Cover Page
Cover Page | 3 Months Ended |
Aug. 31, 2022 shares | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Aug. 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 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 0 |
Entity Central Index Key | 0000070502 |
Current Fiscal Year End Date | --05-31 |
Document Fiscal Period Focus | Q1 |
Document Fiscal Year Focus | 2023 |
Amendment Flag | false |
7.35% Collateral Trust Bonds, due 2026 | |
Title of 12(b) Security | 7.35% Collateral Trust Bonds, due 2026 |
Trading Symbol | NRUC 26 |
Security Exchange Name | NYSE |
5.50% Subordinated Notes, due 2064 | |
Title of 12(b) Security | 5.50% Subordinated Notes, due 2064 |
Trading Symbol | NRUC |
Security Exchange Name | NYSE |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Income Statement [Abstract] | ||
Interest income | $ 306,978 | $ 283,268 |
Interest expense | (209,468) | (174,777) |
Net interest income | 97,510 | 108,491 |
Provision for credit losses | (3,496) | (4,003) |
Net interest income after provision for credit losses | 94,014 | 104,488 |
Non-interest income: | ||
Fee and other income | 4,056 | 3,941 |
Derivative gains (losses) | 93,587 | (172,163) |
Investment securities losses | (3,679) | (2,225) |
Total non-interest income | 93,964 | (170,447) |
Non-interest expense: | ||
Salaries and employee benefits | (13,778) | (13,310) |
Other general and administrative expenses | (11,741) | (10,900) |
Other non-interest expense | (322) | (256) |
Total non-interest expense | (25,841) | (24,466) |
Income (loss) before income taxes | 162,137 | (90,425) |
Income tax benefit (provision) | (263) | 93 |
Net income (loss) | 161,874 | (90,332) |
Less: Net (income) loss attributable to noncontrolling interests | (193) | 438 |
Net income (loss) attributable to CFC | $ 161,681 | $ (89,894) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 161,874 | $ (90,332) |
Other comprehensive income (loss): | ||
Changes in unrealized gains on derivative cash flow hedges | 0 | 416 |
Reclassification to earnings of realized gains on derivatives | (189) | (97) |
Defined benefit plan adjustments | 100 | 71 |
Other comprehensive income (loss) | (89) | 390 |
Total comprehensive income (loss) | 161,785 | (89,942) |
Less: Total comprehensive (income) loss attributable to noncontrolling interests | (193) | 438 |
Total comprehensive income (loss) attributable to CFC | $ 161,592 | $ (89,504) |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Assets: | ||
Cash and cash equivalents | $ 232,084 | $ 153,551 |
Restricted cash | 8,468 | 7,563 |
Total cash, cash equivalents and restricted cash | 240,552 | 161,114 |
Investment securities: | ||
Debt securities trading, at fair value | 561,972 | 566,146 |
Equity securities, at fair value | 36,359 | 33,758 |
Total investment securities, at fair value | 598,331 | 599,904 |
Loans to members | 30,687,331 | 30,063,386 |
Less: Allowance for credit losses | (71,056) | (67,560) |
Loans to members, net | 30,616,275 | 29,995,826 |
Accrued interest receivable | 131,756 | 111,418 |
Other receivables | 33,742 | 35,431 |
Fixed assets, net | 105,849 | 101,762 |
Derivative assets | 328,285 | 222,042 |
Other assets | 27,504 | 23,885 |
Total assets | 32,082,294 | 31,251,382 |
Liabilities: | ||
Accrued interest payable | 198,922 | 131,950 |
Debt outstanding: | ||
Short-term borrowings | 5,270,826 | 4,981,167 |
Long-term debt | 21,867,456 | 21,545,440 |
Subordinated deferrable debt | 986,571 | 986,518 |
Members’ subordinated certificates: | ||
Membership subordinated certificates | 628,603 | 628,603 |
Loan and guarantee subordinated certificates | 364,425 | 365,388 |
Member capital securities | 243,500 | 240,170 |
Total members’ subordinated certificates | 1,236,528 | 1,234,161 |
Total debt outstanding | 29,361,381 | 28,747,286 |
Patronage capital retirement payable | 56,484 | 0 |
Deferred income | 43,098 | 44,332 |
Derivative liabilities | 130,242 | 128,282 |
Other liabilities | 45,232 | 57,563 |
Total liabilities | 29,835,359 | 29,109,413 |
CFC equity: | ||
Retained equity | 2,214,769 | 2,112,315 |
Accumulated other comprehensive income (loss) | 2,169 | 2,258 |
Total CFC equity | 2,216,938 | 2,114,573 |
Noncontrolling interests | 29,997 | 27,396 |
Total equity | 2,246,935 | 2,141,969 |
Total liabilities and equity | $ 32,082,294 | $ 31,251,382 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Membership Fees and Educational Fund | Patronage Capital Allocated | Members’ Capital Reserve | Unallocated Net Income (Loss) | CFC Retained Equity | Accumulated Other Comprehensive Income (Loss) | Total CFC Equity | Non-controlling Interests |
Beginning 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) | (90,332) | (89,894) | (89,894) | (89,894) | (438) | ||||
Other comprehensive loss | 390 | 390 | 390 | ||||||
Patronage capital retirement | (57,565) | (57,565) | (57,565) | (57,565) | 0 | ||||
Other | 1,848 | (369) | (369) | (369) | 2,217 | ||||
Ending balance at Aug. 31, 2021 | 1,254,220 | 2,756 | 866,405 | 909,749 | (551,765) | 1,227,145 | 365 | 1,227,510 | 26,710 |
Beginning 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 |
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 161,874 | 161,681 | 161,681 | 161,681 | 193 | ||||
Other comprehensive loss | (89) | (89) | (89) | ||||||
Patronage capital retirement | (58,892) | (58,892) | (58,892) | (58,892) | 0 | ||||
Other | 2,073 | (335) | (335) | (335) | 2,408 | ||||
Ending balance at Aug. 31, 2022 | $ 2,246,935 | $ 3,052 | $ 896,096 | $ 1,062,286 | $ 253,335 | $ 2,214,769 | $ 2,169 | $ 2,216,938 | $ 29,997 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 161,874 | $ (90,332) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred loan fees | (1,974) | (2,155) |
Amortization of debt issuance costs and discounts | 7,123 | 6,739 |
Amortization of guarantee fee | 4,653 | 4,828 |
Depreciation and amortization | 1,311 | 2,018 |
Provision for credit losses | 3,496 | 4,003 |
Unrealized losses on equity and debt securities | 2,446 | 2,332 |
Derivative forward value (gains) losses | (104,372) | 144,600 |
Advances on loans held for sale | (69,000) | 0 |
Proceeds from sales of loans held for sale | 112,800 | 0 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | (20,338) | 1,635 |
Accrued interest payable | 66,972 | 47,870 |
Deferred income | 740 | (268) |
Other | (20,216) | 1,046 |
Net cash provided by operating activities | 145,515 | 122,316 |
Cash flows from investing activities: | ||
Advances on loans held for investments, net | (667,442) | (455,651) |
Investments in fixed assets, net | (4,532) | (4,136) |
Purchase of trading securities | (48,276) | (28,006) |
Proceeds from sales and maturities of trading securities | 46,170 | 31,773 |
Net cash used in investing activities | (674,080) | (456,020) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings ≤ 90 days, net | 310,868 | 849,729 |
Proceeds from short-term borrowings with original maturity > 90 days | 654,762 | 704,829 |
Repayments of short-term borrowings with original maturity > 90 days | (675,971) | (758,237) |
Payments for issuance costs for revolving bank lines of credit | 0 | (3,563) |
Proceeds from issuance of long-term debt, net of discount and issuance costs | 724,300 | 44,229 |
Payments for retirement of long-term debt | (408,323) | (493,929) |
Proceeds from issuance of members’ subordinated certificates | 3,330 | 33 |
Payments for retirement of members’ subordinated certificates | (963) | (787) |
Net cash provided by financing activities | 608,003 | 342,304 |
Net increase in cash, cash equivalents and restricted cash | 79,438 | 8,600 |
Beginning cash, cash equivalents and restricted cash | 161,114 | 303,361 |
Ending cash, cash equivalents and restricted cash | 240,552 | 311,961 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 139,482 | 118,281 |
Cash paid for income taxes | $ 2 | $ 2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Aug. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company National Rural Utilities Cooperative Finance Corporation (“CFC”) is a 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. Basis of Presentation and Use of Estimates The accompanying unaudited interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP.”) These 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. National Cooperative Services Corporation (“NCSC”) and Rural Telephone Finance Cooperative (“RTFC”) are VIEs that are required to be consolidated by CFC. NCSC is a taxable member-owned cooperative that may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural,” and for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. RTFC is a taxable Subchapter T cooperative association that provides financing for its rural telecommunications members and their affiliates. CFC has not had entities that held foreclosed assets since fiscal year 2017. All intercompany balances and transactions have been eliminated. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and rel ated 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. In the opinion of management, these unaudited interim financial statements reflect all adjustments of a normal, recurring nature that are necessary for the fair statement of results for the periods presented. The results in the interim financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended August 31, 2022 (“this Report”) are not necessarily indicative of results that may be expected for the full fiscal year, and the unaudited interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in CFC’s Annual Report on Form 10-K for the fiscal year ended May 31, 2022 (“2022 Form 10-K.”) Certain reclassifications and updates may 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 periods’ net income (loss) or equity. New Accounting Standards Financial Instruments-Credit Losses, Troubled Debt Restructurings (“TDRs”) 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 current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings 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 year 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. 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 . Upon issuance, we elected to apply certain of the optional expedients for contract modifications to our financial instruments impacted by the LIBOR discontinuance. We expect to continue to elect various optional expedients for contract modifications to our financial instruments affected by the reference rate reform through the effective date of this guidance. The application of this guidance did not have a material impact on our consolidated financial statements. |
Interest Income and Interest Ex
Interest Income and Interest Expense | 3 Months Ended |
Aug. 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 the three months ended August 31, 2022 and 2021. Table 2.1: Interest Income and Interest Expense Three Months Ended August 31, (Dollars in thousands) 2022 2021 Interest income: Loans (1) $ 302,680 $ 278,819 Investment securities 4,298 4,449 Total interest income 306,978 283,268 Interest expense: (2)(3) Short-term borrowings 24,209 3,393 Long-term debt 158,881 144,873 Subordinated debt 26,378 26,511 Total interest expense 209,468 174,777 Net interest income $ 97,510 $ 108,491 ____________________________ (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 $43 million and $44 million as of August 31, 2022 and May 31, 2022, respectively, consists primarily of deferred loan conversion fees that totaled $36 million and $37 million as of each respective date. |
Investment Securities
Investment Securities | 3 Months Ended |
Aug. 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. Debt Securities The following table presents the composition of our investment debt securities portfolio and the fair value as of August 31, 2022 and May 31, 2022. Table 3.1: Investments in Debt Securities, at Fair Value (Dollars in thousands) August 31, 2022 May 31, 2022 Debt securities, at fair value: Commercial paper $ 3,000 $ 9,985 Corporate debt securities 478,966 487,172 Commercial agency mortgage-backed securities (“MBS”) (1) 7,572 7,815 U.S. state and municipality debt securities 29,696 27,778 Foreign government debt securities 959 967 Other asset-backed securities (2) 41,779 32,429 Total debt securities trading, at fair value $ 561,972 $ 566,146 ____________________________ (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 $5 million and $3 million for the three months ended August 31, 2022 and 2021, respectively. We did not sell any debt securities during the three months ended August 31, 2022; therefore, no realized gains or losses were recorded during this period for sale of securities. W e sold $2 million of debt securities at fair value during the three months ended August 31, 2021 and recorded realized gains related to the sale of these securities of less than $1 million during three months ended August 31, 2021. Equity Securities The following table presents the composition of our equity security holdings and the fair value as of August 31, 2022 and May 31, 2022. Table 3.2: Investments in Equity Securities, at Fair Value (Dollars in thousands) August 31, 2022 May 31, 2022 Equity securities, at fair value: Farmer Mac—Series C non-cumulative preferred stock $ 28,000 $ 25,520 Farmer Mac—Class A common stock 8,359 8,238 Total equity securities, at fair value $ 36,359 $ 33,758 We recognized net unrealized gains on our equity securities of $3 million and $1 million for the three months ended August 31, 2022 and 2021, respectively. |
Loans
Loans | 3 Months Ended |
Aug. 31, 2022 | |
Receivables [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. Loans to Members Loans to members consist of loans held for investment and loans held for sale. The outstand ing 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 August 31, 2022 and May 31, 2022. Table 4.1: Loans to Members by Member Class and Loan Type August 31, 2022 May 31, 2022 (Dollars in thousands) Amount % of Total Amount % of Total Member class: CFC: Distribution $ 24,244,193 79% $ 23,844,242 79% Power supply 5,101,682 17 4,901,770 17 Statewide and associate 131,617 — 126,863 — Total CFC 29,477,492 96 28,872,875 96 NCSC 727,869 2 710,878 2 RTFC 469,635 2 467,601 2 Total loans outstanding (1) 30,674,996 100 30,051,354 100 Deferred loan origination costs—CFC (2) 12,335 — 12,032 — Loans to members $ 30,687,331 100% $ 30,063,386 100% Loan type: Long-term loans: Fixed rate $ 27,391,075 89% $ 26,952,372 90% Variable rate 761,370 3 820,201 2 Total long-term loans 28,152,445 92 27,772,573 92 Lines of credit 2,522,551 8 2,278,781 8 Total loans outstanding (1) 30,674,996 100 30,051,354 100 Deferred loan origination costs—CFC (2) 12,335 — 12,032 — Loans to members $ 30,687,331 100% $ 30,063,386 100% ____________________________ (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. We sold CFC and NCSC loans, at par for cash, totaling $113 million during the three months ended August 31, 2022. We recorded immaterial losses on the sale of these loa ns attributable to the unamortized deferred loan origination costs associated with the transferred loans . We did not sell any loans during the three months ended August 31, 2021. We had no loans held for sale as of August 31, 2022. We had loans held for sale totaling $44 million as of May 31, 2022, which were sold at par for cash during the three months ended August 31, 2022. Accrued Interest Receivable We report 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 $105 million and $94 million as of August 31, 2022 and May 31, 2022, respectively. We also elected to exclude accrued interest receivable from the credit quality disclosures required under CECL. 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 $30,205 million and $29,584 million as of August 31, 2022 and May 31, 2022, respectively, accounted for 98% of total loans outstanding as of each re spective date. The remaining loans outstanding in our portfolio were to RTFC members, affiliates and associates in the telecommunications industry. Our credit exposure is partially mitigated by long-term loans guaranteed by RUS, which totaled $129 million and $131 million as of August 31, 2022 and May 31, 2022, respectively. Single-Obligor Concentration The outstanding loan exposure for o ur 20 largest borrowers totaled $6,356 million and $6,220 million as of August 31, 2022 and May 31, 2022, respectively, representing 21% of total loans outstanding as of each respective date. Our 20 largest borrowers consisted of 12 distribution systems and eight power supp ly systems as of both August 31, 2022 and May 31, 2022. The largest total outstanding exposure to a single borrower or controlled group represented less tha n 2% of total loans outstanding as of both August 31, 2022 and May 31, 2022. As part of our strategy in managing credit exposure to large borrowers, we entered into a long-term standby purchase commitment agreement with Farmer Mac during fiscal year 2016. Under this agreement, we may designate certain long-term loans to be covered under the commitment, subject to approval by Farmer Mac, and in the event any such loan later goes into payment default for at least 90 days, upon request by us, Farmer Mac must purchase such loan at par value. We are required to pay Farmer Mac a monthly fee based on the unpaid principal balance of loans covered under the purchase commitment. The aggregate unpaid principal balance of designated and Farmer Mac approved loans was $462 million and $493 million as of August 31, 2022 and May 31, 2022, respectively. Loan exposure to our 20 largest borrowers covered under the Fa rmer Mac agreement totaled $241 million and $316 million as of August 31, 2022 and May 31, 2022, respectively, which reduced our exposure to the 20 largest borrowers to 20% as of each respective date. We have had no loan defaults for loans covered under this agreement; therefore, no loa ns have been put to Farmer Mac for purchase pursuant to the standby purchase agreement as of August 31, 2022. Our credit exposure is also mitigated by long-term loans guaranteed by RUS. 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 881 and 883 a s of August 31, 2022 and May 31, 2022, respectively, located in 49 states and the District of Columbia. Of the 881 and 883 borrowers with loans outstanding as of August 31, 2022 and May 31, 2022, respectively, 49 were electric power supply borrowers as of each respective date. Electric power supply borrowers generally require significantly more capital than electric distribution and telecommunications borrowers. Texas, which had 70 and 68 and borrowers with loans outstanding as of August 31, 2022 and May 31, 2022, respectively, accounted for the largest number of borrowers with loans outstanding in any one state as of each respective date, as well as the largest concentration of loan exposure in any one state. Loans outstanding to Texas-based electric utility organizations totaled $5,207 million and $5,104 million as of August 31, 2022 and May 31, 2022, respectively, and accounted for approximate ly 17% of total loans outstanding as of each respective date. Of the loans outstanding to Texas-based electric utility organizations, $161 million and $163 million as of August 31, 2022 and May 31, 2022, respectively, were covered by the Farmer Mac standby repurchase agreement, respectively, which reduced our credit risk exposure to Texas-based borrowers to 16% of total loans outstanding as of each respective date. Of the 49 electric power supply borrowers with loans outstanding as of August 31, 2022, eight were located in Texas. 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 August 31, 2022 and May 31, 2022. Table 4.2: Payment Status of Loans Outstanding August 31, 2022 (Dollars in thousands) Current 30-89 Days Past Due > 90 Days Total Total Loans Outstanding Nonaccrual Loans Member class: CFC: Distribution $ 24,244,193 $ — $ — $ — $ 24,244,193 $ — Power supply 4,987,693 51 113,938 113,989 5,101,682 217,810 Statewide and associate 131,617 — — — 131,617 — CFC total 29,363,503 51 113,938 113,989 29,477,492 217,810 NCSC 727,869 — — — 727,869 — RTFC 469,635 — — — 469,635 — Total loans outstanding $ 30,561,007 $ 51 $ 113,938 $ 113,989 $ 30,674,996 $ 217,810 Percentage of total loans 99.63% — % 0.37% 0.37% 100.00% 0.71% 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% 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 both August 31, 2022 and May 31, 2022. The decrease in loans on nonaccrual status of $10 million to $218 million as of August 31, 2022, from $228 million as of May 31, 2022 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 August 31, 2022 and May 31, 2022. Table 4.3: Trouble Debt Restructurings August 31, 2022 May 31, 2022 (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 $ 4,638 0.02% 1 $ 5,092 0.02% RTFC 1 3,966 0.01 1 4,092 0.01 Total TDR loans 2 $ 8,604 0.03% 2 $ 9,184 0.03% Performance status of TDR loans: Performing TDR loans 2 $ 8,604 0.03% 2 $ 9,184 0.03% Total TDR loans 2 $ 8,604 0.03% 2 $ 9,184 0.03% ____________________________ (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 August 31, 2022 and May 31, 2022. 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 August 31, 2022 or May 31, 2022. We did not have any TDR loans classified as nonperforming as of August 31, 2022 or May 31, 2022. 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 August 31, 2022 and May 31, 2022. Loans classified as nonperforming are placed on nonaccrual status. Table 4.4: Nonperforming Loans August 31, 2022 May 31, 2022 (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 3 $ 217,810 0.71% 3 $ 227,790 0.76% Total nonperforming loans 3 $ 217,810 0.71% 3 $ 227,790 0.76% ____________________________ (1) Represents the unpaid principal balance net of charge-offs and recoveries as of the end of each period. We had loans to the same three CFC electric power supply borrowers totaling $218 million and $228 million classified as nonperforming as of August 31, 2022 and May 31, 2022, respectively. Nonperforming loans represented 0.71% and 0.76% of total loans outstanding as of August 31, 2022 and May 31, 2022, respectively. The reduction in nonperforming loans of $10 million during the three months ended August 31, 2022 was due to payments received on one of the nonperforming loans. Loans outstanding to Brazos, a CFC Texas-based electric power supply borrower, which filed for bankruptcy in March 2021 due to its exposure to elevated wholesale electric power costs during the February 2021 polar vortex, accounted for $86 million of our total nonperforming loans as of both August 31, 2022 and May 31, 2022, of which $65 million was unsecured and $21 million was secured as of each respective date. The secured amount is based on set-off rights under Brazos’ revolving credit agreement with respect to funds held by lenders and was approved by the bankruptcy court. On September 1, 2022, Brazos filed its plan of reorganization with the bankruptcy court. The reorganization plan confirmation hearings are scheduled to begin on November 14, 2022. The loan outstanding to Brazos Sandy Creek, a wholly-owned subsidiary of Brazos and a CFC Texas-based electric power supply borrower, which filed for bankruptcy in March 2022 following the filing of a motion by Brazos to reject its power purchase agreement with Brazos Sandy Creek as part of Brazos’ bankruptcy proceedings, accounted for $28 million of our total nonperforming loans as of both August 31, 2022 and May 31, 2022. The loan is secured by Brazos Sandy Creek’s 25% tenant-in-common (“TIC”) ownership interest in the Brazos Sandy Creek Energy Station (“the Plant”), and its rights under a power purchase agreement (“PPA”) with Brazos for the output of the Brazos Sandy Creek Energy Station attributable to the TIC interest. Brazos’ rejection of the PPA in its bankruptcy case gave rise to an unsecured claim for rejection damages against Brazos. On September 14, 2022, the bankruptcy court approved a settlement of the rejection damages claim which was agreed to by Brazos Sandy Creek’s Chapter 7 Trustee, the Collateral Trustee for the noteholders and Brazos. These settlement terms are contingent upon the bankruptcy’s court approval of Brazos’ reorganization plan. The Chapter 7 Trustee, which was appointed and approved by the bankruptcy court to operate Brazos Sandy Creek as a going concern, is conducting a sale process for Brazos Sandy Creek’s 25% TIC ownership interest in the Plant. Brazos and Brazos Sandy Creek have not made any loan payments since their respective bankruptcy filings, and these loans were delinquent and on nonaccrual as of each respective date. Brazos is not permitted to make scheduled loan payments without approval of the bankruptcy court. We believe our exposure to the significant adverse financial impact on some electric utilities from the surge in wholesale power costs in Texas during the February 2021 polar vortex is now limited to loans outstanding to Brazos and its wholly-owned subsidiary Brazos Sandy Creek. 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 and has stated that it expects the proceeds of such a securitization to fund a portion of their plan of reorganization. Net Charge-Of fs We had no loan charge-offs during the three months ended August 31, 2022, nor during the same prior-year period. 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 included in the categories of special mention, substandard or doubtful. • 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 August 31, 2022 and May 31, 2022. 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 August 31, 2022, by fiscal year of origination for each year during the five-year annual reporting period beginning in fiscal year 2019 , and in the aggregate for periods prior to fiscal year 2019 . 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 indicate d in Table 4.5 below, term loan advances made to borrowers prior to fiscal year 2019 totaled $17,999 million, representing 59% of our total loans outstanding of $30,675 million as of August 31, 2022. The average remaining maturity of our long-term loans, which accounted for 92% of total loans outstanding as of August 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-year draw period under which a borrower may draw funds prior to the expiration of the commitment. Because our electric utility cooperative borrowers must make substantial annual capital investments to maintain operations and ensure delivery of the essential service provided by electric utilities, they require a continuous inflow of funds to finance infrastructure upgrades and new asset purchases. Due to the funding needs of electric utility cooperatives, a CFC borrower generally has multiple loans outstanding under advances drawn in different years. While the number of borrowers with loans outstanding was 881 borrowers as of August 31, 2022, the number of loans outstanding was 16,623 as of August 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 August 31, 2022 Term Loans by Fiscal Year of Origination (Dollars in thousands) YTD Q1 2023 2022 2021 2020 2019 Prior Revolving Loans Total May 31, 2022 Pass CFC: Distribution $ 599,475 $ 2,472,643 $ 1,684,739 $ 1,868,407 $ 1,184,184 $ 14,533,691 $ 1,645,051 $ 23,988,190 $ 23,596,004 Power supply 185,300 366,847 557,006 186,210 398,612 2,814,019 375,878 4,883,872 4,673,980 Statewide and associate 6,300 33,848 2,189 17,374 3,179 19,176 35,704 117,770 112,610 CFC total 791,075 2,873,338 2,243,934 2,071,991 1,585,975 17,366,886 2,056,633 28,989,832 28,382,594 NCSC 3,875 48,958 38,989 229,706 3,987 270,736 131,618 727,869 710,878 RTFC 19,925 90,152 83,515 43,696 9,619 203,254 15,508 465,669 463,509 Total pass $ 814,875 $ 3,012,448 $ 2,366,438 $ 2,345,393 $ 1,599,581 $ 17,840,876 $ 2,203,759 $ 30,183,370 $ 29,556,981 Special mention CFC: Distribution $ — $ — $ 4,861 $ — $ 5,078 $ 12,872 $ 233,192 $ 256,003 $ 248,238 Statewide and associate — — — — 4,965 8,882 — 13,847 14,253 CFC total — — 4,861 — 10,043 21,754 233,192 269,850 262,491 RTFC — — — — — 3,966 — 3,966 4,092 Total special mention $ — $ — $ 4,861 $ — $ 10,043 $ 25,720 $ 233,192 $ 273,816 $ 266,583 Substandard Total substandard $ — $ — $ — $ — $ — $ — $ — $ — $ — Doubtful CFC: Power supply $ — $ — $ — $ — $ — $ 132,210 $ 85,600 $ 217,810 $ 227,790 Total doubtful $ — $ — $ — $ — $ — $ 132,210 $ 85,600 $ 217,810 $ 227,790 Total criticized loans $ — $ — $ 4,861 $ — $ 10,043 $ 157,930 $ 318,792 $ 491,626 $ 494,373 Total loans outstanding $ 814,875 $ 3,012,448 $ 2,371,299 $ 2,345,393 $ 1,609,624 $ 17,998,806 $ 2,522,551 $ 30,674,996 $ 30,051,354 Criticized loans totaled $492 million and $494 million as of August 31, 2022 and May 31, 2022, respectively, and represented approximately 2% of total loans outstanding as of each respective date. Each of the borrowers with loans outstanding in the criticized category, with the exception of Brazos and Brazos Sandy Creek, was current with regard to all principal and interest amounts due to us as of both August 31, 2022 and May 31, 2022. See “Nonperforming Loans” above for additional information on Brazos and Brazos Sandy Creek. Special Mention One CFC electric distribution borrower with loans outstan ding of $256 million a nd $248 million as of August 31, 2022 and May 31, 2022, respectively, accounted for the substantial majority of loans in the special mention loan category amount of $274 million and $267 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 that 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 substandard as of August 31, 2022 or May 31, 2022. Doubtful Loans outstanding classified as doubtful totaled $218 million and $228 million as of August 31, 2022 and May 31, 2022, respectively, consisting of loans outstanding to Brazos and Brazos Sandy Creek totaling $114 million as of each respective date and loans outstanding to a CFC electric power supply borrower of $104 million and $114 million as of each respective date. These loans were also classified as nonperforming, as discussed above under “Nonperforming Loans.” 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 August 31, 2022 and May 31, 2022. Table 4.6: Unadvanced Commitments by Member Class and Loan Type (Dollars in thousands) August 31, 2022 May 31, 2022 Member class: CFC: Distribution $ 9,337,695 $ 9,230,197 Power supply 3,825,651 3,835,535 Statewide and associate 181,424 183,845 Total CFC 13,344,770 13,249,577 NCSC 537,888 551,901 RTFC 291,419 309,724 Total unadvanced commitments $ 14,174,077 $ 14,111,202 Loan type: (1) Long-term loans: Fixed rate $ — $ — Variable rate 5,402,527 5,357,205 Total long-term loans 5,402,527 5,357,205 Lines of credit 8,771,550 8,753,997 Total unadvanced commitments $ 14,174,077 $ 14,111,202 ____________________________ (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 August 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 $ 8,771,550 $ 564,791 $ 4,406,240 $ 1,325,331 $ 628,055 $ 1,395,791 $ 451,342 Long-term loans 5,402,527 498,859 1,330,821 733,384 989,229 1,530,490 319,744 Total $ 14,174,077 $ 1,063,650 $ 5,737,061 $ 2,058,715 $ 1,617,284 $ 2,926,281 $ 771,086 Unadvanced line of credit commitments accounted for 62% of total unadvanced loan commitments as of August 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 exceed five years and 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 $5,403 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 $14,174 million as of August 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 $10,969 million and $10,908 million as of August 31, 2022 and May 31, 2022, respectively. Prior to making an advance on these facilities, we confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with loan terms and conditions. In some cases, the borrower’s access to the full amount of the facility is further constrained by the designated purpose, imposition of borrower-specific restrictions or by additional conditions that must be met prior to advancing funds. Unadvanced Loan Commitments—Unconditional Unadvanced loan commitments not subject to material adverse change clauses at the time of each advance consisted of unadvanced committed lines of credit t otaling $3,205 million and $3,203 million as of August 31, 2022 and May 31, 2022, respectively. As such, we are required to advance amounts on these committed facilities as long as the borrower is in compliance with the terms and conditions of the facility. The following table summarizes the available balance under unconditional committed lines of credit as of August 31, 2022, and the related maturity amounts in each fiscal year during the five-year period ending May 31, 2027, and thereafter. 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 Thereafter Committed lines of credit $ 3,204,749 $ 188,785 $ 374,962 $ 858,039 $ 457,449 $ 1,011,576 $ 313,938 Pledged Collateral—Loans We are required to pledge eligible mortgage notes or other collateral in an amount at least equal to the outstanding balance of our secured debt. Table 4.9 displays the borrowing amount under each of our secured borrowing agreements and the corresponding loans outstanding pledged as collateral as of August 31, 2022 and May 31, 2022. 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 (Dollars in thousands) August 31, 2022 May 31, 2022 Collateral trust bonds: 2007 indenture: Collat |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Aug. 31, 2022 | |
Credit Loss [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. 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. 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 for the three months ended August 31, 2022 and 2021. Table 5.1: Changes in Allowance for Credit Losses Three Months Ended August 31, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of May 31, 2022 $ 15,781 $ 47,793 $ 1,251 $ 64,825 $ 1,449 $ 1,286 $ 67,560 Provision for credit losses 631 2,550 68 3,249 116 131 3,496 Balance as of August 31, 2022 $ 16,412 $ 50,343 $ 1,319 $ 68,074 $ 1,565 $ 1,417 $ 71,056 Three Months Ended August 31, 2021 (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 for credit losses 1,943 1,823 31 3,797 81 125 4,003 Balance as of August 31, 2021 $ 15,369 $ 66,469 $ 1,422 $ 83,260 $ 1,455 $ 4,820 $ 89,535 The following tables present, by legal entity and member class, the components of our allowance for credit losses as of August 31, 2022 and May 31, 2022. Table 5.2: Allowance for Credit Losses Components August 31, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 16,412 $ 9,741 $ 1,319 $ 27,472 $ 1,565 $ 1,042 $ 30,079 Asset-specific allowance — 40,602 — 40,602 — 375 40,977 Total allowance for credit losses $ 16,412 $ 50,343 $ 1,319 $ 68,074 $ 1,565 $ 1,417 $ 71,056 Loans outstanding: (1) Collectively evaluated loans $ 24,239,555 $ 4,883,872 $ 131,617 $ 29,255,044 $ 727,869 $ 465,669 $ 30,448,582 Individually evaluated loans 4,638 217,810 — 222,448 — 3,966 226,414 Total loans outstanding $ 24,244,193 $ 5,101,682 $ 131,617 $ 29,477,492 $ 727,869 $ 469,635 $ 30,674,996 Allowance coverage ratios: Collective allowance coverage ratio (2) 0.07% 0.20% 1.00% 0.09% 0.22% 0.22% 0.10% Asset-specific allowance coverage ratio (3) — 18.64 — 18.25 — 9.46 18.10 Total allowance coverage ratio (4) 0.07 0.99 1.00 0.23 0.22 0.30 0.23 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 — 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 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 coverage 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 ____________________________ (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 August 31, 2022 and May 31, 2022. (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. Our allowance for credit losses and allowance coverage ratio increased slightly to $71 million and 0.23%, respectively, as of August 31, 2022, from $68 million and 0.22%, respectively, as of May 31, 2022. The $3 million increase in the allowance for credit losses reflected an increase in the collective and the asset-specific allowance of $1 million and $2 million, respectively. The collective allowance increase of $1 million was primarily due to an increase in total loans outstanding. The asset-specific allowance increase of $2 million stemmed from the combined impact of an increase in the asset-specific allowance for Brazos Sandy Creek as a result of the terms of a settlement of Brazos Sandy Creek’s rejection damages claim against Brazos approved by the bankruptcy court, partially offset by a reduction in the asset-specific allowance for Brazos attributable to its reorganization plan filed with the bankruptcy court and a decrease in the asset-specific allowance for a nonperforming CFC power supply borrower, attributable to loan payments received on this loan. Reserve for Credit Losses—Unadvanced Loan Commitments In addition to the allowance for credit losses for our loan portfolio, we maintain an allowance for credit losses for unadvanced loan commitments, which we refer to as our reserve for credit losses because this amount is reported as a component of other liabilities on our consolidated balance sheets. We measure 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 August 31, 2022 and May 31, 2022. |
Short-Term Borrowings
Short-Term Borrowings | 3 Months Ended |
Aug. 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 $5,271 million and accounted for 18% of total debt outstanding as of August 31, 2022, compared with $4,981 million and 17% of total debt outstanding as of May 31, 2022. The following table provides comparative information on our short-term borrowings as of August 31, 2022 and May 31, 2022. Table 6.1: Short-Term Borrowings Sources August 31, 2022 May 31, 2022 (Dollars in thousands) Amount % of Total Debt Outstanding Amount % of Total Debt Outstanding Short-term borrowings: Commercial paper: Commercial paper dealers, net of discounts $ 1,278,986 4% $ 1,024,813 4% Commercial paper members, at par 1,388,041 5 1,358,069 5 Total commercial paper 2,667,027 9 2,382,882 9 Select notes to members 1,712,778 6 1,753,441 6 Daily liquidity fund notes to members 481,078 2 427,790 1 Medium-term notes to members 409,943 1 417,054 1 Total short-term borrowings $ 5,270,826 18% $ 4,981,167 17% 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 August 31, 2022. Table 6.2: Committed Bank Revolving Line of Credit Agreements Available Amounts August 31, 2022 (Dollars in millions) Total Commitment Letters of Credit Outstanding Available Amount Maturity Annual Facility Fee (1) Bank revolving agreements: 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. The total commitment amount under the three five |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Aug. 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 as of August 31, 2022 and May 31, 2022. Long-term debt outstanding totaled $21,867 million and accounted for 74% of total debt outstanding as of August 31, 2022, compared with $21,545 million and 75% of total debt outstanding as of May 31, 2022. Table 7.1: Long-Term Debt by Debt Product Type (Dollars in thousands) August 31, 2022 May 31, 2022 Secured long-term debt: Collateral trust bonds $ 7,497,711 $ 7,097,711 Unamortized discount (214,813) (216,608) Debt issuance costs (34,472) (32,613) Total collateral trust bonds 7,248,426 6,848,490 Guaranteed Underwriter Program notes payable 6,161,811 6,105,473 Farmer Mac notes payable 3,021,131 3,094,679 Other secured notes payable 2,755 2,755 Debt issuance costs (7) (9) Total other secured notes payable 2,748 2,746 Total secured notes payable 9,185,690 9,202,898 Total secured long-term debt 16,434,116 16,051,388 Unsecured long-term debt: Medium-term notes sold through dealers 5,191,007 5,263,496 Medium-term notes sold to members 260,570 250,397 Medium term notes sold through dealers and to members 5,451,577 5,513,893 Unamortized discount (1,932) (2,086) Debt issuance costs (18,278) (19,723) Total unsecured medium-term notes 5,431,367 5,492,084 Unsecured notes payable 1,979 1,979 Unamortized discount (5) (10) Debt issuance costs (1) (1) Total unsecured notes payable 1,973 1,968 Total unsecured long-term debt 5,433,340 5,494,052 Total long-term debt $ 21,867,456 $ 21,545,440 Secured Debt Long-term secured debt of $16,434 million and $16,051 million as of August 31, 2022 and May 31, 2022, respectively, represented 75% of total long-term debt outstanding as of each respective date. We were in compliance with all covenants and conditions under our debt indentures as of August 31, 2022 and May 31, 2022. 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. On August 17, 2022 we issued a total of $400 million aggregate principal amount of sustainability collateral trust bonds at 4.15% due December 15, 2032. Guaranteed Underwriter Program Notes Payable We borrowed $100 million an d repaid $44 million of note s payable outstanding under the Guaranteed Underwriter Program during the three months ended August 31, 2022. We had up to $975 million available for access under the Guaranteed Underwriter Program as of August 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 Investors Service (“Moody’s”), (ii) A- or higher from S&P Global Inc. (“S&P”), (iii) A- or higher from Fitch Ratings (“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 under which we can borrow up to $6,000 million from Farmer Mac at any time, subject to market conditions, through June 30, 2027. The agreement has successive automatic one eginning June 30, 2026, unless Farmer Mac provides 425 days’ written notice of non-renewal. Pursuant to this revolving note purchase agreement, we can borrow, repay and re-borrow funds at any time through maturity, as market conditions permit, provided that the outstanding principal amount at any time does not exceed the total available under the agreement. Each borrowing under the revolving note purchase agreement is evidenced by a pricing agreement setting forth the interest rate, maturity date and other related terms as we may negotiate with Farmer Mac at the time of each such borrowing. We may select a fixed rate or variable rate at the time of each advance with a maturity as determined in the applicable p ricing agreement. The amount outstanding under this agreement included $3,021 million of long-term debt as of August 31, 2022. We borrowed $200 million in long-term notes payable under the Farmer Mac Note Purchase Agreement during the three months ended August 31, 2022. The amount availab le for borrowing totaled $2,979 million as of August 31, 2022. Unsecured Debt Long-term unsecured debt of $5,433 million and $5,494 million as of August 31, 2022 and May 31, 2022, respectively, represented 25% of long-term debt outstanding as of each respective date. See “Note 7—Long-Term Debt” in our 2022 Form 10-K for additional information on our various long-term debt product types. |
Subordinated Deferrable Debt
Subordinated Deferrable Debt | 3 Months Ended |
Aug. 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. We had subordinated deferrable debt outstanding of $987 million as of August 31, 2022, unchanged from May 31, 2022. See “Note 8—Subordinated Deferrable Debt” in our 2022 Form 10-K for additional information on the terms and conditions, including maturity and call dates, of our subordinated deferrable debt outstanding. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Aug. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | NOTE 9—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 over-the-counter (“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. We did not have any derivatives designated as accounting hedges as of August 31, 2022 or May 31, 2022. We provide a discussion of our accounting for derivatives policy in “Note 1—Summary of Significant Accounting Policies” in our 2022 Form 10-K. Notional Amount 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 August 31, 2022 and May 31, 2022. 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 9.1: Derivative Notional Amount and Weighted Average Rates August 31, 2022 May 31, 2022 (Dollars in thousands) Notional Weighted- Weighted- Notional Weighted- Weighted- Pay-fixed swaps $ 5,999,761 2.60 % 2.66 % $ 5,957,631 2.60 % 1.24 % Receive-fixed swaps 1,980,000 3.25 2.86 1,980,000 1.53 2.86 Total interest rate swaps 7,979,761 2.76 2.71 7,937,631 2.33 1.64 Forward pay-fixed swaps — 124,000 Total interest rate swaps $ 7,979,761 $ 8,061,631 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 August 31, 2022 and May 31, 2022. Table 9.2: Derivative Assets and Liabilities at Fair Value August 31, 2022 May 31, 2022 (Dollars in thousands) Fair Value Notional Amount Fair Value Notional Amount (1) Derivative assets: Interest rate swaps $ 328,285 $ 5,173,831 $ 222,042 $ 4,791,699 Total derivative assets $ 328,285 $ 5,173,831 $ 222,042 $ 4,791,699 Derivative liabilities: Interest rate swaps $ 130,242 $ 2,805,930 $ 128,282 $ 3,269,932 Total derivative liabilities $ 130,242 $ 2,805,930 $ 128,282 $ 3,269,932 (1) The notional amount includes $124 million notional amount of forward starting swaps, as shown above in Table 9.1: 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, 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 August 31, 2022 and May 31, 2022, and provides information on the impact of netting provisions under our master swap agreements and collateral pledged, if any. Table 9.3: Derivative Gross and Net Amounts August 31, 2022 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 328,285 $ — $ 328,285 $ 119,410 $ — $ 208,875 Derivative liabilities: Interest rate swaps 130,242 — 130,242 119,410 — 10,832 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 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 the three months ended August 31, 2022 and 2021. 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 9.4: Derivative Gains (Losses) Three Months Ended August 31, (Dollars in thousands) 2022 2021 Derivative gains (losses) attributable to: Derivative cash settlements interest expense $ (10,785) $ (27,563) Derivative forward value gains (losses) 104,372 (144,600) Derivative gains (losses) $ 93,587 $ (172,163) 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 September 7, 2022, Fitch affirmed CFC’s credit ratings and stable outlook. Our senior unsecured credit ratings from Moody’s, S&P and Fitch wer e A2, A- and A, respectively, as of August 31, 2022. Moody’s, S&P and Fitch had our ratings on stable outlook as of August 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 August 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 9.5: Derivative Credit Rating Trigger Exposure (Dollars in thousands) Notional Payable Due from CFC Receivable Net Receivable (Payable) Impact of rating downgrade trigger: Falls below A3/A- (1) $ 36,110 $ (2,944) $ — $ (2,944) Falls below Baa1/BBB+ 5,454,822 (9,357) 131,658 122,301 Falls to or below Baa2/BBB (2) 322,364 — 11,306 11,306 Total $ 5,813,296 $ (12,301) $ 142,964 $ 130,663 ____________________________ (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 $231 million as of August 31, 2022. These swaps were in an unrealized gain position of $17 million as of August 31, 2022. Our largest counterparty exposure, based on the outstanding notional amount, accounted for approximately 24% the total outstanding notional amount of derivatives as of both August 31, 2022 and May 31, 2022 . 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 $12 million as of August 31, 2022. |
Equity
Equity | 3 Months Ended |
Aug. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 10—EQUITY Total equity increased $105 million to $2,247 million as of August 31, 2022, attributable primarily to our reported net income of $162 million for the three months ended August 31, 2022, partially offset by the patronage capital retirement of $59 million authorized by the CFC Board of Directors in July 2022. Allocation of Net Earnings and Retirement of Patronage Capital In May 2022, the CFC Board of Directors authorized the allocation of $1 million of net earnings for fiscal year 2022 to the cooperative educational 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 “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’ polic y. The authorized patronage capital retirement amount of $59 million was returned to members in cash in September 2022. The remaining portion of the patronage capital allocation for fiscal year 2022 will be retained by CFC for 25 years pursuant to the current guidelines adopt ed by the CFC Board of Directors in June 2009. See “Note 11—Equity” in our 2022 Form 10-K for additional information on our policy for allocation and retirement of patronage capital. Accumulated Other Comprehensive Income (Loss) The following table presents, by component, changes in AOCI for the three months ended August 31, 2022 and 2021 and the balance of each component as of the end of each respective period. Table 10.1: Changes in Accumulated Other Comprehensive Income (Loss) Three Months Ended August 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 $ 5,123 $ (2,865) $ 2,258 $ 1,718 $ (1,743) $ (25) Changes in unrealized gains — — — 416 — 416 Realized (gains) losses reclassified to earnings (189) 100 (89) (97) 71 (26) Ending balance $ 4,934 $ (2,765) $ 2,169 $ 2,037 $ (1,672) $ 365 ____________________________ (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 component of the other non-interest expense line item presented on our consolidated statements of operations. We expect to reclassify realized gains of $1 million attributable to derivative cash flow hedges from AOCI into earnings over the next 12 months. |
Guarantees
Guarantees | 3 Months Ended |
Aug. 31, 2022 | |
Guarantees [Abstract] | |
Guarantees | NOTE 11—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 August 31, 2022 and May 31, 2022. Table 11.1: Guarantees Outstanding by Type and Member Class (Dollars in thousands) August 31, 2022 May 31, 2022 Guarantee type: Long-term tax-exempt bonds (1) $ 121,450 $ 122,150 Letters of credit (2)(3) 490,177 450,354 Other guarantees 159,014 158,279 Total $ 770,641 $ 730,783 Member class: CFC: Distribution $ 324,363 $ 314,925 Power supply 403,463 378,516 Statewide and associate (4) 13,898 13,372 CFC total 741,724 706,813 NCSC 28,917 23,970 Total $ 770,641 $ 730,783 ____________________________ (1) Represents the outstanding principal amount of long-term variable-rate guaranteed bonds. (2) Reflects our maximum potential exposure for letters of credit. (3) Under a hybrid letter of credit facility we had $31 million of commitments that may be used for the issuance of letters of credit as of August 31, 2022. (4) Includes CFC guarantees to NCSC and RTFC memb ers totaling $12 million an d $11 million as of August 31, 2022 and May 31, 2022, respectively. We had guarantees outstanding totaling $771 million and $731 million as of August 31, 2022 and May 31, 2022, respectively. Guarantees under which our right of recovery from our members was not secured totaled $485 million and $466 million and represented 63% and 64% of total guarantees as of August 31, 2022 and May 31, 2022, respectively. Long-term tax-exempt bonds of $121 million a nd $122 million as of August 31, 2022 and May 31, 2022 , 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 as 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 $490 million and $450 million as of August 31, 2022 and May 31, 2022, respectively, $139 million and $118 million were secured at each respective date. The maturities for the outstanding letters of credit as of August 31, 2022 extend through calendar year 2040. In addition to the letters of credit listed in the table above, under master letter of credit facilities in place as of August 31, 2022, we may be required to issue up to an additional $97 million in letters of credit to third parties for the benefit of our members. All of our master letter of credit facilities were subject to material adverse change clauses at the time of issuance as of August 31, 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 master letter of credit facility was approved and confirm that the borrower is currently in compliance with the terms and conditions of the agreement governing the facility. The maximum potential exposure for other guarantees was $159 million and $158 million as of August 31, 2022 and May 31, 2022, respectively, of which $25 million was secured as of both August 31, 2022 and May 31, 2022. The maturities for these other guarantees listed in the table above extend through calendar year 2025. In addition to the guarantees described above, we were also the liquidity provider for $121 million of variable-rate tax-exempt bonds as of August 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 the three months ended August 31, 2022 or the prior fiscal year. Guarantee Liability We recorded a total guarantee liability for noncontingent and contingent exposures related to guarantees and liquidity obligations of $12 million and $13 million as of August 31, 2022 and May 31, 2022, 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 as of each respective date. The remaining amount pertains to our contingent guarantee exposures. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Aug. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 12—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. 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 August 31, 2022 and May 31, 2022. 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 12.1: Fair Value of Financial Instruments August 31, 2022 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 232,084 $ 232,084 $ 232,084 $ — $ — Restricted cash 8,468 8,468 8,468 — — Equity securities, at fair value 36,359 36,359 36,359 — — Debt securities trading, at fair value 561,972 561,972 — 561,972 — Deferred compensation investments 6,514 6,514 6,514 — — Loans to members, net 30,616,275 28,590,435 — — 28,590,435 Accrued interest receivable 131,756 131,756 — 131,756 — Derivative assets 328,285 328,285 — 328,285 — Total financial assets $ 31,921,713 $ 29,895,873 $ 283,425 $ 1,022,013 $ 28,590,435 Liabilities: Short-term borrowings $ 5,270,826 $ 5,269,268 $ — $ 5,269,268 $ — Long-term debt 21,867,456 20,982,591 — 12,337,848 8,644,743 Accrued interest payable 198,922 198,922 — 198,922 — Guarantee liability 12,232 11,973 — — 11,973 Derivative liabilities 130,242 130,242 — 130,242 — Subordinated deferrable debt 986,571 941,400 243,300 698,100 — Members’ subordinated certificates 1,236,528 1,236,528 — — 1,236,528 Total financial liabilities $ 29,702,777 $ 28,770,924 $ 243,300 $ 18,634,380 $ 9,893,244 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 For additional information regarding fair value measurements, the fair value hierarchy and a description of the methodologies we use to estimate fair value, see “Note 14—Fair Value Measurement” to the Consolidated Financial Statements in our 2022 Form 10-K. 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 three months ended August 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 August 31, 2022 and May 31, 2022, and the classification of the valuation technique within the fair value hierarchy. We did no t have any assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs during the three months ended August 31, 2022 and 2021. Table 12.2: Assets and Liabilities Measured at Fair Value on a Recurring Basis August 31, 2022 May 31, 2022 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities, at fair value $ 36,359 $ — $ 36,359 $ 33,758 $ — $ 33,758 Debt securities trading, at fair value — 561,972 561,972 — 566,146 566,146 Deferred compensation investments 6,514 — 6,514 6,710 — 6,710 Derivative assets — 328,285 328,285 — 222,042 222,042 Liabilities: Derivative liabilities $ — $ 130,242 $ 130,242 $ — $ 128,282 $ 128,282 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Aug. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | NOTE 13—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 August 31, 2022 and May 31, 2022. Table 13.1: Consolidated Assets and Liabilities of Variable Interest Entities (Dollars in thousands) August 31, 2022 May 31, 2022 Assets: Loans outstanding $ 1,197,504 $ 1,178,479 Other assets 9,725 9,672 Total assets $ 1,207,229 $ 1,188,151 Liabilities: Total liabilities $ 21,616 $ 22,958 The following table provides information on CFC’s credit commitments to NCSC and RTFC and potential exposure to loss under these commitments as of August 31, 2022 and May 31, 2022. Table 13.2: CFC Exposure Under Credit Commitments to NCSC and RTFC (Dollars in thousands) August 31, 2022 May 31, 2022 CFC credit commitments to NCSC and RTFC: Total CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,178,810 1,158,583 Credit enhancements: CFC third-party guarantees 28,917 23,970 Other credit enhancements 3,080 4,044 Total credit enhancements (2) 31,997 28,014 Total outstanding commitments 1,210,807 1,186,597 CFC credit commitments available (3) $ 4,289,193 $ 4,313,403 ____________________________ (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. Under a loan and security agreement with CFC, NCSC has access to a $1,500 million revolving line of credit and a $1,500 million revolving term loan from CFC, which mature in 2067. Under a loan and security agreement with CFC, RTFC has access to a $1,000 million revolving line of credit and a $1,500 million revolving term loan from CFC, which mature in 2067. CFC loans to NCSC and RTFC are secured by all assets and rev enue of NCSC and RTFC. CFC’s maximum potential exposure, including interest due, for the credit enhancements totaled $32 million as of August 31, 2022. Th e maturities for obligations guaranteed by CFC extend through 2031. |
Business Segments
Business Segments | 3 Months Ended |
Aug. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 14—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. 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. We describe the business segment reporting methodology in “Note 16—Business Segments” to the Consolidated Financial Statements in our 2022 Form 10-K. Segment Results and Reconciliation The following tables display segment results of operations for the three months ended August 31, 2022 and 2021, assets attributable to each segment as of August 31, 2022 and August 31, 2021 and a reconciliation of total segment amounts to our consolidated total amounts. Table 14.1: Business Segment Information Three Months Ended August 31, 2022 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 304,984 $ 11,936 $ 316,920 $ — $ (9,942) $ 306,978 Interest expense (209,468) (9,942) (219,410) — 9,942 (209,468) Derivative cash settlements interest expense (10,528) (257) (10,785) 10,785 — — Interest expense (219,996) (10,199) (230,195) 10,785 9,942 (209,468) Net interest income 84,988 1,737 86,725 10,785 — 97,510 Provision for credit losses (3,496) (247) (3,743) — 247 (3,496) Net interest income after provision for credit losses 81,492 1,490 82,982 10,785 247 94,014 Non-interest income: Fee and other income 5,793 919 6,712 — (2,656) 4,056 Derivative gains: Derivative cash settlements interest expense — — — (10,785) — (10,785) Derivative forward value gains — — — 104,372 — 104,372 Derivative gains — — — 93,587 — 93,587 Investment securities losses (3,679) — (3,679) — — (3,679) Total non-interest income 2,114 919 3,033 93,587 (2,656) 93,964 Non-interest expense: General and administrative expenses (25,012) (2,535) (27,547) — 2,028 (25,519) Other non-interest expense (322) (381) (703) — 381 (322) Total non-interest expense (25,334) (2,916) (28,250) — 2,409 (25,841) Income (loss) before income taxes 58,272 (507) 57,765 104,372 — 162,137 Income tax provision — (263) (263) — — (263) Net income (loss) $ 58,272 $ (770) $ 57,502 $ 104,372 $ — $ 161,874 August 31, 2022 CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 30,656,301 $ 1,197,504 $ 31,853,805 $ — $ (1,178,809) $ 30,674,996 Deferred loan origination costs 12,335 — 12,335 — — 12,335 Loans to members 30,668,636 1,197,504 31,866,140 — (1,178,809) 30,687,331 Less: Allowance for credit losses (71,056) (2,982) (74,038) — 2,982 (71,056) Loans to members, net 30,597,580 1,194,522 31,792,102 — (1,175,827) 30,616,275 Other assets 1,456,295 97,694 1,553,989 — (87,970) 1,466,019 Total assets $ 32,053,875 $ 1,292,216 $ 33,346,091 $ — $ (1,263,797) $ 32,082,294 Three Months Ended August 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 $ 281,307 $ 10,453 $ 291,760 $ — $ (8,492) $ 283,268 Interest expense (174,777) (8,492) (183,269) — 8,492 (174,777) Derivative cash settlements interest expense (27,145) (418) (27,563) 27,563 — — Interest expense (201,922) (8,910) (210,832) 27,563 8,492 (174,777) Net interest income 79,385 1,543 80,928 27,563 — 108,491 Provision for credit losses (4,003) (206) (4,209) — 206 (4,003) Net interest income after provision for credit losses 75,382 1,337 76,719 27,563 206 104,488 Non-interest income: Fee and other income 5,323 884 6,207 — (2,266) 3,941 Derivative losses: Derivative cash settlements interest expense — — — (27,563) — (27,563) Derivative forward value losses — — — (144,600) — (144,600) Derivative losses — — — (172,163) — (172,163) Investment securities losses (2,225) — (2,225) — — (2,225) Total non-interest income 3,098 884 3,982 (172,163) (2,266) (170,447) Non-interest expense: General and administrative expenses (23,654) (2,151) (25,805) — 1,595 (24,210) Other non-interest expense (256) (465) (721) — 465 (256) Total non-interest expense (23,910) (2,616) (26,526) — 2,060 (24,466) Income (loss) before income taxes 54,570 (395) 54,175 (144,600) — (90,425) Income tax benefit — 93 93 — — 93 Net income (loss) $ 54,570 $ (302) $ 54,268 $ (144,600) $ — $ (90,332) August 31, 2021 CFC NCSC and RTFC Segment Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 28,849,795 $ 1,137,333 $ 29,987,128 $ — $ (1,116,370) $ 28,870,758 Deferred loan origination costs 11,875 — 11,875 — — 11,875 Loans to members 28,861,670 1,137,333 29,999,003 — (1,116,370) 28,882,633 Less: Allowance for credit losses (89,535) — (89,535) — — (89,535) Loans to members, net 28,772,135 1,137,333 29,909,468 — (1,116,370) 28,793,098 Other assets 1,288,781 98,855 1,387,636 — (88,987) 1,298,649 Total assets $ 30,060,916 $ 1,236,188 $ 31,297,104 $ — $ (1,205,357) $ 30,091,747 ____________________________ (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) | 3 Months Ended |
Aug. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The CompanyNational 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. |
Basis of Presentation | Basis of Presentation and Use of Estimates The accompanying unaudited interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP.”) These 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. National Cooperative Services Corporation (“NCSC”) and Rural Telephone Finance Cooperative (“RTFC”) are VIEs that are required to be consolidated by CFC. NCSC is a taxable member-owned cooperative that may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural,” and for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. RTFC is a taxable Subchapter T cooperative association that provides financing for its rural telecommunications members and their affiliates. CFC has not had entities that held foreclosed assets since fiscal year 2017. All intercompany balances and transactions have been eliminated. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. |
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. In the opinion of management, these unaudited interim financial statements reflect all adjustments of a normal, recurring nature that are necessary for the fair statement of results for the periods presented. |
Reclassification | Certain reclassifications and updates may 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 periods’ net income (loss) or equity. |
New Accounting Standards | New Accounting Standards Financial Instruments-Credit Losses, Troubled Debt Restructurings (“TDRs”) 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 current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings 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 year 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. 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 . Upon issuance, we elected to apply certain of the optional expedients for contract modifications to our financial instruments impacted by the LIBOR discontinuance. We expect to continue to elect various optional expedients for contract modifications to our financial instruments affected by the reference rate reform through the effective date of this guidance. The application of this guidance did not have a material impact on our consolidated financial statements. |
Accounting for Derivatives | We did not have any derivatives designated as accounting hedges as of August 31, 2022 or May 31, 2022. We provide a discussion of our accounting for derivatives policy in “Note 1—Summary of Significant Accounting Policies” in our 2022 Form 10-K. |
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. |
Transfer Between Levels | 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 three months ended August 31, 2022 and 2021. |
Interest Income and Interest _2
Interest Income and Interest Expense - (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of 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 the three months ended August 31, 2022 and 2021. Table 2.1: Interest Income and Interest Expense Three Months Ended August 31, (Dollars in thousands) 2022 2021 Interest income: Loans (1) $ 302,680 $ 278,819 Investment securities 4,298 4,449 Total interest income 306,978 283,268 Interest expense: (2)(3) Short-term borrowings 24,209 3,393 Long-term debt 158,881 144,873 Subordinated debt 26,378 26,511 Total interest expense 209,468 174,777 Net interest income $ 97,510 $ 108,491 ____________________________ (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) | 3 Months Ended |
Aug. 31, 2022 | |
Investments [Abstract] | |
Schedule of Debt Securities Trading, at Fair Value | The following table presents the composition of our investment debt securities portfolio and the fair value as of August 31, 2022 and May 31, 2022. Table 3.1: Investments in Debt Securities, at Fair Value (Dollars in thousands) August 31, 2022 May 31, 2022 Debt securities, at fair value: Commercial paper $ 3,000 $ 9,985 Corporate debt securities 478,966 487,172 Commercial agency mortgage-backed securities (“MBS”) (1) 7,572 7,815 U.S. state and municipality debt securities 29,696 27,778 Foreign government debt securities 959 967 Other asset-backed securities (2) 41,779 32,429 Total debt securities trading, at fair value $ 561,972 $ 566,146 ____________________________ (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 Equity Securities | The following table presents the composition of our equity security holdings and the fair value as of August 31, 2022 and May 31, 2022. Table 3.2: Investments in Equity Securities, at Fair Value (Dollars in thousands) August 31, 2022 May 31, 2022 Equity securities, at fair value: Farmer Mac—Series C non-cumulative preferred stock $ 28,000 $ 25,520 Farmer Mac—Class A common stock 8,359 8,238 Total equity securities, at fair value $ 36,359 $ 33,758 |
Loans - (Tables)
Loans - (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
Receivables [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 August 31, 2022 and May 31, 2022. Table 4.1: Loans to Members by Member Class and Loan Type August 31, 2022 May 31, 2022 (Dollars in thousands) Amount % of Total Amount % of Total Member class: CFC: Distribution $ 24,244,193 79% $ 23,844,242 79% Power supply 5,101,682 17 4,901,770 17 Statewide and associate 131,617 — 126,863 — Total CFC 29,477,492 96 28,872,875 96 NCSC 727,869 2 710,878 2 RTFC 469,635 2 467,601 2 Total loans outstanding (1) 30,674,996 100 30,051,354 100 Deferred loan origination costs—CFC (2) 12,335 — 12,032 — Loans to members $ 30,687,331 100% $ 30,063,386 100% Loan type: Long-term loans: Fixed rate $ 27,391,075 89% $ 26,952,372 90% Variable rate 761,370 3 820,201 2 Total long-term loans 28,152,445 92 27,772,573 92 Lines of credit 2,522,551 8 2,278,781 8 Total loans outstanding (1) 30,674,996 100 30,051,354 100 Deferred loan origination costs—CFC (2) 12,335 — 12,032 — Loans to members $ 30,687,331 100% $ 30,063,386 100% ____________________________ (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 Past Due Financing Receivables | The following table presents the payment status, by legal entity and member class, of loans outstanding as of August 31, 2022 and May 31, 2022. Table 4.2: Payment Status of Loans Outstanding August 31, 2022 (Dollars in thousands) Current 30-89 Days Past Due > 90 Days Total Total Loans Outstanding Nonaccrual Loans Member class: CFC: Distribution $ 24,244,193 $ — $ — $ — $ 24,244,193 $ — Power supply 4,987,693 51 113,938 113,989 5,101,682 217,810 Statewide and associate 131,617 — — — 131,617 — CFC total 29,363,503 51 113,938 113,989 29,477,492 217,810 NCSC 727,869 — — — 727,869 — RTFC 469,635 — — — 469,635 — Total loans outstanding $ 30,561,007 $ 51 $ 113,938 $ 113,989 $ 30,674,996 $ 217,810 Percentage of total loans 99.63% — % 0.37% 0.37% 100.00% 0.71% 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% |
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 August 31, 2022 and May 31, 2022. Table 4.3: Trouble Debt Restructurings August 31, 2022 May 31, 2022 (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 $ 4,638 0.02% 1 $ 5,092 0.02% RTFC 1 3,966 0.01 1 4,092 0.01 Total TDR loans 2 $ 8,604 0.03% 2 $ 9,184 0.03% Performance status of TDR loans: Performing TDR loans 2 $ 8,604 0.03% 2 $ 9,184 0.03% Total TDR loans 2 $ 8,604 0.03% 2 $ 9,184 0.03% ____________________________ |
Schedule of Nonperforming Loans | The following table presents the outstanding balance of nonperforming loans, by legal entity and member class, as of August 31, 2022 and May 31, 2022. Loans classified as nonperforming are placed on nonaccrual status. Table 4.4: Nonperforming Loans August 31, 2022 May 31, 2022 (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 3 $ 217,810 0.71% 3 $ 227,790 0.76% Total nonperforming loans 3 $ 217,810 0.71% 3 $ 227,790 0.76% ____________________________ |
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 August 31, 2022 Term Loans by Fiscal Year of Origination (Dollars in thousands) YTD Q1 2023 2022 2021 2020 2019 Prior Revolving Loans Total May 31, 2022 Pass CFC: Distribution $ 599,475 $ 2,472,643 $ 1,684,739 $ 1,868,407 $ 1,184,184 $ 14,533,691 $ 1,645,051 $ 23,988,190 $ 23,596,004 Power supply 185,300 366,847 557,006 186,210 398,612 2,814,019 375,878 4,883,872 4,673,980 Statewide and associate 6,300 33,848 2,189 17,374 3,179 19,176 35,704 117,770 112,610 CFC total 791,075 2,873,338 2,243,934 2,071,991 1,585,975 17,366,886 2,056,633 28,989,832 28,382,594 NCSC 3,875 48,958 38,989 229,706 3,987 270,736 131,618 727,869 710,878 RTFC 19,925 90,152 83,515 43,696 9,619 203,254 15,508 465,669 463,509 Total pass $ 814,875 $ 3,012,448 $ 2,366,438 $ 2,345,393 $ 1,599,581 $ 17,840,876 $ 2,203,759 $ 30,183,370 $ 29,556,981 Special mention CFC: Distribution $ — $ — $ 4,861 $ — $ 5,078 $ 12,872 $ 233,192 $ 256,003 $ 248,238 Statewide and associate — — — — 4,965 8,882 — 13,847 14,253 CFC total — — 4,861 — 10,043 21,754 233,192 269,850 262,491 RTFC — — — — — 3,966 — 3,966 4,092 Total special mention $ — $ — $ 4,861 $ — $ 10,043 $ 25,720 $ 233,192 $ 273,816 $ 266,583 Substandard Total substandard $ — $ — $ — $ — $ — $ — $ — $ — $ — Doubtful CFC: Power supply $ — $ — $ — $ — $ — $ 132,210 $ 85,600 $ 217,810 $ 227,790 Total doubtful $ — $ — $ — $ — $ — $ 132,210 $ 85,600 $ 217,810 $ 227,790 Total criticized loans $ — $ — $ 4,861 $ — $ 10,043 $ 157,930 $ 318,792 $ 491,626 $ 494,373 Total loans outstanding $ 814,875 $ 3,012,448 $ 2,371,299 $ 2,345,393 $ 1,609,624 $ 17,998,806 $ 2,522,551 $ 30,674,996 $ 30,051,354 |
Schedule of Unadvanced Commitments | The following table presents unadvanced loan commitments, by member class and by loan type, as of August 31, 2022 and May 31, 2022. Table 4.6: Unadvanced Commitments by Member Class and Loan Type (Dollars in thousands) August 31, 2022 May 31, 2022 Member class: CFC: Distribution $ 9,337,695 $ 9,230,197 Power supply 3,825,651 3,835,535 Statewide and associate 181,424 183,845 Total CFC 13,344,770 13,249,577 NCSC 537,888 551,901 RTFC 291,419 309,724 Total unadvanced commitments $ 14,174,077 $ 14,111,202 Loan type: (1) Long-term loans: Fixed rate $ — $ — Variable rate 5,402,527 5,357,205 Total long-term loans 5,402,527 5,357,205 Lines of credit 8,771,550 8,753,997 Total unadvanced commitments $ 14,174,077 $ 14,111,202 ____________________________ (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 Balance and Maturities of Lines of Credit | The following table displays, by loan type, the available balance under unadvanced loan commitments as of August 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 $ 8,771,550 $ 564,791 $ 4,406,240 $ 1,325,331 $ 628,055 $ 1,395,791 $ 451,342 Long-term loans 5,402,527 498,859 1,330,821 733,384 989,229 1,530,490 319,744 Total $ 14,174,077 $ 1,063,650 $ 5,737,061 $ 2,058,715 $ 1,617,284 $ 2,926,281 $ 771,086 |
Schedule 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 as of August 31, 2022, and the related maturity amounts in each fiscal year during the five-year period ending May 31, 2027, and thereafter. 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 Thereafter Committed lines of credit $ 3,204,749 $ 188,785 $ 374,962 $ 858,039 $ 457,449 $ 1,011,576 $ 313,938 |
Schedule of Loans Outstanding as Collateral Pledged to Secure the Entity's Collateral Trust Bonds, Clean Renewable Energy Bonds and Notes Payable to the Federal Agricultural Mortgage Corporation and the Amount of the Corresponding Debt Outstanding | Table 4.9 displays the borrowing amount under each of our secured borrowing agreements and the corresponding loans outstanding pledged as collateral as of August 31, 2022 and May 31, 2022. 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 (Dollars in thousands) August 31, 2022 May 31, 2022 Collateral trust bonds: 2007 indenture: Collateral trust bonds outstanding $ 7,472,711 $ 7,072,711 Pledged collateral: Distribution system mortgage notes pledged 8,448,742 8,564,596 RUS-guaranteed loans qualifying as permitted investments pledged 112,842 114,654 Total pledged collateral 8,561,584 8,679,250 1994 indenture: Collateral trust bonds outstanding $ 25,000 $ 25,000 Pledged collateral: Distribution system mortgage notes pledged 28,852 29,616 Guaranteed Underwriter Program: Notes payable outstanding $ 6,161,811 $ 6,105,473 Pledged collateral: Distribution and power supply system mortgage notes pledged 6,846,572 6,904,591 Farmer Mac: Notes payable outstanding $ 3,021,131 $ 3,094,679 Pledged collateral: Distribution and power supply system mortgage notes pledged 3,387,202 3,445,358 Clean Renewable Energy Bonds Series 2009A: Notes payable outstanding $ 2,755 $ 2,755 Pledged collateral: Distribution and power supply system mortgage notes pledged 2,661 3,138 Cash 784 392 Total pledged collateral 3,445 3,530 |
Allowance for Credit Losses - (
Allowance for Credit Losses - (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses on Financing Receivables | The following tables summarize, by legal entity and member class, changes in the allowance for credit losses for our loan portfolio for the three months ended August 31, 2022 and 2021. Table 5.1: Changes in Allowance for Credit Losses Three Months Ended August 31, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of May 31, 2022 $ 15,781 $ 47,793 $ 1,251 $ 64,825 $ 1,449 $ 1,286 $ 67,560 Provision for credit losses 631 2,550 68 3,249 116 131 3,496 Balance as of August 31, 2022 $ 16,412 $ 50,343 $ 1,319 $ 68,074 $ 1,565 $ 1,417 $ 71,056 Three Months Ended August 31, 2021 (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 for credit losses 1,943 1,823 31 3,797 81 125 4,003 Balance as of August 31, 2021 $ 15,369 $ 66,469 $ 1,422 $ 83,260 $ 1,455 $ 4,820 $ 89,535 |
Schedule of Allowance for Credit Losses and Recorded Investment in Financing Receivables | The following tables present, by legal entity and member class, the components of our allowance for credit losses as of August 31, 2022 and May 31, 2022. Table 5.2: Allowance for Credit Losses Components August 31, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 16,412 $ 9,741 $ 1,319 $ 27,472 $ 1,565 $ 1,042 $ 30,079 Asset-specific allowance — 40,602 — 40,602 — 375 40,977 Total allowance for credit losses $ 16,412 $ 50,343 $ 1,319 $ 68,074 $ 1,565 $ 1,417 $ 71,056 Loans outstanding: (1) Collectively evaluated loans $ 24,239,555 $ 4,883,872 $ 131,617 $ 29,255,044 $ 727,869 $ 465,669 $ 30,448,582 Individually evaluated loans 4,638 217,810 — 222,448 — 3,966 226,414 Total loans outstanding $ 24,244,193 $ 5,101,682 $ 131,617 $ 29,477,492 $ 727,869 $ 469,635 $ 30,674,996 Allowance coverage ratios: Collective allowance coverage ratio (2) 0.07% 0.20% 1.00% 0.09% 0.22% 0.22% 0.10% Asset-specific allowance coverage ratio (3) — 18.64 — 18.25 — 9.46 18.10 Total allowance coverage ratio (4) 0.07 0.99 1.00 0.23 0.22 0.30 0.23 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 — 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 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 coverage 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 ____________________________ (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 August 31, 2022 and May 31, 2022. (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. |
Short-Term Borrowings - (Tables
Short-Term Borrowings - (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The following table provides comparative information on our short-term borrowings as of August 31, 2022 and May 31, 2022. Table 6.1: Short-Term Borrowings Sources August 31, 2022 May 31, 2022 (Dollars in thousands) Amount % of Total Debt Outstanding Amount % of Total Debt Outstanding Short-term borrowings: Commercial paper: Commercial paper dealers, net of discounts $ 1,278,986 4% $ 1,024,813 4% Commercial paper members, at par 1,388,041 5 1,358,069 5 Total commercial paper 2,667,027 9 2,382,882 9 Select notes to members 1,712,778 6 1,753,441 6 Daily liquidity fund notes to members 481,078 2 427,790 1 Medium-term notes to members 409,943 1 417,054 1 Total short-term borrowings $ 5,270,826 18% $ 4,981,167 17% |
Schedule of Line of Credit Facilities | The following table presents the amount available for access under our bank revolving line of credit agreements as of August 31, 2022. Table 6.2: Committed Bank Revolving Line of Credit Agreements Available Amounts August 31, 2022 (Dollars in millions) Total Commitment Letters of Credit Outstanding Available Amount Maturity Annual Facility Fee (1) Bank revolving agreements: 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) | 3 Months Ended |
Aug. 31, 2022 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Outstanding | The following table displays, by debt product type, long-term debt outstanding as of August 31, 2022 and May 31, 2022. Long-term debt outstanding totaled $21,867 million and accounted for 74% of total debt outstanding as of August 31, 2022, compared with $21,545 million and 75% of total debt outstanding as of May 31, 2022. Table 7.1: Long-Term Debt by Debt Product Type (Dollars in thousands) August 31, 2022 May 31, 2022 Secured long-term debt: Collateral trust bonds $ 7,497,711 $ 7,097,711 Unamortized discount (214,813) (216,608) Debt issuance costs (34,472) (32,613) Total collateral trust bonds 7,248,426 6,848,490 Guaranteed Underwriter Program notes payable 6,161,811 6,105,473 Farmer Mac notes payable 3,021,131 3,094,679 Other secured notes payable 2,755 2,755 Debt issuance costs (7) (9) Total other secured notes payable 2,748 2,746 Total secured notes payable 9,185,690 9,202,898 Total secured long-term debt 16,434,116 16,051,388 Unsecured long-term debt: Medium-term notes sold through dealers 5,191,007 5,263,496 Medium-term notes sold to members 260,570 250,397 Medium term notes sold through dealers and to members 5,451,577 5,513,893 Unamortized discount (1,932) (2,086) Debt issuance costs (18,278) (19,723) Total unsecured medium-term notes 5,431,367 5,492,084 Unsecured notes payable 1,979 1,979 Unamortized discount (5) (10) Debt issuance costs (1) (1) Total unsecured notes payable 1,973 1,968 Total unsecured long-term debt 5,433,340 5,494,052 Total long-term debt $ 21,867,456 $ 21,545,440 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities - (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts and Weighted Average Rates Paid and Received | 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 August 31, 2022 and May 31, 2022. 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 9.1: Derivative Notional Amount and Weighted Average Rates August 31, 2022 May 31, 2022 (Dollars in thousands) Notional Weighted- Weighted- Notional Weighted- Weighted- Pay-fixed swaps $ 5,999,761 2.60 % 2.66 % $ 5,957,631 2.60 % 1.24 % Receive-fixed swaps 1,980,000 3.25 2.86 1,980,000 1.53 2.86 Total interest rate swaps 7,979,761 2.76 2.71 7,937,631 2.33 1.64 Forward pay-fixed swaps — 124,000 Total interest rate swaps $ 7,979,761 $ 8,061,631 |
Schedule of Fair Values and Notional Amounts of Outstanding Derivatives | 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 August 31, 2022 and May 31, 2022. Table 9.2: Derivative Assets and Liabilities at Fair Value August 31, 2022 May 31, 2022 (Dollars in thousands) Fair Value Notional Amount Fair Value Notional Amount (1) Derivative assets: Interest rate swaps $ 328,285 $ 5,173,831 $ 222,042 $ 4,791,699 Total derivative assets $ 328,285 $ 5,173,831 $ 222,042 $ 4,791,699 Derivative liabilities: Interest rate swaps $ 130,242 $ 2,805,930 $ 128,282 $ 3,269,932 Total derivative liabilities $ 130,242 $ 2,805,930 $ 128,282 $ 3,269,932 (1) The notional amount includes $124 million notional amount of forward starting swaps, as shown above in Table 9.1: 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 August 31, 2022 and May 31, 2022, and provides information on the impact of netting provisions under our master swap agreements and collateral pledged, if any. Table 9.3: Derivative Gross and Net Amounts August 31, 2022 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 328,285 $ — $ 328,285 $ 119,410 $ — $ 208,875 Derivative liabilities: Interest rate swaps 130,242 — 130,242 119,410 — 10,832 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 |
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 August 31, 2022 and May 31, 2022, and provides information on the impact of netting provisions under our master swap agreements and collateral pledged, if any. Table 9.3: Derivative Gross and Net Amounts August 31, 2022 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 328,285 $ — $ 328,285 $ 119,410 $ — $ 208,875 Derivative liabilities: Interest rate swaps 130,242 — 130,242 119,410 — 10,832 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 |
Summary of Gains and Losses Recorded on the Consolidated Statements of Operations for the Entity's Interest Rate Swaps | The following table presents the components of the derivative gains (losses) reported in our consolidated statements of operations for the three months ended August 31, 2022 and 2021. 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 9.4: Derivative Gains (Losses) Three Months Ended August 31, (Dollars in thousands) 2022 2021 Derivative gains (losses) attributable to: Derivative cash settlements interest expense $ (10,785) $ (27,563) Derivative forward value gains (losses) 104,372 (144,600) Derivative gains (losses) $ 93,587 $ (172,163) |
Schedule of Notional Amounts of Derivative Instruments Having Rating Triggers | The following table displays the notional amounts of our derivative contracts with rating triggers as of August 31, 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 9.5: Derivative Credit Rating Trigger Exposure (Dollars in thousands) Notional Payable Due from CFC Receivable Net Receivable (Payable) Impact of rating downgrade trigger: Falls below A3/A- (1) $ 36,110 $ (2,944) $ — $ (2,944) Falls below Baa1/BBB+ 5,454,822 (9,357) 131,658 122,301 Falls to or below Baa2/BBB (2) 322,364 — 11,306 11,306 Total $ 5,813,296 $ (12,301) $ 142,964 $ 130,663 ____________________________ (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) | 3 Months Ended |
Aug. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents, by component, changes in AOCI for the three months ended August 31, 2022 and 2021 and the balance of each component as of the end of each respective period. Table 10.1: Changes in Accumulated Other Comprehensive Income (Loss) Three Months Ended August 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 $ 5,123 $ (2,865) $ 2,258 $ 1,718 $ (1,743) $ (25) Changes in unrealized gains — — — 416 — 416 Realized (gains) losses reclassified to earnings (189) 100 (89) (97) 71 (26) Ending balance $ 4,934 $ (2,765) $ 2,169 $ 2,037 $ (1,672) $ 365 ____________________________ (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 component of the other non-interest expense line item presented on our consolidated statements of operations. |
Guarantees - (Tables)
Guarantees - (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
Guarantees [Abstract] | |
Schedule 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 August 31, 2022 and May 31, 2022. Table 11.1: Guarantees Outstanding by Type and Member Class (Dollars in thousands) August 31, 2022 May 31, 2022 Guarantee type: Long-term tax-exempt bonds (1) $ 121,450 $ 122,150 Letters of credit (2)(3) 490,177 450,354 Other guarantees 159,014 158,279 Total $ 770,641 $ 730,783 Member class: CFC: Distribution $ 324,363 $ 314,925 Power supply 403,463 378,516 Statewide and associate (4) 13,898 13,372 CFC total 741,724 706,813 NCSC 28,917 23,970 Total $ 770,641 $ 730,783 ____________________________ (1) Represents the outstanding principal amount of long-term variable-rate guaranteed bonds. (2) Reflects our maximum potential exposure for letters of credit. (3) Under a hybrid letter of credit facility we had $31 million of commitments that may be used for the issuance of letters of credit as of August 31, 2022. (4) Includes CFC guarantees to NCSC and RTFC memb ers totaling $12 million an d $11 million as of August 31, 2022 and May 31, 2022, respectively. |
Fair Value Measurement - (Table
Fair Value Measurement - (Tables) | 3 Months Ended |
Aug. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value by Balance Sheet Grouping | 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 August 31, 2022 and May 31, 2022. 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 12.1: Fair Value of Financial Instruments August 31, 2022 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 232,084 $ 232,084 $ 232,084 $ — $ — Restricted cash 8,468 8,468 8,468 — — Equity securities, at fair value 36,359 36,359 36,359 — — Debt securities trading, at fair value 561,972 561,972 — 561,972 — Deferred compensation investments 6,514 6,514 6,514 — — Loans to members, net 30,616,275 28,590,435 — — 28,590,435 Accrued interest receivable 131,756 131,756 — 131,756 — Derivative assets 328,285 328,285 — 328,285 — Total financial assets $ 31,921,713 $ 29,895,873 $ 283,425 $ 1,022,013 $ 28,590,435 Liabilities: Short-term borrowings $ 5,270,826 $ 5,269,268 $ — $ 5,269,268 $ — Long-term debt 21,867,456 20,982,591 — 12,337,848 8,644,743 Accrued interest payable 198,922 198,922 — 198,922 — Guarantee liability 12,232 11,973 — — 11,973 Derivative liabilities 130,242 130,242 — 130,242 — Subordinated deferrable debt 986,571 941,400 243,300 698,100 — Members’ subordinated certificates 1,236,528 1,236,528 — — 1,236,528 Total financial liabilities $ 29,702,777 $ 28,770,924 $ 243,300 $ 18,634,380 $ 9,893,244 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 |
Schedule of the Entity's Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | The following table presents the carrying value and fair value of financial instruments reported in our consolidated financial statements at fair value on a recurring basis as of August 31, 2022 and May 31, 2022, and the classification of the valuation technique within the fair value hierarchy. We did no t have any assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs during the three months ended August 31, 2022 and 2021. Table 12.2: Assets and Liabilities Measured at Fair Value on a Recurring Basis August 31, 2022 May 31, 2022 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities, at fair value $ 36,359 $ — $ 36,359 $ 33,758 $ — $ 33,758 Debt securities trading, at fair value — 561,972 561,972 — 566,146 566,146 Deferred compensation investments 6,514 — 6,514 6,710 — 6,710 Derivative assets — 328,285 328,285 — 222,042 222,042 Liabilities: Derivative liabilities $ — $ 130,242 $ 130,242 $ — $ 128,282 $ 128,282 |
Variable Interest Entities - (T
Variable Interest Entities - (Tables) | 3 Months Ended |
Aug. 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 August 31, 2022 and May 31, 2022.Table 13.1: Consolidated Assets and Liabilities of Variable Interest Entities (Dollars in thousands) August 31, 2022 May 31, 2022 Assets: Loans outstanding $ 1,197,504 $ 1,178,479 Other assets 9,725 9,672 Total assets $ 1,207,229 $ 1,188,151 Liabilities: Total liabilities $ 21,616 $ 22,958 |
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 August 31, 2022 and May 31, 2022. Table 13.2: CFC Exposure Under Credit Commitments to NCSC and RTFC (Dollars in thousands) August 31, 2022 May 31, 2022 CFC credit commitments to NCSC and RTFC: Total CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,178,810 1,158,583 Credit enhancements: CFC third-party guarantees 28,917 23,970 Other credit enhancements 3,080 4,044 Total credit enhancements (2) 31,997 28,014 Total outstanding commitments 1,210,807 1,186,597 CFC credit commitments available (3) $ 4,289,193 $ 4,313,403 ____________________________ (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) | 3 Months Ended |
Aug. 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 three months ended August 31, 2022 and 2021, assets attributable to each segment as of August 31, 2022 and August 31, 2021 and a reconciliation of total segment amounts to our consolidated total amounts. Table 14.1: Business Segment Information Three Months Ended August 31, 2022 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 304,984 $ 11,936 $ 316,920 $ — $ (9,942) $ 306,978 Interest expense (209,468) (9,942) (219,410) — 9,942 (209,468) Derivative cash settlements interest expense (10,528) (257) (10,785) 10,785 — — Interest expense (219,996) (10,199) (230,195) 10,785 9,942 (209,468) Net interest income 84,988 1,737 86,725 10,785 — 97,510 Provision for credit losses (3,496) (247) (3,743) — 247 (3,496) Net interest income after provision for credit losses 81,492 1,490 82,982 10,785 247 94,014 Non-interest income: Fee and other income 5,793 919 6,712 — (2,656) 4,056 Derivative gains: Derivative cash settlements interest expense — — — (10,785) — (10,785) Derivative forward value gains — — — 104,372 — 104,372 Derivative gains — — — 93,587 — 93,587 Investment securities losses (3,679) — (3,679) — — (3,679) Total non-interest income 2,114 919 3,033 93,587 (2,656) 93,964 Non-interest expense: General and administrative expenses (25,012) (2,535) (27,547) — 2,028 (25,519) Other non-interest expense (322) (381) (703) — 381 (322) Total non-interest expense (25,334) (2,916) (28,250) — 2,409 (25,841) Income (loss) before income taxes 58,272 (507) 57,765 104,372 — 162,137 Income tax provision — (263) (263) — — (263) Net income (loss) $ 58,272 $ (770) $ 57,502 $ 104,372 $ — $ 161,874 August 31, 2022 CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 30,656,301 $ 1,197,504 $ 31,853,805 $ — $ (1,178,809) $ 30,674,996 Deferred loan origination costs 12,335 — 12,335 — — 12,335 Loans to members 30,668,636 1,197,504 31,866,140 — (1,178,809) 30,687,331 Less: Allowance for credit losses (71,056) (2,982) (74,038) — 2,982 (71,056) Loans to members, net 30,597,580 1,194,522 31,792,102 — (1,175,827) 30,616,275 Other assets 1,456,295 97,694 1,553,989 — (87,970) 1,466,019 Total assets $ 32,053,875 $ 1,292,216 $ 33,346,091 $ — $ (1,263,797) $ 32,082,294 Three Months Ended August 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 $ 281,307 $ 10,453 $ 291,760 $ — $ (8,492) $ 283,268 Interest expense (174,777) (8,492) (183,269) — 8,492 (174,777) Derivative cash settlements interest expense (27,145) (418) (27,563) 27,563 — — Interest expense (201,922) (8,910) (210,832) 27,563 8,492 (174,777) Net interest income 79,385 1,543 80,928 27,563 — 108,491 Provision for credit losses (4,003) (206) (4,209) — 206 (4,003) Net interest income after provision for credit losses 75,382 1,337 76,719 27,563 206 104,488 Non-interest income: Fee and other income 5,323 884 6,207 — (2,266) 3,941 Derivative losses: Derivative cash settlements interest expense — — — (27,563) — (27,563) Derivative forward value losses — — — (144,600) — (144,600) Derivative losses — — — (172,163) — (172,163) Investment securities losses (2,225) — (2,225) — — (2,225) Total non-interest income 3,098 884 3,982 (172,163) (2,266) (170,447) Non-interest expense: General and administrative expenses (23,654) (2,151) (25,805) — 1,595 (24,210) Other non-interest expense (256) (465) (721) — 465 (256) Total non-interest expense (23,910) (2,616) (26,526) — 2,060 (24,466) Income (loss) before income taxes 54,570 (395) 54,175 (144,600) — (90,425) Income tax benefit — 93 93 — — 93 Net income (loss) $ 54,570 $ (302) $ 54,268 $ (144,600) $ — $ (90,332) August 31, 2021 CFC NCSC and RTFC Segment Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 28,849,795 $ 1,137,333 $ 29,987,128 $ — $ (1,116,370) $ 28,870,758 Deferred loan origination costs 11,875 — 11,875 — — 11,875 Loans to members 28,861,670 1,137,333 29,999,003 — (1,116,370) 28,882,633 Less: Allowance for credit losses (89,535) — (89,535) — — (89,535) Loans to members, net 28,772,135 1,137,333 29,909,468 — (1,116,370) 28,793,098 Other assets 1,288,781 98,855 1,387,636 — (88,987) 1,298,649 Total assets $ 30,060,916 $ 1,236,188 $ 31,297,104 $ — $ (1,205,357) $ 30,091,747 ____________________________ (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. |
Interest Income and Interest _3
Interest Income and Interest Expense - Schedule of Interest Income and Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Interest income: | ||
Investment securities | $ 4,298 | $ 4,449 |
Interest income | 306,978 | 283,268 |
Interest expense: | ||
Short-term borrowings | 24,209 | 3,393 |
Total interest expense | 209,468 | 174,777 |
Net interest income | 97,510 | 108,491 |
Loans receivable | ||
Interest income: | ||
Loans | 302,680 | 278,819 |
Long-term debt | ||
Interest expense: | ||
Long-term debt and subordinated debt | 158,881 | 144,873 |
Subordinated debt | ||
Interest expense: | ||
Long-term debt and subordinated debt | $ 26,378 | $ 26,511 |
Interest Income and Interest _4
Interest Income and Interest Expense - Additional Information (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Banking and Thrift, Interest [Abstract] | ||
Deferred income | $ 43,098 | $ 44,332 |
Deferred loan conversion fees | $ 36,000 | $ 37,000 |
Investment Securities - Debt Se
Investment Securities - Debt Securities Trading, at Fair Value (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | $ 561,972 | $ 566,146 |
Commercial paper | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 3,000 | 9,985 |
Corporate debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 478,966 | 487,172 |
Commercial agency mortgage-backed securities (“MBS”) | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 7,572 | 7,815 |
U.S. state and municipality debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 29,696 | 27,778 |
Foreign government debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 959 | 967 |
Other asset-backed-securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | $ 41,779 | $ 32,429 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Unrealized loss | $ (5) | $ (3) |
Proceeds for sale of debt investment securities | 0 | 2 |
Realized losses | 0 | |
Realized gains (less than $ 1 million during three months ended August 31, 2021) | 0 | 1 |
Unrealized gain | $ 3 | $ 1 |
Investment Securities - Equity
Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at fair value | $ 36,359 | $ 33,758 |
Noncumulative Preferred Stock | Series C Preferred Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at fair value | 28,000 | 25,520 |
Common Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at fair value | $ 8,359 | $ 8,238 |
Loans - Outstanding Principal B
Loans - Outstanding Principal Balance and Unadvanced Commitments (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 30,674,996 | $ 30,051,354 | $ 28,870,758 |
Deferred loan origination costs | 12,335 | 11,875 | |
Loans to members | $ 30,687,331 | $ 30,063,386 | $ 28,882,633 |
% of total loans outstanding | 100% | 100% | |
Fixed rate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 27,391,075 | $ 26,952,372 | |
% of total loans outstanding | 89% | 90% | |
Long-term variable rate loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 761,370 | $ 820,201 | |
% of total loans outstanding | 3% | 2% | |
Long-term loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 28,152,445 | $ 27,772,573 | |
% of total loans outstanding | 92% | 92% | |
Lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 2,522,551 | $ 2,278,781 | |
% of total loans outstanding | 8% | 8% | |
Deferred loan origination costs—CFC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deferred loan origination costs | $ 12,335 | $ 12,032 | |
% of total loans outstanding | 0% | 0% | |
Parent Company | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 29,477,492 | $ 28,872,875 | |
Deferred loan origination costs | $ 12,000 | $ 12,000 | |
% of total loans outstanding | 96% | 96% | |
Parent Company | Distribution | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 24,244,193 | $ 23,844,242 | |
% of total loans outstanding | 79% | 79% | |
Parent Company | Power supply | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 5,101,682 | $ 4,901,770 | |
% of total loans outstanding | 17% | 17% | |
Parent Company | Statewide and associate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 131,617 | $ 126,863 | |
% of total loans outstanding | 0% | 0% | |
NCSC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 727,869 | $ 710,878 | |
% of total loans outstanding | 2% | 2% | |
RTFC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 469,635 | $ 467,601 | |
% of total loans outstanding | 2% | 2% |
Loans - Additional Information
Loans - Additional Information (Details) | 3 Months Ended | 12 Months Ended | 63 Months Ended | 111 Months Ended | |
Aug. 31, 2022 USD ($) loan power_supply_system borrower state distribution_system | Aug. 31, 2021 USD ($) | May 31, 2022 USD ($) loan borrower state distribution_system power_supply_system | Aug. 31, 2022 USD ($) loan borrower power_supply_system distribution_system | Aug. 31, 2022 USD ($) loan borrower power_supply_system distribution_system | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from sale of loans and leases held-for-investment | $ 113,000,000 | $ 0 | |||
Loans held for sale | 0 | $ 44,000,000 | $ 0 | $ 0 | |
Allowance for credit losses for accrued interest receivable | 105,000,000 | 94,000,000 | 105,000,000 | 105,000,000 | |
Loans to members | $ 30,687,331,000 | 28,882,633,000 | $ 30,063,386,000 | $ 30,687,331,000 | $ 30,687,331,000 |
Number of borrowers | borrower | 881 | 883 | 881 | 881 | |
Number of states in which electric and telecommunications borrowers are located | state | 49 | 49 | |||
Number of loans outstanding | loan | 16,623 | 16,623 | 16,623 | ||
Increase in nonaccrual loans | $ (10,000,000) | ||||
Nonaccrual Loans | 217,810,000 | $ 227,790,000 | $ 217,810,000 | $ 217,810,000 | |
Financing receivable, troubled debt restructuring, commitment to lend | $ 0 | $ 0 | $ 0 | $ 0 | |
% of total loans outstanding | 100% | 100% | 100% | 100% | |
Financing receivable, allowance for credit loss, writeoff | $ 0 | 0 | |||
Term of loans | 35 years | ||||
Loans originated prior to 2019 | $ 17,998,806,000 | $ 17,998,806,000 | $ 17,998,806,000 | ||
Total loans outstanding | $ 30,674,996,000 | $ 28,870,758,000 | $ 30,051,354,000 | $ 30,674,996,000 | $ 30,674,996,000 |
Percentage of loans originated prior to 2019 | 59% | 59% | 59% | ||
Financing receivable, before allowance for credit loss, average remaining maturity | 18 years | ||||
Number of loans outstanding per borrower | loan | 19 | 19 | 19 | ||
Line of credit commitments as percentage of unadvanced loan commitment | 62% | 62% | 62% | ||
Long-term loan commitments as percentage of unadvanced loan commitment | 38% | 38% | 38% | ||
Brazos Sandy Creek | Brazos Sandy Creek Energy Station | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Tenant in common ownership, percentage | 25% | 25% | 25% | ||
Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | $ 113,989,000 | 113,938,000 | $ 113,989,000 | $ 113,989,000 | |
Nonperforming TDR loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing receivable, troubled debt restructuring | 0 | 0 | 0 | 0 | |
Nonperforming financial instruments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 217,810,000 | $ 227,790,000 | $ 217,810,000 | $ 217,810,000 | |
Number of borrowers | borrower | 3 | 3 | 3 | ||
% of total loans outstanding | 0.71% | 0.76% | 0.71% | 0.71% | |
Number of borrowers, nonperforming loans | borrower | 3 | 3 | |||
Criticized | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 492,000,000 | $ 494,000,000 | $ 492,000,000 | $ 492,000,000 | |
% of total loans outstanding | 2% | 2% | 2% | 2% | |
Loans originated prior to 2019 | $ 157,930,000 | $ 157,930,000 | $ 157,930,000 | ||
Total loans outstanding | 491,626,000 | $ 494,373,000 | 491,626,000 | 491,626,000 | |
Special mention | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | 274,000,000 | 267,000,000 | 274,000,000 | 274,000,000 | |
Loans originated prior to 2019 | 25,720,000 | 25,720,000 | 25,720,000 | ||
Total loans outstanding | 273,816,000 | 266,583,000 | 273,816,000 | 273,816,000 | |
Doubtful | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | 218,000,000 | 228,000,000 | 218,000,000 | 218,000,000 | |
Loans originated prior to 2019 | 132,210,000 | 132,210,000 | 132,210,000 | ||
Total loans outstanding | 217,810,000 | 227,790,000 | 217,810,000 | 217,810,000 | |
Substandard | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | 0 | 0 | 0 | 0 | |
Loans originated prior to 2019 | 0 | 0 | 0 | ||
Total loans outstanding | 0 | 0 | 0 | 0 | |
Parent Company | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual Loans | $ 217,810,000 | $ 227,790,000 | $ 217,810,000 | $ 217,810,000 | |
% of total loans outstanding | 96% | 96% | 96% | 96% | |
Total loans outstanding | $ 29,477,492,000 | $ 28,872,875,000 | $ 29,477,492,000 | $ 29,477,492,000 | |
Parent Company | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans outstanding | loan | 2 | 2 | 2 | 2 | |
Total loans outstanding | $ 113,989,000 | $ 113,938,000 | $ 113,989,000 | $ 113,989,000 | |
Parent Company | Special mention | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans originated prior to 2019 | 21,754,000 | 21,754,000 | 21,754,000 | ||
Total loans outstanding | 269,850,000 | 262,491,000 | 269,850,000 | 269,850,000 | |
RTFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual Loans | $ 0 | $ 0 | $ 0 | $ 0 | |
% of total loans outstanding | 2% | 2% | 2% | 2% | |
Financing receivable, allowance for credit loss, writeoff | $ 0 | ||||
Total loans outstanding | $ 469,635,000 | $ 467,601,000 | 469,635,000 | $ 469,635,000 | |
RTFC | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 0 | 0 | 0 | 0 | |
RTFC | Loan defaults | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | 0 | 0 | 0 | ||
RTFC | Special mention | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans originated prior to 2019 | 3,966,000 | 3,966,000 | 3,966,000 | ||
Total loans outstanding | $ 3,966,000 | $ 4,092,000 | $ 3,966,000 | $ 3,966,000 | |
Geographic concentration risk | TEXAS | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of borrowers | borrower | 70 | 68 | 70 | 70 | |
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 to members | $ 0 | $ 0 | $ 0 | ||
Electric utility | Parent Company | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan commitment term | 5 years | ||||
Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of borrowers | borrower | 49 | 49 | 49 | 49 | |
Power supply | Doubtful | One CFC electric power supply borrower | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 104,000,000 | $ 114,000,000 | $ 104,000,000 | $ 104,000,000 | |
Power supply | Parent Company | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual Loans | $ 217,810,000 | $ 227,790,000 | $ 217,810,000 | $ 217,810,000 | |
% of total loans outstanding | 17% | 17% | 17% | 17% | |
Total loans outstanding | $ 5,101,682,000 | $ 4,901,770,000 | $ 5,101,682,000 | $ 5,101,682,000 | |
Power supply | Parent Company | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 113,989,000 | 113,938,000 | 113,989,000 | 113,989,000 | |
Power supply | Parent Company | Brazos electric power cooperative | Nonperforming financial instruments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | 86,000,000 | 86,000,000 | 86,000,000 | 86,000,000 | |
Power supply | Parent Company | Brazos and Brazos Sandy Creek | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | 114,000,000 | 114,000,000 | 114,000,000 | 114,000,000 | |
Power supply | Parent Company | Nonperforming financial instruments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 217,810,000 | $ 227,790,000 | $ 217,810,000 | $ 217,810,000 | |
% of total loans outstanding | 0.71% | 0.76% | 0.71% | 0.71% | |
Financing receivable, number of loans with payments received | loan | 1 | 1 | 1 | ||
Increase (decrease) in finance receivables | $ (10,000,000) | ||||
Number of borrowers, nonperforming loans | borrower | 3 | 3 | |||
Power supply | Parent Company | Nonperforming financial instruments | Brazos and Brazos Sandy Creek | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 114,000,000 | $ 114,000,000 | $ 114,000,000 | $ 114,000,000 | |
Power supply | Parent Company | Doubtful | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans originated prior to 2019 | 132,210,000 | 132,210,000 | 132,210,000 | ||
Total loans outstanding | $ 217,810,000 | 227,790,000 | $ 217,810,000 | $ 217,810,000 | |
Power supply | Geographic concentration risk | TEXAS | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of borrowers | borrower | 8 | 8 | 8 | ||
Distribution | Parent Company | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual Loans | $ 0 | $ 0 | $ 0 | $ 0 | |
% of total loans outstanding | 79% | 79% | 79% | 79% | |
Total loans outstanding | $ 24,244,193,000 | $ 23,844,242,000 | $ 24,244,193,000 | $ 24,244,193,000 | |
Distribution | Parent Company | Total Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total loans outstanding | 0 | 0 | 0 | 0 | |
Distribution | Parent Company | Special mention | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans originated prior to 2019 | 12,872,000 | 12,872,000 | 12,872,000 | ||
Total loans outstanding | 256,003,000 | 248,238,000 | 256,003,000 | 256,003,000 | |
Distribution | Parent Company | Special mention | CFC electric distribution borrower | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 256,000,000 | $ 248,000,000 | $ 256,000,000 | $ 256,000,000 | |
Distribution | Parent Company | Special mention | CFC electric distribution borrower and subsidiary | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of borrowers | borrower | 1 | 1 | 1 | 1 | |
Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | $ 14,174,077,000 | $ 14,111,202,000 | $ 14,174,077,000 | $ 14,174,077,000 | |
Unadvanced commitments | Parent Company | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | 13,344,770,000 | 13,249,577,000 | 13,344,770,000 | 13,344,770,000 | |
Unadvanced commitments | RTFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | 291,419,000 | 309,724,000 | 291,419,000 | 291,419,000 | |
Unadvanced commitments | Power supply | Parent Company | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | 3,825,651,000 | 3,835,535,000 | 3,825,651,000 | 3,825,651,000 | |
Unadvanced commitments | Distribution | Parent Company | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | 9,337,695,000 | 9,230,197,000 | 9,337,695,000 | 9,337,695,000 | |
Commitments to extend credit subject to material adverse change clause | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | 10,969,000,000 | 10,908,000,000 | 10,969,000,000 | 10,969,000,000 | |
Unadvanced commitments not subject to material adverse change clauses | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | 3,204,749,000 | 3,203,000,000 | 3,204,749,000 | 3,204,749,000 | |
Nonperforming financial instruments | Power supply | Parent Company | Brazos Sandy Creek | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | 28,000,000 | 28,000,000 | 28,000,000 | 28,000,000 | |
Financing Receivable, Unsecured | Power supply | Parent Company | Brazos electric power cooperative | Nonperforming financial instruments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | 65,000,000 | 65,000,000 | 65,000,000 | 65,000,000 | |
Financing Receivable, Secured | Power supply | Parent Company | Brazos electric power cooperative | Nonperforming financial instruments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 21,000,000 | $ 21,000,000 | $ 21,000,000 | $ 21,000,000 | |
Variable rate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
% of total loans outstanding | 3% | 2% | 3% | 3% | |
Total loans outstanding | $ 761,370,000 | $ 820,201,000 | $ 761,370,000 | $ 761,370,000 | |
Variable rate | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan commitment term | 5 years | ||||
Unadvanced commitments | $ 5,402,527,000 | 5,357,205,000 | 5,402,527,000 | 5,402,527,000 | |
Loans receivable commercial and industrial | Geographic concentration risk | TEXAS | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 5,207,000,000 | $ 5,104,000,000 | $ 5,207,000,000 | $ 5,207,000,000 | |
Concentration risk, percentage | 17% | 17% | |||
Loans receivable commercial and industrial | Credit concentration risk | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk, number of borrowers | borrower | 20 | 20 | 20 | 20 | |
Loans receivable commercial and industrial | Customer concentration risk | Twenty largest borrowers | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 6,356,000,000 | $ 6,220,000,000 | $ 6,356,000,000 | $ 6,356,000,000 | |
Concentration risk, percentage | 21% | 21% | |||
Concentration risk, number of borrowers | borrower | 20 | 20 | 20 | 20 | |
Loans receivable commercial and industrial | Customer concentration risk | Largest single borrower or controlled group | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk, percentage | 2% | 2% | |||
Loans receivable commercial and industrial | Electric utility | Credit concentration risk | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 30,205,000,000 | $ 29,584,000,000 | $ 30,205,000,000 | $ 30,205,000,000 | |
Loans receivable commercial and industrial | Power supply | Customer concentration risk | Twenty largest borrowers | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk, number of borrowers | power_supply_system | 8 | 8 | 8 | 8 | |
Loans receivable commercial and industrial | Distribution | Customer concentration risk | Twenty largest borrowers | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk, number of borrowers | distribution_system | 12 | 12 | 12 | 12 | |
Loans guaranteed by Farmer Mac | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 462,000,000 | $ 493,000,000 | $ 462,000,000 | $ 462,000,000 | |
Financing receivable, before allowance for credit loss, number of defaults | loan | 0 | 0 | 0 | ||
Financing receivable, before allowance for credit loss, number of defaulted loans purchased | loan | 0 | 0 | 0 | ||
Loans guaranteed by Farmer Mac | Geographic concentration risk | TEXAS | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 161,000,000 | 163,000,000 | $ 161,000,000 | $ 161,000,000 | |
Loans guaranteed by Farmer Mac | Credit concentration risk | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 241,000,000 | $ 316,000,000 | 241,000,000 | 241,000,000 | |
Concentration risk, percentage | 20% | 20% | |||
Loans guaranteed by rural utilities service | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans to members | $ 129,000,000 | $ 131,000,000 | $ 129,000,000 | $ 129,000,000 | |
Loans and finance receivables | Credit concentration risk | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk, percentage | 98% | 98% | |||
Long-term loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
% of total loans outstanding | 92% | 92% | 92% | 92% | |
Total loans outstanding | $ 28,152,445,000 | $ 27,772,573,000 | $ 28,152,445,000 | $ 28,152,445,000 | |
Long-term loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | $ 5,402,527,000 | $ 5,357,205,000 | $ 5,402,527,000 | $ 5,402,527,000 | |
Loans receivable commercial and industrial not covered by Farmer Mac standby repurchase agreement | Geographic concentration risk | TEXAS | Accounts receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk, percentage | 16% | 16% |
Loans - Payment Status of Loans
Loans - Payment Status of Loans Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 |
Payment Status of Loans | |||
Amount | $ 30,674,996 | $ 30,051,354 | $ 28,870,758 |
Nonaccrual Loans | $ 217,810 | $ 227,790 | |
Current (percent) | 99.63% | 99.62% | |
30-89 days past due (in percent) | 0% | 0.09% | |
> 90 days past due (in percent) | 0.37% | 0.29% | |
Total past due (in percent) | 0.37% | 0.38% | |
Total loans outstanding (in percent) | 100% | 100% | |
Nonaccrual loans (in percent) | 0.71% | 0.76% | |
Parent Company | |||
Payment Status of Loans | |||
Amount | $ 29,477,492 | $ 28,872,875 | |
Nonaccrual Loans | 217,810 | 227,790 | |
Parent Company | Distribution | |||
Payment Status of Loans | |||
Amount | 24,244,193 | 23,844,242 | |
Nonaccrual Loans | 0 | 0 | |
Parent Company | Power supply | |||
Payment Status of Loans | |||
Amount | 5,101,682 | 4,901,770 | |
Nonaccrual Loans | 217,810 | 227,790 | |
Parent Company | Statewide and associate | |||
Payment Status of Loans | |||
Amount | 131,617 | 126,863 | |
Nonaccrual Loans | 0 | 0 | |
NCSC | |||
Payment Status of Loans | |||
Amount | 727,869 | 710,878 | |
Nonaccrual Loans | 0 | 0 | |
RTFC | |||
Payment Status of Loans | |||
Amount | 469,635 | 467,601 | |
Nonaccrual Loans | 0 | 0 | |
Current | |||
Payment Status of Loans | |||
Amount | 30,561,007 | 29,937,416 | |
Current | Parent Company | |||
Payment Status of Loans | |||
Amount | 29,363,503 | 28,758,937 | |
Current | Parent Company | Distribution | |||
Payment Status of Loans | |||
Amount | 24,244,193 | 23,844,242 | |
Current | Parent Company | Power supply | |||
Payment Status of Loans | |||
Amount | 4,987,693 | 4,787,832 | |
Current | Parent Company | Statewide and associate | |||
Payment Status of Loans | |||
Amount | 131,617 | 126,863 | |
Current | NCSC | |||
Payment Status of Loans | |||
Amount | 727,869 | 710,878 | |
Current | RTFC | |||
Payment Status of Loans | |||
Amount | 469,635 | 467,601 | |
Total Past Due | |||
Payment Status of Loans | |||
Amount | 113,989 | 113,938 | |
Total Past Due | Parent Company | |||
Payment Status of Loans | |||
Amount | 113,989 | 113,938 | |
Total Past Due | Parent Company | Distribution | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
Total Past Due | Parent Company | Power supply | |||
Payment Status of Loans | |||
Amount | 113,989 | 113,938 | |
Total Past Due | Parent Company | Statewide and associate | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
Total Past Due | NCSC | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
Total Past Due | RTFC | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
30-89 Days Past Due | |||
Payment Status of Loans | |||
Amount | 51 | 28,389 | |
30-89 Days Past Due | Parent Company | |||
Payment Status of Loans | |||
Amount | 51 | 28,389 | |
30-89 Days Past Due | Parent Company | Distribution | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
30-89 Days Past Due | Parent Company | Power supply | |||
Payment Status of Loans | |||
Amount | 51 | 28,389 | |
30-89 Days Past Due | Parent Company | Statewide and associate | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
30-89 Days Past Due | NCSC | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
30-89 Days Past Due | RTFC | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
> 90 Days Past Due | |||
Payment Status of Loans | |||
Amount | 113,938 | 85,549 | |
> 90 Days Past Due | Parent Company | |||
Payment Status of Loans | |||
Amount | 113,938 | 85,549 | |
> 90 Days Past Due | Parent Company | Distribution | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
> 90 Days Past Due | Parent Company | Power supply | |||
Payment Status of Loans | |||
Amount | 113,938 | 85,549 | |
> 90 Days Past Due | Parent Company | Statewide and associate | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
> 90 Days Past Due | NCSC | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
> 90 Days Past Due | RTFC | |||
Payment Status of Loans | |||
Amount | $ 0 | $ 0 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructured Loans (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Aug. 31, 2022 USD ($) borrower | May 31, 2022 USD ($) 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 | $ | $ 8,604 | $ 9,184 |
% of total loans outstanding | 0.03% | 0.03% |
Performing TDR loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 2 | 2 |
Outstanding Amount | $ | $ 8,604 | $ 9,184 |
% of total loans outstanding | 0.03% | 0.03% |
Parent Company | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of total loans outstanding | 96% | 96% |
Parent Company | Distribution | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of total loans outstanding | 79% | 79% |
Parent Company | Total TDR loans | Distribution | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 1 | 1 |
Outstanding Amount | $ | $ 4,638 | $ 5,092 |
% of total loans outstanding | 0.02% | 0.02% |
RTFC | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of total loans outstanding | 2% | 2% |
RTFC | Total TDR loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 1 | 1 |
Outstanding Amount | $ | $ 3,966 | $ 4,092 |
% of total loans outstanding | 0.01% | 0.01% |
Loans - Nonperforming Loans (De
Loans - Nonperforming Loans (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2022 USD ($) borrower | May 31, 2022 USD ($) borrower | Aug. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans to members | $ 30,687,331 | $ 30,063,386 | $ 28,882,633 |
% of Total Loans Outstanding | 100% | 100% | |
Nonperforming financial instruments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Borrowers | borrower | 3 | 3 | |
Loans to members | $ 217,810 | $ 227,790 | |
% of Total Loans Outstanding | 0.71% | 0.76% | |
Parent Company | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
% of Total Loans Outstanding | 96% | 96% | |
Parent Company | Power supply | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
% of Total Loans Outstanding | 17% | 17% | |
Parent Company | Nonperforming financial instruments | Power supply | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Borrowers | borrower | 3 | 3 | |
Loans to members | $ 217,810 | $ 227,790 | |
% of Total Loans Outstanding | 0.71% | 0.76% |
Loans - Internal Risk Rating (D
Loans - Internal Risk Rating (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 |
Credit Quality | |||
YTD Q1 2023 | $ 814,875 | ||
2022 | 3,012,448 | ||
2021 | 2,371,299 | ||
2020 | 2,345,393 | ||
2019 | 1,609,624 | ||
Prior | 17,998,806 | ||
Revolving Loans | 2,522,551 | ||
Total | 30,674,996 | $ 30,051,354 | $ 28,870,758 |
Parent Company | |||
Credit Quality | |||
Total | 29,477,492 | 28,872,875 | |
Parent Company | Distribution | |||
Credit Quality | |||
Total | 24,244,193 | 23,844,242 | |
Parent Company | Power supply | |||
Credit Quality | |||
Total | 5,101,682 | 4,901,770 | |
Parent Company | Statewide and associate | |||
Credit Quality | |||
Total | 131,617 | 126,863 | |
NCSC | |||
Credit Quality | |||
Total | 727,869 | 710,878 | |
RTFC | |||
Credit Quality | |||
Total | 469,635 | 467,601 | |
Pass | |||
Credit Quality | |||
YTD Q1 2023 | 814,875 | ||
2022 | 3,012,448 | ||
2021 | 2,366,438 | ||
2020 | 2,345,393 | ||
2019 | 1,599,581 | ||
Prior | 17,840,876 | ||
Revolving Loans | 2,203,759 | ||
Total | 30,183,370 | 29,556,981 | |
Pass | Parent Company | |||
Credit Quality | |||
YTD Q1 2023 | 791,075 | ||
2022 | 2,873,338 | ||
2021 | 2,243,934 | ||
2020 | 2,071,991 | ||
2019 | 1,585,975 | ||
Prior | 17,366,886 | ||
Revolving Loans | 2,056,633 | ||
Total | 28,989,832 | 28,382,594 | |
Pass | Parent Company | Distribution | |||
Credit Quality | |||
YTD Q1 2023 | 599,475 | ||
2022 | 2,472,643 | ||
2021 | 1,684,739 | ||
2020 | 1,868,407 | ||
2019 | 1,184,184 | ||
Prior | 14,533,691 | ||
Revolving Loans | 1,645,051 | ||
Total | 23,988,190 | 23,596,004 | |
Pass | Parent Company | Power supply | |||
Credit Quality | |||
YTD Q1 2023 | 185,300 | ||
2022 | 366,847 | ||
2021 | 557,006 | ||
2020 | 186,210 | ||
2019 | 398,612 | ||
Prior | 2,814,019 | ||
Revolving Loans | 375,878 | ||
Total | 4,883,872 | 4,673,980 | |
Pass | Parent Company | Statewide and associate | |||
Credit Quality | |||
YTD Q1 2023 | 6,300 | ||
2022 | 33,848 | ||
2021 | 2,189 | ||
2020 | 17,374 | ||
2019 | 3,179 | ||
Prior | 19,176 | ||
Revolving Loans | 35,704 | ||
Total | 117,770 | 112,610 | |
Pass | NCSC | |||
Credit Quality | |||
YTD Q1 2023 | 3,875 | ||
2022 | 48,958 | ||
2021 | 38,989 | ||
2020 | 229,706 | ||
2019 | 3,987 | ||
Prior | 270,736 | ||
Revolving Loans | 131,618 | ||
Total | 727,869 | 710,878 | |
Pass | RTFC | |||
Credit Quality | |||
YTD Q1 2023 | 19,925 | ||
2022 | 90,152 | ||
2021 | 83,515 | ||
2020 | 43,696 | ||
2019 | 9,619 | ||
Prior | 203,254 | ||
Revolving Loans | 15,508 | ||
Total | 465,669 | 463,509 | |
Special mention | |||
Credit Quality | |||
YTD Q1 2023 | 0 | ||
2022 | 0 | ||
2021 | 4,861 | ||
2020 | 0 | ||
2019 | 10,043 | ||
Prior | 25,720 | ||
Revolving Loans | 233,192 | ||
Total | 273,816 | 266,583 | |
Special mention | Parent Company | |||
Credit Quality | |||
YTD Q1 2023 | 0 | ||
2022 | 0 | ||
2021 | 4,861 | ||
2020 | 0 | ||
2019 | 10,043 | ||
Prior | 21,754 | ||
Revolving Loans | 233,192 | ||
Total | 269,850 | 262,491 | |
Special mention | Parent Company | Distribution | |||
Credit Quality | |||
YTD Q1 2023 | 0 | ||
2022 | 0 | ||
2021 | 4,861 | ||
2020 | 0 | ||
2019 | 5,078 | ||
Prior | 12,872 | ||
Revolving Loans | 233,192 | ||
Total | 256,003 | 248,238 | |
Special mention | Parent Company | Statewide and associate | |||
Credit Quality | |||
YTD Q1 2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 4,965 | ||
Prior | 8,882 | ||
Revolving Loans | 0 | ||
Total | 13,847 | 14,253 | |
Special mention | RTFC | |||
Credit Quality | |||
YTD Q1 2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 3,966 | ||
Revolving Loans | 0 | ||
Total | 3,966 | 4,092 | |
Substandard | |||
Credit Quality | |||
YTD Q1 2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total | 0 | 0 | |
Doubtful | |||
Credit Quality | |||
YTD Q1 2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 132,210 | ||
Revolving Loans | 85,600 | ||
Total | 217,810 | 227,790 | |
Doubtful | Parent Company | Power supply | |||
Credit Quality | |||
YTD Q1 2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 132,210 | ||
Revolving Loans | 85,600 | ||
Total | 217,810 | 227,790 | |
Criticized | |||
Credit Quality | |||
YTD Q1 2023 | 0 | ||
2022 | 0 | ||
2021 | 4,861 | ||
2020 | 0 | ||
2019 | 10,043 | ||
Prior | 157,930 | ||
Revolving Loans | 318,792 | ||
Total | $ 491,626 | $ 494,373 |
Loans - Schedule of Unadvanced
Loans - Schedule of Unadvanced Commitments (Details) - Unadvanced commitments - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | $ 14,174,077 | $ 14,111,202 |
Long-term loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 5,402,527 | 5,357,205 |
Fixed rate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 0 | 0 |
Variable rate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 5,402,527 | 5,357,205 |
Lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 8,771,550 | 8,753,997 |
Parent Company | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 13,344,770 | 13,249,577 |
Parent Company | Distribution | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 9,337,695 | 9,230,197 |
Parent Company | Power supply | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 3,825,651 | 3,835,535 |
Parent Company | Statewide and associate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 181,424 | 183,845 |
NCSC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 537,888 | 551,901 |
RTFC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | $ 291,419 | $ 309,724 |
Loans - Available Balance Under
Loans - Available Balance Under Unadvanced Commitments and Maturity (Details) - Unadvanced commitments - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available Balance | $ 14,174,077 | $ 14,111,202 |
2023 | 1,063,650 | |
2024 | 5,737,061 | |
2025 | 2,058,715 | |
2026 | 1,617,284 | |
2027 | 2,926,281 | |
Thereafter | 771,086 | |
Line of credit loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available Balance | 8,771,550 | 8,753,997 |
2023 | 564,791 | |
2024 | 4,406,240 | |
2025 | 1,325,331 | |
2026 | 628,055 | |
2027 | 1,395,791 | |
Thereafter | 451,342 | |
Long-term loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available Balance | 5,402,527 | $ 5,357,205 |
2023 | 498,859 | |
2024 | 1,330,821 | |
2025 | 733,384 | |
2026 | 989,229 | |
2027 | 1,530,490 | |
Thereafter | $ 319,744 |
Loans - Unconditional Committed
Loans - Unconditional Committed Lines of Credit and Maturity (Details) - Unadvanced commitments not subject to material adverse change clauses - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Notional maturities of committed lines of credit | ||
Available Balance | $ 3,204,749 | $ 3,203,000 |
2023 | 188,785 | |
2024 | 374,962 | |
2025 | 858,039 | |
2026 | 457,449 | |
2027 | 1,011,576 | |
Thereafter | $ 313,938 |
Loans - Outstanding Pledged as
Loans - Outstanding Pledged as Collateral (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Pledging of Loans and Loans on Deposit | ||
Cash | $ 8,468 | $ 7,563 |
Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,561,584 | 8,679,250 |
Secured debt | 7,472,711 | 7,072,711 |
Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Secured debt | 25,000 | 25,000 |
Notes payable | Federal financing bank | ||
Pledging of Loans and Loans on Deposit | ||
Secured debt | 6,161,811 | 6,105,473 |
Notes payable | Farmer Mac | ||
Pledging of Loans and Loans on Deposit | ||
Secured debt | 3,021,131 | 3,094,679 |
Clean renewable energy bonds series 2009A | ||
Pledging of Loans and Loans on Deposit | ||
Secured debt | 2,755 | 2,755 |
Cash | 784 | 392 |
Assets pledged as collateral | 3,445 | 3,530 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,448,742 | 8,564,596 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 28,852 | 29,616 |
Mortgage notes | Distribution and power supply system mortgage notes | Farmer Mac | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 3,387,202 | 3,445,358 |
Mortgage notes | Distribution and power supply system mortgage notes | Clean renewable energy bonds series 2009A | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 2,661 | 3,138 |
Loans guaranteed by rural utilities service | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 112,842 | 114,654 |
Mortgage notes receivable on deposit | Distribution and power supply system mortgage notes | Federal financing bank | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | $ 6,846,572 | $ 6,904,591 |
Allowance for Credit Losses - R
Allowance for Credit Losses - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan loss, beginning balance | $ 67,560 | $ 85,532 |
Provision for credit losses | 3,496 | 4,003 |
Allowance for loan loss, ending balance | 71,056 | 89,535 |
Parent Company | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan loss, beginning balance | 64,825 | 79,463 |
Provision for credit losses | 3,249 | 3,797 |
Allowance for loan loss, ending balance | 68,074 | 83,260 |
Parent Company | Distribution | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan loss, beginning balance | 15,781 | 13,426 |
Provision for credit losses | 631 | 1,943 |
Allowance for loan loss, ending balance | 16,412 | 15,369 |
Parent Company | Power supply | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan loss, beginning balance | 47,793 | 64,646 |
Provision for credit losses | 2,550 | 1,823 |
Allowance for loan loss, ending balance | 50,343 | 66,469 |
Parent Company | Statewide and associate | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan loss, beginning balance | 1,251 | 1,391 |
Provision for credit losses | 68 | 31 |
Allowance for loan loss, ending balance | 1,319 | 1,422 |
NCSC | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan loss, beginning balance | 1,449 | 1,374 |
Provision for credit losses | 116 | 81 |
Allowance for loan loss, ending balance | 1,565 | 1,455 |
RTFC | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for loan loss, beginning balance | 1,286 | 4,695 |
Provision for credit losses | 131 | 125 |
Allowance for loan loss, ending balance | $ 1,417 | $ 4,820 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Recorded Investments (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 | May 31, 2021 |
Allowance components: | ||||
Collective allowance | $ 30,079 | $ 28,876 | ||
Asset-specific allowance | 40,977 | 38,684 | ||
Total allowance for credit losses | 71,056 | 67,560 | $ 89,535 | $ 85,532 |
Loans outstanding: | ||||
Collectively evaluated loans | 30,448,582 | 29,814,380 | ||
Individually evaluated loans | 226,414 | 236,974 | ||
Total | $ 30,674,996 | $ 30,051,354 | 28,870,758 | |
Financing receivable, allowance for coverage ratios | 0.23% | 0.22% | ||
Deferred loan origination costs | $ 12,335 | 11,875 | ||
Collective allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 0.10% | 0.10% | ||
Asset-specific allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 18.10% | 16.32% | ||
Parent Company | ||||
Allowance components: | ||||
Collective allowance | $ 27,472 | $ 26,387 | ||
Asset-specific allowance | 40,602 | 38,438 | ||
Total allowance for credit losses | 68,074 | 64,825 | 83,260 | 79,463 |
Loans outstanding: | ||||
Collectively evaluated loans | 29,255,044 | 28,639,993 | ||
Individually evaluated loans | 222,448 | 232,882 | ||
Total | $ 29,477,492 | $ 28,872,875 | ||
Financing receivable, allowance for coverage ratios | 0.23% | 0.22% | ||
Deferred loan origination costs | $ 12,000 | $ 12,000 | ||
Parent Company | Collective allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 0.09% | 0.09% | ||
Parent Company | Asset-specific allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 18.25% | 16.51% | ||
Parent Company | Distribution | ||||
Allowance components: | ||||
Collective allowance | $ 16,412 | $ 15,781 | ||
Asset-specific allowance | 0 | 0 | ||
Total allowance for credit losses | 16,412 | 15,781 | 15,369 | 13,426 |
Loans outstanding: | ||||
Collectively evaluated loans | 24,239,555 | 23,839,150 | ||
Individually evaluated loans | 4,638 | 5,092 | ||
Total | $ 24,244,193 | $ 23,844,242 | ||
Financing receivable, allowance for coverage ratios | 0.07% | 0.07% | ||
Parent Company | Distribution | Collective allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 0.07% | 0.07% | ||
Parent Company | Distribution | Asset-specific allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 0% | 0% | ||
Parent Company | Power supply | ||||
Allowance components: | ||||
Collective allowance | $ 9,741 | $ 9,355 | ||
Asset-specific allowance | 40,602 | 38,438 | ||
Total allowance for credit losses | 50,343 | 47,793 | 66,469 | 64,646 |
Loans outstanding: | ||||
Collectively evaluated loans | 4,883,872 | 4,673,980 | ||
Individually evaluated loans | 217,810 | 227,790 | ||
Total | $ 5,101,682 | $ 4,901,770 | ||
Financing receivable, allowance for coverage ratios | 0.99% | 0.98% | ||
Parent Company | Power supply | Collective allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 0.20% | 0.20% | ||
Parent Company | Power supply | Asset-specific allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 18.64% | 16.87% | ||
Parent Company | Statewide and associate | ||||
Allowance components: | ||||
Collective allowance | $ 1,319 | $ 1,251 | ||
Asset-specific allowance | 0 | 0 | ||
Total allowance for credit losses | 1,319 | 1,251 | 1,422 | 1,391 |
Loans outstanding: | ||||
Collectively evaluated loans | 131,617 | 126,863 | ||
Individually evaluated loans | 0 | 0 | ||
Total | $ 131,617 | $ 126,863 | ||
Financing receivable, allowance for coverage ratios | 1% | 0.99% | ||
Parent Company | Statewide and associate | Collective allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 1% | 0.99% | ||
Parent Company | Statewide and associate | Asset-specific allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 0% | 0% | ||
NCSC | ||||
Allowance components: | ||||
Collective allowance | $ 1,565 | $ 1,449 | ||
Asset-specific allowance | 0 | 0 | ||
Total allowance for credit losses | 1,565 | 1,449 | 1,455 | 1,374 |
Loans outstanding: | ||||
Collectively evaluated loans | 727,869 | 710,878 | ||
Individually evaluated loans | 0 | 0 | ||
Total | $ 727,869 | $ 710,878 | ||
Financing receivable, allowance for coverage ratios | 0.22% | 0.20% | ||
NCSC | Collective allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 0.22% | 0.20% | ||
NCSC | Asset-specific allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 0% | 0% | ||
RTFC | ||||
Allowance components: | ||||
Collective allowance | $ 1,042 | $ 1,040 | ||
Asset-specific allowance | 375 | 246 | ||
Total allowance for credit losses | 1,417 | 1,286 | $ 4,820 | $ 4,695 |
Loans outstanding: | ||||
Collectively evaluated loans | 465,669 | 463,509 | ||
Individually evaluated loans | 3,966 | 4,092 | ||
Total | $ 469,635 | $ 467,601 | ||
Financing receivable, allowance for coverage ratios | 0.30% | 0.28% | ||
RTFC | Collective allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 0.22% | 0.22% | ||
RTFC | Asset-specific allowance | ||||
Loans outstanding: | ||||
Financing receivable, allowance for coverage ratios | 9.46% | 6.01% |
Allowance for Credit Losses - A
Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 | May 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Allowance for loan loss, rounded amount | $ 71,000 | |||
Allowance for loan loss | $ 71,056 | $ 67,560 | $ 89,535 | $ 85,532 |
Financing receivable, allowance for coverage ratios | 0.23% | 0.22% | ||
Allowance for credit loss, period increase (decrease) | $ 3,000 | |||
Credit reserve for unadvanced loan commitments (less than) | $ 1,000 | $ 1,000 | ||
Collective allowance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing receivable, allowance for coverage ratios | 0.10% | 0.10% | ||
Allowance for credit loss, period increase (decrease) | $ 1,000 | |||
Asset-specific allowance | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Financing receivable, allowance for coverage ratios | 18.10% | 16.32% | ||
Allowance for credit loss, period increase (decrease) | $ 2,000 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Aug. 31, 2022 USD ($) facility | May 31, 2022 USD ($) | |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 5,270,826,000 | $ 4,981,167,000 |
Number of active facilities | facility | 2 | |
Short-term debt | ||
Short-term Debt [Line Items] | ||
Debt instrument, term (in years) | 1 year | |
Short-term debt | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 18% | 17% |
Revolving credit agreements | ||
Short-term Debt [Line Items] | ||
Total Commitment | $ 2,600,000,000 | |
Letter of credit, maximum amount available | $ 300,000,000 | |
Revolving credit agreements | Three-year agreement | ||
Short-term Debt [Line Items] | ||
Debt instrument, term (in years) | 3 years | |
Total Commitment | $ 1,245,000,000 | |
Revolving credit agreements | Five-year agreement | ||
Short-term Debt [Line Items] | ||
Debt instrument, term (in years) | 5 years | |
Total Commitment | $ 1,355,000,000 |
Short-Term Borrowings - Outstan
Short-Term Borrowings - Outstanding (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Aug. 31, 2022 | May 31, 2022 | |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 5,270,826 | $ 4,981,167 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 2,667,027 | $ 2,382,882 |
Commercial paper | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 9% | 9% |
Commercial paper dealers, net of discounts | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 1,278,986 | $ 1,024,813 |
Commercial paper dealers, net of discounts | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 4% | 4% |
Commercial paper members, at par | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 1,388,041 | $ 1,358,069 |
Commercial paper members, at par | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 5% | 5% |
Select notes to members | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 1,712,778 | $ 1,753,441 |
Select notes to members | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 6% | 6% |
Daily liquidity fund notes to members | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 481,078 | $ 427,790 |
Daily liquidity fund notes to members | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 2% | 1% |
Medium-term notes to members | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 409,943 | $ 417,054 |
Medium-term notes to members | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 1% | 1% |
Short-term debt | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 18% | 17% |
Short-Term Borrowings - Commitm
Short-Term Borrowings - Commitments under Revolving Credit Agreements (Details) - Revolving credit agreements | 3 Months Ended |
Aug. 31, 2022 USD ($) | |
Revolving Credit Agreements | |
Total Commitment | $ 2,600,000,000 |
Letters of Credit Outstanding | 3,000,000 |
Available Amount | $ 2,597,000,000 |
Three-year agreement maturing on Nov 28, 2024 | |
Revolving Credit Agreements | |
Debt instrument, term (in years) | 3 years |
Total Commitment | $ 1,245,000,000 |
Letters of Credit Outstanding | 0 |
Available Amount | $ 1,245,000,000 |
Maturity | Nov. 28, 2024 |
Annual facility fee | 750% |
Five-year agreement maturing on Nov 28, 2025 | |
Revolving Credit Agreements | |
Debt instrument, term (in years) | 5 years |
Total Commitment | $ 1,355,000,000 |
Letters of Credit Outstanding | 3,000,000 |
Available Amount | $ 1,352,000,000 |
Maturity | Nov. 28, 2025 |
Annual facility fee | 1,000% |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Long-term debt | ||
Long-term debt | $ 21,867,456 | $ 21,545,440 |
Collateral trust bonds | ||
Long-term debt | ||
Long-term debt, gross | 7,497,711 | 7,097,711 |
Unamortized discount | (214,813) | (216,608) |
Debt issuance costs | (34,472) | (32,613) |
Long-term debt | 7,248,426 | 6,848,490 |
Guaranteed Underwriter Program notes payable | ||
Long-term debt | ||
Long-term debt | 6,161,811 | 6,105,473 |
Farmer Mac notes payable | ||
Long-term debt | ||
Long-term debt | 3,021,131 | 3,094,679 |
Other secured notes payable | ||
Long-term debt | ||
Long-term debt, gross | 2,755 | 2,755 |
Debt issuance costs | (7) | (9) |
Long-term debt | 2,748 | 2,746 |
Notes payable | ||
Long-term debt | ||
Long-term debt | 9,185,690 | 9,202,898 |
Secured debt | ||
Long-term debt | ||
Long-term debt | 16,434,116 | 16,051,388 |
Medium-term notes sold through dealers | ||
Long-term debt | ||
Long-term debt, gross | 5,191,007 | 5,263,496 |
Medium-term notes sold to members | ||
Long-term debt | ||
Long-term debt, gross | 260,570 | 250,397 |
Medium term notes sold through dealers and to members | ||
Long-term debt | ||
Long-term debt, gross | 5,451,577 | 5,513,893 |
Unamortized discount | (1,932) | (2,086) |
Debt issuance costs | (18,278) | (19,723) |
Long-term debt | 5,431,367 | 5,492,084 |
Other unsecured notes payable | ||
Long-term debt | ||
Long-term debt, gross | 1,979 | 1,979 |
Unamortized discount | (5) | (10) |
Debt issuance costs | (1) | (1) |
Total other unsecured notes payable | ||
Long-term debt | ||
Long-term debt | 1,973 | 1,968 |
Unsecured debt | ||
Long-term debt | ||
Long-term debt | $ 5,433,340 | $ 5,494,052 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2022 | May 31, 2022 | Aug. 17, 2022 | |
Long-term debt | |||
Long-term debt | $ 21,867,456,000 | $ 21,545,440,000 | |
Debt | Credit availability concentration risk | Long-term debt | |||
Long-term debt | |||
Concentration risk, percentage | 74% | 75% | |
Farmer Mac | |||
Long-term debt | |||
Maximum borrowing capacity | $ 6,000,000,000 | ||
Debt instrument, renewal term | 1 year | ||
Debt instrument, termination written notice, term | 425 days | ||
Farmer Mac | Farmer Mac notes payable | |||
Long-term debt | |||
Long-term debt | $ 3,021,000,000 | ||
Available under committed loan facilities | 2,979,000,000 | ||
Proceeds from notes payable | 200,000,000 | ||
Secured debt | |||
Long-term debt | |||
Long-term debt | $ 16,434,116,000 | $ 16,051,388,000 | |
Secured debt | Debt | Credit availability concentration risk | |||
Long-term debt | |||
Concentration risk, percentage | 75% | 75% | |
Collateral trust bonds | |||
Long-term debt | |||
Long-term debt | $ 7,248,426,000 | $ 6,848,490,000 | |
Collateral trust bonds | 2.75% collateral trust bonds | |||
Long-term debt | |||
Debt instrument, face amount | $ 400,000,000 | ||
Stated interest rate | 4.15% | ||
Guaranteed Underwriter Program notes payable | |||
Long-term debt | |||
Long-term debt | 6,161,811,000 | 6,105,473,000 | |
Available under committed loan facilities | $ 975,000,000 | ||
Maximum percentage of patronage capital distribution allowed | 5% | ||
Guaranteed Underwriter Program notes payable | Committed loan facility | |||
Long-term debt | |||
Proceeds from issuance of long-term debt | $ 100,000,000 | ||
Repayments of notes payable | 44,000,000 | ||
Unsecured debt | |||
Long-term debt | |||
Long-term debt | $ 5,433,340,000 | $ 5,494,052,000 | |
Unsecured debt | Debt | Credit availability concentration risk | |||
Long-term debt | |||
Concentration risk, percentage | 25% | 25% |
Subordinated Deferrable Debt (D
Subordinated Deferrable Debt (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Subordinated Debt [Abstract] | ||
Subordinated deferrable debt | $ 986,571 | $ 986,518 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Derivative Notional Amounts and Weighted-Average Rate (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Derivative [Line Items] | ||
Notional Amount | $ 7,979,761 | $ 8,061,631 |
Pay-fixed swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 5,999,761 | $ 5,957,631 |
Weighted- Average Rate Paid | 2.60% | 2.60% |
Weighted- Average Rate Received | 2.66% | 1.24% |
Receive-fixed swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,980,000 | $ 1,980,000 |
Weighted- Average Rate Paid | 3.25% | 1.53% |
Weighted- Average Rate Received | 2.86% | 2.86% |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 7,979,761 | $ 7,937,631 |
Weighted- Average Rate Paid | 2.76% | 2.33% |
Weighted- Average Rate Received | 2.71% | 1.64% |
Forward pay-fixed swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 0 | $ 124,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Aug. 31, 2022 USD ($) derivative member | May 31, 2022 USD ($) derivative | |
Derivative [Line Items] | ||
Number of counterparties subject to ratings trigger and early termination provision | member | 1 | |
Derivative, notional amount | $ 7,979,761 | $ 8,061,631 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of derivatives designated as accounting hedges | derivative | 0 | 0 |
Interest rate contracts and treasury lock | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 231,000 | |
Unrealized loss position | 17,000 | |
Interest rate swaps and treasury lock | ||
Derivative [Line Items] | ||
Net liability position | $ 12,000 | |
Interest rate swaps and treasury lock | Derivative | Counterparty exposure risk | ||
Derivative [Line Items] | ||
Concentration risk, percentage | 24% | 24% |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Balance Sheet Impact (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Derivative [Line Items] | ||
Derivative assets | $ 328,285 | $ 222,042 |
Derivative liabilities | 130,242 | 128,282 |
Derivative asset, notional amount | 5,173,831 | 4,791,699 |
Derivative liability, notional amount | 2,805,930 | 3,269,932 |
Notional Amount | 7,979,761 | 8,061,631 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative assets | 328,285 | 222,042 |
Derivative liabilities | 130,242 | 128,282 |
Derivative asset, notional amount | 5,173,831 | 4,791,699 |
Derivative liability, notional amount | 2,805,930 | 3,269,932 |
Notional Amount | 7,979,761 | 7,937,631 |
Forward pay-fixed swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 0 | $ 124,000 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Derivatives Offsetting (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Derivative [Line Items] | ||
Derivative asset, fair value, amount not offset against collateral | $ 328,285 | $ 222,042 |
Derivative liability, fair value, amount not offset against collateral | 130,242 | 128,282 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, fair value, gross asset | 328,285 | 222,042 |
Derivative asset, fair value, gross liability | 0 | 0 |
Derivative asset, fair value, amount not offset against collateral | 328,285 | 222,042 |
Derivative, collateral, obligation to return securities | 119,410 | 103,228 |
Derivative, collateral, obligation to return cash | 0 | 0 |
Derivative asset, fair value, amount offset against collateral | 208,875 | 118,814 |
Derivative liability, fair value, gross liability | 130,242 | 128,282 |
Derivative liability, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, amount not offset against collateral | 130,242 | 128,282 |
Derivative, collateral, right to reclaim securities | 119,410 | 103,228 |
Derivative, collateral, right to reclaim cash | 0 | 0 |
Derivative liability, fair value, amount offset against collateral | $ 10,832 | $ 25,054 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Income Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Derivative [Line Items] | ||
Derivative cash settlements interest expense | $ 0 | $ 0 |
Derivative forward value gains (losses) | 104,372 | (144,600) |
Derivative gains (losses) | 93,587 | (172,163) |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative cash settlements interest expense | (10,785) | (27,563) |
Derivative forward value gains (losses) | 104,372 | (144,600) |
Derivative gains (losses) | $ 93,587 | $ (172,163) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Rating Triggers (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Derivative [Line Items] | ||
Notional Amount | $ 7,979,761 | $ 8,061,631 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 5,813,296 | |
Payable Due from CFC | (12,301) | |
Receivable Due to CFC | 142,964 | |
Net Receivable (Payable) | 130,663 | |
Moody's, A3 Rating Standard Poor's A- Rating | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 36,110 | |
Payable Due from CFC | (2,944) | |
Receivable Due to CFC | 0 | |
Net Receivable (Payable) | (2,944) | |
Moodys Baa 1 Rating Standard Poor's BBB Plus Rating | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 5,454,822 | |
Payable Due from CFC | (9,357) | |
Receivable Due to CFC | 131,658 | |
Net Receivable (Payable) | 122,301 | |
Moody's Baa 2 Rating Standard Poor's BBB Rating | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 322,364 | |
Payable Due from CFC | 0 | |
Receivable Due to CFC | 11,306 | |
Net Receivable (Payable) | $ 11,306 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Jul. 31, 2022 | Aug. 31, 2022 | Aug. 31, 2021 | May 31, 2022 | May 31, 2021 | |
Stockholder's Equity [Line Items] | ||||||
Equity increase (decrease) | $ 105,000 | |||||
Equity | 2,246,935 | $ 1,254,220 | $ 2,141,969 | $ 1,399,879 | ||
Patronage capital retirement | 58,892 | 57,565 | ||||
Net income (loss) | 161,874 | (90,332) | ||||
Cash Flow Hedging | ||||||
Stockholder's Equity [Line Items] | ||||||
Expected reclassification from AOCI over 12 months | 1,000 | |||||
Retained earnings allocation to patronage capital retirement | ||||||
Stockholder's Equity [Line Items] | ||||||
Equity | 896,096 | 866,405 | 954,988 | 923,970 | ||
Patronage capital retirement | 58,892 | 57,565 | ||||
Retained earnings allocation to cooperative education fund | ||||||
Stockholder's Equity [Line Items] | ||||||
Equity | 3,052 | 2,756 | 3,387 | 3,125 | ||
Retained earnings allocation to members' capital reserve | ||||||
Stockholder's Equity [Line Items] | ||||||
Equity | $ 1,062,286 | $ 909,749 | 1,062,286 | $ 909,749 | ||
Parent Company | Retained earnings allocation to patronage capital retirement | ||||||
Stockholder's Equity [Line Items] | ||||||
Net income (loss) | $ 89,000 | |||||
Parent Company | Retained earnings allocation to cooperative education fund | ||||||
Stockholder's Equity [Line Items] | ||||||
Net income (loss) | $ 1,000 | |||||
Parent Company | Retained earnings allocation to members' capital reserve | ||||||
Stockholder's Equity [Line Items] | ||||||
Net income (loss) | 153,000 | |||||
Parent Company | Retained earnings allocation of 50% of prior year patronage capital allocation | ||||||
Stockholder's Equity [Line Items] | ||||||
Net income (loss) | $ 44,000 | |||||
Percentage of patronage capital allocation | 50% | |||||
Parent Company | Retained earnings allocation held for twenty five years | ||||||
Stockholder's Equity [Line Items] | ||||||
Net income (loss) | $ 15,000 | |||||
Period for which prior years allocated patronage capital is required to be held | 25 years | |||||
Parent Company | Retained earnings, appropriated patronage capital allocated and retired | ||||||
Stockholder's Equity [Line Items] | ||||||
Net income (loss) | $ 59,000 | |||||
Parent Company | Retained earnings, appropriated patronage capital allocated and retired | Subsequent Event | ||||||
Stockholder's Equity [Line Items] | ||||||
Patronage refunds | $ 59,000 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
AOCI, Net of Tax | ||
Beginning balance | $ 2,141,969 | $ 1,399,879 |
Changes in unrealized gains | 0 | 416 |
Realized (gains) losses reclassified to earnings | (89) | (26) |
Ending balance | 2,246,935 | 1,254,220 |
Total | ||
AOCI, Net of Tax | ||
Beginning balance | 2,258 | (25) |
Ending balance | 2,169 | 365 |
Unrealized Gains on Derivative Hedges | ||
AOCI, Net of Tax | ||
Beginning balance | 5,123 | 1,718 |
Changes in unrealized gains | 0 | 416 |
Realized (gains) losses reclassified to earnings | (189) | (97) |
Ending balance | 4,934 | 2,037 |
Unrealized Losses on Defined Benefit Plans | ||
AOCI, Net of Tax | ||
Beginning balance | (2,865) | (1,743) |
Changes in unrealized gains | 0 | 0 |
Realized (gains) losses reclassified to earnings | 100 | 71 |
Ending balance | $ (2,765) | $ (1,672) |
Guarantees - Guarantees Outstan
Guarantees - Guarantees Outstanding (Details) - USD ($) | Aug. 31, 2022 | May 31, 2022 |
Guarantees | ||
Guarantor obligations | $ 770,641,000 | $ 730,783,000 |
Parent Company | ||
Guarantees | ||
Guarantor obligations | 741,724,000 | 706,813,000 |
Parent Company | Distribution | ||
Guarantees | ||
Guarantor obligations | 324,363,000 | 314,925,000 |
Parent Company | Power supply | ||
Guarantees | ||
Guarantor obligations | 403,463,000 | 378,516,000 |
Parent Company | Statewide and associate | ||
Guarantees | ||
Guarantor obligations | 13,898,000 | 13,372,000 |
NCSC | ||
Guarantees | ||
Guarantor obligations | 28,917,000 | 23,970,000 |
Variable interest entity, primary beneficiary | ||
Guarantees | ||
Guarantor obligations | 28,917,000 | 23,970,000 |
Variable interest entity, primary beneficiary | Statewide and associate | ||
Guarantees | ||
Guarantor obligations | 12,000,000 | 11,000,000 |
Long-term tax-exempt bonds | ||
Guarantees | ||
Guarantor obligations | 121,450,000 | 122,150,000 |
Letters of credit | ||
Guarantees | ||
Guarantor obligations | 490,177,000 | 450,354,000 |
Other guarantees | ||
Guarantees | ||
Guarantor obligations | 159,014,000 | $ 158,279,000 |
Master letter of credit | Hybrid letter of credit | ||
Guarantees | ||
Maximum additional amount potentially required to be issued | $ 31,000,000 |
Guarantees - Additional Informa
Guarantees - Additional Information (Details) - USD ($) | Aug. 31, 2022 | May 31, 2022 |
Guarantees | ||
Guarantor obligations | $ 770,641,000 | $ 730,783,000 |
Guarantee obligations unsecured | $ 485,000,000 | $ 466,000,000 |
Percentage of total commitment | 63% | 64% |
Guarantee liability recorded | $ 12,000,000 | $ 13,000,000 |
Guaranty liabilities | 12,000,000 | 12,000,000 |
Long-term tax-exempt bonds | ||
Guarantees | ||
Guarantor obligations | 121,450,000 | 122,150,000 |
Letters of credit | ||
Guarantees | ||
Guarantor obligations | 490,177,000 | 450,354,000 |
Guarantee obligations secured | 139,000,000 | 118,000,000 |
Master letter of credit | Master letter of credit | ||
Guarantees | ||
Maximum additional amount potentially required to be issued | 97,000,000 | |
Other guarantees | ||
Guarantees | ||
Guarantor obligations | 159,014,000 | 158,279,000 |
Guarantor obligations, maximum exposure, undiscounted | 159,000,000 | 158,000,000 |
Other secured guarantees | ||
Guarantees | ||
Guarantor obligations, maximum exposure, undiscounted | 25,000,000 | 25,000,000 |
Financial standby letter of credit | Adjustable and floating rate tax exempt bonds | ||
Guarantees | ||
Guarantor obligations | $ 0 | $ 0 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 |
Assets: | |||
Cash and cash equivalents | $ 232,084 | $ 153,551 | |
Cash and cash equivalents | 232,084 | 153,551 | |
Restricted cash | 8,468 | 7,563 | |
Equity securities, at fair value | 36,359 | 33,758 | |
Debt securities trading, at fair value | 561,972 | 566,146 | |
Deferred compensation investments | 6,514 | 6,710 | |
Loans to members, net | 30,616,275 | 29,995,826 | $ 28,793,098 |
Loans to members, net | 28,590,435 | 28,595,111 | |
Accrued interest receivable | 131,756 | 111,418 | |
Accrued interest receivable | 131,756 | 111,418 | |
Derivative assets | 328,285 | 222,042 | |
Total financial assets | 31,921,713 | 31,097,014 | |
Total financial assets | 29,895,873 | 29,696,299 | |
Liabilities: | |||
Short-term borrowings | 5,270,826 | 4,981,167 | |
Short-term borrowings | 5,269,268 | 4,978,580 | |
Long-term debt | 21,867,456 | 21,545,440 | |
Long-term debt | 20,982,591 | 21,106,750 | |
Accrued interest payable | 198,922 | 131,950 | |
Guarantee liability | 12,232 | 12,764 | |
Guarantee liability | 11,973 | 13,083 | |
Derivative liabilities | 130,242 | 128,282 | |
Subordinated deferrable debt | 986,571 | 986,518 | |
Subordinated deferrable debt | 941,400 | 960,869 | |
Members’ subordinated certificates | 1,236,528 | 1,234,161 | |
Members’ subordinated certificates | 1,236,528 | 1,234,161 | |
Total financial liabilities | 29,702,777 | 29,020,282 | |
Total financial liabilities | 28,770,924 | 28,553,675 | |
Level 1 | |||
Assets: | |||
Cash and cash equivalents | 232,084 | 153,551 | |
Restricted cash | 8,468 | 7,563 | |
Equity securities, at fair value | 36,359 | 33,758 | |
Debt securities trading, at fair value | 0 | 0 | |
Deferred compensation investments | 6,514 | 6,710 | |
Loans to members, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Derivative assets | 0 | 0 | |
Total financial assets | 283,425 | 201,582 | |
Liabilities: | |||
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 | 243,300 | 250,800 | |
Members’ subordinated certificates | 0 | 0 | |
Total financial liabilities | 243,300 | 250,800 | |
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 | 561,972 | 566,146 | |
Deferred compensation investments | 0 | 0 | |
Loans to members, net | 0 | 0 | |
Accrued interest receivable | 131,756 | 111,418 | |
Derivative assets | 328,285 | 222,042 | |
Total financial assets | 1,022,013 | 899,606 | |
Liabilities: | |||
Short-term borrowings | 5,269,268 | 4,978,580 | |
Long-term debt | 12,337,848 | 12,248,695 | |
Accrued interest payable | 198,922 | 131,950 | |
Guarantee liability | 0 | 0 | |
Derivative liabilities | 130,242 | 128,282 | |
Subordinated deferrable debt | 698,100 | 710,069 | |
Members’ subordinated certificates | 0 | 0 | |
Total financial liabilities | 18,634,380 | 18,197,576 | |
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 | 28,590,435 | 28,595,111 | |
Accrued interest receivable | 0 | 0 | |
Derivative assets | 0 | 0 | |
Total financial assets | 28,590,435 | 28,595,111 | |
Liabilities: | |||
Short-term borrowings | 0 | 0 | |
Long-term debt | 8,644,743 | 8,858,055 | |
Accrued interest payable | 0 | 0 | |
Guarantee liability | 11,973 | 13,083 | |
Derivative liabilities | 0 | 0 | |
Subordinated deferrable debt | 0 | 0 | |
Members’ subordinated certificates | 1,236,528 | 1,234,161 | |
Total financial liabilities | $ 9,893,244 | $ 10,105,299 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | $ 36,359 | $ 33,758 |
Debt securities trading, at fair value | 561,972 | 566,146 |
Deferred compensation investments | 6,514 | 6,710 |
Derivative assets | 328,285 | 222,042 |
Derivative liabilities | 130,242 | 128,282 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 36,359 | 33,758 |
Debt securities trading, at fair value | 0 | 0 |
Deferred compensation investments | 6,514 | 6,710 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
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 | 561,972 | 566,146 |
Deferred compensation investments | 0 | 0 |
Derivative assets | 328,285 | 222,042 |
Derivative liabilities | 130,242 | 128,282 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 36,359 | 33,758 |
Debt securities trading, at fair value | 561,972 | 566,146 |
Deferred compensation investments | 6,514 | 6,710 |
Derivative assets | 328,285 | 222,042 |
Derivative liabilities | 130,242 | 128,282 |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 36,359 | 33,758 |
Debt securities trading, at fair value | 0 | 0 |
Deferred compensation investments | 6,514 | 6,710 |
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 | 561,972 | 566,146 |
Deferred compensation investments | 0 | 0 |
Derivative assets | 328,285 | 222,042 |
Derivative liabilities | $ 130,242 | $ 128,282 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | $ 29,895,873,000 | $ 29,696,299,000 | |
Total financial liabilities | 28,770,924,000 | 28,553,675,000 | |
Loans to members | 30,687,331,000 | 30,063,386,000 | $ 28,882,633,000 |
Loans, fair value | 28,590,435,000 | 28,595,111,000 | |
Nonperforming financial instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans to members | 217,810,000 | 227,790,000 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 28,590,435,000 | 28,595,111,000 | |
Total financial liabilities | 9,893,244,000 | 10,105,299,000 | |
Loans, fair value | 28,590,435,000 | $ 28,595,111,000 | |
Level 3 | Recurring basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Total financial liabilities | $ 0 | $ 0 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) | Aug. 31, 2022 USD ($) vote |
Revolving credit agreements | |
Variable Interest Entity [Line Items] | |
Variable interest entity, maximum borrowing capacity | $ 2,600,000,000 |
Variable interest entity, primary beneficiary | |
Variable Interest Entity [Line Items] | |
Maximum potential exposure credit enhancements | $ 32,000,000 |
Variable interest entity, primary beneficiary | NCSC | |
Variable Interest Entity [Line Items] | |
Number of directors for whom nomination process is controlled | vote | 1 |
Number of votes per member for election of directors | vote | 1 |
Variable interest entity, primary beneficiary | NCSC | Revolving credit agreements | |
Variable Interest Entity [Line Items] | |
Variable interest entity, maximum borrowing capacity | $ 1,500,000,000 |
Variable interest entity, primary beneficiary | NCSC | Revolving term loan | |
Variable Interest Entity [Line Items] | |
Variable interest entity, maximum borrowing capacity | $ 1,500,000,000 |
Variable interest entity, primary beneficiary | RTFC | |
Variable Interest Entity [Line Items] | |
Number of votes per member for election of directors | vote | 1 |
Variable interest entity, primary beneficiary | RTFC | Revolving credit agreements | |
Variable Interest Entity [Line Items] | |
Variable interest entity, maximum borrowing capacity | $ 1,000,000,000 |
Variable interest entity, primary beneficiary | RTFC | Revolving term loan | |
Variable Interest Entity [Line Items] | |
Variable interest entity, maximum borrowing capacity | $ 1,500,000,000 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated Assets and Liabilities of VIEs included in CFCs Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 | Aug. 31, 2021 |
Variable Interest Entity [Line Items] | |||
Other assets | $ 27,504 | $ 23,885 | |
Total assets | 32,082,294 | 31,251,382 | $ 30,091,747 |
Total liabilities | 29,835,359 | 29,109,413 | |
Variable interest entity, primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Loans outstanding | 1,197,504 | 1,178,479 | |
Other assets | 9,725 | 9,672 | |
Total assets | 1,207,229 | 1,188,151 | |
Total liabilities | $ 21,616 | $ 22,958 |
Variable Interest Entities - In
Variable Interest Entities - Information on CFCs Credit Commitments to NCSC and RTFC (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | May 31, 2022 |
Variable Interest Entity [Line Items] | ||
CFC third-party guarantees | $ 770,641 | $ 730,783 |
Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total CFC credit commitments | 5,500,000 | 5,500,000 |
Borrowings payable to CFC | 1,178,810 | 1,158,583 |
CFC third-party guarantees | 28,917 | 23,970 |
Other credit enhancements | 3,080 | 4,044 |
Total credit enhancements | 31,997 | 28,014 |
Total outstanding commitments | 1,210,807 | 1,186,597 |
CFC credit commitments available | $ 4,289,193 | $ 4,313,403 |
Business Segments - Segment Res
Business Segments - Segment Results and Total Assets (Details) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2022 USD ($) segment | Aug. 31, 2021 USD ($) | May 31, 2022 USD ($) | May 31, 2021 USD ($) | |
Segment Information | ||||
Number of operating segments | segment | 3 | |||
Statement of operations: | ||||
Interest income | $ 306,978 | $ 283,268 | ||
Interest expense | (209,468) | (174,777) | ||
Derivative cash settlements interest expense | 0 | 0 | ||
Interest expense | (209,468) | (174,777) | ||
Net interest income | 97,510 | 108,491 | ||
Provision for credit losses | (3,496) | (4,003) | ||
Net interest income after provision for credit losses | 94,014 | 104,488 | ||
Non-interest income: | ||||
Fee and other income | 4,056 | 3,941 | ||
Derivative forward value gains (losses) | 104,372 | (144,600) | ||
Derivative gains (losses) | 93,587 | (172,163) | ||
Investment securities losses | (3,679) | (2,225) | ||
Total non-interest income | 93,964 | (170,447) | ||
Non-interest expense: | ||||
General and administrative expenses | (25,519) | (24,210) | ||
Other non-interest expense | (322) | (256) | ||
Total non-interest expense | (25,841) | (24,466) | ||
Income (loss) before income taxes | 162,137 | (90,425) | ||
Income tax benefit (provision) | (263) | 93 | ||
Net income (loss) | 161,874 | (90,332) | ||
Assets: | ||||
Total loans outstanding | 30,674,996 | 28,870,758 | $ 30,051,354 | |
Deferred loan origination costs | 12,335 | 11,875 | ||
Loans to members | 30,687,331 | 28,882,633 | 30,063,386 | |
Less: Allowance for credit losses | (71,056) | (89,535) | (67,560) | $ (85,532) |
Loans to members, net | 30,616,275 | 28,793,098 | 29,995,826 | |
Other assets | 1,466,019 | 1,298,649 | ||
Total assets | 32,082,294 | 30,091,747 | $ 31,251,382 | |
Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | (10,785) | (27,563) | ||
Derivative cash settlements interest expense | (10,785) | (27,563) | ||
Non-interest income: | ||||
Derivative forward value gains (losses) | 104,372 | (144,600) | ||
Derivative gains (losses) | 93,587 | (172,163) | ||
Operating segments | ||||
Statement of operations: | ||||
Interest income | 316,920 | 291,760 | ||
Interest expense | (219,410) | (183,269) | ||
Derivative cash settlements interest expense | (10,785) | (27,563) | ||
Interest expense | (230,195) | (210,832) | ||
Net interest income | 86,725 | 80,928 | ||
Provision for credit losses | (3,743) | (4,209) | ||
Net interest income after provision for credit losses | 82,982 | 76,719 | ||
Non-interest income: | ||||
Fee and other income | 6,712 | 6,207 | ||
Derivative gains (losses) | 0 | 0 | ||
Investment securities losses | (3,679) | (2,225) | ||
Total non-interest income | 3,033 | 3,982 | ||
Non-interest expense: | ||||
General and administrative expenses | (27,547) | (25,805) | ||
Other non-interest expense | (703) | (721) | ||
Total non-interest expense | (28,250) | (26,526) | ||
Income (loss) before income taxes | 57,765 | 54,175 | ||
Income tax benefit (provision) | (263) | 93 | ||
Net income (loss) | 57,502 | 54,268 | ||
Assets: | ||||
Total loans outstanding | 31,853,805 | 29,987,128 | ||
Deferred loan origination costs | 12,335 | 11,875 | ||
Loans to members | 31,866,140 | 29,999,003 | ||
Less: Allowance for credit losses | (74,038) | (89,535) | ||
Loans to members, net | 31,792,102 | 29,909,468 | ||
Other assets | 1,553,989 | 1,387,636 | ||
Total assets | 33,346,091 | 31,297,104 | ||
Operating segments | Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | 0 | 0 | ||
Non-interest income: | ||||
Derivative forward value gains (losses) | 0 | 0 | ||
Reclasses and adjustments | ||||
Statement of operations: | ||||
Interest income | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Derivative cash settlements interest expense | 10,785 | 27,563 | ||
Interest expense | 10,785 | 27,563 | ||
Net interest income | 10,785 | 27,563 | ||
Provision for credit losses | 0 | 0 | ||
Net interest income after provision for credit losses | 10,785 | 27,563 | ||
Non-interest income: | ||||
Fee and other income | 0 | 0 | ||
Derivative gains (losses) | 93,587 | (172,163) | ||
Investment securities losses | 0 | 0 | ||
Total non-interest income | 93,587 | (172,163) | ||
Non-interest expense: | ||||
General and administrative expenses | 0 | 0 | ||
Other non-interest expense | 0 | 0 | ||
Total non-interest expense | 0 | 0 | ||
Income (loss) before income taxes | 104,372 | (144,600) | ||
Income tax benefit (provision) | 0 | 0 | ||
Net income (loss) | 104,372 | (144,600) | ||
Assets: | ||||
Total loans 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 | (10,785) | (27,563) | ||
Non-interest income: | ||||
Derivative forward value gains (losses) | 104,372 | (144,600) | ||
Intersegment eliminations | ||||
Statement of operations: | ||||
Interest income | (9,942) | (8,492) | ||
Interest expense | 9,942 | 8,492 | ||
Derivative cash settlements interest expense | 0 | 0 | ||
Interest expense | 9,942 | 8,492 | ||
Net interest income | 0 | 0 | ||
Provision for credit losses | 247 | 206 | ||
Net interest income after provision for credit losses | 247 | 206 | ||
Non-interest income: | ||||
Fee and other income | (2,656) | (2,266) | ||
Derivative gains (losses) | 0 | 0 | ||
Investment securities losses | 0 | 0 | ||
Total non-interest income | (2,656) | (2,266) | ||
Non-interest expense: | ||||
General and administrative expenses | 2,028 | 1,595 | ||
Other non-interest expense | 381 | 465 | ||
Total non-interest expense | 2,409 | 2,060 | ||
Income (loss) before income taxes | 0 | 0 | ||
Income tax benefit (provision) | 0 | 0 | ||
Net income (loss) | 0 | 0 | ||
Assets: | ||||
Total loans outstanding | (1,178,809) | (1,116,370) | ||
Deferred loan origination costs | 0 | 0 | ||
Loans to members | (1,178,809) | (1,116,370) | ||
Less: Allowance for credit losses | 2,982 | 0 | ||
Loans to members, net | (1,175,827) | (1,116,370) | ||
Other assets | (87,970) | (88,987) | ||
Total assets | (1,263,797) | (1,205,357) | ||
Intersegment eliminations | Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | 0 | 0 | ||
Non-interest income: | ||||
Derivative forward value gains (losses) | 0 | 0 | ||
CFC | Operating segments | ||||
Statement of operations: | ||||
Interest income | 304,984 | 281,307 | ||
Interest expense | (209,468) | (174,777) | ||
Derivative cash settlements interest expense | (10,528) | (27,145) | ||
Interest expense | (219,996) | (201,922) | ||
Net interest income | 84,988 | 79,385 | ||
Provision for credit losses | (3,496) | (4,003) | ||
Net interest income after provision for credit losses | 81,492 | 75,382 | ||
Non-interest income: | ||||
Fee and other income | 5,793 | 5,323 | ||
Derivative gains (losses) | 0 | 0 | ||
Investment securities losses | (3,679) | (2,225) | ||
Total non-interest income | 2,114 | 3,098 | ||
Non-interest expense: | ||||
General and administrative expenses | (25,012) | (23,654) | ||
Other non-interest expense | (322) | (256) | ||
Total non-interest expense | (25,334) | (23,910) | ||
Income (loss) before income taxes | 58,272 | 54,570 | ||
Income tax benefit (provision) | 0 | 0 | ||
Net income (loss) | 58,272 | 54,570 | ||
Assets: | ||||
Total loans outstanding | 30,656,301 | 28,849,795 | ||
Deferred loan origination costs | 12,335 | 11,875 | ||
Loans to members | 30,668,636 | 28,861,670 | ||
Less: Allowance for credit losses | (71,056) | (89,535) | ||
Loans to members, net | 30,597,580 | 28,772,135 | ||
Other assets | 1,456,295 | 1,288,781 | ||
Total assets | 32,053,875 | 30,060,916 | ||
CFC | Operating segments | Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | 0 | 0 | ||
Non-interest income: | ||||
Derivative forward value gains (losses) | 0 | 0 | ||
NCSC and RTFC | Operating segments | ||||
Statement of operations: | ||||
Interest income | 11,936 | 10,453 | ||
Interest expense | (9,942) | (8,492) | ||
Derivative cash settlements interest expense | (257) | (418) | ||
Interest expense | (10,199) | (8,910) | ||
Net interest income | 1,737 | 1,543 | ||
Provision for credit losses | (247) | (206) | ||
Net interest income after provision for credit losses | 1,490 | 1,337 | ||
Non-interest income: | ||||
Fee and other income | 919 | 884 | ||
Derivative gains (losses) | 0 | 0 | ||
Investment securities losses | 0 | 0 | ||
Total non-interest income | 919 | 884 | ||
Non-interest expense: | ||||
General and administrative expenses | (2,535) | (2,151) | ||
Other non-interest expense | (381) | (465) | ||
Total non-interest expense | (2,916) | (2,616) | ||
Income (loss) before income taxes | (507) | (395) | ||
Income tax benefit (provision) | (263) | 93 | ||
Net income (loss) | (770) | (302) | ||
Assets: | ||||
Total loans outstanding | 1,197,504 | 1,137,333 | ||
Deferred loan origination costs | 0 | 0 | ||
Loans to members | 1,197,504 | 1,137,333 | ||
Less: Allowance for credit losses | (2,982) | 0 | ||
Loans to members, net | 1,194,522 | 1,137,333 | ||
Other assets | 97,694 | 98,855 | ||
Total assets | 1,292,216 | 1,236,188 | ||
NCSC and RTFC | Operating segments | Interest rate swaps | ||||
Statement of operations: | ||||
Interest expense | 0 | 0 | ||
Non-interest income: | ||||
Derivative forward value gains (losses) | $ 0 | $ 0 |