 Derivative liabilities 128,282 128,282 — 128,282 — Subordinated deferrable debt 986,518 960,869 250,800 710,069 — Members’ subordinated certificates 1,234,161 1,234,161 — — 1,234,161 Total financial liabilities $ 29,020,282 $ 28,553,675 $ 250,800 $ 18,197,576 $ 10,105,299 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 |
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, 2022 and 2021, 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 during the years ended May 31, 2022 and 2021. Table 14.2: Assets and Liabilities Measured at Fair Value on a Recurring Basis May 31, 2022 2021 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities, at fair value $ 33,758 $ — $ 33,758 $ 35,102 $ — $ 35,102 Debt securities trading, at fair value — 566,146 566,146 — 576,175 576,175 Deferred compensation investments 6,710 — 6,710 7,222 — 7,222 Derivative assets — 222,042 222,042 — 121,259 121,259 Liabilities: Derivative liabilities — 128,282 128,282 — 584,989 584,989 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
May 31, 2022 | |
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, 2022 and 2021. Table 15.1: Consolidated Assets and Liabilities of Variable Interest Entities May 31, (Dollars in thousands) 2022 2021 Assets: Loans outstanding $ 1,178,479 $ 1,127,251 Other assets 9,672 11,343 Total assets $ 1,188,151 $ 1,138,594 Liabilities: Total liabilities $ 22,958 $ 30,187 |
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, 2022 and 2021. Table 15.2: CFC Exposure Under Credit Commitments to NCSC and RTFC May 31, (Dollars in thousands) 2022 2021 CFC credit commitments to NCSC and RTFC: Total CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,158,583 1,107,185 Credit enhancements: CFC third-party guarantees 23,970 16,550 Other credit enhancements 4,044 8,386 Total credit enhancements (2) 28,014 24,936 Total outstanding commitments 1,186,597 1,132,121 CFC credit commitments available (3) $ 4,313,403 $ 4,367,879 ____________________________ (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, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment presentation for the consolidated statements of operations and consolidated balance sheets | The following tables display segment results of operations for the years ended May 31, 2022, 2021 and 2020, assets attributable to each segment as of May 31, 2022 and 2021 and a reconciliation of total segment amounts to our consolidated total amounts. Table 16.1: Business Segment Information Year Ended May 31, 2022 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Results of operations: Interest income $ 1,133,173 $ 43,295 $ 1,176,468 $ — $ (35,225) $ 1,141,243 Interest expense (705,534) (35,225) (740,759) — 35,225 (705,534) Derivative cash settlements interest expense (99,768) (1,617) (101,385) 101,385 — — Interest expense (805,302) (36,842) (842,144) 101,385 35,225 (705,534) Net interest income 327,871 6,453 334,324 101,385 — 435,709 Benefit for credit losses 17,972 3,334 21,306 — (3,334) 17,972 Net interest income after benefit for credit losses 345,843 9,787 355,630 101,385 (3,334) 453,681 Non-interest income: Fee and other income 22,426 70 22,496 — (5,303) 17,193 Derivative gains: Derivative cash settlements interest expense — — — (101,385) — (101,385) Derivative forward value gains — — — 557,867 — 557,867 Derivative gains — — — 456,482 — 456,482 Investment securities losses (30,179) — (30,179) — — (30,179) Total non-interest income (7,753) 70 (7,683) 456,482 (5,303) 443,496 Non-interest expense: General and administrative expenses (93,465) (8,102) (101,567) — 6,381 (95,186) Losses on early extinguishment of debt (754) — (754) — — (754) Other non-interest expense (1,552) (2,256) (3,808) — 2,256 (1,552) Total non-interest expense (95,771) (10,358) (106,129) — 8,637 (97,492) Income (loss) before income taxes 242,319 (501) 241,818 557,867 — 799,685 Income tax provision — (1,148) (1,148) — — (1,148) Net income (loss) $ 242,319 $ (1,649) $ 240,670 $ 557,867 $ — $ 798,537 May 31, 2022 CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 30,031,459 $ 1,178,479 $ 31,209,938 $ — $ (1,158,584) $ 30,051,354 Deferred loan origination costs 12,032 — 12,032 — — 12,032 Loans to members 30,043,491 1,178,479 31,221,970 — (1,158,584) 30,063,386 Less: Allowance for credit losses (67,560) (2,735) (70,295) — 2,735 (67,560) Loans to members, net 29,975,931 1,175,744 31,151,675 — (1,155,849) 29,995,826 Other assets 1,245,884 97,394 1,343,278 — (87,722) 1,255,556 Total assets $ 31,221,815 $ 1,273,138 $ 32,494,953 $ — $ (1,243,571) $ 31,251,382 Year Ended May 31, 2021 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 1,108,543 $ 43,632 $ 1,152,175 $ — $ (35,574) $ 1,116,601 Interest expense (702,063) (35,574) (737,637) — 35,574 (702,063) Derivative cash settlements interest expense (113,951) (1,694) (115,645) 115,645 — — Interest expense (816,014) (37,268) (853,282) 115,645 35,574 (702,063) Net interest income 292,529 6,364 298,893 115,645 — 414,538 Provision for credit losses (28,507) (3,163) (31,670) — 3,163 (28,507) Net interest income after provision for credit losses 264,022 3,201 267,223 115,645 3,163 386,031 Non-interest income: Fee and other income 23,732 5,963 29,695 — (10,766) 18,929 Derivative gains: Derivative cash settlements interest expense — — — (115,645) — (115,645) Derivative forward value gains — — — 621,946 — 621,946 Derivative gains — — — 506,301 — 506,301 Investment securities gains 1,495 — 1,495 — — 1,495 Total non-interest income 25,227 5,963 31,190 506,301 (10,766) 526,725 Non-interest expense: General and administrative expenses (93,085) (7,849) (100,934) — 6,229 (94,705) Losses on early extinguishment of debt (1,456) — (1,456) — — (1,456) Other non-interest expense (1,619) (1,374) (2,993) — 1,374 (1,619) Total non-interest expense (96,160) (9,223) (105,383) — 7,603 (97,780) Income (loss) before income taxes 193,089 (59) 193,030 621,946 — 814,976 Income tax provision — (998) (998) — — (998) Net income (loss) $ 193,089 $ (1,057) $ 192,032 $ 621,946 $ — $ 813,978 May 31, 2021 CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 28,395,040 $ 1,127,251 $ 29,522,291 $ — $ (1,107,184) $ 28,415,107 Deferred loan origination costs 11,854 — 11,854 — — 11,854 Loans to members 28,406,894 1,127,251 29,534,145 — (1,107,184) 28,426,961 Less: Allowance for credit losses (85,532) (6,069) (91,601) — 6,069 (85,532) Loans to members, net 28,321,362 1,121,182 29,442,544 — (1,101,115) 28,341,429 Other assets 1,285,591 106,367 1,391,958 — (95,024) 1,296,934 Total assets $ 29,606,953 $ 1,227,549 $ 30,834,502 $ — $ (1,196,139) $ 29,638,363 Year Ended May 31, 2020 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 1,143,397 $ 47,107 $ 1,190,504 $ — $ (39,218) $ 1,151,286 Interest expense (820,841) (39,466) (860,307) — 39,218 (821,089) Derivative cash settlements interest expense (54,707) (1,166) (55,873) 55,873 — — Interest expense (875,548) (40,632) (916,180) 55,873 39,218 (821,089) Net interest income 267,849 6,475 274,324 55,873 — 330,197 Provision for credit losses (35,590) (1,272) (36,862) — 1,272 (35,590) Net interest income after provision for credit losses 232,259 5,203 237,462 55,873 1,272 294,607 Non-interest income: Fee and other income 28,309 10,796 39,105 — (16,144) 22,961 Derivative losses: Derivative cash settlements interest expense — — — (55,873) — (55,873) Derivative forward value losses — — — (734,278) — (734,278) Derivative losses — — — (790,151) — (790,151) Investment securities gains 9,431 — 9,431 — — 9,431 Total non-interest income 37,740 10,796 48,536 (790,151) (16,144) (757,759) Non-interest expense: General and administrative expenses (98,808) (8,940) (107,748) — 6,581 (101,167) Losses on early extinguishment of debt (69) (614) (683) — — (683) Other non-interest expense (25,588) (8,291) (33,879) — 8,291 (25,588) Total non-interest expense (124,465) (17,845) (142,310) — 14,872 (127,438) Income (loss) before income taxes 145,534 (1,846) 143,688 (734,278) — (590,590) Income tax benefit — 1,160 1,160 — — 1,160 Net income (loss) $ 145,534 $ (686) $ 144,848 $ (734,278) $ — $ (589,430) ____________________________ (1) Consists of (i) the reclassification of net periodic derivative settlement interest expense amounts, which we report as a component of interest expense for business segment reporting purposes but is included in derivatives gains (losses) in our consolidated total results and (ii) derivative forward value gains and losses, which we exclude from our business segment results but is included in derivatives gains (losses) in our consolidated total results. (2) Consists of intercompany borrowings payable by NCSC and RTFC to CFC and the interest related to those borrowings, management fees paid by NCSC and RTFC to CFC and other intercompany amounts, all of which are eliminated in consolidation. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2020 | |
Summary of Significant Accounting Policies [Line Items] | |||
Restricted cash | $ 7,563,000 | $ 8,298,000 | |
Accrued interest receivable | 94,000,000 | 93,000,000 | |
Depreciation and amortization | 7,553,000 | 7,959,000 | $ 9,238,000 |
Repossessed assets | $ 0 | $ 0 | |
Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 3 years | ||
Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 40 years | ||
RTFC | |||
Summary of Significant Accounting Policies [Line Items] | |||
Effective percentage of tax rate | 21% | 21% | 21% |
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% | ||
NCSC | |||
Summary of Significant Accounting Policies [Line Items] | |||
Membership fees (in dollars per share) | $ 100 | ||
Effective percentage of tax rate | 21% | 21% | 21% |
Deferred tax assets, net | $ 1,000,000 | $ 2,000,000 | |
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 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of fixed assets (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Fixed Assets | ||
Fixed assets, gross | $ 112,556 | $ 111,759 |
Less: accumulated depreciation | (73,258) | (66,777) |
Net depreciable fixed assets | 39,298 | 44,982 |
Fixed assets, net | 101,762 | 91,882 |
Building and building equipment | ||
Fixed Assets | ||
Fixed assets, gross | 50,177 | 50,090 |
Furniture and fixtures | ||
Fixed Assets | ||
Fixed assets, gross | 6,254 | 6,039 |
Computer software and hardware | ||
Fixed Assets | ||
Fixed assets, gross | 55,101 | 54,582 |
Other | ||
Fixed Assets | ||
Fixed assets, gross | 1,024 | 1,048 |
Land | ||
Fixed Assets | ||
Fixed assets, gross | 23,796 | 23,796 |
Software development in progress | ||
Fixed Assets | ||
Fixed assets, gross | $ 38,668 | $ 23,104 |
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, 2022 | May 31, 2021 | May 31, 2020 | |
Interest income: | |||
Loans | $ 1,141,243 | $ 1,116,601 | $ 1,151,286 |
Investment securities | 15,951 | 15,096 | 21,403 |
Interest expense | |||
Short-term borrowings | 18,265 | 14,730 | 77,995 |
Total interest expense | 705,534 | 702,063 | 821,089 |
Net interest income | 435,709 | 414,538 | 330,197 |
Loans | |||
Interest income: | |||
Loans | 1,125,292 | 1,101,505 | 1,129,883 |
Long-term debt | |||
Interest expense | |||
Debt | 581,748 | 581,292 | 634,567 |
Subordinated debt | |||
Interest expense | |||
Debt | $ 105,521 | $ 106,041 | $ 108,527 |
Interest Income and Interest _4
Interest Income and Interest Expense - Narrative (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Banking and Thrift, Interest [Abstract] | ||
Deferred income | $ 44,332 | $ 51,198 |
Deferred loan conversion fees | $ 37,000 | $ 45,000 |
Investment Securities - Schedul
Investment Securities - Schedule of composition of investments in debt securities (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | $ 566,146 | $ 576,175 |
Certificates of deposit | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 0 | 1,501 |
Commercial paper | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 9,985 | 12,365 |
Corporate debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 487,172 | 497,944 |
Commercial Agency MBS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 7,815 | 8,683 |
U.S. state and municipality debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 27,778 | 11,840 |
Foreign government debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 967 | 999 |
Other ABS | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | $ 32,429 | $ 42,843 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Debt securities, trading, unrealized gain (loss) | $ (27,000) | $ (3,000) | $ 8,000 |
Proceeds from sale of debt securities | 5,000 | 6,000 | 239,000 |
Debt securities, trading, realized gain (less than $0.1 million for the year ended May 31, 2022) | 1,000 | 3,000 | |
Debt securities, trading, realized loss | 1,000 | ||
Collateral pledged | 0 | 210,894 | |
Equity securities, unrealized gain | 4,000 | ||
Investment securities losses | (1,000) | $ (2,000) | |
Investments [Line Items] | |||
Borrowings | 4,981,167 | 4,582,096 | |
Securities sold under repurchase agreements | |||
Investments [Line Items] | |||
Borrowings | $ 0 | $ 200,115 |
Investment Securities - Sched_2
Investment Securities - Schedule of investments in equity securities (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at fair value | $ 33,758 | $ 35,102 |
Noncumulative Preferred Stock | Series C Preferred Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at fair value | 25,520 | 27,450 |
Common Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at fair value | $ 8,238 | $ 7,652 |
Loans - Narrative (Details)
Loans - Narrative (Details) | 3 Months Ended | 12 Months Ended | 51 Months Ended | 60 Months Ended | 108 Months Ended | ||
Nov. 30, 2021 USD ($) | May 31, 2022 USD ($) loan borrower line_of_credit distribution_system power_supply_system | May 31, 2021 USD ($) borrower distribution_system line_of_credit power_supply_system | May 31, 2020 USD ($) | May 31, 2021 USD ($) borrower distribution_system line_of_credit power_supply_system | May 31, 2022 USD ($) loan borrower line_of_credit distribution_system power_supply_system | May 31, 2022 USD ($) loan borrower line_of_credit distribution_system power_supply_system | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Term of Loans | 35 years | ||||||
Loans receivable cost of loans sold | $ 171,000,000 | $ 126,000,000 | $ 151,000,000 | ||||
Financing receivable, held-for-sale | 44,000,000 | $ 44,000,000 | $ 44,000,000 | ||||
Loans outstanding | $ 30,063,386,000 | $ 28,426,961,000 | $ 28,426,961,000 | $ 30,063,386,000 | $ 30,063,386,000 | ||
Number of active borrowers | borrower | 883 | 892 | 892 | 883 | 883 | ||
Number of states with active borrowers | borrower | 49 | 49 | |||||
Financing receivable, number of loans outstanding | loan | 16,584 | 16,584 | 16,584 | ||||
Increase (decrease) in financing receivable, nonaccrual | $ (9,000,000) | ||||||
Financing receivable, nonaccrual | 227,790,000 | $ 237,497,000 | $ 237,497,000 | $ 227,790,000 | $ 227,790,000 | ||
Loan modification required to be accounted for as TDRs | 0 | 0 | |||||
Financing receivable, troubled debt restructuring, commitment to lend | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||
% of Total Loans Outstanding | 100% | 100% | 100% | 100% | 100% | ||
Financing receivable, originated, more than five years before current fiscal year | $ 16,540,000,000 | $ 16,540,000,000 | $ 16,540,000,000 | ||||
Financing Receivable, percent originated, more than five years before current fiscal year | 55% | 55% | 55% | ||||
Long-term financing receivable, before allowance for credit loss, average remaining maturity | 18 years | ||||||
Financing receivable, loan commitment, term | 5 years | ||||||
Financing receivable, number of loans outstanding per borrower | loan | 19 | 19 | 19 | ||||
Unadvanced line of credit commitments as percentage of unadvanced loan commitments | 62% | 62% | 62% | ||||
Unadvanced long-term loans commitments percentage of unadvanced loan commitments | 38% | 38% | 38% | ||||
Unadvanced commitments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Available balance | $ 14,111,202,000 | $ 14,357,039,000 | $ 14,357,039,000 | $ 14,111,202,000 | $ 14,111,202,000 | ||
Commitments to extend credit subject to material adverse change clause | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Available balance | 10,908,000,000 | 11,312,000,000 | 11,312,000,000 | 10,908,000,000 | 10,908,000,000 | ||
Unadvanced commitments not subject to material adverse change clauses | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Available balance | 3,203,023,000 | 3,045,000,000 | 3,045,000,000 | 3,203,023,000 | 3,203,023,000 | ||
Nonperforming TDR loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, troubled debt restructuring | 0 | 0 | 0 | 0 | 0 | ||
Performing line of credit for troubled debt restructuring borrower | Line of credit restricted for fuel purchases | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 1,000,000 | $ 0 | $ 0 | $ 1,000,000 | $ 1,000,000 | ||
Number of lines of credit | line_of_credit | 1 | 1 | 1 | 1 | 1 | ||
Available balance | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | ||
Non-performing loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 227,790,000 | $ 237,497,000 | $ 237,497,000 | $ 227,790,000 | $ 227,790,000 | ||
Number of borrowers, nonperforming loans | borrower | 3 | 4 | |||||
% of Total Loans Outstanding | 0.76% | 0.84% | 0.84% | 0.76% | 0.76% | ||
Increase (decrease) in finance receivables | $ (9,000,000) | ||||||
Non-performing loans | Two RTFC Borrower | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Increase (decrease) in finance receivables | $ (9,000,000) | ||||||
Loan defaults | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
Criticized | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 494,000,000 | $ 886,000,000 | $ 886,000,000 | $ 494,000,000 | $ 494,000,000 | ||
Financing receivable, before allowance for credit loss, percentage | 2% | 3% | 3% | 2% | 2% | ||
Special mention | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 267,000,000 | $ 269,000,000 | $ 269,000,000 | $ 267,000,000 | $ 267,000,000 | ||
Doubtful | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | 228,000,000 | 237,000,000 | 237,000,000 | 228,000,000 | 228,000,000 | ||
CFC | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, nonaccrual | $ 227,790,000 | $ 228,312,000 | $ 228,312,000 | $ 227,790,000 | $ 227,790,000 | ||
% of Total Loans Outstanding | 96% | 96% | 96% | 96% | 96% | ||
CFC | Unadvanced commitments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Available balance | $ 13,249,577,000 | $ 13,519,108,000 | $ 13,519,108,000 | $ 13,249,577,000 | $ 13,249,577,000 | ||
CFC | Substandard | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 0 | $ 0 | $ 0 | ||||
CFC | Total Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, number of loans outstanding | borrower | 2 | 2 | 2 | ||||
RTFC | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, nonaccrual | $ 0 | $ 9,185,000 | $ 9,185,000 | $ 0 | $ 0 | ||
% of Total Loans Outstanding | 2% | 1% | 1% | 2% | 2% | ||
Financing receivable, allowance for credit loss, writeoff | $ 0 | ||||||
RTFC | Unadvanced commitments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Available balance | $ 309,724,000 | $ 286,806,000 | $ 286,806,000 | 309,724,000 | $ 309,724,000 | ||
RTFC | Non-performing loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 0 | $ 9,185,000 | $ 9,185,000 | $ 0 | $ 0 | ||
Number of active borrowers | borrower | 2 | 2 | |||||
Number of borrowers, nonperforming loans | borrower | 0 | 2 | |||||
% of Total Loans Outstanding | 0% | 0.03% | 0.03% | 0% | 0% | ||
RTFC | Loan defaults | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 0 | $ 0 | $ 0 | ||||
Loans receivable commercial and industrial | Loans | Credit concentration | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration risk number of borrowers | borrower | 20 | 20 | 20 | 20 | 20 | ||
Loans outstanding | Loans | Credit concentration | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration percentage | 98% | 99% | |||||
Loans guaranteed by Farmer Mac | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 493,000,000 | $ 512,000,000 | $ 512,000,000 | $ 493,000,000 | $ 493,000,000 | ||
Number of loans that defaulted | loan | 0 | 0 | 0 | ||||
Number of defaulted loans put to Farmer Mac for purchase | loan | 0 | 0 | 0 | ||||
Loans guaranteed by Farmer Mac | Loans | Credit concentration | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 316,000,000 | $ 309,000,000 | 309,000,000 | $ 316,000,000 | $ 316,000,000 | ||
Concentration percentage | 20% | 21% | |||||
Loans guaranteed by rural utilities service | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 131,000,000 | $ 139,000,000 | $ 139,000,000 | $ 131,000,000 | $ 131,000,000 | ||
Long-term loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, before allowance for credit loss, percentage | 92% | 92% | 92% | 92% | 92% | ||
Long-term loans | Unadvanced commitments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Available balance | $ 5,357,205,000 | $ 5,771,813,000 | $ 5,771,813,000 | $ 5,357,205,000 | $ 5,357,205,000 | ||
TEXAS | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of active borrowers | borrower | 68 | 67 | 67 | 68 | 68 | ||
TEXAS | Loans receivable commercial and industrial | Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 5,104,000,000 | $ 4,878,000,000 | $ 4,878,000,000 | $ 5,104,000,000 | $ 5,104,000,000 | ||
TEXAS | Loans receivable commercial and industrial | Loans | Geographic concentration risk | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration percentage | 17% | 17% | |||||
TEXAS | Loans guaranteed by Farmer Mac | Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 163,000,000 | $ 172,000,000 | 172,000,000 | 163,000,000 | 163,000,000 | ||
TEXAS | Loans guaranteed by Farmer Mac | Loans | Geographic concentration risk | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration percentage | 16% | 16% | |||||
20 largest borrowers | Loans receivable commercial and industrial | Loans | Customer concentration risk | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 6,220,000,000 | $ 6,182,000,000 | $ 6,182,000,000 | $ 6,220,000,000 | $ 6,220,000,000 | ||
Concentration percentage | 21% | 22% | |||||
Concentration risk number of borrowers | borrower | 20 | 20 | 20 | 20 | 20 | ||
Largest single borrower or controlled group | Loans receivable commercial and industrial | Loans | Customer concentration risk | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration percentage | 2% | 2% | |||||
Brazos electric power cooperative | CFC | Total Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, number of loans outstanding | borrower | 1 | 1 | |||||
Rayburn country electric cooperative | CFC | Substandard | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 167,000,000 | $ 379,000,000 | $ 379,000,000 | $ 167,000,000 | $ 167,000,000 | ||
Electric utility | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, allowance for credit loss, writeoff | 0 | ||||||
Electric utility | Loan defaults | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 0 | 0 | 0 | ||||
Electric utility | CFC | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, loan commitment, term | 5 years | ||||||
Electric utility | Loans receivable commercial and industrial | Loans | Credit concentration | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 29,584,000,000 | 27,995,000,000 | 27,995,000,000 | 29,584,000,000 | 29,584,000,000 | ||
Distribution | CFC | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, nonaccrual | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||
% of Total Loans Outstanding | 79% | 78% | 78% | 79% | 79% | ||
Distribution | CFC | Unadvanced commitments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Available balance | $ 9,230,197,000 | $ 9,387,070,000 | $ 9,387,070,000 | $ 9,230,197,000 | $ 9,230,197,000 | ||
Distribution | 20 largest borrowers | Loans receivable commercial and industrial | Loans | Customer concentration risk | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration risk number of borrowers | distribution_system | 12 | 10 | 10 | 12 | 12 | ||
Distribution | CFC electric distribution borrower | CFC | Special mention | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 248,000,000 | $ 219,000,000 | $ 219,000,000 | $ 248,000,000 | $ 248,000,000 | ||
Number of active borrowers | borrower | 1 | 1 | 1 | 1 | 1 | ||
Power supply | CFC | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, nonaccrual | $ 227,790,000 | $ 228,312,000 | $ 228,312,000 | $ 227,790,000 | $ 227,790,000 | ||
% of Total Loans Outstanding | 17% | 18% | 18% | 17% | 17% | ||
Power supply | CFC | Unadvanced commitments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Available balance | $ 3,835,535,000 | $ 3,970,698,000 | $ 3,970,698,000 | $ 3,835,535,000 | $ 3,835,535,000 | ||
Power supply | CFC | Non-performing loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 227,790,000 | $ 228,312,000 | $ 228,312,000 | $ 227,790,000 | $ 227,790,000 | ||
Number of borrowers, nonperforming loans | borrower | 3 | 2 | |||||
% of Total Loans Outstanding | 0.76% | 0.81% | 0.81% | 0.76% | 0.76% | ||
Power supply | 20 largest borrowers | Loans receivable commercial and industrial | Loans | Customer concentration risk | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration risk number of borrowers | power_supply_system | 8 | 10 | 10 | 8 | 8 | ||
Power supply | Brazos and Brazos Sandy Creek | CFC | Non-performing loans | Financing receivable, secured | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | $ 49,000,000 | $ 49,000,000 | $ 49,000,000 | ||||
Power supply | Brazos and Brazos Sandy Creek | CFC | Non-performing loans | Financing receivable, unsecured | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | 65,000,000 | 65,000,000 | 65,000,000 | ||||
Power supply | Brazos and Brazos Sandy Creek | CFC | Total Past Due | Non-performing loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | 114,000,000 | 114,000,000 | 114,000,000 | ||||
Power supply | Brazos and Brazos Sandy Creek | CFC | Total Past Due | Criticized | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | 114,000,000 | 114,000,000 | 114,000,000 | ||||
Power supply | Brazos electric power cooperative | CFC | Non-performing loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | 86,000,000 | $ 85,000,000 | $ 85,000,000 | 86,000,000 | 86,000,000 | ||
Power supply | Brazos electric power cooperative | CFC | Criticized | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | 85,000,000 | 85,000,000 | |||||
Power supply | Brazos electric power cooperative | CFC | Total Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | 85,000,000 | 85,000,000 | |||||
Power supply | Brazos Sandy Creek | CFC | Non-performing loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | 28,000,000 | 28,000,000 | 28,000,000 | ||||
Power supply | One CFC Electric Power Supply Borrower | Non-performing loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans outstanding | 114,000,000 | $ 143,000,000 | $ 143,000,000 | $ 114,000,000 | $ 114,000,000 | ||
Increase (decrease) in finance receivables | $ (29,000,000) | ||||||
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 |
Loans - Schedule of loans outst
Loans - Schedule of loans outstanding to members and unadvanced commitments by loan type and by member class (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 30,051,354 | $ 28,415,107 |
Deferred loan origination costs | 12,032 | 11,854 |
Loans to members | $ 30,063,386 | $ 28,426,961 |
% of Total Loans Outstanding | 100% | 100% |
CFC | ||
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 28,872,875 | $ 27,287,856 |
% of Total Loans Outstanding | 96% | 96% |
CFC | Distribution | ||
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 23,844,242 | $ 22,027,423 |
% of Total Loans Outstanding | 79% | 78% |
CFC | Power supply | ||
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 4,901,770 | $ 5,154,312 |
% of Total Loans Outstanding | 17% | 18% |
CFC | Statewide and associate | ||
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 126,863 | $ 106,121 |
% of Total Loans Outstanding | 0% | 0% |
NCSC | ||
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 710,878 | $ 706,868 |
% of Total Loans Outstanding | 2% | 3% |
RTFC | ||
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 467,601 | $ 420,383 |
% of Total Loans Outstanding | 2% | 1% |
Long-term loans | ||
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 27,772,573 | $ 26,173,345 |
Fixed rate | ||
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 26,952,372 | $ 25,514,766 |
% of Total Loans Outstanding | 90% | 90% |
Variable rate | ||
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 820,201 | $ 658,579 |
% of Total Loans Outstanding | 2% | 2% |
Lines of credit | ||
Unadvanced Loan Commitments | ||
Total loan outstanding | $ 2,278,781 | $ 2,241,762 |
% of Total Loans Outstanding | 8% | 8% |
Unamortized loan commitment and origination fees | ||
Unadvanced Loan Commitments | ||
Deferred loan origination costs | $ 12,032 | $ 11,854 |
% of Total Loans Outstanding | 0% | 0% |
Loans - Schedule of analysis of
Loans - Schedule of analysis of the age of the recorded investment in loans outstanding by member class (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Payment Status of Loans | ||
Total loan outstanding | $ 30,051,354 | $ 28,415,107 |
Nonaccrual Loans | $ 227,790 | $ 237,497 |
As a % of total loans | ||
Current | 99.62% | 99.70% |
30-89 Days Past Due | 0.09% | 0.01% |
> 90 Days Past Due | 0.29% | 0.29% |
Total Past Due | 0.38% | 0.30% |
Total Loans Outstanding | 100% | 100% |
Nonaccrual Loans | 0.76% | 0.84% |
CFC | ||
Payment Status of Loans | ||
Total loan outstanding | $ 28,872,875 | $ 27,287,856 |
Nonaccrual Loans | 227,790 | 228,312 |
CFC | Distribution | ||
Payment Status of Loans | ||
Total loan outstanding | 23,844,242 | 22,027,423 |
Nonaccrual Loans | 0 | 0 |
CFC | Power supply | ||
Payment Status of Loans | ||
Total loan outstanding | 4,901,770 | 5,154,312 |
Nonaccrual Loans | 227,790 | 228,312 |
CFC | Statewide and associate | ||
Payment Status of Loans | ||
Total loan outstanding | 126,863 | 106,121 |
Nonaccrual Loans | 0 | 0 |
NCSC | ||
Payment Status of Loans | ||
Total loan outstanding | 710,878 | 706,868 |
Nonaccrual Loans | 0 | 0 |
RTFC | ||
Payment Status of Loans | ||
Total loan outstanding | 467,601 | 420,383 |
Nonaccrual Loans | 0 | 9,185 |
Current | ||
Payment Status of Loans | ||
Total loan outstanding | 29,937,416 | 28,330,111 |
Current | CFC | ||
Payment Status of Loans | ||
Total loan outstanding | 28,758,937 | 27,202,860 |
Current | CFC | Distribution | ||
Payment Status of Loans | ||
Total loan outstanding | 23,844,242 | 22,027,423 |
Current | CFC | Power supply | ||
Payment Status of Loans | ||
Total loan outstanding | 4,787,832 | 5,069,316 |
Current | CFC | Statewide and associate | ||
Payment Status of Loans | ||
Total loan outstanding | 126,863 | 106,121 |
Current | NCSC | ||
Payment Status of Loans | ||
Total loan outstanding | 710,878 | 706,868 |
Current | RTFC | ||
Payment Status of Loans | ||
Total loan outstanding | 467,601 | 420,383 |
30-89 Days Past Due | ||
Payment Status of Loans | ||
Total loan outstanding | 28,389 | 3,400 |
30-89 Days Past Due | CFC | ||
Payment Status of Loans | ||
Total loan outstanding | 28,389 | 3,400 |
30-89 Days Past Due | CFC | Distribution | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
30-89 Days Past Due | CFC | Power supply | ||
Payment Status of Loans | ||
Total loan outstanding | 28,389 | 3,400 |
30-89 Days Past Due | CFC | Statewide and associate | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
30-89 Days Past Due | NCSC | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
30-89 Days Past Due | RTFC | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
> 90 Days Past Due | ||
Payment Status of Loans | ||
Total loan outstanding | 85,549 | 81,596 |
> 90 Days Past Due | CFC | ||
Payment Status of Loans | ||
Total loan outstanding | 85,549 | 81,596 |
> 90 Days Past Due | CFC | Distribution | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
> 90 Days Past Due | CFC | Power supply | ||
Payment Status of Loans | ||
Total loan outstanding | 85,549 | 81,596 |
> 90 Days Past Due | CFC | Statewide and associate | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
> 90 Days Past Due | NCSC | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
> 90 Days Past Due | RTFC | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
Total Past Due | ||
Payment Status of Loans | ||
Total loan outstanding | 113,938 | 84,996 |
Total Past Due | CFC | ||
Payment Status of Loans | ||
Total loan outstanding | 113,938 | 84,996 |
Total Past Due | CFC | Distribution | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
Total Past Due | CFC | Power supply | ||
Payment Status of Loans | ||
Total loan outstanding | 113,938 | 84,996 |
Total Past Due | CFC | Statewide and associate | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
Total Past Due | NCSC | ||
Payment Status of Loans | ||
Total loan outstanding | 0 | 0 |
Total Past Due | RTFC | ||
Payment Status of Loans | ||
Total loan outstanding | $ 0 | $ 0 |
Loans - Schedule of troubled de
Loans - Schedule of troubled debt restructured loans (Details) $ in Thousands | 12 Months Ended | |
May 31, 2022 USD ($) borrower | May 31, 2021 USD ($) borrower | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of Total Loans Outstanding | 100% | 100% |
Total TDR loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 2 | 2 |
Outstanding Amount | $ | $ 9,184 | $ 9,971 |
% of Total Loans Outstanding | 0.03% | 0.04% |
Performing TDR Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 2 | 2 |
Outstanding Amount | $ | $ 9,184 | $ 9,971 |
% of Total Loans Outstanding | 0.03% | 0.04% |
CFC | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of Total Loans Outstanding | 96% | 96% |
CFC | Distribution | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of Total Loans Outstanding | 79% | 78% |
CFC | Total TDR loans | Distribution | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 1 | 1 |
Outstanding Amount | $ | $ 5,092 | $ 5,379 |
% of Total Loans Outstanding | 0.02% | 0.02% |
RTFC | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of Total Loans Outstanding | 2% | 1% |
RTFC | Total TDR loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 1 | 1 |
Outstanding Amount | $ | $ 4,092 | $ 4,592 |
% of Total Loans Outstanding | 0.01% | 0.02% |
Loans - Schedule of non-perform
Loans - Schedule of non-performing loans (Details) $ in Thousands | 12 Months Ended | ||
May 31, 2022 USD ($) borrower | May 31, 2021 USD ($) borrower | Mar. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding amount | $ 30,063,386 | $ 28,426,961 | |
% of Total Loans Outstanding | 100% | 100% | |
Non-performing loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Borrowers, Nonperforming Loans | borrower | 3 | 4 | |
Outstanding amount | $ 227,790 | $ 237,497 | |
% of Total Loans Outstanding | 0.76% | 0.84% | |
CFC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
% of Total Loans Outstanding | 96% | 96% | |
CFC | Brazos electric power cooperative | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Letters of Credit Outstanding | $ 1,000 | $ 3,000 | |
CFC | Power supply | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
% of Total Loans Outstanding | 17% | 18% | |
CFC | Non-performing loans | Power supply | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Borrowers, Nonperforming Loans | borrower | 3 | 2 | |
Outstanding amount | $ 227,790 | $ 228,312 | |
% of Total Loans Outstanding | 0.76% | 0.81% | |
CFC | Non-performing loans | Power supply | Brazos electric power cooperative | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding amount | $ 86,000 | $ 85,000 | |
RTFC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
% of Total Loans Outstanding | 2% | 1% | |
RTFC | Non-performing loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Borrowers, Nonperforming Loans | borrower | 0 | 2 | |
Outstanding amount | $ 0 | $ 9,185 | |
% of Total Loans Outstanding | 0% | 0.03% |
Loans - Schedule of loan portfo
Loans - Schedule of loan portfolio by risk rating category and member class based on available data (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Credit Quality | ||
2022 | $ 3,083,247 | |
2021 | 2,391,376 | |
2020 | 2,366,543 | |
2019 | 1,624,547 | |
2018 | 1,766,580 | |
Prior | 16,540,280 | |
Revolving Loans | 2,278,781 | |
Total loan outstanding | 30,051,354 | $ 28,415,107 |
Pass | ||
Credit Quality | ||
2022 | 3,083,247 | |
2021 | 2,386,487 | |
2020 | 2,366,543 | |
2019 | 1,614,445 | |
2018 | 1,761,827 | |
Prior | 16,376,318 | |
Revolving Loans | 1,968,114 | |
Total loan outstanding | 29,556,981 | 27,529,242 |
Special Mention | ||
Credit Quality | ||
2022 | 0 | |
2021 | 4,889 | |
2020 | 0 | |
2019 | 10,102 | |
2018 | 4,753 | |
Prior | 21,721 | |
Revolving Loans | 225,118 | |
Total loan outstanding | 266,583 | 269,387 |
Substandard | ||
Credit Quality | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total loan outstanding | 0 | 378,981 |
Doubtful | ||
Credit Quality | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 142,241 | |
Revolving Loans | 85,549 | |
Total loan outstanding | 227,790 | 237,497 |
Criticized | ||
Credit Quality | ||
2022 | 0 | |
2021 | 4,889 | |
2020 | 0 | |
2019 | 10,102 | |
2018 | 4,753 | |
Prior | 163,962 | |
Revolving Loans | 310,667 | |
Total loan outstanding | 494,373 | 885,865 |
CFC | ||
Credit Quality | ||
Total loan outstanding | 28,872,875 | 27,287,856 |
CFC | Pass | ||
Credit Quality | ||
2022 | 2,941,660 | |
2021 | 2,258,214 | |
2020 | 2,089,468 | |
2019 | 1,600,346 | |
2018 | 1,696,550 | |
Prior | 15,957,944 | |
Revolving Loans | 1,838,412 | |
Total loan outstanding | 28,382,594 | 26,415,768 |
CFC | Special Mention | ||
Credit Quality | ||
2022 | 0 | |
2021 | 4,889 | |
2020 | 0 | |
2019 | 10,102 | |
2018 | 4,753 | |
Prior | 17,629 | |
Revolving Loans | 225,118 | |
Total loan outstanding | 262,491 | 264,795 |
CFC | Doubtful | ||
Credit Quality | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 142,241 | |
Revolving Loans | 85,549 | |
Total loan outstanding | 227,790 | 228,312 |
CFC | Distribution | ||
Credit Quality | ||
Total loan outstanding | 23,844,242 | 22,027,423 |
CFC | Distribution | Pass | ||
Credit Quality | ||
2022 | 2,533,579 | |
2021 | 1,696,580 | |
2020 | 1,882,003 | |
2019 | 1,192,639 | |
2018 | 1,451,710 | |
Prior | 13,300,784 | |
Revolving Loans | 1,538,709 | |
Total loan outstanding | 23,596,004 | 21,808,099 |
CFC | Distribution | Special Mention | ||
Credit Quality | ||
2022 | 0 | |
2021 | 4,889 | |
2020 | 0 | |
2019 | 5,102 | |
2018 | 932 | |
Prior | 12,197 | |
Revolving Loans | 225,118 | |
Total loan outstanding | 248,238 | 219,324 |
CFC | Power supply | ||
Credit Quality | ||
Total loan outstanding | 4,901,770 | 5,154,312 |
CFC | Power supply | Pass | ||
Credit Quality | ||
2022 | 374,185 | |
2021 | 559,384 | |
2020 | 188,864 | |
2019 | 404,425 | |
2018 | 244,840 | |
Prior | 2,637,162 | |
Revolving Loans | 265,120 | |
Total loan outstanding | 4,673,980 | 4,517,408 |
CFC | Power supply | Special Mention | ||
Credit Quality | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total loan outstanding | 0 | 29,611 |
CFC | Power supply | Substandard | ||
Credit Quality | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total loan outstanding | 0 | 378,981 |
CFC | Power supply | Doubtful | ||
Credit Quality | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 142,241 | |
Revolving Loans | 85,549 | |
Total loan outstanding | 227,790 | 228,312 |
CFC | Statewide and associate | ||
Credit Quality | ||
Total loan outstanding | 126,863 | 106,121 |
CFC | Statewide and associate | Pass | ||
Credit Quality | ||
2022 | 33,896 | |
2021 | 2,250 | |
2020 | 18,601 | |
2019 | 3,282 | |
2018 | 0 | |
Prior | 19,998 | |
Revolving Loans | 34,583 | |
Total loan outstanding | 112,610 | 90,261 |
CFC | Statewide and associate | Special Mention | ||
Credit Quality | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 5,000 | |
2018 | 3,821 | |
Prior | 5,432 | |
Revolving Loans | 0 | |
Total loan outstanding | 14,253 | 15,860 |
NCSC | ||
Credit Quality | ||
Total loan outstanding | 710,878 | 706,868 |
NCSC | Pass | ||
Credit Quality | ||
2022 | 49,141 | |
2021 | 39,747 | |
2020 | 232,224 | |
2019 | 4,067 | |
2018 | 43,079 | |
Prior | 233,992 | |
Revolving Loans | 108,628 | |
Total loan outstanding | 710,878 | 706,868 |
RTFC | ||
Credit Quality | ||
Total loan outstanding | 467,601 | 420,383 |
RTFC | Pass | ||
Credit Quality | ||
2022 | 92,446 | |
2021 | 88,526 | |
2020 | 44,851 | |
2019 | 10,032 | |
2018 | 22,198 | |
Prior | 184,382 | |
Revolving Loans | 21,074 | |
Total loan outstanding | 463,509 | 406,606 |
RTFC | Special Mention | ||
Credit Quality | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 4,092 | |
Revolving Loans | 0 | |
Total loan outstanding | 4,092 | 4,592 |
RTFC | Doubtful | ||
Credit Quality | ||
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Total loan outstanding | $ 0 | $ 9,185 |
Loans - Schedule of unadvanced
Loans - Schedule of unadvanced commitments (Details) - Unadvanced commitments - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | $ 14,111,202 | $ 14,357,039 |
Long-term loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | 5,357,205 | 5,771,813 |
Fixed rate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | 0 | 0 |
Variable rate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | 5,357,205 | 5,771,813 |
Lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | 8,753,997 | 8,585,226 |
CFC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | 13,249,577 | 13,519,108 |
CFC | Distribution | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | 9,230,197 | 9,387,070 |
CFC | Power supply | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | 3,835,535 | 3,970,698 |
CFC | Statewide and associate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | 183,845 | 161,340 |
NCSC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | 551,901 | 551,125 |
RTFC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available balance | $ 309,724 | $ 286,806 |
Loans - Schedule of available b
Loans - Schedule of available balances under unadvanced loan commitments (Details) - Unadvanced commitments - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available Balance | $ 14,111,202 | $ 14,357,039 |
2023 | 4,778,995 | |
2024 | 2,612,327 | |
2025 | 2,321,423 | |
2026 | 1,297,833 | |
2027 | 2,876,188 | |
Thereafter | 224,436 | |
Lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available Balance | 8,753,997 | 8,585,226 |
2023 | 4,160,953 | |
2024 | 1,139,303 | |
2025 | 1,588,513 | |
2026 | 363,001 | |
2027 | 1,431,073 | |
Thereafter | 71,154 | |
Long-term loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available Balance | 5,357,205 | $ 5,771,813 |
2023 | 618,042 | |
2024 | 1,473,024 | |
2025 | 732,910 | |
2026 | 934,832 | |
2027 | 1,445,115 | |
Thereafter | $ 153,282 |
Loans - Summary of available ba
Loans - Summary of available balance under committed lines of credit and the related maturities by fiscal year (Details) - Unadvanced commitments not subject to material adverse change clauses - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Unadvanced Loan Commitments | ||
Available Balance | $ 3,203,023 | $ 3,045,000 |
2023 | 272,083 | |
2024 | 497,722 | |
2025 | 1,141,980 | |
2026 | 243,699 | |
2027 | $ 1,047,539 |
Loans - Summary of pledged loan
Loans - Summary of pledged loans (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Pledging of Loans and Loans on Deposit | ||
Cash | $ 7,563 | $ 8,298 |
Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,679,250 | 8,521,972 |
Notes payable outstanding | 7,072,711 | 7,422,711 |
Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Notes payable outstanding | 25,000 | 30,000 |
Notes payable | Federal Financing Bank | ||
Pledging of Loans and Loans on Deposit | ||
Notes payable outstanding | 6,105,473 | 6,269,303 |
Notes payable | Federal Agricultural Mortgage Corporation | ||
Pledging of Loans and Loans on Deposit | ||
Notes payable outstanding | 3,094,679 | 2,977,909 |
Clean renewable energy bonds series 2009 A | ||
Pledging of Loans and Loans on Deposit | ||
Notes payable outstanding | 2,755 | 4,412 |
Cash | 392 | 394 |
Total pledged collateral | 3,530 | 5,710 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,564,596 | 8,400,293 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 29,616 | 34,924 |
Mortgage notes | Distribution and power supply system mortgage notes | Federal Agricultural Mortgage Corporation | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 3,445,358 | 3,440,307 |
Mortgage notes | Distribution and power supply system mortgage notes | Clean renewable energy bonds series 2009 A | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 3,138 | 5,316 |
Loans guaranteed by rural utilities service | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 114,654 | 121,679 |
Mortgage receivables on deposit | Distribution and power supply system mortgage notes | Federal Financing Bank | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | $ 6,904,591 | $ 7,150,240 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2021 USD ($) | May 31, 2022 USD ($) | May 31, 2021 USD ($) | May 31, 2020 USD ($) | May 31, 2019 USD ($) | |
Loan Loss Allowance | |||||
Total allowance for credit losses | $ 67,560 | $ 85,532 | $ 53,125 | $ 17,535 | |
Allowance coverage ratio | 0.0022 | 0.0030 | |||
Financing receivable, allowance for credit loss, period increase (decrease) | $ (18,000) | ||||
Credit reserve for unadvanced loan commitments | 1,000 | $ 1,000 | |||
Non-performing loans | |||||
Loan Loss Allowance | |||||
Increase (decrease) in finance receivables | (9,000) | ||||
Non-performing loans | Two RTFC Borrower | |||||
Loan Loss Allowance | |||||
Increase (decrease) in finance receivables | $ (9,000) | ||||
Collective Allowance | |||||
Loan Loss Allowance | |||||
Financing receivable, allowance for credit loss, period increase (decrease) | (14,000) | ||||
Asset-Specific Allowance | |||||
Loan Loss Allowance | |||||
Financing receivable, allowance for credit loss, period increase (decrease) | $ (4,000) |
Allowance for Credit Losses - S
Allowance for Credit Losses - Schedule of changes in allowance for credit losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | $ 85,532 | $ 53,125 | $ 17,535 |
Provision (benefit) for credit losses | (17,972) | 28,507 | 35,590 |
Balance at the end of the period | 67,560 | 85,532 | 53,125 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 3,900 | ||
Balance at the end of the period | 3,900 | ||
Adjusted Balance | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 57,025 | ||
Balance at the end of the period | 57,025 | ||
CFC | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 79,463 | 47,438 | 13,120 |
Provision (benefit) for credit losses | (14,638) | 26,380 | 34,318 |
Balance at the end of the period | 64,825 | 79,463 | 47,438 |
CFC | Distribution | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 13,426 | 8,002 | 7,483 |
Provision (benefit) for credit losses | 2,355 | 1,838 | 519 |
Balance at the end of the period | 15,781 | 13,426 | 8,002 |
CFC | Power supply | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 64,646 | 38,027 | 4,253 |
Provision (benefit) for credit losses | (16,853) | 24,585 | 33,774 |
Balance at the end of the period | 47,793 | 64,646 | 38,027 |
CFC | Statewide and associate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 1,391 | 1,409 | 1,384 |
Provision (benefit) for credit losses | (140) | (43) | 25 |
Balance at the end of the period | 1,251 | 1,391 | 1,409 |
CFC | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 5,645 | ||
Balance at the end of the period | 5,645 | ||
CFC | Cumulative Effect, Period of Adoption, Adjustment | Distribution | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 3,586 | ||
Balance at the end of the period | 3,586 | ||
CFC | Cumulative Effect, Period of Adoption, Adjustment | Power supply | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 2,034 | ||
Balance at the end of the period | 2,034 | ||
CFC | Cumulative Effect, Period of Adoption, Adjustment | Statewide and associate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 25 | ||
Balance at the end of the period | 25 | ||
CFC | Adjusted Balance | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 53,083 | ||
Balance at the end of the period | 53,083 | ||
CFC | Adjusted Balance | Distribution | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 11,588 | ||
Balance at the end of the period | 11,588 | ||
CFC | Adjusted Balance | Power supply | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 40,061 | ||
Balance at the end of the period | 40,061 | ||
CFC | Adjusted Balance | Statewide and associate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 1,434 | ||
Balance at the end of the period | 1,434 | ||
NCSC | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 1,374 | 806 | 2,007 |
Provision (benefit) for credit losses | 75 | 583 | (1,201) |
Balance at the end of the period | 1,449 | 1,374 | 806 |
NCSC | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | (15) | ||
Balance at the end of the period | (15) | ||
NCSC | Adjusted Balance | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 791 | ||
Balance at the end of the period | 791 | ||
RTFC | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | 4,695 | 4,881 | 2,408 |
Provision (benefit) for credit losses | 3,409 | 1,544 | 2,473 |
Balance at the end of the period | $ 1,286 | 4,695 | 4,881 |
RTFC | Cumulative Effect, Period of Adoption, Adjustment | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | (1,730) | ||
Balance at the end of the period | (1,730) | ||
RTFC | Adjusted Balance | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of the period | $ 3,151 | ||
Balance at the end of the period | $ 3,151 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Schedule of allowance for credit losses components (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 | Mar. 31, 2021 | May 31, 2020 | May 31, 2019 |
Allowance components: | |||||
Collective allowance | $ 28,876 | $ 42,442 | |||
Asset-specific allowance | 38,684 | 43,090 | |||
Total allowance for credit losses | 67,560 | 85,532 | $ 53,125 | $ 17,535 | |
Loans outstanding | |||||
Collectively evaluated loans | 29,814,380 | 28,167,639 | |||
Individually evaluated loans | 236,974 | 247,468 | |||
Total loan outstanding | $ 30,051,354 | $ 28,415,107 | |||
Collective allowance coverage ratio | 0.10% | 0.15% | |||
Asset-specific allowance coverage ratio | 0.1632 | 0.1741 | |||
Total allowance coverage ratio | 0.0022 | 0.0030 | |||
CFC | |||||
Allowance components: | |||||
Collective allowance | $ 26,387 | $ 39,921 | |||
Asset-specific allowance | 38,438 | 39,542 | |||
Total allowance for credit losses | 64,825 | 79,463 | 47,438 | 13,120 | |
Loans outstanding | |||||
Collectively evaluated loans | 28,639,993 | 27,054,165 | |||
Individually evaluated loans | 232,882 | 233,691 | |||
Total loan outstanding | $ 28,872,875 | $ 27,287,856 | |||
Collective allowance coverage ratio | 0.09% | 0.15% | |||
Asset-specific allowance coverage ratio | 0.1651 | 0.1692 | |||
Total allowance coverage ratio | 0.0022 | 0.0029 | |||
Deferred loan origination costs | $ 12,000 | $ 12,000 | |||
CFC | Brazos electric power cooperative | |||||
Loans outstanding | |||||
Letters of Credit Outstanding | 1,000 | $ 3,000 | |||
CFC | Distribution | |||||
Allowance components: | |||||
Collective allowance | 15,781 | 13,426 | |||
Asset-specific allowance | 0 | 0 | |||
Total allowance for credit losses | 15,781 | 13,426 | 8,002 | 7,483 | |
Loans outstanding | |||||
Collectively evaluated loans | 23,839,150 | 22,022,044 | |||
Individually evaluated loans | 5,092 | 5,379 | |||
Total loan outstanding | $ 23,844,242 | $ 22,027,423 | |||
Collective allowance coverage ratio | 0.07% | 0.06% | |||
Asset-specific allowance coverage ratio | 0 | 0 | |||
Total allowance coverage ratio | 0.0007 | 0.0006 | |||
CFC | Power supply | |||||
Allowance components: | |||||
Collective allowance | $ 9,355 | $ 25,104 | |||
Asset-specific allowance | 38,438 | 39,542 | |||
Total allowance for credit losses | 47,793 | 64,646 | 38,027 | 4,253 | |
Loans outstanding | |||||
Collectively evaluated loans | 4,673,980 | 4,926,000 | |||
Individually evaluated loans | 227,790 | 228,312 | |||
Total loan outstanding | $ 4,901,770 | $ 5,154,312 | |||
Collective allowance coverage ratio | 0.20% | 0.51% | |||
Asset-specific allowance coverage ratio | 0.1687 | 0.1732 | |||
Total allowance coverage ratio | 0.0098 | 0.0125 | |||
CFC | Statewide and associate | |||||
Allowance components: | |||||
Collective allowance | $ 1,251 | $ 1,391 | |||
Asset-specific allowance | 0 | 0 | |||
Total allowance for credit losses | 1,251 | 1,391 | 1,409 | 1,384 | |
Loans outstanding | |||||
Collectively evaluated loans | 126,863 | 106,121 | |||
Individually evaluated loans | 0 | 0 | |||
Total loan outstanding | $ 126,863 | $ 106,121 | |||
Collective allowance coverage ratio | 0.99% | 1.31% | |||
Asset-specific allowance coverage ratio | 0 | 0 | |||
Total allowance coverage ratio | 0.0099 | 0.0131 | |||
NCSC | |||||
Allowance components: | |||||
Collective allowance | $ 1,449 | $ 1,374 | |||
Asset-specific allowance | 0 | 0 | |||
Total allowance for credit losses | 1,449 | 1,374 | 806 | 2,007 | |
Loans outstanding | |||||
Collectively evaluated loans | 710,878 | 706,868 | |||
Individually evaluated loans | 0 | 0 | |||
Total loan outstanding | $ 710,878 | $ 706,868 | |||
Collective allowance coverage ratio | 0.20% | 0.19% | |||
Asset-specific allowance coverage ratio | 0 | 0 | |||
Total allowance coverage ratio | 0.0020 | 0.0019 | |||
RTFC | |||||
Allowance components: | |||||
Collective allowance | $ 1,040 | $ 1,147 | |||
Asset-specific allowance | 246 | 3,548 | |||
Total allowance for credit losses | 1,286 | 4,695 | $ 4,881 | $ 2,408 | |
Loans outstanding | |||||
Collectively evaluated loans | 463,509 | 406,606 | |||
Individually evaluated loans | 4,092 | 13,777 | |||
Total loan outstanding | $ 467,601 | $ 420,383 | |||
Collective allowance coverage ratio | 0.22% | 0.28% | |||
Asset-specific allowance coverage ratio | 0.0601 | 0.2575 | |||
Total allowance coverage ratio | 0.0028 | 0.0112 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Schedule of impaired financing receivables (Details) $ in Thousands | 12 Months Ended |
May 31, 2020 USD ($) | |
Loan Loss Allowance | |
Average Recorded Investment | $ 17,195 |
Interest Income Recognized | 836 |
CFC | |
Loan Loss Allowance | |
Average Recorded Investment | 11,834 |
Interest Income Recognized | 568 |
RTFC | |
Loan Loss Allowance | |
Average Recorded Investment | 5,361 |
Interest Income Recognized | $ 268 |
Short-Term Borrowings - Narrati
Short-Term Borrowings - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Jun. 07, 2021 USD ($) facility | May 31, 2022 USD ($) | May 31, 2021 USD ($) | |
Short-term Debt [Line Items] | |||
Amount | $ 4,981,167 | $ 4,582,096 | |
Collateral pledged | 0 | $ 210,894 | |
Line of Credit Facility, Number of Active Facilities | facility | 2 | ||
Revolving credit agreements | |||
Short-term Debt [Line Items] | |||
Amount | 0 | ||
Letter of credit maximum amount available | 300,000 | ||
Total Commitment | $ 2,600,000 | $ 2,600,000 | |
Short-term borrowings | |||
Short-term Debt [Line Items] | |||
Term of debt | 1 year | ||
Short-term borrowings | Debt | Credit availability concentration risk | |||
Short-term Debt [Line Items] | |||
Concentration percentage | 17% | 17% | |
Total commercial paper | |||
Short-term Debt [Line Items] | |||
Amount | $ 2,382,882 | $ 2,019,584 | |
Total commercial paper | Minimum | |||
Short-term Debt [Line Items] | |||
Term of debt | 1 day | ||
Total commercial paper | Maximum | |||
Short-term Debt [Line Items] | |||
Term of debt | 270 days | ||
Select notes to members | |||
Short-term Debt [Line Items] | |||
Amount | $ 1,753,441 | 1,539,150 | |
Select notes to members | Minimum | |||
Short-term Debt [Line Items] | |||
Term of debt | 30 days | ||
Select notes to members | Maximum | |||
Short-term Debt [Line Items] | |||
Term of debt | 270 days | ||
Securities sold under repurchase agreements | |||
Short-term Debt [Line Items] | |||
Amount | $ 0 | $ 200,115 | |
Three year agreement | Revolving credit agreements | |||
Short-term Debt [Line Items] | |||
Term of debt | 3 years | ||
Line of credit facility terminated | 70,000 | ||
Total Commitment | 1,245,000 | $ 1,245,000 | |
Five year agreement | Revolving credit agreements | |||
Short-term Debt [Line Items] | |||
Term of debt | 5 years | ||
Line of credit facility terminated | 55,000 | ||
Total Commitment | $ 1,355,000 | $ 1,355,000 |
Short-Term Borrowings - Summary
Short-Term Borrowings - Summary of short-term debt outstanding and the weighted-average effective interest rates (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Short-term Debt [Line Items] | ||
Amount | $ 4,981,167 | $ 4,582,096 |
Weighted- Average Interest Rate | 0.97% | 0.22% |
Commercial paper dealers, net of discounts | ||
Short-term Debt [Line Items] | ||
Amount | $ 1,024,813 | $ 894,977 |
Weighted- Average Interest Rate | 0.96% | 0.16% |
Commercial paper members, at par | ||
Short-term Debt [Line Items] | ||
Amount | $ 1,358,069 | $ 1,124,607 |
Weighted- Average Interest Rate | 0.92% | 0.14% |
Total commercial paper | ||
Short-term Debt [Line Items] | ||
Amount | $ 2,382,882 | $ 2,019,584 |
Weighted- Average Interest Rate | 0.94% | 0.15% |
Select notes to members | ||
Short-term Debt [Line Items] | ||
Amount | $ 1,753,441 | $ 1,539,150 |
Weighted- Average Interest Rate | 1.11% | 0.30% |
Daily liquidity fund notes to members | ||
Short-term Debt [Line Items] | ||
Amount | $ 427,790 | $ 460,556 |
Weighted- Average Interest Rate | 0.80% | 0.08% |
Medium-term notes to members | ||
Short-term Debt [Line Items] | ||
Amount | $ 417,054 | $ 362,691 |
Weighted- Average Interest Rate | 0.66% | 0.42% |
Securities sold under repurchase agreements | ||
Short-term Debt [Line Items] | ||
Amount | $ 0 | $ 200,115 |
Weighted- Average Interest Rate | 0% | 0.30% |
Short-Term Borrowings - Schedul
Short-Term Borrowings - Schedule of total available and outstanding letters of credit under the revolving credit agreements (Details) - Revolving credit agreements - USD ($) $ in Millions | 12 Months Ended | |
May 31, 2022 | Jun. 07, 2021 | |
Short-term Debt [Line Items] | ||
Total Commitment | $ 2,600 | $ 2,600 |
Letters of Credit Outstanding | 3 | |
Amount Available for Access | 2,597 | |
Three year agreement | ||
Short-term Debt [Line Items] | ||
Total Commitment | 1,245 | 1,245 |
Letters of Credit Outstanding | 0 | |
Amount Available for Access | $ 1,245 | |
Maturity | Nov. 28, 2024 | |
Annual facility fee | 750% | |
Five year agreement | ||
Short-term Debt [Line Items] | ||
Total Commitment | $ 1,355 | $ 1,355 |
Letters of Credit Outstanding | 3 | |
Amount Available for Access | $ 1,352 | |
Maturity | Nov. 28, 2025 | |
Annual facility fee | 1,000% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Mar. 25, 2022 | Feb. 07, 2022 | Oct. 18, 2021 | Oct. 31, 2021 | May 31, 2022 | May 31, 2021 | Jun. 15, 2022 | May 09, 2022 | May 04, 2022 | Nov. 04, 2021 | |
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 21,545,440,000 | $ 20,603,123,000 | ||||||||
Farmer Mac notes payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from notes payable | $ 250,000,000 | |||||||||
Debt | Credit availability concentration risk | Long-term debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Concentration percentage | 75% | 75% | ||||||||
Fixed rate debt | Long-term debt | Credit availability concentration risk | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Concentration percentage | 90% | 89% | ||||||||
Variable rate debt | Long-term debt | Credit availability concentration risk | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Concentration percentage | 10% | 11% | ||||||||
Guaranteed Underwriter Program notes payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 6,105,000,000 | |||||||||
Debt instrument, increase (decrease) | (164,000,000) | |||||||||
Unused borrowing capacity, amount | $ 1,075,000,000 | |||||||||
Maximum percentage of patronage capital distribution allowed | 5% | |||||||||
Guaranteed Underwriter Program notes payable | Committed loan facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Commitment | $ 550,000,000 | |||||||||
Proceeds from issuance of long-term debt | $ 450,000,000 | |||||||||
Repayments of notes payable | $ 614,000,000 | |||||||||
Guaranteed Underwriter Program notes payable | Committed loan facility | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Term of debt | 30 years | |||||||||
Secured long-term debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 16,051,388,000 | $ 16,443,546,000 | ||||||||
Long term debt, percentage | 75% | 80% | ||||||||
Debt instrument, increase (decrease) | $ (393,000,000) | |||||||||
Collateral trust bonds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 6,848,490,000 | $ 7,191,944,000 | ||||||||
Debt instrument, increase (decrease) | (343,000,000) | |||||||||
Extinguishment of debt, amount | 850,000,000 | |||||||||
Collateral trust bonds | 3.05% collateral trust bonds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of debt, amount | $ 400,000,000 | |||||||||
Interest rate | 3.05% | |||||||||
Collateral trust bonds | 2.75% collateral trust bonds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||
Interest rate | 2.75% | |||||||||
Collateral trust bonds | 2.40 Percent Collateral Trust Bonds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Extinguishment of debt, amount | $ 450,000,000 | |||||||||
Interest rate | 2.40% | |||||||||
Federal Agricultural Mortgage Corporation | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument maximum borrowing capacity | $ 5,500,000,000 | |||||||||
Federal Agricultural Mortgage Corporation | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument maximum borrowing capacity | $ 6,000,000,000 | |||||||||
Unsecured long-term debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 5,494,052,000 | $ 4,159,577,000 | ||||||||
Long term debt, percentage | 25% | 20% | ||||||||
Debt instrument, increase (decrease) | $ 1,334,000,000 | |||||||||
Medium-term notes | 1.00% medium term notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||||
Interest rate | 1% | |||||||||
Medium-term notes | Floater rate medium term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 400,000,000 | $ 350,000,000 | ||||||||
Medium-term notes | Floater rate medium term loan | SOFR overnight index swap rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.40% | 0.33% | ||||||||
Medium-term notes | 3.450% medium term notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||
Interest rate | 3.45% | |||||||||
Medium-term notes | 3.859% medium term notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 100,000,000 | |||||||||
Interest rate | 3.859% | |||||||||
Medium-term notes | 1.875% medium term notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||||
Interest rate | 1.875% | |||||||||
Federal Agricultural Mortgage Corporation | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, renewal term | 1 year | |||||||||
Debt instrument, termination written notice, term | 425 days | |||||||||
Federal Agricultural Mortgage Corporation | Farmer Mac notes payable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 3,095,000,000 | |||||||||
Unused borrowing capacity, amount | 2,405,000,000 | |||||||||
Proceeds from notes payable | $ 720,000,000 |
Long-Term Debt - Summary of lon
Long-Term Debt - Summary of long-term debt outstanding and the weighted-average effective interest rates (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 21,545,440 | $ 20,603,123 |
Weighted- Average Interest Rate | 2.68% | 2.66% |
Collateral trust bonds | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 7,097,711 | $ 7,452,711 |
Unamortized discount | (216,608) | (227,046) |
Debt issuance costs | (32,613) | (33,721) |
Total | $ 6,848,490 | $ 7,191,944 |
Weighted- Average Interest Rate | 3.17% | 3.15% |
Guaranteed Underwriter Program notes payable | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 6,105,473 | $ 6,269,303 |
Total | $ 6,105,000 | |
Weighted- Average Interest Rate | 2.69% | 2.76% |
Farmer Mac notes payable | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,977,909 | |
Total | $ 3,094,679 | |
Weighted- Average Interest Rate | 2.33% | 1.68% |
Other secured notes payable | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,755 | $ 4,412 |
Debt issuance costs | (9) | (22) |
Total | $ 2,746 | $ 4,390 |
Weighted- Average Interest Rate | 3.10% | 3.14% |
Secured notes payable | ||
Debt Instrument [Line Items] | ||
Total | $ 9,202,898 | $ 9,251,602 |
Secured long-term debt | ||
Debt Instrument [Line Items] | ||
Total | $ 16,051,388 | $ 16,443,546 |
Weighted- Average Interest Rate | 2.83% | 2.74% |
Medium-term notes sold through dealers | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 5,263,496 | $ 3,943,728 |
Weighted- Average Interest Rate | 2.20% | 2.31% |
Medium-term notes to members | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 250,397 | $ 232,346 |
Weighted- Average Interest Rate | 2.70% | 2.61% |
Unsecured medium-term notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 5,513,893 | $ 4,176,074 |
Unamortized discount | (2,086) | (2,307) |
Debt issuance costs | (19,723) | (18,036) |
Total | $ 5,492,084 | $ 4,155,731 |
Weighted- Average Interest Rate | 2.22% | 2.33% |
Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,979 | $ 3,886 |
Unamortized discount | (10) | (35) |
Debt issuance costs | $ (1) | $ (5) |
Weighted- Average Interest Rate | 0% | 0% |
Total unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Total | $ 1,968 | $ 3,846 |
Unsecured long-term debt | ||
Debt Instrument [Line Items] | ||
Total | $ 5,494,052 | $ 4,159,577 |
Weighted- Average Interest Rate | 2.22% | 2.33% |
Long-Term Debt - Schedule of am
Long-Term Debt - Schedule of amount of long-term debt maturities (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Weighted-Average Interest Rate | ||
Total | 2.68% | 2.66% |
Long-term debt | ||
Amount Maturing | ||
2023 | $ 1,896,355 | |
2024 | 2,143,516 | |
2025 | 2,211,643 | |
2026 | 2,419,500 | |
2027 | 1,602,329 | |
Thereafter | 11,543,147 | |
Total | $ 21,816,490 | |
Weighted-Average Interest Rate | ||
2023 | 1.93% | |
2024 | 1.91% | |
2025 | 1.85% | |
2026 | 2.98% | |
2027 | 1.94% | |
Thereafter | 3.14% | |
Total | 2.68% |
Subordinated Deferrable Debt -
Subordinated Deferrable Debt - Narrative (Details) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Subordinated Deferrable Debt | ||
Interest rate | 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% issuance 2013 | ||
Subordinated Deferrable Debt | ||
Interest rate | 4.75% | |
Term of debt | 30 years | 30 years |
5.25% issuance 2016 | ||
Subordinated Deferrable Debt | ||
Interest rate | 5.25% | |
Term of debt | 30 years | 30 years |
Subordinated debt | Maximum | ||
Subordinated Deferrable Debt | ||
Term of debt | 30 years | |
5.50% issuance 2019 | ||
Subordinated Deferrable Debt | ||
Interest rate | 5.50% | |
Term of debt | 45 years | 45 years |
Period after which debt can be called at par | 5 years | |
5.50% issuance 2019 | 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, 2022 | May 31, 2021 | |
Debt Instrument [Line Items] | ||
Subordinated debt | $ 986,518 | $ 986,315 |
Interest rate | 5.11% | 5.11% |
Subordinated debt | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 1,000,000 | $ 1,000,000 |
Debt issuance costs | (13,482) | (13,685) |
4.75% issuance 2013 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 400,000 | $ 400,000 |
Interest rate | 4.75% | 4.75% |
Interest rate | 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% issuance 2016 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 350,000 | $ 350,000 |
Interest rate | 5.25% | 5.25% |
Interest rate | 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% issuance 2019 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 250,000 | $ 250,000 |
Interest rate | 5.50% | 5.50% |
Interest rate | 5.50% | |
Term of debt | 45 years | 45 years |
Period after which debt can be called at par | May 15, 2024 | May 15, 2024 |
Members' Subordinated Certifi_3
Members' Subordinated Certificates - Narrative (Details) | 2 Months Ended | 12 Months Ended | |
Aug. 08, 2022 | May 31, 2022 | May 31, 2021 | |
Members' subordinated certificates | |||
Interest rate | 5.11% | 5.11% | |
Membership subordinated certificates | |||
Members' subordinated certificates | |||
Maturity period | 100 years | ||
Interest rate | 5% | ||
Member capital security, call option term | 10 years | ||
Membership subordinated certificates | Subsequent Event | |||
Members' subordinated certificates | |||
Member capital security, call option term | 5 years | ||
Securities maturing through 2052 | |||
Members' subordinated certificates | |||
Maturity period | 30 years | ||
Interest rate | 5% | ||
Securities maturing through 2052 | Subsequent Event | |||
Members' subordinated certificates | |||
Interest rate | 5.50% | ||
Weighted average | Membership subordinated certificates | |||
Members' subordinated certificates | |||
Maturity period | 55 years | 56 years |
Members' Subordinated Certifi_4
Members' Subordinated Certificates - Schedule of subordinated borrowing (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | $ 986,518 | $ 986,315 |
Weighted- Average Interest Rate | 2.68% | 2.66% |
Subordinated certificates | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | $ 1,234,161 | $ 1,254,660 |
Weighted- Average Interest Rate | 4.35% | 4.32% |
Certificates maturing 2025 through 2119 | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | $ 628,591 | $ 628,582 |
Subscribed and unissued | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | 12 | 12 |
Total membership subordinated certificates | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | $ 628,603 | $ 628,594 |
Weighted- Average Interest Rate | 4.95% | 4.95% |
Interest-bearing loan subordinated certificates maturing through 2045 | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | $ 216,266 | $ 223,067 |
Non-interest-bearing loan subordinated certificates maturing through 2047 | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | 121,744 | 132,203 |
Subscribed and unissued | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | 45 | 45 |
Loan subordinated certificates | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | $ 338,055 | $ 355,315 |
Weighted- Average Interest Rate | 2.64% | 2.61% |
Interest-bearing guarantee subordinated certificates maturing through 2044 | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | $ 27,333 | $ 31,581 |
Weighted- Average Interest Rate | 5.90% | 6.06% |
Loan and guarantee subordinated certificates | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | $ 365,388 | $ 386,896 |
Weighted- Average Interest Rate | 2.88% | 2.89% |
Securities maturing through 2052 | ||
Subordinated Deferrable Debt | ||
Subordinated deferrable debt | $ 240,170 | $ 239,170 |
Weighted- Average Interest Rate | 5% | 5% |
Members' Subordinated Certifi_5
Members' Subordinated Certificates - Schedule of amount of members' subordinated certificates maturing in each of the five fiscal years (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Amount Maturing | ||
Total long-term debt | $ 986,518 | $ 986,315 |
Members' certificates, exclusive of certificates amortized annually | ||
Amount Maturing | ||
2023 | 17,034 | |
2024 | 8,092 | |
2025 | 8,594 | |
2026 | 53,515 | |
2027 | 8,716 | |
Thereafter | 1,138,153 | |
Total long-term debt | $ 1,234,104 | |
Weighted-Average Interest Rate | ||
2023 | 4% | |
2024 | 2.19% | |
2025 | 2.47% | |
2026 | 2.92% | |
2027 | 1.87% | |
Thereafter | 4.47% | |
Total (as a percent) | 4.35% | |
Loan subordinated certificates | ||
Amount Maturing | ||
Total long-term debt | $ 338,055 | $ 355,315 |
Other information | ||
Payments not received on certificates subscribed and unissued | 60 | |
Average amortization of debt | $ 12,000 | |
Amortization as a percentage of amortizing loan subordinated debt outstanding | 7% | |
Amortizing member loan subordinated certificates | ||
Amount Maturing | ||
Total long-term debt | $ 175,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Schedule of derivative notional amount and weighted-average rates (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Derivative [Line Items] | ||
Notional Amount | $ 8,061,631 | $ 8,978,516 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 7,937,631 | $ 8,978,516 |
Weighted- Average Rate Paid | 2.33% | 2.19% |
Weighted- Average Rate Received | 1.64% | 0.89% |
Pay-fixed swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 5,957,631 | $ 6,579,516 |
Weighted- Average Rate Paid | 2.60% | 2.65% |
Weighted- Average Rate Received | 1.24% | 0.20% |
Receive-fixed swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,980,000 | $ 2,399,000 |
Weighted- Average Rate Paid | 1.53% | 0.92% |
Weighted- Average Rate Received | 2.86% | 2.80% |
Forward pay-fixed swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 124,000 | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of derivative instruments maturity (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Derivative [Line Items] | ||
Notional Amount | $ 8,061,631 | $ 8,978,516 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 7,937,631 | $ 8,978,516 |
2023 | 542,398 | |
2024 | 615,574 | |
2025 | 100,000 | |
2026 | 787,895 | |
2027 | 43,751 | |
Thereafter | $ 5,972,013 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 06, 2021 USD ($) | Oct. 31, 2021 USD ($) | May 31, 2022 USD ($) counterparty | May 31, 2021 USD ($) | Jul. 20, 2021 USD ($) agreement | |
Derivative [Line Items] | |||||
Treasury rate lock, number of agreements | agreement | 2 | ||||
Derivative assets, notional amount | $ 4,791,699 | $ 2,560,618 | |||
Number of counterparties subject to ratings trigger and early termination provision | counterparty | 1 | ||||
Notional Amount | $ 8,061,631 | $ 8,978,516 | |||
Farmer Mac notes payable | |||||
Derivative [Line Items] | |||||
Proceeds from notes payable | $ 250,000 | ||||
Treasury lock | Cash flow hedging | |||||
Derivative [Line Items] | |||||
Derivative assets, notional amount | $ 250,000 | ||||
Derivative, cash received on hedge | $ 5,000 | ||||
AOCI, cash flow hedge, cumulative gain (loss), after tax | $ 4,000 | ||||
Interest rate swaps with CFC rating trigger and treasury lock | |||||
Derivative [Line Items] | |||||
Notional Amount | 233,000 | ||||
Payable due from CFC | 13,000 | ||||
Interest rate swaps and treasury lock | |||||
Derivative [Line Items] | |||||
Derivative, net liability position | $ 27,000 | ||||
Interest rate swaps and treasury lock | Derivatives | Counterparty exposure risk | |||||
Derivative [Line Items] | |||||
Concentration percentage | 24% | 24% |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule of derivative instruments on consolidated balance sheets (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Derivative Asset [Abstract] | ||
Derivative assets, fair value | $ 222,042 | $ 121,259 |
Derivative assets, notional amount | 4,791,699 | 2,560,618 |
Derivative Liability [Abstract] | ||
Derivative liabilities, fair value | 128,282 | 584,989 |
Derivative liabilities, notional amount | 3,269,932 | 6,417,898 |
Derivative, notional amount | 8,061,631 | 8,978,516 |
Interest rate swaps | ||
Derivative Asset [Abstract] | ||
Derivative assets, fair value | 222,042 | 121,259 |
Derivative assets, notional amount | 4,791,699 | 2,560,618 |
Derivative Liability [Abstract] | ||
Derivative liabilities, fair value | 128,282 | 584,989 |
Derivative liabilities, notional amount | 3,269,932 | 6,417,898 |
Derivative, notional amount | 7,937,631 | 8,978,516 |
Forward pay-fixed swaps | ||
Derivative Liability [Abstract] | ||
Derivative, notional amount | $ 124,000 | $ 0 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Schedule of derivatives offsetting (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Derivative [Line Items] | ||
Derivative asset, fair value, amount not offset against collateral | $ 222,042 | $ 121,259 |
Derivative liability, fair value, amount not offset against collateral | 128,282 | 584,989 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative assets | 222,042 | 121,259 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative asset, fair value, amount not offset against collateral | 222,042 | 121,259 |
Derivative, Collateral, Obligation to Return Securities | 103,228 | 121,259 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative asset, fair value, amount offset against collateral | 118,814 | 0 |
Derivative Liability, Fair Value, Gross Liability | 128,282 | 584,989 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative liability, fair value, amount not offset against collateral | 128,282 | 584,989 |
Derivative, Collateral, Right to Reclaim Securities | 103,228 | 121,259 |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative liability, fair value, amount offset against collateral | $ 25,054 | $ 463,730 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Summary of gains and losses recorded on the consolidated statements of operations for the entity's derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2022 | May 31, 2021 | May 31, 2020 | |
Derivative [Line Items] | |||
Derivative cash settlements interest expense | $ 0 | $ 0 | $ 0 |
Derivative forward value gains (losses) | 557,867 | 621,946 | (734,278) |
Derivative gains (losses) | 456,482 | 506,301 | (790,151) |
Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative cash settlements interest expense | (101,385) | (115,645) | (55,873) |
Derivative forward value gains (losses) | 557,867 | 621,946 | (734,278) |
Derivative gains (losses) | $ 456,482 | $ 506,301 | $ (790,151) |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Derivatives - Schedule of notional amounts of derivative instruments having rating triggers (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Derivative [Line Items] | ||
Notional Amount | $ 8,061,631 | $ 8,978,516 |
Interest rate swap rating trigger | ||
Derivative [Line Items] | ||
Notional Amount | 5,866,218 | |
Payable Due from CFC | (27,087) | |
Receivable Due to CFC | 82,931 | |
Net Receivable (Payable) | 55,844 | |
Falls below A3/A- | Interest rate swap rating trigger | ||
Derivative [Line Items] | ||
Notional Amount | 36,110 | |
Payable Due from CFC | (3,834) | |
Receivable Due to CFC | 0 | |
Net Receivable (Payable) | (3,834) | |
Falls below Baa1/BBB+ | Interest rate swap rating trigger | ||
Derivative [Line Items] | ||
Notional Amount | 5,503,211 | |
Payable Due from CFC | (23,253) | |
Receivable Due to CFC | 77,069 | |
Net Receivable (Payable) | 53,816 | |
Falls to or below Baa2/BBB | Interest rate swap rating trigger | ||
Derivative [Line Items] | ||
Notional Amount | 326,897 | |
Payable Due from CFC | 0 | |
Receivable Due to CFC | 5,862 | |
Net Receivable (Payable) | $ 5,862 |
Equity - Narrative (Details)
Equity - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) | May 31, 2021 USD ($) | May 31, 2022 USD ($) reserve | May 31, 2021 USD ($) | May 31, 2020 USD ($) | May 31, 2019 USD ($) | |
Equity | |||||||
Stockholders' equity, period increase (decrease) | $ 742,000 | ||||||
Total equity | $ 1,399,879 | 2,141,969 | $ 1,399,879 | $ 648,822 | $ 1,303,882 | ||
Net income (loss) | 798,537 | 813,978 | (589,430) | ||||
Patronage capital retirement | $ 59,979 | 61,911 | 64,755 | ||||
Minimum percentage of paid-in-capital required to be maintained under District of Columbia cooperative law | 50% | ||||||
Cash flow hedging | |||||||
Equity | |||||||
Accumulated other comprehensive income expected to be reclassified into earnings over the next 12 months | $ 1,000 | ||||||
Patronage Capital Allocated | |||||||
Equity | |||||||
Total equity | 923,970 | 954,988 | 923,970 | 894,066 | 860,578 | ||
Net income (loss) | 88,583 | 89,761 | 96,310 | ||||
Patronage capital retirement | 57,565 | 59,857 | 62,822 | ||||
Members’ Capital Reserve | |||||||
Equity | |||||||
Total equity | 909,749 | 1,062,286 | 909,749 | 807,320 | 759,097 | ||
Net income (loss) | 152,537 | 102,429 | 48,223 | ||||
Membership Fees and Educational Fund | |||||||
Equity | |||||||
Total equity | 3,125 | 3,387 | 3,125 | 3,193 | $ 2,982 | ||
Net income (loss) | $ 1,200 | $ 900 | $ 1,000 | ||||
CFC | |||||||
Equity | |||||||
General reserve required to be maintained as a percentage of membership fees collected | 50% | ||||||
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 | |||||||
Net income (loss) | $ 90,000 | $ 89,000 | |||||
Percentage of prior year's allocated patronage capital required to be retired | 50% | ||||||
Percentage of prior year's allocated patronage capital required to be held | 50% | ||||||
Period for which prior year's allocated patronage capital is required to be held | 25 years | ||||||
Retirement of allocated net earnings, percentage | 50% | ||||||
CFC | Retained Earnings, Appropriated Patronage Capital Allocated and Retired | |||||||
Equity | |||||||
Net income (loss) | $ 58,000 | ||||||
CFC | Retained Earnings, Appropriated Patronage Capital Allocated and Retired | Subsequent Event | |||||||
Equity | |||||||
Net income (loss) | $ 59,000 | ||||||
CFC | Retained earnings allocation of fifty percent of prior year patronage capital allocation | |||||||
Equity | |||||||
Net income (loss) | 45,000 | ||||||
CFC | Retained earnings allocation of fifty percent of prior year patronage capital allocation | Subsequent Event | |||||||
Equity | |||||||
Net income (loss) | $ 44,000 | ||||||
Retirement of allocated net earnings, percentage | 50% | ||||||
CFC | Retained earnings prior year allocation held for 25 years | |||||||
Equity | |||||||
Net income (loss) | $ 13,000 | ||||||
Period for which prior year's allocated patronage capital is required to be held | 25 years | ||||||
CFC | Retained earnings prior year allocation held for 25 years | Subsequent Event | |||||||
Equity | |||||||
Net income (loss) | $ 15,000 | ||||||
Period for which prior year's allocated patronage capital is required to be held | 25 years | ||||||
CFC | Members’ Capital Reserve | |||||||
Equity | |||||||
Net income (loss) | $ 102,000 | $ 153,000 | |||||
CFC | Membership Fees and Educational Fund | |||||||
Equity | |||||||
Net income (loss) | $ 1,000 | $ 1,000 | |||||
RTFC | |||||||
Equity | |||||||
Minimum percentage of paid-in-capital required to be maintained under District of Columbia cooperative law | 50% | ||||||
RTFC | Minimum | |||||||
Equity | |||||||
Percentage of retirement of allocated net earnings in cash | 20% | ||||||
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% | ||||||
NCSC | |||||||
Equity | |||||||
Minimum percentage of paid-in-capital required to be maintained under District of Columbia cooperative law | 50% | ||||||
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% | ||||||
RTFC | |||||||
Equity | |||||||
Percentage of ownership by minority owners | 100% | ||||||
NCSC | |||||||
Equity | |||||||
Percentage of ownership by parent | 100% |
Equity - Schedule of components
Equity - Schedule of components of equity (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Components of equity | ||||
Prior year-end cumulative derivative forward value losses | $ (461,162) | $ (1,079,739) | ||
Current-year derivative forward value gains | 557,867 | 621,946 | $ (734,278) | |
Current year-end cumulative derivative forward value gains (losses) | 92,363 | (461,162) | ||
Retained equity | 2,112,315 | 1,374,973 | ||
Accumulated other comprehensive income (loss) | 2,258 | (25) | ||
Total CFC equity | 2,114,573 | 1,374,948 | ||
Noncontrolling interests | 27,396 | 24,931 | ||
Total equity | 2,141,969 | 1,399,879 | 648,822 | $ 1,303,882 |
Membership Fees and Educational Fund | ||||
Components of equity | ||||
Total members' equity | 3,387 | 3,125 | ||
Total equity | 3,387 | 3,125 | 3,193 | 2,982 |
Membership fees | ||||
Components of equity | ||||
Total members' equity | 970 | 968 | ||
Educational fund | ||||
Components of equity | ||||
Total members' equity | 2,417 | 2,157 | ||
Patronage Capital Allocated | ||||
Components of equity | ||||
Total members' equity | 954,988 | 923,970 | ||
Total equity | 954,988 | 923,970 | 894,066 | 860,578 |
Members’ capital reserve | ||||
Components of equity | ||||
Total members' equity | 1,062,286 | 909,749 | ||
Total equity | 1,062,286 | 909,749 | 807,320 | 759,097 |
Unallocated net income (loss) | ||||
Components of equity | ||||
Total members' equity | (709) | (709) | ||
Unallocated Net Income (Loss) | ||||
Components of equity | ||||
Total equity | 91,654 | (461,871) | $ (1,076,548) | $ (345,775) |
CFC | ||||
Components of equity | ||||
Current-year derivative forward value gains | $ (553,525) | $ (618,577) |
Equity - Summary of activity in
Equity - Summary of activity in accumulated other comprehensive income account by component (Details) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,399,879 | $ 648,822 |
Changes in unrealized gains (losses) | 2,619 | 1,545 |
Realized (gains) losses reclassified into earnings | (336) | 340 |
Ending balance | 2,141,969 | 1,399,879 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (25) | (1,910) |
Ending balance | 2,258 | (25) |
Unrealized Gains on Derivative Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 1,718 | 2,130 |
Changes in unrealized gains (losses) | 4,028 | 0 |
Realized (gains) losses reclassified into earnings | (623) | (412) |
Ending balance | 5,123 | 1,718 |
Unrealized Losses on Defined Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (1,743) | (4,040) |
Changes in unrealized gains (losses) | (1,409) | 1,545 |
Realized (gains) losses reclassified into earnings | 287 | 752 |
Ending balance | $ (2,865) | $ (1,743) |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) | 12 Months Ended | |||||
May 31, 2022 USD ($) participant salary hour | May 31, 2021 USD ($) participant | May 31, 2020 USD ($) | Jan. 01, 2022 | Jan. 01, 2021 | Jan. 01, 2020 | |
Defined benefit multiemployer master pension plan | ||||||
Multiemployer plans requisite service period | 1 year | |||||
Percentage of joint and surviving spouse annuity | 50% | |||||
Annuity factor (as a percent) | 1.70% | |||||
Number of highest base salaries | salary | 5 | |||||
Contributions made by CFC | $ 5,000,000 | $ 4,000,000 | $ 5,000,000 | |||
Limit on the compensation to be used in the calculation of pension benefits | 305,000 | |||||
Liability, defined benefit pension plan | 5,000,000 | |||||
Contributions by employer | 2,000,000 | 1,000,000 | 2,000,000 | |||
Payment for settlement | 2,000,000 | 1,000,000 | 2,000,000 | |||
Accumulated other comprehensive income (loss) | 2,258,000 | (25,000) | ||||
Defined benefit plan, net periodic benefit cost (credit), gain (loss) due to settlement and curtailment | $ 1,000,000 | 1,000,000 | 1,000,000 | |||
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% | |||||
Minimum employee contribution (as a percent) | 2% | |||||
Contributions made by CFC | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||
Minimum | ||||||
Defined benefit multiemployer master pension plan | ||||||
Funded status, more than 80% (as a percent) | 80% | 80% | 80% | |||
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% | 5% | 5% | |||
Pension restoration plan | ||||||
Defined benefit multiemployer master pension plan | ||||||
Number of participants | participant | 1 | |||||
Executive benefit restoration plan | ||||||
Defined benefit multiemployer master pension plan | ||||||
Number of participants | participant | 3 | 5 | ||||
Pension expense | $ 1,000,000 | $ 2,000,000 | $ 2,000,000 | |||
Accumulated other comprehensive income expected to be reclassified into earnings over the next 12 months | 1,000,000 | |||||
Accumulated other comprehensive income (loss) | $ 3,000,000 | $ 2,000,000 |
Guarantees - Summary of total g
Guarantees - Summary of total guarantees by type of guarantee and member class (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | $ 730,783 | $ 689,080 |
Long-term tax-exempt bonds | ||
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | 122,150 | 145,025 |
Letters of credit | ||
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | 450,354 | 389,735 |
Other guarantees | ||
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | 158,279 | 154,320 |
CFC | ||
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | 706,813 | 672,530 |
CFC | Distribution | ||
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | 314,925 | 251,023 |
CFC | Power supply | ||
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | 378,516 | 415,984 |
CFC | Statewide and associate | ||
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | 13,372 | 5,523 |
NCSC | ||
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | 23,970 | 16,550 |
Variable interest entity, primary beneficiary | ||
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | 23,970 | 16,550 |
Variable interest entity, primary beneficiary | Statewide and associate | ||
Guarantor Obligations [Line Items] | ||
CFC third-party guarantees | $ 11,000 | $ 3,000 |
Guarantees - Narrative (Details
Guarantees - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2022 | May 31, 2021 | Mar. 31, 2021 | May 31, 2020 | |
Guarantor Obligations [Line Items] | ||||
CFC third-party guarantees | $ 730,783 | $ 689,080 | ||
Guarantee obligations unsecured | $ 466,000 | $ 415,000 | ||
Guarantee obligations unsecured commitment as percentage of total commitment | 64% | 60% | ||
Guarantee liability recorded | $ 13,000 | $ 10,000 | ||
Guaranty liabilities | 12,000 | 9,000 | ||
Other guarantees | ||||
Guarantor Obligations [Line Items] | ||||
CFC third-party guarantees | 158,279 | 154,320 | ||
Guarantor obligations, maximum exposure, undiscounted | 158,000 | 154,000 | ||
Financial standby letter of credit | Adjustable and floating rate tax exempt bonds | ||||
Guarantor Obligations [Line Items] | ||||
CFC third-party guarantees | 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 | 95,000 | |||
Letters of credit | ||||
Guarantor Obligations [Line Items] | ||||
CFC third-party guarantees | 450,354 | 389,735 | ||
Guarantee obligations secured | 118,000 | 104,000 | ||
Long-term tax-exempt bonds | ||||
Guarantor Obligations [Line Items] | ||||
CFC third-party guarantees | 122,150 | 145,025 | ||
Guarantee obligations liquidity provided to member carrying value | 122,000 | |||
Guarantee type, other secured | ||||
Guarantor Obligations [Line Items] | ||||
Guarantor obligations, maximum exposure, undiscounted | 25,000 | 25,000 | ||
CFC | ||||
Guarantor Obligations [Line Items] | ||||
CFC third-party guarantees | $ 706,813 | 672,530 | ||
CFC | Brazos electric power cooperative | ||||
Guarantor Obligations [Line Items] | ||||
Letters of credit outstanding, amount | $ 1,000 | $ 3,000 |
Guarantees - Schedule of maturi
Guarantees - Schedule of maturities of outstanding guarantees (Details) - Guarantee obligations $ in Thousands | May 31, 2022 USD ($) |
Guarantor Obligations [Line Items] | |
2023 | $ 238,694 |
2024 | 60,860 |
2025 | 54,766 |
2026 | 157,448 |
2027 | 19,605 |
Thereafter | 199,410 |
Total | $ 730,783 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of carrying and fair values for entity's financial instruments (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 153,551 | $ 295,063 |
Cash and cash equivalents | 153,551 | 295,063 |
Restricted cash | 7,563 | 8,298 |
Equity securities, at fair value | 33,758 | 35,102 |
Debt securities trading, at fair value | 566,146 | 576,175 |
Deferred compensation investments | 6,710 | 7,222 |
Loans to members, net | 29,995,826 | 28,341,429 |
Loans to members, net | 28,595,111 | 29,967,692 |
Accrued interest receivable | 111,418 | 107,856 |
Accrued interest receivable | 111,418 | 107,856 |
Derivative assets | 222,042 | 121,259 |
Financial assets | 31,097,014 | 29,492,404 |
Financial assets | 29,696,299 | 31,118,667 |
Liabilities [Abstract] | ||
Short-term borrowings | 4,981,167 | 4,582,096 |
Short-term borrowings | 4,978,580 | 4,582,329 |
Long-term debt | 21,545,440 | 20,603,123 |
Long-term debt | 21,106,750 | 21,799,736 |
Accrued interest payable | 131,950 | 123,672 |
Guarantee liability | 12,764 | 10,041 |
Guarantee liability | 13,083 | 10,841 |
Derivative liabilities | 128,282 | 584,989 |
Subordinated deferrable debt | 986,518 | 986,315 |
Subordinated deferrable debt | 960,869 | 1,062,748 |
Members’ subordinated certificates | 1,234,161 | 1,254,660 |
Members’ subordinated certificates | 1,234,161 | 1,254,660 |
Financial liabilities | 29,020,282 | 28,144,896 |
Financial liabilities | 28,553,675 | 29,418,975 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | 153,551 | 295,063 |
Restricted cash | 7,563 | 8,298 |
Equity securities, at fair value | 33,758 | 35,102 |
Debt securities trading, at fair value | 0 | 0 |
Deferred compensation investments | 6,710 | 7,222 |
Loans to members, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Financial assets | 201,582 | 345,685 |
Liabilities [Abstract] | ||
Short-term borrowings | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Guarantee liability | 0 | 0 |
Derivative liabilities | 0 | 0 |
Subordinated deferrable debt | 250,800 | 265,200 |
Members’ subordinated certificates | 0 | 0 |
Financial liabilities | 250,800 | 265,200 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Equity securities, at fair value | 0 | 0 |
Debt securities trading, at fair value | 566,146 | 576,175 |
Deferred compensation investments | 0 | 0 |
Loans to members, net | 0 | 0 |
Accrued interest receivable | 111,418 | 107,856 |
Derivative assets | 222,042 | 121,259 |
Financial assets | 899,606 | 805,290 |
Liabilities [Abstract] | ||
Short-term borrowings | 4,978,580 | 4,582,329 |
Long-term debt | 12,248,695 | 12,476,073 |
Accrued interest payable | 131,950 | 123,672 |
Guarantee liability | 0 | 0 |
Derivative liabilities | 128,282 | 584,989 |
Subordinated deferrable debt | 710,069 | 797,548 |
Members’ subordinated certificates | 0 | 0 |
Financial liabilities | 18,197,576 | 18,564,611 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Equity securities, at fair value | 0 | 0 |
Debt securities trading, at fair value | 0 | 0 |
Deferred compensation investments | 0 | 0 |
Loans to members, net | 28,595,111 | 29,967,692 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Financial assets | 28,595,111 | 29,967,692 |
Liabilities [Abstract] | ||
Short-term borrowings | 0 | 0 |
Long-term debt | 8,858,055 | 9,323,663 |
Accrued interest payable | 0 | 0 |
Guarantee liability | 13,083 | 10,841 |
Derivative liabilities | 0 | 0 |
Subordinated deferrable debt | 0 | 0 |
Members’ subordinated certificates | 1,234,161 | 1,254,660 |
Financial liabilities | $ 10,105,299 | $ 10,589,164 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of fair value, assets and liabilities measured on recurring basis (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | $ 33,758 | $ 35,102 |
Debt securities trading, at fair value | 566,146 | 576,175 |
Deferred compensation investments | 6,710 | 7,222 |
Derivative assets | 222,042 | 121,259 |
Derivative liabilities | 128,282 | 584,989 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities trading, at fair value | 0 | 0 |
Deferred compensation investments | 6,710 | 7,222 |
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 | 566,146 | 576,175 |
Deferred compensation investments | 0 | 0 |
Derivative assets | 222,042 | 121,259 |
Derivative liabilities | 128,282 | 584,989 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 33,758 | 35,102 |
Debt securities trading, at fair value | 566,146 | 576,175 |
Deferred compensation investments | 6,710 | 7,222 |
Derivative assets | 222,042 | 121,259 |
Derivative liabilities | 128,282 | 584,989 |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 33,758 | 35,102 |
Debt securities trading, at fair value | 0 | 0 |
Deferred compensation investments | 6,710 | 7,222 |
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, at fair value | 0 | 0 |
Debt securities trading, at fair value | 566,146 | 576,175 |
Deferred compensation investments | 0 | 0 |
Derivative assets | 222,042 | 121,259 |
Derivative liabilities | $ 128,282 | $ 584,989 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) | May 31, 2022 USD ($) borrower | May 31, 2021 USD ($) borrower |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets | $ 29,696,299,000 | $ 31,118,667,000 |
Financial liabilities | $ 28,553,675,000 | $ 29,418,975,000 |
Number of active borrowers | borrower | 883 | 892 |
Loans to members, net | $ 28,595,111,000 | $ 29,967,692,000 |
Loans to members | 30,063,386,000 | 28,426,961,000 |
Non-performing loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to members | 227,790,000 | $ 237,497,000 |
RTFC | Non-performing loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of active borrowers | borrower | 2 | |
Loans to members | 0 | $ 9,185,000 |
RTFC | Non-performing loans | Collateral-dependent Loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 9,000,000 | |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets | 28,595,111,000 | 29,967,692,000 |
Financial liabilities | 10,105,299,000 | 10,589,164,000 |
Loans to members, net | 28,595,111,000 | 29,967,692,000 |
Level 3 | Recurring basis | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial assets | $ 0 | |
Financial liabilities | 0 | |
Level 3 | Fair value, nonrecurring | RTFC | Non-performing loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans to members, net | $ 6,000,000 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of variable interest entities (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Variable Interest Entity [Line Items] | ||
Other assets | $ 23,885 | $ 24,102 |
Total assets | 31,251,382 | 29,638,363 |
Total liabilities | 29,109,413 | 28,238,484 |
Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Loans to members | 1,178,479 | 1,127,251 |
Other assets | 9,672 | 11,343 |
Total assets | 1,188,151 | 1,138,594 |
Total liabilities | $ 22,958 | $ 30,187 |
Variable Interest Entities - _2
Variable Interest Entities - Schedule of variable interest entities, credit commitments (Details) - USD ($) $ in Thousands | May 31, 2022 | May 31, 2021 |
Variable Interest Entity [Line Items] | ||
CFC third-party guarantees | $ 730,783 | $ 689,080 |
Consolidated variable interest entities | ||
Variable Interest Entity [Line Items] | ||
Total CFC credit commitments | 5,500,000 | 5,500,000 |
Borrowings payable to CFC | 1,158,583 | 1,107,185 |
CFC third-party guarantees | 23,970 | 16,550 |
Other credit enhancements | 4,044 | 8,386 |
Total credit enhancements | 28,014 | 24,936 |
Total outstanding commitments | 1,186,597 | 1,132,121 |
CFC credit commitments available | $ 4,313,403 | $ 4,367,879 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) $ in Millions | May 31, 2022 USD ($) director vote | Jun. 07, 2021 USD ($) |
Revolving credit agreements | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, maximum borrowing capacity | $ 2,600 | $ 2,600 |
Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | $ 28 | |
RTFC | Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of votes per member for election of directors | vote | 1 | |
RTFC | Variable interest entity, primary beneficiary | Revolving credit agreements | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, maximum borrowing capacity | $ 1,000 | |
RTFC | Variable interest entity, primary beneficiary | Revolving Term Loan | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, maximum borrowing capacity | $ 1,500 | |
NCSC | Variable interest entity, primary beneficiary | ||
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 | |
NCSC | Variable interest entity, primary beneficiary | Revolving credit agreements | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, maximum borrowing capacity | $ 1,500 | |
NCSC | Variable interest entity, primary beneficiary | Revolving Term Loan | ||
Variable Interest Entity [Line Items] | ||
Variable interest entity, maximum borrowing capacity | $ 1,500 |
Business Segments - Narrative (
Business Segments - Narrative (Details) | 12 Months Ended |
May 31, 2022 operating_segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Business Segments - Schedule of
Business Segments - Schedule of segment presentation for the consolidated statements of operations and consolidated balance sheets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | |
Statement of operations: | ||||
Interest income | $ 1,141,243 | $ 1,116,601 | $ 1,151,286 | |
Interest expense | (705,534) | (702,063) | (821,089) | |
Derivative cash settlements interest expense | 0 | 0 | 0 | |
Interest expense | (705,534) | (702,063) | (821,089) | |
Net interest income | 435,709 | 414,538 | 330,197 | |
Benefit (provision) for credit losses | 17,972 | (28,507) | (35,590) | |
Net interest income after benefit (provision) for credit losses | 453,681 | 386,031 | 294,607 | |
Non-interest income: | ||||
Fee and other income | 17,193 | 18,929 | 22,961 | |
Derivative forward value gains (losses) | 557,867 | 621,946 | (734,278) | |
Derivative gains (losses) | 456,482 | 506,301 | (790,151) | |
Investment securities losses | (30,179) | 1,495 | 9,431 | |
Total non-interest income | 443,496 | 526,725 | (757,759) | |
Non-interest expense: | ||||
General and administrative expenses | (95,186) | (94,705) | (101,167) | |
Losses on early extinguishment of debt | (754) | (1,456) | (683) | |
Other non-interest expense | (1,552) | (1,619) | (25,588) | |
Total non-interest expense | (97,492) | (97,780) | (127,438) | |
Income (loss) before income taxes | 799,685 | 814,976 | (590,590) | |
Income tax benefit (provision) | (1,148) | (998) | 1,160 | |
Net income (loss) | 798,537 | 813,978 | (589,430) | |
Assets: | ||||
Total loan outstanding | 30,051,354 | 28,415,107 | ||
Deferred loan origination costs | 12,032 | 11,854 | ||
Loans to members | 30,063,386 | 28,426,961 | ||
Less: Allowance for credit losses | (67,560) | (85,532) | (53,125) | $ (17,535) |
Loans to members, net | 29,995,826 | 28,341,429 | ||
Other assets | 1,255,556 | 1,296,934 | ||
Total assets | 31,251,382 | 29,638,363 | ||
Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | (101,385) | (115,645) | (55,873) | |
Derivative cash settlements interest expense | (101,385) | (115,645) | (55,873) | |
Non-interest income: | ||||
Derivative forward value gains (losses) | 557,867 | 621,946 | (734,278) | |
Derivative gains (losses) | 456,482 | 506,301 | (790,151) | |
Operating segments | ||||
Statement of operations: | ||||
Interest income | 1,176,468 | 1,152,175 | 1,190,504 | |
Interest expense | (740,759) | (737,637) | (860,307) | |
Derivative cash settlements interest expense | (101,385) | (115,645) | (55,873) | |
Interest expense | (842,144) | (853,282) | (916,180) | |
Net interest income | 334,324 | 298,893 | 274,324 | |
Benefit (provision) for credit losses | 21,306 | (31,670) | (36,862) | |
Net interest income after benefit (provision) for credit losses | 355,630 | 267,223 | 237,462 | |
Non-interest income: | ||||
Fee and other income | 22,496 | 29,695 | 39,105 | |
Derivative gains (losses) | 0 | 0 | 9,431 | |
Investment securities losses | (30,179) | 1,495 | 48,536 | |
Total non-interest income | (7,683) | 31,190 | 48,536 | |
Non-interest expense: | ||||
General and administrative expenses | (101,567) | (100,934) | (107,748) | |
Losses on early extinguishment of debt | (754) | (1,456) | (683) | |
Other non-interest expense | (3,808) | (2,993) | (33,879) | |
Total non-interest expense | (106,129) | (105,383) | (142,310) | |
Income (loss) before income taxes | 241,818 | 193,030 | 143,688 | |
Income tax benefit (provision) | (1,148) | (998) | 1,160 | |
Net income (loss) | 240,670 | 192,032 | 144,848 | |
Assets: | ||||
Total loan outstanding | 31,209,938 | 29,522,291 | ||
Deferred loan origination costs | 12,032 | 11,854 | ||
Loans to members | 31,221,970 | 29,534,145 | ||
Less: Allowance for credit losses | (70,295) | (91,601) | ||
Loans to members, net | 31,151,675 | 29,442,544 | ||
Other assets | 1,343,278 | 1,391,958 | ||
Total assets | 32,494,953 | 30,834,502 | ||
Operating segments | Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | 0 | 0 | 0 | |
Non-interest income: | ||||
Derivative forward value gains (losses) | 0 | 0 | 0 | |
Reclasses and adjustments | ||||
Statement of operations: | ||||
Interest income | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | |
Derivative cash settlements interest expense | 101,385 | 115,645 | 55,873 | |
Interest expense | 101,385 | 115,645 | 55,873 | |
Net interest income | 101,385 | 115,645 | 55,873 | |
Benefit (provision) for credit losses | 0 | 0 | 0 | |
Net interest income after benefit (provision) for credit losses | 101,385 | 115,645 | 55,873 | |
Non-interest income: | ||||
Fee and other income | 0 | 0 | 0 | |
Derivative gains (losses) | 456,482 | 506,301 | (790,151) | |
Investment securities losses | 0 | 0 | 0 | |
Total non-interest income | 456,482 | 506,301 | (790,151) | |
Non-interest expense: | ||||
General and administrative expenses | 0 | 0 | 0 | |
Losses on early extinguishment of debt | 0 | 0 | 0 | |
Other non-interest expense | 0 | 0 | 0 | |
Total non-interest expense | 0 | 0 | 0 | |
Income (loss) before income taxes | 557,867 | 621,946 | (734,278) | |
Income tax benefit (provision) | 0 | 0 | 0 | |
Net income (loss) | 557,867 | 621,946 | (734,278) | |
Assets: | ||||
Total loan outstanding | 0 | 0 | ||
Deferred loan origination costs | 0 | 0 | ||
Loans to members | 0 | 0 | ||
Less: Allowance for credit losses | 0 | 0 | ||
Loans to members, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 0 | 0 | ||
Reclasses and adjustments | Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | (101,385) | (115,645) | (55,873) | |
Non-interest income: | ||||
Derivative forward value gains (losses) | 557,867 | 621,946 | (734,278) | |
Intersegment eliminations | ||||
Statement of operations: | ||||
Interest income | (35,225) | (35,574) | (39,218) | |
Interest expense | 35,225 | 35,574 | 39,218 | |
Derivative cash settlements interest expense | 0 | 0 | 0 | |
Interest expense | 35,225 | 35,574 | 39,218 | |
Net interest income | 0 | 0 | 0 | |
Benefit (provision) for credit losses | (3,334) | 3,163 | 1,272 | |
Net interest income after benefit (provision) for credit losses | (3,334) | 3,163 | 1,272 | |
Non-interest income: | ||||
Fee and other income | (5,303) | (10,766) | (16,144) | |
Derivative gains (losses) | 0 | 0 | 0 | |
Investment securities losses | 0 | 0 | 0 | |
Total non-interest income | (5,303) | (10,766) | (16,144) | |
Non-interest expense: | ||||
General and administrative expenses | 6,381 | 6,229 | 6,581 | |
Losses on early extinguishment of debt | 0 | 0 | 0 | |
Other non-interest expense | 2,256 | 1,374 | 8,291 | |
Total non-interest expense | 8,637 | 7,603 | 14,872 | |
Income (loss) before income taxes | 0 | 0 | 0 | |
Income tax benefit (provision) | 0 | 0 | 0 | |
Net income (loss) | 0 | 0 | 0 | |
Assets: | ||||
Total loan outstanding | (1,158,584) | (1,107,184) | ||
Deferred loan origination costs | 0 | 0 | ||
Loans to members | (1,158,584) | (1,107,184) | ||
Less: Allowance for credit losses | 2,735 | 6,069 | ||
Loans to members, net | (1,155,849) | (1,101,115) | ||
Other assets | (87,722) | (95,024) | ||
Total assets | (1,243,571) | (1,196,139) | ||
Intersegment eliminations | Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | 0 | 0 | 0 | |
Non-interest income: | ||||
Derivative forward value gains (losses) | 0 | 0 | 0 | |
CFC | Operating segments | ||||
Statement of operations: | ||||
Interest income | 1,133,173 | 1,108,543 | 1,143,397 | |
Interest expense | (705,534) | (702,063) | (820,841) | |
Derivative cash settlements interest expense | (99,768) | (113,951) | (54,707) | |
Interest expense | (805,302) | (816,014) | (875,548) | |
Net interest income | 327,871 | 292,529 | 267,849 | |
Benefit (provision) for credit losses | 17,972 | (28,507) | (35,590) | |
Net interest income after benefit (provision) for credit losses | 345,843 | 264,022 | 232,259 | |
Non-interest income: | ||||
Fee and other income | 22,426 | 23,732 | 28,309 | |
Derivative gains (losses) | 0 | 0 | 0 | |
Investment securities losses | (30,179) | 1,495 | 9,431 | |
Total non-interest income | (7,753) | 25,227 | 37,740 | |
Non-interest expense: | ||||
General and administrative expenses | (93,465) | (93,085) | (98,808) | |
Losses on early extinguishment of debt | (754) | (1,456) | (69) | |
Other non-interest expense | (1,552) | (1,619) | (25,588) | |
Total non-interest expense | (95,771) | (96,160) | (124,465) | |
Income (loss) before income taxes | 242,319 | 193,089 | 145,534 | |
Income tax benefit (provision) | 0 | 0 | 0 | |
Net income (loss) | 242,319 | 193,089 | 145,534 | |
Assets: | ||||
Total loan outstanding | 30,031,459 | 28,395,040 | ||
Deferred loan origination costs | 12,032 | 11,854 | ||
Loans to members | 30,043,491 | 28,406,894 | ||
Less: Allowance for credit losses | (67,560) | (85,532) | ||
Loans to members, net | 29,975,931 | 28,321,362 | ||
Other assets | 1,245,884 | 1,285,591 | ||
Total assets | 31,221,815 | 29,606,953 | ||
CFC | Operating segments | Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | 0 | 0 | 0 | |
Non-interest income: | ||||
Derivative forward value gains (losses) | 0 | 0 | 0 | |
NCSC and RTFC | Operating segments | ||||
Statement of operations: | ||||
Interest income | 43,295 | 43,632 | 47,107 | |
Interest expense | (35,225) | (35,574) | (39,466) | |
Derivative cash settlements interest expense | (1,617) | (1,694) | (1,166) | |
Interest expense | (36,842) | (37,268) | (40,632) | |
Net interest income | 6,453 | 6,364 | 6,475 | |
Benefit (provision) for credit losses | 3,334 | (3,163) | (1,272) | |
Net interest income after benefit (provision) for credit losses | 9,787 | 3,201 | 5,203 | |
Non-interest income: | ||||
Fee and other income | 70 | 5,963 | 10,796 | |
Derivative gains (losses) | 0 | 0 | 0 | |
Investment securities losses | 0 | 0 | 0 | |
Total non-interest income | 70 | 5,963 | 10,796 | |
Non-interest expense: | ||||
General and administrative expenses | (8,102) | (7,849) | (8,940) | |
Losses on early extinguishment of debt | 0 | 0 | (614) | |
Other non-interest expense | (2,256) | (1,374) | (8,291) | |
Total non-interest expense | (10,358) | (9,223) | (17,845) | |
Income (loss) before income taxes | (501) | (59) | (1,846) | |
Income tax benefit (provision) | (1,148) | (998) | 1,160 | |
Net income (loss) | (1,649) | (1,057) | (686) | |
Assets: | ||||
Total loan outstanding | 1,178,479 | 1,127,251 | ||
Deferred loan origination costs | 0 | 0 | ||
Loans to members | 1,178,479 | 1,127,251 | ||
Less: Allowance for credit losses | (2,735) | (6,069) | ||
Loans to members, net | 1,175,744 | 1,121,182 | ||
Other assets | 97,394 | 106,367 | ||
Total assets | 1,273,138 | 1,227,549 | ||
NCSC and RTFC | Operating segments | Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | 0 | 0 | 0 | |
Non-interest income: | ||||
Derivative forward value gains (losses) | $ 0 | $ 0 | $ 0 |