Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended |
Feb. 28, 2014 | |
Document Information [Line Items] | ' |
Entity Registrant Name | 'NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/ |
Entity Central Index Key | '0000070502 |
Current Fiscal Year End Date | '--05-31 |
Entity Filer Category | 'Non-accelerated Filer |
Trading Symbol | 'NRU |
Entity Common Stock, Shares Outstanding | 0 |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 28-Feb-14 |
Document Fiscal Period Focus | 'Q3 |
Document Fiscal Year Focus | '2014 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $842,915 | $177,062 |
Restricted cash | 7,256 | 7,696 |
Investments | 28,702 | 31,632 |
Time deposits | 700,000 | 700,000 |
Loans to members | 20,645,064 | 20,305,874 |
Less: Allowance for loan losses | -56,040 | -54,325 |
Loans to members, net | 20,589,024 | 20,251,549 |
Accrued interest and other receivables | 207,894 | 175,183 |
Fixed assets, net | 106,267 | 104,508 |
Debt service reserve funds | 39,353 | 39,803 |
Debt issuance costs, net | 43,325 | 38,949 |
Foreclosed assets, net | 255,150 | 261,472 |
Derivative assets | 261,598 | 257,878 |
Other assets | 25,845 | 25,919 |
Total assets | 23,107,329 | 22,071,651 |
LIABILITIES AND EQUITY | ' | ' |
Short-term debt | 6,541,987 | 7,719,483 |
Accrued interest payable | 203,085 | 144,945 |
Long-term debt | 12,902,920 | 10,696,433 |
Deferred income | 79,670 | 25,717 |
Derivative liabilities | 380,518 | 475,278 |
Other liabilities | 121,894 | 69,308 |
Commitments and contingencies | ' | ' |
Total liabilities | 22,117,039 | 21,260,390 |
CFC equity: | ' | ' |
Retained equity | 958,620 | 791,090 |
Accumulated other comprehensive income | 4,723 | 8,381 |
Total CFC equity | 963,343 | 799,471 |
Noncontrolling interest | 26,947 | 11,790 |
Total equity | 990,290 | 811,261 |
Total liabilities and equity | 23,107,329 | 22,071,651 |
Subordinated deferrable debt | ' | ' |
LIABILITIES AND EQUITY | ' | ' |
Subordinated debt | 400,000 | 400,000 |
Membership subordinated certificates | ' | ' |
LIABILITIES AND EQUITY | ' | ' |
Subordinated debt | 644,757 | 644,757 |
Loan and guarantee subordinated certificates | ' | ' |
LIABILITIES AND EQUITY | ' | ' |
Subordinated debt | 668,918 | 696,719 |
Member capital securities | ' | ' |
LIABILITIES AND EQUITY | ' | ' |
Subordinated debt | 173,290 | 387,750 |
Total members' subordinated certificates | ' | ' |
LIABILITIES AND EQUITY | ' | ' |
Subordinated debt | $1,486,965 | $1,729,226 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Interest income | $238,732 | $234,021 | $719,057 | $715,736 |
Interest expense | -163,534 | -171,899 | -496,464 | -522,796 |
Net interest income | 75,198 | 62,122 | 222,593 | 192,940 |
(Provision for) recovery of loan losses | -787 | 378 | -3,161 | -4,927 |
Net interest income after (provision for) recovery of loan losses | 74,411 | 62,500 | 219,432 | 188,013 |
Non-interest income: | ' | ' | ' | ' |
Fee and other income | 5,702 | 6,337 | 14,983 | 29,102 |
Derivative (losses) gains, net | -31,623 | 46,626 | 43,981 | 18,268 |
Results of operations of foreclosed assets | -1,164 | 6,478 | -8,482 | 804 |
Total non-interest income | -27,085 | 59,441 | 50,482 | 48,174 |
Non-interest expense: | ' | ' | ' | ' |
Salaries and employee benefits | -8,013 | -23,627 | -27,359 | -44,180 |
Other general and administrative expenses | -9,170 | -6,652 | -27,012 | -22,720 |
(Provision for) recovery of guarantee liability | -117 | 46 | -159 | 147 |
Losses on early extinguishment of debt | -1,452 | 0 | -1,452 | 0 |
Other | 210 | -554 | -88 | -5,101 |
Total non-interest expense | -18,542 | -30,787 | -56,070 | -71,854 |
Income prior to income taxes | 28,784 | 91,154 | 213,844 | 164,333 |
Income tax expense | -243 | -1,067 | -2,045 | -1,519 |
Net income | 28,541 | 90,087 | 211,799 | 162,814 |
Less: Net income attributable to noncontrolling interest | -239 | -1,664 | -3,024 | -2,368 |
Net income attributable to CFC | $28,302 | $88,423 | $208,775 | $160,446 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Net income | $28,541 | $90,087 | $211,799 | $162,814 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Add: Unrealized gains (losses) on available-for-sale securities | 2,313 | -479 | -2,931 | 408 |
Less: Net derivative gains reclassified into earnings | -245 | -251 | -740 | -756 |
Other comprehensive income (loss) | 2,068 | -730 | -3,671 | -348 |
Total comprehensive income | 30,609 | 89,357 | 208,128 | 162,466 |
Less: Total comprehensive income attributable to noncontrolling interest | -235 | -1,659 | -3,011 | -2,352 |
Total comprehensive income attributable to CFC | $30,374 | $87,698 | $205,117 | $160,114 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Noncontrolling interest | Total CFC equity | Accumulated other comprehensive income | CFC retained equity | Unallocated net income (loss) | Members' capital reserve | Patronage capital allocated | Membership fees and education fund |
In Thousands | |||||||||
Balance at May. 31, 2012 | $490,755 | $7,592 | $483,163 | $9,199 | $473,964 | ($346,941) | $272,126 | $546,366 | $2,413 |
Patronage capital retirement | -35,646 | 0 | -35,646 | 0 | -35,646 | 429 | 0 | -36,075 | 0 |
Net income | 162,814 | 2,368 | 160,446 | 0 | 160,446 | 160,446 | 0 | 0 | 0 |
Other comprehensive (loss) | -348 | -16 | -332 | -332 | 0 | 0 | 0 | 0 | 0 |
Other | -540 | -1 | -539 | 0 | -539 | 0 | 0 | 0 | -539 |
Balance at Feb. 28, 2013 | 617,035 | 9,943 | 607,092 | 8,867 | 598,225 | -186,066 | 272,126 | 510,291 | 1,874 |
Balance at May. 31, 2013 | 811,261 | 11,790 | 799,471 | 8,381 | 791,090 | -213,255 | 410,259 | 591,581 | 2,505 |
Patronage capital retirement | -40,724 | 0 | -40,724 | 0 | -40,724 | 0 | 0 | -40,724 | 0 |
Net income | 211,799 | 3,024 | 208,775 | 0 | 208,775 | 208,775 | 0 | 0 | 0 |
Other comprehensive (loss) | -3,671 | -13 | -3,658 | -3,658 | 0 | 0 | 0 | 0 | 0 |
Other | 11,625 | 12,146 | -521 | 0 | -521 | 0 | 0 | 0 | -521 |
Balance at Feb. 28, 2014 | $990,290 | $26,947 | $963,343 | $4,723 | $958,620 | ($4,480) | $410,259 | $550,857 | $1,984 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $211,799 | $162,814 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Amortization of deferred income | -7,156 | -6,879 |
Amortization of debt issuance costs and deferred charges | 5,393 | 5,733 |
Amortization of discount on long-term debt | 4,046 | 2,953 |
Amortization of issuance costs on revolving bank lines of credit | 2,098 | 2,159 |
Depreciation | 4,254 | 3,984 |
Provision for loan losses | 3,161 | 4,927 |
Provision for (recovery of) guarantee liability | 159 | -147 |
Results of operations of foreclosed assets | 8,482 | -804 |
Derivative forward value | -98,925 | -62,194 |
Net changes in operating assets and liabilities: | ' | ' |
Accrued interest and other receivables | -37,792 | 27,948 |
Accounts payable | 67,489 | 17,635 |
Accrued interest payable | 58,140 | 50,688 |
Deferred income | 61,109 | 666 |
Other | -1,116 | -5,183 |
Net cash provided by operating activities | 281,141 | 204,300 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Advances made on loans | -6,165,888 | -6,021,056 |
Principal collected on loans | 5,825,426 | 5,455,065 |
Net investment in fixed assets | -6,004 | -4,648 |
Proceeds from foreclosed assets | 0 | 46,284 |
Investments in foreclosed assets | -2,160 | -79,372 |
Investments in time deposits | 0 | -450,000 |
Proceeds from early redemption of investments | 0 | 57,578 |
Investments in equity securities | 0 | -30,000 |
Change in restricted cash | 440 | 475 |
Net cash used in investing activities | -348,186 | -1,025,674 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Proceeds from issuances of short-term debt, net | 762,205 | 686,383 |
Proceeds from issuances of short term debt with original maturity greater than 90 days | 593,401 | 370,949 |
Repayments of short term debt with original maturity greater than 90 days | -620,404 | -394,366 |
Proceeds from issuance of long-term debt | -2,368,220 | -1,062,956 |
Payments for redemption of long-term debt | 56,386 | 57,166 |
Proceeds from issuance of members' subordinated certificates | -99,507 | -15,358 |
Payments for retirement of members' subordinated certificates | -40,030 | -34,872 |
Cash paid portion of debt exchange premium | 0 | -133,406 |
Net cash provided by financing activities | 732,898 | 1,419,434 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 665,853 | 598,060 |
BEGINNING CASH AND CASH EQUIVALENTS | 177,062 | 191,167 |
ENDING CASH AND CASH EQUIVALENTS | 842,915 | 789,227 |
Cash paid for: | ' | ' |
Interest | 426,755 | 461,263 |
Income taxes | 157 | 97 |
Non-cash financing and investing activities: | ' | ' |
Net decrease in debt service reserve funds/debt service reserve certificates | -450 | 0 |
Collateral trust bonds issued as debt exchange premium | 0 | 39,647 |
Revolving bank lines of credit | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Issuance costs for revolving bank lines of credit | 0 | -50 |
Subordinated deferrable debt | ' | ' |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Issuance costs for revolving bank lines of credit | $2,449,067 | $1,945,944 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
-1 | Summary of Significant Accounting Policies | |||||||||||||
(a) | Basis of Presentation | |||||||||||||
The accompanying financial statements include the consolidated accounts of National Rural Utilities Cooperative Finance Corporation (“CFC”), Rural Telephone Finance Cooperative (“RTFC”), National Cooperative Services Corporation (“NCSC”) and certain entities created and controlled by CFC to hold foreclosed assets and accommodate loan securitization transactions, after elimination of intercompany accounts and transactions. | ||||||||||||||
Unless stated otherwise, references to “we,” “our” or “us” represent the consolidation of CFC, RTFC, NCSC and certain entities created and controlled by CFC to hold foreclosed assets and accommodate loan securitization transactions. Foreclosed assets are held by two subsidiaries controlled by CFC. Denton Realty Partners, LP (“DRP”) holds a land development loan and a related limited partnership interest. Caribbean Asset Holdings (“CAH”) holds our investment in cable and telecommunications operating entities in the United States Virgin Islands (“USVI”), British Virgin Islands and St. Maarten. | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the assets, liabilities, revenue and expenses reported in the financial statements, as well as amounts included in the notes thereto, including discussion and disclosure of contingent liabilities. The accounting estimates that require our most significant and subjective judgments include the allowance for loan losses and the determination of the fair value of our derivatives and certain aspects of our foreclosed assets. While we use our best estimates and judgments based on the known facts at the date of the financial statements, actual results could differ from these estimates as future events occur. | ||||||||||||||
During the preparation of our consolidated balance sheets for the quarter ended February 28, 2014, we determined that an intercompany elimination entry related to the consolidation of RTFC had been misclassified in each period since May 31, 2009, resulting in an overstatement of other liabilities and an understatement of noncontrolling interest at the end of each reported period. We corrected the misclassification in the quarter ended February 28, 2014, which resulted in a decrease of $11.5 million in other liabilities and a corresponding increase in noncontrolling interest. We concluded that the correction of the misclassification was not material to our financial position in the current period, and the misclassification was not material to our financial position in the previously reported periods. Accordingly, we did not revise prior period balance sheet amounts. The misclassification had no impact on our, consolidated statements of operations and comprehensive income, total assets, total liabilities and equity, or cash flows for any of our previously filed annual or quarterly financial statements, and did not impact the compliance with any of our financial debt covenants for any period. | ||||||||||||||
These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2013. Reclassifications of prior period amounts have been made to conform to the current period presentation. | ||||||||||||||
In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments (which consist only of normal recurring accruals) necessary for a fair presentation of our results of operations and financial position for the interim periods presented. | ||||||||||||||
(b) | Variable Interest Entities | |||||||||||||
We are required to consolidate the financial results of RTFC and NCSC because CFC is the primary beneficiary of variable interests in RTFC and NCSC due to its exposure to absorbing the majority of their expected losses and because CFC manages the lending activities of RTFC and NCSC. | ||||||||||||||
Under separate guarantee agreements, RTFC and NCSC pay CFC a fee to indemnify against loan losses. CFC is the sole lender to and manages the business operations of RTFC through a management agreement in effect until December 1, 2016, which is automatically renewed for one-year terms thereafter unless terminated by either party. CFC is the primary source of funding to and manages the lending activities of NCSC through a management agreement that is automatically renewable on an annual basis unless terminated by either party. NCSC funds its lending programs through loans from CFC or debt guaranteed by CFC. In connection with these guarantees, NCSC must pay a guarantee fee and purchase from CFC interest-bearing subordinated term certificates in proportion to the related guarantee. | ||||||||||||||
RTFC and NCSC creditors have no recourse against CFC in the event of a default by RTFC and NCSC, unless there is a guarantee agreement under which CFC has guaranteed NCSC or RTFC debt obligations to a third party. At February 28, 2014, CFC had guaranteed $121 million of NCSC debt, derivative instruments and guarantees with third parties, and CFC’s maximum potential exposure for these instruments totaled $128 million. The maturities for NCSC obligations guaranteed by CFC extend through 2031. Guarantees of NCSC debt and derivative instruments are not included in Note 10, Guarantees, as the debt and derivatives are reported on the condensed consolidated balance sheet. At February 28, 2014, CFC guaranteed $2 million of RTFC guarantees with third parties. The maturities for RTFC obligations guaranteed by CFC extend through 2015 and are renewed on an annual basis. All CFC loans to RTFC and NCSC are secured by all assets and revenue of RTFC and NCSC, respectively. At February 28, 2014, RTFC had total assets of $577 million including loans outstanding to members of $455 million, and NCSC had total assets of $804 million including loans outstanding of $779 million. At February 28, 2014, CFC had committed to lend RTFC up to $4,000 million, of which $441 million was outstanding. At February 28, 2014, CFC had committed to provide up to $3,000 million of credit to NCSC, of which $884 million was outstanding, representing $763 million of outstanding loans and $121 million of credit enhancements. | ||||||||||||||
(c) | Loan Sales | |||||||||||||
We account for the transfer of loans resulting from direct loan sales to third parties and securitization transactions by removing the loans from our condensed consolidated balance sheets when control has been surrendered. We retain the servicing performance obligations on these loans and recognize related servicing fees on an accrual basis over the period for which servicing activity is provided. Deferred transaction costs and unamortized deferred loan origination costs related to the loans sold are included in determining the gain or loss on the sale. We do not hold any continuing interest in the loans sold to date other than servicing performance obligations. We have no obligation to repurchase loans from the purchaser, except in the case of breaches of representations and warranties. | ||||||||||||||
During the nine months ended February 28, 2014 and 2013, we sold CFC loans with outstanding balances totaling $106 million and $121 million, respectively, at par for cash. We recorded immaterial losses on the sale of these loans. | ||||||||||||||
(d) | Interest Income | |||||||||||||
Interest income on loans is recognized using the effective interest method. The following table presents the components of interest income: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Interest on long-term fixed-rate loans | $ | 220,227 | $ | 216,716 | $ | 666,762 | $ | 652,903 | ||||||
Interest on long-term variable-rate loans | 5,217 | 5,203 | 14,871 | 16,121 | ||||||||||
Interest on line of credit loans | 8,302 | 7,961 | 23,379 | 23,066 | ||||||||||
Interest on restructured loans | - | 436 | 136 | 13,523 | ||||||||||
Interest on investments | 1,932 | 1,864 | 5,685 | 4,378 | ||||||||||
Fee income (1) | 3,054 | 1,841 | 8,224 | 5,745 | ||||||||||
Total interest income | $ | 238,732 | $ | 234,021 | $ | 719,057 | $ | 715,736 | ||||||
(1) Primarily related to conversion fees that are deferred and recognized using the effective interest method over the remaining original loan interest rate pricing term, except for a small portion of the total fee charged to cover administrative costs related to the conversion, which is recognized immediately. | ||||||||||||||
Deferred income recorded on the condensed consolidated balance sheets primarily consists of deferred conversion fees totaling $74 million and $21 million at February 28, 2014 and May 31, 2013, respectively. | ||||||||||||||
(e) | Interest Expense | |||||||||||||
The following table presents the components of interest expense: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Interest expense on debt (1): | ||||||||||||||
Short-term debt | $ | 1,406 | $ | 1,717 | $ | 4,445 | $ | 5,033 | ||||||
Medium-term notes | 20,369 | 21,294 | 62,920 | 74,010 | ||||||||||
Collateral trust bonds | 76,090 | 84,197 | 227,746 | 247,907 | ||||||||||
Subordinated deferrable debt | 4,750 | 2,806 | 14,250 | 8,419 | ||||||||||
Subordinated certificates | 19,777 | 20,345 | 60,897 | 61,227 | ||||||||||
Long-term notes payable | 37,130 | 37,622 | 113,828 | 113,933 | ||||||||||
Debt issuance costs (2) | 1,806 | 1,891 | 5,453 | 5,733 | ||||||||||
Fee expense (3) | 2,206 | 2,027 | 6,925 | 6,534 | ||||||||||
Total interest expense | $ | 163,534 | $ | 171,899 | $ | 496,464 | $ | 522,796 | ||||||
(1) Represents interest expense and the amortization of discounts on debt. | ||||||||||||||
(2) Includes amortization of all deferred charges related to the issuance of debt, principally underwriters’ fees, legal fees, printing costs and comfort letter fees. Amortization is calculated using the effective interest method or a method approximating the effective interest method. Also includes issuance costs related to dealer commercial paper, which are recognized as incurred. | ||||||||||||||
(3) Includes various fees related to funding activities, including fees paid to banks participating in our revolving credit agreements. | ||||||||||||||
We exclude indirect costs, if any, related to funding activities from interest expense. | ||||||||||||||
(f) | Derivative Financial Instruments | |||||||||||||
We are an end user of financial derivative instruments and not a swap dealer. We use derivatives such as interest rate swaps and treasury rate locks to mitigate interest rate risk. Consistent with the accounting standards for derivative financial instruments, we record derivative instruments (including certain derivative instruments embedded in other contracts) on the condensed consolidated balance sheets as either an asset or liability measured at fair value. In recording the fair value of derivative assets and liabilities, we do not net our positions under contracts with individual counterparties. Accrued cash settlements on our derivatives are recorded as accrued interest and other receivables and accrued interest payable line items of the condensed consolidated balance sheet. Changes in the fair value of derivative instruments along with realized gains and losses from cash settlements are recognized in the derivative gains (losses) line item of the condensed consolidated statement of operations unless specific hedge accounting criteria are met. | ||||||||||||||
We formally document, designate and assess the effectiveness of derivatives designated for hedge accounting treatment, which typically include treasury rate locks. If applicable cash flow hedge accounting criteria are met for these derivatives, changes in the fair value of the derivative instruments are recorded in other comprehensive income, and net cash settlements are recorded in interest expense. The gain or loss on derivatives used as a cash flow hedge of a forecasted debt transaction is recorded as a component of other comprehensive income (loss) and reclassified to interest expense using the effective interest method over the term of the hedged debt. Any ineffectiveness in the hedging relationship is recognized in the derivative gains (losses) line of the statement of operations. | ||||||||||||||
Cash activity associated with interest rate swaps is classified as an operating activity in the condensed consolidated statements of cash flows. | ||||||||||||||
(g) | New Accounting Pronouncements | |||||||||||||
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update, Disclosures about Offsetting Assets and Liabilities, which requires enhanced disclosures about certain financial assets and liabilities that are subject to enforceable master netting agreements or similar agreements, or that have otherwise been offset on the balance sheet under certain specific conditions that permit net presentation. In January 2013, the Financial Accounting Standards Board issued Accounting Standards Update, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies that the scope of the above guidance is limited to derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions. The guidance was effective for us beginning in the first quarter of fiscal year 2014. See Note 8, Derivative Financial Instruments, for additional disclosures about offsetting assets and liabilities. | ||||||||||||||
In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update, Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income, which requires enhanced disclosures of the amounts reclassified out of Accumulated Other Comprehensive Income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of Accumulated Other Comprehensive Income by the respective line items of net income, but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. The guidance was effective for us beginning in the first quarter of fiscal year 2014 and did not have a material effect on the condensed consolidated financial statements, as the amounts reclassified out of other comprehensive income are immaterial for all periods presented. | ||||||||||||||
Investment_Securities
Investment Securities | 9 Months Ended | ||
Feb. 28, 2014 | |||
Investments | ' | ||
Investments | ' | ||
-2 | Investment Securities | ||
Our investment securities consist of Federal Agricultural Mortgage Corporation Series A preferred stock with a cost basis of $30 million and fair value of $27 million and $29 million at February 28, 2014 and May 31, 2013, respectively, and an unrealized loss of $3 million and $1 million, respectively, recorded in accumulated other comprehensive income on the condensed consolidated balance sheet. The investment has been in a continuous unrealized loss position for less than twelve months, primarily due to the increase in interest rates. We do not intend to sell this investment in the foreseeable future and we currently expect to fully recover our cost. Our investment in this Series A preferred stock is classified as available-for-sale and therefore recorded in the condensed consolidated balance sheets at fair value. | |||
Our investments also include Federal Agricultural Mortgage Corporation Class A common stock with a cost basis of $0.5 million and a fair value of $2.1 million and $2.2 million at February 28, 2014 and May 31, 2013, respectively, and an unrealized gain of $1.6 million and $1.7 million, respectively, recorded in accumulated other comprehensive income on the condensed consolidated balance sheet. Our investment in this Class A common stock is classified as available-for-sale and therefore recorded in the condensed consolidated balance sheets at fair value. | |||
Loans_and_Commitments
Loans and Commitments | 9 Months Ended | ||||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||||
Loans and Commitments | ' | ||||||||||||||||||||||||
Loans and Commitments | ' | ||||||||||||||||||||||||
-3 | Loans and Commitments | ||||||||||||||||||||||||
Loans outstanding to members and unadvanced commitments by loan type and by member class are summarized as follows: | |||||||||||||||||||||||||
February 28, 2014 | May 31, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Loans | Unadvanced | Loans | Unadvanced | |||||||||||||||||||||
Outstanding | Commitments (1) | Outstanding | Commitments (1) | ||||||||||||||||||||||
Total by loan type (2): | |||||||||||||||||||||||||
Long-term fixed-rate loans | $ | 18,185,111 | $ | - | $ | 17,918,268 | $ | - | |||||||||||||||||
Long-term variable-rate loans | 770,883 | 4,547,813 | 782,006 | 4,718,162 | |||||||||||||||||||||
Loans guaranteed by RUS | 203,173 | - | 210,815 | - | |||||||||||||||||||||
Line of credit loans | 1,476,166 | 8,996,845 | 1,385,228 | 8,704,586 | |||||||||||||||||||||
Total loans outstanding | 20,635,333 | 13,544,658 | 20,296,317 | 13,422,748 | |||||||||||||||||||||
Deferred origination costs | 9,731 | - | 9,557 | - | |||||||||||||||||||||
Less: Allowance for loan losses | -56,040 | - | -54,325 | - | |||||||||||||||||||||
Net loans outstanding | $ | 20,589,024 | $ | 13,544,658 | $ | 20,251,549 | $ | 13,422,748 | |||||||||||||||||
Total by member class (2): | |||||||||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Distribution | $ | 15,186,620 | $ | 9,115,128 | $ | 14,941,192 | $ | 8,948,826 | |||||||||||||||||
Power supply | 4,149,104 | 3,024,666 | 4,007,669 | 3,145,518 | |||||||||||||||||||||
Statewide and associate | 64,822 | 128,440 | 70,956 | 102,087 | |||||||||||||||||||||
CFC total | 19,400,546 | 12,268,234 | 19,019,817 | 12,196,431 | |||||||||||||||||||||
RTFC | 455,492 | 312,466 | 503,359 | 317,344 | |||||||||||||||||||||
NCSC | 779,295 | 963,958 | 773,141 | 908,973 | |||||||||||||||||||||
Total loans outstanding | $ | 20,635,333 | $ | 13,544,658 | $ | 20,296,317 | $ | 13,422,748 | |||||||||||||||||
(1) The interest rate on unadvanced commitments is not set until drawn, therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. | |||||||||||||||||||||||||
(2) Includes nonperforming and restructured loans. | |||||||||||||||||||||||||
Nonperforming and restructured loans outstanding and unadvanced commitments to members included in the table above are summarized by loan type and by company below: | |||||||||||||||||||||||||
February 28, 2014 | May 31, 2013 | ||||||||||||||||||||||||
Loans | Unadvanced | Loans | Unadvanced | ||||||||||||||||||||||
(Dollars in thousands) | Outstanding | Commitments (1) | Outstanding | Commitments (1) | |||||||||||||||||||||
Nonperforming and restructured loans: | |||||||||||||||||||||||||
Nonperforming loans: | |||||||||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Line of credit loans | $ | 5,000 | $ | - | $ | 5,000 | $ | - | |||||||||||||||||
NCSC: | |||||||||||||||||||||||||
Line of credit loans | 450 | - | - | - | |||||||||||||||||||||
RTFC: | |||||||||||||||||||||||||
Long-term fixed-rate loans | 2,786 | - | 3,690 | - | |||||||||||||||||||||
Long-term variable-rate loans | 2,609 | - | 6,807 | - | |||||||||||||||||||||
Total nonperforming loans | $ | 10,845 | $ | - | $ | 15,497 | $ | - | |||||||||||||||||
Restructured loans: | |||||||||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Long-term fixed-rate loans | $ | 7,584 | $ | - | $ | 46,953 | $ | - | |||||||||||||||||
Line of credit loans (2) | - | - | - | 5,000 | |||||||||||||||||||||
Total restructured loans | $ | 7,584 | $ | - | $ | 46,953 | $ | 5,000 | |||||||||||||||||
(1) The interest rate on unadvanced commitments is not set until drawn, therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. | |||||||||||||||||||||||||
(2) The unadvanced commitment is part of the terms outlined in the related restructure agreement. Loans advanced under these commitments would be classified as performing. Principal and interest due under these performing loans would be in addition to scheduled payments due under the restructured loan agreement. | |||||||||||||||||||||||||
Unadvanced Loan Commitments | |||||||||||||||||||||||||
A total of $2,249 million and $1,703 million of unadvanced commitments at February 28, 2014 and May 31, 2013, respectively, represented unadvanced commitments related to committed lines of credit loans that are not subject to a material adverse change clause at the time of each loan advance. As such, we will be 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 at February 28, 2014 under committed lines of credit that are not subject to a material adverse change clause and the related maturities by fiscal year and thereafter as follows: | |||||||||||||||||||||||||
Available | Notional Maturities of Committed Lines of Credit | ||||||||||||||||||||||||
(Dollars in thousands) | Balance | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||
Committed lines of credit | $ | 2,248,762 | $ | 19,048 | $ | 55,026 | $ | 61,000 | $ | 466,061 | $ | 861,098 | $ | 786,529 | |||||||||||
The remaining unadvanced commitments totaling $11,296 million and $11,720 million at February 28, 2014 and May 31, 2013, respectively, were generally subject to material adverse change clauses. 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 imposition of borrower-specific restrictions, or by additional conditions that must be met prior to advancing funds. | |||||||||||||||||||||||||
Unadvanced commitments related to line of credit loans are typically for periods not to exceed five years and are generally revolving facilities used for working capital and backup liquidity purposes. Historically, we have experienced a very low utilization rate on line of credit loan facilities, whether or not there is a material adverse change clause. Since we generally do not charge a fee on the unadvanced portion of the majority of our loan facilities, our borrowers will typically request long-term facilities to cover maintenance and capital expenditure work plans for periods of up to five years and draw down on the facility over that time. In addition, borrowers will typically request an amount in excess of their immediate estimated loan requirements to avoid the expense related to seeking additional loan funding for unexpected items. | |||||||||||||||||||||||||
The above items all contribute to our expectation that the majority of the unadvanced commitments will expire without being fully drawn upon and that the total unadvanced amount does not necessarily represent future cash funding requirements. | |||||||||||||||||||||||||
Payment Status of Loans | |||||||||||||||||||||||||
The tables below present the payment status, including an aging of delinquent loans, of the recorded investment in loans outstanding by member class at February 28, 2014 and May 31, 2013: | |||||||||||||||||||||||||
February 28, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days | 90 Days or | Total | Total | Non-accrual | |||||||||||||||||||
Past Due | More | Past Due | Financing | Loans | |||||||||||||||||||||
Past Due (1) | Receivables | ||||||||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Distribution | $ | 15,186,620 | $ | - | $ | - | $ | - | $ | 15,186,620 | $ | 7,584 | |||||||||||||
Power supply | 4,144,104 | - | 5,000 | 5,000 | 4,149,104 | 5,000 | |||||||||||||||||||
Statewide and associate | 64,822 | - | - | - | 64,822 | - | |||||||||||||||||||
CFC total | 19,395,546 | - | 5,000 | 5,000 | 19,400,546 | 12,584 | |||||||||||||||||||
RTFC | 451,913 | - | 3,579 | 3,579 | 455,492 | 5,395 | |||||||||||||||||||
NCSC | 779,295 | - | - | - | 779,295 | 450 | |||||||||||||||||||
Total loans outstanding | $ | 20,626,754 | $ | - | $ | 8,579 | $ | 8,579 | $ | 20,635,333 | $ | 18,429 | |||||||||||||
As a % of total loans | 99.96 | % | 0 | % | 0.04 | % | 0.04 | % | 100 | % | 0.09 | % | |||||||||||||
(1) All loans 90 days or more past due are on non-accrual status. | |||||||||||||||||||||||||
May 31, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days | 90 Days or | Total | Total | Non-accrual | |||||||||||||||||||
Past Due | More | Past Due | Financing | Loans | |||||||||||||||||||||
Past Due (1) | Receivables | ||||||||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Distribution | $ | 14,938,351 | $ | 2,841 | $ | - | $ | 2,841 | $ | 14,941,192 | $ | 7,584 | |||||||||||||
Power supply | 4,002,669 | - | 5,000 | 5,000 | 4,007,669 | 5,000 | |||||||||||||||||||
Statewide and associate | 70,956 | - | - | - | 70,956 | - | |||||||||||||||||||
CFC total | 19,011,976 | 2,841 | 5,000 | 7,841 | 19,019,817 | 12,584 | |||||||||||||||||||
RTFC | 495,040 | 4,163 | 4,156 | 8,319 | 503,359 | 10,497 | |||||||||||||||||||
NCSC | 773,141 | - | - | - | 773,141 | - | |||||||||||||||||||
Total loans outstanding | $ | 20,280,157 | $ | 7,004 | $ | 9,156 | $ | 16,160 | $ | 20,296,317 | $ | 23,081 | |||||||||||||
As a % of total loans | 99.92 | % | 0.03 | % | 0.05 | % | 0.08 | % | 100 | % | 0.11 | % | |||||||||||||
(1) All loans 90 days or more past due are on non-accrual status. | |||||||||||||||||||||||||
Credit Quality | |||||||||||||||||||||||||
We monitor the credit quality and performance statistics of our financing receivables in an ongoing manner to provide a balance between the credit needs of our members and the requirements for sound credit quality of the loan portfolio. We evaluate the credit quality of our loans using an internal risk rating system that employs similar criteria for all member classes. | |||||||||||||||||||||||||
Our internal risk rating system is based on a determination of a borrower’s risk of default utilizing both quantitative and qualitative measurements. | |||||||||||||||||||||||||
We have grouped our risk ratings into the categories of pass and criticized based on the criteria below. | |||||||||||||||||||||||||
(i) Pass: Borrowers that are not experiencing difficulty and/or not showing a potential or well-defined credit weakness. | |||||||||||||||||||||||||
(ii) Criticized: Includes borrowers categorized as special mention, substandard and doubtful as described below: | |||||||||||||||||||||||||
· | 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 weakness and the full collection of principal and interest is questionable or improbable. | ||||||||||||||||||||||||
Borrowers included in the pass, special mention, and substandard categories are reflected in the general portfolio of loans. Borrowers included in the doubtful category are reflected in the impaired portfolio of loans. Each risk rating is reassessed annually based on the receipt of the borrower’s audited financial statements; however, interim downgrades and upgrades may take place at any time as significant events or trends occur. | |||||||||||||||||||||||||
The following table presents our loan portfolio by risk rating category and member class at February 28, 2014 and May 31, 2013: | |||||||||||||||||||||||||
February 28, 2014 | 31-May-13 | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Criticized | Total | Pass | Criticized | Total | |||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Distribution | $ | 15,168,785 | $ | 17,835 | $ | 15,186,620 | $ | 14,922,558 | $ | 18,634 | $ | 14,941,192 | |||||||||||||
Power supply | 4,144,104 | 5,000 | 4,149,104 | 4,002,669 | 5,000 | 4,007,669 | |||||||||||||||||||
Statewide and associate | 64,542 | 280 | 64,822 | 70,668 | 288 | 70,956 | |||||||||||||||||||
CFC total | 19,377,431 | 23,115 | 19,400,546 | 18,995,895 | 23,922 | 19,019,817 | |||||||||||||||||||
RTFC | 441,757 | 13,735 | 455,492 | 483,058 | 20,301 | 503,359 | |||||||||||||||||||
NCSC | 776,981 | 2,314 | 779,295 | 770,419 | 2,722 | 773,141 | |||||||||||||||||||
Total loans outstanding | $ | 20,596,169 | $ | 39,164 | $ | 20,635,333 | $ | 20,249,372 | $ | 46,945 | $ | 20,296,317 | |||||||||||||
Loan Security | |||||||||||||||||||||||||
Except when providing line of credit loans, we typically lend to our members on a senior secured basis. Long-term loans are typically secured on a parity with other secured lenders (primarily RUS), if any, by all assets and revenue of the borrower with exceptions typical in utility mortgages. Line of credit loans are generally unsecured. In addition to the lien and security interest we receive under the mortgage, our member borrowers are also required to achieve certain financial ratios as required by loan covenants. | |||||||||||||||||||||||||
The following table summarizes our secured and unsecured loans outstanding by loan type and by company: | |||||||||||||||||||||||||
February 28, 2014 | May 31, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Secured | % | Unsecured | % | Secured | % | Unsecured | % | |||||||||||||||||
Total by loan type: | |||||||||||||||||||||||||
Long-term fixed-rate loans | $ | 17,128,504 | 94 | % | $ | 1,056,607 | 6 | % | $ | 16,871,594 | 94 | % | $ | 1,046,674 | 6 | % | |||||||||
Long-term variable-rate loans | 679,446 | 88 | 91,437 | 12 | 676,075 | 86 | 105,931 | 14 | |||||||||||||||||
Loans guaranteed by RUS | 203,173 | 100 | - | - | 210,815 | 100 | - | - | |||||||||||||||||
Line of credit loans | 307,820 | 21 | 1,168,346 | 79 | 294,575 | 21 | 1,090,653 | 79 | |||||||||||||||||
Total loans outstanding | $ | 18,318,943 | 89 | $ | 2,316,390 | 11 | $ | 18,053,059 | 89 | $ | 2,243,258 | 11 | |||||||||||||
Total by company: | |||||||||||||||||||||||||
CFC | $ | 17,323,741 | 89 | % | $ | 2,076,805 | 11 | % | $ | 17,049,029 | 90 | % | $ | 1,970,788 | 10 | % | |||||||||
RTFC | 436,001 | 96 | 19,491 | 4 | 482,647 | 96 | 20,712 | 4 | |||||||||||||||||
NCSC | 559,201 | 72 | 220,094 | 28 | 521,383 | 67 | 251,758 | 33 | |||||||||||||||||
Total loans outstanding | $ | 18,318,943 | 89 | $ | 2,316,390 | 11 | $ | 18,053,059 | 89 | $ | 2,243,258 | 11 | |||||||||||||
Loan Loss Allowance | |||||||||||||||||||||||||
We maintain an allowance for loan losses at a level estimated by management to provide for probable losses inherent in the loan portfolio. The tables below summarize the changes in the allowance for loan losses by company for the three and nine months ended February 28, 2014. | |||||||||||||||||||||||||
Three Months Ended February 28, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Balance as of November 30, 2013 | $ | 42,762 | $ | 7,859 | $ | 4,578 | $ | 55,199 | |||||||||||||||||
Provision for (recovery of) loan losses | 1,543 | -2,450 | 1,694 | 787 | |||||||||||||||||||||
Charge-offs | - | - | - | - | |||||||||||||||||||||
Recoveries of loans previously charged-off | 54 | - | - | 54 | |||||||||||||||||||||
Balance as of February 28, 2014 | $ | 44,359 | $ | 5,409 | $ | 6,272 | $ | 56,040 | |||||||||||||||||
Three Months Ended February 28, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Balance as of November 30, 2012 | $ | 133,578 | $ | 8,314 | $ | 6,845 | $ | 148,737 | |||||||||||||||||
Provision for (recovery of) loan losses | 432 | -214 | -596 | -378 | |||||||||||||||||||||
Recoveries of loans previously charged-off | 52 | - | - | 52 | |||||||||||||||||||||
Balance as of February 28, 2013 | $ | 134,062 | $ | 8,100 | $ | 6,249 | $ | 148,411 | |||||||||||||||||
Nine Months Ended February 28, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Balance as of May 31, 2013 | $ | 41,246 | $ | 9,158 | $ | 3,921 | $ | 54,325 | |||||||||||||||||
Provision for (recovery of) loan losses | 2,953 | -2,143 | 2,351 | 3,161 | |||||||||||||||||||||
Charge-offs | - | -1,606 | - | -1,606 | |||||||||||||||||||||
Recoveries of loans previously charged-off | 160 | - | - | 160 | |||||||||||||||||||||
Balance as of February 28, 2014 | $ | 44,359 | $ | 5,409 | $ | 6,272 | $ | 56,040 | |||||||||||||||||
Nine Months Ended February 28, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Balance as of May 31, 2012 | $ | 126,941 | $ | 8,562 | $ | 7,823 | $ | 143,326 | |||||||||||||||||
Provision for (recovery of) loan losses | 6,963 | -462 | -1,574 | 4,927 | |||||||||||||||||||||
Recoveries of loans previously charged-off | 158 | - | - | 158 | |||||||||||||||||||||
Balance as of February 28, 2013 | $ | 134,062 | $ | 8,100 | $ | 6,249 | $ | 148,411 | |||||||||||||||||
Our allowance for loan losses includes a specific valuation allowance related to individually-evaluated impaired loans, as well as a general reserve for other probable incurred losses for loans that are collectively evaluated. The tables below present the loan loss allowance and the recorded investment in outstanding loans by impairment methodology and by company: | |||||||||||||||||||||||||
February 28, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Ending balance of the allowance: | |||||||||||||||||||||||||
Collectively evaluated | $ | 44,359 | $ | 4,950 | $ | 6,217 | $ | 55,526 | |||||||||||||||||
Individually evaluated | - | 459 | 55 | 514 | |||||||||||||||||||||
Total ending balance of the allowance | $ | 44,359 | $ | 5,409 | $ | 6,272 | $ | 56,040 | |||||||||||||||||
Recorded investment in loans: | |||||||||||||||||||||||||
Collectively evaluated | $ | 19,387,962 | $ | 450,097 | $ | 778,845 | $ | 20,616,904 | |||||||||||||||||
Individually evaluated | 12,584 | 5,395 | 450 | 18,429 | |||||||||||||||||||||
Total recorded investment in loans (1) | $ | 19,400,546 | $ | 455,492 | $ | 779,295 | $ | 20,635,333 | |||||||||||||||||
Loans to members, net (1) | $ | 19,356,187 | $ | 450,083 | $ | 773,023 | $ | 20,579,293 | |||||||||||||||||
May 31, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Ending balance of the allowance: | |||||||||||||||||||||||||
Collectively evaluated | $ | 41,246 | $ | 5,731 | $ | 3,921 | $ | 50,898 | |||||||||||||||||
Individually evaluated | - | 3,427 | - | 3,427 | |||||||||||||||||||||
Total ending balance of the allowance | $ | 41,246 | $ | 9,158 | $ | 3,921 | $ | 54,325 | |||||||||||||||||
Recorded investment in loans: | |||||||||||||||||||||||||
Collectively evaluated | $ | 18,967,864 | $ | 492,862 | $ | 773,141 | $ | 20,233,867 | |||||||||||||||||
Individually evaluated | 51,953 | 10,497 | - | 62,450 | |||||||||||||||||||||
Total recorded investment in loans (1) | $ | 19,019,817 | $ | 503,359 | $ | 773,141 | $ | 20,296,317 | |||||||||||||||||
Loans to members, net (1) | $ | 18,978,571 | $ | 494,201 | $ | 769,220 | $ | 20,241,992 | |||||||||||||||||
(1) Excludes deferred origination costs of $10 million at February 28, 2014 and May 31, 2013. | |||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||
Our recorded investment in individually-impaired loans and the related specific valuation allowance is summarized below by member class: | |||||||||||||||||||||||||
February 28, 2014 | 31-May-13 | ||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Related | Recorded | Related | |||||||||||||||||||||
Investment | Allowance | Investment | Allowance | ||||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||
CFC/Distribution | $ | 7,584 | $ | - | $ | 46,953 | $ | - | |||||||||||||||||
CFC/Power Supply | 5,000 | - | 5,000 | - | |||||||||||||||||||||
RTFC | 3,580 | - | - | - | |||||||||||||||||||||
Total | 16,164 | - | 51,953 | - | |||||||||||||||||||||
With a specific allowance recorded: | |||||||||||||||||||||||||
NCSC | 450 | 55 | |||||||||||||||||||||||
RTFC | 1,815 | 459 | 10,497 | 3,427 | |||||||||||||||||||||
Total | 2,265 | 514 | 10,497 | 3,427 | |||||||||||||||||||||
Total impaired loans | $ | 18,429 | $ | 514 | $ | 62,450 | $ | 3,427 | |||||||||||||||||
The table below represents the average recorded investment in impaired loans and the interest income recognized by member class: | |||||||||||||||||||||||||
Three Months Ended February 28, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||
CFC/Distribution | $ | 7,584 | $ | 70,111 | $ | - | $ | 435 | |||||||||||||||||
CFC/Power Supply | 5,000 | 5,000 | - | - | |||||||||||||||||||||
NCSC | 454 | - | - | - | |||||||||||||||||||||
RTFC | 5,527 | 6,497 | - | - | |||||||||||||||||||||
Total impaired loans | $ | 18,565 | $ | 81,608 | $ | - | $ | 435 | |||||||||||||||||
Nine Months Ended February 28, | |||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
CFC/Distribution | $ | 11,939 | $ | 208,632 | $ | 136 | $ | 13,522 | |||||||||||||||||
CFC/Power Supply | 5,000 | 5,000 | - | - | |||||||||||||||||||||
NCSC | 151 | - | - | - | |||||||||||||||||||||
RTFC | 7,735 | 6,668 | - | - | |||||||||||||||||||||
Total impaired loans | $ | 24,825 | $ | 220,300 | $ | 136 | $ | 13,522 | |||||||||||||||||
Nonperforming and Restructured Loans | |||||||||||||||||||||||||
Foregone interest income as a result of holding loans on non-accrual status: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
February 28, | February 28, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Nonperforming loans | $ | 120 | $ | 355 | $ | 440 | $ | 1,135 | |||||||||||||||||
Restructured loans | 122 | - | 367 | - | |||||||||||||||||||||
Total | $ | 242 | $ | 355 | $ | 807 | $ | 1,135 | |||||||||||||||||
At February 28, 2014 and May 31, 2013, nonperforming loans totaled $11 million or 0.05 percent, of loans outstanding and $15 million or 0.08 percent, of loans outstanding, respectively. One borrower in this group is currently in bankruptcy. The debtor and certain secured creditors have negotiated a settlement for an agreed upon plan of reorganization. Another borrower in this group received a reversal of an unfavorable ruling related to state Universal Service Fund (“USF”) payments. In March 2014, this borrower made a payment moving its loans to current payment status. There is one other borrower in this group that is currently seeking a buyer for its system, as it is not anticipated that it will have sufficient cash flow to repay its loans without the proceeds from the sale of the business. It is currently anticipated that even with the sale of the business, there will not be sufficient funds to repay the full amount owed. We have approval rights with respect to the sale of this company. | |||||||||||||||||||||||||
At February 28, 2014 and May 31, 2013, we had restructured loans totaling $8 million, or 0.04 percent, of loans outstanding and $47 million, or 0.23 percent, of loans outstanding, respectively, all of which were performing according to their restructured terms. No interest income was accrued on restructured loans during the three months ended February 28, 2014 compared to $0.4 million of interest income during the prior-year period. Approximately $0.1 million of interest income was accrued on restructured loans during the nine months ended February 28, 2014, compared with $14 million of interest income in the prior-year period. One of the restructured loans totaling $39 million at May 31, 2013, was refinanced without concession during the first quarter of fiscal year 2014, with the new loan classified as performing at February 28, 2014. This loan was on accrual status since the time of restructuring. At February 28, 2014, all restructured loans were on non-accrual status. | |||||||||||||||||||||||||
We believe our allowance for loan loss is appropriate to cover the losses inherent in our loan portfolio at February 28, 2014. | |||||||||||||||||||||||||
Pledging of Loans and Loans on Deposit | |||||||||||||||||||||||||
We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. | |||||||||||||||||||||||||
The following table summarizes our loans outstanding as collateral pledged to secure our collateral trust bonds, Clean Renewable Energy Bonds and notes payable to the Federal Agricultural Mortgage Corporation and the amount of the corresponding debt outstanding (see Note 5, Short-Term Debt and Credit Arrangements and Note 6, Long-Term Debt). | |||||||||||||||||||||||||
(Dollars in thousands) | February 28, 2014 | May 31, 2013 | |||||||||||||||||||||||
Collateral trust bonds: | |||||||||||||||||||||||||
2007 indenture | |||||||||||||||||||||||||
Distribution system mortgage notes | $ | 5,454,096 | $ | 5,674,804 | |||||||||||||||||||||
RUS guaranteed loans qualifying as permitted investments | 162,509 | 165,823 | |||||||||||||||||||||||
Total pledged collateral | $ | 5,616,605 | $ | 5,840,627 | |||||||||||||||||||||
Collateral trust bonds outstanding | 5,179,372 | 4,679,372 | |||||||||||||||||||||||
1994 indenture | |||||||||||||||||||||||||
Distribution system mortgage notes | $ | 1,567,122 | $ | 1,641,858 | |||||||||||||||||||||
Collateral trust bonds outstanding | 1,310,000 | 1,465,000 | |||||||||||||||||||||||
Federal Agricultural Mortgage Corporation: | |||||||||||||||||||||||||
Distribution and power supply system mortgage notes | $ | 1,784,959 | $ | 1,795,947 | |||||||||||||||||||||
Notes payable outstanding | 1,523,032 | 1,542,474 | |||||||||||||||||||||||
Clean Renewable Energy Bonds Series 2009A: | |||||||||||||||||||||||||
Distribution and power supply system mortgage notes | $ | 21,932 | $ | 23,536 | |||||||||||||||||||||
Cash | 7,221 | 7,634 | |||||||||||||||||||||||
Total pledged collateral | $ | 29,153 | $ | 31,170 | |||||||||||||||||||||
Notes payable outstanding | 18,230 | 19,888 | |||||||||||||||||||||||
We are required to maintain collateral on deposit in an amount at least equal to the balance of debt outstanding to the Federal Financing Bank of the United States Treasury issued under the Guaranteed Underwriter program of the U.S. Department of Agriculture (the “Guaranteed Underwriter Program”). See Note 6, Long-Term Debt. | |||||||||||||||||||||||||
The following table shows the collateral on deposit and the amount of the corresponding debt outstanding: | |||||||||||||||||||||||||
(Dollars in thousands) | February 28, 2014 | May 31, 2013 | |||||||||||||||||||||||
Federal Financing Bank | |||||||||||||||||||||||||
Distribution and power supply system mortgage notes on deposit | $ | 4,387,115 | $ | 3,903,786 | |||||||||||||||||||||
Notes payable outstanding | 3,999,000 | 3,674,000 | |||||||||||||||||||||||
Foreclosed_Assets
Foreclosed Assets | 9 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
Foreclosed Assets | ' | ||||||||||
Foreclosed Assets | ' | ||||||||||
-4 | Foreclosed Assets | ||||||||||
Assets received in satisfaction of loan receivables are initially recorded at fair value when received and subsequently evaluated for impairment. These assets are classified on the condensed consolidated balance sheets as foreclosed assets. At February 28, 2014, all foreclosed assets were held by DRP and CAH, which are wholly-owned subsidiaries of CFC. | |||||||||||
The activity for foreclosed assets is summarized below: | |||||||||||
Nine Months Ended February 28, 2014 | |||||||||||
(Dollars in thousands) | CAH | DRP | Total | ||||||||
Balance as of May 31, 2013 | $ | 248,049 | $ | 13,423 | $ | 261,472 | |||||
Results of operations | -7,853 | -629 | -8,482 | ||||||||
Cash investments (proceeds) | 7,410 | -5,250 | 2,160 | ||||||||
Balance as of February 28, 2014 | $ | 247,606 | $ | 7,544 | $ | 255,150 | |||||
During the nine months ended February 28, 2014, our investment in the DRP foreclosed assets decreased primarily due to net cash proceeds received of $5 million from the sale of raw land and developed lots and bonds reimbursements received. | |||||||||||
ShortTerm_Debt_and_Credit_Arra
Short-Term Debt and Credit Arrangements | 9 Months Ended | |||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||
Short-Term Debt and Credit Arrangements | ' | |||||||||||||||||
Short-Term Debt and Credit Arrangements | ' | |||||||||||||||||
(5) Short-Term Debt and Credit Arrangements | ||||||||||||||||||
The following is a summary of short-term debt outstanding: | ||||||||||||||||||
(Dollars in thousands) | February 28, | May 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||||
Short-term debt: | ||||||||||||||||||
Commercial paper sold through dealers, net of discounts (1) | $ | 2,611,744 | $ | 2,009,884 | ||||||||||||||
Commercial paper sold directly to members, at par (1) | 916,675 | 812,141 | ||||||||||||||||
Commercial paper sold directly to non-members, at par (1) | 20,160 | 39,298 | ||||||||||||||||
Select notes | 496,031 | 358,390 | ||||||||||||||||
Daily liquidity fund notes sold directly to members | 590,724 | 680,419 | ||||||||||||||||
Bank bid notes | 150,000 | 150,000 | ||||||||||||||||
Subtotal short-term debt | 4,785,334 | 4,050,132 | ||||||||||||||||
Long-term debt maturing within one year: | ||||||||||||||||||
Medium-term notes sold through dealers | 270,282 | 989,607 | ||||||||||||||||
Medium-term notes sold to members | 365,845 | 391,318 | ||||||||||||||||
Secured collateral trust bonds | 854,605 | 1,504,949 | ||||||||||||||||
Loan and guarantees subordinated certificates | 53,370 | 37,176 | ||||||||||||||||
Member capital securities | 181,480 | - | ||||||||||||||||
Secured notes payable | 27,174 | 742,402 | ||||||||||||||||
Unsecured notes payable | 3,897 | 3,899 | ||||||||||||||||
Total long-term debt maturing within one year | 1,756,653 | 3,669,351 | ||||||||||||||||
Total short-term debt | $ | 6,541,987 | $ | 7,719,483 | ||||||||||||||
(1) Backup liquidity is provided by our revolving credit agreements. | ||||||||||||||||||
Revolving Credit Agreements | ||||||||||||||||||
At February 28, 2014 and May 31, 2013, we had $3,445 million and $3,100 million, respectively, of commitments under revolving credit agreements. We may request letters of credit for up to $100 million under each agreement in place at February 28, 2014, which then reduces the amount available under the facility. Our bank lines of credit may be used for general corporate purposes; however, we use them primarily as backup liquidity for dealer and member commercial paper. | ||||||||||||||||||
The following table presents the total available and the outstanding letters of credit under our revolving credit agreements: | ||||||||||||||||||
Total Available | Letters of Credit Outstanding | |||||||||||||||||
(Dollars in thousands) | February 28, | May 31, | February 28, | May 31, | Maturity | Facility Fee | ||||||||||||
2014 | 2013 | 2014 | 2013 | Per Year (1) | ||||||||||||||
Three-year agreement | $ | 219,000 | $ | 219,000 | $ | - | $ | - | 21-Mar-14 | 15 basis points | ||||||||
Three-year agreement | 1,036,000 | 916,000 | - | - | 28-Oct-16 | 10 basis points | ||||||||||||
Four-year agreement | 1,122,500 | 1,007,500 | - | - | 28-Oct-17 | 10 basis points | ||||||||||||
Five-year agreement | 1,065,609 | 954,012 | 1,891 | 3,488 | 28-Oct-18 | 10 basis points | ||||||||||||
Total | 3,443,109 | $ | 3,096,512 | $ | 1,891 | $ | 3,488 | |||||||||||
(1) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. | ||||||||||||||||||
On October 28, 2013, we amended our $1,006 million three-year, $1,088 million four-year, and $1,033 million five-year revolving credit agreements to extend the maturity dates for the three-year, four-year, and five-year revolving credit agreements by one year each to October 28, 2016, 2017 and 2018, respectively. On February 7, 2014, we exercised our option to increase the commitment level for the three-year revolving credit agreement maturing on October 28, 2016, four-year revolving credit agreement maturing on October 28, 2017, and five-year revolving credit agreement maturing on October 28, 2018 by a total of $100 million to $1,036 million, $1,122 million, and $1,068 million, respectively. | ||||||||||||||||||
The following represents our required and actual financial ratios under the revolving credit agreements: | ||||||||||||||||||
Actual | ||||||||||||||||||
Requirement | February 28, 2014 | May 31, 2013 | ||||||||||||||||
Minimum average adjusted TIER over the six most recent fiscal quarters (1) | 1.025 | 1.28 | 1.27 | |||||||||||||||
Minimum adjusted TIER for the most recent fiscal year (1) (2) | 1.05 | 1.29 | 1.29 | |||||||||||||||
Maximum ratio of adjusted senior debt to total equity (1) | 10 | 5.92 | 5.85 | |||||||||||||||
(1) In addition to the adjustments made to the leverage ratio set forth in the Non-GAAP Financial Measures section, senior debt excludes guarantees to member systems that have certain investment-grade ratings from Moody’s Investors Service and Standard & Poor’s Corporation. The TIER and debt-to-equity calculations include the adjustments set forth in the Non-GAAP Financial Measures section and exclude the results of operations for CAH. | ||||||||||||||||||
(2) We must meet this requirement to retire patronage capital. | ||||||||||||||||||
At February 28, 2014 and May 31, 2013, we were in compliance with all covenants under our revolving credit agreements and there were no borrowings outstanding under these agreements. | ||||||||||||||||||
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||
Feb. 28, 2014 | ||||||||
Debt Instruments [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
(6) Long-Term Debt | ||||||||
The following is a summary of long-term debt outstanding: | ||||||||
(Dollars in thousands) | February 28, | May 31, | ||||||
2014 | 2013 | |||||||
Unsecured long-term debt: | ||||||||
Medium-term notes sold through dealers | $ | 1,783,171 | $ | 1,528,424 | ||||
Medium-term notes sold to members | 119,098 | 182,790 | ||||||
Subtotal | 1,902,269 | 1,711,214 | ||||||
Unamortized discount | -616 | -627 | ||||||
Total unsecured medium-term notes | 1,901,653 | 1,710,587 | ||||||
Unsecured notes payable | 4,032,167 | 3,709,074 | ||||||
Unamortized discount | -796 | -920 | ||||||
Total unsecured notes payable | 4,031,371 | 3,708,154 | ||||||
Total unsecured long-term debt | 5,933,024 | 5,418,741 | ||||||
Secured long-term debt: | ||||||||
Collateral trust bonds | 5,634,372 | 4,639,372 | ||||||
Unamortized discount | -178,564 | -181,640 | ||||||
Total secured collateral trust bonds | 5,455,808 | 4,457,732 | ||||||
Secured notes payable | 1,514,088 | 819,960 | ||||||
Total secured long-term debt | 6,969,896 | 5,277,692 | ||||||
Total long-term debt | $ | 12,902,920 | $ | 10,696,433 | ||||
In June 2013, we issued $400 million of 2.35 percent collateral trust bonds due 2020. In November 2013, we issued $400 million of 3.40 percent collateral trust bonds due 2023. On December 16, 2013, we redeemed $150 million of our $600 million 4.75 percent collateral trust bonds due March 1, 2014. The premium and unamortized issuance costs totaling $1.5 million were recorded during the third quarter of fiscal 2014. In January 2014, we issued $300 million of 1.10% collateral trust bonds due 2017 and $300 million of 2.15% collateral trust bonds due 2019. | ||||||||
At February 28, 2014 and May 31, 2013, we had unsecured notes payable totaling $3,999 million and $3,674 million, respectively, outstanding under bond purchase agreements with the Federal Financing Bank and a bond guarantee agreement with RUS issued under the Guaranteed Underwriter program, which provides guarantees to the Federal Financing Bank. During the nine months ended February 28, 2014, we borrowed $325 million under our committed loan facilities with the Federal Financing Bank. On November 21, 2013, we closed on a $500 million commitment from RUS to guarantee a loan from the Federal Financing Bank as part of the Guaranteed Underwriter Program that is available for advance through October 15, 2016. Advances under this facility have a 20 year maturity repayment period. At February 28, 2014, we had an aggregate amount of $924 million available under committed term loan facilities from the Federal Financing Bank as part of this program. We are required to maintain collateral on deposit in an amount at least equal to the balance of debt outstanding to the Federal Financing Bank under this program. | ||||||||
At February 28, 2014 and May 31, 2013, secured notes payable include $1,523 million and $1,542 million, respectively, in debt outstanding to the Federal Agricultural Mortgage Corporation under a note purchase agreement totaling $3,900 million. At February 28, 2014 and May 31, 2013, $26 million and $741 million, respectively, in debt outstanding to the Federal Agricultural Mortgage Corporation had a remaining maturity of less than one year and was classified as short-term debt and $1,497 and $801 million, respectively, was classified as long-term debt. Under the terms of the note purchase agreement, we can borrow up to $3,900 million at any time from the date of the agreement through January 11, 2016, and thereafter automatically extend the agreement on each anniversary date of the closing for an additional year, unless prior to any such anniversary date, the Federal Agricultural Mortgage Corporation provides CFC with a notice that the draw period will not be extended beyond the remaining term. | ||||||||
The agreement with the Federal Agricultural Mortgage Corporation is a revolving credit facility that allows us to borrow, repay and re-borrow funds at any time through maturity or from time to time as market conditions permit, provided that the principal amount at any time outstanding under the note purchase agreement is not more than the total available under the agreement. We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under the agreement. See Note 3, Loans and Commitments, for additional information on the collateral pledged to secure notes payable under these programs. | ||||||||
Subordinated_Deferrable_Debt
Subordinated Deferrable Debt | 9 Months Ended | |
Feb. 28, 2014 | ||
Subordinated Deferrable Debt | ' | |
Subordinated Deferrable Debt | ' | |
-7 | Subordinated Deferrable Debt | |
At February 28, 2014 and May 31, 2013, we had $400 million of 4.75 percent subordinated deferrable debt outstanding due 2043. Subordinated deferrable debt currently outstanding is callable at par on or after April 30, 2023. | ||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
-8 | Derivative Financial Instruments | |||||||||||||||||||
We are an end user of financial derivative instruments and not a swap dealer. We utilize derivatives such as interest rate swaps and treasury rate locks to manage our interest rate risk exposure. | ||||||||||||||||||||
The following table shows the notional amounts outstanding and the weighted-average rate paid and received for our interest rate swaps by type: | ||||||||||||||||||||
February 28, 2014 | May 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Notional | Weighted- | Weighted- | Notional | Weighted- | Weighted- | ||||||||||||||
Amount | Average | Average | amount | Average | Average | |||||||||||||||
Rate Paid | Rate Received | Rate Paid | Rate Received | |||||||||||||||||
Pay fixed-receive variable | $ | 5,172,809 | 3.36 | % | 0.22 | % | $ | 5,287,889 | 3.39 | % | 0.26 | % | ||||||||
Pay variable-receive fixed | 3,124,000 | 0.86 | 3.62 | 3,500,440 | 1.12 | 4.62 | ||||||||||||||
Total interest rate swaps | $ | 8,296,809 | 2.42 | 1.5 | $ | 8,788,329 | 2.49 | 2 | ||||||||||||
The derivative gains (losses) line item of the condensed consolidated statement of operations includes cash settlements and derivative forward value for derivative instruments that do not meet hedge accounting criteria. Gains and losses recorded on the condensed consolidated statements of operations for our interest rate swaps are summarized below: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
February 28, | February 28, | |||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Derivative cash settlements | $ | -18,788 | $ | -14,607 | $ | -54,944 | $ | -43,926 | ||||||||||||
Derivative forward value | -12,835 | 61,233 | 98,925 | 62,194 | ||||||||||||||||
Derivative (losses) gains | $ | -31,623 | $ | 46,626 | $ | 43,981 | $ | 18,268 | ||||||||||||
Rating Triggers for Derivatives | ||||||||||||||||||||
Some of our interest rate swaps have credit risk-related contingent features referred to as rating triggers. Rating triggers are not separate financial instruments and are not required to be accounted for separately as derivatives. At February 28, 2014, the following notional amounts of derivative instruments had rating triggers based on our senior unsecured credit ratings from Moody’s Investors Service or Standard & Poor’s Corporation falling to a level specified in the applicable agreements and are grouped into the categories below. In calculating the payments and collections required upon termination, we netted the agreements for each counterparty, as allowed by the underlying master agreements. At February 28, 2014, our senior unsecured credit ratings from Moody’s Investors Service and Standard & Poor’s Corporation were A2 and A, respectively. At February 28, 2014, both Moody’s Investors Service and Standard & Poor’s Corporation had our ratings on stable outlook. | ||||||||||||||||||||
(Dollars in thousands) | Notional | Our Required | Amount We | Net | ||||||||||||||||
Amount | Payment | Would Collect | Total | |||||||||||||||||
Mutual rating trigger if ratings: | ||||||||||||||||||||
fall to Baa1/BBB+ (1) | $ | - | $ | - | $ | - | $ | - | ||||||||||||
fall below Baa1/BBB+ (1) | 6,576,953 | -160,733 | 75,860 | -84,873 | ||||||||||||||||
Total | $ | 6,576,953 | $ | -160,733 | $ | 75,860 | $ | -84,873 | ||||||||||||
(1) Stated senior unsecured credit ratings are for Moody’s Investors Service and Standard & Poor’s Corporation, respectively. Under these rating triggers, if the credit rating for either counterparty falls to the level specified in the agreement, the other counterparty may, but is not obligated to, terminate the agreement. If either counterparty terminates the agreement, a net payment may be due from one counterparty to the other based on the fair value, excluding credit risk, of the underlying derivative instrument. | ||||||||||||||||||||
In addition to the rating triggers listed in the preceding table, at February 28, 2014, we had a total notional outstanding amount of $450 million of derivative instruments with one counterparty that would require the pledging of collateral totaling $9 million (the fair value of such derivative instruments excluding credit risk) if our senior unsecured ratings from Moody’s Investors Service were to fall below Baa2 or if the ratings from Standard & Poor’s Corporation were to fall below BBB. The aggregate fair value, net of the credit risk valuation adjustment, of all interest rate swaps with rating triggers that were in a net liability position at February 28, 2014 was $167 million. | ||||||||||||||||||||
Offsetting Derivatives Assets and Liabilities | ||||||||||||||||||||
As noted previously, 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 to the transaction. Notwithstanding netting provisions, our derivative assets and liabilities are not offset in the accompanying condensed consolidated balance sheets. The following table provides information on the gross fair value of derivative assets and liabilities and the gross amounts that are not offset in the condensed consolidated balance sheets. | ||||||||||||||||||||
February 28, 2014 | ||||||||||||||||||||
Gross Amounts | Gross | Net Amounts of | Gross Amounts | |||||||||||||||||
Assets/ | Not Offset in the | |||||||||||||||||||
Liabilities | Balance Sheet | |||||||||||||||||||
(Dollars in thousands) | of Recognized | Amounts | Presented | Financial | Cash | Net | ||||||||||||||
Assets/ | Offset in the | in the | Instruments | Collateral | Amount | |||||||||||||||
Liabilities | Balance Sheet | Balance Sheet | Pledged | |||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives - Interest rate swaps | $ | 261,598 | $ | - | $ | 261,598 | $ | 193,733 | $ | - | $ | 67,865 | ||||||||
Liabilities: | ||||||||||||||||||||
Derivatives - Interest rate swaps | 380,518 | - | 380,518 | 193,733 | - | 186,785 | ||||||||||||||
May 31, 2013 | ||||||||||||||||||||
Gross Amounts | Gross | Net Amounts of | Gross Amounts | |||||||||||||||||
Assets/ | Not Offset in the | |||||||||||||||||||
Liabilities | Balance Sheet | |||||||||||||||||||
(Dollars in thousands) | of Recognized | Amounts | Presented | Financial | Cash | Net | ||||||||||||||
Assets/ | Offset in the | in the | Instruments | Collateral | Amount | |||||||||||||||
Liabilities | Balance Sheet | Balance Sheet | Pledged | |||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives - Interest rate swaps | $ | 257,878 | $ | - | $ | 257,878 | $ | 203,161 | $ | - | $ | 54,717 | ||||||||
Liabilities: | ||||||||||||||||||||
Derivatives - Interest rate swaps | 475,278 | - | 475,278 | 203,161 | - | 272,117 | ||||||||||||||
Equity
Equity | 9 Months Ended | |
Feb. 28, 2014 | ||
Equity | ' | |
Equity | ' | |
-9 | Equity | |
In May 2013, the CFC Board of Directors authorized the allocation of $1 million of fiscal year 2013 net earnings to the Cooperative Educational Fund. In July 2013, the CFC Board of Directors authorized the allocation of the fiscal year 2013 net earnings as follows: $138 million to the members’ capital reserve and $81 million to members in the form of patronage capital. In July 2013, the CFC Board of Directors authorized the retirement of allocated net earnings totaling $41 million, representing 50 percent of the fiscal year 2013 allocation. This amount was returned to members in cash on October 1, 2013. Future allocations and retirements of net earnings may be made annually as determined by the CFC Board of Directors with due regard for its financial condition. The CFC Board of Directors has the authority to change the current practice for allocating and retiring net earnings at any time, subject to applicable laws and regulations. | ||
Guarantees
Guarantees | 9 Months Ended | |||||||
Feb. 28, 2014 | ||||||||
Guarantees | ' | |||||||
Guarantees | ' | |||||||
-10 | Guarantees | |||||||
The following table summarizes total guarantees by type of guarantee and member class: | ||||||||
(Dollars in thousands) | February 28, | May 31, | ||||||
2014 | 2013 | |||||||
Total by type: | ||||||||
Long-term tax-exempt bonds | $ | 519,185 | $ | 547,970 | ||||
Letters of credit | 472,008 | 447,683 | ||||||
Other guarantees | 115,018 | 117,118 | ||||||
Total | $ | 1,106,211 | $ | 1,112,771 | ||||
Total by member class: | ||||||||
CFC: | ||||||||
Distribution | $ | 209,336 | $ | 245,265 | ||||
Power supply | 801,785 | 810,900 | ||||||
Statewide and associate | 5,488 | 6,948 | ||||||
CFC total | 1,016,609 | 1,063,113 | ||||||
RTFC | 2,304 | 3,711 | ||||||
NCSC | 87,298 | 45,947 | ||||||
Total | $ | 1,106,211 | $ | 1,112,771 | ||||
The maturities for the long-term tax-exempt bonds and the related guarantees run through calendar year 2042. Amounts in the table represent the outstanding principal amount of the guaranteed bonds. At February 28, 2014, our maximum potential exposure for the $73 million of fixed-rate tax-exempt bonds is $120 million, representing principal and interest. Of the amounts shown in the table above for long-term tax-exempt bonds, $446 million and $473 million as of February 28, 2014 and May 31, 2013, respectively, are adjustable or floating-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 could be required to pay related to the remaining adjustable and floating-rate bonds. Many of these bonds have a call provision that in the event of a default allow us to trigger the call provision. This would limit our exposure to future interest payments on these bonds. Our maximum potential exposure is secured by a mortgage lien on all of the member system’s assets and future revenue. If the debt is accelerated because of a determination that the interest thereon is not tax-exempt, the system’s obligation to reimburse us for any guarantee payments will be treated as a long-term loan. | ||||||||
The maturities for letters of credit run through calendar year 2024. The amounts shown in the table above represent our maximum potential exposure, of which $131 million is secured at February 28, 2014. Security provisions include a mortgage lien on substantially all of the system’s assets, future revenue and the system’s investment in our commercial paper. | ||||||||
In addition to the letters of credit listed in the table, under master letter of credit facilities in place at February 28, 2014, we may be required to issue up to an additional $168 million in letters of credit to third parties for the benefit of our members. As of February 28, 2014, all of our master letter of credit facilities were subject to material adverse change clauses at the time of issuance. Also, at February 28, 2014 we had hybrid letter of credit facilities totaling $1,615 million that represent commitments that may be used for the issuance of letters of credit or line of credit loan advances, at the option of a borrower, and are included in unadvanced loan commitments for line of credit loans reported in Note 3, Loans and Commitments. Hybrid letter of credit facilities subject to material adverse change clauses at the time of issuance totaled $353 million at February 28, 2014. Prior to issuing a letter of credit, we would confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with the letter of credit terms and conditions. The remaining commitment under hybrid letter of credit facilities of $1,262 million may be used for the issuance of letters of credit as long as the borrower is in compliance with the terms and conditions of the facility. | ||||||||
The maturities for other guarantees listed in the table run through calendar year 2025. The maximum potential exposure for these other guarantees is $116 million, all of which is unsecured. | ||||||||
At February 28, 2014 and May 31, 2013, we had $456 million and $410 million of guarantees, respectively, representing 41 percent of total guarantees at the end of each period, under which our right of recovery from our members was not secured. | ||||||||
At February 28, 2014, we were the liquidity provider for a total of $571 million of variable-rate tax-exempt bonds issued for our member cooperatives. As liquidity provider on these $571 million of tax-exempt bonds, we are required to purchase bonds that are tendered or put by investors. Investors provide notice to the remarketing agent that they will tender or put a certain amount of bonds at the next interest rate reset date. If the remarketing agent is unable to sell such bonds to other investors by the next interest rate reset date, we have unconditionally agreed to purchase such bonds. On a total of $446 million of the bonds for which we are liquidity provider, we also provide a guarantee of all principal and interest, which is shown in the chart above as a tax-exempt bond guarantee. On a total of $125 million of tax-exempt bonds, our obligation as liquidity provider is in the form of a letter of credit which is reflected in our letters of credit. During the nine months ended February 28, 2014, we were not required to perform as liquidity provider pursuant to these obligations. | ||||||||
Guarantee Liability | ||||||||
At February 28, 2014 and May 31, 2013, we recorded a guarantee liability of $23 million and $25 million, respectively, which represents the contingent and non-contingent exposures related to guarantees and liquidity obligations associated with our members’ debt. The contingent guarantee liability at February 28, 2014 and May 31, 2013 was $2 million based on management’s estimate of exposure to losses within the guarantee portfolio. The remaining balance of the total guarantee liability of $21 million and $23 million, respectively, at February 28, 2014 and May 31, 2013 relates to our non-contingent obligation to stand ready to perform over the term of our guarantees and liquidity obligations that we have entered into or modified since January 1, 2003. | ||||||||
Activity in the guarantee liability account is summarized below: | ||||||||
(Dollars in thousands) | Nine Months Ended | |||||||
February 28, 2014 | ||||||||
Beginning balance as of May 31, 2013 | $ | 24,742 | ||||||
Net change in non-contingent liability | -1,729 | |||||||
Provision for contingent guarantee liability | 159 | |||||||
Ending balance as of February 28, 2014 | $ | 23,172 | ||||||
Liability as a percentage of total guarantees | 2.09 | % | ||||||
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
Fair Value Measurement | ' | |||||||||||||
Fair Value Disclosures | ' | |||||||||||||
-11 | Fair Value Measurement | |||||||||||||
Fair Value | ||||||||||||||
Assets and liabilities measured at fair value on either a recurring or non-recurring basis on the condensed consolidated balance sheets at February 28, 2014 and May 31, 2013 consisted of investments in common stock and preferred stock, derivative instruments, and collateral-dependent nonperforming loans. | ||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||
We account for derivative instruments in the condensed consolidated balance sheets as either an asset or liability measured at fair value. There is not an active secondary market for the types of interest rate swaps we use. Our process to estimate the fair value of our derivative instruments involves multiple steps including consideration of indicative quotes from counterparties and use of a discounted cash flow model. We obtain indicative quotes from the interest rate swap counterparties to estimate fair value on a quarterly basis. The indicative quotes are based on the expected future cash flow and the estimated yield curve. | ||||||||||||||
We perform analysis to validate the indicative quotes obtained from our swap counterparties and investigate any significant differences. We adjust the market values received from the counterparties using credit default swap levels for us and the counterparties. The credit default swap levels represent the credit risk premium required by a market participant based on the available information related to us and the counterparty. We only enter into swap agreements with counterparties that are participating in our revolving lines of credit at the time the exchange agreements are executed. All of our swap agreements are subject to master netting agreements. | ||||||||||||||
Our valuation technique for interest rate swaps is based on discounted cash flows and we utilize observable inputs, which reflect market data. To calculate fair value, we determine the forward curve. The forward curve allows us to determine the projected floating rate cash flows and the discount factors needed to calculate the net present value of each interest payment. The significant observable inputs for our derivatives include Spot LIBOR rates, Eurodollar futures contracts, and market swap rates. | ||||||||||||||
Fair values for our interest rate swaps are classified as a Level 2 valuation. We record the change in the fair value of our derivatives for each reporting period in the derivative gains (losses) line, included in non-interest income in the condensed consolidated statements of operations, as currently none of our derivatives qualify for hedge accounting. | ||||||||||||||
Our investments in equity securities include investments in the Federal Agricultural Mortgage Corporation Class A common stock and Series A preferred stock and are recorded in the condensed consolidated balance sheet at fair value. We calculate fair value of the investments based on the quoted price on the stock exchange where the stock is traded. That stock exchange is an active market based on the volume of shares transacted. Fair values for these securities are classified as a Level 1 valuation. For the three and nine months ended February 28, 2014 we recorded an unrealized gain of $2 million and an unrealized loss of $3 million, respectively, compared with an unrealized loss of $0.5 million and unrealized gain of $0.4 million, respectively, for the prior-year periods in accumulated other comprehensive income on the condensed consolidated balance sheet. | ||||||||||||||
Deferred compensation investments are recorded in the condensed consolidated balance sheets in the other assets category at fair value. We calculate fair value based on the quoted price on the stock exchange where the funds are traded. That stock exchange is an active market based on the volume of shares transacted. The amounts are invested in highly liquid indices and mutual funds and are classified within Level 1 of the fair value hierarchy. | ||||||||||||||
The following table presents our assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||
February 28, 2014 | May 31, 2013 | |||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 1 | Level 2 | ||||||||||
Derivative assets | $ | - | $ | 261,598 | $ | - | $ | 257,878 | ||||||
Derivative liabilities | - | 380,518 | - | 475,278 | ||||||||||
Investments in common and preferred stock | 28,702 | - | 31,632 | - | ||||||||||
Deferred compensation investments | 4,035 | - | 3,716 | - | ||||||||||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | ||||||||||||||
We may be required, from time to time, to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. Any adjustments to fair value usually result from application of lower-of-cost or fair value accounting or write-downs of individual assets. At February 28, 2014 and May 31, 2013, we measured certain collateral-dependent nonperforming loans at fair value. We utilize the collateral fair value underlying the loan in estimating the specific loan loss allowance. To estimate the fair value of the collateral, we may use third party valuation specialists, internal estimates or a combination of both. The valuation technique used to determine fair value of the nonperforming loans provided by both our internal staff and third party specialists includes market multiples (i.e., comparable companies). The significant unobservable inputs used in the determination of fair value include EBITDA multiples ranging from 3.5x to 5.0x. The material inputs used in estimating fair value by both internal staff and third party specialists are Level 3 within the fair value hierarchy. In these instances, the valuation is considered to be a non-recurring item. The significant unobservable inputs for Level 3 assets that are valued using fair values obtained from third party specialists are reviewed by our Credit Risk Management group to assess the reasonableness of the assumptions used and the accuracy of the work performed. In cases where we rely on third party inputs, we use the final unadjusted third party valuation analysis as support for any financial statement adjustments and disclosures to the financial statements. The valuation techniques and significant unobservable inputs for assets classified as Level 3 in the fair value hierarchy, which are measured using an internal model, are independently reviewed by other internal staff. | ||||||||||||||
Assets measured at fair value on a non-recurring basis at February 28, 2014 and May 31, 2013, were classified as Level 3 within the fair value hierarchy. Any increase or decrease to significant unobservable inputs used in the determination of fair value will not have a material impact on the fair value measurement of those assets or to the results of operations of the Company. For the three and nine months ended February 28, 2014 and 2013, respectively, there were no losses on our nonperforming loans. The following table provides the carrying/fair value of the related individual assets at February 28, 2014 and May 31, 2013: | ||||||||||||||
Level 3 Fair Value | ||||||||||||||
(Dollars in thousands) | February 28, | May 31, | ||||||||||||
2014 | 2013 | |||||||||||||
Nonperforming loans, net of specific reserves | $ | 10,331 | $ | 12,070 | ||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
(12) Fair Value of Financial Instruments | ||||||||||||||
Carrying and fair values for our financial instruments are presented as follows: | ||||||||||||||
February 28, 2014 | May 31, 2013 | |||||||||||||
(Dollars in thousands) | Carrying value | Fair Value | Carrying Value | Fair Value | ||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 842,915 | $ | 842,915 | $ | 177,062 | $ | 177,062 | ||||||
Restricted cash | 7,256 | 7,256 | 7,696 | 7,696 | ||||||||||
Investments | 28,702 | 28,702 | 31,632 | 31,632 | ||||||||||
Time deposits | 700,000 | 700,000 | 700,000 | 700,000 | ||||||||||
Deferred compensation investments | 4,035 | 4,035 | 3,716 | 3,716 | ||||||||||
Loans to members, net | 20,589,024 | 21,015,784 | 20,251,549 | 21,318,406 | ||||||||||
Debt service reserve funds | 39,353 | 39,353 | 39,803 | 39,803 | ||||||||||
Derivative instruments | 261,598 | 261,598 | 257,878 | 257,878 | ||||||||||
Liabilities: | ||||||||||||||
Short-term debt | 6,541,987 | 6,547,673 | 7,719,483 | 7,751,021 | ||||||||||
Long-term debt | 12,902,920 | 14,079,914 | 10,696,433 | 12,156,097 | ||||||||||
Guarantee liability | 23,172 | 26,061 | 24,742 | 27,730 | ||||||||||
Derivative instruments | 380,518 | 380,518 | 475,278 | 475,278 | ||||||||||
Subordinated deferrable debt | 400,000 | 372,200 | 400,000 | 404,300 | ||||||||||
Members’ subordinated certificates | 1,486,965 | 1,486,965 | 1,729,226 | 1,880,672 | ||||||||||
Off-balance sheet instruments: | ||||||||||||||
Commitments | - | - | - | - | ||||||||||
See Note 11, Fair Value Measurement, for more details on assets and liabilities measured at fair value on a recurring or non-recurring basis on our condensed consolidated balance sheets. We consider observable prices in the principal market in our valuations where possible. Fair value estimates were developed at the reporting date and may not necessarily be indicative of amounts that could ultimately be realized in a market transaction at a future date. There were no transfers between levels of the fair value hierarchy during the nine months ended February 28, 2014 and the year ended May 31, 2013. | ||||||||||||||
With the exception of redeeming debt under early redemption provisions, terminating derivative instruments under early termination provisions and allowing borrowers to prepay their loans, we held and intend to hold all financial instruments to maturity excluding common stock and preferred stock investments that have no stated maturity. Below is a summary of significant methodologies used in estimating fair value amounts at February 28, 2014 and May 31, 2013. | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||
Cash and cash equivalents includes cash and certificates of deposit with original maturities of less than 90 days. Cash and cash equivalents are valued at the carrying value, which approximates fair value. Cash and cash equivalents are classified within Level 1 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, cash and cash equivalents classified within Level 1 of the fair value hierarchy totaled $843 million and $177 million, respectively. | ||||||||||||||
Restricted Cash | ||||||||||||||
Restricted cash consists of cash and cash equivalents for which use is contractually restricted. Restricted cash is valued at the carrying value, which approximates fair value. Restricted cash is classified within Level 1 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, restricted cash classified within Level 1 of the fair value hierarchy totaled $7 million and $8 million, respectively. | ||||||||||||||
Investments | ||||||||||||||
Our investments include investments in the Federal Agricultural Mortgage Corporation Class A common stock and Series A preferred stock. The Class A common stock and Series A preferred stock are classified as available-for-sale securities and recorded in the condensed consolidated balance sheets at fair value. We calculate fair value based on the quoted price on the stock exchange where the stock is traded. That stock exchange is an active market based on the volume of shares transacted. The common stock and preferred stock are classified within Level 1 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, investments classified within Level 1 of the fair value hierarchy totaled $29 million and $32 million, respectively. | ||||||||||||||
Time Deposits | ||||||||||||||
Time deposits with financial institutions in interest bearing accounts have maturities of less than one year as of the reporting date and are valued at the carrying value, which approximates fair value. The deposits are classified within Level 2 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, time deposits classified within Level 2 of the fair value hierarchy totaled $700 million. | ||||||||||||||
Deferred Compensation Investments | ||||||||||||||
CFC offers a non-qualified 457(b) deferred compensation plan to highly compensated employees. Such amounts deferred by employees are invested by the company. The deferred compensation investments are recorded in the condensed consolidated balance sheets in the other assets category at fair value. We calculate fair value based on the quoted price on the stock exchange where the funds are traded. That stock exchange is an active market based on the volume of shares transacted. The amounts are invested in highly liquid indices and mutual funds and are classified within Level 1 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, deferred compensation investments classified within Level 1 of the fair value hierarchy totaled $4 million. | ||||||||||||||
Loans to Members, net | ||||||||||||||
As part of receiving a loan from us, our members have additional requirements and rights that are not typical of other financial institutions, such as the ability to receive a patronage capital allocation, the general requirement to purchase subordinated certificates or member capital securities to meet their capital contribution requirements as a condition of obtaining additional credit from us, the option to select fixed rates from one year to maturity with the fixed rate resetting or repricing at the end of each selected rate term, the ability to convert from a fixed rate to another fixed rate or the variable rate at any time, and certain interest rate discounts that are specific to the borrower’s activity with us. These features make it difficult to obtain market data for similar loans. Therefore, we must use other methods to estimate the fair value. | ||||||||||||||
Fair values for fixed-rate loans are estimated using a discounted cash flow technique by discounting the expected future expected cash flows using the current rates at which we would make similar loans to new borrowers for the same remaining maturities. The maturity date used in the fair value calculation of loans with a fixed rate for a selected rate term is the next repricing date since these borrowers must reprice their loans at various times throughout the life of the loan at the current market rate. | ||||||||||||||
Loans with different risk characteristics, specifically nonperforming and restructured loans, are valued by using collateral valuations or by adjusting cash flows for credit risk and discounting those cash flows using the current rates at which similar loans would be made by us to borrowers for the same remaining maturities. See Note 11, Fair Value Measurement, for more details about how we calculate the fair value of certain nonperforming loans. | ||||||||||||||
The carrying value of our variable rate loans adjusted for credit risk approximates fair value since variable-rate loans are eligible to be reset at least monthly. | ||||||||||||||
Loans to members are classified within Level 3 of the fair value hierarchy and at February 28, 2014 and May 31, 2013, totaled $21,016 million and $21,318 million, respectively. | ||||||||||||||
Debt Service Reserve Funds | ||||||||||||||
Debt service reserve funds represent cash and/or investments on deposit with the bond trustee for tax-exempt bonds that we guarantee. Debt service reserve fund investments are comprised of actively traded tax exempt municipal bonds and commercial paper. Carrying value is considered to be equal to fair value. Debt service reserve funds are classified within Level 1 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, debt service reserve funds classified within Level 1 of the fair value hierarchy totaled $39 million and $40 million, respectively. | ||||||||||||||
Short-Term Debt | ||||||||||||||
Short-term debt consists of commercial paper, select notes, bank bid notes, daily liquidity fund and other long-term debt due within one year. The fair value of short-term debt with maturities less than or equal to 90 days is carrying value, which is a reasonable estimate of fair value. The fair value of short-term debt with maturities greater than 90 days is estimated based on discounted cash flows and quoted market rates for debt with similar maturities. Short-term debt classified within Level 1 of the fair value hierarchy is comprised of dealer commercial paper, bank bid notes, and daily liquidity fund. At February 28, 2014 and May 31, 2013, short-term debt classified within Level 1 of the fair value hierarchy is based on quoted prices in active markets and totaled $3,353 million and $2,840 million, respectively. | ||||||||||||||
Short-term debt classified within Level 2 of the fair value hierarchy is comprised of member commercial paper, non-member commercial paper and select notes. At February 28, 2014 and May 31, 2013, short-term debt classified within Level 2 of the fair value hierarchy was determined based on discounted cash flows using discount rates consistent with current market rates for similar products with similar remaining terms and totaled $1,433 million and $1,210 million, respectively. Short-term debt classified within Level 2 also includes our collateral trust bonds and medium-term notes maturing within one year. At February 28, 2014 and May 31, 2013, such short-term debt classified within Level 2 of the fair value hierarchy totaled $1,495 million and $2,912 million, respectively. The fair value of short term debt classified within Level 2 of the fair value hierarchy was determined based on discounted cash flows using a pricing model that incorporates available market information such as indicative benchmark yields and credit spread assumptions that are provided by third party pricing services such as our banks that underwrite our other debt transactions. | ||||||||||||||
Short-term debt classified within Level 3 of the fair value hierarchy includes our notes payable, members’ subordinated certificates and members’ capital securities due within one year and totaled $267 million and $789 million at February 28, 2014 and May 31, 2013, respectively. The fair value of short-term debt classified within Level 3 of the fair value hierarchy was determined based on discounted cash flows using benchmark yields and spreads for similar instruments supplied by underwriter quotes for similar instruments, if available. Secondary trading quotes for our debt instruments used in the determination of fair value incorporate our credit risk. | ||||||||||||||
Long-Term Debt | ||||||||||||||
Long-term debt consists of collateral trust bonds, medium-term notes and long-term notes payable. We issue substantially all collateral trust bonds and some medium-term notes in underwritten public transactions. Collateral trust bonds and medium-term notes are classified within Level 2 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, long-term debt classified within Level 2 of the fair value hierarchy totaled $8,424 million and $7,410 million, respectively. The fair value of long-term debt classified within Level 2 of the fair value hierarchy was determined based on discounted cash flows. There is no active secondary trading for the underwritten collateral trust bonds and medium-term notes; therefore, dealer quotes and recent market prices are both used in estimating fair value. There is essentially no secondary market for the medium-term notes issued to our members or in transactions that are not underwritten; therefore, fair value is estimated based on observable benchmark yields and spreads for similar instruments supplied by banks that underwrite our other debt transactions. | ||||||||||||||
The long-term notes payable are issued in private placement transactions and there is no secondary trading of such debt. Long-term notes payable are classified within Level 3 of the fair value hierarchy. Long-term debt classified within Level 3 of the fair value hierarchy totaled $5,656 million and $4,746 million at February 28, 2014 and May 31, 2013, respectively. The fair value was determined based on discounted cash flows using benchmark yields and spreads for similar instruments supplied by underwriter quotes for similar instruments, if available. Secondary trading quotes for our debt instruments used in the determination of fair value incorporate our credit risk. | ||||||||||||||
Guarantees | ||||||||||||||
The fair value of our guarantee liability is based on the fair value of our contingent and non-contingent exposure related to our guarantees. The fair value of our contingent exposure for guarantees is based on management’s estimate of our exposure to losses within the guarantee portfolio using a discounted cash flow method. The fair value of our non-contingent exposure for guarantees issued is estimated based on the total unamortized balance of guarantee fees paid and guarantee fees to be paid discounted at our current short-term funding rate, which represents management’s estimate of the fair value of our obligation to stand ready to perform. Guarantees are classified within Level 3 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, guarantees classified within Level 3 of the fair value hierarchy totaled $26 million and $28 million, respectively. | ||||||||||||||
Subordinated Deferrable Debt | ||||||||||||||
Subordinated deferrable debt outstanding was issued in an underwritten public transaction. There is no active secondary trading for this subordinated deferrable debt; therefore, dealer quotes and recent market prices are both used in estimating fair value based on a discounted cash flow method. Subordinated deferrable debt is classified within Level 2 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, subordinated deferrable debt classified within Level 2 of the fair value hierarchy totaled $372 million and $404 million, respectively. | ||||||||||||||
Members’ Subordinated Certificates | ||||||||||||||
Members’ subordinated certificates include (i) membership subordinated certificates issued to our members, (ii) loan and guarantee subordinated certificates issued as a condition of obtaining loan funds or guarantees and (iii) member capital securities issued as voluntary investments by our members. All members’ subordinated certificates are non-transferable other than among members with CFC’s consent and there is no ready market from which to obtain fair value quotes. These certificates are valued at par.Members’ subordinated certificates are classified within Level 3 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, members’ subordinated certificates classified within Level 3 of the fair value hierarchy totaled $1,487 million and $1,881 million, respectively. | ||||||||||||||
Derivative Instruments | ||||||||||||||
We record derivative instruments in the condensed consolidated balance sheets as either an asset or liability measured at fair value. Because there is not an active secondary market for the types of interest rate swaps we use, we obtain indicative quotes from the interest rate swap counterparties to estimate fair value on a quarterly basis. The indicative quotes are based on the expected future cash flow and estimated yield curves. We adjust the market values received from the counterparties using credit default swap levels for us and the counterparties. The credit default swap levels represent the credit risk premium required by a market participant based on the available information related to us and the counterparty. Derivative instruments are classified within Level 2 of the fair value hierarchy. At February 28, 2014 and May 31, 2013, derivative asset instruments classified within Level 2 of the fair value hierarchy totaled $262 million and $258 million, respectively, and derivative liability instruments classified within Level 2 of the fair value hierarchy totaled $381 million and $475 million, respectively. | ||||||||||||||
Commitments | ||||||||||||||
The fair value of our commitments is estimated as the carrying value, or zero. Extensions of credit under these commitments, if exercised, would result in loans priced at market rates. | ||||||||||||||
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
Segment Information | ' | |||||||||||||
Segment Reporting | ' | |||||||||||||
-13 | Segment Information | |||||||||||||
The following tables contain the segment presentation for the condensed consolidated statements of operations for the three and nine months ended February 28, 2014 and 2013 and condensed consolidated balance sheets at February 28, 2014 and 2013. | ||||||||||||||
Three Months Ended February 28, 2014 | ||||||||||||||
(Dollars in thousands) | CFC | Other | Elimination | Consolidated | ||||||||||
Statement of operations: | ||||||||||||||
Interest income | $ | 234,927 | $ | 12,613 | $ | -8,808 | $ | 238,732 | ||||||
Interest expense | -163,157 | -9,185 | 8,808 | -163,534 | ||||||||||
Net interest income | 71,770 | 3,428 | - | 75,198 | ||||||||||
Provision for loan losses | -787 | - | - | -787 | ||||||||||
Net interest income after provision for loan losses | 70,983 | 3,428 | - | 74,411 | ||||||||||
Non-interest income: | ||||||||||||||
Fee and other income | 5,127 | 374 | 201 | 5,702 | ||||||||||
Derivative losses | -30,808 | -815 | - | -31,623 | ||||||||||
Results of operations from foreclosed assets | -1,164 | - | - | -1,164 | ||||||||||
Total non-interest income | -26,845 | -441 | 201 | -27,085 | ||||||||||
Non-interest expense: | ||||||||||||||
General and administrative expenses | -14,477 | -2,505 | -201 | -17,183 | ||||||||||
Provision for guarantee liability | -117 | - | - | -117 | ||||||||||
Losses on early extinguishment of debt | -1,452 | - | - | -1,452 | ||||||||||
Other | 210 | - | - | 210 | ||||||||||
Total non-interest expense | -15,836 | -2,505 | -201 | -18,542 | ||||||||||
Income prior to income taxes | 28,302 | 482 | - | 28,784 | ||||||||||
Income tax expense | - | -243 | - | -243 | ||||||||||
Net income | $ | 28,302 | $ | 239 | $ | - | $ | 28,541 | ||||||
Three Months Ended February 28, 2013 | ||||||||||||||
(Dollars in thousands) | CFC | Other | Elimination | Consolidated | ||||||||||
Statement of operations: | ||||||||||||||
Interest income | $ | 230,039 | $ | 13,971 | $ | -9,989 | $ | 234,021 | ||||||
Interest expense | -171,491 | -10,395 | 9,987 | -171,899 | ||||||||||
Net interest income | 58,548 | 3,576 | -2 | 62,122 | ||||||||||
Recovery of loan losses | 378 | - | - | 378 | ||||||||||
Net interest income after recovery of loan losses | 58,926 | 3,576 | -2 | 62,500 | ||||||||||
Non-interest income: | ||||||||||||||
Fee and other income | 6,229 | 335 | -227 | 6,337 | ||||||||||
Derivative gains (losses) | 44,954 | 1,690 | -18 | 46,626 | ||||||||||
Results of operations from foreclosed assets | 6,478 | - | - | 6,478 | ||||||||||
Total non-interest income | 57,661 | 2,025 | -245 | 59,441 | ||||||||||
Non-interest expense: | ||||||||||||||
General and administrative expenses | -27,638 | -2,870 | 229 | -30,279 | ||||||||||
Recovery of guarantee liability | 46 | - | - | 46 | ||||||||||
Other | -572 | - | 18 | -554 | ||||||||||
Total non-interest expense | -28,164 | -2,870 | 247 | -30,787 | ||||||||||
Income prior to income taxes | 88,423 | 2,731 | - | 91,154 | ||||||||||
Income tax expense | - | -1,067 | - | -1,067 | ||||||||||
Net income | $ | 88,423 | $ | 1,664 | $ | - | $ | 90,087 | ||||||
Nine Months Ended February 28, 2014 | ||||||||||||||
(Dollars in thousands) | CFC | Other | Elimination | Consolidated | ||||||||||
Statement of operations: | ||||||||||||||
Interest income | $ | 707,758 | $ | 37,958 | $ | -26,659 | $ | 719,057 | ||||||
Interest expense | -495,357 | -27,766 | 26,659 | -496,464 | ||||||||||
Net interest income | 212,401 | 10,192 | - | 222,593 | ||||||||||
Provision for loan losses | -3,161 | - | - | -3,161 | ||||||||||
Net interest income after provision for loan losses | 209,240 | 10,192 | - | 219,432 | ||||||||||
Non-interest income: | ||||||||||||||
Fee and other income | 13,314 | 1,068 | 601 | 14,983 | ||||||||||
Derivative gains | 43,543 | 438 | - | 43,981 | ||||||||||
Results of operations from foreclosed assets | -8,482 | - | - | -8,482 | ||||||||||
Total non-interest income | 48,375 | 1,506 | 601 | 50,482 | ||||||||||
Non-interest expense: | ||||||||||||||
General and administrative expenses | -47,140 | -6,630 | -601 | -54,371 | ||||||||||
Provision for guarantee liability | -159 | - | - | -159 | ||||||||||
Losses on early extinguishment of debt | -1,452 | - | - | -1,452 | ||||||||||
Other | -89 | 1 | - | -88 | ||||||||||
Total non-interest expense | -48,840 | -6,629 | -601 | -56,070 | ||||||||||
Income prior to income taxes | 208,775 | 5,069 | - | 213,844 | ||||||||||
Income tax expense | - | -2,045 | - | -2,045 | ||||||||||
Net income | $ | 208,775 | $ | 3,024 | $ | - | $ | 211,799 | ||||||
Assets: | ||||||||||||||
Total loans outstanding | $ | 20,605,354 | $ | 1,234,787 | $ | -1,204,808 | $ | 20,635,333 | ||||||
Deferred origination costs | 9,731 | - | - | 9,731 | ||||||||||
Less: Allowance for loan losses | -56,040 | - | - | -56,040 | ||||||||||
Loans to members, net | 20,559,045 | 1,234,787 | -1,204,808 | 20,589,024 | ||||||||||
Other assets | 2,492,657 | 145,847 | -120,199 | 2,518,305 | ||||||||||
Total assets | $ | 23,051,702 | $ | 1,380,634 | $ | -1,325,007 | $ | 23,107,329 | ||||||
Nine Months Ended February 28, 2013 | ||||||||||||||
(Dollars in thousands) | CFC | Other | Elimination | Consolidated | ||||||||||
Statement of operations: | ||||||||||||||
Interest income | $ | 703,721 | $ | 42,304 | $ | -30,289 | $ | 715,736 | ||||||
Interest expense | -521,525 | -31,558 | 30,287 | -522,796 | ||||||||||
Net interest income | 182,196 | 10,746 | -2 | 192,940 | ||||||||||
Provision for loan losses | -4,927 | - | - | -4,927 | ||||||||||
Net interest income after provision for loan losses | 177,269 | 10,746 | -2 | 188,013 | ||||||||||
Non-interest income: | ||||||||||||||
Fee and other income | 28,762 | 1,021 | -681 | 29,102 | ||||||||||
Derivative (gains) losses | 18,518 | -232 | -18 | 18,268 | ||||||||||
Results of operations from foreclosed assets | 804 | - | - | 804 | ||||||||||
Total non-interest income | 48,084 | 789 | -699 | 48,174 | ||||||||||
Non-interest expense: | ||||||||||||||
General and administrative expenses | -59,935 | -7,648 | 683 | -66,900 | ||||||||||
Recovery of guarantee liability | 147 | - | - | 147 | ||||||||||
Other | -5,119 | - | 18 | -5,101 | ||||||||||
Total non-interest expense | -64,907 | -7,648 | 701 | -71,854 | ||||||||||
Income prior to income taxes | 160,446 | 3,887 | - | 164,333 | ||||||||||
Income tax expense | - | -1,519 | - | -1,519 | ||||||||||
Net income | $ | 160,446 | $ | 2,368 | $ | - | $ | 162,814 | ||||||
Assets: | ||||||||||||||
Total loans outstanding | $ | 19,445,360 | $ | 1,245,392 | $ | -1,213,018 | $ | 19,477,734 | ||||||
Deferred origination costs | 8,414 | - | - | 8,414 | ||||||||||
Less: Allowance for loan losses | -148,411 | - | - | -148,411 | ||||||||||
Loans to members, net | 19,305,363 | 1,245,392 | -1,213,018 | 19,337,737 | ||||||||||
Other assets | 2,133,425 | 151,832 | -124,793 | 2,160,464 | ||||||||||
Total assets | $ | 21,438,788 | $ | 1,397,224 | $ | -1,337,811 | $ | 21,498,201 | ||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Basis of Presentation | ' | |||||||||||||
(a) | Basis of Presentation | |||||||||||||
The accompanying financial statements include the consolidated accounts of National Rural Utilities Cooperative Finance Corporation (“CFC”), Rural Telephone Finance Cooperative (“RTFC”), National Cooperative Services Corporation (“NCSC”) and certain entities created and controlled by CFC to hold foreclosed assets and accommodate loan securitization transactions, after elimination of intercompany accounts and transactions. | ||||||||||||||
Unless stated otherwise, references to “we,” “our” or “us” represent the consolidation of CFC, RTFC, NCSC and certain entities created and controlled by CFC to hold foreclosed assets and accommodate loan securitization transactions. Foreclosed assets are held by two subsidiaries controlled by CFC. Denton Realty Partners, LP (“DRP”) holds a land development loan and a related limited partnership interest. Caribbean Asset Holdings (“CAH”) holds our investment in cable and telecommunications operating entities in the United States Virgin Islands (“USVI”), British Virgin Islands and St. Maarten. | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the assets, liabilities, revenue and expenses reported in the financial statements, as well as amounts included in the notes thereto, including discussion and disclosure of contingent liabilities. The accounting estimates that require our most significant and subjective judgments include the allowance for loan losses and the determination of the fair value of our derivatives and certain aspects of our foreclosed assets. While we use our best estimates and judgments based on the known facts at the date of the financial statements, actual results could differ from these estimates as future events occur. | ||||||||||||||
During the preparation of our consolidated balance sheets for the quarter ended February 28, 2014, we determined that an intercompany elimination entry related to the consolidation of RTFC had been misclassified in each period since May 31, 2009, resulting in an overstatement of other liabilities and an understatement of noncontrolling interest at the end of each reported period. We corrected the misclassification in the quarter ended February 28, 2014, which resulted in a decrease of $11.5 million in other liabilities and a corresponding increase in noncontrolling interest. We concluded that the correction of the misclassification was not material to our financial position in the current period, and the misclassification was not material to our financial position in the previously reported periods. Accordingly, we did not revise prior period balance sheet amounts. The misclassification had no impact on our, consolidated statements of operations and comprehensive income, total assets, total liabilities and equity, or cash flows for any of our previously filed annual or quarterly financial statements, and did not impact the compliance with any of our financial debt covenants for any period. | ||||||||||||||
These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2013. Reclassifications of prior period amounts have been made to conform to the current period presentation. | ||||||||||||||
In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments (which consist only of normal recurring accruals) necessary for a fair presentation of our results of operations and financial position for the interim periods presented. | ||||||||||||||
Variable Interest Entities | ' | |||||||||||||
(b) | Variable Interest Entities | |||||||||||||
We are required to consolidate the financial results of RTFC and NCSC because CFC is the primary beneficiary of variable interests in RTFC and NCSC due to its exposure to absorbing the majority of their expected losses and because CFC manages the lending activities of RTFC and NCSC. | ||||||||||||||
Under separate guarantee agreements, RTFC and NCSC pay CFC a fee to indemnify against loan losses. CFC is the sole lender to and manages the business operations of RTFC through a management agreement in effect until December 1, 2016, which is automatically renewed for one-year terms thereafter unless terminated by either party. CFC is the primary source of funding to and manages the lending activities of NCSC through a management agreement that is automatically renewable on an annual basis unless terminated by either party. NCSC funds its lending programs through loans from CFC or debt guaranteed by CFC. In connection with these guarantees, NCSC must pay a guarantee fee and purchase from CFC interest-bearing subordinated term certificates in proportion to the related guarantee. | ||||||||||||||
RTFC and NCSC creditors have no recourse against CFC in the event of a default by RTFC and NCSC, unless there is a guarantee agreement under which CFC has guaranteed NCSC or RTFC debt obligations to a third party. At February 28, 2014, CFC had guaranteed $121 million of NCSC debt, derivative instruments and guarantees with third parties, and CFC’s maximum potential exposure for these instruments totaled $128 million. The maturities for NCSC obligations guaranteed by CFC extend through 2031. Guarantees of NCSC debt and derivative instruments are not included in Note 10, Guarantees, as the debt and derivatives are reported on the condensed consolidated balance sheet. At February 28, 2014, CFC guaranteed $2 million of RTFC guarantees with third parties. The maturities for RTFC obligations guaranteed by CFC extend through 2015 and are renewed on an annual basis. All CFC loans to RTFC and NCSC are secured by all assets and revenue of RTFC and NCSC, respectively. At February 28, 2014, RTFC had total assets of $577 million including loans outstanding to members of $455 million, and NCSC had total assets of $804 million including loans outstanding of $779 million. At February 28, 2014, CFC had committed to lend RTFC up to $4,000 million, of which $441 million was outstanding. At February 28, 2014, CFC had committed to provide up to $3,000 million of credit to NCSC, of which $884 million was outstanding, representing $763 million of outstanding loans and $121 million of credit enhancements. | ||||||||||||||
Loan Sales | ' | |||||||||||||
(c) | Loan Sales | |||||||||||||
We account for the transfer of loans resulting from direct loan sales to third parties and securitization transactions by removing the loans from our condensed consolidated balance sheets when control has been surrendered. We retain the servicing performance obligations on these loans and recognize related servicing fees on an accrual basis over the period for which servicing activity is provided. Deferred transaction costs and unamortized deferred loan origination costs related to the loans sold are included in determining the gain or loss on the sale. We do not hold any continuing interest in the loans sold to date other than servicing performance obligations. We have no obligation to repurchase loans from the purchaser, except in the case of breaches of representations and warranties. | ||||||||||||||
During the nine months ended February 28, 2014 and 2013, we sold CFC loans with outstanding balances totaling $106 million and $121 million, respectively, at par for cash. We recorded immaterial losses on the sale of these loans. | ||||||||||||||
Interest Income | ' | |||||||||||||
(d) | Interest Income | |||||||||||||
Interest income on loans is recognized using the effective interest method. The following table presents the components of interest income: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Interest on long-term fixed-rate loans | $ | 220,227 | $ | 216,716 | $ | 666,762 | $ | 652,903 | ||||||
Interest on long-term variable-rate loans | 5,217 | 5,203 | 14,871 | 16,121 | ||||||||||
Interest on line of credit loans | 8,302 | 7,961 | 23,379 | 23,066 | ||||||||||
Interest on restructured loans | - | 436 | 136 | 13,523 | ||||||||||
Interest on investments | 1,932 | 1,864 | 5,685 | 4,378 | ||||||||||
Fee income (1) | 3,054 | 1,841 | 8,224 | 5,745 | ||||||||||
Total interest income | $ | 238,732 | $ | 234,021 | $ | 719,057 | $ | 715,736 | ||||||
(1) Primarily related to conversion fees that are deferred and recognized using the effective interest method over the remaining original loan interest rate pricing term, except for a small portion of the total fee charged to cover administrative costs related to the conversion, which is recognized immediately. | ||||||||||||||
Deferred income recorded on the condensed consolidated balance sheets primarily consists of deferred conversion fees totaling $74 million and $21 million at February 28, 2014 and May 31, 2013, respectively. | ||||||||||||||
Interest Expense | ' | |||||||||||||
(e) | Interest Expense | |||||||||||||
The following table presents the components of interest expense: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Interest expense on debt (1): | ||||||||||||||
Short-term debt | $ | 1,406 | $ | 1,717 | $ | 4,445 | $ | 5,033 | ||||||
Medium-term notes | 20,369 | 21,294 | 62,920 | 74,010 | ||||||||||
Collateral trust bonds | 76,090 | 84,197 | 227,746 | 247,907 | ||||||||||
Subordinated deferrable debt | 4,750 | 2,806 | 14,250 | 8,419 | ||||||||||
Subordinated certificates | 19,777 | 20,345 | 60,897 | 61,227 | ||||||||||
Long-term notes payable | 37,130 | 37,622 | 113,828 | 113,933 | ||||||||||
Debt issuance costs (2) | 1,806 | 1,891 | 5,453 | 5,733 | ||||||||||
Fee expense (3) | 2,206 | 2,027 | 6,925 | 6,534 | ||||||||||
Total interest expense | $ | 163,534 | $ | 171,899 | $ | 496,464 | $ | 522,796 | ||||||
(1) Represents interest expense and the amortization of discounts on debt. | ||||||||||||||
(2) Includes amortization of all deferred charges related to the issuance of debt, principally underwriters’ fees, legal fees, printing costs and comfort letter fees. Amortization is calculated using the effective interest method or a method approximating the effective interest method. Also includes issuance costs related to dealer commercial paper, which are recognized as incurred. | ||||||||||||||
(3) Includes various fees related to funding activities, including fees paid to banks participating in our revolving credit agreements. | ||||||||||||||
We exclude indirect costs, if any, related to funding activities from interest expense. | ||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||
(f) | Derivative Financial Instruments | |||||||||||||
We are an end user of financial derivative instruments and not a swap dealer. We use derivatives such as interest rate swaps and treasury rate locks to mitigate interest rate risk. Consistent with the accounting standards for derivative financial instruments, we record derivative instruments (including certain derivative instruments embedded in other contracts) on the condensed consolidated balance sheets as either an asset or liability measured at fair value. In recording the fair value of derivative assets and liabilities, we do not net our positions under contracts with individual counterparties. Accrued cash settlements on our derivatives are recorded as accrued interest and other receivables and accrued interest payable line items of the condensed consolidated balance sheet. Changes in the fair value of derivative instruments along with realized gains and losses from cash settlements are recognized in the derivative gains (losses) line item of the condensed consolidated statement of operations unless specific hedge accounting criteria are met. | ||||||||||||||
We formally document, designate and assess the effectiveness of derivatives designated for hedge accounting treatment, which typically include treasury rate locks. If applicable cash flow hedge accounting criteria are met for these derivatives, changes in the fair value of the derivative instruments are recorded in other comprehensive income, and net cash settlements are recorded in interest expense. The gain or loss on derivatives used as a cash flow hedge of a forecasted debt transaction is recorded as a component of other comprehensive income (loss) and reclassified to interest expense using the effective interest method over the term of the hedged debt. Any ineffectiveness in the hedging relationship is recognized in the derivative gains (losses) line of the statement of operations. | ||||||||||||||
Cash activity associated with interest rate swaps is classified as an operating activity in the condensed consolidated statements of cash flows. | ||||||||||||||
New Accounting Pronouncements | ' | |||||||||||||
(g) | New Accounting Pronouncements | |||||||||||||
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update, Disclosures about Offsetting Assets and Liabilities, which requires enhanced disclosures about certain financial assets and liabilities that are subject to enforceable master netting agreements or similar agreements, or that have otherwise been offset on the balance sheet under certain specific conditions that permit net presentation. In January 2013, the Financial Accounting Standards Board issued Accounting Standards Update, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, which clarifies that the scope of the above guidance is limited to derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions. The guidance was effective for us beginning in the first quarter of fiscal year 2014. See Note 8, Derivative Financial Instruments, for additional disclosures about offsetting assets and liabilities. | ||||||||||||||
In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update, Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income, which requires enhanced disclosures of the amounts reclassified out of Accumulated Other Comprehensive Income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of Accumulated Other Comprehensive Income by the respective line items of net income, but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. The guidance was effective for us beginning in the first quarter of fiscal year 2014 and did not have a material effect on the condensed consolidated financial statements, as the amounts reclassified out of other comprehensive income are immaterial for all periods presented. | ||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Interest and Other Income | ' | |||||||||||||
The following table presents the components of interest income: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Interest on long-term fixed-rate loans | $ | 220,227 | $ | 216,716 | $ | 666,762 | $ | 652,903 | ||||||
Interest on long-term variable-rate loans | 5,217 | 5,203 | 14,871 | 16,121 | ||||||||||
Interest on line of credit loans | 8,302 | 7,961 | 23,379 | 23,066 | ||||||||||
Interest on restructured loans | - | 436 | 136 | 13,523 | ||||||||||
Interest on investments | 1,932 | 1,864 | 5,685 | 4,378 | ||||||||||
Fee income (1) | 3,054 | 1,841 | 8,224 | 5,745 | ||||||||||
Total interest income | $ | 238,732 | $ | 234,021 | $ | 719,057 | $ | 715,736 | ||||||
(1) Primarily related to conversion fees that are deferred and recognized using the effective interest method over the remaining original loan interest rate pricing term, except for a small portion of the total fee charged to cover administrative costs related to the conversion, which is recognized immediately. | ||||||||||||||
Schedule of Components of Interest (Expense) | ' | |||||||||||||
The following table presents the components of interest expense: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||
Interest expense on debt (1): | ||||||||||||||
Short-term debt | $ | 1,406 | $ | 1,717 | $ | 4,445 | $ | 5,033 | ||||||
Medium-term notes | 20,369 | 21,294 | 62,920 | 74,010 | ||||||||||
Collateral trust bonds | 76,090 | 84,197 | 227,746 | 247,907 | ||||||||||
Subordinated deferrable debt | 4,750 | 2,806 | 14,250 | 8,419 | ||||||||||
Subordinated certificates | 19,777 | 20,345 | 60,897 | 61,227 | ||||||||||
Long-term notes payable | 37,130 | 37,622 | 113,828 | 113,933 | ||||||||||
Debt issuance costs (2) | 1,806 | 1,891 | 5,453 | 5,733 | ||||||||||
Fee expense (3) | 2,206 | 2,027 | 6,925 | 6,534 | ||||||||||
Total interest expense | $ | 163,534 | $ | 171,899 | $ | 496,464 | $ | 522,796 | ||||||
(1) Represents interest expense and the amortization of discounts on debt. | ||||||||||||||
(2) Includes amortization of all deferred charges related to the issuance of debt, principally underwriters’ fees, legal fees, printing costs and comfort letter fees. Amortization is calculated using the effective interest method or a method approximating the effective interest method. Also includes issuance costs related to dealer commercial paper, which are recognized as incurred. | ||||||||||||||
(3) Includes various fees related to funding activities, including fees paid to banks participating in our revolving credit agreements. | ||||||||||||||
Loans_and_Commitments_Tables
Loans and Commitments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Feb. 28, 2014 | |||||||||||||||||||||||||
Loans and Commitments | ' | ||||||||||||||||||||||||
Schedule of Financing Receivable and Unadvanced Commitments | ' | ||||||||||||||||||||||||
Loans outstanding to members and unadvanced commitments by loan type and by member class are summarized as follows: | |||||||||||||||||||||||||
February 28, 2014 | May 31, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Loans | Unadvanced | Loans | Unadvanced | |||||||||||||||||||||
Outstanding | Commitments (1) | Outstanding | Commitments (1) | ||||||||||||||||||||||
Total by loan type (2): | |||||||||||||||||||||||||
Long-term fixed-rate loans | $ | 18,185,111 | $ | - | $ | 17,918,268 | $ | - | |||||||||||||||||
Long-term variable-rate loans | 770,883 | 4,547,813 | 782,006 | 4,718,162 | |||||||||||||||||||||
Loans guaranteed by RUS | 203,173 | - | 210,815 | - | |||||||||||||||||||||
Line of credit loans | 1,476,166 | 8,996,845 | 1,385,228 | 8,704,586 | |||||||||||||||||||||
Total loans outstanding | 20,635,333 | 13,544,658 | 20,296,317 | 13,422,748 | |||||||||||||||||||||
Deferred origination costs | 9,731 | - | 9,557 | - | |||||||||||||||||||||
Less: Allowance for loan losses | -56,040 | - | -54,325 | - | |||||||||||||||||||||
Net loans outstanding | $ | 20,589,024 | $ | 13,544,658 | $ | 20,251,549 | $ | 13,422,748 | |||||||||||||||||
Total by member class (2): | |||||||||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Distribution | $ | 15,186,620 | $ | 9,115,128 | $ | 14,941,192 | $ | 8,948,826 | |||||||||||||||||
Power supply | 4,149,104 | 3,024,666 | 4,007,669 | 3,145,518 | |||||||||||||||||||||
Statewide and associate | 64,822 | 128,440 | 70,956 | 102,087 | |||||||||||||||||||||
CFC total | 19,400,546 | 12,268,234 | 19,019,817 | 12,196,431 | |||||||||||||||||||||
RTFC | 455,492 | 312,466 | 503,359 | 317,344 | |||||||||||||||||||||
NCSC | 779,295 | 963,958 | 773,141 | 908,973 | |||||||||||||||||||||
Total loans outstanding | $ | 20,635,333 | $ | 13,544,658 | $ | 20,296,317 | $ | 13,422,748 | |||||||||||||||||
(1) The interest rate on unadvanced commitments is not set until drawn, therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. | |||||||||||||||||||||||||
(2) Includes nonperforming and restructured loans. | |||||||||||||||||||||||||
Nonperforming and restructured loans outstanding and unadvanced commitments to members included in the table above are summarized by loan type and by company below: | |||||||||||||||||||||||||
February 28, 2014 | May 31, 2013 | ||||||||||||||||||||||||
Loans | Unadvanced | Loans | Unadvanced | ||||||||||||||||||||||
(Dollars in thousands) | Outstanding | Commitments (1) | Outstanding | Commitments (1) | |||||||||||||||||||||
Nonperforming and restructured loans: | |||||||||||||||||||||||||
Nonperforming loans: | |||||||||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Line of credit loans | $ | 5,000 | $ | - | $ | 5,000 | $ | - | |||||||||||||||||
NCSC: | |||||||||||||||||||||||||
Line of credit loans | 450 | - | - | - | |||||||||||||||||||||
RTFC: | |||||||||||||||||||||||||
Long-term fixed-rate loans | 2,786 | - | 3,690 | - | |||||||||||||||||||||
Long-term variable-rate loans | 2,609 | - | 6,807 | - | |||||||||||||||||||||
Total nonperforming loans | $ | 10,845 | $ | - | $ | 15,497 | $ | - | |||||||||||||||||
Restructured loans: | |||||||||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Long-term fixed-rate loans | $ | 7,584 | $ | - | $ | 46,953 | $ | - | |||||||||||||||||
Line of credit loans (2) | - | - | - | 5,000 | |||||||||||||||||||||
Total restructured loans | $ | 7,584 | $ | - | $ | 46,953 | $ | 5,000 | |||||||||||||||||
(1) The interest rate on unadvanced commitments is not set until drawn, therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. | |||||||||||||||||||||||||
(2) The unadvanced commitment is part of the terms outlined in the related restructure agreement. Loans advanced under these commitments would be classified as performing. Principal and interest due under these performing loans would be in addition to scheduled payments due under the restructured loan agreement. | |||||||||||||||||||||||||
Schedule of Available Balance and Maturities of Committed Lines of Credit | ' | ||||||||||||||||||||||||
The following table summarizes the available balance at February 28, 2014 under committed lines of credit that are not subject to a material adverse change clause and the related maturities by fiscal year and thereafter as follows: | |||||||||||||||||||||||||
Available | Notional Maturities of Committed Lines of Credit | ||||||||||||||||||||||||
(Dollars in thousands) | Balance | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | ||||||||||||||||||
Committed lines of credit | $ | 2,248,762 | $ | 19,048 | $ | 55,026 | $ | 61,000 | $ | 466,061 | $ | 861,098 | $ | 786,529 | |||||||||||
Past Due Financing Receivables | ' | ||||||||||||||||||||||||
The tables below present the payment status, including an aging of delinquent loans, of the recorded investment in loans outstanding by member class at February 28, 2014 and May 31, 2013: | |||||||||||||||||||||||||
February 28, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days | 90 Days or | Total | Total | Non-accrual | |||||||||||||||||||
Past Due | More | Past Due | Financing | Loans | |||||||||||||||||||||
Past Due (1) | Receivables | ||||||||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Distribution | $ | 15,186,620 | $ | - | $ | - | $ | - | $ | 15,186,620 | $ | 7,584 | |||||||||||||
Power supply | 4,144,104 | - | 5,000 | 5,000 | 4,149,104 | 5,000 | |||||||||||||||||||
Statewide and associate | 64,822 | - | - | - | 64,822 | - | |||||||||||||||||||
CFC total | 19,395,546 | - | 5,000 | 5,000 | 19,400,546 | 12,584 | |||||||||||||||||||
RTFC | 451,913 | - | 3,579 | 3,579 | 455,492 | 5,395 | |||||||||||||||||||
NCSC | 779,295 | - | - | - | 779,295 | 450 | |||||||||||||||||||
Total loans outstanding | $ | 20,626,754 | $ | - | $ | 8,579 | $ | 8,579 | $ | 20,635,333 | $ | 18,429 | |||||||||||||
As a % of total loans | 99.96 | % | 0 | % | 0.04 | % | 0.04 | % | 100 | % | 0.09 | % | |||||||||||||
(1) All loans 90 days or more past due are on non-accrual status. | |||||||||||||||||||||||||
May 31, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-89 Days | 90 Days or | Total | Total | Non-accrual | |||||||||||||||||||
Past Due | More | Past Due | Financing | Loans | |||||||||||||||||||||
Past Due (1) | Receivables | ||||||||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Distribution | $ | 14,938,351 | $ | 2,841 | $ | - | $ | 2,841 | $ | 14,941,192 | $ | 7,584 | |||||||||||||
Power supply | 4,002,669 | - | 5,000 | 5,000 | 4,007,669 | 5,000 | |||||||||||||||||||
Statewide and associate | 70,956 | - | - | - | 70,956 | - | |||||||||||||||||||
CFC total | 19,011,976 | 2,841 | 5,000 | 7,841 | 19,019,817 | 12,584 | |||||||||||||||||||
RTFC | 495,040 | 4,163 | 4,156 | 8,319 | 503,359 | 10,497 | |||||||||||||||||||
NCSC | 773,141 | - | - | - | 773,141 | - | |||||||||||||||||||
Total loans outstanding | $ | 20,280,157 | $ | 7,004 | $ | 9,156 | $ | 16,160 | $ | 20,296,317 | $ | 23,081 | |||||||||||||
As a % of total loans | 99.92 | % | 0.03 | % | 0.05 | % | 0.08 | % | 100 | % | 0.11 | % | |||||||||||||
(1) All loans 90 days or more past due are on non-accrual status. | |||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | ' | ||||||||||||||||||||||||
The following table presents our loan portfolio by risk rating category and member class at February 28, 2014 and May 31, 2013: | |||||||||||||||||||||||||
February 28, 2014 | 31-May-13 | ||||||||||||||||||||||||
(Dollars in thousands) | Pass | Criticized | Total | Pass | Criticized | Total | |||||||||||||||||||
CFC: | |||||||||||||||||||||||||
Distribution | $ | 15,168,785 | $ | 17,835 | $ | 15,186,620 | $ | 14,922,558 | $ | 18,634 | $ | 14,941,192 | |||||||||||||
Power supply | 4,144,104 | 5,000 | 4,149,104 | 4,002,669 | 5,000 | 4,007,669 | |||||||||||||||||||
Statewide and associate | 64,542 | 280 | 64,822 | 70,668 | 288 | 70,956 | |||||||||||||||||||
CFC total | 19,377,431 | 23,115 | 19,400,546 | 18,995,895 | 23,922 | 19,019,817 | |||||||||||||||||||
RTFC | 441,757 | 13,735 | 455,492 | 483,058 | 20,301 | 503,359 | |||||||||||||||||||
NCSC | 776,981 | 2,314 | 779,295 | 770,419 | 2,722 | 773,141 | |||||||||||||||||||
Total loans outstanding | $ | 20,596,169 | $ | 39,164 | $ | 20,635,333 | $ | 20,249,372 | $ | 46,945 | $ | 20,296,317 | |||||||||||||
Schedule of Financing Receivable Secured and Unsecured | ' | ||||||||||||||||||||||||
The following table summarizes our secured and unsecured loans outstanding by loan type and by company: | |||||||||||||||||||||||||
February 28, 2014 | May 31, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | Secured | % | Unsecured | % | Secured | % | Unsecured | % | |||||||||||||||||
Total by loan type: | |||||||||||||||||||||||||
Long-term fixed-rate loans | $ | 17,128,504 | 94 | % | $ | 1,056,607 | 6 | % | $ | 16,871,594 | 94 | % | $ | 1,046,674 | 6 | % | |||||||||
Long-term variable-rate loans | 679,446 | 88 | 91,437 | 12 | 676,075 | 86 | 105,931 | 14 | |||||||||||||||||
Loans guaranteed by RUS | 203,173 | 100 | - | - | 210,815 | 100 | - | - | |||||||||||||||||
Line of credit loans | 307,820 | 21 | 1,168,346 | 79 | 294,575 | 21 | 1,090,653 | 79 | |||||||||||||||||
Total loans outstanding | $ | 18,318,943 | 89 | $ | 2,316,390 | 11 | $ | 18,053,059 | 89 | $ | 2,243,258 | 11 | |||||||||||||
Total by company: | |||||||||||||||||||||||||
CFC | $ | 17,323,741 | 89 | % | $ | 2,076,805 | 11 | % | $ | 17,049,029 | 90 | % | $ | 1,970,788 | 10 | % | |||||||||
RTFC | 436,001 | 96 | 19,491 | 4 | 482,647 | 96 | 20,712 | 4 | |||||||||||||||||
NCSC | 559,201 | 72 | 220,094 | 28 | 521,383 | 67 | 251,758 | 33 | |||||||||||||||||
Total loans outstanding | $ | 18,318,943 | 89 | $ | 2,316,390 | 11 | $ | 18,053,059 | 89 | $ | 2,243,258 | 11 | |||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | ||||||||||||||||||||||||
The tables below summarize the changes in the allowance for loan losses by company for the three and nine months ended February 28, 2014. | |||||||||||||||||||||||||
Three Months Ended February 28, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Balance as of November 30, 2013 | $ | 42,762 | $ | 7,859 | $ | 4,578 | $ | 55,199 | |||||||||||||||||
Provision for (recovery of) loan losses | 1,543 | -2,450 | 1,694 | 787 | |||||||||||||||||||||
Charge-offs | - | - | - | - | |||||||||||||||||||||
Recoveries of loans previously charged-off | 54 | - | - | 54 | |||||||||||||||||||||
Balance as of February 28, 2014 | $ | 44,359 | $ | 5,409 | $ | 6,272 | $ | 56,040 | |||||||||||||||||
Three Months Ended February 28, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Balance as of November 30, 2012 | $ | 133,578 | $ | 8,314 | $ | 6,845 | $ | 148,737 | |||||||||||||||||
Provision for (recovery of) loan losses | 432 | -214 | -596 | -378 | |||||||||||||||||||||
Recoveries of loans previously charged-off | 52 | - | - | 52 | |||||||||||||||||||||
Balance as of February 28, 2013 | $ | 134,062 | $ | 8,100 | $ | 6,249 | $ | 148,411 | |||||||||||||||||
Nine Months Ended February 28, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Balance as of May 31, 2013 | $ | 41,246 | $ | 9,158 | $ | 3,921 | $ | 54,325 | |||||||||||||||||
Provision for (recovery of) loan losses | 2,953 | -2,143 | 2,351 | 3,161 | |||||||||||||||||||||
Charge-offs | - | -1,606 | - | -1,606 | |||||||||||||||||||||
Recoveries of loans previously charged-off | 160 | - | - | 160 | |||||||||||||||||||||
Balance as of February 28, 2014 | $ | 44,359 | $ | 5,409 | $ | 6,272 | $ | 56,040 | |||||||||||||||||
Nine Months Ended February 28, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Balance as of May 31, 2012 | $ | 126,941 | $ | 8,562 | $ | 7,823 | $ | 143,326 | |||||||||||||||||
Provision for (recovery of) loan losses | 6,963 | -462 | -1,574 | 4,927 | |||||||||||||||||||||
Recoveries of loans previously charged-off | 158 | - | - | 158 | |||||||||||||||||||||
Balance as of February 28, 2013 | $ | 134,062 | $ | 8,100 | $ | 6,249 | $ | 148,411 | |||||||||||||||||
The tables below present the loan loss allowance and the recorded investment in outstanding loans by impairment methodology and by company: | |||||||||||||||||||||||||
February 28, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Ending balance of the allowance: | |||||||||||||||||||||||||
Collectively evaluated | $ | 44,359 | $ | 4,950 | $ | 6,217 | $ | 55,526 | |||||||||||||||||
Individually evaluated | - | 459 | 55 | 514 | |||||||||||||||||||||
Total ending balance of the allowance | $ | 44,359 | $ | 5,409 | $ | 6,272 | $ | 56,040 | |||||||||||||||||
Recorded investment in loans: | |||||||||||||||||||||||||
Collectively evaluated | $ | 19,387,962 | $ | 450,097 | $ | 778,845 | $ | 20,616,904 | |||||||||||||||||
Individually evaluated | 12,584 | 5,395 | 450 | 18,429 | |||||||||||||||||||||
Total recorded investment in loans (1) | $ | 19,400,546 | $ | 455,492 | $ | 779,295 | $ | 20,635,333 | |||||||||||||||||
Loans to members, net (1) | $ | 19,356,187 | $ | 450,083 | $ | 773,023 | $ | 20,579,293 | |||||||||||||||||
May 31, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | CFC | RTFC | NCSC | Total | |||||||||||||||||||||
Ending balance of the allowance: | |||||||||||||||||||||||||
Collectively evaluated | $ | 41,246 | $ | 5,731 | $ | 3,921 | $ | 50,898 | |||||||||||||||||
Individually evaluated | - | 3,427 | - | 3,427 | |||||||||||||||||||||
Total ending balance of the allowance | $ | 41,246 | $ | 9,158 | $ | 3,921 | $ | 54,325 | |||||||||||||||||
Recorded investment in loans: | |||||||||||||||||||||||||
Collectively evaluated | $ | 18,967,864 | $ | 492,862 | $ | 773,141 | $ | 20,233,867 | |||||||||||||||||
Individually evaluated | 51,953 | 10,497 | - | 62,450 | |||||||||||||||||||||
Total recorded investment in loans (1) | $ | 19,019,817 | $ | 503,359 | $ | 773,141 | $ | 20,296,317 | |||||||||||||||||
Loans to members, net (1) | $ | 18,978,571 | $ | 494,201 | $ | 769,220 | $ | 20,241,992 | |||||||||||||||||
(1) Excludes deferred origination costs of $10 million at February 28, 2014 and May 31, 2013. | |||||||||||||||||||||||||
Impaired Financing Receivable with Related Allowance Recorded Investment | ' | ||||||||||||||||||||||||
Our recorded investment in individually-impaired loans and the related specific valuation allowance is summarized below by member class: | |||||||||||||||||||||||||
February 28, 2014 | 31-May-13 | ||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Related | Recorded | Related | |||||||||||||||||||||
Investment | Allowance | Investment | Allowance | ||||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||
CFC/Distribution | $ | 7,584 | $ | - | $ | 46,953 | $ | - | |||||||||||||||||
CFC/Power Supply | 5,000 | - | 5,000 | - | |||||||||||||||||||||
RTFC | 3,580 | - | - | - | |||||||||||||||||||||
Total | 16,164 | - | 51,953 | - | |||||||||||||||||||||
With a specific allowance recorded: | |||||||||||||||||||||||||
NCSC | 450 | 55 | |||||||||||||||||||||||
RTFC | 1,815 | 459 | 10,497 | 3,427 | |||||||||||||||||||||
Total | 2,265 | 514 | 10,497 | 3,427 | |||||||||||||||||||||
Total impaired loans | $ | 18,429 | $ | 514 | $ | 62,450 | $ | 3,427 | |||||||||||||||||
Impaired Financing Receivable Average Recorded Investment and Interest Income Recognized | ' | ||||||||||||||||||||||||
The table below represents the average recorded investment in impaired loans and the interest income recognized by member class: | |||||||||||||||||||||||||
Three Months Ended February 28, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||
CFC/Distribution | $ | 7,584 | $ | 70,111 | $ | - | $ | 435 | |||||||||||||||||
CFC/Power Supply | 5,000 | 5,000 | - | - | |||||||||||||||||||||
NCSC | 454 | - | - | - | |||||||||||||||||||||
RTFC | 5,527 | 6,497 | - | - | |||||||||||||||||||||
Total impaired loans | $ | 18,565 | $ | 81,608 | $ | - | $ | 435 | |||||||||||||||||
Nine Months Ended February 28, | |||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
CFC/Distribution | $ | 11,939 | $ | 208,632 | $ | 136 | $ | 13,522 | |||||||||||||||||
CFC/Power Supply | 5,000 | 5,000 | - | - | |||||||||||||||||||||
NCSC | 151 | - | - | - | |||||||||||||||||||||
RTFC | 7,735 | 6,668 | - | - | |||||||||||||||||||||
Total impaired loans | $ | 24,825 | $ | 220,300 | $ | 136 | $ | 13,522 | |||||||||||||||||
Schedule of Loans and Leases Receivable Impaired Interest Reduced on Nonaccrual Loans | ' | ||||||||||||||||||||||||
Foregone interest income as a result of holding loans on non-accrual status: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
February 28, | February 28, | ||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Nonperforming loans | $ | 120 | $ | 355 | $ | 440 | $ | 1,135 | |||||||||||||||||
Restructured loans | 122 | - | 367 | - | |||||||||||||||||||||
Total | $ | 242 | $ | 355 | $ | 807 | $ | 1,135 | |||||||||||||||||
Schedule of Financing Receivables Pledged as Collateral Against Debt Instruments | ' | ||||||||||||||||||||||||
The following table summarizes our loans outstanding as collateral pledged to secure our collateral trust bonds, Clean Renewable Energy Bonds and notes payable to the Federal Agricultural Mortgage Corporation and the amount of the corresponding debt outstanding (see Note 5, Short-Term Debt and Credit Arrangements and Note 6, Long-Term Debt). | |||||||||||||||||||||||||
(Dollars in thousands) | February 28, 2014 | May 31, 2013 | |||||||||||||||||||||||
Collateral trust bonds: | |||||||||||||||||||||||||
2007 indenture | |||||||||||||||||||||||||
Distribution system mortgage notes | $ | 5,454,096 | $ | 5,674,804 | |||||||||||||||||||||
RUS guaranteed loans qualifying as permitted investments | 162,509 | 165,823 | |||||||||||||||||||||||
Total pledged collateral | $ | 5,616,605 | $ | 5,840,627 | |||||||||||||||||||||
Collateral trust bonds outstanding | 5,179,372 | 4,679,372 | |||||||||||||||||||||||
1994 indenture | |||||||||||||||||||||||||
Distribution system mortgage notes | $ | 1,567,122 | $ | 1,641,858 | |||||||||||||||||||||
Collateral trust bonds outstanding | 1,310,000 | 1,465,000 | |||||||||||||||||||||||
Federal Agricultural Mortgage Corporation: | |||||||||||||||||||||||||
Distribution and power supply system mortgage notes | $ | 1,784,959 | $ | 1,795,947 | |||||||||||||||||||||
Notes payable outstanding | 1,523,032 | 1,542,474 | |||||||||||||||||||||||
Clean Renewable Energy Bonds Series 2009A: | |||||||||||||||||||||||||
Distribution and power supply system mortgage notes | $ | 21,932 | $ | 23,536 | |||||||||||||||||||||
Cash | 7,221 | 7,634 | |||||||||||||||||||||||
Total pledged collateral | $ | 29,153 | $ | 31,170 | |||||||||||||||||||||
Notes payable outstanding | 18,230 | 19,888 | |||||||||||||||||||||||
The following table shows the collateral on deposit and the amount of the corresponding debt outstanding: | |||||||||||||||||||||||||
(Dollars in thousands) | February 28, 2014 | May 31, 2013 | |||||||||||||||||||||||
Federal Financing Bank | |||||||||||||||||||||||||
Distribution and power supply system mortgage notes on deposit | $ | 4,387,115 | $ | 3,903,786 | |||||||||||||||||||||
Notes payable outstanding | 3,999,000 | 3,674,000 | |||||||||||||||||||||||
Foreclosed_Assets_Tables
Foreclosed Assets (Tables) | 9 Months Ended | ||||||||||
Feb. 28, 2014 | |||||||||||
Foreclosed Assets | ' | ||||||||||
Schedule of Foreclosed Assets Roll Forward | ' | ||||||||||
The activity for foreclosed assets is summarized below: | |||||||||||
Nine Months Ended February 28, 2014 | |||||||||||
(Dollars in thousands) | CAH | DRP | Total | ||||||||
Balance as of May 31, 2013 | $ | 248,049 | $ | 13,423 | $ | 261,472 | |||||
Results of operations | -7,853 | -629 | -8,482 | ||||||||
Cash investments (proceeds) | 7,410 | -5,250 | 2,160 | ||||||||
Balance as of February 28, 2014 | $ | 247,606 | $ | 7,544 | $ | 255,150 | |||||
ShortTerm_Debt_and_Credit_Arra1
Short-Term Debt and Credit Arrangements (Tables) | 9 Months Ended | |||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||
Short-Term Debt and Credit Arrangements | ' | |||||||||||||||||
Schedule of Debt | ' | |||||||||||||||||
The following is a summary of short-term debt outstanding: | ||||||||||||||||||
(Dollars in thousands) | February 28, | May 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||||
Short-term debt: | ||||||||||||||||||
Commercial paper sold through dealers, net of discounts (1) | $ | 2,611,744 | $ | 2,009,884 | ||||||||||||||
Commercial paper sold directly to members, at par (1) | 916,675 | 812,141 | ||||||||||||||||
Commercial paper sold directly to non-members, at par (1) | 20,160 | 39,298 | ||||||||||||||||
Select notes | 496,031 | 358,390 | ||||||||||||||||
Daily liquidity fund notes sold directly to members | 590,724 | 680,419 | ||||||||||||||||
Bank bid notes | 150,000 | 150,000 | ||||||||||||||||
Subtotal short-term debt | 4,785,334 | 4,050,132 | ||||||||||||||||
Long-term debt maturing within one year: | ||||||||||||||||||
Medium-term notes sold through dealers | 270,282 | 989,607 | ||||||||||||||||
Medium-term notes sold to members | 365,845 | 391,318 | ||||||||||||||||
Secured collateral trust bonds | 854,605 | 1,504,949 | ||||||||||||||||
Loan and guarantees subordinated certificates | 53,370 | 37,176 | ||||||||||||||||
Member capital securities | 181,480 | - | ||||||||||||||||
Secured notes payable | 27,174 | 742,402 | ||||||||||||||||
Unsecured notes payable | 3,897 | 3,899 | ||||||||||||||||
Total long-term debt maturing within one year | 1,756,653 | 3,669,351 | ||||||||||||||||
Total short-term debt | $ | 6,541,987 | $ | 7,719,483 | ||||||||||||||
(1) Backup liquidity is provided by our revolving credit agreements. | ||||||||||||||||||
Schedule of Line of Credit Facilities | ' | |||||||||||||||||
The following table presents the total available and the outstanding letters of credit under our revolving credit agreements: | ||||||||||||||||||
Total Available | Letters of Credit Outstanding | |||||||||||||||||
(Dollars in thousands) | February 28, | May 31, | February 28, | May 31, | Maturity | Facility Fee | ||||||||||||
2014 | 2013 | 2014 | 2013 | Per Year (1) | ||||||||||||||
Three-year agreement | $ | 219,000 | $ | 219,000 | $ | - | $ | - | 21-Mar-14 | 15 basis points | ||||||||
Three-year agreement | 1,036,000 | 916,000 | - | - | 28-Oct-16 | 10 basis points | ||||||||||||
Four-year agreement | 1,122,500 | 1,007,500 | - | - | 28-Oct-17 | 10 basis points | ||||||||||||
Five-year agreement | 1,065,609 | 954,012 | 1,891 | 3,488 | 28-Oct-18 | 10 basis points | ||||||||||||
Total | 3,443,109 | $ | 3,096,512 | $ | 1,891 | $ | 3,488 | |||||||||||
(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. | ||||||||||||||||||
Schedule of Line of Credit Facility Covenants | ' | |||||||||||||||||
The following represents our required and actual financial ratios under the revolving credit agreements: | ||||||||||||||||||
Actual | ||||||||||||||||||
Requirement | February 28, 2014 | May 31, 2013 | ||||||||||||||||
Minimum average adjusted TIER over the six most recent fiscal quarters (1) | 1.025 | 1.28 | 1.27 | |||||||||||||||
Minimum adjusted TIER for the most recent fiscal year (1) (2) | 1.05 | 1.29 | 1.29 | |||||||||||||||
Maximum ratio of adjusted senior debt to total equity (1) | 10 | 5.92 | 5.85 | |||||||||||||||
(1) In addition to the adjustments made to the leverage ratio set forth in the Non-GAAP Financial Measures section, senior debt excludes guarantees to member systems that have certain investment-grade ratings from Moody’s Investors Service and Standard & Poor’s Corporation. The TIER and debt-to-equity calculations include the adjustments set forth in the Non-GAAP Financial Measures section and exclude the results of operations for CAH. | ||||||||||||||||||
(2) We must meet this requirement to retire patronage capital. | ||||||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||
Feb. 28, 2014 | ||||||||
Debt Instruments [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments | ' | |||||||
The following is a summary of long-term debt outstanding: | ||||||||
(Dollars in thousands) | February 28, | May 31, | ||||||
2014 | 2013 | |||||||
Unsecured long-term debt: | ||||||||
Medium-term notes sold through dealers | $ | 1,783,171 | $ | 1,528,424 | ||||
Medium-term notes sold to members | 119,098 | 182,790 | ||||||
Subtotal | 1,902,269 | 1,711,214 | ||||||
Unamortized discount | -616 | -627 | ||||||
Total unsecured medium-term notes | 1,901,653 | 1,710,587 | ||||||
Unsecured notes payable | 4,032,167 | 3,709,074 | ||||||
Unamortized discount | -796 | -920 | ||||||
Total unsecured notes payable | 4,031,371 | 3,708,154 | ||||||
Total unsecured long-term debt | 5,933,024 | 5,418,741 | ||||||
Secured long-term debt: | ||||||||
Collateral trust bonds | 5,634,372 | 4,639,372 | ||||||
Unamortized discount | -178,564 | -181,640 | ||||||
Total secured collateral trust bonds | 5,455,808 | 4,457,732 | ||||||
Secured notes payable | 1,514,088 | 819,960 | ||||||
Total secured long-term debt | 6,969,896 | 5,277,692 | ||||||
Total long-term debt | $ | 12,902,920 | $ | 10,696,433 | ||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||
Feb. 28, 2014 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Schedule of Derivative Instruments | ' | |||||||||||||||||||
The following table shows the notional amounts outstanding and the weighted-average rate paid and received for our interest rate swaps by type: | ||||||||||||||||||||
February 28, 2014 | May 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Notional | Weighted- | Weighted- | Notional | Weighted- | Weighted- | ||||||||||||||
Amount | Average | Average | amount | Average | Average | |||||||||||||||
Rate Paid | Rate Received | Rate Paid | Rate Received | |||||||||||||||||
Pay fixed-receive variable | $ | 5,172,809 | 3.36 | % | 0.22 | % | $ | 5,287,889 | 3.39 | % | 0.26 | % | ||||||||
Pay variable-receive fixed | 3,124,000 | 0.86 | 3.62 | 3,500,440 | 1.12 | 4.62 | ||||||||||||||
Total interest rate swaps | $ | 8,296,809 | 2.42 | 1.5 | $ | 8,788,329 | 2.49 | 2 | ||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||||||||||||
Gains and losses recorded on the condensed consolidated statements of operations for our interest rate swaps are summarized below: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
February 28, | February 28, | |||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Derivative cash settlements | $ | -18,788 | $ | -14,607 | $ | -54,944 | $ | -43,926 | ||||||||||||
Derivative forward value | -12,835 | 61,233 | 98,925 | 62,194 | ||||||||||||||||
Derivative (losses) gains | $ | -31,623 | $ | 46,626 | $ | 43,981 | $ | |||||||||||||
Disclosure of Credit Derivatives | ' | |||||||||||||||||||
At February 28, 2014, our senior unsecured credit ratings from Moody’s Investors Service and Standard & Poor’s Corporation were A2 and A, respectively. At February 28, 2014, both Moody’s Investors Service and Standard & Poor’s Corporation had our ratings on stable outlook. | ||||||||||||||||||||
(Dollars in thousands) | Notional | Our Required | Amount We | Net | ||||||||||||||||
Amount | Payment | Would Collect | Total | |||||||||||||||||
Mutual rating trigger if ratings: | ||||||||||||||||||||
fall to Baa1/BBB+ (1) | $ | - | $ | - | $ | - | $ | - | ||||||||||||
fall below Baa1/BBB+ (1) | 6,576,953 | -160,733 | 75,860 | -84,873 | ||||||||||||||||
Total | $ | 6,576,953 | $ | -160,733 | $ | 75,860 | $ | -84,873 | ||||||||||||
(1) Stated senior unsecured credit ratings are for Moody’s Investors Service and Standard & Poor’s Corporation, respectively. Under these rating triggers, if the credit rating for either counterparty falls to the level specified in the agreement, the other counterparty may, but is not obligated to, terminate the agreement. If either counterparty terminates the agreement, a net payment may be due from one counterparty to the other based on the fair value, excluding credit risk, of the underlying derivative instrument. | ||||||||||||||||||||
Offsetting Assets and Liabilities | ' | |||||||||||||||||||
The following table provides information on the gross fair value of derivative assets and liabilities and the gross amounts that are not offset in the condensed consolidated balance sheets. | ||||||||||||||||||||
February 28, 2014 | ||||||||||||||||||||
Gross Amounts | Gross | Net Amounts of | Gross Amounts | |||||||||||||||||
Assets/ | Not Offset in the | |||||||||||||||||||
Liabilities | Balance Sheet | |||||||||||||||||||
(Dollars in thousands) | of Recognized | Amounts | Presented | Financial | Cash | Net | ||||||||||||||
Assets/ | Offset in the | in the | Instruments | Collateral | Amount | |||||||||||||||
Liabilities | Balance Sheet | Balance Sheet | Pledged | |||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives - Interest rate swaps | $ | 261,598 | $ | - | $ | 261,598 | $ | 193,733 | $ | - | $ | 67,865 | ||||||||
Liabilities: | ||||||||||||||||||||
Derivatives - Interest rate swaps | 380,518 | - | 380,518 | 193,733 | - | 186,785 | ||||||||||||||
May 31, 2013 | ||||||||||||||||||||
Gross Amounts | Gross | Net Amounts of | Gross Amounts | |||||||||||||||||
Assets/ | Not Offset in the | |||||||||||||||||||
Liabilities | Balance Sheet | |||||||||||||||||||
(Dollars in thousands) | of Recognized | Amounts | Presented | Financial | Cash | Net | ||||||||||||||
Assets/ | Offset in the | in the | Instruments | Collateral | Amount | |||||||||||||||
Liabilities | Balance Sheet | Balance Sheet | Pledged | |||||||||||||||||
Assets: | ||||||||||||||||||||
Derivatives - Interest rate swaps | $ | 257,878 | $ | - | $ | 257,878 | $ | 203,161 | $ | - | $ | 54,717 | ||||||||
Liabilities: | ||||||||||||||||||||
Derivatives - Interest rate swaps | 475,278 | - | 475,278 | 203,161 | - | 272,117 | ||||||||||||||
Guarantees_Tables
Guarantees (Tables) | 9 Months Ended | |||||||
Feb. 28, 2014 | ||||||||
Guarantees | ' | |||||||
Schedule of Guarantor Obligations | ' | |||||||
The following table summarizes total guarantees by type of guarantee and member class: | ||||||||
(Dollars in thousands) | February 28, | May 31, | ||||||
2014 | 2013 | |||||||
Total by type: | ||||||||
Long-term tax-exempt bonds | $ | 519,185 | $ | 547,970 | ||||
Letters of credit | 472,008 | 447,683 | ||||||
Other guarantees | 115,018 | 117,118 | ||||||
Total | $ | 1,106,211 | $ | 1,112,771 | ||||
Total by member class: | ||||||||
CFC: | ||||||||
Distribution | $ | 209,336 | $ | 245,265 | ||||
Power supply | 801,785 | 810,900 | ||||||
Statewide and associate | 5,488 | 6,948 | ||||||
CFC total | 1,016,609 | 1,063,113 | ||||||
RTFC | 2,304 | 3,711 | ||||||
NCSC | 87,298 | 45,947 | ||||||
Total | $ | 1,106,211 | $ | 1,112,771 | ||||
Schedule of Activity in Guarantee Liability Account | ' | |||||||
Activity in the guarantee liability account is summarized below: | ||||||||
(Dollars in thousands) | Nine Months Ended | |||||||
February 28, 2014 | ||||||||
Beginning balance as of May 31, 2013 | $ | 24,742 | ||||||
Net change in non-contingent liability | -1,729 | |||||||
Provision for contingent guarantee liability | 159 | |||||||
Ending balance as of February 28, 2014 | $ | 23,172 | ||||||
Liability as a percentage of total guarantees | 2.09 | % | ||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
Fair Value Measurement | ' | |||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||
The following table presents our assets and liabilities that are measured at fair value on a recurring basis: | ||||||||||||||
February 28, 2014 | May 31, 2013 | |||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 1 | Level 2 | ||||||||||
Derivative assets | $ | - | $ | 261,598 | $ | - | $ | 257,878 | ||||||
Derivative liabilities | - | 380,518 | - | 475,278 | ||||||||||
Investments in common and preferred stock | 28,702 | - | 31,632 | - | ||||||||||
Deferred compensation investments | 4,035 | - | 3,716 | - | ||||||||||
Fair Value Measurements, Nonrecurring | ' | |||||||||||||
The following table provides the carrying/fair value of the related individual assets at February 28, 2014 and May 31, 2013: | ||||||||||||||
Level 3 Fair Value | ||||||||||||||
(Dollars in thousands) | February 28, | May 31, | ||||||||||||
2014 | 2013 | |||||||||||||
Nonperforming loans, net of specific reserves | $ | 10,331 | $ | 12,070 | ||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value, by Balance Sheet Grouping | ' | |||||||||||||
Carrying and fair values for our financial instruments are presented as follows: | ||||||||||||||
February 28, 2014 | May 31, 2013 | |||||||||||||
(Dollars in thousands) | Carrying value | Fair Value | Carrying Value | Fair Value | ||||||||||
Assets: | ||||||||||||||
Cash and cash equivalents | $ | 842,915 | $ | 842,915 | $ | 177,062 | $ | 177,062 | ||||||
Restricted cash | 7,256 | 7,256 | 7,696 | 7,696 | ||||||||||
Investments | 28,702 | 28,702 | 31,632 | 31,632 | ||||||||||
Time deposits | 700,000 | 700,000 | 700,000 | 700,000 | ||||||||||
Deferred compensation investments | 4,035 | 4,035 | 3,716 | 3,716 | ||||||||||
Loans to members, net | 20,589,024 | 21,015,784 | 20,251,549 | 21,318,406 | ||||||||||
Debt service reserve funds | 39,353 | 39,353 | 39,803 | 39,803 | ||||||||||
Derivative instruments | 261,598 | 261,598 | 257,878 | 257,878 | ||||||||||
Liabilities: | ||||||||||||||
Short-term debt | 6,541,987 | 6,547,673 | 7,719,483 | 7,751,021 | ||||||||||
Long-term debt | 12,902,920 | 14,079,914 | 10,696,433 | 12,156,097 | ||||||||||
Guarantee liability | 23,172 | 26,061 | 24,742 | 27,730 | ||||||||||
Derivative instruments | 380,518 | 380,518 | 475,278 | 475,278 | ||||||||||
Subordinated deferrable debt | 400,000 | 372,200 | 400,000 | 404,300 | ||||||||||
Members’ subordinated certificates | 1,486,965 | 1,486,965 | 1,729,226 | 1,880,672 | ||||||||||
Off-balance sheet instruments: | ||||||||||||||
Commitments | - | - | - | - | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||
Feb. 28, 2014 | ||||||||||||||
Segment Information | ' | |||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||||
The following tables contain the segment presentation for the condensed consolidated statements of operations for the three and nine months ended February 28, 2014 and 2013 and condensed consolidated balance sheets at February 28, 2014 and 2013. | ||||||||||||||
Three Months Ended February 28, 2014 | ||||||||||||||
(Dollars in thousands) | CFC | Other | Elimination | Consolidated | ||||||||||
Statement of operations: | ||||||||||||||
Interest income | $ | 234,927 | $ | 12,613 | $ | -8,808 | $ | 238,732 | ||||||
Interest expense | -163,157 | -9,185 | 8,808 | -163,534 | ||||||||||
Net interest income | 71,770 | 3,428 | - | 75,198 | ||||||||||
Provision for loan losses | -787 | - | - | -787 | ||||||||||
Net interest income after provision for loan losses | 70,983 | 3,428 | - | 74,411 | ||||||||||
Non-interest income: | ||||||||||||||
Fee and other income | 5,127 | 374 | 201 | 5,702 | ||||||||||
Derivative losses | -30,808 | -815 | - | -31,623 | ||||||||||
Results of operations from foreclosed assets | -1,164 | - | - | -1,164 | ||||||||||
Total non-interest income | -26,845 | -441 | 201 | -27,085 | ||||||||||
Non-interest expense: | ||||||||||||||
General and administrative expenses | -14,477 | -2,505 | -201 | -17,183 | ||||||||||
Provision for guarantee liability | -117 | - | - | -117 | ||||||||||
Losses on early extinguishment of debt | -1,452 | - | - | -1,452 | ||||||||||
Other | 210 | - | - | 210 | ||||||||||
Total non-interest expense | -15,836 | -2,505 | -201 | -18,542 | ||||||||||
Income prior to income taxes | 28,302 | 482 | - | 28,784 | ||||||||||
Income tax expense | - | -243 | - | -243 | ||||||||||
Net income | $ | 28,302 | $ | 239 | $ | - | $ | 28,541 | ||||||
Three Months Ended February 28, 2013 | ||||||||||||||
(Dollars in thousands) | CFC | Other | Elimination | Consolidated | ||||||||||
Statement of operations: | ||||||||||||||
Interest income | $ | 230,039 | $ | 13,971 | $ | -9,989 | $ | 234,021 | ||||||
Interest expense | -171,491 | -10,395 | 9,987 | -171,899 | ||||||||||
Net interest income | 58,548 | 3,576 | -2 | 62,122 | ||||||||||
Recovery of loan losses | 378 | - | - | 378 | ||||||||||
Net interest income after recovery of loan losses | 58,926 | 3,576 | -2 | 62,500 | ||||||||||
Non-interest income: | ||||||||||||||
Fee and other income | 6,229 | 335 | -227 | 6,337 | ||||||||||
Derivative gains (losses) | 44,954 | 1,690 | -18 | 46,626 | ||||||||||
Results of operations from foreclosed assets | 6,478 | - | - | 6,478 | ||||||||||
Total non-interest income | 57,661 | 2,025 | -245 | 59,441 | ||||||||||
Non-interest expense: | ||||||||||||||
General and administrative expenses | -27,638 | -2,870 | 229 | -30,279 | ||||||||||
Recovery of guarantee liability | 46 | - | - | 46 | ||||||||||
Other | -572 | - | 18 | -554 | ||||||||||
Total non-interest expense | -28,164 | -2,870 | 247 | -30,787 | ||||||||||
Income prior to income taxes | 88,423 | 2,731 | - | 91,154 | ||||||||||
Income tax expense | - | -1,067 | - | -1,067 | ||||||||||
Net income | $ | 88,423 | $ | 1,664 | $ | - | $ | 90,087 | ||||||
Nine Months Ended February 28, 2014 | ||||||||||||||
(Dollars in thousands) | CFC | Other | Elimination | Consolidated | ||||||||||
Statement of operations: | ||||||||||||||
Interest income | $ | 707,758 | $ | 37,958 | $ | -26,659 | $ | 719,057 | ||||||
Interest expense | -495,357 | -27,766 | 26,659 | -496,464 | ||||||||||
Net interest income | 212,401 | 10,192 | - | 222,593 | ||||||||||
Provision for loan losses | -3,161 | - | - | -3,161 | ||||||||||
Net interest income after provision for loan losses | 209,240 | 10,192 | - | 219,432 | ||||||||||
Non-interest income: | ||||||||||||||
Fee and other income | 13,314 | 1,068 | 601 | 14,983 | ||||||||||
Derivative gains | 43,543 | 438 | - | 43,981 | ||||||||||
Results of operations from foreclosed assets | -8,482 | - | - | -8,482 | ||||||||||
Total non-interest income | 48,375 | 1,506 | 601 | 50,482 | ||||||||||
Non-interest expense: | ||||||||||||||
General and administrative expenses | -47,140 | -6,630 | -601 | -54,371 | ||||||||||
Provision for guarantee liability | -159 | - | - | -159 | ||||||||||
Losses on early extinguishment of debt | -1,452 | - | - | -1,452 | ||||||||||
Other | -89 | 1 | - | -88 | ||||||||||
Total non-interest expense | -48,840 | -6,629 | -601 | -56,070 | ||||||||||
Income prior to income taxes | 208,775 | 5,069 | - | 213,844 | ||||||||||
Income tax expense | - | -2,045 | - | -2,045 | ||||||||||
Net income | $ | 208,775 | $ | 3,024 | $ | - | $ | 211,799 | ||||||
Assets: | ||||||||||||||
Total loans outstanding | $ | 20,605,354 | $ | 1,234,787 | $ | -1,204,808 | $ | 20,635,333 | ||||||
Deferred origination costs | 9,731 | - | - | 9,731 | ||||||||||
Less: Allowance for loan losses | -56,040 | - | - | -56,040 | ||||||||||
Loans to members, net | 20,559,045 | 1,234,787 | -1,204,808 | 20,589,024 | ||||||||||
Other assets | 2,492,657 | 145,847 | -120,199 | 2,518,305 | ||||||||||
Total assets | $ | 23,051,702 | $ | 1,380,634 | $ | -1,325,007 | $ | 23,107,329 | ||||||
Nine Months Ended February 28, 2013 | ||||||||||||||
(Dollars in thousands) | CFC | Other | Elimination | Consolidated | ||||||||||
Statement of operations: | ||||||||||||||
Interest income | $ | 703,721 | $ | 42,304 | $ | -30,289 | $ | 715,736 | ||||||
Interest expense | -521,525 | -31,558 | 30,287 | -522,796 | ||||||||||
Net interest income | 182,196 | 10,746 | -2 | 192,940 | ||||||||||
Provision for loan losses | -4,927 | - | - | -4,927 | ||||||||||
Net interest income after provision for loan losses | 177,269 | 10,746 | -2 | 188,013 | ||||||||||
Non-interest income: | ||||||||||||||
Fee and other income | 28,762 | 1,021 | -681 | 29,102 | ||||||||||
Derivative (gains) losses | 18,518 | -232 | -18 | 18,268 | ||||||||||
Results of operations from foreclosed assets | 804 | - | - | 804 | ||||||||||
Total non-interest income | 48,084 | 789 | -699 | 48,174 | ||||||||||
Non-interest expense: | ||||||||||||||
General and administrative expenses | -59,935 | -7,648 | 683 | -66,900 | ||||||||||
Recovery of guarantee liability | 147 | - | - | 147 | ||||||||||
Other | -5,119 | - | 18 | -5,101 | ||||||||||
Total non-interest expense | -64,907 | -7,648 | 701 | -71,854 | ||||||||||
Income prior to income taxes | 160,446 | 3,887 | - | 164,333 | ||||||||||
Income tax expense | - | -1,519 | - | -1,519 | ||||||||||
Net income | $ | 160,446 | $ | 2,368 | $ | - | $ | 162,814 | ||||||
Assets: | ||||||||||||||
Total loans outstanding | $ | 19,445,360 | $ | 1,245,392 | $ | -1,213,018 | $ | 19,477,734 | ||||||
Deferred origination costs | 8,414 | - | - | 8,414 | ||||||||||
Less: Allowance for loan losses | -148,411 | - | - | -148,411 | ||||||||||
Loans to members, net | 19,305,363 | 1,245,392 | -1,213,018 | 19,337,737 | ||||||||||
Other assets | 2,133,425 | 151,832 | -124,793 | 2,160,464 | ||||||||||
Total assets | $ | 21,438,788 | $ | 1,397,224 | $ | -1,337,811 | $ | 21,498,201 | ||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | ||||
Components of interest income | ' | ' | ' | ' | ||||
Interest on investments | $1,932 | $1,864 | $5,685 | $4,378 | ||||
Fee income | 3,054 | [1] | 1,841 | [1] | 8,224 | [1] | 5,745 | [1] |
Total interest income | 238,732 | 234,021 | 719,057 | 715,736 | ||||
Long-term fixed-rate loans | ' | ' | ' | ' | ||||
Components of interest income | ' | ' | ' | ' | ||||
Total interest income | 220,227 | 216,716 | 666,762 | 652,903 | ||||
Long-term variable-rate loans | ' | ' | ' | ' | ||||
Components of interest income | ' | ' | ' | ' | ||||
Total interest income | 5,217 | 5,203 | 14,871 | 16,121 | ||||
Line of credit loans | ' | ' | ' | ' | ||||
Components of interest income | ' | ' | ' | ' | ||||
Total interest income | 8,302 | 7,961 | 23,379 | 23,066 | ||||
Restructured loans | ' | ' | ' | ' | ||||
Components of interest income | ' | ' | ' | ' | ||||
Total interest income | $0 | $436 | $136 | $13,523 | ||||
[1] | Primarily related to conversion fees that are deferred and recognized using the effective interest method over the remaining original loan interest rate pricing term, except for a small portion of the total fee charged to cover administrative costs related to the conversion, which is recognized immediately. |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | ||||
Interest expense on debt: | ' | ' | ' | ' | ||||
Debt issuance costs | $1,806 | [1] | $1,891 | [1] | $5,453 | [1] | $5,733 | [1] |
Fee expense | 2,206 | [2] | 2,027 | [2] | 6,925 | [2] | 6,534 | [2] |
Total interest expense | 163,534 | 171,899 | 496,464 | 522,796 | ||||
Short-term debt | ' | ' | ' | ' | ||||
Interest expense on debt: | ' | ' | ' | ' | ||||
Interest expense on debt | 1,406 | [3] | 1,717 | [3] | 4,445 | [3] | 5,033 | [3] |
Medium-term notes | ' | ' | ' | ' | ||||
Interest expense on debt: | ' | ' | ' | ' | ||||
Interest expense on debt | 20,369 | [3] | 21,294 | [3] | 62,920 | [3] | 74,010 | [3] |
Collateral trust bonds | ' | ' | ' | ' | ||||
Interest expense on debt: | ' | ' | ' | ' | ||||
Interest expense on debt | 76,090 | [3] | 84,197 | [3] | 227,746 | [3] | 247,907 | [3] |
Subordinated deferrable debt | ' | ' | ' | ' | ||||
Interest expense on debt: | ' | ' | ' | ' | ||||
Interest expense on debt | 4,750 | [3] | 2,806 | [3] | 14,250 | [3] | 8,419 | [3] |
Subordinated certificates | ' | ' | ' | ' | ||||
Interest expense on debt: | ' | ' | ' | ' | ||||
Interest expense on debt | 19,777 | [3] | 20,345 | [3] | 60,897 | [3] | 61,227 | [3] |
Long-term notes payable | ' | ' | ' | ' | ||||
Interest expense on debt: | ' | ' | ' | ' | ||||
Interest expense on debt | $37,130 | [3] | $37,622 | [3] | $113,828 | [3] | $113,933 | [3] |
[1] | Includes amortization of all deferred charges related to the issuance of debt, principally underwritersb fees, legal fees, printing costs and comfort letter fees. Amortization is calculated using the effective interest method or a method approximating the effective interest method. Also includes issuance costs related to dealer commercial paper, which are recognized as incurred. | |||||||
[2] | Includes various fees related to funding activities, including fees paid to banks participating in our revolving credit agreements. | |||||||
[3] | Represents interest expense and the amortization of discounts on debt. |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details Textual) (USD $) | 9 Months Ended | ||
Feb. 28, 2014 | Feb. 28, 2013 | 31-May-13 | |
Variable Interest Entities | ' | ' | ' |
Loans outstanding | $20,589,024,000 | $19,337,737,000 | $20,251,549,000 |
Loans Receivable Cost of Loans Sold | 106,000,000 | 121,000,000 | ' |
Deferred Loan Conversion Fees | 74,000,000 | 21,000,000 | ' |
Decrease in Other Liabilities Due to Prior Period Misclassification | 11,500,000 | ' | ' |
Consolidated variable interest entities | RTFC | ' | ' | ' |
Variable Interest Entities | ' | ' | ' |
Guarantee amount | 2,000,000 | ' | ' |
Total assets including loans outstanding to members | 577,000,000 | ' | ' |
Loans outstanding | 455,000,000 | ' | ' |
Maximum amount committed to extend loan | 4,000,000,000 | ' | ' |
Commitment outstanding | 441,000,000 | ' | ' |
Loans outstanding | 779,000,000 | ' | ' |
Consolidated variable interest entities | NCSC | ' | ' | ' |
Variable Interest Entities | ' | ' | ' |
Guarantee amount | 121,000,000 | ' | ' |
Maximum potential exposure | 128,000,000 | ' | ' |
Total assets including loans outstanding to members | 804,000,000 | ' | ' |
Loans outstanding | 763,000,000 | ' | ' |
Commitment outstanding | 3,000,000,000 | ' | ' |
Loans outstanding | 884,000,000 | ' | ' |
Credit enhancements | $121,000,000 | ' | ' |
Investments_Securities_Details
Investments Securities (Details Textual) (USD $) | Feb. 28, 2014 | 31-May-13 |
In Millions, unless otherwise specified | ||
Federal Agricultural Mortgage Corporation Class A common stock | ' | ' |
Investment [Line Items] | ' | ' |
Investment at fair value | $2.10 | $2.20 |
Unrealized gain recorded in accumulated other comprehensive income, included in common stock carrying value | 1.6 | 1.7 |
Federal Agricultural Mortgage Corporation Series A preferred stock | ' | ' |
Investment [Line Items] | ' | ' |
Investment at fair value | 27 | 29 |
Cost of purchases, included in preferred stock carrying value | 30 | ' |
Cost of purchases, included in common stock carrying value | 0.5 | ' |
Unrealized loss recorded in accumulated other comprehensive income, included in preferred stock carrying value | $3 | $1 |
Loans_and_Commitments_Details
Loans and Commitments (Details) (USD $) | Feb. 28, 2014 | Nov. 30, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | 31-May-12 | ||
In Thousands, unless otherwise specified | ||||||||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | $20,635,333 | [1],[2] | ' | $20,296,317 | [1],[2] | $19,477,734 | ' | ' |
Deferred origination costs | 9,731 | ' | 9,557 | 8,414 | ' | ' | ||
Less: Allowance for loan losses | -56,040 | -55,199 | -54,325 | -148,411 | -148,737 | -143,326 | ||
Loans to members, net | 20,589,024 | ' | 20,251,549 | 19,337,737 | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | ' | ' | 39,000 | ' | ' | ' | ||
Nonperforming Financing Receivable | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 10,845 | ' | 15,497 | ' | ' | ' | ||
Restructured financing receivable | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 7,584 | ' | 46,953 | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Deferred origination costs | 0 | [3] | ' | 0 | [3] | ' | ' | ' |
Less: Allowance for loan losses | 0 | [3] | ' | 0 | [3] | ' | ' | ' |
Loans to members, net | 13,544,658 | [3] | ' | 13,422,748 | [3] | ' | ' | ' |
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 13,544,658 | [2],[3] | ' | 13,422,748 | [2],[3] | ' | ' | ' |
Unadvanced commitments | Nonperforming Financing Receivable | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 0 | [3] | ' | 0 | [3] | ' | ' | ' |
Unadvanced commitments | Restructured financing receivable | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 0 | [3] | ' | 5,000 | [3] | ' | ' | ' |
CFC | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 19,400,546 | [1],[2] | ' | 19,019,817 | [1],[2] | 19,445,360 | ' | ' |
Deferred origination costs | 9,731 | ' | ' | 8,414 | ' | ' | ||
Less: Allowance for loan losses | -44,359 | -42,762 | -41,246 | -134,062 | -133,578 | -126,941 | ||
Loans to members, net | 20,559,045 | ' | ' | 19,305,363 | ' | ' | ||
CFC | Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 12,268,234 | [2],[3] | ' | 12,196,431 | [2],[3] | ' | ' | ' |
CFC | Distribution | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 15,186,620 | [2] | ' | 14,941,192 | [2] | ' | ' | ' |
CFC | Distribution | Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 9,115,128 | [2],[3] | ' | 8,948,826 | [2],[3] | ' | ' | ' |
CFC | Power supply | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 4,149,104 | [2] | ' | 4,007,669 | [2] | ' | ' | ' |
CFC | Power supply | Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 3,024,666 | [2],[3] | ' | 3,145,518 | [2],[3] | ' | ' | ' |
CFC | Statewide and associate | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 64,822 | [2] | ' | 70,956 | [2] | ' | ' | ' |
CFC | Statewide and associate | Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 128,440 | [2],[3] | ' | 102,087 | [2],[3] | ' | ' | ' |
RTFC | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 455,492 | [2] | ' | 503,359 | [2] | ' | ' | ' |
RTFC | Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 312,466 | [2],[3] | ' | 317,344 | [2],[3] | ' | ' | ' |
NCSC | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 779,295 | [2] | ' | 773,141 | [2] | ' | ' | ' |
NCSC | Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 963,958 | [2],[3] | ' | 908,973 | [2],[3] | ' | ' | ' |
Long-term fixed-rate loans | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 18,185,111 | [2] | ' | 17,918,268 | [2] | ' | ' | ' |
Long-term fixed-rate loans | Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 0 | [2],[3] | ' | 0 | [2],[3] | ' | ' | ' |
Long-term fixed-rate loans | CFC | Restructured financing receivable | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 7,584 | ' | 46,953 | ' | ' | ' | ||
Long-term fixed-rate loans | CFC | Unadvanced commitments | Restructured financing receivable | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 0 | [3] | ' | 0 | [3] | ' | ' | ' |
Long-term fixed-rate loans | RTFC | Nonperforming Financing Receivable | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 2,786 | ' | 3,690 | ' | ' | ' | ||
Long-term fixed-rate loans | RTFC | Unadvanced commitments | Nonperforming Financing Receivable | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 0 | [3] | ' | 0 | [3] | ' | ' | ' |
Long-term variable-rate loans | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 770,883 | [2] | ' | 782,006 | [2] | ' | ' | ' |
Long-term variable-rate loans | Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 4,547,813 | [2],[3] | ' | 4,718,162 | [2],[3] | ' | ' | ' |
Long-term variable-rate loans | RTFC | Nonperforming Financing Receivable | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 2,609 | ' | 6,807 | ' | ' | ' | ||
Long-term variable-rate loans | RTFC | Unadvanced commitments | Nonperforming Financing Receivable | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 0 | [3] | ' | 0 | [3] | ' | ' | ' |
Loans guaranteed by RUS | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 203,173 | [2] | ' | 210,815 | [2] | ' | ' | ' |
Loans guaranteed by RUS | Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 0 | [2],[3] | ' | 0 | [2],[3] | ' | ' | ' |
Line of credit loans | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 1,476,166 | [2] | ' | 1,385,228 | [2] | ' | ' | ' |
Line of credit loans | Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 8,996,845 | [2],[3] | ' | 8,704,586 | [2],[3] | ' | ' | ' |
Line of credit loans | CFC | Nonperforming Financing Receivable | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 5,000 | ' | 5,000 | ' | ' | ' | ||
Line of credit loans | CFC | Restructured financing receivable | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 0 | [4] | ' | 0 | [4] | ' | ' | ' |
Line of credit loans | CFC | Unadvanced commitments | Nonperforming Financing Receivable | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 0 | [3] | ' | 0 | [3] | ' | ' | ' |
Line of credit loans | CFC | Unadvanced commitments | Restructured financing receivable | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | 0 | [3],[4] | ' | 5,000 | [3],[4] | ' | ' | ' |
Line of credit loans | NCSC | Nonperforming Financing Receivable | ' | ' | ' | ' | ' | ' | ||
Loans outstanding | ' | ' | ' | ' | ' | ' | ||
Total loans outstanding | 450 | ' | 0 | ' | ' | ' | ||
Line of credit loans | NCSC | Unadvanced commitments | Nonperforming Financing Receivable | ' | ' | ' | ' | ' | ' | ||
Unadvanced commitments | ' | ' | ' | ' | ' | ' | ||
Total Unadvanced commitments | $0 | [3] | ' | $0 | [3] | ' | ' | ' |
[1] | Excludes deferred origination costs of $10 million at February 28, 2014 and May 31, 2013. | |||||||
[2] | Includes nonperforming and restructured loans. | |||||||
[3] | The interest rate on unadvanced commitments is not set until drawn, therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. | |||||||
[4] | The unadvanced commitment is part of the terms outlined in the related restructure agreement. Loans advanced under these commitments would be classified as performing. Principal and interest due under these performing loans would be in addition to scheduled payments due under the restructured loan agreement. |
Loans_and_Commitments_Details_
Loans and Commitments (Details 1) (USD $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Notional maturities of committed lines of credit | ' | ' |
Total unadvanced commitments | ' | $39,000 |
Unadvanced commitments subject to material adverse change clauses | ' | ' |
Notional maturities of committed lines of credit | ' | ' |
2014 | 19,048 | ' |
2015 | 55,026 | ' |
2016 | 61,000 | ' |
2017 | 466,061 | ' |
2018 | 861,098 | ' |
Thereafter | 786,529 | ' |
Total unadvanced commitments | $2,248,762 | $11,720,000 |
Loans_and_Commitments_Details_1
Loans and Commitments (Details 2) (USD $) | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2013 | ||
In Thousands, unless otherwise specified | |||||
Payment Status of Loans | ' | ' | ' | ||
Current | $20,626,754 | $20,280,157 | ' | ||
30-89 days past due | 0 | 7,004 | ' | ||
90 days or more past due | 8,579 | [1] | 9,156 | [1] | ' |
Total past due | 8,579 | 16,160 | ' | ||
Total financing receivables | 20,635,333 | [2],[3] | 20,296,317 | [2],[3] | 19,477,734 |
Non-accrual loans | 18,429 | 23,081 | ' | ||
As a % of total loans | ' | ' | ' | ||
Current | 99.96% | 99.92% | ' | ||
30-89 days past due | 0.00% | 0.03% | ' | ||
90 days or more past due | 0.04% | [1] | 0.05% | [1] | ' |
Total past due | 0.04% | 0.08% | ' | ||
Total financing receivables | 100.00% | 100.00% | ' | ||
Non-accrual loans | 0.09% | 0.11% | ' | ||
RTFC | ' | ' | ' | ||
Payment Status of Loans | ' | ' | ' | ||
Current | 451,913 | 495,040 | ' | ||
30-89 days past due | 0 | 4,163 | ' | ||
90 days or more past due | 3,579 | [1] | 4,156 | [1] | ' |
Total past due | 3,579 | 8,319 | ' | ||
Total financing receivables | 455,492 | [2] | 503,359 | [2] | ' |
Non-accrual loans | 5,395 | 10,497 | ' | ||
NCSC | ' | ' | ' | ||
Payment Status of Loans | ' | ' | ' | ||
Current | 779,295 | 773,141 | ' | ||
30-89 days past due | 0 | 0 | ' | ||
90 days or more past due | 0 | [1] | 0 | [1] | ' |
Total past due | 0 | 0 | ' | ||
Total financing receivables | 779,295 | [2] | 773,141 | [2] | ' |
Non-accrual loans | 450 | 0 | ' | ||
CFC | ' | ' | ' | ||
Payment Status of Loans | ' | ' | ' | ||
Current | 19,395,546 | 19,011,976 | ' | ||
30-89 days past due | 0 | 2,841 | ' | ||
90 days or more past due | 5,000 | [1] | 5,000 | [1] | ' |
Total past due | 5,000 | 7,841 | ' | ||
Total financing receivables | 19,400,546 | [2],[3] | 19,019,817 | [2],[3] | 19,445,360 |
Non-accrual loans | 12,584 | 12,584 | ' | ||
CFC | Distribution | ' | ' | ' | ||
Payment Status of Loans | ' | ' | ' | ||
Current | 15,186,620 | 14,938,351 | ' | ||
30-89 days past due | 0 | 2,841 | ' | ||
90 days or more past due | 0 | [1] | 0 | [1] | ' |
Total past due | 0 | 2,841 | ' | ||
Total financing receivables | 15,186,620 | 14,941,192 | ' | ||
Non-accrual loans | 7,584 | 7,584 | ' | ||
CFC | Power supply | ' | ' | ' | ||
Payment Status of Loans | ' | ' | ' | ||
Current | 4,144,104 | 4,002,669 | ' | ||
30-89 days past due | 0 | 0 | ' | ||
90 days or more past due | 5,000 | [1] | 5,000 | [1] | ' |
Total past due | 5,000 | 5,000 | ' | ||
Total financing receivables | 4,149,104 | 4,007,669 | ' | ||
Non-accrual loans | 5,000 | 5,000 | ' | ||
CFC | Statewide and associate | ' | ' | ' | ||
Payment Status of Loans | ' | ' | ' | ||
Current | 64,822 | 70,956 | ' | ||
30-89 days past due | 0 | 0 | ' | ||
90 days or more past due | 0 | [1] | 0 | [1] | ' |
Total past due | 0 | 0 | ' | ||
Total financing receivables | 64,822 | [3] | 70,956 | [3] | ' |
Non-accrual loans | $0 | $0 | ' | ||
[1] | All loans 90 days or more past due are on non-accrual status. | ||||
[2] | Excludes deferred origination costs of $10 million at February 28, 2014 and May 31, 2013. | ||||
[3] | Includes nonperforming and restructured loans. |
Loans_and_Commitments_Details_2
Loans and Commitments (Details 3) (USD $) | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2013 | ||
In Thousands, unless otherwise specified | |||||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | $20,635,333 | [1],[2] | $20,296,317 | [1],[2] | $19,477,734 |
Pass | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 20,596,169 | 20,249,372 | ' | ||
Criticized | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 39,164 | 46,945 | ' | ||
RTFC | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 455,492 | [1] | 503,359 | [1] | ' |
RTFC | Pass | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 441,757 | 483,058 | ' | ||
RTFC | Criticized | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 13,735 | 20,301 | ' | ||
NCSC | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 779,295 | [1] | 773,141 | [1] | ' |
NCSC | Pass | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 776,981 | 770,419 | ' | ||
NCSC | Criticized | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 2,314 | 2,722 | ' | ||
CFC | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 19,400,546 | [1],[2] | 19,019,817 | [1],[2] | 19,445,360 |
CFC | Pass | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 19,377,431 | 18,995,895 | ' | ||
CFC | Criticized | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 23,115 | 23,922 | ' | ||
CFC | Distribution | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 15,186,620 | 14,941,192 | ' | ||
CFC | Distribution | Pass | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 15,168,785 | 14,922,558 | ' | ||
CFC | Distribution | Criticized | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 17,835 | 18,634 | ' | ||
CFC | Power supply | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 4,149,104 | 4,007,669 | ' | ||
CFC | Power supply | Pass | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 4,144,104 | 4,002,669 | ' | ||
CFC | Power supply | Criticized | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 5,000 | 5,000 | ' | ||
CFC | Statewide and associate | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 64,822 | [2] | 70,956 | [2] | ' |
CFC | Statewide and associate | Pass | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | 64,542 | 70,668 | ' | ||
CFC | Statewide and associate | Criticized | ' | ' | ' | ||
Credit Quality | ' | ' | ' | ||
Total loans outstanding | $280 | $288 | ' | ||
[1] | Excludes deferred origination costs of $10 million at February 28, 2014 and May 31, 2013. | ||||
[2] | Includes nonperforming and restructured loans. |
Loans_and_Commitments_Details_3
Loans and Commitments (Details 4) (USD $) | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2013 | ||
In Thousands, unless otherwise specified | |||||
Loan Security | ' | ' | ' | ||
Total loans outstanding | $20,635,333 | [1],[2] | $20,296,317 | [1],[2] | $19,477,734 |
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 100.00% | 100.00% | ' | ||
Unsecured | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 2,316,390 | 2,243,258 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 11.00% | 11.00% | ' | ||
Secured long-term debt | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 18,318,943 | 18,053,059 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 89.00% | 89.00% | ' | ||
Long-term fixed-rate loans | Unsecured | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 1,056,607 | 1,046,674 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 6.00% | 6.00% | ' | ||
Long-term fixed-rate loans | Secured long-term debt | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 17,128,504 | 16,871,594 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 94.00% | 94.00% | ' | ||
Long-term variable-rate loans | Unsecured | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 91,437 | 105,931 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 12.00% | 14.00% | ' | ||
Long-term variable-rate loans | Secured long-term debt | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 679,446 | 676,075 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 88.00% | 86.00% | ' | ||
Loans guaranteed by RUS | Unsecured | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 0 | 0 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 0.00% | 0.00% | ' | ||
Loans guaranteed by RUS | Secured long-term debt | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 203,173 | 210,815 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 100.00% | 100.00% | ' | ||
Line of credit loans | Unsecured | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 1,168,346 | 1,090,653 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 79.00% | 79.00% | ' | ||
Line of credit loans | Secured long-term debt | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 307,820 | 294,575 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 21.00% | 21.00% | ' | ||
CFC | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 19,400,546 | [1],[2] | 19,019,817 | [1],[2] | 19,445,360 |
CFC | Unsecured | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 2,076,805 | 1,970,788 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 11.00% | 10.00% | ' | ||
CFC | Secured long-term debt | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 17,323,741 | 17,049,029 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 89.00% | 90.00% | ' | ||
RTFC | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 455,492 | [2] | 503,359 | [2] | ' |
RTFC | Unsecured | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 19,491 | 20,712 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 4.00% | 4.00% | ' | ||
RTFC | Secured long-term debt | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 436,001 | 482,647 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 96.00% | 96.00% | ' | ||
NCSC | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 779,295 | [2] | 773,141 | [2] | ' |
NCSC | Unsecured | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | 220,094 | 251,758 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 28.00% | 33.00% | ' | ||
NCSC | Secured long-term debt | ' | ' | ' | ||
Loan Security | ' | ' | ' | ||
Total loans outstanding | $559,201 | $521,383 | ' | ||
Loans And Leases Receivable Commercial Net Of Deferred Income Percentage | 72.00% | 67.00% | ' | ||
[1] | Excludes deferred origination costs of $10 million at February 28, 2014 and May 31, 2013. | ||||
[2] | Includes nonperforming and restructured loans. |
Loans_and_Commitments_Details_4
Loans and Commitments (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | 31-May-13 | |||
Activity in the loan loss allowance | ' | ' | ' | ' | ' | |||
Balance at the beginning of the period | $55,199 | $148,737 | $54,325 | $143,326 | ' | |||
Provision for (recovery of) loan losses | 787 | -378 | 3,161 | 4,927 | ' | |||
Charge-offs | 0 | ' | -1,606 | ' | ' | |||
Recoveries of loans previously charged-off | 54 | 52 | 160 | 158 | ' | |||
Balance at the end of the period | 56,040 | 148,411 | 56,040 | 148,411 | ' | |||
Ending balance of the allowance: | ' | ' | ' | ' | ' | |||
Collectively evaluated | 55,526 | ' | 55,526 | ' | 50,898 | |||
Individually evaluated | 514 | ' | 514 | ' | 3,427 | |||
Total ending balance of the allowance | 56,040 | 148,411 | 56,040 | 148,411 | ' | |||
Recorded investment in loans: | ' | ' | ' | ' | ' | |||
Collectively evaluated | 20,616,904 | ' | 20,616,904 | ' | 20,233,867 | |||
Individually evaluated | 18,429 | ' | 18,429 | ' | 62,450 | |||
Total recorded investment in loans | 20,635,333 | [1],[2] | 19,477,734 | 20,635,333 | [1],[2] | 19,477,734 | 20,296,317 | [1],[2] |
Loans to members, net | 20,579,293 | [1] | ' | 20,579,293 | [1] | ' | 20,241,992 | [1] |
RTFC | ' | ' | ' | ' | ' | |||
Activity in the loan loss allowance | ' | ' | ' | ' | ' | |||
Balance at the beginning of the period | 7,859 | 8,314 | 9,158 | 8,562 | ' | |||
Provision for (recovery of) loan losses | -2,450 | -214 | -2,143 | -462 | ' | |||
Charge-offs | 0 | ' | -1,606 | ' | ' | |||
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 | ' | |||
Balance at the end of the period | 5,409 | 8,100 | 5,409 | 8,100 | ' | |||
Ending balance of the allowance: | ' | ' | ' | ' | ' | |||
Collectively evaluated | 4,950 | ' | 4,950 | ' | 5,731 | |||
Individually evaluated | 459 | ' | 459 | ' | 3,427 | |||
Total ending balance of the allowance | 5,409 | 8,100 | 5,409 | 8,100 | ' | |||
Recorded investment in loans: | ' | ' | ' | ' | ' | |||
Collectively evaluated | 450,097 | ' | 450,097 | ' | 492,862 | |||
Individually evaluated | 5,395 | ' | 5,395 | ' | 10,497 | |||
Total recorded investment in loans | 455,492 | [1] | ' | 455,492 | [1] | ' | 503,359 | [1] |
Loans to members, net | 450,083 | [1] | ' | 450,083 | [1] | ' | 494,201 | [1] |
NCSC | ' | ' | ' | ' | ' | |||
Activity in the loan loss allowance | ' | ' | ' | ' | ' | |||
Balance at the beginning of the period | 4,578 | 6,845 | 3,921 | 7,823 | ' | |||
Provision for (recovery of) loan losses | 1,694 | -596 | 2,351 | -1,574 | ' | |||
Charge-offs | 0 | ' | 0 | ' | ' | |||
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 | ' | |||
Balance at the end of the period | 6,272 | 6,249 | 6,272 | 6,249 | ' | |||
Ending balance of the allowance: | ' | ' | ' | ' | ' | |||
Collectively evaluated | 6,217 | ' | 6,217 | ' | 3,921 | |||
Individually evaluated | 55 | ' | 55 | ' | 0 | |||
Total ending balance of the allowance | 6,272 | 6,249 | 6,272 | 6,249 | ' | |||
Recorded investment in loans: | ' | ' | ' | ' | ' | |||
Collectively evaluated | 778,845 | ' | 778,845 | ' | 773,141 | |||
Individually evaluated | 450 | ' | 450 | ' | 0 | |||
Total recorded investment in loans | 779,295 | [1] | ' | 779,295 | [1] | ' | 773,141 | [1] |
Loans to members, net | 773,023 | [1] | ' | 773,023 | [1] | ' | 769,220 | [1] |
CFC | ' | ' | ' | ' | ' | |||
Activity in the loan loss allowance | ' | ' | ' | ' | ' | |||
Balance at the beginning of the period | 42,762 | 133,578 | 41,246 | 126,941 | ' | |||
Provision for (recovery of) loan losses | 787 | -378 | 3,161 | 4,927 | ' | |||
Charge-offs | 0 | ' | 0 | ' | ' | |||
Recoveries of loans previously charged-off | 54 | 52 | 160 | 158 | ' | |||
Balance at the end of the period | 44,359 | 134,062 | 44,359 | 134,062 | ' | |||
Ending balance of the allowance: | ' | ' | ' | ' | ' | |||
Collectively evaluated | 44,359 | ' | 44,359 | ' | 41,246 | |||
Individually evaluated | 0 | ' | 0 | ' | 0 | |||
Total ending balance of the allowance | 44,359 | 134,062 | 44,359 | 134,062 | ' | |||
Recorded investment in loans: | ' | ' | ' | ' | ' | |||
Collectively evaluated | 19,387,962 | ' | 19,387,962 | ' | 18,967,864 | |||
Individually evaluated | 12,584 | ' | 12,584 | ' | 51,953 | |||
Total recorded investment in loans | 19,400,546 | [1],[2] | 19,445,360 | 19,400,546 | [1],[2] | 19,445,360 | 19,019,817 | [1],[2] |
Loans to members, net | $19,356,187 | [1] | ' | $19,356,187 | [1] | ' | $18,978,571 | [1] |
[1] | Excludes deferred origination costs of $10 million at February 28, 2014 and May 31, 2013. | |||||||
[2] | Includes nonperforming and restructured loans. |
Loans_and_Commitments_Details_5
Loans and Commitments (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | 31-May-13 |
Recorded investment in individually-impaired loans and the related specific valuation allowance | ' | ' | ' | ' | ' |
With no specific allowance recorded | $16,164 | ' | $16,164 | ' | $51,953 |
With a specific allowance recorded | 2,265 | ' | 2,265 | ' | 10,497 |
Total impaired loans | 18,429 | ' | 18,429 | ' | 62,450 |
Related allowance | 0 | ' | 0 | ' | 0 |
Average recorded investment | ' | ' | ' | ' | ' |
Total impaired loans | 18,565 | 81,608 | 24,825 | 220,300 | ' |
Interest income recognized | ' | ' | ' | ' | ' |
Interest impaired loans | 0 | 435 | 136 | 13,522 | ' |
Interest income reduction as a result of holding loans on non-accrual status | ' | ' | ' | ' | ' |
Interest income reduced | 242 | 355 | 807 | 1,135 | ' |
CFC | Distribution | ' | ' | ' | ' | ' |
Recorded investment in individually-impaired loans and the related specific valuation allowance | ' | ' | ' | ' | ' |
With no specific allowance recorded | 7,584 | ' | 7,584 | ' | 46,953 |
Related allowance | 0 | ' | 0 | ' | 0 |
Average recorded investment | ' | ' | ' | ' | ' |
Total impaired loans | 7,584 | 70,111 | 11,939 | 208,632 | ' |
Interest income recognized | ' | ' | ' | ' | ' |
Interest impaired loans | 0 | 435 | 136 | 13,522 | ' |
CFC | Power Supply | ' | ' | ' | ' | ' |
Recorded investment in individually-impaired loans and the related specific valuation allowance | ' | ' | ' | ' | ' |
With no specific allowance recorded | 5,000 | ' | 5,000 | ' | 5,000 |
Related allowance | 0 | ' | 0 | ' | 0 |
Average recorded investment | ' | ' | ' | ' | ' |
Total impaired loans | 5,000 | 5,000 | 5,000 | 5,000 | ' |
Interest income recognized | ' | ' | ' | ' | ' |
Interest impaired loans | 0 | 0 | 0 | 0 | ' |
RTFC | ' | ' | ' | ' | ' |
Recorded investment in individually-impaired loans and the related specific valuation allowance | ' | ' | ' | ' | ' |
With no specific allowance recorded | 3,580 | ' | 3,580 | ' | 0 |
With a specific allowance recorded | 1,815 | ' | 1,815 | ' | 10,497 |
Related allowance | 0 | ' | 0 | ' | 0 |
Average recorded investment | ' | ' | ' | ' | ' |
Total impaired loans | 5,527 | 6,497 | 7,735 | 6,668 | ' |
Interest income recognized | ' | ' | ' | ' | ' |
Interest impaired loans | 0 | 0 | 0 | 0 | ' |
National Cooperative Services Corporation [Member] | ' | ' | ' | ' | ' |
Recorded investment in individually-impaired loans and the related specific valuation allowance | ' | ' | ' | ' | ' |
With a specific allowance recorded | 450 | ' | 450 | ' | ' |
Related allowance | 55 | ' | 55 | ' | ' |
Average recorded investment | ' | ' | ' | ' | ' |
Total impaired loans | 454 | 0 | 151 | 0 | ' |
Interest income recognized | ' | ' | ' | ' | ' |
Interest impaired loans | 0 | 0 | 0 | 0 | ' |
Non-performing loans | ' | ' | ' | ' | ' |
Interest income reduction as a result of holding loans on non-accrual status | ' | ' | ' | ' | ' |
Interest income reduced | 120 | 355 | 440 | 1,135 | ' |
Restructured loans | ' | ' | ' | ' | ' |
Interest income reduction as a result of holding loans on non-accrual status | ' | ' | ' | ' | ' |
Interest income reduced | $122 | $0 | $367 | $0 | ' |
Loans_and_Commitments_Details_6
Loans and Commitments (Details 7) (USD $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Pledging of Loans and Loans on Deposit | ' | ' |
Restricted cash | $7,256 | $7,696 |
Collateral trust bonds 2007 indenture | ' | ' |
Pledging of Loans and Loans on Deposit | ' | ' |
Debt outstanding | 5,179,372 | 4,679,372 |
Loans outstanding and pledged as collateral | 5,616,605 | 5,840,627 |
Collateral trust bonds 1994 indenture | ' | ' |
Pledging of Loans and Loans on Deposit | ' | ' |
Debt outstanding | 1,310,000 | 1,465,000 |
Notes payable | Federal Agricultural Mortgage Corporation | ' | ' |
Pledging of Loans and Loans on Deposit | ' | ' |
Debt outstanding | 1,523,032 | 1,542,474 |
Notes payable | Federal Financing Bank | ' | ' |
Pledging of Loans and Loans on Deposit | ' | ' |
Debt outstanding | 3,999,000 | 3,674,000 |
Clean Renewable Energy Bonds Series 2009A | ' | ' |
Pledging of Loans and Loans on Deposit | ' | ' |
Debt outstanding | 18,230 | 19,888 |
Restricted cash | 7,221 | 7,634 |
Total pledged collateral | 29,153 | 31,170 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 2007 indenture | ' | ' |
Pledging of Loans and Loans on Deposit | ' | ' |
Loans outstanding and pledged as collateral | 5,454,096 | 5,674,804 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 1994 indenture | ' | ' |
Pledging of Loans and Loans on Deposit | ' | ' |
Loans outstanding and pledged as collateral | 1,567,122 | 1,641,858 |
Mortgage notes | Distribution and power supply system mortgage notes | Federal Agricultural Mortgage Corporation | ' | ' |
Pledging of Loans and Loans on Deposit | ' | ' |
Loans outstanding and pledged as collateral | 1,784,959 | 1,795,947 |
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 | 21,932 | 23,536 |
RUS guaranteed loans qualifying as permitted investments | Collateral trust bonds 2007 indenture | ' | ' |
Pledging of Loans and Loans on Deposit | ' | ' |
Loans outstanding and pledged as collateral | 162,509 | 165,823 |
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 | $4,387,115 | $3,903,786 |
Loans_and_Commitments_Details_7
Loans and Commitments (Details Textual) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||
Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | |||||
Nonperforming Restructure Loans [Member] | Nonperforming Restructure Loans [Member] | Nonperforming Restructure Loans [Member] | Performing Financing Receivable | Performing Financing Receivable | Commitments to Extend Credit | Commitments to Extend Credit | Commitments to Extend Credit | Commitments to Extend Credit | Unadvanced commitments subject to material adverse change clauses | Unadvanced commitments subject to material adverse change clauses | Unadvanced commitments not subject to material adverse change clauses | Unadvanced commitments not subject to material adverse change clauses | |||||||
Performing Financing Receivable | Performing Financing Receivable | ||||||||||||||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Other Commitment | ' | $39,000,000 | ' | ' | ' | ' | ' | $13,544,658,000 | [1],[2] | $13,422,748,000 | [1],[2] | $0 | [2] | $5,000,000 | [2] | $2,248,762,000 | $11,720,000,000 | $2,249,000,000 | $1,703,000,000 |
Loans and Leases Receivable Commercial Net of Deferred Income Additions | ' | ' | ' | ' | ' | 8,000,000 | 47,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Amount of Financing Receivable Refinanced | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage | 100.00% | 100.00% | ' | ' | ' | 0.04% | 0.23% | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Intercompany Loans, Description | 'At February 28, 2014 and May 31, 2013, nonperforming loans totaled $11 million or 0.05 percent, of loans outstanding and $15 million or 0.08 percent, of loans outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Deferred Origination Cost | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Interest and Other Income, Total | ' | ' | $0 | $400,000 | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Includes nonperforming and restructured loans. | ||||||||||||||||||
[2] | The interest rate on unadvanced commitments is not set until drawn, therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan. |
Foreclosed_Assets_Details
Foreclosed Assets (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Feb. 28, 2014 |
Activity for foreclosed assets | ' |
Balance as of May 31, 2013 | $261,472 |
Results of operations | -8,482 |
Cash investments (proceeds) | 2,160 |
Ending balance | 255,150 |
CAH | ' |
Activity for foreclosed assets | ' |
Balance as of May 31, 2013 | 248,049 |
Results of operations | -7,853 |
Cash investments (proceeds) | 7,410 |
Ending balance | 247,606 |
DRP | ' |
Activity for foreclosed assets | ' |
Balance as of May 31, 2013 | 13,423 |
Results of operations | -629 |
Cash investments (proceeds) | -5,250 |
Ending balance | $7,544 |
Foreclosed_Assets_Details_Text
Foreclosed Assets (Details Textual) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Feb. 28, 2014 |
Proceeds from Sale of Foreclosed Assets | $5 |
ShortTerm_Debt_and_Credit_Arra2
Short-Term Debt and Credit Arrangements (Details) (USD $) | Feb. 28, 2014 | 31-May-13 | ||
In Thousands, unless otherwise specified | ||||
Short-Term Debt Outstanding | ' | ' | ||
Short Term Debt | $4,785,334 | $4,050,132 | ||
Total short-term debt | 6,541,987 | 7,719,483 | ||
Long-term debt maturing within one year: | ' | ' | ||
Total long-term debt maturing within one year | 1,756,653 | 3,669,351 | ||
Commercial Paper Sold Through Dealers, Net Of Discounts | ' | ' | ||
Short-Term Debt Outstanding | ' | ' | ||
Short Term Debt | 2,611,744 | [1] | 2,009,884 | [1] |
Commercial Paper Sold Directly To Mebers At Par | ' | ' | ||
Short-Term Debt Outstanding | ' | ' | ||
Short Term Debt | 916,675 | [1] | 812,141 | [1] |
Commercial Paper Sold Directly To Nonmebers At Par | ' | ' | ||
Short-Term Debt Outstanding | ' | ' | ||
Short Term Debt | 20,160 | [1] | 39,298 | [1] |
Select Notes | ' | ' | ||
Short-Term Debt Outstanding | ' | ' | ||
Short Term Debt | 496,031 | 358,390 | ||
Bank Bid Notes | ' | ' | ||
Short-Term Debt Outstanding | ' | ' | ||
Short Term Debt | 150,000 | 150,000 | ||
Daily Liquidity Fund Notes Sold DirectlyTomember | ' | ' | ||
Short-Term Debt Outstanding | ' | ' | ||
Short Term Debt | 590,724 | 680,419 | ||
Medium Term Notes Sold Through Dealers | ' | ' | ||
Long-term debt maturing within one year: | ' | ' | ||
Total long-term debt maturing within one year | 270,282 | 989,607 | ||
Medium Term Notes Sold to Members | ' | ' | ||
Long-term debt maturing within one year: | ' | ' | ||
Total long-term debt maturing within one year | 365,845 | 391,318 | ||
Collateral Trust Bonds | ' | ' | ||
Long-term debt maturing within one year: | ' | ' | ||
Total long-term debt maturing within one year | 854,605 | 1,504,949 | ||
Loan and Gurantees Subordinated Certificates | ' | ' | ||
Long-term debt maturing within one year: | ' | ' | ||
Total long-term debt maturing within one year | 53,370 | 37,176 | ||
Member Capital Securities | ' | ' | ||
Long-term debt maturing within one year: | ' | ' | ||
Total long-term debt maturing within one year | 181,480 | 0 | ||
Secured Notes Payable | ' | ' | ||
Long-term debt maturing within one year: | ' | ' | ||
Total long-term debt maturing within one year | 27,174 | 742,402 | ||
Unsecured Notes Payable | ' | ' | ||
Long-term debt maturing within one year: | ' | ' | ||
Total long-term debt maturing within one year | $3,897 | $3,899 | ||
[1] | Backup liquidity is provided by our revolving credit agreements. |
ShortTerm_Debt_and_Credit_Arra3
Short-Term Debt and Credit Arrangements (Details 1) (USD $) | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | ||||
In Thousands, unless otherwise specified | Three Year Agreement Maturing On 21 March 2014 | Three Year Agreement Maturing On 21 March 2014 | Three-year agreement maturing on October 28, 2016 | Three-year agreement maturing on October 28, 2016 | Four-year agreement maturing on October 28, 2017 | Four-year agreement maturing on October 28, 2017 | Five-year agreement maturing on October 28, 2018 | Five-year agreement maturing on October 28, 2018 | Revolving credit agreements | Revolving credit agreements | Revolving credit agreements | Revolving credit agreements | ||||||
Three Year Agreement Maturing On 21 March 2014 | Three-year agreement maturing on October 28, 2016 | Four-year agreement maturing on October 28, 2017 | Five-year agreement maturing on October 28, 2018 | |||||||||||||||
Revolving Credit Agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total available | $3,443,109 | $3,096,512 | $219,000 | $219,000 | $1,036,000 | $916,000 | $1,122,500 | $1,007,500 | $1,065,609 | $954,012 | ' | ' | ' | ' | ||||
Letters of credit outstanding | $1,891 | $3,488 | $0 | $0 | $0 | $0 | $0 | $0 | $1,891 | $3,488 | ' | ' | ' | ' | ||||
Facility fee per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 basis points | [1] | '10 basis points | [1] | '10 basis points | [1] | '10 basis points | [1] |
[1] | Facility fee determined by CFCbs senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. |
ShortTerm_Debt_and_Credit_Arra4
Short-Term Debt and Credit Arrangements (Details 2) | 9 Months Ended | 12 Months Ended | ||
Feb. 28, 2014 | 31-May-13 | |||
Requirement | ' | ' | ||
Minimum average adjusted TIER over the six most recent fiscal quarters | 1.025 | [1] | ' | |
Minimum adjusted TIER for the most recent fiscal year | 1.05 | [1],[2] | ' | |
Maximum ratio of adjusted senior debt to total equity | 10 | [1] | ' | |
Actual | ' | ' | ||
Minimum average adjusted TIER over the six most recent fiscal quarters | 1.28 | [1] | 1.27 | [1] |
Minimum adjusted TIER for the most recent fiscal year | 1.29 | [1],[2] | 1.29 | [1],[2] |
Maximum ratio of adjusted senior debt to total equity | 5.92 | [1] | 5.85 | [1] |
[1] | In addition to the adjustments made to the leverage ratio set forth in the Non-GAAP Financial Measures section, senior debt excludes guarantees to member systems that have certain investment-grade ratings from Moodybs Investors Service and Standard & Poorbs Corporation. The TIER and debt-to-equity calculations include the adjustments set forth in the Non-GAAP Financial Measures section and exclude the results of operations for CAH. | |||
[2] | We must meet this requirement to retire patronage capital. |
ShortTerm_Debt_and_Credit_Arra5
Short-Term Debt and Credit Arrangements (Details Textual) (USD $) | Feb. 28, 2014 | 31-May-13 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Feb. 28, 2014 | 31-May-13 |
Three-year agreement maturing on October 28, 2016 | Four-year agreement maturing on October 28, 2017 | Five-year agreement maturing on October 28, 2018 | Revolving credit agreements | Revolving credit agreements | |||
Maximum borrowing capacity lines of credit | ' | ' | $1,006,000,000 | $1,088,000,000 | $1,033,000,000 | $3,445,000,000 | $3,100,000,000 |
Maximum borrowing capacity letters of credit | ' | ' | ' | ' | ' | 100,000,000 | ' |
Line of Credit Facility, Amount Outstanding | $0 | $0 | ' | ' | ' | ' | ' |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Long-term debt | ' | ' |
Total long-term debt | $12,902,920 | $10,696,433 |
Unsecured long-term debt | ' | ' |
Long-term debt | ' | ' |
Total long-term debt | 5,933,024 | 5,418,741 |
Unsecured medium-term notes | ' | ' |
Long-term debt | ' | ' |
Long-term debt before unamortized discount | 1,902,269 | 1,711,214 |
Unamortized discount | -616 | -627 |
Total long-term debt | 1,901,653 | 1,710,587 |
Medium-term notes sold through dealers | ' | ' |
Long-term debt | ' | ' |
Long-term debt before unamortized discount | 1,783,171 | 1,528,424 |
Medium-term notes sold to members | ' | ' |
Long-term debt | ' | ' |
Long-term debt before unamortized discount | 119,098 | 182,790 |
Unsecured notes payable | ' | ' |
Long-term debt | ' | ' |
Long-term debt before unamortized discount | 4,032,167 | 3,709,074 |
Unamortized discount | -796 | -920 |
Total long-term debt | 4,031,371 | 3,708,154 |
Secured long-term debt | ' | ' |
Long-term debt | ' | ' |
Total long-term debt | 6,969,896 | 5,277,692 |
Collateral trust bonds | ' | ' |
Long-term debt | ' | ' |
Long-term debt before unamortized discount | 5,634,372 | 4,639,372 |
Unamortized discount | -178,564 | -181,640 |
Total long-term debt | 5,455,808 | 4,457,732 |
Secured notes payable | ' | ' |
Long-term debt | ' | ' |
Total long-term debt | $1,514,088 | $819,960 |
LongTerm_Debt_Details_Textual
Long-Term Debt (Details Textual) (USD $) | Feb. 28, 2014 | 31-May-13 | Nov. 30, 2013 | Feb. 28, 2014 | 31-May-13 | Jun. 30, 2013 | Nov. 30, 2013 | Dec. 16, 2013 | Feb. 28, 2014 | Nov. 21, 2013 | Jan. 01, 2014 | Jan. 01, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 |
Subsequent Event [Member] | Federal Agricultural Mortgage Corporation | Federal Agricultural Mortgage Corporation | 2.35% Collateral Trust Bonds Due 2020 | 3.4% Collateral Trust Bonds Due 2023 | 4.75% Collateral Trust Bonds Due March 1, 2014 | Committed Loan Facilities Federal Financing Bank Loan Guarantees RUS | Committed Loan Facilities Federal Financing Bank Loan Guarantees RUS | 1.10% Collateral Trust Bonds Due 2017 | 2.15% Collateral Trust Bonds Due 2019 | Committed Loan Facilities | Unsecured Notes Payable | Unsecured Notes Payable | Unsecured Notes Payable | Unsecured Notes Payable | Secured notes payable | Secured notes payable | |||
Federal Financing Bank | Federal Financing Bank | Federal Financing Bank | Federal Agricultural Mortgage Corporation | Federal Agricultural Mortgage Corporation | |||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long Term Debt, Gross, Noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,032,167,000 | $3,709,074,000 | $3,999,000,000 | $3,674,000,000 | $1,523,000,000 | $1,542,000,000 |
Debt Instrument Maximum Borrowing Capacity | ' | ' | ' | 3,900,000,000 | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 325,000,000 | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | 2.35% | 3.40% | 4.75% | ' | ' | 1.10% | 2.15% | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Repurchased Face Amount | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Carrying Amount Issued | ' | ' | ' | ' | ' | 400,000,000 | 400,000,000 | ' | ' | ' | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unused Borrowing Capacity, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 924,000,000 | ' | ' | ' | ' | ' | ' |
Unamortized Premium And Issuance Cost | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term Debt, Total | 4,785,334,000 | 4,050,132,000 | ' | 26,000,000 | 741,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt | ' | ' | ' | $1,497,000,000 | $801,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinated_Deferrable_Debt_D
Subordinated Deferrable Debt (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Feb. 28, 2014 | 31-May-13 |
4.75 percent due 2043 | ' | ' |
Subordinated Deferrable Debt | ' | ' |
Amounts Outstanding | $400,000 | $400,000 |
Interest rate (as a percent) | 4.75% | 4.75% |
Subordinated Deferrable Debt | ' | ' |
Subordinated Deferrable Debt | ' | ' |
Amounts Outstanding | $400,000 | $400,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Feb. 28, 2014 | 31-May-13 |
Interest rate swaps | ' | ' |
Derivative Financial Instruments | ' | ' |
Notional amount | $8,296,809 | $8,788,329 |
Weighted-average rate paid (as a percent) | 2.42% | 2.49% |
Weighted-average rate received (as a percent) | 1.50% | 2.00% |
Pay fixed-receive variable | ' | ' |
Derivative Financial Instruments | ' | ' |
Notional amount | 5,172,809 | 5,287,889 |
Weighted-average rate paid (as a percent) | 3.36% | 3.39% |
Weighted-average rate received (as a percent) | 0.22% | 0.26% |
Pay variable-receive fixed | ' | ' |
Derivative Financial Instruments | ' | ' |
Notional amount | $3,124,000 | $3,500,440 |
Weighted-average rate paid (as a percent) | 0.86% | 1.12% |
Weighted-average rate received (as a percent) | 3.62% | 4.62% |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Derivative Financial Instruments | ' | ' | ' | ' |
Derivative forward value | ' | ' | $98,925 | $62,194 |
Derivative losses | -31,623 | 46,626 | 43,981 | 18,268 |
Interest Rate Swap | ' | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' | ' |
Derivative cash settlements | -18,788 | -14,607 | -54,944 | -43,926 |
Derivative forward value | -12,835 | 61,233 | 98,925 | 62,194 |
Derivative losses | ($31,623) | $46,626 | $43,981 | $18,268 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 2) (USD $) | Feb. 28, 2014 | 31-May-13 | |
In Thousands, unless otherwise specified | |||
Counterparty Group | ' | ' | |
Derivative Financial Instruments | ' | ' | |
Notional amount | $6,576,953 | ' | |
Entity's required payment | -160,733 | ' | |
Entity's amount collected | 75,860 | ' | |
Entity's net payment | -84,873 | ' | |
Counterparty Group | Mutual rating trigger falls to Baa1/BBB+ | ' | ' | |
Derivative Financial Instruments | ' | ' | |
Notional amount | 0 | [1] | ' |
Entity's required payment | 0 | [1] | ' |
Entity's amount collected | 0 | [1] | ' |
Entity's net payment | 0 | [1] | ' |
Counterparty Group | Mutual rating trigger falls below Baa1/BBB+ | ' | ' | |
Derivative Financial Instruments | ' | ' | |
Notional amount | 6,576,953 | [1] | ' |
Entity's required payment | -160,733 | [1] | ' |
Entity's amount collected | 75,860 | [1] | ' |
Entity's net payment | -84,873 | [1] | ' |
Interest rate swaps | ' | ' | |
Derivative Financial Instruments | ' | ' | |
Notional amount | $8,296,809 | $8,788,329 | |
[1] | Stated senior unsecured credit ratings are for Moodybs Investors Service and Standard & Poorbs Corporation, respectively. Under these rating triggers, if the credit rating for either counterparty falls to the level specified in the agreement, the other counterparty may, but is not obligated to, terminate the agreement. If either counterparty terminates the agreement, a net payment may be due from one counterparty to the other based on the fair value, excluding credit risk, of the underlying derivative instrument. |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Details 3) (USD $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Net Amount | $261,598 | $257,878 |
Liabilities: | ' | ' |
Net Amount | 380,518 | 475,278 |
Interest rate swaps | ' | ' |
Assets: | ' | ' |
Gross amounts of recognized assets | 261,598 | 257,878 |
Gross amounts offset in the balance sheets | 0 | 0 |
Net amounts of assets presented in the balance sheets | 261,598 | 257,878 |
Gross amounts not offset in the balance sheets - Financial instruments | 193,733 | 203,161 |
Gross amounts not offset in the balance sheets - Cash collateral pledged | 0 | 0 |
Net Amount | 67,865 | 54,717 |
Liabilities: | ' | ' |
Gross amounts of recognized liabilities | 380,518 | 475,278 |
Gross amounts offset in the balance sheets | 0 | 0 |
Net amounts of liabilities presented in the balance sheets | 380,518 | 475,278 |
Gross amounts not offset in the balance sheets - Financial instruments | 193,733 | 203,161 |
Gross amounts not offset in the balance sheets - Cash collateral pledged | 0 | 0 |
Net Amount | $186,785 | $272,117 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments (Details Textual) (Interest rate swaps, USD $) | Feb. 28, 2014 | 31-May-13 |
Derivative [Line Items] | ' | ' |
Notional amount | $8,296,809,000 | $8,788,329,000 |
Assets Needed to be Posted as Collateral for Immediate Settlement Aggregate Fair Value | 9,000,000 | ' |
Derivative, Net Liability Position, Aggregate Fair Value | 167,000,000 | ' |
Specific Counterparty | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount | $450,000,000 | ' |
Equity_Details_Textual
Equity (Details Textual) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||
Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Jul. 31, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | 31-May-13 | Jul. 31, 2013 | 31-May-13 | Jul. 31, 2013 | |
Patronage capital allocated | Patronage capital allocated | Patronage capital allocated | Members' capital reserve | Members' capital reserve | CFC | CFC | CFC | CFC | |||
Authorized Allocations | Cooperative educational fund | Patronage capital allocated | Patronage capital allocated | Members' capital reserve | |||||||
Authorized Allocations | Authorized Allocations | Authorized Allocations | |||||||||
Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of net earnings | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | ' | $81,000,000 | $138,000,000 |
Retirement of net allocated earnings | $40,724,000 | $35,646,000 | $40,724,000 | $36,075,000 | $41,000,000 | $0 | $0 | ' | ' | ' | ' |
Retirement of allocated net earnings, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' |
Guarantees_Details
Guarantees (Details) (USD $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | $1,106,211 | $1,112,771 |
CFC | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | 1,016,609 | 1,063,113 |
CFC | Distribution | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | 209,336 | 245,265 |
CFC | Power supply | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | 801,785 | 810,900 |
CFC | Statewide and associate | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | 5,488 | 6,948 |
RTFC | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | 2,304 | 3,711 |
NCSC | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | 87,298 | 45,947 |
Letters of credit | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | 472,008 | 447,683 |
Other guarantees | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | 115,018 | 117,118 |
Long-term tax-exempt bonds | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | 519,185 | 547,970 |
Long-term fixed-rate bonds | Letters of credit | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | 73,000 | ' |
Long-term variable-rate bonds | Letters of credit | ' | ' |
Guarantees | ' | ' |
Guarantor Obligations, Current Carrying Value | $446,000 | $473,000 |
Guarantees_Details_1
Guarantees (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Activity in the guarantee liability account | ' | ' | ' | ' |
Beginning balance as of May 31, 2013 | ' | ' | $24,742 | ' |
Net change in non-contingent liability | -1,729 | ' | -1,729 | ' |
Provision for contingent guarantee liability | 117 | -46 | 159 | -147 |
Ending balance as of February 28, 2014 | $23,172 | ' | $23,172 | ' |
Liability as a percentage of total guarantees | 2.09% | ' | 2.09% | ' |
Guarantees_Details_Textual
Guarantees (Details Textual) (USD $) | 9 Months Ended | |
Feb. 28, 2014 | 31-May-13 | |
Guarantor Obligations [Line Items] | ' | ' |
Guarantor Obligations, Current Carrying Value | $1,106,211,000 | $1,112,771,000 |
Guarantee Obligations Unsecured | 456,000,000 | 410,000,000 |
Guarantee Obligations Unsecured Commitment as Percentage of Total Commitment | 41.00% | 41.00% |
Value of bonds issued under liquidity provider obligations | 571,000,000 | ' |
Guaranty Liabilities Contingent and Noncontingent | 23,172,000 | 24,742,000 |
Guaranty Liabilities Contingent | 2,000,000 | 2,000,000 |
Guaranty Liabilities | 21,000,000 | 23,000,000 |
Letter of Credit | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Maturity Period | '2024 | ' |
Long-term variable-rate bonds | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Value of bonds issued under liquidity provider obligations | 446,000,000 | ' |
Letter of Credit Secured | Letter of Credit | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Guarantee Obligations Unsecured | 131,000,000 | ' |
Master Letter of Credit | Letter of Credit | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Letter of Credit Facility Maximum Additional Amount Potentially Required to be Issued | 168,000,000 | ' |
Hybrid Letter of Credit | Letter of Credit | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Letter of Credit Facility Commitments that Can be Used for Issuance of Letters of Credit or Line of Credit Loan | 1,615,000,000 | ' |
Letter of Credit Facility Remaining Commitment | 1,262,000,000 | ' |
Hybrid Letter of Credit Subject to Material Adverse Change Clauses | Letter of Credit | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Letter of Credit Facility Commitments that Can be Used for Issuance of Letters of Credit or Line of Credit Loan | 353,000,000 | ' |
Financial guarantees | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Guarantor Obligations, Current Carrying Value | 472,008,000 | 447,683,000 |
Financial guarantees | Long-term variable-rate bonds | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Guarantor Obligations, Current Carrying Value | 446,000,000 | 473,000,000 |
Financial guarantees | Long-term fixed-rate bonds | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Guarantor Obligations, Current Carrying Value | 73,000,000 | ' |
Guarantee Obligations Unsecured | 120,000,000 | ' |
Other guarantees | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Guarantor Obligations, Current Carrying Value | 115,018,000 | 117,118,000 |
Guarantor Obligations, Maximum Exposure, Undiscounted | 116,000,000 | ' |
Maturity Period | '2025 | ' |
Long Term Tax Exempt Loans | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Letter of Credit Obligations Liquidity Provided to Member Carrying Value | $125,000,000 | ' |
Maturity Period | '2042 | ' |
Fair_Value_Measurement_Details
Fair Value Measurement (Details) (USD $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Fair value of assets and liabilities | ' | ' |
Derivative assets | $261,598 | $257,878 |
Derivative liabilities | 380,518 | 475,278 |
Level 1 | ' | ' |
Fair value of assets and liabilities | ' | ' |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Investments in common and preferred stock | 28,702 | 31,632 |
Deferred compensation investments | 4,035 | 3,716 |
Level 2 | ' | ' |
Fair value of assets and liabilities | ' | ' |
Derivative assets | 261,598 | 257,878 |
Derivative liabilities | 380,518 | 475,278 |
Investments in common and preferred stock | 0 | 0 |
Deferred compensation investments | $0 | $0 |
Fair_Value_Measurement_Details1
Fair Value Measurement (Details 1) (Level 3, USD $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Level 3 | ' | ' |
Nonperforming loans, net of specific reserves | $10,331 | $12,070 |
Fair_Value_Measurement_Details2
Fair Value Measurement (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | $2,313 | ($479) | ($2,931) | $408 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Feb. 28, 2014 | 31-May-13 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Restricted cash | $7,256 | $7,696 |
Time deposits | 700,000 | 700,000 |
Debt service reserve funds | 39,353 | 39,803 |
Derivative instruments | 261,598 | 257,878 |
Liabilities: | ' | ' |
Short-term debt | 6,541,987 | 7,719,483 |
Long-term debt | 12,902,920 | 10,696,433 |
Derivative instruments | 380,518 | 475,278 |
Subordinated deferrable debt | ' | ' |
Liabilities: | ' | ' |
Subordinated debt | 400,000 | 400,000 |
Members' subordinated certificates | ' | ' |
Liabilities: | ' | ' |
Subordinated debt | 1,486,965 | 1,729,226 |
Carrying value | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 842,915 | 177,062 |
Restricted cash | 7,256 | 7,696 |
Investments | 28,702 | 31,632 |
Time deposits | 700,000 | 700,000 |
Deferred compensation investments | 4,035 | 3,716 |
Loans to members, net | 20,589,024 | 20,251,549 |
Debt service reserve funds | 39,353 | 39,803 |
Derivative instruments | 261,598 | 257,878 |
Liabilities: | ' | ' |
Short-term debt | 6,541,987 | 7,719,483 |
Long-term debt | 12,902,920 | 10,696,433 |
Guarantee liability | 23,172 | 24,742 |
Derivative instruments | 380,518 | 475,278 |
Off-balance sheet instruments: | ' | ' |
Commitments | 0 | 0 |
Carrying value | Subordinated deferrable debt | ' | ' |
Liabilities: | ' | ' |
Subordinated debt | 400,000 | 400,000 |
Carrying value | Members' subordinated certificates | ' | ' |
Liabilities: | ' | ' |
Subordinated debt | 1,486,965 | 1,729,226 |
Fair value | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 842,915 | 177,062 |
Restricted cash | 7,256 | 7,696 |
Investments | 28,702 | 31,632 |
Time deposits | 700,000 | 700,000 |
Deferred compensation investments | 4,035 | 3,716 |
Loans to members, net | 21,015,784 | 21,318,406 |
Debt service reserve funds | 39,353 | 39,803 |
Derivative instruments | 261,598 | 257,878 |
Liabilities: | ' | ' |
Short-term debt | 6,547,673 | 7,751,021 |
Long-term debt | 14,079,914 | 12,156,097 |
Guarantee liability | 26,061 | 27,730 |
Derivative instruments | 380,518 | 475,278 |
Off-balance sheet instruments: | ' | ' |
Commitments | 0 | 0 |
Fair value | Subordinated deferrable debt | ' | ' |
Liabilities: | ' | ' |
Subordinated debt | 372,200 | 404,300 |
Fair value | Members' subordinated certificates | ' | ' |
Liabilities: | ' | ' |
Subordinated debt | $1,486,965 | $1,880,672 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Details Textual) (USD $) | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | 31-May-13 | Feb. 28, 2014 | Feb. 28, 2014 |
Subordinated Deferrable Debt | Subordinated Deferrable Debt | Subordinated certificates | Subordinated certificates | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 1 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Maximum | Minimum | |||
Subordinated Deferrable Debt | Subordinated Deferrable Debt | Commercial Paper Sold Directly to Members at Par Commercial Paper Sold Directly to Non Members at Par and Select Notes | Commercial Paper Sold Directly to Members at Par Commercial Paper Sold Directly to Non Members at Par and Select Notes | Subordinated Deferrable Debt | Subordinated Deferrable Debt | Commercial Paper Sold Directly to Members at Par Commercial Paper Sold Directly to Non Members at Par and Select Notes | Commercial Paper Sold Directly to Members at Par Commercial Paper Sold Directly to Non Members at Par and Select Notes | Collateral Trust Bonds and Medium Term Notes | Collateral Trust Bonds and Medium Term Notes | Subordinated certificates | Subordinated certificates | Notes Payable, Other Payables | Notes Payable, Other Payables | |||||||||||||||
Maturity Period of Short Term Debt for which Fair Value is Estimated Based on Quoted Market Rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | '90 days |
Cash and Cash Equivalents, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | $843,000,000 | $177,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Cash and Cash Equivalents | 7,256,000 | 7,696,000 | ' | ' | ' | ' | 7,000,000 | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | 29,000,000 | 32,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time Deposits, at Carrying Value | 700,000,000 | 700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000,000 | 700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinated Long-term Debt, Noncurrent | ' | ' | 400,000,000 | 400,000,000 | 1,486,965,000 | 1,729,226,000 | ' | ' | 4,000,000 | 4,000,000 | ' | ' | ' | ' | 372,000,000 | 404,000,000 | ' | ' | ' | ' | ' | ' | 1,487,000,000 | 1,881,000,000 | ' | ' | ' | ' |
Loans Receivable, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,016,000,000 | 21,318,000,000 | ' | ' | ' | ' | ' | ' |
Debt Service Reserve | 39,353,000 | 39,803,000 | ' | ' | ' | ' | 39,000,000 | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, Current | 6,541,987,000 | 7,719,483,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,353,000,000 | 2,840,000,000 | ' | ' | ' | ' | 1,433,000,000 | 1,210,000,000 | 1,495,000,000 | 2,912,000,000 | ' | ' | ' | ' | 267,000,000 | 789,000,000 | ' | ' |
Other Long-term Debt, Noncurrent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,424,000,000 | 7,410,000,000 | ' | ' | ' | ' | 5,656,000,000 | 4,746,000,000 | ' | ' |
Guarantees, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | 28,000,000 | ' | ' | ' | ' | ' | ' |
Derivative assets | 261,598,000 | 257,878,000 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | 261,598,000 | 257,878,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | $380,518,000 | $475,278,000 | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | $380,518,000 | $475,278,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 28, 2014 | Feb. 28, 2013 | Nov. 30, 2013 | 31-May-13 | Nov. 30, 2012 | 31-May-12 | |||
Statement of operations: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest income | $238,732 | $234,021 | $719,057 | $715,736 | ' | ' | ' | ' | |||
Interest expense | -163,534 | -171,899 | -496,464 | -522,796 | ' | ' | ' | ' | |||
Net interest income | 75,198 | 62,122 | 222,593 | 192,940 | ' | ' | ' | ' | |||
Provision for loan losses | -787 | 378 | -3,161 | -4,927 | ' | ' | ' | ' | |||
Net interest income after provision for loan losses | 74,411 | 62,500 | 219,432 | 188,013 | ' | ' | ' | ' | |||
Non-interest income: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Fee and other income | 5,702 | 6,337 | 14,983 | 29,102 | ' | ' | ' | ' | |||
Derivative (gains) losses | -31,623 | 46,626 | 43,981 | 18,268 | ' | ' | ' | ' | |||
Results of operations of foreclosed assets | -1,164 | 6,478 | -8,482 | 804 | ' | ' | ' | ' | |||
Total non-interest income | -27,085 | 59,441 | 50,482 | 48,174 | ' | ' | ' | ' | |||
Non-interest expense: | ' | ' | ' | ' | ' | ' | ' | ' | |||
General and administrative expenses | -17,183 | -30,279 | -54,371 | -66,900 | ' | ' | ' | ' | |||
Provision for (recovery of) guarantee liability | -117 | 46 | -159 | 147 | ' | ' | ' | ' | |||
Losses on early extinguishment of debt | -1,452 | 0 | -1,452 | 0 | ' | ' | ' | ' | |||
Other | 210 | -554 | -88 | -5,101 | ' | ' | ' | ' | |||
Total non-interest expense | -18,542 | -30,787 | -56,070 | -71,854 | ' | ' | ' | ' | |||
Income prior to income taxes | 28,784 | 91,154 | 213,844 | 164,333 | ' | ' | ' | ' | |||
Income tax expense | -243 | -1,067 | -2,045 | -1,519 | ' | ' | ' | ' | |||
Net income | 28,541 | 90,087 | 211,799 | 162,814 | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total loans outstanding | 20,635,333 | [1],[2] | 19,477,734 | 20,635,333 | [1],[2] | 19,477,734 | ' | 20,296,317 | [1],[2] | ' | ' |
Deferred origination costs | 9,731 | 8,414 | 9,731 | 8,414 | ' | 9,557 | ' | ' | |||
Less: Allowance for loan losses | -56,040 | -148,411 | -56,040 | -148,411 | -55,199 | -54,325 | -148,737 | -143,326 | |||
Loans to members, net | 20,589,024 | 19,337,737 | 20,589,024 | 19,337,737 | ' | 20,251,549 | ' | ' | |||
Other assets | 2,518,305 | 2,160,464 | 2,518,305 | 2,160,464 | ' | ' | ' | ' | |||
Total assets | 23,107,329 | 21,498,201 | 23,107,329 | 21,498,201 | ' | 22,071,651 | ' | ' | |||
Other | ' | ' | ' | ' | ' | ' | ' | ' | |||
Statement of operations: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest income | 12,613 | 13,971 | 37,958 | 42,304 | ' | ' | ' | ' | |||
Interest expense | -9,185 | -10,395 | -27,766 | -31,558 | ' | ' | ' | ' | |||
Net interest income | 3,428 | 3,576 | 10,192 | 10,746 | ' | ' | ' | ' | |||
Provision for loan losses | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Net interest income after provision for loan losses | 3,428 | 3,576 | 10,192 | 10,746 | ' | ' | ' | ' | |||
Non-interest income: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Fee and other income | 374 | 335 | 1,068 | 1,021 | ' | ' | ' | ' | |||
Derivative (gains) losses | -815 | 1,690 | 438 | -232 | ' | ' | ' | ' | |||
Results of operations of foreclosed assets | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Total non-interest income | -441 | 2,025 | 1,506 | 789 | ' | ' | ' | ' | |||
Non-interest expense: | ' | ' | ' | ' | ' | ' | ' | ' | |||
General and administrative expenses | -2,505 | -2,870 | -6,630 | -7,648 | ' | ' | ' | ' | |||
Provision for (recovery of) guarantee liability | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Losses on early extinguishment of debt | 0 | ' | 0 | ' | ' | ' | ' | ' | |||
Other | 0 | 0 | 1 | 0 | ' | ' | ' | ' | |||
Total non-interest expense | -2,505 | -2,870 | -6,629 | -7,648 | ' | ' | ' | ' | |||
Income prior to income taxes | 482 | 2,731 | 5,069 | 3,887 | ' | ' | ' | ' | |||
Income tax expense | -243 | -1,067 | -2,045 | -1,519 | ' | ' | ' | ' | |||
Net income | 239 | 1,664 | 3,024 | 2,368 | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total loans outstanding | 1,234,787 | 1,245,392 | 1,234,787 | 1,245,392 | ' | ' | ' | ' | |||
Deferred origination costs | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Less: Allowance for loan losses | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Loans to members, net | 1,234,787 | 1,245,392 | 1,234,787 | 1,245,392 | ' | ' | ' | ' | |||
Other assets | 145,847 | 151,832 | 145,847 | 151,832 | ' | ' | ' | ' | |||
Total assets | 1,380,634 | 1,397,224 | 1,380,634 | 1,397,224 | ' | ' | ' | ' | |||
Elimination | ' | ' | ' | ' | ' | ' | ' | ' | |||
Statement of operations: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest income | -8,808 | -9,989 | -26,659 | -30,289 | ' | ' | ' | ' | |||
Interest expense | 8,808 | 9,987 | 26,659 | 30,287 | ' | ' | ' | ' | |||
Net interest income | 0 | -2 | 0 | -2 | ' | ' | ' | ' | |||
Provision for loan losses | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Net interest income after provision for loan losses | 0 | -2 | 0 | -2 | ' | ' | ' | ' | |||
Non-interest income: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Fee and other income | 201 | -227 | 601 | -681 | ' | ' | ' | ' | |||
Derivative (gains) losses | 0 | -18 | 0 | -18 | ' | ' | ' | ' | |||
Results of operations of foreclosed assets | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Total non-interest income | 201 | -245 | 601 | -699 | ' | ' | ' | ' | |||
Non-interest expense: | ' | ' | ' | ' | ' | ' | ' | ' | |||
General and administrative expenses | -201 | 229 | -601 | 683 | ' | ' | ' | ' | |||
Provision for (recovery of) guarantee liability | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Losses on early extinguishment of debt | 0 | ' | 0 | ' | ' | ' | ' | ' | |||
Other | 0 | 18 | 0 | 18 | ' | ' | ' | ' | |||
Total non-interest expense | -201 | 247 | -601 | 701 | ' | ' | ' | ' | |||
Income prior to income taxes | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Income tax expense | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Net income | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total loans outstanding | -1,204,808 | -1,213,018 | -1,204,808 | -1,213,018 | ' | ' | ' | ' | |||
Deferred origination costs | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Less: Allowance for loan losses | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Loans to members, net | -1,204,808 | -1,213,018 | -1,204,808 | -1,213,018 | ' | ' | ' | ' | |||
Other assets | -120,199 | -124,793 | -120,199 | -124,793 | ' | ' | ' | ' | |||
Total assets | -1,325,007 | -1,337,811 | -1,325,007 | -1,337,811 | ' | ' | ' | ' | |||
CFC | ' | ' | ' | ' | ' | ' | ' | ' | |||
Statement of operations: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest income | 234,927 | 230,039 | 707,758 | 703,721 | ' | ' | ' | ' | |||
Interest expense | -163,157 | -171,491 | -495,357 | -521,525 | ' | ' | ' | ' | |||
Net interest income | 71,770 | 58,548 | 212,401 | 182,196 | ' | ' | ' | ' | |||
Provision for loan losses | -787 | 378 | -3,161 | -4,927 | ' | ' | ' | ' | |||
Net interest income after provision for loan losses | 70,983 | 58,926 | 209,240 | 177,269 | ' | ' | ' | ' | |||
Non-interest income: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Fee and other income | 5,127 | 6,229 | 13,314 | 28,762 | ' | ' | ' | ' | |||
Derivative (gains) losses | -30,808 | 44,954 | 43,543 | 18,518 | ' | ' | ' | ' | |||
Results of operations of foreclosed assets | -1,164 | 6,478 | -8,482 | 804 | ' | ' | ' | ' | |||
Total non-interest income | -26,845 | 57,661 | 48,375 | 48,084 | ' | ' | ' | ' | |||
Non-interest expense: | ' | ' | ' | ' | ' | ' | ' | ' | |||
General and administrative expenses | -14,477 | -27,638 | -47,140 | -59,935 | ' | ' | ' | ' | |||
Provision for (recovery of) guarantee liability | -117 | 46 | -159 | 147 | ' | ' | ' | ' | |||
Losses on early extinguishment of debt | -1,452 | ' | -1,452 | ' | ' | ' | ' | ' | |||
Other | 210 | -572 | -89 | -5,119 | ' | ' | ' | ' | |||
Total non-interest expense | -15,836 | -28,164 | -48,840 | -64,907 | ' | ' | ' | ' | |||
Income prior to income taxes | 28,302 | 88,423 | 208,775 | 160,446 | ' | ' | ' | ' | |||
Income tax expense | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Net income | 28,302 | 88,423 | 208,775 | 160,446 | ' | ' | ' | ' | |||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total loans outstanding | 19,400,546 | [1],[2] | 19,445,360 | 19,400,546 | [1],[2] | 19,445,360 | ' | 19,019,817 | [1],[2] | ' | ' |
Deferred origination costs | 9,731 | 8,414 | 9,731 | 8,414 | ' | ' | ' | ' | |||
Less: Allowance for loan losses | -44,359 | -134,062 | -44,359 | -134,062 | -42,762 | -41,246 | -133,578 | -126,941 | |||
Loans to members, net | 20,559,045 | 19,305,363 | 20,559,045 | 19,305,363 | ' | ' | ' | ' | |||
Other assets | 2,492,657 | 2,133,425 | 2,492,657 | 2,133,425 | ' | ' | ' | ' | |||
Total assets | $23,051,702 | $21,438,788 | $23,051,702 | $21,438,788 | ' | ' | ' | ' | |||
[1] | Excludes deferred origination costs of $10 million at February 28, 2014 and May 31, 2013. | ||||||||||
[2] | Includes nonperforming and restructured loans. |