Document and Entity Information
Document and Entity Information | 3 Months Ended |
Aug. 31, 2017shares | |
Document and Entity Information | |
Entity Registrant Name | NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/ |
Entity Central Index Key | 70,502 |
Document Type | 10-Q |
Document Period End Date | Aug. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --05-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | ||
Income Statement [Abstract] | |||
Interest income | $ 265,915 | $ 256,835 | |
Interest expense | [1],[2] | (192,731) | (181,080) |
Net interest income | 73,184 | 75,755 | |
Benefit (provision) for loan losses | 298 | (1,928) | |
Net interest income after benefit (provision) for loan losses | 73,482 | 73,827 | |
Non-interest income: | |||
Fee and other income | 3,945 | 4,530 | |
Derivative losses | (46,198) | (188,293) | |
Results of operations of foreclosed assets | (24) | (1,112) | |
Total non-interest income | (42,277) | (184,875) | |
Non-interest expense: | |||
Salaries and employee benefits | (11,823) | (11,424) | |
Other general and administrative expenses | (9,813) | (9,435) | |
Other non-interest expense | (522) | (443) | |
Total non-interest expense | (22,158) | (21,302) | |
Income (loss) before income taxes | 9,047 | (132,350) | |
Income tax (expense) benefit | (32) | 89 | |
Net income (loss) | 9,015 | (132,261) | |
Less: Net loss attributable to noncontrolling interests | 118 | 690 | |
Net income (loss) attributable to CFC | $ 9,133 | $ (131,571) | |
[1] | Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. | ||
[2] | Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss ) | $ 9,015 | $ (132,261) |
Other comprehensive income (loss): | ||
Unrealized losses on available-for-sale investment securities | (1,151) | (11) |
Reclassification of losses on foreclosed assets to net income | 0 | 9,823 |
Reclassification of derivative gains to net income | (192) | (197) |
Defined benefit plan adjustments | 127 | 44 |
Other comprehensive income (loss) | (1,216) | 9,659 |
Total comprehensive income (loss) | 7,799 | (122,602) |
Less: Total comprehensive loss attributable to noncontrolling interests | 118 | 690 |
Total comprehensive income (loss) attributable to CFC | $ 7,917 | $ (121,912) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 269,971 | $ 166,615 |
Restricted cash | 22,690 | 21,806 |
Time deposits | 126,000 | 226,000 |
Investment securities available for sale, at fair value | 91,404 | 92,554 |
Loans to members | 24,642,077 | 24,367,044 |
Less: Allowance for loan losses | (37,078) | (37,376) |
Loans to members, net | 24,604,999 | 24,329,668 |
Accrued interest receivable | 111,915 | 111,493 |
Other receivables | 43,252 | 45,469 |
Fixed assets, net | 124,023 | 122,260 |
Derivative assets | 40,466 | 49,481 |
Other assets | 45,806 | 40,346 |
Total assets | 25,480,526 | 25,205,692 |
LIABILITIES | ||
Accrued interest payable | 195,472 | 137,476 |
Debt outstanding: | ||
Short-term borrowings | 3,074,660 | 3,342,900 |
Long-term debt | 18,428,819 | 17,955,594 |
Subordinated deferrable debt | 742,307 | 742,274 |
Members’ subordinated certificates: | ||
Membership subordinated certificates | 630,098 | 630,098 |
Loan and guarantee subordinated certificates | 567,012 | 567,830 |
Member capital securities | 221,097 | 221,097 |
Total members’ subordinated certificates | 1,418,207 | 1,419,025 |
Total debt outstanding | 23,663,993 | 23,459,793 |
Patronage capital retirement payable | 39,807 | 0 |
Deferred income | 70,686 | 73,972 |
Derivative liabilities | 402,423 | 385,337 |
Other liabilities | 46,565 | 50,309 |
Total liabilities | 24,418,946 | 24,106,887 |
Commitments and contingencies | ||
CFC equity: | ||
Retained equity | 1,020,335 | 1,056,778 |
Accumulated other comprehensive income | 11,959 | 13,175 |
Total CFC equity | 1,032,294 | 1,069,953 |
Noncontrolling interests | 29,286 | 28,852 |
Total equity | 1,061,580 | 1,098,805 |
Total liabilities and equity | $ 25,480,526 | $ 25,205,692 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Non-controlling Interests | Total CFC Equity | Accumulated Other Comprehensive Income | CFC Retained Equity | Unallocated Net Income (Loss) | Members’ Capital Reserve | Patronage Capital Allocated | Membership Fees and Educational Fund |
Balance at May. 31, 2016 | $ 817,378 | $ 26,086 | $ 791,292 | $ 1,058 | $ 790,234 | $ (513,610) | $ 587,219 | $ 713,853 | $ 2,772 |
Net income (loss ) | (132,261) | (690) | (131,571) | (131,571) | (131,571) | ||||
Other comprehensive income (loss) | 9,659 | 9,659 | 9,659 | ||||||
Patronage capital retirement | (42,129) | (42,129) | (42,129) | (42,129) | |||||
Other | 209 | 619 | (410) | (410) | (410) | ||||
Balance at Aug. 31, 2016 | 652,856 | 26,015 | 626,841 | 10,717 | 616,124 | (645,181) | 587,219 | 671,724 | 2,362 |
Balance at May. 31, 2017 | 1,098,805 | 28,852 | 1,069,953 | 13,175 | 1,056,778 | (338,128) | 630,305 | 761,701 | 2,900 |
Net income (loss ) | 9,015 | (118) | 9,133 | 9,133 | 9,133 | ||||
Other comprehensive income (loss) | (1,216) | (1,216) | (1,216) | ||||||
Patronage capital retirement | (45,220) | (45,220) | (45,220) | (45,220) | |||||
Other | 196 | 552 | (356) | (356) | (356) | ||||
Balance at Aug. 31, 2017 | $ 1,061,580 | $ 29,286 | $ 1,032,294 | $ 11,959 | $ 1,020,335 | $ (328,995) | $ 630,305 | $ 716,481 | $ 2,544 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss ) | $ 9,015 | $ (132,261) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred loan fees | (3,229) | (2,991) |
Amortization of debt issuance costs and deferred charges | 2,478 | 2,271 |
Amortization of discount on long-term debt | 2,473 | 2,308 |
Amortization of issuance costs for bank revolving bank line of credit | 1,317 | 1,342 |
Depreciation and amortization of fixed assets | 1,862 | 1,723 |
Provision (benefit) for loan losses | (298) | 1,928 |
Results of operations of foreclosed assets | 0 | 1,112 |
Derivative forward value losses | 25,976 | 164,903 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | (422) | 3,487 |
Accrued interest payable | 57,996 | 61,932 |
Deferred income | (57) | 218 |
Other | (9,156) | (5,323) |
Net cash provided by operating activities | 87,955 | 100,649 |
Cash flows from investing activities: | ||
Advances on loans | (2,183,609) | (2,209,301) |
Principal collections on loans | 1,908,913 | 1,864,009 |
Net investment in fixed assets | (3,410) | (4,883) |
Net cash proceeds from sale of foreclosed assets | 0 | 46,259 |
Proceeds from foreclosed assets | 0 | 4,036 |
Net proceeds from time deposits | 100,000 | 0 |
Change in restricted cash | (884) | (16,691) |
Net cash used in investing activities | (178,990) | (316,571) |
Cash flows from financing activities: | ||
Proceeds from (repayments of) of short-term borrowings, net | (301,261) | 256,572 |
Proceeds from short-term borrowings with original maturity greater than 90 days | 273,436 | 195,576 |
Repayments of short term-debt with original maturity greater than 90 days | (240,415) | (239,585) |
Proceeds from issuance of long-term debt, net of issuance costs | 580,008 | 283,330 |
Payments for retirement of long-term debt | (111,700) | (193,113) |
Payments for issuance costs for subordinated deferrable debt | 0 | (68) |
Proceeds from issuance of members’ subordinated certificates | 1,627 | 1,236 |
Payments for retirement of members’ subordinated certificates | (2,445) | (1,915) |
Payments for retirement of patronage capital | (4,859) | 0 |
Net cash provided by financing activities | 194,391 | 302,033 |
Net increase in cash and cash equivalents | 103,356 | 86,111 |
Beginning cash and cash equivalents | 166,615 | 204,540 |
Ending cash and cash equivalents | 269,971 | 290,651 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 129,785 | 113,226 |
Cash paid for income taxes | $ 25 | $ 199 |
Summary of Significant Accounti
Summary of Significant Accounting Policies - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company National Rural Utilities Cooperative Finance Corporation (“CFC”) is a member-owned cooperative association incorporated under the laws of the District of Columbia in April 1969. CFC’s principal purpose is to provide its members with financing to supplement the loan programs of the Rural Utilities Service (“RUS”) of the United States Department of Agriculture (“USDA”). CFC makes loans to its rural electric members so they can acquire, construct and operate electric distribution, generation, transmission and related facilities. CFC also provides its members with credit enhancements in the form of letters of credit and guarantees of debt obligations. As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities. CFC is exempt from federal income taxes. Basis of Presentation and Use of Estimates The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and should be read in conjunction with the audited consolidated financial statements, and related notes thereto, included in CFC’s Annual Report on Form 10-K for the fiscal year ended May 31, 2017 (“ 2017 Form 10-K”). We believe that all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures. While management makes its best judgment, actual amounts or results could differ from these estimates. Our most significant estimates and assumptions involve determining the allowance for loan losses and the fair value of financial assets and liabilities. The results of operations in the interim financial statements is not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year ending May 31, 2018. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of CFC, variable interest entities (“VIEs“) where CFC is the primary beneficiary and subsidiary entities created and controlled by CFC to hold foreclosed assets. CFC did not have any entities that held foreclosed assets as of August 31, 2017 or May 31, 2017 . All intercompany balances and transactions have been eliminated. National Cooperative Services Corporation (“NCSC”) and Rural Telephone Finance Cooperative (“RTFC”) are VIEs which are required to be consolidated by CFC. NCSC is a taxable member-owned cooperative that may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural”, and for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. RTFC is a taxable Subchapter T cooperative association that provides financing for its rural telecommunications members and their affiliates. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. Restricted Cash Restricted cash, which totaled $23 million and $22 million as of August 31, 2017 and May 31, 2017 , respectively, consisted primarily of funds held in escrow. On July 1, 2016, CFC completed the sale of Caribbean Asset Holdings, LLC (“CAH”), an entity that held foreclosed assets, to ATN VI Holdings, LLC. In connection with the sale, $16 million of the sale proceeds was deposited into escrow to fund potential indemnification claims for a period of 15 months following the closing. On September 27, 2017, we received a claim notice from the purchaser asserting potential indemnification claims and seeking funding from the escrow. We are evaluating whether the claims are subject to indemnification and what amounts, if any, would be owing to the purchaser under the purchase agreement. Interest Income The following table presents interest income, by interest-earning asset category, for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, (Dollars in thousands) 2017 2016 Interest income by interest-earning asset type: Long-term fixed-rate loans (1) $ 249,364 $ 244,128 Long-term variable-rate loans 5,863 4,527 Line of credit loans 8,707 5,966 TDR loans (2) 226 218 Other income, net (3) (232 ) (284 ) Total loans 263,928 254,555 Investments 1,987 2,280 Total interest income $ 265,915 $ 256,835 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. (2) Troubled debt restructuring (“TDR”) loans. (3) Consists of late payment fees and net amortization of deferred loan fees and loan origination costs. Deferred income of $71 million and $74 million as of August 31, 2017 and May 31, 2017 , respectively, consists primarily of deferred loan conversion fees totaling $65 million and $68 million , respectively. Interest Expense The following table presents interest expense, by debt product type, for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, (Dollars in thousands) 2017 2016 Interest expense by debt product type: (1)(2) Short-term borrowings $ 10,539 $ 4,882 Medium-term notes 25,116 23,585 Collateral trust bonds 85,277 85,049 Long-term notes payable 47,482 43,129 Subordinated deferrable debt 9,416 9,426 Subordinated certificates 14,901 15,009 Total interest expense $ 192,731 $ 181,080 ____________________________ (1) Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. (2) Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. Recently Issued But Not Yet Adopted Accounting Standards Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Acti vities, which is intended to simplify and amend the application of hedge accounting to more clearly portray the economics of an entity’s risk management strategies in its financial statements. The new guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting and reduce complexity in fair value hedges of interest rate risk. It also changes how companies assess effectiveness and amends the presentation and disclosure requirements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally the entire change in the fair value of a hedging instrument will be required to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. The guidance is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted in any interim period or fiscal year before the effective date. The guidance is effective for us beginning June 1, 2019. We do not expect that the adoption of the new standard will have an impact on our consolidated financial statements, as we currently do not apply hedge accounting to our derivatives. Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the accounting for credit losses on certain financial assets to an expected loss model from the incurred loss model currently in use. The new guidance will likely result in earlier recognition of credit losses based on measuring the expected credit losses over the estimated life of financial assets held at each reporting date. The expected loss model will be the basis for determining the allowance for credit losses for loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. In addition, the new guidance modifies the other-than-temporary impairment model for available-for-sale debt securities to require the recognition of credit losses through a valuation allowance, which allows for the reversal of credit impairments in future periods. The ASU will also require enhanced disclosures to help users of financial statements better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This update is effective for us beginning June 1, 2020. Upon adoption, we will be required to record a cumulative-effect adjustment to retained earnings. The impact on our consolidated financial statements from the adoption of this new guidance will depend on the composition and risk profile of our loan portfolio as of the date of adoption. We do not expect to early adopt this guidance. Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of the recognition, measurement, presentation and disclosure of certain financial instruments, including equity investments and liabilities measured at fair value under the fair value option. The guidance also updates fair value presentation and disclosure requirements for financial instruments measured at amortized cost. The ASU requires investments in equity securities that do not result in consolidation and are not accounted for under the equity method to be measured at fair value with changes in the fair value recognized through net income, unless one of two available exceptions apply. For financial liabilities where the fair value option has been elected, the portion of the total change in fair value caused by changes in the company’s own credit risk is required to be presented separately in OCI. The classification and measurement guidance is effective for public entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This update will be effective for us beginning June 1, 2018. Upon adoption, we will be required to reclassify the gain (loss) related to our equity investment securities classified as available-for-sale from accumulated other comprehensive income (“AOCI”) to retained earnings as a cumulative-effect adjustment and begin recording future changes in fair value through earnings. We had a gain of $11 million recorded in AOCI for our available-for-sale equity investments as of August 31, 2017 . The impact on our consolidated financial statements at adoption will depend on the net unrealized gains (losses) recorded in AOCI for these equity investments as of the date of adoption. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other guidance. The new guidance is effective for us beginning June 1, 2018. Because the scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, securities, and derivatives, which account for the substantial majority of our revenues, we do not expect that the adoption of the guidance will have a material impact, if any, on our consolidated financial statements. |
Variable Interest Entities - (N
Variable Interest Entities - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entity Disclosure | NOTE 2—VARIABLE INTEREST ENTITIES NCSC and RTFC meet the definition of a VIE because they do not have sufficient equity investment at risk to finance their activities without financial support. CFC is the primary source of funding for NCSC and the sole source of funding for RTFC. Under the terms of management agreements, CFC manages the business operations of NCSC and RTFC. CFC also unconditionally guarantees full indemnification for any loan losses of NCSC and RTFC pursuant to guarantee agreements with each company. CFC earns management and guarantee fees from its agreements with NCSC and RTFC. NCSC and RTFC creditors have no recourse against CFC in the event of a default by NCSC and RTFC, unless there is a guarantee agreement under which CFC has guaranteed NCSC or RTFC debt obligations to a third party. The following table provides information on incremental consolidated assets and liabilities of VIE’s included in CFC’s condensed consolidated financial statements, after applying intercompany eliminations, as of August 31, 2017 and May 31, 2017 . (Dollars in thousands) August 31, 2017 May 31, 2017 Total loans outstanding $ 1,011,420 $ 968,343 Other assets 11,194 10,157 Total assets $ 1,022,614 $ 978,500 Long-term debt $ 10,000 $ 10,000 Other liabilities 38,308 36,899 Total liabilities $ 48,308 $ 46,899 The following table provides information on CFC’s credit commitments to NCSC and RTFC, and its potential exposure to loss as of August 31, 2017 and May 31, 2017 . (Dollars in thousands) August 31, 2017 May 31, 2017 CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 975,978 931,686 CFC third-party guarantees 13,455 14,697 Other credit enhancements (2) 20,828 20,963 Total credit enhancements 34,283 35,660 Total outstanding commitments 1,010,261 967,346 CFC available credit commitments $ 4,489,739 $ 4,532,654 ____________________________ (1) Borrowings payable to CFC are eliminated in consolidation. (2) Represents outstanding notes payable and derivative instruments guaranteed by CFC. Guarantees of NCSC debt and derivative instruments are not presented in the amount in “Note 10—Guarantees” as the debt and derivatives are reported on the condensed consolidated balance sheets. CFC loans to NCSC and RTFC are secured by all assets and revenues of NCSC and RTFC. CFC’s maximum potential exposure for the credit enhancements totaled $37 million . The maturities for obligations guaranteed by CFC extend through 2031. |
Investment Securities - (Notes)
Investment Securities - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Investments [Abstract] | |
Investment Securities | NOTE 3—INVESTMENT SECURITIES Our investment securities consist of holdings of Federal Agricultural Mortgage Corporation (“Farmer Mac”) preferred and common stock. The following tables present the amortized cost, gross unrealized gains and losses and fair value of our investment securities, all of which were classified as available for sale, as of August 31, 2017 and May 31, 2017 . August 31, 2017 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Farmer Mac—Series A Non-Cumulative Preferred Stock $ 30,000 $ 1,320 $ — $ 31,320 Farmer Mac—Series B Non-Cumulative Preferred Stock 25,000 2,250 — 27,250 Farmer Mac—Series C Non-Cumulative Preferred Stock 25,000 2,300 — 27,300 Farmer Mac—Class A Common Stock 538 4,996 — 5,534 Total investment securities, available-for-sale $ 80,538 $ 10,866 $ — $ 91,404 May 31, 2017 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Farmer Mac—Series A Non-Cumulative Preferred Stock $ 30,000 $ 1,585 $ — $ 31,585 Farmer Mac—Series B Non-Cumulative Preferred Stock 25,000 1,940 — 26,940 Farmer Mac—Series C Non-Cumulative Preferred Stock 25,000 4,150 — 29,150 Farmer Mac—Class A Common Stock 538 4,341 — 4,879 Total investment securities, available-for-sale $ 80,538 $ 12,016 $ — $ 92,554 We did not have any investment securities in an unrealized loss position as of August 31, 2017 or May 31, 2017 . For additional information regarding the unrealized gains (losses) recorded on our available-for-sale investment securities, see “Note 9—Equity—Accumulated Other Comprehensive Income.” |
Loans and Commitments - (Notes)
Loans and Commitments - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Commitments | NOTE 4—LOANS AND COMMITMENTS Loans, which are classified as held for investment, are carried at the outstanding unpaid principal balance net of unamortized loan origination costs. The following table presents loans outstanding, by loan type and by member class, as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in thousands) Loans Outstanding Unadvanced Commitments (1) Loans Outstanding Unadvanced Commitments (1) Loan type: Long-term loans: Fixed rate $ 22,435,089 $ — $ 22,136,690 $ — Variable rate 856,076 4,973,913 847,419 4,802,319 Total long-term loans 23,291,165 4,973,913 22,984,109 4,802,319 Line of credit loans 1,339,861 7,787,977 1,372,221 7,772,655 Total loans outstanding 24,631,026 12,761,890 24,356,330 12,574,974 Deferred loan origination costs 11,051 — 10,714 — Loans to members $ 24,642,077 $ 12,761,890 $ 24,367,044 $ 12,574,974 Member class: CFC: Distribution $ 19,069,531 $ 8,304,328 $ 18,825,366 $ 8,295,146 Power supply 4,490,366 3,433,598 4,504,791 3,276,113 Statewide and associate 59,709 126,454 57,830 144,406 Total CFC 23,619,606 11,864,380 23,387,987 11,715,665 NCSC 658,911 609,563 613,924 584,944 RTFC 352,509 287,947 354,419 274,365 Total loans outstanding 24,631,026 12,761,890 24,356,330 12,574,974 Deferred loan origination costs 11,051 — 10,714 — Loans to members $ 24,642,077 $ 12,761,890 $ 24,367,044 $ 12,574,974 ____________________________ (1) The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. Unadvanced Loan Commitments Unadvanced loan commitments represent approved and executed loan contracts for which funds have not been advanced to borrowers. The following table summarizes the available balance under unadvanced loan commitments as of August 31, 2017 and the related maturities by fiscal year and thereafter by loan type: Available Balance Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2018 2019 2020 2021 2022 Thereafter Line of credit loans $ 7,787,977 $ 552,577 $ 4,518,898 $ 690,939 $ 930,767 $ 800,070 $ 294,726 Long-term loans 4,973,913 400,983 972,366 681,143 707,552 1,904,275 307,594 Total $ 12,761,890 $ 953,560 $ 5,491,264 $ 1,372,082 $ 1,638,319 $ 2,704,345 $ 602,320 Unadvanced loan commitments related to line of credit loans are typically for periods not to exceed five years and are generally revolving facilities used for working capital and backup liquidity purposes. Historically, we have experienced a very low utilization rate on line of credit loan facilities, whether or not there is a material adverse change clause. Since we generally do not charge a fee on the unadvanced portion of the majority of our loan facilities, our borrowers will typically request long-term facilities to fund construction work plans and other capital expenditures for periods of up to five years and draw down on the facility over that time. 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. These factors contribute to our expectation that the majority of the unadvanced loan commitments will expire without being fully drawn upon and that the total unadvanced amount does not necessarily represent future cash funding requirements. Unadvanced Loan Commitments—Conditional The substantial majority of our line of credit commitments and all of our unadvanced long-term loan commitments include material adverse change clauses. Unadvanced loan commitments subject to material adverse change clauses totaled $9,974 million and $9,973 million as of August 31, 2017 and May 31, 2017 , respectively. Prior to making an advance on these facilities, we confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with loan terms and conditions. In some cases, the borrower’s access to the full amount of the facility is further constrained by the designated purpose, imposition of borrower-specific restrictions or by additional conditions that must be met prior to advancing funds. Unadvanced Loan Commitments—Unconditional Unadvanced loan commitments not subject to material adverse change clauses at the time of each advance consisted of unadvanced committed lines of credit totaling $2,788 million and $2,602 million as of August 31, 2017 and May 31, 2017 , respectively. As such, we are required to advance amounts on these committed facilities as long as the borrower is in compliance with the terms and conditions of the facility. The following table summarizes the available balance under unconditional committed lines of credit, and the related maturities by fiscal year and thereafter, as of August 31, 2017 . Available Balance Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2018 2019 2020 2021 2022 Thereafter Committed lines of credit $2,787,848 $ 214,406 $543,054 $454,185 $631,840 $698,272 $246,091 Loan Sales We transfer, from time to time, loans to third parties under our direct loan sale program. We sold CFC loans with outstanding balances totaling $70 million and $20 million , at par for cash, during the three months ended August 31, 2017 and 2016 , respectively. We recorded immaterial losses upon the sale of these loans, attributable to the unamortized deferred loan origination costs associated with the transferred loans. Pledging of Loans We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. The following table summarizes our loans outstanding as collateral pledged to secure our collateral trust bonds, Clean Renewable Energy Bonds, notes payable to Farmer Mac and notes payable to the Federal Financing Bank and guaranteed by RUS under the Guaranteed Underwriter Program of the USDA (“Guaranteed Underwriter Program”) and the amount of the corresponding debt outstanding as of August 31, 2017 and May 31, 2017 . See “Note 5—Short-Term Borrowings” and “Note 6—Long-Term Debt” for information on our borrowings. (Dollars in thousands) August 31, 2017 May 31, 2017 Collateral trust bonds: 2007 indenture: Distribution system mortgage notes $ 8,619,147 $ 8,740,572 RUS-guaranteed loans qualifying as permitted investments 144,978 146,373 Total pledged collateral $ 8,764,125 $ 8,886,945 Collateral trust bonds outstanding 7,697,711 7,697,711 1994 indenture: Distribution system mortgage notes $ 258,334 $ 263,007 Collateral trust bonds outstanding 225,000 225,000 Farmer Mac: Distribution and power supply system mortgage notes $ 2,909,260 $ 2,942,456 Notes payable outstanding 2,502,467 2,513,389 Clean Renewable Energy Bonds Series 2009A: Distribution and power supply system mortgage notes $ 14,219 $ 14,943 Cash 760 481 Total pledged collateral $ 14,979 $ 15,424 Notes payable outstanding 13,214 13,214 Federal Financing Bank: Distribution and power supply system mortgage notes $ 5,777,114 $ 5,833,515 Notes payable outstanding 5,073,613 4,985,748 Credit Quality We closely monitor loan performance trends to manage and evaluate our credit risk exposure. We seek to provide a balance between meeting the credit needs of our members, while also ensuring the sound credit quality of our loan portfolio. Payment status and internal risk ratings are key indicators, among others, of the level of credit risk in our loan portfolio. As part of our strategy in managing our credit risk exposure, we entered into a long-term standby purchase commitment agreement with Farmer Mac. Under this agreement, we may designate certain long-term loans to be covered under the commitment, subject to approval by Farmer Mac, and in the event any such loan later goes into payment default for at least 90 days, upon request by us, Farmer Mac must purchase such loan at par value. The aggregate unpaid principal balance of designated and Farmer Mac approved loans was $802 million and $843 million as of August 31, 2017 and May 31, 2017 , respectively. Under the agreement, we are required to pay Farmer Mac a monthly fee based on the unpaid principal balance of loans covered under the purchase commitment. No loans had been put to Farmer Mac for purchase, pursuant to this agreement, as of August 31, 2017 . Also, we had long-term loans totaling $166 million and $167 million as of August 31, 2017 and May 31, 2017 , respectively, that were guaranteed by the Rural Utilities Service (“RUS”) of the United States Department of Agriculture. Payment Status of Loans The tables below present the payment status of loans outstanding by member class as of August 31, 2017 and May 31, 2017 . As indicated in the table, we did not have any past due loans as of either August 31, 2017 or May 31, 2017 . August 31, 2017 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Past Due Total Financing Receivables Nonaccrual Loans CFC: Distribution $ 19,069,531 $ — $ — $ — $ 19,069,531 $ — Power supply 4,490,366 — — — 4,490,366 — Statewide and associate 59,709 — — — 59,709 — CFC total 23,619,606 — — — 23,619,606 — NCSC 658,911 — — — 658,911 — RTFC 352,509 — — — 352,509 — Total loans outstanding $ 24,631,026 $ — $ — $ — $ 24,631,026 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % May 31, 2017 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Total Financing Nonaccrual Loans CFC: Distribution $ 18,825,366 $ — $ — $ — $ 18,825,366 $ — Power supply 4,504,791 — — — 4,504,791 — Statewide and associate 57,830 — — — 57,830 — CFC total 23,387,987 — — — 23,387,987 — NCSC 613,924 — — — 613,924 — RTFC 354,419 — — — 354,419 — Total loans outstanding $ 24,356,330 $ — $ — $ — $ 24,356,330 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % ____________________________ (1) All loans 90 days or more past due are on nonaccrual status. Troubled Debt Restructured (“TDR”) Loans We did not have any loans modified as TDRs during the three months ended August 31, 2017 . The following table provides a summary of loans modified as TDRs in prior periods, the performance status of these loans and the unadvanced loan commitments related to the TDR loans, by member class, as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in thousands) Loans Outstanding % of Total Loans Unadvanced Commitments Loans Outstanding % of Total Loans Unadvanced Commitments TDR loans: Performing TDR loans: CFC/Distribution $ 6,507 0.03 % $ — $ 6,581 0.02 % $ — RTFC 6,466 0.02 — 6,592 0.03 — Total performing TDR loans 12,973 0.05 — 13,173 0.05 — Total TDR loans $ 12,973 0.05 % $ — $ 13,173 0.05 % $ — We did not have any TDR loans classified as nonperforming as of August 31, 2017 or May 31, 2017 . TDR loans classified as performing as of August 31, 2017 and May 31, 2017 were performing in accordance with the terms of their respective restructured loan agreement and on accrual status as of the respective reported dates. One borrower with a TDR loan also had a line of credit facility, restricted for fuel purchases only, totaling $6 million as of both August 31, 2017 and May 31, 2017 . The outstanding amount under this facility totaled approximately $0.4 million and $0.5 million as of August 31, 2017 and May 31, 2017 , respectively, and was classified as performing as of each respective date. Nonperforming Loans In addition to TDR loans that may be classified as nonperforming, we also may have nonperforming loans that have not been modified as a TDR loan. We did not have any loans classified as nonperforming as of August 31, 2017 or May 31, 2017 . We had no foregone interest income for loans on nonaccrual status during the three months ended August 31, 2017 . We had foregone interest income for loans on nonaccrual status totaling $31 thousand during the three months ended August 31, 2016 . Impaired Loans The following table provides information on loans classified as individually impaired loans as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Related Allowance With no specific allowance recorded: CFC $ 6,507 $ — $ 6,581 $ — With a specific allowance recorded: RTFC 6,466 1,360 6,592 1,640 Total impaired loans $ 12,973 $ 1,360 $ 13,173 $ 1,640 The following table represents the average recorded investment in individually impaired loans and the interest income recognized, by company, for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, 2017 2016 2017 2016 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC $ 6,574 $ 6,671 $ 144 $ 130 RTFC 6,548 9,346 82 88 Total impaired loans $ 13,122 $ 16,017 $ 226 $ 218 Internal Risk Ratings of Loans 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. Each risk rating is reassessed annually following the receipt of the borrower’s audited financial statements; however, interim risk rating downgrades or upgrades may occur as a result of significant developments or trends. Our risk ratings fall into the following four categories based on the criteria identified below. • Pass: Borrowers that are not experiencing difficulty and/or not showing a potential or well-defined credit weakness. • Special Mention: Borrowers that may be characterized by a potential credit weakness or deteriorating financial condition that is not sufficiently serious to warrant a classification of substandard or doubtful. • Substandard: Borrowers that display a well-defined credit weakness that may jeopardize the full collection of principal and interest. • Doubtful: Borrowers that have a well-defined weakness and the full collection of principal and interest is questionable or improbable. Loans to borrowers in the pass, special mention, and substandard categories are generally included in the collective loan portfolio for purposes of determining the allowance for loan losses. Loans to borrowers in the doubtful category are considered to be individually impaired and therefore reflected in the impaired loan portfolio. The special mention, substandard, and doubtful categories are intended to comply with the definition of criticized loans by the banking regulatory authorities. The following tables present total loans outstanding, by member class and risk rating category, based on available data as of August 31, 2017 and May 31, 2017 . August 31, 2017 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 18,961,354 $ 108,177 $ — $ — $ 19,069,531 Power supply 4,490,366 — — — 4,490,366 Statewide and associate 58,506 1,203 — — 59,709 CFC total 23,510,226 109,380 — — 23,619,606 NCSC 657,722 1,189 — — 658,911 RTFC 346,043 — 6,466 — 352,509 Total loans outstanding $ 24,513,991 $ 110,569 $ 6,466 $ — $ 24,631,026 May 31, 2017 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 18,715,810 $ 109,556 $ — $ — $ 18,825,366 Power supply 4,504,791 — — — 4,504,791 Statewide and associate 56,654 1,176 — — 57,830 CFC total 23,277,255 110,732 — — 23,387,987 NCSC 612,592 1,332 — — 613,924 RTFC 346,944 — 7,475 — 354,419 Total loans outstanding $ 24,236,791 $ 112,064 $ 7,475 $ — $ 24,356,330 Allowance for Loan Losses We maintain an allowance for loan losses at a level estimated by management to provide for probable losses inherent in the loan portfolio as of each balance sheet date. The tables below summarize changes, by company, in the allowance for loan losses as of and for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, 2017 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2017 $ 29,499 $ 2,910 $ 4,967 $ 37,376 Provision (benefit) for loan losses 22 (174 ) (146 ) (298 ) Balance as of August 31, 2017 $ 29,521 $ 2,736 $ 4,821 $ 37,078 Three Months Ended August 31, 2016 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2016 $ 24,559 $ 3,134 $ 5,565 $ 33,258 Provision for loan losses 450 147 1,331 1,928 Charge-offs — — (2,119 ) (2,119 ) Recoveries 53 — — 53 Balance as of August 31, 2016 $ 25,062 $ 3,281 $ 4,777 $ 33,120 Our allowance for loan losses consists of a collective allowance for loans collectively evaluated for impairment and a specific allowance for loans individually evaluated for impairment. The tables below present, by company, the components of our allowance for loan losses and the recorded investment of the related loans as of August 31, 2017 and May 31, 2017 . August 31, 2017 (Dollars in thousands) CFC NCSC RTFC Total Allowance by company: Collectively evaluated loans $ 29,521 $ 2,736 $ 3,461 $ 35,718 Individually evaluated loans — — 1,360 1,360 Total ending balance of the allowance $ 29,521 $ 2,736 $ 4,821 $ 37,078 Recorded investment in loans: Collectively evaluated loans $ 23,613,099 $ 658,911 $ 346,043 $ 24,618,053 Individually evaluated loans 6,507 — 6,466 12,973 Total recorded investment in loans $ 23,619,606 $ 658,911 $ 352,509 $ 24,631,026 Loans to members, net (1) $ 23,590,085 $ 656,175 $ 347,688 $ 24,593,948 May 31, 2017 (Dollars in thousands) CFC NCSC RTFC Total Allowance by company: Collectively evaluated loans $ 29,499 $ 2,910 $ 3,327 $ 35,736 Individually evaluated loans — — 1,640 1,640 Total ending balance of the allowance $ 29,499 $ 2,910 $ 4,967 $ 37,376 Recorded investment in loans: Collectively evaluated loans $ 23,381,406 $ 613,924 $ 347,827 $ 24,343,157 Individually evaluated loans 6,581 — 6,592 13,173 Total recorded investment in loans $ 23,387,987 $ 613,924 $ 354,419 $ 24,356,330 Loans to members, net (1) $ 23,358,488 $ 611,014 $ 349,452 $ 24,318,954 ____________________________ (1) Excludes unamortized deferred loan origination costs $11 million as of both August 31, 2017 and May 31, 2017 . |
Short-Term Borrowings - (Notes)
Short-Term Borrowings - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | NOTE 5—SHORT-TERM BORROWINGS Short-term borrowings consist of borrowings with an original contractual maturity of one year or less and do not include the current portion of long-term debt. Our short-term borrowings totaled $3,075 million and accounted for 13% of total debt outstanding as of August 31, 2017 , compared with $3,343 million , or 14% , of total debt outstanding as of May 31, 2017 . Committed Bank Revolving Line of Credit Agreements We had $3,165 million of commitments under committed bank revolving line of credit agreements as of both August 31, 2017 and May 31, 2017 . Under our current committed bank revolving line of credit agreements, we have the ability to request up to $300 million of letters of credit, which would result in a reduction in the remaining available amount under the facilities. The following table presents the total commitment, the net amount available for use and the outstanding letters of credit under our committed bank revolving line of credit agreements as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in millions) Total Commitment Letters of Credit Outstanding Net Available for Use Total Commitment Letters of Credit Outstanding Net Available for Use Maturity Annual Facility Fee (1) 3-year agreement $ 1,533 $ — $ 1,533 $ 1,533 $ — $ 1,533 November 19, 2019 7.5 bps 5-year agreement 1,632 1 1,631 1,632 1 1,631 November 19, 2021 10 bps Total $ 3,165 $ 1 $ 3,164 $ 3,165 $ 1 $ 3,164 ____________________________ (1) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. We were in compliance with all covenants and conditions under our committed bank revolving line of credit agreements and there were no borrowings outstanding under these agreements as of August 31, 2017 and May 31, 2017 . |
Long-Term Debt - (Notes)
Long-Term Debt - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Debt Instruments [Abstract] | |
Long-Term Debt | NOTE 6—LONG-TERM DEBT The following table displays long-term debt outstanding, by debt type, as of August 31, 2017 and May 31, 2017 . (Dollars in thousands) August 31, 2017 May 31, 2017 Unsecured long-term debt: Medium-term notes sold through dealers $ 2,785,389 $ 2,386,956 Medium-term notes sold to members 418,617 422,779 Subtotal medium-term notes 3,204,006 2,809,735 Unamortized discount (379 ) (382 ) Debt issuance costs (24,037 ) (21,903 ) Total unsecured medium-term notes 3,179,590 2,787,450 Unsecured notes payable 22,799 22,799 Unamortized discount (352 ) (379 ) Debt issuance costs (86 ) (94 ) Total unsecured notes payable 22,361 22,326 Total unsecured long-term debt 3,201,951 2,809,776 Secured long-term debt: Collateral trust bonds 7,922,711 7,922,711 Unamortized discount (255,916 ) (258,329 ) Debt issuance costs (28,667 ) (30,334 ) Total collateral trust bonds 7,638,128 7,634,048 Guaranteed Underwriter Program notes payable 5,073,613 4,985,748 Debt issuance costs (257 ) (264 ) Total Guaranteed Underwriter Program notes payable 5,073,356 4,985,484 Farmer Mac notes payable 2,502,467 2,513,389 Other secured notes payable 13,214 13,214 Debt issuance costs (297 ) (317 ) Total other secured notes payable 12,917 12,897 Total secured notes payable 7,588,740 7,511,770 Total secured long-term debt 15,226,868 15,145,818 Total long-term debt $ 18,428,819 $ 17,955,594 Secured Notes Payable We had outstanding secured notes payable totaling $5,073 million and $4,985 million as of August 31, 2017 and May 31, 2017 , respectively, under bond purchase agreements with Federal Financing Bank and a bond guarantee agreement with RUS issued under the Guaranteed Underwriter Program, which provides guarantees to Federal Financing Bank. We pay RUS a fee of 30 basis points per year on the total amount outstanding. We had up to $625 million available under the Guaranteed Underwriter Program as of August 31, 2017 . We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under the Guaranteed Underwriter Program. See “Note 4—Loans and Commitments” for additional information on the collateral pledged to secure notes payable under this program. We have two revolving note purchase agreements with Farmer Mac, which together allow us to borrow up to $4,800 million from Farmer Mac. Under the terms of the first revolving note purchase agreement with Farmer Mac dated March 24, 2011, as amended, we can borrow, subject to market conditions, up to $4,500 million at any time through January 11, 2020, and such date shall automatically extend on each anniversary date of the closing for an additional year, unless prior to any such anniversary date, Farmer Mac provides us with a notice that the draw period will not be extended beyond the remaining term. This revolving note purchase agreement allows us to borrow, repay and re-borrow funds at any time through maturity, as market conditions permit, provided that the outstanding principal amount at any time does not exceed the total available under the agreement. Each borrowing under the revolving note purchase agreement is evidenced by a pricing agreement setting forth the interest rate, maturity date and other related terms as we may negotiate with Farmer Mac at the time of each such borrowing. We may select a fixed rate or variable rate at the time of each advance with a maturity as determined in the applicable pricing agreement. Under this note purchase agreement with Farmer Mac, we had outstanding secured notes payable totaling $2,502 million and $2,513 million as of August 31, 2017 and May 31, 2017 , respectively. Under the terms of the second revolving note purchase agreement with Farmer Mac dated July 31, 2015, we can borrow up to $300 million at any time through July 31, 2018 at a fixed spread over LIBOR. This agreement also allows us to borrow, repay and re-borrow funds at any time through maturity, provided that the outstanding principal amount at any time does not exceed the total available under the agreement. We had no notes payable outstanding under this revolving note purchase agreement with Farmer Mac as of August 31, 2017 and May 31, 2017 . We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under each of our Farmer Mac revolving note purchase agreements. See “Note 4—Loans and Commitments” for additional information on the collateral pledged to secure notes payable under these programs. We were in compliance with all covenants and conditions under our senior debt indentures as of August 31, 2017 and May 31, 2017 . |
Subordinated Deferrable Debt -
Subordinated Deferrable Debt - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Subordinated Debt [Abstract] | |
Subordinated Deferrable Debt | NOTE 7—SUBORDINATED DEFERRABLE DEBT The following table presents subordinated deferrable debt outstanding as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in thousands) Amount Amount 4.75% due 2043 with a call date of April 30, 2023 $ 400,000 $ 400,000 5.25% due 2046 with a call date of April 20, 2026 350,000 350,000 Debt issuance costs (7,693 ) (7,726 ) Total subordinated deferrable debt $ 742,307 $ 742,274 |
Derivative Financial Instrument
Derivative Financial Instruments - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 8—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Use of Derivatives We are an end user of derivative financial instruments and do not engage in derivative trading. We use derivatives, primarily interest rate swaps and Treasury rate locks, to manage interest rate risk. Derivatives may be privately negotiated contracts, which are often referred to as over-the-counter (“OTC”) derivatives, or they may be listed and traded on an exchange. We generally engage in OTC derivative transactions. Accounting for Derivatives In accordance with the accounting standards for derivatives and hedging activities, we record derivative instruments at fair value as either a derivative asset or derivative liability on our condensed consolidated balance sheets. We report derivative asset and liability amounts on a gross basis based on individual contracts, which does not take into consideration the effects of master netting agreements or collateral netting. Derivatives in a gain position are reported as derivative assets on our condensed consolidated balance sheets, while derivatives in a loss position are reported as derivative liabilities. Accrued interest related to derivatives is reported on our condensed consolidated balance sheets as a component of either accrued interest and other receivables or accrued interest payable. If we do not elect hedge accounting treatment, changes in the fair value of derivative instruments, which consist of net accrued periodic derivative cash settlements and derivative forward value amounts, are recognized in our consolidated statements of operations under derivative gains (losses). If we elect hedge accounting treatment for derivatives, we formally document, designate and assess the effectiveness of the hedge relationship. Changes in the fair value of derivatives designated as qualifying fair value hedges are recorded in earnings together with offsetting changes in the fair value of the hedged item and any related ineffectiveness. Changes in the fair value of derivatives designated as qualifying cash flow hedges are recorded as a component of OCI, to the extent that the hedge relationships are effective, and reclassified AOCI to earnings using the effective interest method over the term of the forecasted transaction. Any ineffectiveness in the hedging relationship is recognized as a component of derivative gains (losses) in our consolidated statement of operations. We generally do not designate interest rate swaps, which currently represent all of our outstanding derivatives, for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our consolidated statements of operations under derivative gains (losses). Net periodic cash settlements related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. Outstanding Notional Amount of Derivatives The notional amount provides an indication of the volume of our derivatives activity, but this amount is not recorded on our condensed consolidated balance sheets. The notional amount is used only as the basis on which interest payments are determined and is not the amount exchanged. The following table shows the outstanding notional amounts and the weighted-average rate paid and received for our interest rate swaps, by type, as of August 31, 2017 and May 31, 2017 . The substantial majority of our interest rate swaps use an index based on the London Interbank Offered Rate (“LIBOR”) for either the pay or receive leg of the swap agreement. August 31, 2017 May 31, 2017 (Dollars in thousands) Notional Amount Weighted- Average Rate Paid Weighted- Average Rate Received Notional Weighted- Weighted- Pay-fixed swaps $ 7,090,088 2.84 % 1.31 % $ 6,807,013 2.85 % 1.16 % Receive-fixed swaps 3,849,000 1.89 2.63 3,699,000 1.72 2.64 Total interest rate swaps 10,939,088 2.50 1.77 10,506,013 2.46 1.68 Forward pay-fixed swaps 136,929 285,383 Total $ 11,076,017 $ 10,791,396 Impact of Derivatives on Condensed Consolidated Balance Sheets The following table displays the fair value of the derivative assets and derivative liabilities recorded on our condensed consolidated balance sheets and the related outstanding notional amount of our interest rate swaps as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in thousands) Fair Value Notional Balance Fair Value Notional Balance Derivative assets $ 40,466 $ 3,577,988 $ 49,481 $ 3,754,120 Derivative liabilities (402,423 ) 7,498,029 (385,337 ) 7,037,276 Total $ (361,957 ) $ 11,076,017 $ (335,856 ) $ 10,791,396 All of our master swap agreements include legally enforceable netting provisions that allow for offsetting of all contracts with a given counterparty in the event of default by one of the two parties. However, as indicated above, we report derivative asset and liability amounts on a gross basis by individual contracts. The following table presents the gross fair value of derivative assets and liabilities reported on our condensed consolidated balance sheets as of August 31, 2017 and May 31, 2017 , and provides information on the impact of netting provisions and collateral pledged. August 31, 2017 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 40,466 $ — $ 40,466 $ 40,466 $ — $ — Derivative liabilities: Interest rate swaps 402,423 — 402,423 40,466 — 361,957 May 31, 2017 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 49,481 $ — $ 49,481 $ 49,481 $ — $ — Derivative liabilities: Interest rate swaps 385,337 — 385,337 49,481 — 335,856 Impact of Derivatives on Condensed Consolidated Statements of Operations Derivative gains (losses) reported in our condensed consolidated statements of operations consist of derivative cash settlements and derivative forward value gains (losses). Derivative cash settlements represent net contractual interest expense accruals on interest rate swaps during the period. The derivative forward value gains (losses) represent the change in fair value of our interest rate swaps during the reporting period due to changes in the estimate of future interest rates over the remaining life of our derivative contracts. The following table presents the components of the derivative gains (losses) reported in our condensed consolidated statements of operations for our interest rate swaps for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, (Dollars in thousands) 2017 2016 Derivative cash settlements $ (20,222 ) $ (23,390 ) Derivative forward value losses (25,976 ) (164,903 ) Derivative losses $ (46,198 ) $ (188,293 ) Credit-Risk-Related Contingent Features Our derivative contracts typically contain mutual early termination provisions, generally in the form of a credit rating trigger. Under the mutual credit rating trigger provisions, either counterparty may, but is not obligated to, terminate and settle the agreement if the credit rating of the other counterparty falls to a level specified in the agreement. If a derivative contract is terminated, the amount to be received or paid by us would be equal to the mark-to-market value, as defined in the agreement, as of the termination date. Our senior unsecured credit ratings from Moody’s and S&P were A2 and A, respectively, as of August 31, 2017 . Both Moody’s and S&P had our ratings on stable outlook as of August 31, 2017 . The following table displays the notional amounts of our derivative contracts with rating triggers as of August 31, 2017 and the payments that would be required if the contracts were terminated as of that date because of a downgrade of our unsecured credit ratings or the counterparty’s unsecured credit ratings below A3/A-, below Baa1/BBB+ to or below Baa2/BBB, below Baa3/BBB- or to or below Ba2/BB+ by Moody’s or S&P, respectively. In calculating the payment amounts that would be required upon termination of the derivative contracts, we assumed that the amounts for each counterparty would be netted in accordance with the provisions of the master netting agreements for each counterparty. The net payment amounts are based on the fair value of the underlying derivative instrument, excluding the credit risk valuation adjustment, plus any unpaid accrued interest amounts. (Dollars in thousands) Notional Amount Payable Due From CFC Receivable Due to CFC Net (Payable)/Receivable Impact of rating downgrade trigger: Falls below A3/A- (1) $ 59,165 $ (13,792 ) $ — $ (13,792 ) Falls below Baa1/BBB+ 7,315,942 (225,976 ) — (225,976 ) Falls to or below Baa2/BBB (2) 457,136 (1,432 ) — (1,432 ) Falls below Baa3/BBB- 266,833 (22,718 ) — (22,718 ) Total $ 8,099,076 $ (263,918 ) $ — $ (263,918 ) ____________________________ (1) Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. (2) Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively. Our largest counterparty exposure, based on the outstanding notional amount, represented approximately 22% and 23% of the total outstanding notional amount of derivatives as of August 31, 2017 and May 31, 2017 , respectively. The aggregate fair value amount, including the credit risk valuation adjustment, of all interest rate swaps with rating triggers that were in a net liability position was $263 million as of August 31, 2017 . |
Equity - (Notes)
Equity - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 9—EQUITY Total equity decreased by $37 million to $1,062 million as of August 31, 2017 . The decrease was primarily attributable to the CFC Board of Directors authorization in the current quarter to retire patronage capital of $45 million , which was partially offset by our reported net income of $9 million for the three months ended August 31, 2017 . The following table presents the components of equity as of August 31, 2017 and May 31, 2017 . (Dollars in thousands) August 31, 2017 May 31, 2017 Membership fees $ 971 $ 971 Educational fund 1,573 1,929 Total membership fees and educational fund 2,544 2,900 Patronage capital allocated 716,481 761,701 Members’ capital reserve 630,305 630,305 Unallocated net loss: Prior year-end cumulative derivative forward value losses (1) (332,525 ) (507,904 ) Current year derivative forward value gains (losses) (1) (26,111 ) 175,379 Current year-end cumulative derivative forward value losses (1) (358,636 ) (332,525 ) Other unallocated net income (loss) 29,641 (5,603 ) Unallocated net loss (328,995 ) (338,128 ) CFC retained equity 1,020,335 1,056,778 Accumulated other comprehensive income 11,959 13,175 Total CFC equity 1,032,294 1,069,953 Noncontrolling interests 29,286 28,852 Total equity $ 1,061,580 $ 1,098,805 ____________________________ (1) Represents derivative forward value gains (losses) for CFC only, which excludes derivative forward value gains (losses) attributable to NCSC, because total CFC equity does not include the noncontrolling interests of the consolidated variable interest entities NCSC and RTFC. See “Note 12—Business Segments” for the statements of operations for CFC. In July 2017, the CFC Board of Directors authorized the allocation of the fiscal year 2017 net earnings as follows: $1 million to the Cooperative Educational Fund, $43 million to the members’ capital reserve and $90 million to members in the form of patronage capital. In July 2017, the CFC Board of Directors authorized the retirement of allocated net earnings totaling $45 million , representing 50% of the fiscal year 2017 allocation. This amount was returned to members in cash in the second quarter of fiscal year 2018. 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. Accumulated Other Comprehensive Income The following tables summarize, by component, the activity in AOCI as of and for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, 2017 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Derivatives Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ 12,016 $ 3,702 $ — $ (2,543 ) $ 13,175 Unrealized gains (1,151 ) — — — (1,151 ) Losses reclassified into earnings — — — 127 127 Gains reclassified into earnings — (192 ) — — (192 ) Other comprehensive income (1,151 ) (192 ) — 127 (1,216 ) Ending balance $ 10,865 $ 3,510 $ — $ (2,416 ) $ 11,959 Three Months Ended August 31, 2016 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Derivatives Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ 7,402 $ 4,487 $ (9,823 ) $ (1,008 ) $ 1,058 Unrealized gains (11 ) — — — (11 ) Losses reclassified into earnings — — 9,823 44 9,867 Gains reclassified into earnings — (197 ) — — (197 ) Other comprehensive income (11 ) (197 ) 9,823 44 9,659 Ending balance $ 7,391 $ 4,290 $ — $ (964 ) $ 10,717 We expect to reclassify approximately $0.5 million of amounts in AOCI related to unrealized derivative gains into earnings over the next 12 months. |
Guarantees - (Notes)
Guarantees - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Guarantees [Abstract] | |
Guarantees | NOTE 10—GUARANTEES The following table summarizes total guarantees, by type of guarantee and by member class, as of August 31, 2017 and May 31, 2017 . (Dollars in thousands) August 31, 2017 May 31, 2017 Total by type: Long-term tax-exempt bonds (1) $ 394,090 $ 468,145 Letters of credit 316,983 307,321 Other guarantees 113,191 114,151 Total $ 824,264 $ 889,617 Total by member class: CFC: Distribution $ 130,684 $ 126,188 Power supply 675,124 743,678 Statewide and associate 5,001 5,054 CFC total 810,809 874,920 NCSC 11,881 13,123 RTFC 1,574 1,574 Total $ 824,264 $ 889,617 ____________________________ (1) Amounts in the table represent the outstanding principal amount of the long-term fixed-rate and variable-rate guaranteed bonds. Of the long-term tax-exempt bonds totaling $394 million and $468 million as of August 31, 2017 and May 31, 2017 , respectively, $326 million and $400 million , 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 allows us to call the bond in the event of a default. This would limit our exposure to future interest payments on these bonds. Generally our maximum potential exposure is secured by mortgage liens on the systems’ assets and future revenue. If a system’s 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 remaining long-term tax-exempt bonds of $68 million as of August 31, 2017 are fixed-rate. The maximum potential exposure for these bonds, including the outstanding principal of $68 million and related interest through maturity, totaled $98 million as of August 31, 2017 . The maturities for long-term tax-exempt bonds and the related guarantees extend through calendar year 2042. The amounts shown in the table above for letters of credit represent our maximum potential exposure, of which $123 million was secured as of August 31, 2017 . Letters of credit include $76 million to provide the standby liquidity for adjustable and floating-rate tax-exempt bonds issued for the benefit of our members as of both August 31, 2017 and May 31, 2017 . 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. The maturities for letters of credit extend through calendar year 2027. In addition to the letters of credit listed in the table above, under master letter of credit facilities in place as of August 31, 2017 , we may be required to issue up to an additional $65 million in letters of credit to third parties for the benefit of our members. All of our master letter of credit facilities were subject to material adverse change clauses at the time of issuance as of August 31, 2017 . Prior to issuing a letter of credit, we would confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with the letter of credit terms and conditions. The maximum potential exposure for other guarantees was $114 million , all of which were unsecured as of August 31, 2017 . The maturities for these other guarantees listed in the table above extend through calendar year 2025. Guarantees under which our right of recovery from our members was not secured totaled $307 million and $297 million and represented 37% and 33% of total guarantees as of August 31, 2017 and May 31, 2017 , respectively. In addition to the guarantees described above, we were also the liquidity provider for $402 million of variable-rate tax-exempt bonds as of August 31, 2017 , issued for our member cooperatives. While the bonds are in variable-rate mode, in return for a fee, we have unconditionally agreed to purchase bonds tendered or put for redemption if the remarketing agents are unable to sell such bonds to other investors. During the three months ended August 31, 2017 , we were not required to perform as liquidity provider pursuant to these obligations. Guarantee Liability As of August 31, 2017 and May 31, 2017 , we recorded a guarantee liability of $14 million and $15 million respectively, which represents the contingent and noncontingent exposures related to guarantees and liquidity obligations. The contingent guarantee liability was $1 million as of both August 31, 2017 and May 31, 2017 , based on management’s estimate of exposure to losses within the guarantee portfolio. The remaining balance of the total guarantee liability of $13 million and $14 million as of August 31, 2017 and May 31, 2017 , respectively, relates to our noncontingent obligation to stand ready to perform over the term of our guarantees and liquidity obligations that we have entered into or modified since January 1, 2003. |
Fair Value Measurement - (Notes
Fair Value Measurement - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 11—FAIR VALUE MEASUREMENT We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain assets and liabilities on a recurring or nonrecurring basis. The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value. The levels of the fair value hierarchy, in priority order, include Level 1, Level 2 and Level 3. For additional information regarding the fair value hierarchy and a description of the methodologies we use to measure fair value, see “Note 14—Fair Value Measurement” to the Consolidated Financial Statements in our 2017 Form 10-K. The following tables present the carrying value and fair value for all of our financial instruments, including those carried at amortized cost, as of August 31, 2017 and May 31, 2017 . The tables also display the classification within the fair value hierarchy of the valuation technique used in estimating fair value. August 31, 2017 Fair Value Measurements Using (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 269,971 $ 269,971 $ 269,971 $ — $ — Restricted cash 22,690 22,690 22,690 — — Time deposits 126,000 126,000 — 126,000 — Investment securities, available for sale 91,404 91,404 91,404 — — Deferred compensation investments 4,912 4,912 4,912 — — Loans to members, net 24,604,999 24,518,326 — — 24,518,326 Accrued interest receivable 111,915 111,915 — 111,915 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 40,466 40,466 — 40,466 — Liabilities: Short-term borrowings $ 3,074,660 $ 3,074,549 $ 1,095,624 $ 1,978,925 $ — Long-term debt 18,428,819 19,263,452 — 11,632,285 7,631,167 Accrued interest payable 195,472 195,472 — 195,472 — Guarantee liability 14,121 14,642 — — 14,642 Derivative liabilities 402,423 402,423 — 402,423 — Subordinated deferrable debt 742,307 801,900 — 801,900 — Members’ subordinated certificates 1,418,207 1,418,230 — — 1,418,230 May 31, 2017 Fair Value Measurements Using (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 166,615 $ 166,615 $ 166,615 $ — $ — Restricted cash 21,806 21,806 21,806 — — Time deposits 226,000 226,000 — 226,000 — Investment securities, available for sale 92,554 92,554 92,554 — — Deferred compensation investments 4,693 4,693 4,693 — — Loans to members, net 24,329,668 24,182,724 — — 24,182,724 Accrued interest receivable 111,493 111,493 — 111,493 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 49,481 49,481 — 49,481 — Liabilities: Short-term borrowings $ 3,342,900 $ 3,342,990 $ 1,527,990 $ 1,815,000 $ — Long-term debt 17,955,594 18,744,331 — 11,215,290 7,529,041 Accrued interest payable 137,476 137,476 — 137,476 — Guarantee liability 15,241 16,204 — — 16,204 Derivative liabilities 385,337 385,337 — 385,337 — Subordinated deferrable debt 742,274 788,079 — 788,079 — Members’ subordinated certificates 1,419,025 1,419,048 — — 1,419,048 Transfers Between Levels We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy and transfer between Level 1, Level 2, and Level 3 accordingly. Observable market data includes but is not limited to quoted prices and market transactions. Changes in economic conditions or market liquidity generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changes in the valuation technique used, are generally the cause of transfers between levels. We did not have any transfers between levels for financial instruments measured at fair value on a recurring basis for the three months ended August 31, 2017 and 2016 . Recurring Fair Value Measurements The following table presents the carrying value and fair value of financial instruments reported in our condensed consolidated financial statements at fair value on a recurring basis as of August 31, 2017 and May 31, 2017 , and the classification of the valuation technique within the fair value hierarchy. August 31, 2017 May 31, 2017 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Investment securities available for sale $ 91,404 $ — $ 91,404 $ 92,554 $ — $ 92,554 Deferred compensation investments 4,912 — 4,912 4,693 — 4,693 Derivative assets — 40,466 40,466 — 49,481 49,481 Derivative liabilities — 402,423 402,423 — 385,337 385,337 Nonrecurring Fair Value The following table presents the carrying value and fair value of assets reported in our condensed consolidated financial statements at fair value on a nonrecurring basis as of August 31, 2017 and May 31, 2017 , and unrealized losses for the three months ended August 31, 2017 and 2016 . Level 3 Fair Value Unrealized Losses Three Months Ended August 31, (Dollars in thousands) August 31, 2017 May 31, 2017 2017 2016 Impaired loans, net of specific reserves $ — $ — $ — $ (116 ) Significant Unobservable Level 3 Inputs Impaired Loans We utilize the fair value of estimated cash flows or the collateral underlying the loan to determine the fair value and specific allowance for impaired loans. The valuation technique used to determine fair value of the impaired loans provided by both our internal staff and third-party specialists includes market multiples (i.e., comparable companies). The significant unobservable inputs used in the determination of fair value for individually impaired loans is a multiple of earnings before interest, taxes, depreciation and amortization based on various factors (i.e., financial condition of the borrower). In estimating the fair value of the collateral, we may use third-party valuation specialists, internal estimates or a combination of both. The significant unobservable inputs for estimating the fair value of impaired collateral-dependent loans are reviewed by our Credit Risk Management group to assess the reasonableness of the assumptions used and the accuracy of the work performed. In cases where we rely on third-party inputs, we use the final unadjusted third-party valuation analysis as support for any adjustments to our consolidated financial statements and disclosures. Because of the limited amount of impaired loans as of August 31, 2017 and May 31, 2017 , we do not believe that potential changes in the significant unobservable inputs used in the determination of the fair value for impaired loans will have a material impact on the fair value measurement of these assets or our results of operations. |
Segment Information - (Notes)
Segment Information - (Notes) | 3 Months Ended |
Aug. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 12—BUSINESS SEGMENTS The following tables display segment results for the three months ended August 31, 2017 and 2016 , and assets attributable to each segment as of August 31, 2017 and August 31, 2016 . Three Months Ended August 31, 2017 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 263,411 $ 10,949 $ (8,445 ) $ 265,915 Interest expense (192,505 ) (8,671 ) 8,445 (192,731 ) Net interest income 70,906 2,278 — 73,184 Benefit for loan losses 298 — — 298 Net interest income after benefit for loan losses 71,204 2,278 — 73,482 Non-interest income: Fee and other income 3,888 400 (343 ) 3,945 Derivative losses: Derivative cash settlements (19,564 ) (658 ) — (20,222 ) Derivative forward value gains (losses) (26,111 ) 135 — (25,976 ) Derivative losses (45,675 ) (523 ) — (46,198 ) Results of operations of foreclosed assets (24 ) — — (24 ) Total non-interest income (41,811 ) (123 ) (343 ) (42,277 ) Non-interest expense: General and administrative expenses (19,738 ) (1,898 ) — (21,636 ) Other non-interest expense (522 ) (343 ) 343 (522 ) Total non-interest expense (20,260 ) (2,241 ) 343 (22,158 ) Income (loss) before income taxes 9,133 (86 ) — 9,047 Income tax expense — (32 ) — (32 ) Net income (loss) $ 9,133 $ (118 ) $ — $ 9,015 August 31, 2017 CFC Other Elimination Consolidated Total Assets: Loans to members $ 24,606,635 $ 1,011,420 $ (975,978 ) $ 24,642,077 Less: Allowance for loan losses (37,078 ) — — (37,078 ) Loans to members, net 24,569,557 1,011,420 (975,978 ) 24,604,999 Other assets 864,334 107,146 (95,953 ) 875,527 Total assets $ 25,433,891 $ 1,118,566 $ (1,071,931 ) $ 25,480,526 Three Months Ended August 31, 2016 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 254,017 $ 11,222 $ (8,404 ) $ 256,835 Interest expense (180,832 ) (8,676 ) 8,428 (181,080 ) Net interest income 73,185 2,546 24 75,755 Provision for loan losses (1,928 ) — — (1,928 ) Net interest income after provision for loan losses 71,257 2,546 24 73,827 Non-interest income: Fee and other income 4,328 897 (695 ) 4,530 Derivative losses: Derivative cash settlements (22,610 ) (780 ) — (23,390 ) Derivative forward value losses (164,212 ) (691 ) — (164,903 ) Derivative losses (186,822 ) (1,471 ) — (188,293 ) Results of operations of foreclosed assets (1,112 ) — — (1,112 ) Total non-interest income (183,606 ) (574 ) (695 ) (184,875 ) Non-interest expense: General and administrative expenses (18,779 ) (2,080 ) — (20,859 ) Other non-interest expense (443 ) (671 ) 671 (443 ) Total non-interest expense (19,222 ) (2,751 ) 671 (21,302 ) Loss before income taxes (131,571 ) (779 ) — (132,350 ) Income tax benefit — 89 — 89 Net loss $ (131,571 ) $ (690 ) $ — $ (132,261 ) August 31, 2016 CFC Other Elimination Consolidated Total Assets: Loans to members $ 23,529,310 $ 1,077,238 $ (1,040,323 ) $ 23,566,225 Less: Allowance for loan losses (33,120 ) — — (33,120 ) Loans to members, net 23,496,190 1,077,238 (1,040,323 ) 23,533,105 Other assets 1,130,356 114,968 (100,814 ) 1,144,510 Total assets $ 24,626,546 $ 1,192,206 $ (1,141,137 ) $ 24,677,615 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies - (Policies) | 3 Months Ended |
Aug. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company National Rural Utilities Cooperative Finance Corporation (“CFC”) is a member-owned cooperative association incorporated under the laws of the District of Columbia in April 1969. CFC’s principal purpose is to provide its members with financing to supplement the loan programs of the Rural Utilities Service (“RUS”) of the United States Department of Agriculture (“USDA”). CFC makes loans to its rural electric members so they can acquire, construct and operate electric distribution, generation, transmission and related facilities. CFC also provides its members with credit enhancements in the form of letters of credit and guarantees of debt obligations. As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities. CFC is exempt from federal income taxes. |
Basis of Presentation | Basis of Presentation and Use of Estimates The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and should be read in conjunction with the audited consolidated financial statements, and related notes thereto, included in CFC’s Annual Report on Form 10-K for the fiscal year ended May 31, 2017 (“ 2017 Form 10-K”). We believe that all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures. While management makes its best judgment, actual amounts or results could differ from these estimates. Our most significant estimates and assumptions involve determining the allowance for loan losses and the fair value of financial assets and liabilities. |
Use of Estimates | The results of operations in the interim financial statements is not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year ending May 31, 2018. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of CFC, variable interest entities (“VIEs“) where CFC is the primary beneficiary and subsidiary entities created and controlled by CFC to hold foreclosed assets. CFC did not have any entities that held foreclosed assets as of August 31, 2017 or May 31, 2017 . All intercompany balances and transactions have been eliminated. National Cooperative Services Corporation (“NCSC”) and Rural Telephone Finance Cooperative (“RTFC”) are VIEs which are required to be consolidated by CFC. NCSC is a taxable member-owned cooperative that may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural”, and for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. RTFC is a taxable Subchapter T cooperative association that provides financing for its rural telecommunications members and their affiliates. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash, which totaled $23 million and $22 million as of August 31, 2017 and May 31, 2017 , respectively, consisted primarily of funds held in escrow. On July 1, 2016, CFC completed the sale of Caribbean Asset Holdings, LLC (“CAH”), an entity that held foreclosed assets, to ATN VI Holdings, LLC. In connection with the sale, $16 million of the sale proceeds was deposited into escrow to fund potential indemnification claims for a period of 15 months following the closing. On September 27, 2017, we received a claim notice from the purchaser asserting potential indemnification claims and seeking funding from the escrow. We are evaluating whether the claims are subject to indemnification and what amounts, if any, would be owing to the purchaser under the purchase agreement. |
Recently Issued but Not Yet Adopted Accounting Standards | Recently Issued But Not Yet Adopted Accounting Standards Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Acti vities, which is intended to simplify and amend the application of hedge accounting to more clearly portray the economics of an entity’s risk management strategies in its financial statements. The new guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting and reduce complexity in fair value hedges of interest rate risk. It also changes how companies assess effectiveness and amends the presentation and disclosure requirements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally the entire change in the fair value of a hedging instrument will be required to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. The guidance is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted in any interim period or fiscal year before the effective date. The guidance is effective for us beginning June 1, 2019. We do not expect that the adoption of the new standard will have an impact on our consolidated financial statements, as we currently do not apply hedge accounting to our derivatives. Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the accounting for credit losses on certain financial assets to an expected loss model from the incurred loss model currently in use. The new guidance will likely result in earlier recognition of credit losses based on measuring the expected credit losses over the estimated life of financial assets held at each reporting date. The expected loss model will be the basis for determining the allowance for credit losses for loans and leases, unfunded lending commitments, held-to-maturity debt securities and other debt instruments measured at amortized cost. In addition, the new guidance modifies the other-than-temporary impairment model for available-for-sale debt securities to require the recognition of credit losses through a valuation allowance, which allows for the reversal of credit impairments in future periods. The ASU will also require enhanced disclosures to help users of financial statements better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. This update is effective for us beginning June 1, 2020. Upon adoption, we will be required to record a cumulative-effect adjustment to retained earnings. The impact on our consolidated financial statements from the adoption of this new guidance will depend on the composition and risk profile of our loan portfolio as of the date of adoption. We do not expect to early adopt this guidance. Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of the recognition, measurement, presentation and disclosure of certain financial instruments, including equity investments and liabilities measured at fair value under the fair value option. The guidance also updates fair value presentation and disclosure requirements for financial instruments measured at amortized cost. The ASU requires investments in equity securities that do not result in consolidation and are not accounted for under the equity method to be measured at fair value with changes in the fair value recognized through net income, unless one of two available exceptions apply. For financial liabilities where the fair value option has been elected, the portion of the total change in fair value caused by changes in the company’s own credit risk is required to be presented separately in OCI. The classification and measurement guidance is effective for public entities in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This update will be effective for us beginning June 1, 2018. Upon adoption, we will be required to reclassify the gain (loss) related to our equity investment securities classified as available-for-sale from accumulated other comprehensive income (“AOCI”) to retained earnings as a cumulative-effect adjustment and begin recording future changes in fair value through earnings. We had a gain of $11 million recorded in AOCI for our available-for-sale equity investments as of August 31, 2017 . The impact on our consolidated financial statements at adoption will depend on the net unrealized gains (losses) recorded in AOCI for these equity investments as of the date of adoption. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other guidance. The new guidance is effective for us beginning June 1, 2018. Because the scope of the guidance explicitly excludes net interest income as well as many other revenues for financial assets and liabilities including loans, securities, and derivatives, which account for the substantial majority of our revenues, we do not expect that the adoption of the guidance will have a material impact, if any, on our consolidated financial statements. |
Derivatives | Use of Derivatives We are an end user of derivative financial instruments and do not engage in derivative trading. We use derivatives, primarily interest rate swaps and Treasury rate locks, to manage interest rate risk. Derivatives may be privately negotiated contracts, which are often referred to as over-the-counter (“OTC”) derivatives, or they may be listed and traded on an exchange. We generally engage in OTC derivative transactions. Accounting for Derivatives In accordance with the accounting standards for derivatives and hedging activities, we record derivative instruments at fair value as either a derivative asset or derivative liability on our condensed consolidated balance sheets. We report derivative asset and liability amounts on a gross basis based on individual contracts, which does not take into consideration the effects of master netting agreements or collateral netting. Derivatives in a gain position are reported as derivative assets on our condensed consolidated balance sheets, while derivatives in a loss position are reported as derivative liabilities. Accrued interest related to derivatives is reported on our condensed consolidated balance sheets as a component of either accrued interest and other receivables or accrued interest payable. If we do not elect hedge accounting treatment, changes in the fair value of derivative instruments, which consist of net accrued periodic derivative cash settlements and derivative forward value amounts, are recognized in our consolidated statements of operations under derivative gains (losses). If we elect hedge accounting treatment for derivatives, we formally document, designate and assess the effectiveness of the hedge relationship. Changes in the fair value of derivatives designated as qualifying fair value hedges are recorded in earnings together with offsetting changes in the fair value of the hedged item and any related ineffectiveness. Changes in the fair value of derivatives designated as qualifying cash flow hedges are recorded as a component of OCI, to the extent that the hedge relationships are effective, and reclassified AOCI to earnings using the effective interest method over the term of the forecasted transaction. Any ineffectiveness in the hedging relationship is recognized as a component of derivative gains (losses) in our consolidated statement of operations. We generally do not designate interest rate swaps, which currently represent all of our outstanding derivatives, for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our consolidated statements of operations under derivative gains (losses). Net periodic cash settlements related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. |
Fair Value Measurement | We use fair value measurements for the initial recording of certain assets and liabilities and periodic remeasurement of certain assets and liabilities on a recurring or nonrecurring basis. The accounting guidance for fair value measurements and disclosures establishes a three-level fair value hierarchy that prioritizes the inputs into the valuation techniques used to measure fair value. The levels of the fair value hierarchy, in priority order, include Level 1, Level 2 and Level 3. For additional information regarding the fair value hierarchy and a description of the methodologies we use to measure fair value, see “Note 14—Fair Value Measurement” to the Consolidated Financial Statements in our 2017 Form 10-K. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of components of interest income | The following table presents interest income, by interest-earning asset category, for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, (Dollars in thousands) 2017 2016 Interest income by interest-earning asset type: Long-term fixed-rate loans (1) $ 249,364 $ 244,128 Long-term variable-rate loans 5,863 4,527 Line of credit loans 8,707 5,966 TDR loans (2) 226 218 Other income, net (3) (232 ) (284 ) Total loans 263,928 254,555 Investments 1,987 2,280 Total interest income $ 265,915 $ 256,835 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. (2) Troubled debt restructuring (“TDR”) loans. (3) Consists of late payment fees and net amortization of deferred loan fees and loan origination costs. |
Schedule of components of interest expense | The following table presents interest expense, by debt product type, for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, (Dollars in thousands) 2017 2016 Interest expense by debt product type: (1)(2) Short-term borrowings $ 10,539 $ 4,882 Medium-term notes 25,116 23,585 Collateral trust bonds 85,277 85,049 Long-term notes payable 47,482 43,129 Subordinated deferrable debt 9,416 9,426 Subordinated certificates 14,901 15,009 Total interest expense $ 192,731 $ 181,080 ____________________________ (1) Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. (2) Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. |
Variable Interest Entities - (T
Variable Interest Entities - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table provides information on incremental consolidated assets and liabilities of VIE’s included in CFC’s condensed consolidated financial statements, after applying intercompany eliminations, as of August 31, 2017 and May 31, 2017 . (Dollars in thousands) August 31, 2017 May 31, 2017 Total loans outstanding $ 1,011,420 $ 968,343 Other assets 11,194 10,157 Total assets $ 1,022,614 $ 978,500 Long-term debt $ 10,000 $ 10,000 Other liabilities 38,308 36,899 Total liabilities $ 48,308 $ 46,899 |
Schedule of Variable Interest Entities, Credit Commitments | The following table provides information on CFC’s credit commitments to NCSC and RTFC, and its potential exposure to loss as of August 31, 2017 and May 31, 2017 . (Dollars in thousands) August 31, 2017 May 31, 2017 CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 975,978 931,686 CFC third-party guarantees 13,455 14,697 Other credit enhancements (2) 20,828 20,963 Total credit enhancements 34,283 35,660 Total outstanding commitments 1,010,261 967,346 CFC available credit commitments $ 4,489,739 $ 4,532,654 ____________________________ (1) Borrowings payable to CFC are eliminated in consolidation. (2) Represents outstanding notes payable and derivative instruments guaranteed by CFC. Guarantees of NCSC debt and derivative instruments are not presented in the amount in “Note 10—Guarantees” as the debt and derivatives are reported on the condensed consolidated balance sheets. |
Investment Securities - (Tables
Investment Securities - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Investments [Abstract] | |
Schedule of investments in equity securities | The following tables present the amortized cost, gross unrealized gains and losses and fair value of our investment securities, all of which were classified as available for sale, as of August 31, 2017 and May 31, 2017 . August 31, 2017 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Farmer Mac—Series A Non-Cumulative Preferred Stock $ 30,000 $ 1,320 $ — $ 31,320 Farmer Mac—Series B Non-Cumulative Preferred Stock 25,000 2,250 — 27,250 Farmer Mac—Series C Non-Cumulative Preferred Stock 25,000 2,300 — 27,300 Farmer Mac—Class A Common Stock 538 4,996 — 5,534 Total investment securities, available-for-sale $ 80,538 $ 10,866 $ — $ 91,404 May 31, 2017 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Farmer Mac—Series A Non-Cumulative Preferred Stock $ 30,000 $ 1,585 $ — $ 31,585 Farmer Mac—Series B Non-Cumulative Preferred Stock 25,000 1,940 — 26,940 Farmer Mac—Series C Non-Cumulative Preferred Stock 25,000 4,150 — 29,150 Farmer Mac—Class A Common Stock 538 4,341 — 4,879 Total investment securities, available-for-sale $ 80,538 $ 12,016 $ — $ 92,554 |
Loans and Commitments - (Tables
Loans and Commitments - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Summary of loans outstanding to members and unadvanced commitments by loan type and by member class | The following table presents loans outstanding, by loan type and by member class, as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in thousands) Loans Outstanding Unadvanced Commitments (1) Loans Outstanding Unadvanced Commitments (1) Loan type: Long-term loans: Fixed rate $ 22,435,089 $ — $ 22,136,690 $ — Variable rate 856,076 4,973,913 847,419 4,802,319 Total long-term loans 23,291,165 4,973,913 22,984,109 4,802,319 Line of credit loans 1,339,861 7,787,977 1,372,221 7,772,655 Total loans outstanding 24,631,026 12,761,890 24,356,330 12,574,974 Deferred loan origination costs 11,051 — 10,714 — Loans to members $ 24,642,077 $ 12,761,890 $ 24,367,044 $ 12,574,974 Member class: CFC: Distribution $ 19,069,531 $ 8,304,328 $ 18,825,366 $ 8,295,146 Power supply 4,490,366 3,433,598 4,504,791 3,276,113 Statewide and associate 59,709 126,454 57,830 144,406 Total CFC 23,619,606 11,864,380 23,387,987 11,715,665 NCSC 658,911 609,563 613,924 584,944 RTFC 352,509 287,947 354,419 274,365 Total loans outstanding 24,631,026 12,761,890 24,356,330 12,574,974 Deferred loan origination costs 11,051 — 10,714 — Loans to members $ 24,642,077 $ 12,761,890 $ 24,367,044 $ 12,574,974 ____________________________ (1) The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. |
Schedule of available balance and maturities of lines of credit | The following table summarizes the available balance under unadvanced loan commitments as of August 31, 2017 and the related maturities by fiscal year and thereafter by loan type: Available Balance Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2018 2019 2020 2021 2022 Thereafter Line of credit loans $ 7,787,977 $ 552,577 $ 4,518,898 $ 690,939 $ 930,767 $ 800,070 $ 294,726 Long-term loans 4,973,913 400,983 972,366 681,143 707,552 1,904,275 307,594 Total $ 12,761,890 $ 953,560 $ 5,491,264 $ 1,372,082 $ 1,638,319 $ 2,704,345 $ 602,320 |
Summary of available balance under committed lines of credit and the related maturities by fiscal year | The following table summarizes the available balance under unconditional committed lines of credit, and the related maturities by fiscal year and thereafter, as of August 31, 2017 . Available Balance Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2018 2019 2020 2021 2022 Thereafter Committed lines of credit $2,787,848 $ 214,406 $543,054 $454,185 $631,840 $698,272 $246,091 |
Summary of loans outstanding as collateral pledged to secure the entity's collateral trust bonds, Clean Renewable Energy Bonds and notes payable to the Federal Agricultural Mortgage Corporation and the amount of the corresponding debt outstanding | The following table summarizes our loans outstanding as collateral pledged to secure our collateral trust bonds, Clean Renewable Energy Bonds, notes payable to Farmer Mac and notes payable to the Federal Financing Bank and guaranteed by RUS under the Guaranteed Underwriter Program of the USDA (“Guaranteed Underwriter Program”) and the amount of the corresponding debt outstanding as of August 31, 2017 and May 31, 2017 . See “Note 5—Short-Term Borrowings” and “Note 6—Long-Term Debt” for information on our borrowings. (Dollars in thousands) August 31, 2017 May 31, 2017 Collateral trust bonds: 2007 indenture: Distribution system mortgage notes $ 8,619,147 $ 8,740,572 RUS-guaranteed loans qualifying as permitted investments 144,978 146,373 Total pledged collateral $ 8,764,125 $ 8,886,945 Collateral trust bonds outstanding 7,697,711 7,697,711 1994 indenture: Distribution system mortgage notes $ 258,334 $ 263,007 Collateral trust bonds outstanding 225,000 225,000 Farmer Mac: Distribution and power supply system mortgage notes $ 2,909,260 $ 2,942,456 Notes payable outstanding 2,502,467 2,513,389 Clean Renewable Energy Bonds Series 2009A: Distribution and power supply system mortgage notes $ 14,219 $ 14,943 Cash 760 481 Total pledged collateral $ 14,979 $ 15,424 Notes payable outstanding 13,214 13,214 Federal Financing Bank: Distribution and power supply system mortgage notes $ 5,777,114 $ 5,833,515 Notes payable outstanding 5,073,613 4,985,748 |
Past Due Financing Receivables | The tables below present the payment status of loans outstanding by member class as of August 31, 2017 and May 31, 2017 . As indicated in the table, we did not have any past due loans as of either August 31, 2017 or May 31, 2017 . August 31, 2017 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Past Due Total Financing Receivables Nonaccrual Loans CFC: Distribution $ 19,069,531 $ — $ — $ — $ 19,069,531 $ — Power supply 4,490,366 — — — 4,490,366 — Statewide and associate 59,709 — — — 59,709 — CFC total 23,619,606 — — — 23,619,606 — NCSC 658,911 — — — 658,911 — RTFC 352,509 — — — 352,509 — Total loans outstanding $ 24,631,026 $ — $ — $ — $ 24,631,026 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % May 31, 2017 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Total Financing Nonaccrual Loans CFC: Distribution $ 18,825,366 $ — $ — $ — $ 18,825,366 $ — Power supply 4,504,791 — — — 4,504,791 — Statewide and associate 57,830 — — — 57,830 — CFC total 23,387,987 — — — 23,387,987 — NCSC 613,924 — — — 613,924 — RTFC 354,419 — — — 354,419 — Total loans outstanding $ 24,356,330 $ — $ — $ — $ 24,356,330 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % ____________________________ (1) All loans 90 days or more past due are on nonaccrual status. |
Schedule of Troubled Debt Restructured loans | The following table provides a summary of loans modified as TDRs in prior periods, the performance status of these loans and the unadvanced loan commitments related to the TDR loans, by member class, as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in thousands) Loans Outstanding % of Total Loans Unadvanced Commitments Loans Outstanding % of Total Loans Unadvanced Commitments TDR loans: Performing TDR loans: CFC/Distribution $ 6,507 0.03 % $ — $ 6,581 0.02 % $ — RTFC 6,466 0.02 — 6,592 0.03 — Total performing TDR loans 12,973 0.05 — 13,173 0.05 — Total TDR loans $ 12,973 0.05 % $ — $ 13,173 0.05 % $ — |
Impaired Financing Receivable with Related Allowance Recorded Investment | The following table provides information on loans classified as individually impaired loans as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Related Allowance With no specific allowance recorded: CFC $ 6,507 $ — $ 6,581 $ — With a specific allowance recorded: RTFC 6,466 1,360 6,592 1,640 Total impaired loans $ 12,973 $ 1,360 $ 13,173 $ 1,640 |
Schedule of average recorded investment in impaired loans and the interest income recognized by member class | The following table represents the average recorded investment in individually impaired loans and the interest income recognized, by company, for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, 2017 2016 2017 2016 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC $ 6,574 $ 6,671 $ 144 $ 130 RTFC 6,548 9,346 82 88 Total impaired loans $ 13,122 $ 16,017 $ 226 $ 218 |
Schedule of loan portfolio by risk rating category and member class based on available data | The following tables present total loans outstanding, by member class and risk rating category, based on available data as of August 31, 2017 and May 31, 2017 . August 31, 2017 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 18,961,354 $ 108,177 $ — $ — $ 19,069,531 Power supply 4,490,366 — — — 4,490,366 Statewide and associate 58,506 1,203 — — 59,709 CFC total 23,510,226 109,380 — — 23,619,606 NCSC 657,722 1,189 — — 658,911 RTFC 346,043 — 6,466 — 352,509 Total loans outstanding $ 24,513,991 $ 110,569 $ 6,466 $ — $ 24,631,026 May 31, 2017 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 18,715,810 $ 109,556 $ — $ — $ 18,825,366 Power supply 4,504,791 — — — 4,504,791 Statewide and associate 56,654 1,176 — — 57,830 CFC total 23,277,255 110,732 — — 23,387,987 NCSC 612,592 1,332 — — 613,924 RTFC 346,944 — 7,475 — 354,419 Total loans outstanding $ 24,236,791 $ 112,064 $ 7,475 $ — $ 24,356,330 |
Summary of the activity in the loan loss allowance reflecting disaggregation by company of the allowance for loan losses held at CFC based on borrower type | The tables below summarize changes, by company, in the allowance for loan losses as of and for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, 2017 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2017 $ 29,499 $ 2,910 $ 4,967 $ 37,376 Provision (benefit) for loan losses 22 (174 ) (146 ) (298 ) Balance as of August 31, 2017 $ 29,521 $ 2,736 $ 4,821 $ 37,078 Three Months Ended August 31, 2016 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2016 $ 24,559 $ 3,134 $ 5,565 $ 33,258 Provision for loan losses 450 147 1,331 1,928 Charge-offs — — (2,119 ) (2,119 ) Recoveries 53 — — 53 Balance as of August 31, 2016 $ 25,062 $ 3,281 $ 4,777 $ 33,120 |
Schedule of loan loss allowance and the recorded investment in outstanding loans by impairment methodology and by company | The tables below present, by company, the components of our allowance for loan losses and the recorded investment of the related loans as of August 31, 2017 and May 31, 2017 . August 31, 2017 (Dollars in thousands) CFC NCSC RTFC Total Allowance by company: Collectively evaluated loans $ 29,521 $ 2,736 $ 3,461 $ 35,718 Individually evaluated loans — — 1,360 1,360 Total ending balance of the allowance $ 29,521 $ 2,736 $ 4,821 $ 37,078 Recorded investment in loans: Collectively evaluated loans $ 23,613,099 $ 658,911 $ 346,043 $ 24,618,053 Individually evaluated loans 6,507 — 6,466 12,973 Total recorded investment in loans $ 23,619,606 $ 658,911 $ 352,509 $ 24,631,026 Loans to members, net (1) $ 23,590,085 $ 656,175 $ 347,688 $ 24,593,948 May 31, 2017 (Dollars in thousands) CFC NCSC RTFC Total Allowance by company: Collectively evaluated loans $ 29,499 $ 2,910 $ 3,327 $ 35,736 Individually evaluated loans — — 1,640 1,640 Total ending balance of the allowance $ 29,499 $ 2,910 $ 4,967 $ 37,376 Recorded investment in loans: Collectively evaluated loans $ 23,381,406 $ 613,924 $ 347,827 $ 24,343,157 Individually evaluated loans 6,581 — 6,592 13,173 Total recorded investment in loans $ 23,387,987 $ 613,924 $ 354,419 $ 24,356,330 Loans to members, net (1) $ 23,358,488 $ 611,014 $ 349,452 $ 24,318,954 ____________________________ (1) Excludes unamortized deferred loan origination costs $11 million as of both August 31, 2017 and May 31, 2017 |
Short-Term Borrowings - (Tables
Short-Term Borrowings - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | The following table presents the total commitment, the net amount available for use and the outstanding letters of credit under our committed bank revolving line of credit agreements as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in millions) Total Commitment Letters of Credit Outstanding Net Available for Use Total Commitment Letters of Credit Outstanding Net Available for Use Maturity Annual Facility Fee (1) 3-year agreement $ 1,533 $ — $ 1,533 $ 1,533 $ — $ 1,533 November 19, 2019 7.5 bps 5-year agreement 1,632 1 1,631 1,632 1 1,631 November 19, 2021 10 bps Total $ 3,165 $ 1 $ 3,164 $ 3,165 $ 1 $ 3,164 ____________________________ (1) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. |
Long-Term Debt - (Tables)
Long-Term Debt - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Debt Instruments [Abstract] | |
Summary of long-term debt outstanding | The following table displays long-term debt outstanding, by debt type, as of August 31, 2017 and May 31, 2017 . (Dollars in thousands) August 31, 2017 May 31, 2017 Unsecured long-term debt: Medium-term notes sold through dealers $ 2,785,389 $ 2,386,956 Medium-term notes sold to members 418,617 422,779 Subtotal medium-term notes 3,204,006 2,809,735 Unamortized discount (379 ) (382 ) Debt issuance costs (24,037 ) (21,903 ) Total unsecured medium-term notes 3,179,590 2,787,450 Unsecured notes payable 22,799 22,799 Unamortized discount (352 ) (379 ) Debt issuance costs (86 ) (94 ) Total unsecured notes payable 22,361 22,326 Total unsecured long-term debt 3,201,951 2,809,776 Secured long-term debt: Collateral trust bonds 7,922,711 7,922,711 Unamortized discount (255,916 ) (258,329 ) Debt issuance costs (28,667 ) (30,334 ) Total collateral trust bonds 7,638,128 7,634,048 Guaranteed Underwriter Program notes payable 5,073,613 4,985,748 Debt issuance costs (257 ) (264 ) Total Guaranteed Underwriter Program notes payable 5,073,356 4,985,484 Farmer Mac notes payable 2,502,467 2,513,389 Other secured notes payable 13,214 13,214 Debt issuance costs (297 ) (317 ) Total other secured notes payable 12,917 12,897 Total secured notes payable 7,588,740 7,511,770 Total secured long-term debt 15,226,868 15,145,818 Total long-term debt $ 18,428,819 $ 17,955,594 |
Subordinated Deferrable Debt 26
Subordinated Deferrable Debt - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Subordinated Debt [Abstract] | |
Schedule of Subordinated Borrowing | The following table presents subordinated deferrable debt outstanding as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in thousands) Amount Amount 4.75% due 2043 with a call date of April 30, 2023 $ 400,000 $ 400,000 5.25% due 2046 with a call date of April 20, 2026 350,000 350,000 Debt issuance costs (7,693 ) (7,726 ) Total subordinated deferrable debt $ 742,307 $ 742,274 |
Derivative Financial Instrume27
Derivative Financial Instruments - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts and weighted average rates paid and received | The following table shows the outstanding notional amounts and the weighted-average rate paid and received for our interest rate swaps, by type, as of August 31, 2017 and May 31, 2017 . The substantial majority of our interest rate swaps use an index based on the London Interbank Offered Rate (“LIBOR”) for either the pay or receive leg of the swap agreement. August 31, 2017 May 31, 2017 (Dollars in thousands) Notional Amount Weighted- Average Rate Paid Weighted- Average Rate Received Notional Weighted- Weighted- Pay-fixed swaps $ 7,090,088 2.84 % 1.31 % $ 6,807,013 2.85 % 1.16 % Receive-fixed swaps 3,849,000 1.89 2.63 3,699,000 1.72 2.64 Total interest rate swaps 10,939,088 2.50 1.77 10,506,013 2.46 1.68 Forward pay-fixed swaps 136,929 285,383 Total $ 11,076,017 $ 10,791,396 |
Schedule of fair values and notional amounts of outstanding derivatives | The following table displays the fair value of the derivative assets and derivative liabilities recorded on our condensed consolidated balance sheets and the related outstanding notional amount of our interest rate swaps as of August 31, 2017 and May 31, 2017 . August 31, 2017 May 31, 2017 (Dollars in thousands) Fair Value Notional Balance Fair Value Notional Balance Derivative assets $ 40,466 $ 3,577,988 $ 49,481 $ 3,754,120 Derivative liabilities (402,423 ) 7,498,029 (385,337 ) 7,037,276 Total $ (361,957 ) $ 11,076,017 $ (335,856 ) $ 10,791,396 |
Schedule of offsetting assets and liabilities | The following table presents the gross fair value of derivative assets and liabilities reported on our condensed consolidated balance sheets as of August 31, 2017 and May 31, 2017 , and provides information on the impact of netting provisions and collateral pledged. August 31, 2017 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 40,466 $ — $ 40,466 $ 40,466 $ — $ — Derivative liabilities: Interest rate swaps 402,423 — 402,423 40,466 — 361,957 May 31, 2017 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 49,481 $ — $ 49,481 $ 49,481 $ — $ — Derivative liabilities: Interest rate swaps 385,337 — 385,337 49,481 — 335,856 |
Schedule of offsetting assets and liabilities | The following table presents the gross fair value of derivative assets and liabilities reported on our condensed consolidated balance sheets as of August 31, 2017 and May 31, 2017 , and provides information on the impact of netting provisions and collateral pledged. August 31, 2017 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 40,466 $ — $ 40,466 $ 40,466 $ — $ — Derivative liabilities: Interest rate swaps 402,423 — 402,423 40,466 — 361,957 May 31, 2017 Gross Amount of Recognized Assets/ Liabilities Gross Amount Offset in the Balance Sheet Net Amount of Assets/ Liabilities Presented in the Balance Sheet Gross Amount Not Offset in the Balance Sheet (Dollars in thousands) Financial Instruments Cash Collateral Pledged Net Amount Derivative assets: Interest rate swaps $ 49,481 $ — $ 49,481 $ 49,481 $ — $ — Derivative liabilities: Interest rate swaps 385,337 — 385,337 49,481 — 335,856 |
Summary of gains and losses recorded on the consolidated statements of operations for the entity's interest rate swaps | The following table presents the components of the derivative gains (losses) reported in our condensed consolidated statements of operations for our interest rate swaps for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, (Dollars in thousands) 2017 2016 Derivative cash settlements $ (20,222 ) $ (23,390 ) Derivative forward value losses (25,976 ) (164,903 ) Derivative losses $ (46,198 ) $ (188,293 ) |
Schedule of notional amounts of derivative instruments having rating triggers | The following table displays the notional amounts of our derivative contracts with rating triggers as of August 31, 2017 and the payments that would be required if the contracts were terminated as of that date because of a downgrade of our unsecured credit ratings or the counterparty’s unsecured credit ratings below A3/A-, below Baa1/BBB+ to or below Baa2/BBB, below Baa3/BBB- or to or below Ba2/BB+ by Moody’s or S&P, respectively. In calculating the payment amounts that would be required upon termination of the derivative contracts, we assumed that the amounts for each counterparty would be netted in accordance with the provisions of the master netting agreements for each counterparty. The net payment amounts are based on the fair value of the underlying derivative instrument, excluding the credit risk valuation adjustment, plus any unpaid accrued interest amounts. (Dollars in thousands) Notional Amount Payable Due From CFC Receivable Due to CFC Net (Payable)/Receivable Impact of rating downgrade trigger: Falls below A3/A- (1) $ 59,165 $ (13,792 ) $ — $ (13,792 ) Falls below Baa1/BBB+ 7,315,942 (225,976 ) — (225,976 ) Falls to or below Baa2/BBB (2) 457,136 (1,432 ) — (1,432 ) Falls below Baa3/BBB- 266,833 (22,718 ) — (22,718 ) Total $ 8,099,076 $ (263,918 ) $ — $ (263,918 ) ____________________________ (1) Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. (2) Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively. |
Equity - (Tables)
Equity - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following table presents the components of equity as of August 31, 2017 and May 31, 2017 . (Dollars in thousands) August 31, 2017 May 31, 2017 Membership fees $ 971 $ 971 Educational fund 1,573 1,929 Total membership fees and educational fund 2,544 2,900 Patronage capital allocated 716,481 761,701 Members’ capital reserve 630,305 630,305 Unallocated net loss: Prior year-end cumulative derivative forward value losses (1) (332,525 ) (507,904 ) Current year derivative forward value gains (losses) (1) (26,111 ) 175,379 Current year-end cumulative derivative forward value losses (1) (358,636 ) (332,525 ) Other unallocated net income (loss) 29,641 (5,603 ) Unallocated net loss (328,995 ) (338,128 ) CFC retained equity 1,020,335 1,056,778 Accumulated other comprehensive income 11,959 13,175 Total CFC equity 1,032,294 1,069,953 Noncontrolling interests 29,286 28,852 Total equity $ 1,061,580 $ 1,098,805 ____________________________ (1) Represents derivative forward value gains (losses) for CFC only, which excludes derivative forward value gains (losses) attributable to NCSC, because total CFC equity does not include the noncontrolling interests of the consolidated variable interest entities NCSC and RTFC. See “Note 12—Business Segments” for the statements of operations for CFC. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize, by component, the activity in AOCI as of and for the three months ended August 31, 2017 and 2016 . Three Months Ended August 31, 2017 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Derivatives Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ 12,016 $ 3,702 $ — $ (2,543 ) $ 13,175 Unrealized gains (1,151 ) — — — (1,151 ) Losses reclassified into earnings — — — 127 127 Gains reclassified into earnings — (192 ) — — (192 ) Other comprehensive income (1,151 ) (192 ) — 127 (1,216 ) Ending balance $ 10,865 $ 3,510 $ — $ (2,416 ) $ 11,959 Three Months Ended August 31, 2016 (Dollars in thousands) Unrealized Gains (Losses) AFS Securities Unrealized Gains Derivatives Unrealized Losses Foreclosed Assets Unrealized Losses Defined Benefit Plan Total Beginning balance $ 7,402 $ 4,487 $ (9,823 ) $ (1,008 ) $ 1,058 Unrealized gains (11 ) — — — (11 ) Losses reclassified into earnings — — 9,823 44 9,867 Gains reclassified into earnings — (197 ) — — (197 ) Other comprehensive income (11 ) (197 ) 9,823 44 9,659 Ending balance $ 7,391 $ 4,290 $ — $ (964 ) $ 10,717 |
Guarantees - (Tables)
Guarantees - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Guarantees [Abstract] | |
Summary of total guarantees by type of guarantee and member class | The following table summarizes total guarantees, by type of guarantee and by member class, as of August 31, 2017 and May 31, 2017 . (Dollars in thousands) August 31, 2017 May 31, 2017 Total by type: Long-term tax-exempt bonds (1) $ 394,090 $ 468,145 Letters of credit 316,983 307,321 Other guarantees 113,191 114,151 Total $ 824,264 $ 889,617 Total by member class: CFC: Distribution $ 130,684 $ 126,188 Power supply 675,124 743,678 Statewide and associate 5,001 5,054 CFC total 810,809 874,920 NCSC 11,881 13,123 RTFC 1,574 1,574 Total $ 824,264 $ 889,617 |
Fair Value Measurement - (Table
Fair Value Measurement - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The tables also display the classification within the fair value hierarchy of the valuation technique used in estimating fair value. August 31, 2017 Fair Value Measurements Using (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 269,971 $ 269,971 $ 269,971 $ — $ — Restricted cash 22,690 22,690 22,690 — — Time deposits 126,000 126,000 — 126,000 — Investment securities, available for sale 91,404 91,404 91,404 — — Deferred compensation investments 4,912 4,912 4,912 — — Loans to members, net 24,604,999 24,518,326 — — 24,518,326 Accrued interest receivable 111,915 111,915 — 111,915 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 40,466 40,466 — 40,466 — Liabilities: Short-term borrowings $ 3,074,660 $ 3,074,549 $ 1,095,624 $ 1,978,925 $ — Long-term debt 18,428,819 19,263,452 — 11,632,285 7,631,167 Accrued interest payable 195,472 195,472 — 195,472 — Guarantee liability 14,121 14,642 — — 14,642 Derivative liabilities 402,423 402,423 — 402,423 — Subordinated deferrable debt 742,307 801,900 — 801,900 — Members’ subordinated certificates 1,418,207 1,418,230 — — 1,418,230 May 31, 2017 Fair Value Measurements Using (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 166,615 $ 166,615 $ 166,615 $ — $ — Restricted cash 21,806 21,806 21,806 — — Time deposits 226,000 226,000 — 226,000 — Investment securities, available for sale 92,554 92,554 92,554 — — Deferred compensation investments 4,693 4,693 4,693 — — Loans to members, net 24,329,668 24,182,724 — — 24,182,724 Accrued interest receivable 111,493 111,493 — 111,493 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 49,481 49,481 — 49,481 — Liabilities: Short-term borrowings $ 3,342,900 $ 3,342,990 $ 1,527,990 $ 1,815,000 $ — Long-term debt 17,955,594 18,744,331 — 11,215,290 7,529,041 Accrued interest payable 137,476 137,476 — 137,476 — Guarantee liability 15,241 16,204 — — 16,204 Derivative liabilities 385,337 385,337 — 385,337 — Subordinated deferrable debt 742,274 788,079 — 788,079 — Members’ subordinated certificates 1,419,025 1,419,048 — — 1,419,048 |
Schedule of the entity's assets and liabilities that are measured at fair value on a recurring basis | The following table presents the carrying value and fair value of financial instruments reported in our condensed consolidated financial statements at fair value on a recurring basis as of August 31, 2017 and May 31, 2017 , and the classification of the valuation technique within the fair value hierarchy. August 31, 2017 May 31, 2017 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Investment securities available for sale $ 91,404 $ — $ 91,404 $ 92,554 $ — $ 92,554 Deferred compensation investments 4,912 — 4,912 4,693 — 4,693 Derivative assets — 40,466 40,466 — 49,481 49,481 Derivative liabilities — 402,423 402,423 — 385,337 385,337 |
Schedule of carrying/fair value of the related individual assets and the total losses | The following table presents the carrying value and fair value of assets reported in our condensed consolidated financial statements at fair value on a nonrecurring basis as of August 31, 2017 and May 31, 2017 , and unrealized losses for the three months ended August 31, 2017 and 2016 . Level 3 Fair Value Unrealized Losses Three Months Ended August 31, (Dollars in thousands) August 31, 2017 May 31, 2017 2017 2016 Impaired loans, net of specific reserves $ — $ — $ — $ (116 ) |
Segment Information - (Tables)
Segment Information - (Tables) | 3 Months Ended |
Aug. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment presentation for the consolidated statements of operations and consolidated balance sheets | The following tables display segment results for the three months ended August 31, 2017 and 2016 , and assets attributable to each segment as of August 31, 2017 and August 31, 2016 . Three Months Ended August 31, 2017 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 263,411 $ 10,949 $ (8,445 ) $ 265,915 Interest expense (192,505 ) (8,671 ) 8,445 (192,731 ) Net interest income 70,906 2,278 — 73,184 Benefit for loan losses 298 — — 298 Net interest income after benefit for loan losses 71,204 2,278 — 73,482 Non-interest income: Fee and other income 3,888 400 (343 ) 3,945 Derivative losses: Derivative cash settlements (19,564 ) (658 ) — (20,222 ) Derivative forward value gains (losses) (26,111 ) 135 — (25,976 ) Derivative losses (45,675 ) (523 ) — (46,198 ) Results of operations of foreclosed assets (24 ) — — (24 ) Total non-interest income (41,811 ) (123 ) (343 ) (42,277 ) Non-interest expense: General and administrative expenses (19,738 ) (1,898 ) — (21,636 ) Other non-interest expense (522 ) (343 ) 343 (522 ) Total non-interest expense (20,260 ) (2,241 ) 343 (22,158 ) Income (loss) before income taxes 9,133 (86 ) — 9,047 Income tax expense — (32 ) — (32 ) Net income (loss) $ 9,133 $ (118 ) $ — $ 9,015 August 31, 2017 CFC Other Elimination Consolidated Total Assets: Loans to members $ 24,606,635 $ 1,011,420 $ (975,978 ) $ 24,642,077 Less: Allowance for loan losses (37,078 ) — — (37,078 ) Loans to members, net 24,569,557 1,011,420 (975,978 ) 24,604,999 Other assets 864,334 107,146 (95,953 ) 875,527 Total assets $ 25,433,891 $ 1,118,566 $ (1,071,931 ) $ 25,480,526 Three Months Ended August 31, 2016 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 254,017 $ 11,222 $ (8,404 ) $ 256,835 Interest expense (180,832 ) (8,676 ) 8,428 (181,080 ) Net interest income 73,185 2,546 24 75,755 Provision for loan losses (1,928 ) — — (1,928 ) Net interest income after provision for loan losses 71,257 2,546 24 73,827 Non-interest income: Fee and other income 4,328 897 (695 ) 4,530 Derivative losses: Derivative cash settlements (22,610 ) (780 ) — (23,390 ) Derivative forward value losses (164,212 ) (691 ) — (164,903 ) Derivative losses (186,822 ) (1,471 ) — (188,293 ) Results of operations of foreclosed assets (1,112 ) — — (1,112 ) Total non-interest income (183,606 ) (574 ) (695 ) (184,875 ) Non-interest expense: General and administrative expenses (18,779 ) (2,080 ) — (20,859 ) Other non-interest expense (443 ) (671 ) 671 (443 ) Total non-interest expense (19,222 ) (2,751 ) 671 (21,302 ) Loss before income taxes (131,571 ) (779 ) — (132,350 ) Income tax benefit — 89 — 89 Net loss $ (131,571 ) $ (690 ) $ — $ (132,261 ) August 31, 2016 CFC Other Elimination Consolidated Total Assets: Loans to members $ 23,529,310 $ 1,077,238 $ (1,040,323 ) $ 23,566,225 Less: Allowance for loan losses (33,120 ) — — (33,120 ) Loans to members, net 23,496,190 1,077,238 (1,040,323 ) 23,533,105 Other assets 1,130,356 114,968 (100,814 ) 1,144,510 Total assets $ 24,626,546 $ 1,192,206 $ (1,141,137 ) $ 24,677,615 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | Aug. 31, 2016 | May 31, 2016 |
Summary of Significant Accounting Policies [Line Items] | ||||
Restricted Cash and Cash Equivalents | $ 22,690 | $ 21,806 | ||
Escrow Deposit | 16,000 | |||
Deferred income | 70,686 | 73,972 | ||
Deferred Loan Conversion Fees | 65,000 | 68,000 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 11,959 | 13,175 | $ 10,717 | $ 1,058 |
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 10,865 | $ 12,016 | $ 7,391 | $ 7,402 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Interest Income, Categorized by Loan and Investment Type (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | ||
Components of interest income | |||
Interest income | $ (265,915) | $ (256,835) | |
Interest on investments | 1,987 | 2,280 | |
Long-term fixed-rate bonds | |||
Components of interest income | |||
Interest income | [1] | (249,364) | (244,128) |
Long-term variable-rate loans | |||
Components of interest income | |||
Interest income | (5,863) | (4,527) | |
Line of credit loans | |||
Components of interest income | |||
Interest income | (8,707) | (5,966) | |
Restructured loans | |||
Components of interest income | |||
Interest income | [2] | (226) | (218) |
Other Income | |||
Components of interest income | |||
Interest income | [3] | (232) | (284) |
Loans Receivable [Member] | |||
Components of interest income | |||
Interest income | $ (263,928) | $ (254,555) | |
[1] | Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. | ||
[2] | Troubled debt restructuring (“TDR”) loans. | ||
[3] | )Consists of late payment fees and net amortization of deferred loan fees and loan origination costs. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Interest Expense, Categorized by Debt Product Type (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | ||
Interest expense on debt: | |||
Total interest expense | [1],[2] | $ 192,731 | $ 181,080 |
Short-term borrowings | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 10,539 | 4,882 |
Medium-term notes | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 25,116 | 23,585 |
Collateral trust bonds | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 85,277 | 85,049 |
Long-term notes payable | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 47,482 | 43,129 |
Subordinated deferrable debt | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | 9,416 | 9,426 |
Subordinated certificates | |||
Interest expense on debt: | |||
Interest expense on debt | [1],[2] | $ 14,901 | $ 15,009 |
[1] | Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. | ||
[2] | Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated Assets and Liabilities of VIEs included in CFCs Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | Aug. 31, 2016 |
Variable Interest Entity [Line Items] | |||
Loans to members | $ 24,642,077 | $ 24,367,044 | $ 23,566,225 |
Other assets | 45,806 | 40,346 | |
Total assets | 25,480,526 | 25,205,692 | $ 24,677,615 |
Long-term debt | 18,428,819 | 17,955,594 | |
Other liabilities | 46,565 | 50,309 | |
Total liabilities | 24,418,946 | 24,106,887 | |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure | |||
Variable Interest Entity [Line Items] | |||
Loans to members | 1,011,420 | 968,343 | |
Other assets | 11,194 | 10,157 | |
Total assets | 1,022,614 | 978,500 | |
Long-term debt | 10,000 | 10,000 | |
Other liabilities | 38,308 | 36,899 | |
Total liabilities | $ 48,308 | $ 46,899 |
Variable Interest Entities - In
Variable Interest Entities - Information on CFCs Credit Commitments to NCSC and RTFC (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Total credit enhancements | $ 824,264 | $ 889,617 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
CFC credit commitments | 5,500,000 | 5,500,000 | |
Borrowings payable to CFC | [1] | 975,978 | 931,686 |
Variable Interest Entity, Consolidated Carrying Amount Obligations Guaranteed by Primary Beneficiary | 34,283 | 35,660 | |
Variable Interest Entity, Total outstanding commitments | 1,010,261 | 967,346 | |
Total credit enhancements | 13,455 | 14,697 | |
Variable Interest Entity, Other credit enhancements | [2] | 20,828 | 20,963 |
CFC available credit commitments | $ 4,489,739 | $ 4,532,654 | |
[1] | Borrowings payable to CFC are eliminated in consolidation. | ||
[2] | Represents outstanding notes payable and derivative instruments guaranteed by CFC. Guarantees of NCSC debt and derivative instruments are not presented in the amount in “Note 10—Guarantees” as the debt and derivatives are reported on the condensed consolidated balance sheets. |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) $ in Millions | Aug. 31, 2017USD ($) |
Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Maximum Potential Exposure Credit Enhancements | $ 37 |
Investment Securities - Investm
Investment Securities - Investment Securities (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Investments | ||
Amortized Cost | $ 80,538 | $ 80,538 |
Gross Unrealized Gains | 10,866 | 12,016 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 91,404 | 92,554 |
Preferred Stock | Federal Agricultural Mortgage Corporation Series A preferred stock | ||
Investments | ||
Amortized Cost | 30,000 | 30,000 |
Gross Unrealized Gains | 1,320 | 1,585 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 31,320 | 31,585 |
Preferred Stock | Federal Agricultural Mortgage Corporation Series B Preferred Stock | ||
Investments | ||
Amortized Cost | 25,000 | 25,000 |
Gross Unrealized Gains | 2,250 | 1,940 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 27,250 | 26,940 |
Preferred Stock | Federal Agricultural Mortgage Corporation Series C Preferred Stock | ||
Investments | ||
Amortized Cost | 25,000 | 25,000 |
Gross Unrealized Gains | 2,300 | 4,150 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 27,300 | 29,150 |
Common Stock | Federal Agricultural Mortgage Corporation Class A common stock | ||
Investments | ||
Amortized Cost | 538 | 538 |
Gross Unrealized Gains | 4,996 | 4,341 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 5,534 | $ 4,879 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | Aug. 31, 2017 | May 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 0 | $ 0 |
Loans and Commitments - Outstan
Loans and Commitments - Outstanding Principal Balance and Unadvanced Commitments (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | Aug. 31, 2016 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | $ 24,631,026 | $ 24,356,330 | |||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11,051 | 10,714 | |||
Loans to members | 24,642,077 | 24,367,044 | $ 23,566,225 | ||
Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 12,761,890 | 12,574,974 | ||
CFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 23,619,606 | 23,387,987 | |||
CFC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 11,864,380 | 11,715,665 | ||
CFC | Distribution | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 19,069,531 | 18,825,366 | |||
CFC | Distribution | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 8,304,328 | 8,295,146 | ||
CFC | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 4,490,366 | 4,504,791 | |||
CFC | Power supply | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 3,433,598 | 3,276,113 | ||
CFC | Statewide and associate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 59,709 | 57,830 | |||
CFC | Statewide and associate | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 126,454 | 144,406 | ||
NCSC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 658,911 | 613,924 | |||
NCSC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 609,563 | 584,944 | ||
RTFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 352,509 | 354,419 | |||
RTFC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 287,947 | 274,365 | ||
Long-term fixed-rate bonds | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 22,435,089 | 22,136,690 | |||
Long-term variable-rate loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 856,076 | 847,419 | |||
Long-term variable-rate loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 4,973,913 | 4,802,319 | ||
Long Term Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 23,291,165 | 22,984,109 | |||
Long Term Loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 4,973,913 | 4,802,319 | ||
Line of credit loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 1,339,861 | 1,372,221 | |||
Line of credit loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | 7,787,977 | 7,772,655 | [1] | ||
Loans Guaranteed by Rural Utilities Service | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | 166,000 | 167,000 | |||
Loans Guaranteed by Farmer Mac | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Net of Deferred Income | $ 802,000 | $ 843,000 | |||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. |
Loans and Commitments - Availab
Loans and Commitments - Available Balance Under Unadvanced Commitments and Maturity (Details) - Unadvanced commitments - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | [1] | $ 12,761,890 | $ 12,574,974 | |
2,017 | 953,560 | |||
2,018 | 5,491,264 | |||
2,019 | 1,372,082 | |||
2,020 | 1,638,319 | |||
2,021 | 2,704,345 | |||
Thereafter | 602,320 | |||
Line of credit loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | 7,787,977 | 7,772,655 | [1] | |
2,017 | 552,577 | |||
2,018 | 4,518,898 | |||
2,019 | 690,939 | |||
2,020 | 930,767 | |||
2,021 | 800,070 | |||
Thereafter | 294,726 | |||
Long-term variable-rate loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | [1] | 4,973,913 | $ 4,802,319 | |
2,017 | 400,983 | |||
2,018 | 972,366 | |||
2,019 | 681,143 | |||
2,020 | 707,552 | |||
2,021 | 1,904,275 | |||
Thereafter | $ 307,594 | |||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. |
Loans and Commitments - Uncondi
Loans and Commitments - Unconditional Committed Lines of Credit and Maturity (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | |
Unadvanced commitments | |||
Notional maturities of committed lines of credit | |||
Available Balance | [1] | $ 12,761,890 | $ 12,574,974 |
2,017 | 953,560 | ||
2,018 | 5,491,264 | ||
2,019 | 1,372,082 | ||
2,020 | 1,638,319 | ||
2,021 | 2,704,345 | ||
Thereafter | 602,320 | ||
Unadvanced commitments not subject to material adverse change clauses | |||
Notional maturities of committed lines of credit | |||
Available Balance | 2,787,848 | $ 2,602,000 | |
2,017 | 214,406 | ||
2,018 | 543,054 | ||
2,019 | 454,185 | ||
2,020 | 631,840 | ||
2,021 | 698,272 | ||
Thereafter | $ 246,091 | ||
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. |
Loans and Commitments - Outst43
Loans and Commitments - Outstanding Pledged as Collateral (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Pledging of Loans and Loans on Deposit | ||
Restricted Cash and Cash Equivalents | $ 22,690 | $ 21,806 |
Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,764,125 | 8,886,945 |
Secured Debt | 7,697,711 | 7,697,711 |
Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Secured Debt | 225,000 | 225,000 |
Notes payable | Federal Agricultural Mortgage Corporation | ||
Pledging of Loans and Loans on Deposit | ||
Secured Debt | 2,502,467 | 2,513,389 |
Clean Renewable Energy Bonds Series 2009A | ||
Pledging of Loans and Loans on Deposit | ||
Restricted Cash and Cash Equivalents | 760 | 481 |
Secured Debt | 13,214 | 13,214 |
Assets Pledged as Collateral | 14,979 | 15,424 |
Guaranteed Underwriter Program Notes Payable | ||
Pledging of Loans and Loans on Deposit | ||
Secured Debt | 5,073,613 | 4,985,748 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,619,147 | 8,740,572 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 258,334 | 263,007 |
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 | 2,909,260 | 2,942,456 |
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 | 14,219 | 14,943 |
Loans Guaranteed by Rural Utilities Service | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 144,978 | 146,373 |
Mortgage notes receivable on deposit | Distribution and power supply system mortgage notes | Federal Financing Bank | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | $ 5,777,114 | $ 5,833,515 |
Loans and Commitments - Payment
Loans and Commitments - Payment Status of Loans Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | |
Payment Status of Loans | |||
Past due | $ 0 | $ 0 | |
Loans and Leases Receivable, Net of Deferred Income | 24,631,026 | 24,356,330 | |
Non-accrual loans | $ 0 | $ 0 | |
As a % of total loans | |||
Current (percent) | 100.00% | 100.00% | |
30-89 days past due (percent) | 0.00% | 0.00% | |
90 days or more past due (percent) | [1] | 0.00% | 0.00% |
Total past due (percent) | 0.00% | 0.00% | |
Total financing receivables (percent) | 100.00% | 100.00% | |
Non-accrual loans (percent) | 0.00% | 0.00% | |
CFC | |||
Payment Status of Loans | |||
Past due | $ 0 | $ 0 | |
Loans and Leases Receivable, Net of Deferred Income | 23,619,606 | 23,387,987 | |
Non-accrual loans | 0 | 0 | |
CFC | Distribution | |||
Payment Status of Loans | |||
Past due | 0 | 0 | |
Loans and Leases Receivable, Net of Deferred Income | 19,069,531 | 18,825,366 | |
Non-accrual loans | 0 | 0 | |
CFC | Power supply | |||
Payment Status of Loans | |||
Past due | 0 | 0 | |
Loans and Leases Receivable, Net of Deferred Income | 4,490,366 | 4,504,791 | |
Non-accrual loans | 0 | 0 | |
CFC | Statewide and associate | |||
Payment Status of Loans | |||
Loans and Leases Receivable, Net of Deferred Income | 59,709 | 57,830 | |
NCSC | |||
Payment Status of Loans | |||
Past due | 0 | 0 | |
Loans and Leases Receivable, Net of Deferred Income | 658,911 | 613,924 | |
Non-accrual loans | 0 | 0 | |
RTFC | |||
Payment Status of Loans | |||
Past due | 0 | ||
Loans and Leases Receivable, Net of Deferred Income | 352,509 | 354,419 | |
Non-accrual loans | 0 | 0 | |
Financing Receivables, 1 to 29 Days Past Due [Member] | |||
Payment Status of Loans | |||
Current | 24,631,026 | 24,356,330 | |
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | |||
Payment Status of Loans | |||
Current | 23,619,606 | 23,387,987 | |
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | Distribution | |||
Payment Status of Loans | |||
Current | 19,069,531 | 18,825,366 | |
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | Power supply | |||
Payment Status of Loans | |||
Current | 4,490,366 | 4,504,791 | |
Financing Receivables, 1 to 29 Days Past Due [Member] | CFC | Statewide and associate | |||
Payment Status of Loans | |||
Current | 59,709 | 57,830 | |
Financing Receivables, 1 to 29 Days Past Due [Member] | NCSC | |||
Payment Status of Loans | |||
Current | 658,911 | 613,924 | |
Financing Receivables, 1 to 29 Days Past Due [Member] | RTFC | |||
Payment Status of Loans | |||
Current | 352,509 | 354,419 | |
Financing Receivables, 30 to 89 Days Past Due [Member] | |||
Payment Status of Loans | |||
Past due | 0 | 0 | |
Financing Receivables, 30 to 89 Days Past Due [Member] | CFC | |||
Payment Status of Loans | |||
Past due | 0 | 0 | |
Financing Receivables, 30 to 89 Days Past Due [Member] | CFC | Distribution | |||
Payment Status of Loans | |||
Past due | 0 | 0 | |
Financing Receivables, 30 to 89 Days Past Due [Member] | CFC | Power supply | |||
Payment Status of Loans | |||
Past due | 0 | 0 | |
Financing Receivables, 30 to 89 Days Past Due [Member] | NCSC | |||
Payment Status of Loans | |||
Past due | 0 | 0 | |
Financing Receivables, 30 to 89 Days Past Due [Member] | RTFC | |||
Payment Status of Loans | |||
Past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Payment Status of Loans | |||
Past due | [1] | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CFC | |||
Payment Status of Loans | |||
Past due | [1] | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CFC | Distribution | |||
Payment Status of Loans | |||
Past due | [1] | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | CFC | Power supply | |||
Payment Status of Loans | |||
Past due | [1] | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | NCSC | |||
Payment Status of Loans | |||
Past due | [1] | $ 0 | $ 0 |
[1] | All loans 90 days or more past due are on nonaccrual status. |
Loans and Commitments - Trouble
Loans and Commitments - Troubled Debt Restructured Loans (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Financing Receivable, Modifications [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 24,631,026 | $ 24,356,330 |
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage | 100.00% | 100.00% |
Unadvanced commitments | $ 0 | |
Nonperforming TDR loans | ||
Financing Receivable, Modifications [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 0 | 0 |
Performing TDR loans | ||
Financing Receivable, Modifications [Line Items] | ||
Other Commitment | 6,000 | |
Loans outstanding | $ 12,973 | $ 13,173 |
Performing TDR Loans As Percentage of Total Loans | 0.05% | 0.05% |
Total TDR loans | ||
Financing Receivable, Modifications [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 12,973 | $ 13,173 |
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage | 0.05% | 0.05% |
CFC | ||
Financing Receivable, Modifications [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 23,619,606 | $ 23,387,987 |
CFC | Performing TDR loans | ||
Financing Receivable, Modifications [Line Items] | ||
Loans outstanding | $ 6,507 | $ 6,581 |
Performing TDR Loans As Percentage of Total Loans | 0.03% | 0.02% |
RTFC | ||
Financing Receivable, Modifications [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 6,466 | $ 6,592 |
Loans and Leases Receivable, Net of Deferred Income | 352,509 | 354,419 |
RTFC | Performing TDR loans | ||
Financing Receivable, Modifications [Line Items] | ||
Loans outstanding | $ 6,466 | $ 6,592 |
Performing TDR Loans As Percentage of Total Loans | 0.02% | 0.03% |
Loans and Commitments Impaired
Loans and Commitments Impaired Loans - Recorded Investment and Allowance (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, Related Allowance | $ 1,360 | $ 1,640 |
Impaired Financing Receivable, Recorded Investment | 12,973 | 13,173 |
CFC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 6,507 | 6,581 |
RTFC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6,466 | 6,592 |
Impaired Financing Receivable, Related Allowance | $ 1,360 | $ 1,640 |
Impaired Loans - Average Record
Impaired Loans - Average Recorded Investment and Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Average recorded investment | ||
Total impaired loans | $ 13,122 | $ 16,017 |
Interest income recognized | ||
Interest impaired loans | 226 | 218 |
CFC | ||
Average recorded investment | ||
Total impaired loans | 6,574 | 6,671 |
Interest income recognized | ||
Interest impaired loans | 144 | 130 |
RTFC | ||
Average recorded investment | ||
Total impaired loans | 6,548 | 9,346 |
Interest income recognized | ||
Interest impaired loans | $ 82 | $ 88 |
Loans and Commitments - Interna
Loans and Commitments - Internal Risk Rating (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | $ 24,631,026 | $ 24,356,330 |
CFC | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 23,619,606 | 23,387,987 |
CFC | Distribution | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 19,069,531 | 18,825,366 |
CFC | Power supply | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 4,490,366 | 4,504,791 |
CFC | Statewide and associate | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 59,709 | 57,830 |
NCSC | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 658,911 | 613,924 |
RTFC | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 352,509 | 354,419 |
Pass | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 24,513,991 | 24,236,791 |
Pass | CFC | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 23,510,226 | 23,277,255 |
Pass | CFC | Distribution | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 18,961,354 | 18,715,810 |
Pass | CFC | Power supply | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 4,490,366 | 4,504,791 |
Pass | CFC | Statewide and associate | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 58,506 | 56,654 |
Pass | NCSC | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 657,722 | 612,592 |
Pass | RTFC | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 346,043 | 346,944 |
Special Mention | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 110,569 | 112,064 |
Special Mention | CFC | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 109,380 | 110,732 |
Special Mention | CFC | Distribution | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 108,177 | 109,556 |
Special Mention | CFC | Statewide and associate | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 1,203 | 1,176 |
Special Mention | NCSC | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 1,189 | 1,332 |
Substandard | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 6,466 | 7,475 |
Substandard | RTFC | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | 6,466 | 7,475 |
Doubtful | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | $ 0 | 0 |
Doubtful | RTFC | ||
Credit Quality | ||
Loans and Leases Receivable, Net of Deferred Income | $ 0 |
Loans and Commitments - Allowan
Loans and Commitments - Allowance for Loan Losses Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2017 | Aug. 31, 2016 | May 31, 2017 | May 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | $ 37,078 | $ 33,120 | $ 37,376 | $ 33,258 |
Provision for Loan and Lease Losses | (298) | 1,928 | ||
Allowance for Loan and Lease Losses, Write-offs | (2,119) | |||
Financing Receivable, Allowance for Credit Losses, Recovery | 53 | |||
CFC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | 29,521 | 25,062 | 29,499 | 24,559 |
Provision for Loan and Lease Losses | 22 | 450 | ||
Allowance for Loan and Lease Losses, Write-offs | 0 | |||
Financing Receivable, Allowance for Credit Losses, Recovery | 53 | |||
NCSC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | 2,736 | 3,281 | 2,910 | 3,134 |
Provision for Loan and Lease Losses | (174) | 147 | ||
Allowance for Loan and Lease Losses, Write-offs | 0 | |||
RTFC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | 4,821 | 4,777 | $ 4,967 | $ 5,565 |
Provision for Loan and Lease Losses | $ (146) | 1,331 | ||
Allowance for Loan and Lease Losses, Write-offs | $ 2,119 |
Loans and Commitments - Allow50
Loans and Commitments - Allowance for Loan Losses and Recorded Investments (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | Aug. 31, 2016 | May 31, 2016 | |
Ending balance of the allowance: | |||||
Collectively evaluated | $ 35,718 | $ 35,736 | |||
Individually evaluated | 1,360 | 1,640 | |||
Total ending balance of the allowance | 37,078 | 37,376 | $ 33,120 | $ 33,258 | |
Recorded investment in loans: | |||||
Collectively evaluated | 24,618,053 | 24,343,157 | |||
Individually evaluated | 12,973 | 13,173 | |||
Loans and Leases Receivable, Net of Deferred Income | 24,631,026 | 24,356,330 | |||
Loans and Leases Receivable, Net Amount | [1] | 24,593,948 | 24,318,954 | ||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11,051 | 10,714 | |||
CFC | |||||
Ending balance of the allowance: | |||||
Collectively evaluated | 29,521 | 29,499 | |||
Individually evaluated | 0 | ||||
Total ending balance of the allowance | 29,521 | 29,499 | 25,062 | 24,559 | |
Recorded investment in loans: | |||||
Collectively evaluated | 23,613,099 | 23,381,406 | |||
Individually evaluated | 6,507 | 6,581 | |||
Loans and Leases Receivable, Net of Deferred Income | 23,619,606 | 23,387,987 | |||
Loans and Leases Receivable, Net Amount | [1] | 23,590,085 | 23,358,488 | ||
NCSC | |||||
Ending balance of the allowance: | |||||
Collectively evaluated | 2,736 | 2,910 | |||
Individually evaluated | 0 | 0 | |||
Total ending balance of the allowance | 2,736 | 2,910 | 3,281 | 3,134 | |
Recorded investment in loans: | |||||
Collectively evaluated | 658,911 | 613,924 | |||
Individually evaluated | 0 | 0 | |||
Loans and Leases Receivable, Net of Deferred Income | 658,911 | 613,924 | |||
Loans and Leases Receivable, Net Amount | [1] | 656,175 | 611,014 | ||
RTFC | |||||
Ending balance of the allowance: | |||||
Collectively evaluated | 3,461 | 3,327 | |||
Individually evaluated | 1,360 | 1,640 | |||
Total ending balance of the allowance | 4,821 | 4,967 | $ 4,777 | $ 5,565 | |
Recorded investment in loans: | |||||
Collectively evaluated | 346,043 | 347,827 | |||
Individually evaluated | 6,466 | 6,592 | |||
Loans and Leases Receivable, Net of Deferred Income | 352,509 | 354,419 | |||
Loans and Leases Receivable, Net Amount | [1] | $ 347,688 | $ 349,452 | ||
[1] | The tables below present, by company, the components of our allowance for loan losses and the recorded investment of the related loans as of August 31, 2017 and May 31, 2017. August 31, 2017(Dollars in thousands) CFC NCSC RTFC TotalAllowance by company: Collectively evaluated loans $29,521 $2,736 $3,461 $35,718Individually evaluated loans — — 1,360 1,360Total ending balance of the allowance $29,521 $2,736 $4,821 $37,078 Recorded investment in loans: Collectively evaluated loans $23,613,099 $658,911 $346,043 $24,618,053Individually evaluated loans 6,507 — 6,466 12,973Total recorded investment in loans $23,619,606 $658,911 $352,509 $24,631,026 Loans to members, net (1) $23,590,085 $656,175 $347,688 $24,593,948 May 31, 2017(Dollars in thousands) CFC NCSC RTFC TotalAllowance by company: Collectively evaluated loans $29,499 $2,910 $3,327 $35,736Individually evaluated loans — — 1,640 1,640Total ending balance of the allowance $29,499 $2,910 $4,967 $37,376 Recorded investment in loans: Collectively evaluated loans $23,381,406 $613,924 $347,827 $24,343,157Individually evaluated loans 6,581 — 6,592 13,173Total recorded investment in loans $23,387,987 $613,924 $354,419 $24,356,330 Loans to members, net(1) $23,358,488 $611,014 $349,452 $24,318,954____________________________ (1) Excludes unamortized deferred loan origination costs $11 million as of both August 31, 2017 and May 31, 2017. |
Loans and Commitments - Additio
Loans and Commitments - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Aug. 31, 2017 | Aug. 31, 2016 | May 31, 2017 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans Receivable Cost of Loans Sold | $ 70,000,000 | $ 20,000,000 | ||
Loans and Leases Receivable, Net of Deferred Income | 24,631,026,000 | $ 24,356,330,000 | ||
Loans and Leases Receivable, Commitments to Purchase or Sell | $ 0 | |||
Unadvanced commitments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable Unadvanced Commitments Period Maximum | 5 years | |||
Unadvanced commitments | [1] | $ 12,761,890,000 | 12,574,974,000 | |
Unadvanced commitments not subject to material adverse change clauses | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable Unadvanced Commitments Period Maximum | 5 years | |||
Unadvanced commitments | $ 2,787,848,000 | 2,602,000,000 | ||
Commitments to Extend Credit Subject to Material Adverse Change Clause | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | 9,974,000,000 | 9,973,000,000 | ||
Loans Guaranteed by Farmer Mac | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Net of Deferred Income | 802,000,000 | 843,000,000 | ||
Loans Guaranteed by Rural Utilities Service | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Net of Deferred Income | 166,000,000 | 167,000,000 | ||
Nonperforming TDR loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 0 | $ 31,000 | ||
Performing line of credit for Troubled Debt Restructuring Borrower [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | 6,000,000 | |||
Loans and Leases Receivable, Net of Deferred Income | 400,000 | 500,000 | ||
Nonperforming Financial Instruments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | ||
CFC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Net of Deferred Income | 23,619,606,000 | 23,387,987,000 | ||
CFC | Unadvanced commitments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | [1] | $ 11,864,380,000 | $ 11,715,665,000 | |
[1] | The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all long-term unadvanced loan commitments are reported as variable-rate. However, the borrower may select either a fixed or a variable rate when an advance on a commitment is made. |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Details) - USD ($) | Aug. 31, 2017 | May 31, 2017 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 3,074,660,000 | $ 3,342,900,000 |
Short Term Debt as Percentage of Debt Outstanding | 13.00% | 14.00% |
Revolving credit agreements | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 0 | $ 0 |
Maximum borrowing capacity | 3,165,000,000 | $ 3,165,000,000 |
CFC | Revolving credit agreements | ||
Short-term Debt [Line Items] | ||
Letter of Credit Maximum Amount Available | $ 300,000,000 |
Short-Term Borrowings - Commitm
Short-Term Borrowings - Commitments under Revolving Credit Agreements (Details) - Revolving credit agreements - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2017 | May 31, 2017 | ||
Revolving Credit Agreements | |||
Maximum borrowing capacity | $ 3,165,000 | $ 3,165,000 | |
Letters of credit outstanding | 1,000 | 1,000 | |
Total available | 3,164,000 | 3,164,000 | |
Three Year Agreement | |||
Revolving Credit Agreements | |||
Maximum borrowing capacity | 1,533,000 | 1,533,000 | |
Total available | $ 1,533,000 | $ 1,533,000 | |
Debt Instrument, Maturity Date | Nov. 19, 2019 | ||
Line of Credit Facility Commitment Fee Percentage (percent) | [1] | 0.075% | 0.075% |
Five Year Agreement | |||
Revolving Credit Agreements | |||
Maximum borrowing capacity | $ 1,632,000 | $ 1,632,000 | |
Letters of credit outstanding | 1,436 | 1,000 | |
Total available | $ 1,631,000 | $ 1,631,000 | |
Debt Instrument, Maturity Date | Nov. 19, 2021 | ||
Line of Credit Facility Commitment Fee Percentage (percent) | [1] | 0.10% | 0.10% |
[1] | Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. |
Long-Term Debt Outstanding (Det
Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Long-term debt | ||
Long-term debt | $ 18,428,819 | $ 17,955,594 |
Medium-term notes sold through dealers | ||
Long-term debt | ||
Long-term Debt, Gross | 2,785,389 | 2,386,956 |
Medium-term notes sold to members | ||
Long-term debt | ||
Long-term Debt, Gross | 418,617 | 422,779 |
Unsecured Medium Term Notes | ||
Long-term debt | ||
Unamortized discount | (379) | (382) |
Debt issuance costs | (24,037) | (21,903) |
Long-term Debt, Gross | 3,204,006 | 2,809,735 |
Long-term debt | 3,179,590 | 2,787,450 |
Other Unsecured Notes Payable | ||
Long-term debt | ||
Unamortized discount | (352) | (379) |
Debt issuance costs | (86) | (94) |
Long-term Debt, Gross | 22,799 | 22,799 |
Unsecured notes payable | ||
Long-term debt | ||
Long-term debt | 22,361 | 22,326 |
Unsecured Debt | ||
Long-term debt | ||
Long-term debt | 3,201,951 | 2,809,776 |
Collateral trust bonds | ||
Long-term debt | ||
Unamortized discount | (255,916) | (258,329) |
Debt issuance costs | (28,667) | (30,334) |
Long-term Debt, Gross | 7,922,711 | 7,922,711 |
Long-term debt | 7,638,128 | 7,634,048 |
Guaranteed Underwriter Program Notes Payable | ||
Long-term debt | ||
Debt issuance costs | (257) | (264) |
Long-term Debt, Gross | 5,073,613 | 4,985,748 |
Secured Debt | 5,073,356 | 4,985,484 |
Farmer Mac notes payable | ||
Long-term debt | ||
Long-term Debt, Gross | 2,502,467 | 2,513,389 |
Other Secured Notes Payable | ||
Long-term debt | ||
Debt issuance costs | (297) | (317) |
Long-term Debt, Gross | 13,214 | 13,214 |
Long-term debt | 12,917 | 12,897 |
Notes payable | ||
Long-term debt | ||
Long-term debt | 7,588,740 | 7,511,770 |
Secured Debt | ||
Long-term debt | ||
Long-term debt | 15,226,868 | 15,145,818 |
Long-Term Debt | ||
Long-term debt | ||
Long-term debt | $ 18,428,819 | $ 17,955,594 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2017 | May 31, 2017 | |
Long-term debt | ||
Long-term debt | $ 18,428,819,000 | $ 17,955,594,000 |
Federal Agricultural Mortgage Corporation | ||
Long-term debt | ||
Maximum borrowing capacity | $ 4,800,000,000 | |
Notes payable | ||
Long-term debt | ||
Debt Instrument Fee Percentage | 0.30% | |
Long-term debt | $ 7,588,740,000 | 7,511,770,000 |
Guaranteed Underwriter Program Notes Payable | ||
Long-term debt | ||
Secured Debt | 5,073,356,000 | 4,985,484,000 |
Available under committed loan facilities | 625,000,000 | |
Long-term Debt, Gross | 5,073,613,000 | 4,985,748,000 |
Farmer Mac notes payable | ||
Long-term debt | ||
Long-term Debt, Gross | 2,502,467,000 | 2,513,389,000 |
Collateral trust bonds | ||
Long-term debt | ||
Long-term Debt, Gross | 7,922,711,000 | 7,922,711,000 |
Long-term debt | 7,638,128,000 | 7,634,048,000 |
Federal Agricultural Mortgage Corporation First Revolving Note Purchase Agreement [Member] | Federal Agricultural Mortgage Corporation | ||
Long-term debt | ||
Maximum borrowing capacity | 4,500,000,000 | |
Long-term Debt, Gross | 2,502,000,000 | 2,513,000,000 |
Federal Agricultural Mortgage Corporation Second Revolving Note Purchase Agreement [Member] | Federal Agricultural Mortgage Corporation | ||
Long-term debt | ||
Maximum borrowing capacity | 300,000,000 | |
Long-term debt | $ 0 | $ 0 |
Subordinated Deferrable Debt Su
Subordinated Deferrable Debt Subordinated Deferrable Debt Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Subordinated Deferrable Debt | ||
Subordinated Debt | $ 742,307 | $ 742,274 |
4.75 percent due 2043 | ||
Subordinated Deferrable Debt | ||
Subordinated Debt | 400,000 | 400,000 |
5.25 Percent Due 2046 | ||
Subordinated Deferrable Debt | ||
Subordinated Debt | 350,000 | 350,000 |
Subordinated Debt | ||
Subordinated Deferrable Debt | ||
Debt issuance costs | $ 7,693 | $ 7,726 |
Derivative Notional Amounts and
Derivative Notional Amounts and Weighted-Average Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Aug. 31, 2017 | May 31, 2017 | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 11,076,017 | $ 10,791,396 |
Pay-fixed swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 7,090,088 | $ 6,807,013 |
Derivative Weighted Average Interest Rate Paid Percentage | 2.84% | 2.85% |
Derivative Weighted Average Interest Rate Received Percentage | 1.31% | 1.16% |
Receive fixed swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 3,849,000 | $ 3,699,000 |
Derivative Weighted Average Interest Rate Paid Percentage | 1.89% | 1.72% |
Derivative Weighted Average Interest Rate Received Percentage | 2.63% | 2.64% |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 10,939,088 | $ 10,506,013 |
Derivative Weighted Average Interest Rate Paid Percentage | 2.50% | 2.46% |
Derivative Weighted Average Interest Rate Received Percentage | 1.77% | 1.68% |
Forward Contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 136,929 | $ 285,383 |
Derivatives - Balance Sheet Imp
Derivatives - Balance Sheet Impact (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets | $ 40,466 | $ 49,481 |
Derivative liabilities | 402,423 | 385,337 |
Derivative Asset, Notional Amount | 3,577,988 | 3,754,120 |
Derivative Liability, Notional Amount | 7,498,029 | 7,037,276 |
Derivative Assets (Liabilities), at Fair Value, Net | (361,957) | (335,856) |
Derivative, Notional Amount | $ 11,076,017 | $ 10,791,396 |
Derivatives Offsetting (Details
Derivatives Offsetting (Details) - Interest rate swaps - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 40,466 | $ 49,481 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 40,466 | 49,481 |
Derivative, Collateral, Obligation to Return Securities | 40,466 | 49,481 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 402,423 | 385,337 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 402,423 | 385,337 |
Derivative, Collateral, Right to Reclaim Securities | 40,466 | 49,481 |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 361,957 | $ 335,856 |
Derivative Financial Instrume60
Derivative Financial Instruments Derivatives - Income Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2017 | Aug. 31, 2016 | |
Derivative [Line Items] | ||
Gain (Loss) on Sale of Derivatives | $ (20,222) | $ (23,390) |
Unrealized Gain (Loss) on Derivatives | (25,976) | (164,903) |
Derivative losses | (46,198) | (188,293) |
Interest rate swaps | ||
Derivative [Line Items] | ||
Gain (Loss) on Sale of Derivatives | (23,390) | |
Unrealized Gain (Loss) on Derivatives | (164,903) | |
Derivative losses | $ (46,198) | $ (188,293) |
Derivatives - Rating Triggers (
Derivatives - Rating Triggers (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | |
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 11,076,017 | $ 10,791,396 | |
Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 8,099,076 | ||
Assets Needed for Immediate Settlement, Aggregate Fair Value | (263,918) | ||
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | ||
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (263,918) | ||
Moody's, A3 Rating Standard Poor's A- rating | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | [1] | 59,165 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | [1] | (13,792) | |
Assets Received for Immediate Settlement Aggregate Fair Value | [1] | 0 | |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | [1] | (13,792) | |
Moodys Baa 1 Rating Standard Poor's BBB Plus Rating | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 7,315,942 | ||
Assets Needed for Immediate Settlement, Aggregate Fair Value | (225,976) | ||
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | ||
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (225,976) | ||
Moody's Baa 2 Rating Standard Poor's BBB Rating | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | [2] | 457,136 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | [2] | (1,432) | |
Assets Received for Immediate Settlement Aggregate Fair Value | [2] | 0 | |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | [2] | (1,432) | |
Moodys Baa3 Rating Standard Poor's BB Rating | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | 266,833 | ||
Assets Needed for Immediate Settlement, Aggregate Fair Value | (22,718) | ||
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | ||
Net Asset Needed for Immediate Settlement Aggregate Fair Value | $ (22,718) | ||
[1] | Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. | ||
[2] | Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively. |
Derivative Financial Instrume62
Derivative Financial Instruments - Additional Information (Details) - Interest rate swaps - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Aug. 31, 2017 | May 31, 2017 | |
Derivative [Line Items] | ||
Concentration Risk, Percentage | 22.00% | 23.00% |
Derivative, Net Liability Position, Aggregate Fair Value | $ 263 |
Equity Components (Details)
Equity Components (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | Aug. 31, 2016 | May 31, 2016 |
Equity | ||||
Derivative Forward Value Gain (Loss) | $ (332,525) | $ (507,904) | ||
Prior Years Cumulative Derivative Forward Value and Foreign Currency Adjustments | 26,111 | 175,379 | ||
Total Cumulative Derivative Forward Value and Foreign Currency Adjustments | (358,636) | (332,525) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,061,580 | 1,098,805 | $ 652,856 | $ 817,378 |
Retained equity | 1,020,335 | 1,056,778 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 11,959 | 13,175 | 10,717 | 1,058 |
Stockholders' Equity Attributable to Parent | 1,032,294 | 1,069,953 | ||
Noncontrolling interests | 29,286 | 28,852 | ||
Membership Fees | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 971 | 971 | ||
Cooperative educational fund | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 1,573 | 1,929 | ||
Membership Fees and Educational Fund | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 2,544 | 2,900 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,544 | 2,900 | 2,362 | 2,772 |
Members’ Capital Reserve | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 716,481 | 761,701 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 630,305 | 630,305 | 587,219 | 587,219 |
Patronage Capital Allocated | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 630,305 | 630,305 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 716,481 | 761,701 | 671,724 | 713,853 |
Other unallocated net income (loss) | ||||
Equity | ||||
Retained Earnings before Derivate Forward Value and Foreign Currency Adjustments | 29,641 | (5,603) | ||
Unallocated Net Income (Loss) | ||||
Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (328,995) | $ (338,128) | $ (645,181) | $ (513,610) |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2017 | Aug. 31, 2016 | May 31, 2017 | May 31, 2016 | |
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 11,959 | $ 10,717 | $ 13,175 | $ 1,058 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (1,151) | (11) | ||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Foreclosed Asset | 0 | 9,823 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | 127 | 9,867 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 192 | 197 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1,216) | 9,659 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 10,865 | 7,391 | 12,016 | 7,402 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (1,151) | (11) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1,151) | (11) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 3,510 | 4,290 | 3,702 | 4,487 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 192 | 197 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (192) | (197) | ||
Accumulated Unrealized Losses on Foreclosed Assets | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | (9,823) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | 9,823 | ||
Accumulated Defined Benefit Plans Adjustment, Net Transition Attributable to Parent | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,416) | (964) | $ (2,543) | $ (1,008) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | 127 | 44 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ 127 | $ 44 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2017 | Aug. 31, 2016 | May 31, 2017 | May 31, 2016 | |
Stockholder's Equity [Line Items] | ||||
Stockholders' Equity, Period Increase (Decrease) | $ (37,000) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,061,580 | $ 652,856 | $ 1,098,805 | $ 817,378 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 9,015 | (132,261) | ||
Patronage Refunds | 45,220 | 42,129 | ||
Expected Reclassification from Accumulated Other Comprehensive Income over Next Twelve Months Net of Tax | 1,000 | |||
Patronage Capital Allocated | ||||
Stockholder's Equity [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 716,481 | 671,724 | 761,701 | 713,853 |
Patronage Refunds | 45,220 | 42,129 | ||
Members’ Capital Reserve | ||||
Stockholder's Equity [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 630,305 | $ 587,219 | $ 630,305 | $ 587,219 |
CFC | Patronage Capital Allocated | ||||
Stockholder's Equity [Line Items] | ||||
Patronage Refunds | 45,220 | |||
Retained Patronage Allocations | $ 90,000 | |||
Patronage Refunds Percentage of Allocation of Net Earnings | 50.00% | |||
CFC | Cooperative educational fund | ||||
Stockholder's Equity [Line Items] | ||||
Retained Patronage Allocations | $ 1,000 | |||
CFC | Members’ Capital Reserve | ||||
Stockholder's Equity [Line Items] | ||||
Retained Patronage Allocations | $ 43,000 |
Guarantees Outstanding (Details
Guarantees Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Guarantees | ||
Guarantor obligations | $ 824,264 | $ 889,617 |
CFC | ||
Guarantees | ||
Guarantor obligations | 810,809 | 874,920 |
CFC | Distribution | ||
Guarantees | ||
Guarantor obligations | 130,684 | 126,188 |
CFC | Power supply | ||
Guarantees | ||
Guarantor obligations | 675,124 | 743,678 |
CFC | Statewide and associate | ||
Guarantees | ||
Guarantor obligations | 5,001 | 5,054 |
NCSC | ||
Guarantees | ||
Guarantor obligations | 11,881 | 13,123 |
RTFC | ||
Guarantees | ||
Guarantor obligations | 1,574 | 1,574 |
Long-term tax-exempt bonds | ||
Guarantees | ||
Guarantor obligations | 394,090 | 468,145 |
Letters of credit | ||
Guarantees | ||
Guarantor obligations | 316,983 | 307,321 |
Other guarantees | ||
Guarantees | ||
Guarantor obligations | $ 113,191 | $ 114,151 |
Guarantees - Additional Informa
Guarantees - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2017 | May 31, 2017 | |
Guarantees | ||
Guarantor obligations | $ 824,264 | $ 889,617 |
Guarantee Obligations Unsecured | $ 307,000 | $ 297,000 |
Guarantee Obligations Unsecured Commitment as Percentage of Total Commitment | 37.00% | 33.00% |
Guarantee Liability Recorded | $ 14,000 | $ 15,000 |
Guaranty Liabilities Contingent | 1,000 | 1,000 |
Guaranty Liabilities | 13,000 | 14,000 |
Long-term variable-rate loans | ||
Guarantees | ||
Guarantee Obligations Liquidity Provided to Member Carrying Value | 402,000 | |
Financial Standby Letter of Credit | Adjustable and Floating Rate Tax Exempt Bonds | ||
Guarantees | ||
Guarantor obligations | 76,000 | |
Long-term tax-exempt bonds | ||
Guarantees | ||
Guarantor obligations | 394,090 | 468,145 |
Financial Guarantee | Long-term fixed-rate bonds | ||
Guarantees | ||
Guarantor obligations | 68,000 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 98,000 | |
Financial Guarantee | Long-term variable-rate loans | ||
Guarantees | ||
Guarantor obligations | 326,000 | 400,000 |
Letters of credit | ||
Guarantees | ||
Guarantor obligations | 316,983 | 307,321 |
Guarantee Obligations Secured | 123,000 | |
Letters of credit | Adjustable and Floating Rate Tax Exempt Bonds | ||
Guarantees | ||
Guarantor obligations | 76,000 | |
Master Letter of Credit | ||
Guarantees | ||
Letter of Credit Facility Maximum Additional Amount Potentially Required to be Issued | 65,000 | |
Other guarantees | ||
Guarantees | ||
Guarantor obligations | 113,191 | $ 114,151 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 114,000 |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 | Aug. 31, 2016 | May 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 269,971 | $ 166,615 | $ 290,651 | $ 204,540 |
Cash and Cash Equivalents, Fair Value Disclosure | 269,971 | 166,615 | ||
Restricted cash | 22,690 | 21,806 | ||
Time deposits | 126,000 | 226,000 | ||
Time Deposits, At Fair Value | 126,000 | 226,000 | ||
Investment securities available for sale, at fair value | 91,404 | 92,554 | ||
Investments, Fair Value Disclosure | 91,404 | 92,554 | ||
Deferred Compensation Plan Assets | 4,912 | 4,693 | ||
Loans and Leases Receivable Commercial, Net of Allowance | 24,604,999 | 24,329,668 | $ 23,533,105 | |
Loans Receivable, Fair Value Disclosure | 24,518,326 | 24,182,724 | ||
Accrued interest receivable | 111,915 | 111,493 | ||
Debt service reserve restricted funds | 17,151 | 17,151 | ||
Derivative assets | 40,466 | 49,481 | ||
Short-term borrowings | 3,074,660 | 3,342,900 | ||
Short-term Debt, Fair Value | 3,074,549 | 3,342,990 | ||
Long-term debt | 18,428,819 | 17,955,594 | ||
Long-term Debt, Fair Value | 19,263,452 | 18,744,331 | ||
Accrued interest payable | 195,472 | 137,476 | ||
Guaranty Liabilities Contingent and Noncontingent | 14,121 | 15,241 | ||
Guarantees, Fair Value Disclosure | 14,642 | 16,204 | ||
Derivative liabilities | 402,423 | 385,337 | ||
Subordinated deferrable debt | 742,307 | 742,274 | ||
Subordinated Debt Obligations, Fair Value Disclosure | 801,900 | 788,079 | ||
Members Subordinated Certificates | 1,418,207 | 1,419,025 | ||
Members Subordinated Certificates, At Fair Value | 1,418,230 | 1,419,048 | ||
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 269,971 | 166,615 | ||
Restricted cash | 22,690 | 21,806 | ||
Investment securities available for sale, at fair value | 91,404 | 92,554 | ||
Investments, Fair Value Disclosure | 91,404 | 92,554 | ||
Deferred Compensation Plan Assets | 4,912 | 4,693 | ||
Accrued interest receivable | 0 | |||
Debt service reserve restricted funds | 17,151 | 17,151 | ||
Short-term Debt, Fair Value | 1,095,624 | 1,527,990 | ||
Accrued interest payable | 0 | |||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Time Deposits, At Fair Value | 126,000 | 226,000 | ||
Accrued interest receivable | 111,915 | 111,493 | ||
Derivative assets | 40,466 | 49,481 | ||
Short-term Debt, Fair Value | 1,978,925 | 1,815,000 | ||
Long-term Debt, Fair Value | 11,632,285 | 11,215,290 | ||
Accrued interest payable | 195,472 | 137,476 | ||
Derivative liabilities | 402,423 | 385,337 | ||
Subordinated Debt Obligations, Fair Value Disclosure | 801,900 | 788,079 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans Receivable, Fair Value Disclosure | 24,518,326 | 24,182,724 | ||
Long-term Debt, Fair Value | 7,631,167 | 7,529,041 | ||
Guarantees, Fair Value Disclosure | 14,642 | 16,204 | ||
Members Subordinated Certificates, At Fair Value | $ 1,418,230 | $ 1,419,048 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Aug. 31, 2017 | May 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale, at fair value | $ 91,404 | $ 92,554 |
Investments, Fair Value Disclosure | 91,404 | 92,554 |
Deferred Compensation Plan Assets | 4,912 | 4,693 |
Derivative assets | 40,466 | 49,481 |
Derivative liabilities | 402,423 | 385,337 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale, at fair value | 91,404 | 92,554 |
Investments, Fair Value Disclosure | 91,404 | 92,554 |
Deferred Compensation Plan Assets | 4,912 | 4,693 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 40,466 | 49,481 |
Derivative liabilities | 402,423 | 385,337 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, Fair Value Disclosure | 91,404 | 92,554 |
Deferred Compensation Plan Assets | 4,912 | 4,693 |
Derivative assets | 40,466 | 49,481 |
Derivative liabilities | $ 402,423 | $ 385,337 |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring Fair Value (Details) - Non-recurring basis - Level 3 - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2017 | Aug. 31, 2016 | May 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable Recorded Investment Nonperforming Status Net of Reserve Fair Value Disclosure | $ 0 | $ 0 | |
Fair Value Measurement with Unobservable Inputs Reconciliation Asset Impaired Financing Receivable Nonperforming Status Gain (Loss) Included in Earnings | $ 0 | $ (116) |
Segment Information - Segment R
Segment Information - Segment Results and Total Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Aug. 31, 2017 | Aug. 31, 2016 | May 31, 2017 | May 31, 2016 | ||
Statement of operations: | |||||
Interest income | $ 265,915 | $ 256,835 | |||
Interest expense | [1],[2] | (192,731) | (181,080) | ||
Net interest income | 73,184 | 75,755 | |||
Provision for loan losses | 298 | (1,928) | |||
Net interest income after benefit (provision) for loan losses | 73,482 | 73,827 | |||
Non-interest income: | |||||
Fee and other income | 3,945 | 4,530 | |||
Gain (Loss) on Sale of Derivatives | (20,222) | (23,390) | |||
Unrealized Gain (Loss) on Derivatives | 25,976 | 164,903 | |||
Derivative losses | (46,198) | (188,293) | |||
Results of operations of foreclosed assets | (24) | (1,112) | |||
Total non-interest income | (42,277) | (184,875) | |||
Non-interest expense: | |||||
General and administrative expenses | (21,636) | (20,859) | |||
Other non-interest expense | (522) | (443) | |||
Total non-interest expense | (22,158) | (21,302) | |||
Income (loss) before income taxes | 9,047 | (132,350) | |||
Income tax (expense) benefit | (32) | 89 | |||
Net income (loss ) | 9,015 | (132,261) | |||
Assets: | |||||
Loans and Leases Receivable, Net of Deferred Income | 24,631,026 | $ 24,356,330 | |||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11,051 | 10,714 | |||
Loans Receivable, Gross, Commercial and Industrial | 24,642,077 | 23,566,225 | 24,367,044 | ||
Less: Allowance for loan losses | (37,078) | (33,120) | (37,376) | $ (33,258) | |
Loans to members, net | 24,604,999 | 23,533,105 | 24,329,668 | ||
Other assets | 875,527 | 1,144,510 | |||
Total assets | 25,480,526 | 24,677,615 | $ 25,205,692 | ||
CFC | |||||
Statement of operations: | |||||
Interest income | 263,411 | 254,017 | |||
Interest expense | (192,505) | (180,832) | |||
Net interest income | 70,906 | 73,185 | |||
Provision for loan losses | 298 | (1,928) | |||
Net interest income after benefit (provision) for loan losses | 71,204 | 71,257 | |||
Non-interest income: | |||||
Fee and other income | 3,888 | 4,328 | |||
Gain (Loss) on Sale of Derivatives | (19,564) | (22,610) | |||
Unrealized Gain (Loss) on Derivatives | 26,111 | 164,212 | |||
Derivative losses | (45,675) | (186,822) | |||
Results of operations of foreclosed assets | 24 | 1,112 | |||
Total non-interest income | (41,811) | (183,606) | |||
Non-interest expense: | |||||
General and administrative expenses | (19,738) | (18,779) | |||
Other non-interest expense | (522) | (443) | |||
Total non-interest expense | (20,260) | (19,222) | |||
Income (loss) before income taxes | 9,133 | (131,571) | |||
Net income (loss ) | 9,133 | (131,571) | |||
Assets: | |||||
Loans Receivable, Gross, Commercial and Industrial | 24,606,635 | 23,529,310 | |||
Less: Allowance for loan losses | (37,078) | (33,120) | |||
Loans to members, net | 24,569,557 | 23,496,190 | |||
Other assets | 864,334 | 1,130,356 | |||
Total assets | 25,433,891 | 24,626,546 | |||
Other | |||||
Statement of operations: | |||||
Interest income | 10,949 | 11,222 | |||
Interest expense | (8,671) | (8,676) | |||
Net interest income | 2,278 | 2,546 | |||
Provision for loan losses | 0 | ||||
Net interest income after benefit (provision) for loan losses | 2,278 | 2,546 | |||
Non-interest income: | |||||
Fee and other income | 400 | 897 | |||
Gain (Loss) on Sale of Derivatives | (658) | (780) | |||
Unrealized Gain (Loss) on Derivatives | 135 | (691) | |||
Derivative losses | (523) | (1,471) | |||
Total non-interest income | (123) | (574) | |||
Non-interest expense: | |||||
General and administrative expenses | (1,898) | (2,080) | |||
Other non-interest expense | (343) | (671) | |||
Total non-interest expense | (2,241) | (2,751) | |||
Income (loss) before income taxes | (86) | (779) | |||
Income tax (expense) benefit | (32) | 89 | |||
Net income (loss ) | (118) | (690) | |||
Assets: | |||||
Loans Receivable, Gross, Commercial and Industrial | 1,011,420 | 1,077,238 | |||
Loans to members, net | 1,011,420 | 1,077,238 | |||
Other assets | 107,146 | 114,968 | |||
Total assets | 1,118,566 | 1,192,206 | |||
Elimination | |||||
Statement of operations: | |||||
Interest income | (8,445) | (8,404) | |||
Interest expense | 8,445 | 8,428 | |||
Net interest income | 0 | 24 | |||
Provision for loan losses | 0 | ||||
Net interest income after benefit (provision) for loan losses | 0 | 24 | |||
Non-interest income: | |||||
Fee and other income | (343) | (695) | |||
Derivative losses | 0 | 0 | |||
Total non-interest income | (343) | (695) | |||
Non-interest expense: | |||||
General and administrative expenses | 0 | 0 | |||
Other non-interest expense | 343 | 671 | |||
Total non-interest expense | 343 | 671 | |||
Assets: | |||||
Loans Receivable, Gross, Commercial and Industrial | (975,978) | (1,040,323) | |||
Loans to members, net | (975,978) | (1,040,323) | |||
Other assets | (95,953) | (100,814) | |||
Total assets | $ (1,071,931) | $ (1,141,137) | |||
[1] | Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized as interest expense immediately as incurred. | ||||
[2] | Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Depending on the nature of the fee, amounts may be deferred and recognized as interest expense ratably over the term of the arrangement or recognized immediately as incurred. |