Document and Entity Information
Document and Entity Information | 3 Months Ended |
Aug. 31, 2019shares | |
Document and Entity Information | |
Entity Registrant Name | NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/ |
Entity Central Index Key | 0000070502 |
Document Type | 10-Q |
Document Period End Date | Aug. 31, 2019 |
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 | 2020 |
Document Fiscal Period Focus | Q1 |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Income Statement [Abstract] | |||
Interest income | $ 290,015 | $ 278,491 | |
Interest expense | [1],[2] | (213,271) | (210,231) |
Net interest income | 76,744 | 68,260 | |
Benefit (provision) for loan losses | (30) | 109 | |
Net interest income after benefit (provision) for loan losses | 76,714 | 68,369 | |
Non-interest income: | |||
Fee and other income | 10,941 | 3,911 | |
Derivative gains (losses) | (395,725) | 7,183 | |
Unrealized gains (losses) on equity securities | 1,620 | (726) | |
Total non-interest income | (383,164) | 10,368 | |
Non-interest expense: | |||
Salaries and employee benefits | (12,942) | (12,682) | |
Other general and administrative expenses | (12,387) | (10,523) | |
Losses on early extinguishment of debt | 0 | (7,100) | |
Other non-interest (expense) income | 7,179 | (394) | |
Total non-interest expense | (18,150) | (30,699) | |
Income (loss) before income taxes | (324,600) | 48,038 | |
Income tax benefit (expense) | 521 | (60) | |
Net income (loss) | (324,079) | 47,978 | |
Less: Net (income) loss attributable to noncontrolling interests | 1,657 | (13) | |
Net income (loss) attributable to CFC | $ (322,422) | $ 47,965 | |
[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. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (324,079) | $ 47,978 |
Other comprehensive income (loss): | ||
Unrealized gains on cash flow hedge | 0 | 24 |
Reclassification of derivative gains to net income | (112) | (119) |
Defined benefit plan adjustments | 145 | 131 |
Other comprehensive income (loss) | 33 | 36 |
Total comprehensive income (loss) | (324,046) | 48,014 |
Less: Total comprehensive (income) loss attributable to noncontrolling interests | 1,657 | (13) |
Total comprehensive income (loss) attributable to CFC | $ (322,389) | $ 48,001 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 231,050 | $ 177,922 |
Restricted cash | 9,138 | 8,282 |
Total cash, cash equivalents and restricted cash | 240,188 | 186,204 |
Investment securities: | ||
Equity securities | 63,922 | 87,533 |
Debt securities held-to-maturity, at amortized cost | 569,575 | 565,444 |
Total investment securities | 633,497 | 652,977 |
Loans to members | 26,299,838 | 25,916,904 |
Less: Allowance for loan losses | (17,565) | (17,535) |
Loans to members, net | 26,282,273 | 25,899,369 |
Accrued interest receivable | 133,119 | 133,605 |
Other receivables | 35,878 | 36,712 |
Fixed assets, net | 121,692 | 120,627 |
Derivative assets | 85,533 | 41,179 |
Other assets | 46,576 | 53,699 |
Total assets | 27,578,756 | 27,124,372 |
Liabilities: | ||
Accrued interest payable | 209,931 | 158,997 |
Debt outstanding: | ||
Short-term borrowings | 4,027,645 | 3,607,726 |
Long-term debt | 19,094,236 | 19,210,793 |
Subordinated deferrable debt | 985,981 | 986,020 |
Members’ subordinated certificates: | ||
Membership subordinated certificates | 630,474 | 630,474 |
Loan and guarantee subordinated certificates | 504,841 | 505,485 |
Member capital securities | 221,170 | 221,170 |
Total members’ subordinated certificates | 1,356,485 | 1,357,129 |
Total debt outstanding | 25,464,347 | 25,161,668 |
Patronage capital retirement payable | 61,102 | 0 |
Deferred income | 55,614 | 57,989 |
Derivative liabilities | 820,872 | 391,724 |
Other liabilities | 48,462 | 50,112 |
Total liabilities | 26,660,328 | 25,820,490 |
CFC equity: | ||
Retained equity | 891,332 | 1,276,882 |
Accumulated other comprehensive income | (114) | (147) |
Total CFC equity | 891,218 | 1,276,735 |
Noncontrolling interests | 27,210 | 27,147 |
Total equity | 918,428 | 1,303,882 |
Total liabilities and equity | $ 27,578,756 | $ 27,124,372 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Non-controlling Interests | Total CFC Equity | Accumulated Other Comprehensive Income (Loss) | CFC Retained Equity | Unallocated Net Income (Loss) | Members’ Capital Reserve | Patronage Capital Allocated | Membership Fees and Educational Fund |
Cumulative effect from adoption of new accounting standard | $ (8,794) | $ 8,794 | $ 8,794 | ||||||
Balance as of June 1, 2018 | $ 1,505,853 | $ 31,520 | $ 1,474,333 | (250) | 1,474,583 | (27,640) | $ 687,785 | $ 811,493 | $ 2,945 |
Balance at May. 31, 2018 | 1,505,853 | 31,520 | 1,474,333 | 8,544 | 1,465,789 | (36,434) | 687,785 | 811,493 | 2,945 |
Net income (loss) | 47,978 | 13 | 47,965 | 47,965 | 47,965 | ||||
Other comprehensive income | 36 | 36 | 36 | ||||||
Patronage capital retirement | (47,507) | (47,507) | (47,507) | 0 | (47,507) | ||||
Other | 216 | 552 | (336) | (336) | (336) | ||||
Balance at Aug. 31, 2018 | 1,506,576 | 32,085 | 1,474,491 | (214) | 1,474,705 | 20,325 | 687,785 | 763,986 | 2,609 |
Balance at May. 31, 2019 | 1,303,882 | 27,147 | 1,276,735 | (147) | 1,276,882 | (345,775) | 759,097 | 860,578 | 2,982 |
Net income (loss) | (324,079) | (1,657) | (322,422) | (322,422) | (322,422) | ||||
Other comprehensive income | 33 | 33 | 33 | 0 | 0 | ||||
Patronage capital retirement | (62,822) | 0 | (62,822) | (62,822) | (62,822) | ||||
Other | 1,414 | 1,720 | (306) | (306) | (306) | ||||
Balance at Aug. 31, 2019 | $ 918,428 | $ 27,210 | $ 891,218 | $ (114) | $ 891,332 | $ (668,197) | $ 759,097 | $ 797,756 | $ 2,676 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (324,079) | $ 47,978 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred loan fees | (2,332) | (2,609) |
Amortization of debt issuance costs and deferred charges | 2,357 | 3,003 |
Amortization of discount on long-term debt | 2,626 | 2,802 |
Amortization of issuance costs for bank revolving lines of credit | 1,268 | 1,328 |
Depreciation and amortization | 2,374 | 2,230 |
Provision (benefit) for loan losses | 30 | (109) |
Loss on early extinguishment of debt | 0 | 7,100 |
Gain on sale of land | (7,713) | 0 |
Unrealized losses on equity securities | (1,620) | 726 |
Derivative forward value (gains) losses | 384,682 | (20,012) |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | 485 | 3,099 |
Accrued interest payable | 50,934 | 56,614 |
Deferred income | (43) | 398 |
Other | (9,160) | (20,818) |
Net cash provided by operating activities | 99,809 | 81,730 |
Cash flows from investing activities: | ||
Advances on loans, net | (382,936) | (3,942) |
Investment in fixed assets | (3,087) | (4,253) |
Proceeds from sale of land | 21,618 | 0 |
Net proceeds from time deposits | 0 | 100,000 |
Proceeds from Sale and Maturity of Debt and Equity Securities, FV-NI, Held-for-investment | 25,000 | 0 |
Purchases of held-to-maturity debt securities | (23,650) | (40,684) |
Proceeds from maturities of held-to-maturity debt securities | 19,533 | 7,339 |
Net cash provided by (used in) investing activities | (343,522) | 58,460 |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings, net | 355,750 | 29,246 |
Proceeds from short-term borrowings with original maturity greater than 90 days | 679,062 | 296,242 |
Repayments of short term-debt with original maturity greater than 90 days | (614,892) | (328,262) |
Proceeds from issuance of long-term debt, net of discount and issuance costs | 94,256 | 349,509 |
Payments for retirement of long-term debt | (215,751) | (395,284) |
Payments made for early extinguishment of debt | 0 | (7,100) |
Payments for issuance costs for subordinated deferrable debt | (84) | 0 |
Proceeds from issuance of members’ subordinated certificates | 1,289 | 471 |
Payments for retirement of members’ subordinated certificates | (1,933) | (2,378) |
Payments for retirement of patronage capital | 0 | (46,956) |
Net cash provided by (used in) financing activities | 297,697 | (104,512) |
Net increase in cash, cash equivalents and restricted cash | 53,984 | 35,678 |
Beginning cash, cash equivalents and restricted cash | 186,204 | 238,824 |
Ending cash, cash equivalents and restricted cash | 240,188 | 274,502 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 155,330 | $ 148,063 |
Summary of Significant Accounti
Summary of Significant Accounting Policies - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
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 systems, generation and transmission (“power supply”) systems and related facilities. CFC also provides its members with credit enhancements in the form of letters of credit and guarantees of debt obligations. As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities. CFC is exempt from federal income taxes. 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”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures during the period. Management’s most significant estimates and assumptions involve determining the allowance for loan losses and the fair value of financial assets and liabilities. Actual results could differ from these estimates. We believe these financial statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results of operations for interim periods are not necessarily indicative of results for the entire fiscal year. Certain reclassifications have been made to prior periods to conform to the current presentation. The accompanying financial statements 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, 2019 (“ 2019 Form 10-K”). Refer to “Note 1—Summary of Significant Accounting Policies” in our 2019 Form 10-K for a discussion of our significant accounting policies. 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 no t have any entities that held foreclosed assets as of August 31, 2019 or May 31, 2019 . All intercompany balances and transactions have been eliminated. National Cooperative Services Corporation (“NCSC”) and Rural Telephone Finance Cooperative (“RTFC”) are VIEs that are required to be consolidated by CFC. NCSC is a taxable member-owned cooperative that may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural,” and for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. RTFC is a taxable Subchapter T cooperative association that provides financing for its rural telecommunications members and their affiliates. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. Restricted Cash Restricted cash, which consists primarily of member funds held in escrow for certain specifically designed cooperative programs, totaled $9 million and $8 million as of August 31, 2019 and May 31, 2019 , respectively. Assets Held for Sale On March 14, 2018, CFC entered into a purchase and sale agreement (“the agreement”), which was subsequently amended, for the sale of a parcel of land, consisting of approximately 28 acres, located in Loudoun County, Virginia. We designated the property, which had a carrying value of $14 million , as held for sale and reclassified it from fixed assets, net to other assets on our consolidated balance sheet. On July 22, 2019, we closed on the sale of the land and received net proceeds of $22 million , resulting in a gain of $8 million on the sale of this property, which is reported in other non-interest income (expense) on our condensed consolidated statements of operations. Interest Income The following table presents interest income, by interest-earning asset category, for the three months ended August 31, 2019 and 2018 . Three Months Ended August 31, (Dollars in thousands) 2019 2018 Interest income by interest-earning asset type: Long-term fixed-rate loans (1) $ 258,478 $ 251,801 Long-term variable-rate loans 9,756 9,381 Line of credit loans 16,033 11,633 TDR loans (2) 206 218 Other income, net (3) (284 ) (325 ) Total loans 284,189 272,708 Cash, time deposits and investment securities 5,826 5,783 Total interest income $ 290,015 $ 278,491 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. (2) Troubled debt restructured (“TDR”) loans. (3) Consists of late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs. Deferred income of $56 million and $58 million as of August 31, 2019 and May 31, 2019 , respectively, consists primarily of deferred loan conversion fees totaling $50 million and $52 million , respectively. Deferred loan conversion fees are recognized in interest income using the effective interest method. Interest Expense The following table presents interest expense, by debt product type, for the three months ended August 31, 2019 and 2018 . Three Months Ended August 31, (Dollars in thousands) 2019 2018 Interest expense by debt product type: (1)(2) Short-term borrowings $ 22,822 $ 19,419 Medium-term notes 32,076 32,410 Collateral trust bonds 65,381 77,705 Guaranteed Underwriter Program notes payable 40,433 35,334 Farmer Mac notes payable 25,074 21,111 Other notes payable 254 322 Subordinated deferrable debt 12,882 9,417 Subordinated certificates 14,349 14,513 Total interest expense $ 213,271 $ 210,231 ____________________________ (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. Recent Accounting Changes and Other Developments Accounting Standards Adopted in Fiscal Year 2020 Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Acti vities, which expands the types of risk management strategies that qualify for hedge accounting treatment to more closely align the results of hedge accounting with the economics of certain risk management activities and simplifies certain hedge documentation and assessment requirement. It also eliminates the concept of separately recording hedge ineffectiveness and expands disclosure requirements. 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. We adopted this guidance on June 1, 2019. Hedge accounting is elective, and we currently apply hedge accounting on a limited basis, specifically when we enter into treasury rate lock agreements. The adoption of this guidance did not have an impact on our consolidated financial statements or cash flows. If we continue to elect not to apply hedge accounting to our interest rate swaps, the guidance will not have an impact on our consolidated financial statements or cash flows. Receivables—Nonrefundable Fees and Other Cost In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs, which shortens the amortization period for the premium on certain callable debt securities to the earliest call date rather the maturity date. The guidance is applicable to any individual debt security, purchased at a premium, with an explicit and noncontingent call feature with a fixed price on a preset date. The guidance does not impact the accounting for purchased callable debt securities held at a discount. The guidance is effective for public entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We adopted this guidance on June 1, 2019. The adoption of this guidance did not have a material impact on our consolidated financial statements or cash flows. Leases In February 2016, the FASB issued ASU 2016-02, Leases, which provides new guidance that is intended to improve financial reporting about leasing transactions. The new guidance requires the recognition of a right-of use asset and lease liability on the consolidated balance sheet by lessees for those leases classified as operating leases under previous guidance. It also requires new disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. We adopted this guidance on June 1, 2019. The adoption of this guidance did not have a material impact on our consolidated financial statements or cash flows. Accounting Standards Issued But Not Yet Adopted Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The guidance is effective for public entities for fiscal years beginning after December 15, 2019, 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, 2020. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements or cash flows. 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 replaces the existing incurred credit loss model and establishes a single credit loss framework based on a current expected credit loss model for financial assets carried at amortized cost, including loans and held-to- maturity debt securities. The current expected loss model requires an entity to estimate credit losses expected over the life of the credit exposure upon initial recognition of that exposure when the financial asset is originated or acquired, which will generally result in earlier recognition of credit losses. The guidance also amends the other-than-temporary model for available-for-sale debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security. The new guidance also requires expanded credit quality disclosures. The new guidance is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. This guidance is effective for us on June 1, 2020. While early adoption is permitted, we do not expect to elect that option. We are continuing to evaluate the impact of the guidance on our consolidated financial statements, including assessing and evaluating assumptions and models to estimate losses. Upon adoption of the guidance on June 1, 2020, we will be required to record a cumulative effect adjustment to retained earnings for the impact as of the date of adoption. The impact will depend on our portfolio composition and credit quality at the date of adoption, as well as forecasts at that time. |
Variable Interest Entities - (N
Variable Interest Entities - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
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 with each company, CFC manages the business operations of NCSC and RTFC. CFC also unconditionally guarantees full indemnification for any loan losses of NCSC and RTFC pursuant to guarantee agreements with each company. CFC earns management and guarantee fees from its agreements with NCSC and RTFC. NCSC and RTFC creditors have no recourse against CFC in the event of a default by NCSC and RTFC, unless there is a guarantee agreement under which CFC has guaranteed NCSC or RTFC debt obligations to a third party. The following table provides information on incremental consolidated assets and liabilities of VIEs included in CFC’s condensed consolidated financial statements, after intercompany eliminations, as of August 31, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 Total loans outstanding $ 1,048,892 $ 1,087,988 Other assets 10,074 10,963 Total assets $ 1,058,966 $ 1,098,951 Long-term debt $ 6,000 $ 6,000 Other liabilities 36,878 33,385 Total liabilities $ 42,878 $ 39,385 The following table provides information on CFC’s credit commitments to NCSC and RTFC, and its potential exposure to loss as of August 31, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,019,103 1,059,629 Credit enhancements: CFC third-party guarantees 11,339 10,091 Other credit enhancements 16,171 14,251 Total credit enhancements (2) 27,510 24,342 Total outstanding commitments 1,046,613 1,083,971 CFC available credit commitments $ 4,453,387 $ 4,416,029 ____________________________ (1) Borrowings payable to CFC are eliminated in consolidation. (2) Excludes interest due on these instruments. CFC loans to NCSC and RTFC are secured by all assets and revenue of NCSC and RTFC. CFC’s maximum potential exposure, including interest due, for the credit enhancements totaled $29 million as of August 31, 2019 . The maturities for obligations guaranteed by CFC extend through 2031. |
Investment Securities - (Notes)
Investment Securities - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
Investments [Abstract] | |
Investment Securities | NOTE 3—INVESTMENT SECURITIES We currently hold investments in equity and debt securities. We record purchases and sales of our investment securities on a trade-date basis. The accounting and measurement framework for investment securities differs depending on the security type and the classification. Equity Securities The following table presents the fair value of our equity securities, all of which had readily determinable fair values, as of August 31, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 Equity securities at fair value: Farmer Mac—Series A, B and C non-cumulative preferred stock $ 58,166 $ 82,445 Farmer Mac—class A common stock 5,756 5,088 Total equity securities at fair value $ 63,922 $ 87,533 We recognized net unrealized gains on our investments in equity securities of $2 million for the three months ended August 31, 2019 . We recognized net unrealized losses on our investments in equity securities of $1 million during the three months ended August 31, 2018 . These unrealized amounts are reported as a component of non-interest income on our condensed consolidated statements of operations. On June 12, 2019, Farmer Mac redeemed its Series B non-cumulative preferred stock at a redemption price of $25.00 per share, plus any declared and unpaid dividends through and including the redemption date. The amortized cost of our investment in the Farmer Mac Series B non-cumulative preferred stock was $25 million as of the redemption date, which equaled the per share redemption price. Debt Securities We currently classify and account for our investments in debt securities as held to maturity because we have the positive intent and ability to hold these securities to maturity. If we acquire debt securities that we may sell prior to maturity in response to changes in our investment strategy, liquidity needs, credit risk mitigating considerations, market risk profile or for other reasons, we would classify such securities as available for sale. We report debt securities classified as held to maturity on our condensed consolidated balance sheets at amortized cost. Interest income, including amortization of premiums and accretion of discounts, is generally recognized over the contractual life of the securities based on the effective yield method. Pursuant to our investment policy guidelines, all fixed-income debt securities, at the time of purchase, must be rated at least investment grade and on stable outlook based on external credit ratings from at least two of the leading global credit rating agencies, when available, or the corresponding equivalent, when not available. Securities rated investment grade, that is those rated Baa3 or higher by Moody’s Investors Service (“Moody’s”) or BBB- or higher by S&P or BBB- or higher by Fitch Ratings Inc. (“Fitch”), are generally considered by the rating agencies to be of lower credit risk than non-investment grade securities. Amortized Cost and Fair Value of Debt Securities The following tables present the amortized cost and fair value of our debt securities and the corresponding gross unrealized gains and losses, by classification category and major security type, as of August 31, 2019 and May 31, 2019 . August 31, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities held-to-maturity: Certificates of deposit $ 6,123 $ 2 $ — $ 6,125 Commercial paper 5,950 — — 5,950 U.S. agency debt securities 4,563 201 — 4,764 Corporate debt securities 481,914 9,426 (219 ) 491,121 Commercial MBS: Agency 7,243 473 — 7,716 Non-agency 3,453 — (5 ) 3,448 Total commercial MBS 10,696 473 (5 ) 11,164 U.S. state and municipality debt securities 9,606 520 — 10,126 Foreign government debt securities 1,257 58 — 1,315 Other ABS (1) 49,466 448 (3 ) 49,911 Total debt securities held-to-maturity $ 569,575 $ 11,128 $ (227 ) $ 580,476 May 31, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities held-to-maturity: Certificates of deposit $ 1,000 $ — $ — $ 1,000 Commercial paper 12,395 — — 12,395 U.S. agency debt securities 3,207 108 — 3,315 Corporate debt securities 478,578 4,989 (912 ) 482,655 Commercial MBS: Agency 7,255 291 — 7,546 Non-agency 3,453 — (7 ) 3,446 Total commercial MBS 10,708 291 (7 ) 10,992 U.S. state and municipality debt securities 9,608 352 — 9,960 Foreign government debt securities 1,254 42 — 1,296 Other ABS (1) 48,694 290 (48 ) 48,936 Total debt securities held-to-maturity $ 565,444 $ 6,072 $ (967 ) $ 570,549 ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. Debt Securities in Gross Unrealized Loss Position An unrealized loss exists when the fair value of an individual security is less than its amortized cost basis. The following table presents the fair value and gross unrealized losses for debt securities in a gross loss position, aggregated by security type, and the length of time the securities have been in a continuous unrealized loss position as of August 31, 2019 and May 31, 2019 . The securities are segregated between investments that have been in a continuous unrealized loss position for less than 12 months and 12 months or more based on the point in time that the fair value declined below the amortized cost basis. August 31, 2019 Unrealized Loss Position Less than 12 Months Unrealized Loss Position 12 Months or Longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Debt securities held-to-maturity: Corporate debt securities $ 50,895 $ (75 ) $ 45,650 $ (144 ) $ 96,545 $ (219 ) Commercial MBS, non-agency 3,447 (5 ) — — 3,447 (5 ) Other ABS (1) — — 7,909 (3 ) 7,909 (3 ) Total debt securities held-to-maturity $ 54,342 $ (80 ) $ 53,559 $ (147 ) $ 107,901 $ (227 ) May 31, 2019 Unrealized Loss Position Less than 12 Months Unrealized Loss Position 12 Months or Longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Debt securities held-to-maturity: Commercial paper (2) $ 2,688 $ — $ — $ — $ 2,688 $ — Corporate debt securities 45,999 (198 ) 164,086 (714 ) 210,085 (912 ) Commercial MBS, non-agency 1,996 (4 ) 1,448 (3 ) 3,444 (7 ) Other ABS (1) 1,982 (4 ) 13,840 (44 ) 15,822 (48 ) Total debt securities held-to-maturity $ 52,665 $ (206 ) $ 179,374 $ (761 ) $ 232,039 $ (967 ) ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. (2) Unrealized losses on the commercial paper investments are less than $1,000 . Other-Than-Temporary Impairment We conduct periodic reviews of all securities with unrealized losses to evaluate whether the impairment is other than temporary. The number of individual securities in an unrealized loss position was 84 as of August 31, 2019 . We have assessed each security with gross unrealized losses included in the above table for credit impairment. As part of that assessment, we concluded that the unrealized losses are driven by changes in market interest rates rather than by adverse changes in the credit quality of these securities. Based on our assessment, we expect to recover the entire amortized cost basis of these securities, as we do not intend to sell any of the securities and have concluded that it is more likely than not that we will not be required to sell prior to recovery of the amortized cost basis. Accordingly, we currently consider the impairment of these securities to be temporary. Contractual Maturity and Yield The following table presents, by major security type, the remaining contractual maturity based on amortized cost and fair value of our held-to-maturity investment securities as of August 31, 2019 and May 31, 2019 . Because borrowers may have the right to call or prepay certain obligations, the expected maturities of our investments may differ from the scheduled contractual maturities presented below. August 31, 2019 (Dollars in thousands) Due in 1 Year or Less Due > 1 Year through 5 Years Due > 5 Years through 10 Years Due >10 Years Total Amortized cost: Certificates of deposit $ 5,123 $ 1,000 $ — $ — $ 6,123 Commercial paper 5,950 — — — 5,950 U.S. agency debt securities — 2,682 1,881 — 4,563 Corporate debt securities 61,766 408,037 12,111 — 481,914 Commercial MBS: Agency — 2,078 5,165 — 7,243 Non-agency — — — 3,453 3,453 Total commercial MBS — 2,078 5,165 3,453 10,696 U.S. state and municipality debt securities — 9,606 — — 9,606 Foreign government debt securities — 1,257 — — 1,257 Other ABS (1) — 49,466 — — 49,466 Total $ 72,839 $ 474,126 $ 19,157 $ 3,453 $ 569,575 Fair value: Certificates of deposit $ 5,125 $ 1,000 $ — $ — $ 6,125 Commercial paper 5,950 — — — 5,950 U.S. agency debt securities — 2,811 1,953 — 4,764 Corporate debt securities 61,784 416,655 12,682 — 491,121 Commercial MBS: Agency — 2,210 5,506 — 7,716 Non-Agency — — — 3,448 3,448 Total commercial MBS — 2,210 5,506 3,448 11,164 U.S. state and municipality debt securities — 10,126 — — 10,126 Foreign government debt securities — 1,315 — — 1,315 Other ABS (1) — 49,911 — — 49,911 Total $ 72,859 $ 484,028 $ 20,141 $ 3,448 $ 580,476 Weighted average coupon (2) 2.32 % 3.03 % 3.00 % 3.02 % 2.94 % May 31, 2019 (Dollars in thousands) Due in 1 Year or Less Due > 1 Year through 5 Years Due > 5 Years through 10 Years Due >10 Years Total Amortized cost: Certificates of deposit $ — $ 1,000 $ — $ — $ 1,000 Commercial paper 12,395 — — — 12,395 U.S. agency debt securities — 2,678 529 — 3,207 Corporate debt securities 51,923 414,788 11,867 — 478,578 Commercial MBS: Agency — 310 6,945 — 7,255 Non-agency — — — 3,453 3,453 Total Commercial MBS — 310 6,945 3,453 10,708 U.S. state and municipality debt securities — 9,608 — — 9,608 Foreign government debt securities — 1,254 — — 1,254 Other ABS (1) 510 45,730 2,454 — 48,694 Total $ 64,828 $ 475,368 $ 21,795 $ 3,453 $ 565,444 Fair value: Certificates of deposit $ — $ 1,000 $ — $ — $ 1,000 Commercial paper 12,395 — — — 12,395 U.S. agency debt securities — 2,769 546 — 3,315 Corporate debt securities 51,818 418,606 12,231 — 482,655 Commercial MBS: Agency — 317 7,229 — 7,546 Non-agency — — — 3,446 3,446 Total commercial MBS — 317 7,229 3,446 10,992 U.S. state and municipality debt securities — 9,960 — — 9,960 Foreign government debt securities — 1,296 — — 1,296 Other ABS (1) 509 45,916 2,511 — 48,936 Total $ 64,722 $ 479,864 $ 22,517 $ 3,446 $ 570,549 Weighted average coupon (2) 2.08 % 3.10 % 3.07 % 3.26 % 2.98 % ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. (2) Calculated based on the weighted average coupon rate, which excludes the impact of amortization of premium and accretion of discount. The average contractual maturity and weighted average coupon of our held-to-maturity investment securities was three years and 2.94% , respectively, as of August 31, 2019 . The average credit rating of these securities, based on the equivalent lowest credit rating by Moody’s, S&P and Fitch was A2, A and A, respectively, as of August 31, 2019 . Realized Gains and Losses We did not sell any of our debt securities during the three months ended August 31, 2019 , and therefore have not recorded any realized gains or losses. In connection with Farmer Mac’s early redemption of its Series B non-cumulative preferred stock, we recorded a realized loss on equity securities of $0.2 million for the three months ended August 31, 2019 . |
Loans - (Notes)
Loans - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | NOTE 4—LOANS 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 the outstanding principal balance of loans to members, including deferred loan origination costs, and unadvanced loan commitments by loan type and member class, as of August 31, 2019 and May 31, 2019 . August 31, 2019 May 31, 2019 (Dollars in thousands) Loans Outstanding Unadvanced Commitments (1) Loans Outstanding Unadvanced Commitments (1) Loan type: Long-term loans: Fixed rate $ 23,677,234 $ — $ 23,094,253 $ — Variable rate 962,541 5,140,530 1,066,880 5,448,636 Total long-term loans 24,639,775 5,140,530 24,161,133 5,448,636 Lines of credit 1,648,824 7,913,213 1,744,531 7,788,922 Total loans outstanding 26,288,599 13,053,743 25,905,664 13,237,558 Deferred loan origination costs 11,239 — 11,240 — Loans to members $ 26,299,838 $ 13,053,743 $ 25,916,904 $ 13,237,558 Member class: CFC: Distribution $ 20,484,460 $ 8,568,888 $ 20,155,266 $ 8,773,018 Power supply 4,671,035 3,456,266 4,578,841 3,466,680 Statewide and associate 84,212 168,564 83,569 165,687 Total CFC 25,239,707 12,193,718 24,817,676 12,405,385 NCSC 697,791 575,888 742,888 552,840 RTFC 351,101 284,137 345,100 279,333 Total loans outstanding 26,288,599 13,053,743 25,905,664 13,237,558 Deferred loan origination costs 11,239 — 11,240 — Loans to members $ 26,299,838 $ 13,053,743 $ 25,916,904 $ 13,237,558 ____________________________ (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, 2019 and the related maturities by fiscal year and thereafter by loan type: Available Balance Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2020 2021 2022 2023 2024 Thereafter Line of credit loans $ 7,913,213 $ 609,206 $ 4,128,566 $ 485,285 $ 1,364,426 $ 1,055,813 $ 269,917 Long-term loans 5,140,530 306,460 665,361 1,295,466 1,080,699 1,634,791 157,753 Total $ 13,053,743 $ 915,666 $ 4,793,927 $ 1,780,751 $ 2,445,125 $ 2,690,604 $ 427,670 Unadvanced line of credit commitments accounted for 61% of total unadvanced loan commitments as of August 31, 2019 , while unadvanced long-term loan commitments accounted for 39% of total unadvanced loan commitments. Unadvanced line of credit commitments are typically revolving facilities for periods not to exceed five years. Unadvanced line of credit commitments generally serve as supplemental back-up liquidity to our borrowers. Historically, borrowers have not drawn the full commitment amount for line of credit facilities, and we have experienced a very low utilization rate on line of credit loan facilities regardless of whether or not we are obligated to fund the facility where a material adverse change exists. Our unadvanced long-term loan commitments have a five-year draw period under which a borrower may advance funds prior to the expiration of the commitment. We expect that the majority of the long-term unadvanced loan commitments of $5,141 million will be advanced prior to the expiration of the commitment. Because we historically have experienced a very low utilization rate on line of credit loan facilities, which account for the majority of our total unadvanced loan commitments, we believe the unadvanced loan commitment total of $13,054 million as of August 31, 2019 is not necessarily representative of our future funding cash requirements. Unadvanced Loan Commitments—Conditional The substantial majority of our line of credit commitments and all of our unadvanced long-term loan commitments include material adverse change clauses. Unadvanced loan commitments subject to material adverse change clauses totaled $10,050 million and $10,294 million as of August 31, 2019 and May 31, 2019 , 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 $3,004 million and $2,944 million as of August 31, 2019 and May 31, 2019 , 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, 2019 . Available Balance Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2020 2021 2022 2023 2024 Thereafter Committed lines of credit $3,003,647 $260,886 $478,489 $171,875 $1,166,687 $811,510 $114,200 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 $20 million , at par for cash, during the three months ended August 31, 2019 . We did not have any loan sales during the three months ended August 31, 2018 . 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 under USDA’s Guaranteed Underwriter Program (“Guaranteed Underwriter Program”) and the amount of the corresponding debt outstanding as of August 31, 2019 and May 31, 2019 . See “Note 6—Short-Term Borrowings” and “Note 7—Long-Term Debt” for information on our borrowings. (Dollars in thousands) August 31, 2019 May 31, 2019 Collateral trust bonds: 2007 indenture: Distribution system mortgage notes $ 8,557,299 $ 8,775,231 RUS-guaranteed loans qualifying as permitted investments 133,129 134,678 Total pledged collateral $ 8,690,428 $ 8,909,909 Collateral trust bonds outstanding 7,622,711 7,622,711 1994 indenture: Distribution system mortgage notes $ 46,522 $ 47,331 Collateral trust bonds outstanding 40,000 40,000 Farmer Mac: Distribution and power supply system mortgage notes $ 3,760,219 $ 3,751,798 Notes payable outstanding 2,962,478 3,054,914 Clean Renewable Energy Bonds Series 2009A: Distribution and power supply system mortgage notes $ 9,799 $ 10,349 Cash 802 415 Total pledged collateral $ 10,601 $ 10,764 Notes payable outstanding 9,225 9,225 Federal Financing Bank: Distribution and power supply system mortgage notes $ 6,127,684 $ 6,157,218 Notes payable outstanding 5,387,155 5,410,507 Credit Concentration Concentrations may exist when there are amounts loaned to borrowers engaged in similar activities or in geographic areas that would cause them to be similarly impacted by economic or other conditions or when there are large exposures to single borrowers. As a tax-exempt, member-owned finance cooperative, CFC’s principal focus is to provide funding to its rural electric utility cooperative members to assist them in acquiring, constructing and operating electric distribution systems, power supply systems and related facilities. We serve electric and telecommunications members throughout the United States, with a total of 900 borrowers located in 49 states as of August 31, 2019 . Loans to borrowers in Texas accounted for approximately 16% and 15% of total loans outstanding as of August 31, 2019 and May 31, 2019 , respectively, representing the largest concentration of outstanding loans to borrowers and the largest number of borrowers in any one state. Because we lend primarily to our rural electric utility cooperative members, we have a loan portfolio subject to single-industry and single-obligor concentration risks. Loans outstanding to electric utility organizations represented approximately 99% of total loans outstanding as of August 31, 2019 , unchanged from May 31, 2019 . The remaining loans outstanding in our portfolio were to RTFC members, affiliates and associates in the telecommunications industry. The outstanding loan exposure for our 20 largest borrowers was 22% as of both August 31, 2019 and May 31, 2019 . The 20 largest borrowers consisted of 10 distribution systems, nine power supply systems and one NCSC associate as of both August 31, 2019 and May 31, 2019 . The largest total outstanding exposure to a single borrower or controlled group represented approximately 2% of total loans outstanding as of both August 31, 2019 and May 31, 2019 . As part of our strategy in managing our credit exposure, we entered into a long-term standby purchase commitment agreement with Farmer Mac during fiscal year 2016. Under this agreement, we may designate certain long-term loans to be covered under the commitment, subject to approval by Farmer Mac, and in the event any such loan later goes into payment default for at least 90 days, upon request by us, Farmer Mac must purchase such loan at par value. The aggregate unpaid principal balance of designated and Farmer Mac approved loans was $602 million and $619 million as of August 31, 2019 and May 31, 2019 , 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, 2019 . Also, we had long-term loans totaling $152 million and $154 million as of August 31, 2019 and May 31, 2019 , respectively, guaranteed by RUS. Credit Quality Assessing the overall credit quality of our loan portfolio and measuring our credit risk is an ongoing process that involves tracking payment status, charge-offs, troubled debt restructurings, nonperforming and impaired loans, the internal risk ratings of our borrowers and other indicators of credit risk. We monitor and subject each borrower and loan facility in our loan portfolio to an individual risk assessment based on quantitative and qualitative factors. Internal risk ratings and payment status trends are indicators, among others, of the probability of borrower default and level of credit risk in our loan portfolio. Borrower Risk Ratings As part of our credit risk management process, we monitor and evaluate each borrower and loan in our loan portfolio and assign internal borrower and loan facility risk ratings based on quantitative and qualitative assessments. Our borrower risk ratings are intended to assess probability of default. 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 borrower risk ratings are intended to align with banking regulatory agency credit risk rating definitions of pass and criticized classifications, with criticized divided between special mention, substandard and doubtful. Pass ratings reflect relatively low probability of default, while criticized ratings have a higher probability of default. Following is a description of each rating category. • Pass : Borrowers that are not experiencing difficulty and/or not showing a potential or well-defined credit weakness. • Special Mention : Borrowers that may be characterized by a potential credit weakness or deteriorating financial condition that is not sufficiently serious to warrant a classification of substandard or doubtful. • Substandard : Borrowers that display a well-defined credit weakness that may jeopardize the full collection of principal and interest. • Doubtful : Borrowers that have a well-defined credit weakness or weaknesses that make full collection of principal and interest, on the basis of currently known facts, conditions and collateral values, highly questionable and improbable. Loans to borrowers in the pass, special mention and substandard categories are generally considered not to be individually impaired and are included in the loan pools for determining the collective reserve component of the allowance for loan losses. Loans to borrowers in the doubtful category are considered to be impaired and are therefore individually assessed for impairment in determining the specific reserve component of the allowance for loan losses. The following tables present total loans outstanding, by member class and borrower risk rating category, based on the risk ratings used in the estimation of our allowance for loan losses as of August 31, 2019 and May 31, 2019 . For purposes of these tables and for determining the allowance for loan losses, loans to borrowers that are supported by a full guarantee of repayment by the parent company are grouped in the same risk rating category of the guarantor parent company, rather than the risk rating category of the subsidiary borrower. August 31, 2019 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 20,354,654 $ 8,222 $ 121,584 $ — $ 20,484,460 Power supply 4,623,131 — 47,904 — 4,671,035 Statewide and associate 69,212 15,000 — — 84,212 CFC total 25,046,997 23,222 169,488 — 25,239,707 NCSC 697,791 — — — 697,791 RTFC 345,634 — 5,467 — 351,101 Total loans outstanding $ 26,090,422 $ 23,222 $ 174,955 $ — $ 26,288,599 May 31, 2019 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 20,022,193 $ 10,375 $ 122,698 $ — $ 20,155,266 Power supply 4,530,708 — 48,133 — 4,578,841 Statewide and associate 68,569 15,000 — — 83,569 CFC total 24,621,470 25,375 170,831 — 24,817,676 NCSC 742,888 — — — 742,888 RTFC 339,508 — 5,592 — 345,100 Total loans outstanding $ 25,703,866 $ 25,375 $ 176,423 $ — $ 25,905,664 The substantial majority of the loans in the substandard category are attributable to loans to one electric distribution cooperative borrower and its subsidiary totaling $169 million and $171 million as of August 31, 2019 and May 31, 2019 , respectively. The electric distribution cooperative owns and operates a distribution and transmission system. Several years ago, it established a subsidiary to deploy retail broadband service in underserved rural communities. Although the borrower has experienced financial difficulties due to recent net losses and liquidity constraints, the borrower and its subsidiary are current with regard to all principal and interest payments and have never been delinquent. The borrower, which operates in a territory that is not rate-regulated, recently increased its electric and broadband rates and has begun taking other actions to improve its financial performance and liquidity. All of the loans outstanding to this borrower were secured under our typical collateral requirements for long-term loan advances as of August 31, 2019 . We currently expect to collect all principal and interest amounts due from the borrower and its subsidiary. Accordingly, the loans outstanding to this borrower and its subsidiary were not deemed to be impaired as of August 31, 2019 . Payment Status of Loans The following tables present the payment status of loans outstanding by member class as of August 31, 2019 and May 31, 2019 . As indicated in the table, we did not have any past due loans as of either August 31, 2019 or May 31, 2019 . August 31, 2019 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Past Due Total Loans Outstanding Nonaccrual Loans CFC: Distribution $ 20,484,460 $ — $ — $ — $ 20,484,460 $ — Power supply 4,671,035 — — — 4,671,035 — Statewide and associate 84,212 — — — 84,212 — CFC total 25,239,707 — — — 25,239,707 — NCSC 697,791 — — — 697,791 — RTFC 351,101 — — — 351,101 — Total loans outstanding $ 26,288,599 $ — $ — $ — $ 26,288,599 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % May 31, 2019 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Total Loans Outstanding Nonaccrual Loans CFC: Distribution $ 20,155,266 $ — $ — $ — $ 20,155,266 $ — Power supply 4,578,841 — — — 4,578,841 — Statewide and associate 83,569 — — — 83,569 — CFC total 24,817,676 — — — 24,817,676 — NCSC 742,888 — — — 742,888 — RTFC 345,100 — — — 345,100 — Total loans outstanding $ 25,905,664 $ — $ — $ — $ 25,905,664 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % ____________________________ (1) All loans 90 days or more past due are on nonaccrual status. Troubled Debt Restructurings We did not have any loans modified as TDRs during the three months ended August 31, 2019 . 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, 2019 and May 31, 2019 . August 31, 2019 May 31, 2019 (Dollars in thousands) Loans Outstanding % of Total Loans Unadvanced Commitments Loans Outstanding % of Total Loans Unadvanced Commitments TDR loans: Performing TDR loans: CFC/Distribution $ 5,755 0.02 % $ — $ 6,261 0.03 % $ — RTFC 5,467 0.02 — 5,592 0.02 — Total performing TDR loans 11,222 0.04 — 11,853 0.05 — Total TDR loans $ 11,222 0.04 % $ — $ 11,853 0.05 % $ — We did not have any TDR loans classified as nonperforming as of August 31, 2019 or May 31, 2019 . TDR loans classified as performing as of August 31, 2019 and May 31, 2019 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 two line of credit facilities as of both August 31, 2019 and May 31, 2019 . One line of credit facility for $6 million as of both August 31, 2019 and May 31, 2019 , is restricted for fuel purchases only. Outstanding loans under this facility totaled $1 million and $3 million as of August 31, 2019 and May 31, 2019 , respectively, and were classified as performing as of each respective date. The other line of credit facility for $2 million as of both August 31, 2019 and May 31, 2019 , provides bridge funding for electric work plan expenditures in anticipation of receiving RUS funding. Outstanding loans under this facility totaled $1 million as of both August 31, 2019 and May 31, 2019 , respectively, and were classified as performing. Nonperforming Loans In addition to TDR loans that may be classified as nonperforming, we also may have nonperforming loans that have not been modified as a TDR. We did not have any loans classified as nonperforming as of either August 31, 2019 or May 31, 2019 . We had no foregone interest income for loans on nonaccrual status during the three months ended August 31, 2019 and 2018 . Impaired Loans The following table provides information on loans classified as individually impaired as of August 31, 2019 and May 31, 2019 . August 31, 2019 May 31, 2019 (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Related Allowance With no specific allowance recorded: CFC $ 5,755 $ — $ 6,261 $ — With a specific allowance recorded: RTFC 5,467 989 5,592 1,021 Total impaired loans $ 11,222 $ 989 $ 11,853 $ 1,021 The following table presents, by company, the average recorded investment for individually impaired loans and the interest income recognized on these loans for the three months ended August 31, 2019 and 2018 . Three Months Ended August 31, 2019 2018 2019 2018 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC $ 6,239 $ 6,504 $ 137 $ 142 RTFC 5,547 6,048 69 76 Total impaired loans $ 11,786 $ 12,552 $ 206 $ 218 Net Charge-Offs Charge-offs represent the amount of a loan that has been removed from our consolidated balance sheet when the loan is deemed uncollectible. Generally the amount of a charge-off is the recorded investment in excess of the fair value of the expected cash flows from the loan, or, if the loan is collateral dependent, the fair value of the underlying collateral securing the loan. We report charge-offs net of amounts recovered on previously charged off loans. We had no loan defaults or charge-offs during the three months ended August 31, 2019 and 2018 . |
Allowance for Loan Losses - (No
Allowance for Loan Losses - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Loan Losses | NOTE 5—ALLOWANCE FOR LOAN LOSSES We maintain an allowance for loan losses that represents management’s estimate of probable losses inherent in our loan portfolio as of each balance sheet date. Our allowance for loan losses consists of a collective allowance for loans in our portfolio that are not individually impaired and a specific allowance for loans identified as individually impaired. The allowance for loan losses is reported separately on the consolidated balance sheet, and the provision for loan losses is separately reported on our condensed consolidated statements of operations. The following tables summarize changes, by company, in the allowance for loan losses as of and for the three months ended August 31, 2019 and 2018 . Three Months Ended August 31, 2019 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2019 $ 13,120 $ 2,007 $ 2,408 $ 17,535 Provision (benefit) for loan losses (158 ) 70 118 30 Balance as of August 31, 2019 $ 12,962 $ 2,077 $ 2,526 $ 17,565 Three Months Ended August 31, 2018 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2018 $ 12,300 $ 2,082 $ 4,419 $ 18,801 Provision (benefit) for loan losses 208 (70 ) (247 ) (109 ) Balance as of August 31, 2018 $ 12,508 $ 2,012 $ 4,172 $ 18,692 The following tables present, by company, the components of our allowance for loan losses and the recorded investment of the related loans as of August 31, 2019 and May 31, 2019 . August 31, 2019 (Dollars in thousands) CFC NCSC RTFC Total Ending balance of the allowance: Collective allowance $ 12,962 $ 2,077 $ 1,537 $ 16,576 Specific allowance — — 989 989 Total ending balance of the allowance $ 12,962 $ 2,077 $ 2,526 $ 17,565 Recorded investment in loans: Collectively evaluated loans $ 25,233,952 $ 697,791 $ 345,634 $ 26,277,377 Individually evaluated loans 5,755 — 5,467 11,222 Total recorded investment in loans $ 25,239,707 $ 697,791 $ 351,101 $ 26,288,599 Total recorded investment in loans, net (1) $ 25,226,745 $ 695,714 $ 348,575 $ 26,271,034 Allowance coverage ratio: Allowance as a percentage of total recorded investment in loans 0.05 % 0.30 % 0.72 % 0.07 % May 31, 2019 (Dollars in thousands) CFC NCSC RTFC Total Ending balance of the allowance: Collective allowance $ 13,120 $ 2,007 $ 1,387 $ 16,514 Specific allowance — — 1,021 1,021 Total ending balance of the allowance $ 13,120 $ 2,007 $ 2,408 $ 17,535 Recorded investment in loans: Collectively evaluated loans $ 24,811,415 $ 742,888 $ 339,508 $ 25,893,811 Individually evaluated loans 6,261 — 5,592 11,853 Total recorded investment in loans $ 24,817,676 $ 742,888 $ 345,100 $ 25,905,664 Total recorded investment in loans, net (1) $ 24,804,556 $ 740,881 $ 342,692 $ 25,888,129 Allowance coverage ratio: Allowance as a percentage of total recorded investment in loans 0.05 % 0.27 % 0.70 % 0.07 % ____________________________ (1) Excludes unamortized deferred loan origination costs of $11 million as of both August 31, 2019 and May 31, 2019 . As noted above in “Note 4-Loans,” we did not have any loans classified as nonperforming as of either August 31, 2019 or May 31, 2019 . In addition to the allowance for loan losses, we also maintain a reserve for unadvanced loan commitments at a level estimated by management to provide for probable losses under these commitments as of each balance sheet date, which was less than $1 million as of both August 31, 2019 and May 31, 2019 . |
Short-Term Borrowings - (Notes)
Short-Term Borrowings - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-Term Debt | NOTE 6—SHORT-TERM BORROWINGS Short-term borrowings consist of borrowings with an original contractual maturity of one year or less and do not include the current portion of long-term debt. Our short-term borrowings totaled $4,028 million and accounted for 16% of total debt outstanding as of August 31, 2019 , compared with $3,608 million , or 14% , of total debt outstanding as of May 31, 2019 . The following table provides comparative information on our short-term borrowings as of August 31, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 Short-term borrowings: Commercial paper: Commercial paper sold through dealers, net of discounts $ 829,763 $ 944,616 Commercial paper sold directly to members, at par 1,240,830 1,111,795 Total commercial paper 2,070,593 2,056,411 Select notes to members 1,277,927 1,023,952 Daily liquidity fund notes to members 435,070 298,817 Medium-term notes to members 244,055 228,546 Total short-term borrowings $ 4,027,645 $ 3,607,726 Committed Bank Revolving Line of Credit Agreements We had $2,975 million of commitments under committed bank revolving line of credit agreements as of both August 31, 2019 and May 31, 2019 , respectively. 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, 2019 and May 31, 2019 . August 31, 2019 May 31, 2019 (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 $ 1,440 $ — $ 1,440 $ 1,440 $ — $ 1,440 November 28, 2021 7.5 bps 5-year agreement 1,535 3 1,532 1,535 3 1,532 November 28, 2023 10 bps Total $ 2,975 $ 3 $ 2,972 $ 2,975 $ 3 $ 2,972 ____________________________ (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 had no borrowings outstanding under our committed bank revolving line of credit agreements as of August 31, 2019 or May 31, 2019 , and we were in compliance with all covenants and conditions under the agreements as of each date. |
Long-Term Debt - (Notes)
Long-Term Debt - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
Debt Instruments [Abstract] | |
Long-Term Debt | NOTE 7—LONG-TERM DEBT The following table displays long-term debt outstanding, by debt type, as of August 31, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 Secured long-term debt: Collateral trust bonds $ 7,662,711 $ 7,662,711 Unamortized discount (242,123 ) (244,643 ) Debt issuance costs (32,952 ) (34,336 ) Total collateral trust bonds 7,387,636 7,383,732 Guaranteed Underwriter Program notes payable 5,387,155 5,410,507 Farmer Mac notes payable 2,962,478 3,054,914 Other secured notes payable 9,225 9,225 Debt issuance costs (162 ) (178 ) Total other secured notes payable 9,063 9,047 Total secured notes payable 8,358,696 8,474,468 Total secured long-term debt 15,746,332 15,858,200 Unsecured long-term debt: Medium-term notes sold through dealers 2,935,540 2,962,375 Medium-term notes sold to members 418,208 397,080 Subtotal medium-term notes 3,353,748 3,359,455 Unamortized discount (848 ) (931 ) Debt issuance costs (18,492 ) (19,399 ) Total unsecured medium-term notes 3,334,408 3,339,125 Unsecured notes payable 13,701 13,701 Unamortized discount (164 ) (187 ) Debt issuance costs (41 ) (46 ) Total unsecured notes payable 13,496 13,468 Total unsecured long-term debt 3,347,904 3,352,593 Total long-term debt $ 19,094,236 $ 19,210,793 Collateral Trust Bonds Collateral trust bonds represent secured obligations sold to investors in the capital markets. Collateral trust bonds are secured by the pledge of mortgage notes or eligible securities in an amount at least equal to the principal balance of the bonds outstanding. On September 13, 2019, we provided notice to investors that we will redeem all $300 million outstanding principal amount of our 2.30% collateral trust bonds due November 15, 2019 on October 15, 2019. Secured Notes Payable We had outstanding secured notes payable totaling $5,387 million and $5,411 million as of August 31, 2019 and May 31, 2019 , respectively, under bond purchase agreements with the Federal Financing Bank and a bond guarantee agreement with RUS issued under the Guaranteed Underwriter Program, which provides guarantees to the Federal Financing Bank. We pay RUS a fee of 30 basis points per year on the total amount outstanding. We had up to $1,350 million available for access under the Guaranteed Underwriter Program as of August 31, 2019 . The notes outstanding under the Guaranteed Underwriter Program contain a provision that if during any portion of the fiscal year, our senior secured credit ratings do not have at least two of the following ratings: (i) A3 or higher from Moody’s, (ii) A- or higher from S&P, (iii) A- or higher from Fitch, or (iv) an equivalent rating from a successor rating agency to any of the above rating agencies, we may not make cash patronage capital distributions in excess of 5% of total patronage capital. We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under the Guaranteed Underwriter Program. See “Note 4—Loans” 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 $5,500 million from Farmer Mac. Under our first revolving note purchase agreement with Farmer Mac, dated March 24, 2011, as amended, we can currently borrow, subject to market conditions, up to $5,200 million at any time through January 11, 2022, 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 $2,962 million and $3,055 million as of August 31, 2019 and May 31, 2019 , respectively. Under our second revolving note purchase agreement with Farmer Mac, dated July 31, 2015, as amended, we can borrow up to $300 million at any time through December 20, 2023 at a fixed spread over London Interbank Offered Rate (“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. Prior to the maturity date, Farmer Mac may terminate the agreement upon 30 days written notice to us on periodic facility renewal dates, the first of which was January 31, 2019. Subsequent facility renewal dates are on each June 20 or December 20 thereafter until the maturity date. We may terminate the agreement upon 30 days written notice at any time. We did not have any outstanding notes payable under this revolving note purchase agreement with Farmer Mac as of August 31, 2019 and May 31, 2019 . Under the terms of the first revolving note purchase agreement with Farmer Mac described above, the $5,200 million commitment will increase to $5,500 million in the event the second revolving note purchase agreement is terminated. 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” 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, 2019 and May 31, 2019 . |
Subordinated Deferrable Debt -
Subordinated Deferrable Debt - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
Subordinated Debt [Abstract] | |
Subordinated Deferrable Debt | NOTE 8—SUBORDINATED DEFERRABLE DEBT The following table presents subordinated deferrable debt outstanding as of August 31, 2019 and May 31, 2019 . See “Note 8—Subordinated Deferrable Debt” of our 2019 Form 10-K for additional information on the terms of our subordinated deferrable debt outstanding. (Dollars in thousands) August 31, 2019 May 31, 2019 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 5.50% due 2064 with a call date of May 15, 2024 250,000 250,000 Debt issuance costs (14,019 ) (13,980 ) Total subordinated deferrable debt $ 985,981 $ 986,020 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 9—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES 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 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. Our derivatives transactions are not collateralized and do not include collateralization agreements with counterparties. 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 receivable or accrued interest payable. If we do not elect hedge accounting treatment, changes in the fair value of derivative instruments, which consist of net accrued periodic derivative cash settlements expense and derivative forward value amounts, are recognized in our condensed 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 recognized in the same line item on our condensed consolidated statements of operations as the earnings effect of the related hedged item. Changes in the fair value of derivatives designated as qualifying cash flow hedges are recorded as a component of AOCI. Those amounts are reclassified into earnings in the same period during which the forecasted transaction impacts earnings and presented in the same line item on our condensed consolidated statements of operations as the earnings effect of the related hedged item. We generally do not designate interest rate swaps, which represented all of our outstanding derivatives as of August 31, 2019 , for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our condensed consolidated statements of operations under derivative gains (losses). Net periodic cash settlements expense related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. Outstanding Notional Amount of Derivatives Not Designated as Accounting Hedges 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, 2019 and May 31, 2019 . The substantial majority of our interest rate swaps use an index based on LIBOR for either the pay or receive leg of the swap agreement. August 31, 2019 May 31, 2019 (Dollars in thousands) Notional Amount Weighted- Average Rate Paid Weighted- Average Rate Received Notional Weighted- Weighted- Pay-fixed swaps $ 7,319,015 2.84 % 2.27 % $ 7,379,280 2.83 % 2.60 % Receive-fixed swaps 3,399,000 2.96 2.56 3,399,000 3.25 2.56 Total interest rate swaps 10,718,015 2.88 2.36 10,778,280 2.97 2.58 Forward pay-fixed swaps 65,000 65,000 Total $ 10,783,015 $ 10,843,280 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 by derivatives type, as of August 31, 2019 and May 31, 2019 . August 31, 2019 May 31, 2019 (Dollars in thousands) Fair Value Notional Balance Fair Value Notional Balance Derivative assets: Interest rate swaps $ 85,533 $ 2,641,803 $ 41,179 $ 2,332,104 Derivative liabilities: Interest rate swaps $ 820,872 $ 8,141,212 $ 391,724 $ 8,511,176 All of our master swap agreements include netting provisions that allow for offsetting of all contracts with a given counterparty in the event of default by one of the two parties. However, as indicated above, 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, 2019 and May 31, 2019 , and provides information on the impact of netting provisions and collateral pledged, if any. August 31, 2019 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 $ 85,533 $ — $ 85,533 $ 85,533 $ — $ — Derivative liabilities: Interest rate swaps 820,872 — 820,872 85,533 — 735,339 May 31, 2019 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 $ 41,179 $ — $ 41,179 $ 41,176 $ — $ 3 Derivative liabilities: Interest rate swaps 391,724 — 391,724 41,176 — 350,548 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 expense and derivative forward value gains (losses). Derivative cash settlements expense represents 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 three months ended August 31, 2019 and 2018 . Three Months Ended August 31, (Dollars in thousands) 2019 2018 Derivative gains (losses) attributable to: Derivative cash settlements expense $ (11,043 ) $ (12,829 ) Derivative forward value gains (losses) (384,682 ) 20,012 Derivative gains (losses) $ (395,725 ) $ 7,183 Credit Risk-Related Contingent Features Our derivative contracts typically contain mutual early-termination provisions, generally in the form of a credit rating trigger. Under the mutual credit rating trigger provisions, either counterparty may, but is not obligated to, terminate and settle the agreement if the credit rating of the other counterparty falls below a level specified in the agreement. If a derivative contract is terminated, the amount to be received or paid by us would be equal to the prevailing fair value, as defined in the agreement, as of the termination date. Our senior unsecured credit ratings from Moody’s and S&P were A2 and A, respectively, as of August 31, 2019 . Both Moody’s and S&P had our ratings on stable outlook as of August 31, 2019 . The following table displays the notional amounts of our derivative contracts with rating triggers as of August 31, 2019 , 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) $ 50,460 $ (10,748 ) $ — $ (10,748 ) Falls below Baa1/BBB+ 6,989,288 (471,249 ) — (471,249 ) Falls to or below Baa2/BBB (2) 558,159 (20,778 ) — (20,778 ) Falls below Baa3/BBB- 221,473 (14,759 ) — (14,759 ) Total $ 7,819,380 $ (517,534 ) $ — $ (517,534 ) ____________________________ (1) Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. (2) Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively. We have outstanding notional amount of derivatives with one counterparty subject to a ratings trigger and early termination provision in the event of a downgrade of CFC’s senior unsecured credit ratings below Baa3, BBB- or BBB- by Moody’s, S&P or Fitch, respectively, which is not included in the above table, totaling $165 million as of August 31, 2019 . These contracts were in an unrealized loss position of $41 million as of August 31, 2019 . Our largest counterparty exposure, based on the outstanding notional amount, accounted for approximately 23% of the total outstanding notional amount of derivatives as of both August 31, 2019 and May 31, 2019 . The aggregate fair value amount, including the credit valuation adjustment, of all interest rate swaps with rating triggers that were in a net liability position was $543 million as of August 31, 2019 . |
Equity - (Notes)
Equity - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 10—EQUITY Total equity decreased by $385 million to $918 million as of August 31, 2019 . The decrease was primarily attributable to our reported net loss of $324 million for the three months ended August 31, 2019 and the CFC Board of Directors authorization in the current quarter to retire patronage capital of $63 million . In July 2019 , the CFC Board of Directors authorized the allocation of the fiscal year 2019 net earnings as follows: $97 million to members in the form of patronage, $71 million to the members’ capital reserve and $1 million to the cooperative educational fund. The amount of patronage capital allocated each year by CFC’s Board of Directors is based on adjusted net income, which excludes the impact of derivative forward value gains (losses). See “MD&A—Non-GAAP Financial Measures” for information on adjusted net income. In July 2019 , the CFC Board of Directors authorized the retirement of allocated net earnings totaling $63 million , consisting of $48 million , which represented 50% of the patronage capital allocation for fiscal year 2019 , and $15 million , which represented the portion of the allocation from fiscal year 1994 net earnings that has been held for 25 years pursuant to the CFC Board of Directors policy. This amount was returned to members in cash in September 2019. The remaining portion of the amount allocated for fiscal year 2019 will be retained by CFC for 25 years under current guidelines adopted by the CFC Board of Directors in June 2009. The CFC Board of Directors is required to make annual allocations of adjusted net income, if any. CFC has made annual retirements of allocated net earnings in 39 of the last 40 fiscal years; however, future retirements of allocated amounts are determined based on CFC’s 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. See “Item 1. Business—Allocation and Retirement of Patronage Capital” of our 2019 Form 10-K for additional information. 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, 2019 and 2018 . Three Months Ended August 31, 2019 (Dollars in thousands) Unrealized Gains (Losses) Equity Securities Unrealized Gains Derivatives (1 ) Unrealized Gains (Losses) Cash Flow Hedges Unrealized Losses Defined Benefit Plan ( 2) Total Beginning balance $ — $ 2,571 $ — $ (2,718 ) $ (147 ) (Gains) losses reclassified into earnings — (112 ) — 145 33 Ending balance $ — $ 2,459 $ — $ (2,573 ) $ (114 ) Three Months Ended August 31, 2018 (Dollars in thousands) Unrealized Gains (Losses) Equity Securities Unrealized Gains Derivatives (1) Unrealized Gains (Losses) Cash Flow Hedges Unrealized Losses Defined Benefit Plan ( 2) Total Beginning balance $ 8,794 $ 3,039 $ (1,059 ) $ (2,230 ) $ 8,544 Cumulative effect of changes from adoption of new accounting standards (8,794 ) — — — (8,794 ) Unrealized gains — — 24 — 24 (Gains) losses reclassified into earnings — (119 ) — 131 12 Other comprehensive income (loss) — (119 ) 24 131 36 Ending balance $ — $ 2,920 $ (1,035 ) $ (2,099 ) $ (214 ) ____________________________ (1) Amounts are reclassified into income in the derivative forward value gains (losses) component of the derivative gains (losses) line item of our condensed consolidated statements of operations. (2) Amounts are reclassified into income in the other general and administrative expenses line item of our condensed consolidated statements of operations. We expect to reclassify less than $1 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, 2019 | |
Guarantees [Abstract] | |
Guarantees | NOTE 11—GUARANTEES The following table summarizes total guarantees, by type of guarantee and by member class, as of August 31, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 Total by type: Long-term tax-exempt bonds (1) $ 311,590 $ 312,190 Letters of credit (2) 342,831 379,001 Other guarantees 146,906 146,244 Total $ 801,327 $ 837,435 Total by member class: CFC: Distribution $ 242,630 $ 235,919 Power supply 542,060 586,717 Statewide and associate 5,298 4,708 CFC total 789,988 827,344 NCSC 9,765 8,517 RTFC 1,574 1,574 Total $ 801,327 $ 837,435 ____________________________ (1) Represents the outstanding principal amount of long-term fixed-rate and variable-rate guaranteed bonds. (2) Reflects our maximum potential exposure for letters of credit. Long-term tax-exempt bonds of $312 million as of both August 31, 2019 and May 31, 2019 included $247 million of adjustable or variable-rate bonds that may be converted to a fixed rate as specified in the applicable indenture for each bond offering. We are unable to determine the maximum amount of interest that we may be required to pay related to the remaining adjustable and variable-rate bonds. Many of these bonds have a call provision that allows us to call the bond in the event of a default, which would limit our exposure to future interest payments on these bonds. Our maximum potential exposure generally is secured by mortgage liens on the members’ assets and future revenue. If a member’s debt is accelerated because of a determination that the interest thereon is not tax-exempt, the member’s obligation to reimburse us for any guarantee payments will be treated as a long-term loan. The remaining long-term tax-exempt bonds of $65 million as of August 31, 2019 are fixed-rate. The maximum potential exposure for these bonds, including the outstanding principal of $65 million and related interest through maturity, totaled $90 million as of August 31, 2019 . The maturities for long-term tax-exempt bonds and the related guarantees extend through calendar year 2042. Of the outstanding letters of credit of $343 million and $379 million as of August 31, 2019 and May 31, 2019 , respectively, $104 million and $126 million , respectively, were secured. We did not have any letters of credit outstanding that provided for standby liquidity for adjustable and floating-rate tax-exempt bonds issued for the benefit of our members as of August 31, 2019 . The maturities for the outstanding letters of credit as of August 31, 2019 extend through calendar year 2039. In addition to the letters of credit listed in the table above, under master letter of credit facilities in place as of August 31, 2019 , we may be required to issue up to an additional $57 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, 2019 . 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 $147 million as of both August 31, 2019 and May 31, 2019 of which $25 million was secured as of both August 31, 2019 and May 31, 2019 . 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 $360 million and $374 million and represented 45% of total guarantees as of both August 31, 2019 and May 31, 2019 . In addition to the guarantees described above, we were also the liquidity provider for $247 million of variable-rate tax-exempt bonds as of August 31, 2019 , issued for our member cooperatives. While the bonds are in variable-rate mode, in return for a fee, we have unconditionally agreed to purchase bonds tendered or put for redemption if the remarketing agents are unable to sell such bonds to other investors. We were not required to perform as liquidity provider pursuant to these obligations during the three months ended August 31, 2019 or the prior fiscal year. Guarantee Liability As of both August 31, 2019 and May 31, 2019 , we recorded a guarantee liability of $14 million 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, 2019 and May 31, 2019 , based on management’s estimate of exposure to losses within the guarantee portfolio. The remaining balance of the total guarantee liability of $13 million as of both August 31, 2019 and May 31, 2019 , 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, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 12—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 2019 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, 2019 and May 31, 2019 . The tables also display the classification within the fair value hierarchy of the valuation technique used in estimating fair value. August 31, 2019 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 231,050 $ 231,050 $ 231,050 $ — $ — Restricted cash 9,138 9,138 9,138 — — Equity securities 63,922 63,922 63,922 — — Debt securities held-to-maturity 569,575 580,476 — 580,476 — Deferred compensation investments 5,923 5,923 5,923 — — Loans to members, net 26,282,273 28,353,451 — — 28,353,451 Accrued interest receivable 133,119 133,119 — 133,119 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 85,533 85,533 — 85,533 — Liabilities: Short-term borrowings $ 4,027,645 $ 4,028,391 $ — $ 4,028,391 $ — Long-term debt 19,094,236 20,650,260 — 11,840,788 8,809,472 Accrued interest payable 209,931 209,931 — 209,931 — Guarantee liability 13,514 13,406 — — 13,406 Derivative liabilities 820,872 820,872 — 820,872 — Subordinated deferrable debt 985,981 1,055,555 — 1,055,555 — Members’ subordinated certificates 1,356,485 1,356,485 — — 1,356,485 May 31, 2019 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 177,922 $ 177,922 $ 177,922 $ — $ — Restricted cash 8,282 8,282 8,282 — — Equity securities 87,533 87,533 87,533 — — Debt securities held-to-maturity 565,444 570,549 — 570,549 — Deferred compensation investments 4,984 4,984 4,984 — — Loans to members, net 25,899,369 25,743,503 — — 25,743,503 Accrued interest receivable 133,605 133,605 — 133,605 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 41,179 41,179 — 41,179 — Liabilities: Short-term borrowings $ 3,607,726 $ 3,608,259 $ — $ 3,608,259 $ — Long-term debt 19,210,793 20,147,183 — 11,482,715 8,664,468 Accrued interest payable 158,997 158,997 — 158,997 — Guarantee liability 13,666 13,307 — — 13,307 Derivative liabilities 391,724 391,724 — 391,724 — Subordinated deferrable debt 986,020 1,004,707 — 1,004,707 — Members’ subordinated certificates 1,357,129 1,357,129 — — 1,357,129 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, 2019 and 2018 . 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, 2019 and May 31, 2019 , and the classification of the valuation technique within the fair value hierarchy. August 31, 2019 May 31, 2019 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Equity securities $ 63,922 $ — $ 63,922 $ 87,533 $ — $ 87,533 Deferred compensation investments 5,923 — 5,923 4,984 — 4,984 Derivative assets — 85,533 85,533 — 41,179 41,179 Derivative liabilities — 820,872 820,872 — 391,724 391,724 Nonrecurring Fair Value We may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis on our condensed consolidated balance sheets. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as in the application of lower of cost or fair value accounting or when we evaluate for impairment. Assets measured at fair value on a nonrecurring basis and still held during the three months ended August 31, 2019 and 2018 consisted of certain impaired loans. Fair value measurement adjustments for individually impaired loans are recorded in the provision for loan losses on our condensed consolidated statements of operations. The fair value of these assets is determined based on the use of significant unobservable inputs, which are considered Level 3 in the fair value hierarchy. We did not have any nonrecurring fair value measurement adjustments recorded in earnings attributable to these assets during the three months ended August 31, 2019 and 2018 . Significant Unobservable Level 3 Inputs Impaired Loans The fair value of impaired loans is typically measured based on the present value of expected future cash flows. Our estimate of expected future cash flows incorporates, among other items, assumptions regarding default rates, loss severities, the amounts and timing of prepayments, as well as the characteristics of the loan. If we expect repayment to be provided solely by the continued operation or sale of the underlying collateral, the fair value of the collateral less estimated costs to sell is used as the basis for measuring fair value. We employ various approaches and techniques to determine the fair value of collateral-dependent loans, including developing market multiples and obtaining valuations from third-party specialists. The significant unobservable inputs used in measuring the fair value of collateral-dependent loans include estimated cash flows before interest, taxes, depreciation and amortization and market multiples for comparable companies. Our Credit Risk Management group reviews the unobservable inputs to assess the reasonableness of the assumptions used and the accuracy of the work performed. We did not have any impaired collateral-dependent loans as of August 31, 2019 or May 31, 2019. |
Business Segments - (Notes)
Business Segments - (Notes) | 3 Months Ended |
Aug. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 13—BUSINESS SEGMENTS The following tables display segment results for the three months ended August 31, 2019 and 2018 , and assets attributable to each segment as of August 31, 2019 and August 31, 2018 . Three Months Ended August 31, 2019 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 287,964 $ 12,347 $ (10,296 ) $ 290,015 Interest expense (213,135 ) (10,432 ) 10,296 (213,271 ) Net interest income 74,829 1,915 — 76,744 Provision for loan losses (30 ) — — (30 ) Net interest income after provision for loan losses 74,799 1,915 — 76,714 Non-interest income: Fee and other income 12,282 7,821 (9,162 ) 10,941 Derivative losses: Derivative cash settlements expense (10,801 ) (242 ) — (11,043 ) Derivative forward value losses (382,762 ) (1,920 ) — (384,682 ) Derivative losses (393,563 ) (2,162 ) — (395,725 ) Unrealized gains on equity securities 1,620 — — 1,620 Total non-interest income (379,661 ) 5,659 (9,162 ) (383,164 ) Non-interest expense: General and administrative expenses (24,739 ) (2,235 ) 1,645 (25,329 ) Other non-interest (expense) income 7,179 (7,517 ) 7,517 7,179 Total non-interest expense (17,560 ) (9,752 ) 9,162 (18,150 ) Loss before income taxes (322,422 ) (2,178 ) — (324,600 ) Income tax benefit — 521 — 521 Net loss $ (322,422 ) $ (1,657 ) $ — $ (324,079 ) August 31, 2019 CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 26,258,810 $ 1,048,892 $ (1,019,103 ) $ 26,288,599 Deferred loan origination costs 11,239 — — 11,239 Loans to members 26,270,049 1,048,892 (1,019,103 ) 26,299,838 Less: Allowance for loan losses (17,565 ) — — (17,565 ) Loans to members, net 26,252,484 1,048,892 (1,019,103 ) 26,282,273 Other assets 1,286,409 105,290 (95,216 ) 1,296,483 Total assets $ 27,538,893 $ 1,154,182 $ (1,114,319 ) $ 27,578,756 Three Months Ended August 31, 2018 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 276,243 $ 12,984 $ (10,736 ) $ 278,491 Interest expense (210,050 ) (10,917 ) 10,736 (210,231 ) Net interest income 66,193 2,067 — 68,260 Benefit for loan losses 109 — — 109 Net interest income after benefit for loan losses 66,302 2,067 — 68,369 Non-interest income: Fee and other income 5,199 564 (1,852 ) 3,911 Derivative gains (losses): Derivative cash settlements expense (12,562 ) (267 ) — (12,829 ) Derivative forward value gains 19,671 341 — 20,012 Derivative gains 7,109 74 — 7,183 Unrealized losses on equity securities (726 ) — — (726 ) Total non-interest income 11,582 638 (1,852 ) 10,368 Non-interest expense: General and administrative expenses (22,425 ) (2,374 ) 1,594 (23,205 ) Losses on early extinguishment of debt (7,100 ) — — (7,100 ) Other non-interest expense (394 ) (258 ) 258 (394 ) Total non-interest expense (29,919 ) (2,632 ) 1,852 (30,699 ) Income before income taxes 47,965 73 — 48,038 Income tax expense — (60 ) — (60 ) Net income $ 47,965 $ 13 $ — $ 47,978 August 31, 2018 CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 25,138,742 $ 1,139,507 $ (1,106,813 ) $ 25,171,436 Deferred loan origination costs 11,218 — — 11,218 Loans to members 25,149,960 1,139,507 (1,106,813 ) 25,182,654 Less: Allowance for loan losses (18,692 ) — — (18,692 ) Loans to members, net 25,131,268 1,139,507 (1,106,813 ) 25,163,962 Other assets 1,501,315 106,902 (95,972 ) 1,512,245 Total assets $ 26,632,583 $ 1,246,409 $ (1,202,785 ) $ 26,676,207 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - (Policies) | 3 Months Ended |
Aug. 31, 2019 | |
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 systems, generation and transmission (“power supply”) systems and related facilities. CFC also provides its members with credit enhancements in the form of letters of credit and guarantees of debt obligations. As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities. CFC is exempt from federal income taxes. |
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”). |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures during the period. Management’s most significant estimates and assumptions involve determining the allowance for loan losses and the fair value of financial assets and liabilities. Actual results could differ from these estimates. We believe these financial statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for the fair presentation of the results for the interim period. The results of operations for interim periods are not necessarily indicative of results for the entire fiscal year. Certain reclassifications have been made to prior periods to conform to the current presentation. |
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 no t have any entities that held foreclosed assets as of August 31, 2019 or May 31, 2019 . All intercompany balances and transactions have been eliminated. National Cooperative Services Corporation (“NCSC”) and Rural Telephone Finance Cooperative (“RTFC”) are VIEs that are required to be consolidated by CFC. NCSC is a taxable member-owned cooperative that may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural,” and for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. RTFC is a taxable Subchapter T cooperative association that provides financing for its rural telecommunications members and their affiliates. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. |
Restricted Cash | Restricted Cash Restricted cash, which consists primarily of member funds held in escrow for certain specifically designed cooperative programs, totaled $9 million and $8 million as of August 31, 2019 and May 31, 2019 , respectively. |
Assets Held for Sale | Assets Held for Sale On March 14, 2018, CFC entered into a purchase and sale agreement (“the agreement”), which was subsequently amended, for the sale of a parcel of land, consisting of approximately 28 acres, located in Loudoun County, Virginia. We designated the property, which had a carrying value of $14 million , as held for sale and reclassified it from fixed assets, net to other assets on our consolidated balance sheet. On July 22, 2019, we closed on the sale of the land and received net proceeds of $22 million , resulting in a gain of $8 million on the sale of this property, which is reported in other non-interest income (expense) on our condensed consolidated statements of operations. |
Revenue Recognition, Interest | The following table presents interest income, by interest-earning asset category, for the three months ended August 31, 2019 and 2018 . Three Months Ended August 31, (Dollars in thousands) 2019 2018 Interest income by interest-earning asset type: Long-term fixed-rate loans (1) $ 258,478 $ 251,801 Long-term variable-rate loans 9,756 9,381 Line of credit loans 16,033 11,633 TDR loans (2) 206 218 Other income, net (3) (284 ) (325 ) Total loans 284,189 272,708 Cash, time deposits and investment securities 5,826 5,783 Total interest income $ 290,015 $ 278,491 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. (2) Troubled debt restructured (“TDR”) loans. (3) Consists of late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs. Deferred income of $56 million and $58 million as of August 31, 2019 and May 31, 2019 , respectively, consists primarily of deferred loan conversion fees totaling $50 million and $52 million , respectively. Deferred loan conversion fees are recognized in interest income using the effective interest method. |
Interest Expense, Policy | The following table presents interest expense, by debt product type, for the three months ended August 31, 2019 and 2018 . Three Months Ended August 31, (Dollars in thousands) 2019 2018 Interest expense by debt product type: (1)(2) Short-term borrowings $ 22,822 $ 19,419 Medium-term notes 32,076 32,410 Collateral trust bonds 65,381 77,705 Guaranteed Underwriter Program notes payable 40,433 35,334 Farmer Mac notes payable 25,074 21,111 Other notes payable 254 322 Subordinated deferrable debt 12,882 9,417 Subordinated certificates 14,349 14,513 Total interest expense $ 213,271 $ 210,231 ____________________________ (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. |
Recent Accounting Changes and Other Developments | Recent Accounting Changes and Other Developments Accounting Standards Adopted in Fiscal Year 2020 Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Acti vities, which expands the types of risk management strategies that qualify for hedge accounting treatment to more closely align the results of hedge accounting with the economics of certain risk management activities and simplifies certain hedge documentation and assessment requirement. It also eliminates the concept of separately recording hedge ineffectiveness and expands disclosure requirements. 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. We adopted this guidance on June 1, 2019. Hedge accounting is elective, and we currently apply hedge accounting on a limited basis, specifically when we enter into treasury rate lock agreements. The adoption of this guidance did not have an impact on our consolidated financial statements or cash flows. If we continue to elect not to apply hedge accounting to our interest rate swaps, the guidance will not have an impact on our consolidated financial statements or cash flows. Receivables—Nonrefundable Fees and Other Cost In March 2017, the FASB issued ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs, which shortens the amortization period for the premium on certain callable debt securities to the earliest call date rather the maturity date. The guidance is applicable to any individual debt security, purchased at a premium, with an explicit and noncontingent call feature with a fixed price on a preset date. The guidance does not impact the accounting for purchased callable debt securities held at a discount. The guidance is effective for public entities in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We adopted this guidance on June 1, 2019. The adoption of this guidance did not have a material impact on our consolidated financial statements or cash flows. Leases In February 2016, the FASB issued ASU 2016-02, Leases, which provides new guidance that is intended to improve financial reporting about leasing transactions. The new guidance requires the recognition of a right-of use asset and lease liability on the consolidated balance sheet by lessees for those leases classified as operating leases under previous guidance. It also requires new disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. We adopted this guidance on June 1, 2019. The adoption of this guidance did not have a material impact on our consolidated financial statements or cash flows. Accounting Standards Issued But Not Yet Adopted Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement—Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The guidance is effective for public entities for fiscal years beginning after December 15, 2019, 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, 2020. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements or cash flows. 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 replaces the existing incurred credit loss model and establishes a single credit loss framework based on a current expected credit loss model for financial assets carried at amortized cost, including loans and held-to- maturity debt securities. The current expected loss model requires an entity to estimate credit losses expected over the life of the credit exposure upon initial recognition of that exposure when the financial asset is originated or acquired, which will generally result in earlier recognition of credit losses. The guidance also amends the other-than-temporary model for available-for-sale debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security. The new guidance also requires expanded credit quality disclosures. The new guidance is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019. This guidance is effective for us on June 1, 2020. While early adoption is permitted, we do not expect to elect that option. We are continuing to evaluate the impact of the guidance on our consolidated financial statements, including assessing and evaluating assumptions and models to estimate losses. Upon adoption of the guidance on June 1, 2020, we will be required to record a cumulative effect adjustment to retained earnings for the impact as of the date of adoption. The impact will depend on our portfolio composition and credit quality at the date of adoption, as well as forecasts at that time. |
Derivatives | 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. Our derivatives transactions are not collateralized and do not include collateralization agreements with counterparties. 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 receivable or accrued interest payable. If we do not elect hedge accounting treatment, changes in the fair value of derivative instruments, which consist of net accrued periodic derivative cash settlements expense and derivative forward value amounts, are recognized in our condensed 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 recognized in the same line item on our condensed consolidated statements of operations as the earnings effect of the related hedged item. Changes in the fair value of derivatives designated as qualifying cash flow hedges are recorded as a component of AOCI. Those amounts are reclassified into earnings in the same period during which the forecasted transaction impacts earnings and presented in the same line item on our condensed consolidated statements of operations as the earnings effect of the related hedged item. We generally do not designate interest rate swaps, which represented all of our outstanding derivatives as of August 31, 2019 , for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our condensed consolidated statements of operations under derivative gains (losses). Net periodic cash settlements expense related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. |
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 2019 Form 10-K. |
Impaired loans | Impaired Loans The fair value of impaired loans is typically measured based on the present value of expected future cash flows. Our estimate of expected future cash flows incorporates, among other items, assumptions regarding default rates, loss severities, the amounts and timing of prepayments, as well as the characteristics of the loan. If we expect repayment to be provided solely by the continued operation or sale of the underlying collateral, the fair value of the collateral less estimated costs to sell is used as the basis for measuring fair value. We employ various approaches and techniques to determine the fair value of collateral-dependent loans, including developing market multiples and obtaining valuations from third-party specialists. The significant unobservable inputs used in measuring the fair value of collateral-dependent loans include estimated cash flows before interest, taxes, depreciation and amortization and market multiples for comparable companies. Our Credit Risk Management group reviews the unobservable inputs to assess the reasonableness of the assumptions used and the accuracy of the work performed. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
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, 2019 and 2018 . Three Months Ended August 31, (Dollars in thousands) 2019 2018 Interest income by interest-earning asset type: Long-term fixed-rate loans (1) $ 258,478 $ 251,801 Long-term variable-rate loans 9,756 9,381 Line of credit loans 16,033 11,633 TDR loans (2) 206 218 Other income, net (3) (284 ) (325 ) Total loans 284,189 272,708 Cash, time deposits and investment securities 5,826 5,783 Total interest income $ 290,015 $ 278,491 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. (2) Troubled debt restructured (“TDR”) loans. (3) Consists of late payment fees, commitment 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, 2019 and 2018 . Three Months Ended August 31, (Dollars in thousands) 2019 2018 Interest expense by debt product type: (1)(2) Short-term borrowings $ 22,822 $ 19,419 Medium-term notes 32,076 32,410 Collateral trust bonds 65,381 77,705 Guaranteed Underwriter Program notes payable 40,433 35,334 Farmer Mac notes payable 25,074 21,111 Other notes payable 254 322 Subordinated deferrable debt 12,882 9,417 Subordinated certificates 14,349 14,513 Total interest expense $ 213,271 $ 210,231 ____________________________ (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, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table provides information on incremental consolidated assets and liabilities of VIEs included in CFC’s condensed consolidated financial statements, after intercompany eliminations, as of August 31, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 Total loans outstanding $ 1,048,892 $ 1,087,988 Other assets 10,074 10,963 Total assets $ 1,058,966 $ 1,098,951 Long-term debt $ 6,000 $ 6,000 Other liabilities 36,878 33,385 Total liabilities $ 42,878 $ 39,385 |
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, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,019,103 1,059,629 Credit enhancements: CFC third-party guarantees 11,339 10,091 Other credit enhancements 16,171 14,251 Total credit enhancements (2) 27,510 24,342 Total outstanding commitments 1,046,613 1,083,971 CFC available credit commitments $ 4,453,387 $ 4,416,029 ____________________________ (1) Borrowings payable to CFC are eliminated in consolidation. (2) Excludes interest due on these instruments. |
Investment Securities - (Tables
Investment Securities - (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Investments [Abstract] | |
Equity Securities | The following table presents the fair value of our equity securities, all of which had readily determinable fair values, as of August 31, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 Equity securities at fair value: Farmer Mac—Series A, B and C non-cumulative preferred stock $ 58,166 $ 82,445 Farmer Mac—class A common stock 5,756 5,088 Total equity securities at fair value $ 63,922 $ 87,533 |
Unrealized Gain (Loss) on Investments | The following tables present the amortized cost and fair value of our debt securities and the corresponding gross unrealized gains and losses, by classification category and major security type, as of August 31, 2019 and May 31, 2019 . August 31, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities held-to-maturity: Certificates of deposit $ 6,123 $ 2 $ — $ 6,125 Commercial paper 5,950 — — 5,950 U.S. agency debt securities 4,563 201 — 4,764 Corporate debt securities 481,914 9,426 (219 ) 491,121 Commercial MBS: Agency 7,243 473 — 7,716 Non-agency 3,453 — (5 ) 3,448 Total commercial MBS 10,696 473 (5 ) 11,164 U.S. state and municipality debt securities 9,606 520 — 10,126 Foreign government debt securities 1,257 58 — 1,315 Other ABS (1) 49,466 448 (3 ) 49,911 Total debt securities held-to-maturity $ 569,575 $ 11,128 $ (227 ) $ 580,476 May 31, 2019 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities held-to-maturity: Certificates of deposit $ 1,000 $ — $ — $ 1,000 Commercial paper 12,395 — — 12,395 U.S. agency debt securities 3,207 108 — 3,315 Corporate debt securities 478,578 4,989 (912 ) 482,655 Commercial MBS: Agency 7,255 291 — 7,546 Non-agency 3,453 — (7 ) 3,446 Total commercial MBS 10,708 291 (7 ) 10,992 U.S. state and municipality debt securities 9,608 352 — 9,960 Foreign government debt securities 1,254 42 — 1,296 Other ABS (1) 48,694 290 (48 ) 48,936 Total debt securities held-to-maturity $ 565,444 $ 6,072 $ (967 ) $ 570,549 ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. |
Schedule of Unrealized Loss on Investments | The following table presents the fair value and gross unrealized losses for debt securities in a gross loss position, aggregated by security type, and the length of time the securities have been in a continuous unrealized loss position as of August 31, 2019 and May 31, 2019 . The securities are segregated between investments that have been in a continuous unrealized loss position for less than 12 months and 12 months or more based on the point in time that the fair value declined below the amortized cost basis. August 31, 2019 Unrealized Loss Position Less than 12 Months Unrealized Loss Position 12 Months or Longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Debt securities held-to-maturity: Corporate debt securities $ 50,895 $ (75 ) $ 45,650 $ (144 ) $ 96,545 $ (219 ) Commercial MBS, non-agency 3,447 (5 ) — — 3,447 (5 ) Other ABS (1) — — 7,909 (3 ) 7,909 (3 ) Total debt securities held-to-maturity $ 54,342 $ (80 ) $ 53,559 $ (147 ) $ 107,901 $ (227 ) May 31, 2019 Unrealized Loss Position Less than 12 Months Unrealized Loss Position 12 Months or Longer Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Debt securities held-to-maturity: Commercial paper (2) $ 2,688 $ — $ — $ — $ 2,688 $ — Corporate debt securities 45,999 (198 ) 164,086 (714 ) 210,085 (912 ) Commercial MBS, non-agency 1,996 (4 ) 1,448 (3 ) 3,444 (7 ) Other ABS (1) 1,982 (4 ) 13,840 (44 ) 15,822 (48 ) Total debt securities held-to-maturity $ 52,665 $ (206 ) $ 179,374 $ (761 ) $ 232,039 $ (967 ) ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. (2) Unrealized losses on the commercial paper investments are less than $1,000 . |
Investments Classified by Contractual Maturity Date | The following table presents, by major security type, the remaining contractual maturity based on amortized cost and fair value of our held-to-maturity investment securities as of August 31, 2019 and May 31, 2019 . Because borrowers may have the right to call or prepay certain obligations, the expected maturities of our investments may differ from the scheduled contractual maturities presented below. August 31, 2019 (Dollars in thousands) Due in 1 Year or Less Due > 1 Year through 5 Years Due > 5 Years through 10 Years Due >10 Years Total Amortized cost: Certificates of deposit $ 5,123 $ 1,000 $ — $ — $ 6,123 Commercial paper 5,950 — — — 5,950 U.S. agency debt securities — 2,682 1,881 — 4,563 Corporate debt securities 61,766 408,037 12,111 — 481,914 Commercial MBS: Agency — 2,078 5,165 — 7,243 Non-agency — — — 3,453 3,453 Total commercial MBS — 2,078 5,165 3,453 10,696 U.S. state and municipality debt securities — 9,606 — — 9,606 Foreign government debt securities — 1,257 — — 1,257 Other ABS (1) — 49,466 — — 49,466 Total $ 72,839 $ 474,126 $ 19,157 $ 3,453 $ 569,575 Fair value: Certificates of deposit $ 5,125 $ 1,000 $ — $ — $ 6,125 Commercial paper 5,950 — — — 5,950 U.S. agency debt securities — 2,811 1,953 — 4,764 Corporate debt securities 61,784 416,655 12,682 — 491,121 Commercial MBS: Agency — 2,210 5,506 — 7,716 Non-Agency — — — 3,448 3,448 Total commercial MBS — 2,210 5,506 3,448 11,164 U.S. state and municipality debt securities — 10,126 — — 10,126 Foreign government debt securities — 1,315 — — 1,315 Other ABS (1) — 49,911 — — 49,911 Total $ 72,859 $ 484,028 $ 20,141 $ 3,448 $ 580,476 Weighted average coupon (2) 2.32 % 3.03 % 3.00 % 3.02 % 2.94 % May 31, 2019 (Dollars in thousands) Due in 1 Year or Less Due > 1 Year through 5 Years Due > 5 Years through 10 Years Due >10 Years Total Amortized cost: Certificates of deposit $ — $ 1,000 $ — $ — $ 1,000 Commercial paper 12,395 — — — 12,395 U.S. agency debt securities — 2,678 529 — 3,207 Corporate debt securities 51,923 414,788 11,867 — 478,578 Commercial MBS: Agency — 310 6,945 — 7,255 Non-agency — — — 3,453 3,453 Total Commercial MBS — 310 6,945 3,453 10,708 U.S. state and municipality debt securities — 9,608 — — 9,608 Foreign government debt securities — 1,254 — — 1,254 Other ABS (1) 510 45,730 2,454 — 48,694 Total $ 64,828 $ 475,368 $ 21,795 $ 3,453 $ 565,444 Fair value: Certificates of deposit $ — $ 1,000 $ — $ — $ 1,000 Commercial paper 12,395 — — — 12,395 U.S. agency debt securities — 2,769 546 — 3,315 Corporate debt securities 51,818 418,606 12,231 — 482,655 Commercial MBS: Agency — 317 7,229 — 7,546 Non-agency — — — 3,446 3,446 Total commercial MBS — 317 7,229 3,446 10,992 U.S. state and municipality debt securities — 9,960 — — 9,960 Foreign government debt securities — 1,296 — — 1,296 Other ABS (1) 509 45,916 2,511 — 48,936 Total $ 64,722 $ 479,864 $ 22,517 $ 3,446 $ 570,549 Weighted average coupon (2) 2.08 % 3.10 % 3.07 % 3.26 % 2.98 % ____________________________ (1) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. (2) Calculated based on the weighted average coupon rate, which excludes the impact of amortization of premium and accretion of discount. |
Loans - (Tables)
Loans - (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
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 the outstanding principal balance of loans to members, including deferred loan origination costs, and unadvanced loan commitments by loan type and member class, as of August 31, 2019 and May 31, 2019 . August 31, 2019 May 31, 2019 (Dollars in thousands) Loans Outstanding Unadvanced Commitments (1) Loans Outstanding Unadvanced Commitments (1) Loan type: Long-term loans: Fixed rate $ 23,677,234 $ — $ 23,094,253 $ — Variable rate 962,541 5,140,530 1,066,880 5,448,636 Total long-term loans 24,639,775 5,140,530 24,161,133 5,448,636 Lines of credit 1,648,824 7,913,213 1,744,531 7,788,922 Total loans outstanding 26,288,599 13,053,743 25,905,664 13,237,558 Deferred loan origination costs 11,239 — 11,240 — Loans to members $ 26,299,838 $ 13,053,743 $ 25,916,904 $ 13,237,558 Member class: CFC: Distribution $ 20,484,460 $ 8,568,888 $ 20,155,266 $ 8,773,018 Power supply 4,671,035 3,456,266 4,578,841 3,466,680 Statewide and associate 84,212 168,564 83,569 165,687 Total CFC 25,239,707 12,193,718 24,817,676 12,405,385 NCSC 697,791 575,888 742,888 552,840 RTFC 351,101 284,137 345,100 279,333 Total loans outstanding 26,288,599 13,053,743 25,905,664 13,237,558 Deferred loan origination costs 11,239 — 11,240 — Loans to members $ 26,299,838 $ 13,053,743 $ 25,916,904 $ 13,237,558 ____________________________ (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, 2019 and the related maturities by fiscal year and thereafter by loan type: Available Balance Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2020 2021 2022 2023 2024 Thereafter Line of credit loans $ 7,913,213 $ 609,206 $ 4,128,566 $ 485,285 $ 1,364,426 $ 1,055,813 $ 269,917 Long-term loans 5,140,530 306,460 665,361 1,295,466 1,080,699 1,634,791 157,753 Total $ 13,053,743 $ 915,666 $ 4,793,927 $ 1,780,751 $ 2,445,125 $ 2,690,604 $ 427,670 |
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, 2019 . Available Balance Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2020 2021 2022 2023 2024 Thereafter Committed lines of credit $3,003,647 $260,886 $478,489 $171,875 $1,166,687 $811,510 $114,200 |
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 under USDA’s Guaranteed Underwriter Program (“Guaranteed Underwriter Program”) and the amount of the corresponding debt outstanding as of August 31, 2019 and May 31, 2019 . See “Note 6—Short-Term Borrowings” and “Note 7—Long-Term Debt” for information on our borrowings. (Dollars in thousands) August 31, 2019 May 31, 2019 Collateral trust bonds: 2007 indenture: Distribution system mortgage notes $ 8,557,299 $ 8,775,231 RUS-guaranteed loans qualifying as permitted investments 133,129 134,678 Total pledged collateral $ 8,690,428 $ 8,909,909 Collateral trust bonds outstanding 7,622,711 7,622,711 1994 indenture: Distribution system mortgage notes $ 46,522 $ 47,331 Collateral trust bonds outstanding 40,000 40,000 Farmer Mac: Distribution and power supply system mortgage notes $ 3,760,219 $ 3,751,798 Notes payable outstanding 2,962,478 3,054,914 Clean Renewable Energy Bonds Series 2009A: Distribution and power supply system mortgage notes $ 9,799 $ 10,349 Cash 802 415 Total pledged collateral $ 10,601 $ 10,764 Notes payable outstanding 9,225 9,225 Federal Financing Bank: Distribution and power supply system mortgage notes $ 6,127,684 $ 6,157,218 Notes payable outstanding 5,387,155 5,410,507 |
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 borrower risk rating category, based on the risk ratings used in the estimation of our allowance for loan losses as of August 31, 2019 and May 31, 2019 . For purposes of these tables and for determining the allowance for loan losses, loans to borrowers that are supported by a full guarantee of repayment by the parent company are grouped in the same risk rating category of the guarantor parent company, rather than the risk rating category of the subsidiary borrower. August 31, 2019 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 20,354,654 $ 8,222 $ 121,584 $ — $ 20,484,460 Power supply 4,623,131 — 47,904 — 4,671,035 Statewide and associate 69,212 15,000 — — 84,212 CFC total 25,046,997 23,222 169,488 — 25,239,707 NCSC 697,791 — — — 697,791 RTFC 345,634 — 5,467 — 351,101 Total loans outstanding $ 26,090,422 $ 23,222 $ 174,955 $ — $ 26,288,599 May 31, 2019 (Dollars in thousands) Pass Special Mention Substandard Doubtful Total CFC: Distribution $ 20,022,193 $ 10,375 $ 122,698 $ — $ 20,155,266 Power supply 4,530,708 — 48,133 — 4,578,841 Statewide and associate 68,569 15,000 — — 83,569 CFC total 24,621,470 25,375 170,831 — 24,817,676 NCSC 742,888 — — — 742,888 RTFC 339,508 — 5,592 — 345,100 Total loans outstanding $ 25,703,866 $ 25,375 $ 176,423 $ — $ 25,905,664 |
Past Due Financing Receivables | The following tables present the payment status of loans outstanding by member class as of August 31, 2019 and May 31, 2019 . As indicated in the table, we did not have any past due loans as of either August 31, 2019 or May 31, 2019 . August 31, 2019 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Past Due Total Loans Outstanding Nonaccrual Loans CFC: Distribution $ 20,484,460 $ — $ — $ — $ 20,484,460 $ — Power supply 4,671,035 — — — 4,671,035 — Statewide and associate 84,212 — — — 84,212 — CFC total 25,239,707 — — — 25,239,707 — NCSC 697,791 — — — 697,791 — RTFC 351,101 — — — 351,101 — Total loans outstanding $ 26,288,599 $ — $ — $ — $ 26,288,599 $ — Percentage of total loans 100.00 % — % — % — % 100.00 % — % May 31, 2019 (Dollars in thousands) Current 30-89 Days Past Due 90 Days or More Past Due (1) Total Total Loans Outstanding Nonaccrual Loans CFC: Distribution $ 20,155,266 $ — $ — $ — $ 20,155,266 $ — Power supply 4,578,841 — — — 4,578,841 — Statewide and associate 83,569 — — — 83,569 — CFC total 24,817,676 — — — 24,817,676 — NCSC 742,888 — — — 742,888 — RTFC 345,100 — — — 345,100 — Total loans outstanding $ 25,905,664 $ — $ — $ — $ 25,905,664 $ — 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, 2019 and May 31, 2019 . August 31, 2019 May 31, 2019 (Dollars in thousands) Loans Outstanding % of Total Loans Unadvanced Commitments Loans Outstanding % of Total Loans Unadvanced Commitments TDR loans: Performing TDR loans: CFC/Distribution $ 5,755 0.02 % $ — $ 6,261 0.03 % $ — RTFC 5,467 0.02 — 5,592 0.02 — Total performing TDR loans 11,222 0.04 — 11,853 0.05 — Total TDR loans $ 11,222 0.04 % $ — $ 11,853 0.05 % $ — |
Impaired Financing Receivable with Related Allowance Recorded Investment | The following table provides information on loans classified as individually impaired as of August 31, 2019 and May 31, 2019 . August 31, 2019 May 31, 2019 (Dollars in thousands) Recorded Investment Related Allowance Recorded Investment Related Allowance With no specific allowance recorded: CFC $ 5,755 $ — $ 6,261 $ — With a specific allowance recorded: RTFC 5,467 989 5,592 1,021 Total impaired loans $ 11,222 $ 989 $ 11,853 $ 1,021 |
Schedule of average recorded investment in impaired loans and the interest income recognized by member class | The following table presents, by company, the average recorded investment for individually impaired loans and the interest income recognized on these loans for the three months ended August 31, 2019 and 2018 . Three Months Ended August 31, 2019 2018 2019 2018 (Dollars in thousands) Average Recorded Investment Interest Income Recognized CFC $ 6,239 $ 6,504 $ 137 $ 142 RTFC 5,547 6,048 69 76 Total impaired loans $ 11,786 $ 12,552 $ 206 $ 218 |
Allowance for Loan Losses - (Ta
Allowance for Loan Losses - (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses on Financing Receivables | The following tables summarize changes, by company, in the allowance for loan losses as of and for the three months ended August 31, 2019 and 2018 . Three Months Ended August 31, 2019 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2019 $ 13,120 $ 2,007 $ 2,408 $ 17,535 Provision (benefit) for loan losses (158 ) 70 118 30 Balance as of August 31, 2019 $ 12,962 $ 2,077 $ 2,526 $ 17,565 Three Months Ended August 31, 2018 (Dollars in thousands) CFC NCSC RTFC Total Balance as of May 31, 2018 $ 12,300 $ 2,082 $ 4,419 $ 18,801 Provision (benefit) for loan losses 208 (70 ) (247 ) (109 ) Balance as of August 31, 2018 $ 12,508 $ 2,012 $ 4,172 $ 18,692 |
Allowance for Credit Losses and Recorded Investment in Financing Receivables | The following tables present, by company, the components of our allowance for loan losses and the recorded investment of the related loans as of August 31, 2019 and May 31, 2019 . August 31, 2019 (Dollars in thousands) CFC NCSC RTFC Total Ending balance of the allowance: Collective allowance $ 12,962 $ 2,077 $ 1,537 $ 16,576 Specific allowance — — 989 989 Total ending balance of the allowance $ 12,962 $ 2,077 $ 2,526 $ 17,565 Recorded investment in loans: Collectively evaluated loans $ 25,233,952 $ 697,791 $ 345,634 $ 26,277,377 Individually evaluated loans 5,755 — 5,467 11,222 Total recorded investment in loans $ 25,239,707 $ 697,791 $ 351,101 $ 26,288,599 Total recorded investment in loans, net (1) $ 25,226,745 $ 695,714 $ 348,575 $ 26,271,034 Allowance coverage ratio: Allowance as a percentage of total recorded investment in loans 0.05 % 0.30 % 0.72 % 0.07 % May 31, 2019 (Dollars in thousands) CFC NCSC RTFC Total Ending balance of the allowance: Collective allowance $ 13,120 $ 2,007 $ 1,387 $ 16,514 Specific allowance — — 1,021 1,021 Total ending balance of the allowance $ 13,120 $ 2,007 $ 2,408 $ 17,535 Recorded investment in loans: Collectively evaluated loans $ 24,811,415 $ 742,888 $ 339,508 $ 25,893,811 Individually evaluated loans 6,261 — 5,592 11,853 Total recorded investment in loans $ 24,817,676 $ 742,888 $ 345,100 $ 25,905,664 Total recorded investment in loans, net (1) $ 24,804,556 $ 740,881 $ 342,692 $ 25,888,129 Allowance coverage ratio: Allowance as a percentage of total recorded investment in loans 0.05 % 0.27 % 0.70 % 0.07 % ____________________________ (1) Excludes unamortized deferred loan origination costs of $11 million as of both August 31, 2019 and May 31, 2019 . |
Short-Term Borrowings - (Tables
Short-Term Borrowings - (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The following table provides comparative information on our short-term borrowings as of August 31, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 Short-term borrowings: Commercial paper: Commercial paper sold through dealers, net of discounts $ 829,763 $ 944,616 Commercial paper sold directly to members, at par 1,240,830 1,111,795 Total commercial paper 2,070,593 2,056,411 Select notes to members 1,277,927 1,023,952 Daily liquidity fund notes to members 435,070 298,817 Medium-term notes to members 244,055 228,546 Total short-term borrowings $ 4,027,645 $ 3,607,726 |
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, 2019 and May 31, 2019 . August 31, 2019 May 31, 2019 (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 $ 1,440 $ — $ 1,440 $ 1,440 $ — $ 1,440 November 28, 2021 7.5 bps 5-year agreement 1,535 3 1,532 1,535 3 1,532 November 28, 2023 10 bps Total $ 2,975 $ 3 $ 2,972 $ 2,975 $ 3 $ 2,972 ____________________________ (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, 2019 | |
Debt Instruments [Abstract] | |
Summary of long-term debt outstanding | The following table displays long-term debt outstanding, by debt type, as of August 31, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 Secured long-term debt: Collateral trust bonds $ 7,662,711 $ 7,662,711 Unamortized discount (242,123 ) (244,643 ) Debt issuance costs (32,952 ) (34,336 ) Total collateral trust bonds 7,387,636 7,383,732 Guaranteed Underwriter Program notes payable 5,387,155 5,410,507 Farmer Mac notes payable 2,962,478 3,054,914 Other secured notes payable 9,225 9,225 Debt issuance costs (162 ) (178 ) Total other secured notes payable 9,063 9,047 Total secured notes payable 8,358,696 8,474,468 Total secured long-term debt 15,746,332 15,858,200 Unsecured long-term debt: Medium-term notes sold through dealers 2,935,540 2,962,375 Medium-term notes sold to members 418,208 397,080 Subtotal medium-term notes 3,353,748 3,359,455 Unamortized discount (848 ) (931 ) Debt issuance costs (18,492 ) (19,399 ) Total unsecured medium-term notes 3,334,408 3,339,125 Unsecured notes payable 13,701 13,701 Unamortized discount (164 ) (187 ) Debt issuance costs (41 ) (46 ) Total unsecured notes payable 13,496 13,468 Total unsecured long-term debt 3,347,904 3,352,593 Total long-term debt $ 19,094,236 $ 19,210,793 |
Subordinated Deferrable Debt _2
Subordinated Deferrable Debt - (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
Subordinated Debt [Abstract] | |
Schedule of Subordinated Borrowing | The following table presents subordinated deferrable debt outstanding as of August 31, 2019 and May 31, 2019 . See “Note 8—Subordinated Deferrable Debt” of our 2019 Form 10-K for additional information on the terms of our subordinated deferrable debt outstanding. (Dollars in thousands) August 31, 2019 May 31, 2019 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 5.50% due 2064 with a call date of May 15, 2024 250,000 250,000 Debt issuance costs (14,019 ) (13,980 ) Total subordinated deferrable debt $ 985,981 $ 986,020 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities - (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
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, 2019 and May 31, 2019 . The substantial majority of our interest rate swaps use an index based on LIBOR for either the pay or receive leg of the swap agreement. August 31, 2019 May 31, 2019 (Dollars in thousands) Notional Amount Weighted- Average Rate Paid Weighted- Average Rate Received Notional Weighted- Weighted- Pay-fixed swaps $ 7,319,015 2.84 % 2.27 % $ 7,379,280 2.83 % 2.60 % Receive-fixed swaps 3,399,000 2.96 2.56 3,399,000 3.25 2.56 Total interest rate swaps 10,718,015 2.88 2.36 10,778,280 2.97 2.58 Forward pay-fixed swaps 65,000 65,000 Total $ 10,783,015 $ 10,843,280 |
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 by derivatives type, as of August 31, 2019 and May 31, 2019 . August 31, 2019 May 31, 2019 (Dollars in thousands) Fair Value Notional Balance Fair Value Notional Balance Derivative assets: Interest rate swaps $ 85,533 $ 2,641,803 $ 41,179 $ 2,332,104 Derivative liabilities: Interest rate swaps $ 820,872 $ 8,141,212 $ 391,724 $ 8,511,176 |
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, 2019 and May 31, 2019 , and provides information on the impact of netting provisions and collateral pledged, if any. August 31, 2019 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 $ 85,533 $ — $ 85,533 $ 85,533 $ — $ — Derivative liabilities: Interest rate swaps 820,872 — 820,872 85,533 — 735,339 May 31, 2019 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 $ 41,179 $ — $ 41,179 $ 41,176 $ — $ 3 Derivative liabilities: Interest rate swaps 391,724 — 391,724 41,176 — 350,548 |
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, 2019 and May 31, 2019 , and provides information on the impact of netting provisions and collateral pledged, if any. August 31, 2019 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 $ 85,533 $ — $ 85,533 $ 85,533 $ — $ — Derivative liabilities: Interest rate swaps 820,872 — 820,872 85,533 — 735,339 May 31, 2019 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 $ 41,179 $ — $ 41,179 $ 41,176 $ — $ 3 Derivative liabilities: Interest rate swaps 391,724 — 391,724 41,176 — 350,548 |
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 three months ended August 31, 2019 and 2018 . Three Months Ended August 31, (Dollars in thousands) 2019 2018 Derivative gains (losses) attributable to: Derivative cash settlements expense $ (11,043 ) $ (12,829 ) Derivative forward value gains (losses) (384,682 ) 20,012 Derivative gains (losses) $ (395,725 ) $ 7,183 |
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, 2019 , 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) $ 50,460 $ (10,748 ) $ — $ (10,748 ) Falls below Baa1/BBB+ 6,989,288 (471,249 ) — (471,249 ) Falls to or below Baa2/BBB (2) 558,159 (20,778 ) — (20,778 ) Falls below Baa3/BBB- 221,473 (14,759 ) — (14,759 ) Total $ 7,819,380 $ (517,534 ) $ — $ (517,534 ) ____________________________ (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, 2019 | |
Stockholders' Equity Note [Abstract] | |
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, 2019 and 2018 . Three Months Ended August 31, 2019 (Dollars in thousands) Unrealized Gains (Losses) Equity Securities Unrealized Gains Derivatives (1 ) Unrealized Gains (Losses) Cash Flow Hedges Unrealized Losses Defined Benefit Plan ( 2) Total Beginning balance $ — $ 2,571 $ — $ (2,718 ) $ (147 ) (Gains) losses reclassified into earnings — (112 ) — 145 33 Ending balance $ — $ 2,459 $ — $ (2,573 ) $ (114 ) Three Months Ended August 31, 2018 (Dollars in thousands) Unrealized Gains (Losses) Equity Securities Unrealized Gains Derivatives (1) Unrealized Gains (Losses) Cash Flow Hedges Unrealized Losses Defined Benefit Plan ( 2) Total Beginning balance $ 8,794 $ 3,039 $ (1,059 ) $ (2,230 ) $ 8,544 Cumulative effect of changes from adoption of new accounting standards (8,794 ) — — — (8,794 ) Unrealized gains — — 24 — 24 (Gains) losses reclassified into earnings — (119 ) — 131 12 Other comprehensive income (loss) — (119 ) 24 131 36 Ending balance $ — $ 2,920 $ (1,035 ) $ (2,099 ) $ (214 ) |
Guarantees - (Tables)
Guarantees - (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
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, 2019 and May 31, 2019 . (Dollars in thousands) August 31, 2019 May 31, 2019 Total by type: Long-term tax-exempt bonds (1) $ 311,590 $ 312,190 Letters of credit (2) 342,831 379,001 Other guarantees 146,906 146,244 Total $ 801,327 $ 837,435 Total by member class: CFC: Distribution $ 242,630 $ 235,919 Power supply 542,060 586,717 Statewide and associate 5,298 4,708 CFC total 789,988 827,344 NCSC 9,765 8,517 RTFC 1,574 1,574 Total $ 801,327 $ 837,435 ____________________________ (1) Represents the outstanding principal amount of long-term fixed-rate and variable-rate guaranteed bonds. (2) Reflects our maximum potential exposure for letters of credit. |
Fair Value Measurement - (Table
Fair Value Measurement - (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
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, 2019 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 231,050 $ 231,050 $ 231,050 $ — $ — Restricted cash 9,138 9,138 9,138 — — Equity securities 63,922 63,922 63,922 — — Debt securities held-to-maturity 569,575 580,476 — 580,476 — Deferred compensation investments 5,923 5,923 5,923 — — Loans to members, net 26,282,273 28,353,451 — — 28,353,451 Accrued interest receivable 133,119 133,119 — 133,119 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 85,533 85,533 — 85,533 — Liabilities: Short-term borrowings $ 4,027,645 $ 4,028,391 $ — $ 4,028,391 $ — Long-term debt 19,094,236 20,650,260 — 11,840,788 8,809,472 Accrued interest payable 209,931 209,931 — 209,931 — Guarantee liability 13,514 13,406 — — 13,406 Derivative liabilities 820,872 820,872 — 820,872 — Subordinated deferrable debt 985,981 1,055,555 — 1,055,555 — Members’ subordinated certificates 1,356,485 1,356,485 — — 1,356,485 May 31, 2019 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 177,922 $ 177,922 $ 177,922 $ — $ — Restricted cash 8,282 8,282 8,282 — — Equity securities 87,533 87,533 87,533 — — Debt securities held-to-maturity 565,444 570,549 — 570,549 — Deferred compensation investments 4,984 4,984 4,984 — — Loans to members, net 25,899,369 25,743,503 — — 25,743,503 Accrued interest receivable 133,605 133,605 — 133,605 — Debt service reserve funds 17,151 17,151 17,151 — — Derivative assets 41,179 41,179 — 41,179 — Liabilities: Short-term borrowings $ 3,607,726 $ 3,608,259 $ — $ 3,608,259 $ — Long-term debt 19,210,793 20,147,183 — 11,482,715 8,664,468 Accrued interest payable 158,997 158,997 — 158,997 — Guarantee liability 13,666 13,307 — — 13,307 Derivative liabilities 391,724 391,724 — 391,724 — Subordinated deferrable debt 986,020 1,004,707 — 1,004,707 — Members’ subordinated certificates 1,357,129 1,357,129 — — 1,357,129 |
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, 2019 and May 31, 2019 , and the classification of the valuation technique within the fair value hierarchy. August 31, 2019 May 31, 2019 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Equity securities $ 63,922 $ — $ 63,922 $ 87,533 $ — $ 87,533 Deferred compensation investments 5,923 — 5,923 4,984 — 4,984 Derivative assets — 85,533 85,533 — 41,179 41,179 Derivative liabilities — 820,872 820,872 — 391,724 391,724 |
Business Segments - (Tables)
Business Segments - (Tables) | 3 Months Ended |
Aug. 31, 2019 | |
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, 2019 and 2018 , and assets attributable to each segment as of August 31, 2019 and August 31, 2018 . Three Months Ended August 31, 2019 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 287,964 $ 12,347 $ (10,296 ) $ 290,015 Interest expense (213,135 ) (10,432 ) 10,296 (213,271 ) Net interest income 74,829 1,915 — 76,744 Provision for loan losses (30 ) — — (30 ) Net interest income after provision for loan losses 74,799 1,915 — 76,714 Non-interest income: Fee and other income 12,282 7,821 (9,162 ) 10,941 Derivative losses: Derivative cash settlements expense (10,801 ) (242 ) — (11,043 ) Derivative forward value losses (382,762 ) (1,920 ) — (384,682 ) Derivative losses (393,563 ) (2,162 ) — (395,725 ) Unrealized gains on equity securities 1,620 — — 1,620 Total non-interest income (379,661 ) 5,659 (9,162 ) (383,164 ) Non-interest expense: General and administrative expenses (24,739 ) (2,235 ) 1,645 (25,329 ) Other non-interest (expense) income 7,179 (7,517 ) 7,517 7,179 Total non-interest expense (17,560 ) (9,752 ) 9,162 (18,150 ) Loss before income taxes (322,422 ) (2,178 ) — (324,600 ) Income tax benefit — 521 — 521 Net loss $ (322,422 ) $ (1,657 ) $ — $ (324,079 ) August 31, 2019 CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 26,258,810 $ 1,048,892 $ (1,019,103 ) $ 26,288,599 Deferred loan origination costs 11,239 — — 11,239 Loans to members 26,270,049 1,048,892 (1,019,103 ) 26,299,838 Less: Allowance for loan losses (17,565 ) — — (17,565 ) Loans to members, net 26,252,484 1,048,892 (1,019,103 ) 26,282,273 Other assets 1,286,409 105,290 (95,216 ) 1,296,483 Total assets $ 27,538,893 $ 1,154,182 $ (1,114,319 ) $ 27,578,756 Three Months Ended August 31, 2018 (Dollars in thousands) CFC Other Elimination Consolidated Total Statement of operations: Interest income $ 276,243 $ 12,984 $ (10,736 ) $ 278,491 Interest expense (210,050 ) (10,917 ) 10,736 (210,231 ) Net interest income 66,193 2,067 — 68,260 Benefit for loan losses 109 — — 109 Net interest income after benefit for loan losses 66,302 2,067 — 68,369 Non-interest income: Fee and other income 5,199 564 (1,852 ) 3,911 Derivative gains (losses): Derivative cash settlements expense (12,562 ) (267 ) — (12,829 ) Derivative forward value gains 19,671 341 — 20,012 Derivative gains 7,109 74 — 7,183 Unrealized losses on equity securities (726 ) — — (726 ) Total non-interest income 11,582 638 (1,852 ) 10,368 Non-interest expense: General and administrative expenses (22,425 ) (2,374 ) 1,594 (23,205 ) Losses on early extinguishment of debt (7,100 ) — — (7,100 ) Other non-interest expense (394 ) (258 ) 258 (394 ) Total non-interest expense (29,919 ) (2,632 ) 1,852 (30,699 ) Income before income taxes 47,965 73 — 48,038 Income tax expense — (60 ) — (60 ) Net income $ 47,965 $ 13 $ — $ 47,978 August 31, 2018 CFC Other Elimination Consolidated Total Assets: Total loans outstanding $ 25,138,742 $ 1,139,507 $ (1,106,813 ) $ 25,171,436 Deferred loan origination costs 11,218 — — 11,218 Loans to members 25,149,960 1,139,507 (1,106,813 ) 25,182,654 Less: Allowance for loan losses (18,692 ) — — (18,692 ) Loans to members, net 25,131,268 1,139,507 (1,106,813 ) 25,163,962 Other assets 1,501,315 106,902 (95,972 ) 1,512,245 Total assets $ 26,632,583 $ 1,246,409 $ (1,202,785 ) $ 26,676,207 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income | $ 290,015 | $ 278,491 | |
Investment Income, Interest | 5,826 | 5,783 | |
Long Term Fixed Rate Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income | [1] | 258,478 | 251,801 |
Long-term variable-rate loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income | 9,756 | 9,381 | |
Line of credit loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income | 16,033 | 11,633 | |
Restructured loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income | [2] | 206 | 218 |
Other Income | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income | [3] | 284 | 325 |
Loans Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income | $ 284,189 | $ 272,708 | |
[1] | Includes loan conversion fees, which are generally deferred and recognized as interest income using the effective interest method. | ||
[2] | Troubled debt restructured (“TDR”) loans. | ||
[3] | Consists of late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Interest expense on debt: | |||
Interest expense | [1],[2] | $ 213,271 | $ 210,231 |
Short-term borrowings | |||
Interest expense on debt: | |||
Interest expense | [1],[2] | 22,822 | 19,419 |
Medium-term notes | |||
Interest expense on debt: | |||
Interest expense | [1],[2] | 32,076 | 32,410 |
Collateral trust bonds | |||
Interest expense on debt: | |||
Interest expense | [1],[2] | 65,381 | 77,705 |
Guaranteed Underwriter Program notes payable | |||
Interest expense on debt: | |||
Interest expense | [1],[2] | 40,433 | 35,334 |
Farmer Mac notes payable | |||
Interest expense on debt: | |||
Interest expense | [1],[2] | 25,074 | 21,111 |
Other notes payable | |||
Interest expense on debt: | |||
Interest expense | [1],[2] | 254 | 322 |
Subordinated deferrable debt | |||
Interest expense on debt: | |||
Interest expense | [1],[2] | 12,882 | 9,417 |
Subordinated certificates | |||
Interest expense on debt: | |||
Interest expense | [1],[2] | $ 14,349 | $ 14,513 |
[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. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Jul. 22, 2019 | May 31, 2019 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Repossessed Assets | $ 0 | $ 0 | ||
Gain (Loss) on Sale of Properties | 7,713,000 | $ 0 | ||
Restricted Cash and Cash Equivalents | 9,138,000 | 8,282,000 | ||
Deferred income | 55,614,000 | 57,989,000 | ||
Deferred Loan Conversion Fees | 50,000,000 | $ 52,000,000 | ||
Land Available-for-sale | $ 14,000,000 | |||
Proceeds from sale of land | $ 21,618,000 | $ 0 |
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, 2019 | May 31, 2019 | Aug. 31, 2018 |
Variable Interest Entity [Line Items] | |||
Loans to members | $ 26,299,838 | $ 25,916,904 | $ 25,182,654 |
Other assets | 46,576 | 53,699 | |
Total assets | 27,578,756 | 27,124,372 | $ 26,676,207 |
Long-term debt | 19,094,236 | 19,210,793 | |
Other liabilities | 48,462 | 50,112 | |
Total liabilities | 26,660,328 | 25,820,490 | |
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure | |||
Variable Interest Entity [Line Items] | |||
Loans to members | 1,048,892 | 1,087,988 | |
Other assets | 10,074 | 10,963 | |
Total assets | 1,058,966 | 1,098,951 | |
Long-term debt | 6,000 | 6,000 | |
Other liabilities | 36,878 | 33,385 | |
Total liabilities | $ 42,878 | $ 39,385 |
Variable Interest Entities - In
Variable Interest Entities - Information on CFCs Credit Commitments to NCSC and RTFC (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | |
Variable Interest Entity [Line Items] | |||
CFC third-party guarantees | $ 801,327 | $ 837,435 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
CFC credit commitments | 5,500,000 | 5,500,000 | |
Borrowings payable to CFC | [1] | 1,019,103 | 1,059,629 |
CFC third-party guarantees | 11,339 | 10,091 | |
Other credit enhancements | 16,171 | 14,251 | |
Total credit enhancements | [2] | 27,510 | 24,342 |
CFC available credit commitments | 1,046,613 | 1,083,971 | |
CFC available credit commitments | $ 4,453,387 | $ 4,416,029 | |
[1] | Borrowings payable to CFC are eliminated in consolidation. | ||
[2] | Excludes interest due on these instruments. |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) $ in Millions | Aug. 31, 2019USD ($) |
Variable Interest Entity, Primary Beneficiary | |
Variable Interest Entity [Line Items] | |
Maximum Potential Exposure Credit Enhancements | $ 29 |
Investment Securities - Amortiz
Investment Securities - Amortized cost and Fair Value of Equity Securities and Corresponding Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Debt and Equity Securities [Line Items] | ||
Equity securities | $ 63,922 | $ 87,533 |
Preferred Stock | ||
Debt and Equity Securities [Line Items] | ||
Equity securities | 58,166 | 82,445 |
Common Stock | ||
Debt and Equity Securities [Line Items] | ||
Equity securities | $ 5,756 | $ 5,088 |
Investment Securities - Debt Se
Investment Securities - Debt Securities and Corresponding Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | $ 569,575 | $ 565,444 |
Gross Unrealized Gains | 11,128 | 6,072 |
Gross Unrealized Losses | (227) | (967) |
Debt Securities, Held-to-maturity, Fair Value | 580,476 | 570,549 |
Certificates of deposit | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | 6,123 | 1,000 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 6,125 | 1,000 |
Commercial paper | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | 5,950 | 12,395 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 5,950 | 12,395 |
U.S. agency debt securities | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | 4,563 | 3,207 |
Gross Unrealized Gains | 201 | 108 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 4,764 | 3,315 |
Corporate debt securities | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | 481,914 | 478,578 |
Gross Unrealized Gains | 9,426 | 4,989 |
Gross Unrealized Losses | (219) | (912) |
Debt Securities, Held-to-maturity, Fair Value | 491,121 | 482,655 |
Agency | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | 7,243 | 7,255 |
Gross Unrealized Gains | 473 | 291 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 7,716 | 7,546 |
Non-agency | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | 3,453 | 3,453 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5) | (7) |
Debt Securities, Held-to-maturity, Fair Value | 3,448 | 3,446 |
Total commercial MBS | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | 10,696 | 10,708 |
Gross Unrealized Gains | 473 | 291 |
Gross Unrealized Losses | (5) | (7) |
Debt Securities, Held-to-maturity, Fair Value | 11,164 | 10,992 |
U.S. state and municipality debt securities | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | 9,606 | 9,608 |
Gross Unrealized Gains | 520 | 352 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 10,126 | 9,960 |
Foreign government debt securities | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | 1,257 | 1,254 |
Gross Unrealized Gains | 58 | 42 |
Gross Unrealized Losses | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value | 1,315 | 1,296 |
Other ABS | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Debt securities held-to-maturity, at amortized cost | 49,466 | 48,694 |
Gross Unrealized Gains | 448 | 290 |
Gross Unrealized Losses | (3) | (48) |
Debt Securities, Held-to-maturity, Fair Value | $ 49,911 | $ 48,936 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Gross Unrealized Losses for Investments in a Gross Loss Position (Details) - USD ($) | Aug. 31, 2019 | May 31, 2019 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair value, held-to-maturity | $ 54,342,000 | $ 52,665,000 | |
Less than 12 months, Gross unrealized losses, held-to-maturity | (80,000) | (206,000) | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 53,559,000 | 179,374,000 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (147,000) | (761,000) | |
Total Fair Value | 107,901,000 | 232,039,000 | |
Gross Unrealized Losses | (227,000) | (967,000) | |
Commercial paper | |||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair value, held-to-maturity | [1] | 2,688,000 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,000 | ||
Total Fair Value | [1] | 2,688,000 | |
Corporate debt securities | |||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair value, held-to-maturity | 50,895,000 | 45,999,000 | |
Less than 12 months, Gross unrealized losses, held-to-maturity | (75,000) | (198,000) | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 45,650,000 | 164,086,000 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (144,000) | (714,000) | |
Total Fair Value | 96,545,000 | 210,085,000 | |
Gross Unrealized Losses | (219,000) | (912,000) | |
Non-agency | |||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair value, held-to-maturity | 3,447,000 | 1,996,000 | |
Less than 12 months, Gross unrealized losses, held-to-maturity | (5,000) | (4,000) | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 1,448,000 | ||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3,000) | ||
Total Fair Value | 3,447,000 | 3,444,000 | |
Gross Unrealized Losses | (5,000) | (7,000) | |
Other ABS | |||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair value, held-to-maturity | [2] | 0 | 1,982,000 |
Less than 12 months, Gross unrealized losses, held-to-maturity | [2] | 0 | (4,000) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | [2] | 7,909,000 | 13,840,000 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [2] | (3,000) | (44,000) |
Total Fair Value | [2] | 7,909,000 | 15,822,000 |
Gross Unrealized Losses | [2] | $ (3,000) | $ (48,000) |
[1] | Unrealized losses on the commercial paper investments are less than $1,000. | ||
[2] | Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. |
Investment Securities - Remaini
Investment Securities - Remaining Contractual Maturity Based on Amortized Cost and Fair Value of HTM by Type (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | $ 72,839 | $ 64,828 |
Due 1 Year through 5 Years | 474,126 | 475,368 |
Due 5 Years through 10 Years | 19,157 | 21,795 |
Due 10 Years | 3,453 | 3,453 |
Debt securities held-to-maturity, at amortized cost | 569,575 | 565,444 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 72,859 | 64,722 |
Due 1 Year through 5 Years | 484,028 | 479,864 |
Due 5 Years through 10 Years | 20,141 | 22,517 |
Due 10 Years | 3,448 | 3,446 |
Debt Securities, Held-to-maturity, Fair Value | $ 580,476 | $ 570,549 |
Due in 1 Year or Less | 2.32% | 2.08% |
Due 1 Year through 5 Years | 3.03% | 3.10% |
Due 5 Years through 10 Years | 3.00% | 3.07% |
Due 10 Years | 3.02% | 3.26% |
Held To Maturity Securities Expected Debt Maturities Weighted Average Yield | 2.94% | 2.98% |
Certificates of deposit | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | $ 5,123 | $ 0 |
Due 1 Year through 5 Years | 1,000 | 1,000 |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt securities held-to-maturity, at amortized cost | 6,123 | 1,000 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 5,125 | 0 |
Due 1 Year through 5 Years | 1,000 | 1,000 |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 6,125 | 1,000 |
Commercial paper | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 5,950 | 12,395 |
Due 1 Year through 5 Years | 0 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt securities held-to-maturity, at amortized cost | 5,950 | 12,395 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 5,950 | 12,395 |
Due 1 Year through 5 Years | 0 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 5,950 | 12,395 |
U.S. agency debt securities | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 2,682 | 2,678 |
Due 5 Years through 10 Years | 1,881 | 529 |
Debt securities held-to-maturity, at amortized cost | 4,563 | 3,207 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 2,811 | 2,769 |
Due 5 Years through 10 Years | 1,953 | 546 |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 4,764 | 3,315 |
Corporate debt securities | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 61,766 | 51,923 |
Due 1 Year through 5 Years | 408,037 | 414,788 |
Due 5 Years through 10 Years | 12,111 | 11,867 |
Due 10 Years | 0 | |
Debt securities held-to-maturity, at amortized cost | 481,914 | 478,578 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 61,784 | 51,818 |
Due 1 Year through 5 Years | 416,655 | 418,606 |
Due 5 Years through 10 Years | 12,682 | 12,231 |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 491,121 | 482,655 |
Agency | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 2,078 | 310 |
Due 5 Years through 10 Years | 5,165 | 6,945 |
Due 10 Years | 0 | |
Debt securities held-to-maturity, at amortized cost | 7,243 | 7,255 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 2,210 | 317 |
Due 5 Years through 10 Years | 5,506 | 7,229 |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 7,716 | 7,546 |
Non-agency | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 0 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 3,453 | 3,453 |
Debt securities held-to-maturity, at amortized cost | 3,453 | 3,453 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 0 | |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 3,448 | 3,446 |
Debt Securities, Held-to-maturity, Fair Value | 3,448 | 3,446 |
Total commercial MBS | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 2,078 | 310 |
Due 5 Years through 10 Years | 5,165 | 6,945 |
Due 10 Years | 3,453 | 3,453 |
Debt securities held-to-maturity, at amortized cost | 10,696 | 10,708 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 2,210 | 317 |
Due 5 Years through 10 Years | 5,506 | 7,229 |
Due 10 Years | 3,448 | 3,446 |
Debt Securities, Held-to-maturity, Fair Value | 11,164 | 10,992 |
U.S. state and municipality debt securities | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 9,606 | 9,608 |
Due 5 Years through 10 Years | 0 | 0 |
Due 10 Years | 0 | |
Debt securities held-to-maturity, at amortized cost | 9,606 | 9,608 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 10,126 | 9,960 |
Due 5 Years through 10 Years | 0 | 0 |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 10,126 | 9,960 |
Foreign government debt securities | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due 1 Year through 5 Years | 1,257 | 1,254 |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt securities held-to-maturity, at amortized cost | 1,257 | 1,254 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | |
Due 1 Year through 5 Years | 1,315 | 1,296 |
Due 5 Years through 10 Years | 0 | |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | 1,315 | 1,296 |
Other ABS | ||
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | 510 |
Due 1 Year through 5 Years | 49,466 | 45,730 |
Due 5 Years through 10 Years | 0 | 2,454 |
Due 10 Years | 0 | |
Debt securities held-to-maturity, at amortized cost | 49,466 | 48,694 |
Debt Securities, Held-to-maturity, Maturity, Fair Value, Rolling Maturity [Abstract] | ||
Due in 1 Year or Less | 0 | 509 |
Due 1 Year through 5 Years | 49,911 | 45,916 |
Due 5 Years through 10 Years | 0 | 2,511 |
Due 10 Years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | $ 49,911 | $ 48,936 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | Jun. 12, 2019 | May 31, 2019 | |
Debt and Equity Securities [Line Items] | ||||
Equity Securities Unrealized Gain | $ 2,000,000 | |||
Equity Securities Unrealized Loss | $ 1,000,000 | |||
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | $ 53,559,000 | $ 179,374,000 | ||
Preferred Stock, Redemption Price Per Share | $ 25 | |||
Investment Securities in Unrealized Loss Positions, Number of Positions | 84 | |||
Average Contractual Maturity of Held-to-maturity Securities | 3 years | |||
Held To Maturity Securities Expected Debt Maturities Weighted Average Yield | 2.94% | 2.98% | ||
Equity Securities, FV-NI, Realized Gain (Loss) | $ 200,000 | |||
Gain (Loss) on Sale of Debt Investments | $ 0 | $ 0 | ||
Preferred Stock | ||||
Debt and Equity Securities [Line Items] | ||||
Equity Securities, FV-NI, Cost | $ 25,000,000 |
Loans - Outstanding Principal B
Loans - Outstanding Principal Balance and Unadvanced Commitments (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | $ 26,288,599 | $ 25,905,664 | $ 25,171,436 | ||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11,239 | 11,240 | 11,218 | ||
Loans to members | 26,299,838 | 25,916,904 | $ 25,182,654 | ||
Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 13,053,743 | 13,237,558 | ||
CFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 25,239,707 | 24,817,676 | |||
CFC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 12,193,718 | 12,405,385 | ||
CFC | Distribution | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 20,484,460 | 20,155,266 | |||
CFC | Distribution | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 8,568,888 | 8,773,018 | ||
CFC | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 4,671,035 | 4,578,841 | |||
CFC | Power supply | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 3,456,266 | 3,466,680 | ||
CFC | Statewide and associate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 84,212 | 83,569 | |||
CFC | Statewide and associate | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 168,564 | 165,687 | ||
NCSC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 697,791 | 742,888 | |||
NCSC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 575,888 | 552,840 | ||
RTFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 351,101 | 345,100 | |||
RTFC | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 284,137 | 279,333 | ||
Long Term Fixed Rate Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 23,677,234 | 23,094,253 | |||
Long-term variable-rate loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 962,541 | 1,066,880 | |||
Long-term variable-rate loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 5,140,530 | 5,448,636 | ||
Long Term Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 24,639,775 | 24,161,133 | |||
Long Term Loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | [1] | 5,140,530 | 5,448,636 | ||
Line of credit loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total recorded investment in loans | 1,648,824 | 1,744,531 | |||
Line of credit loans | Unadvanced commitments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unadvanced commitments | $ 7,913,213 | $ 7,788,922 | [1] | ||
[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 - Available Balance Under
Loans - Available Balance Under Unadvanced Commitments and Maturity (Details) - Unadvanced commitments - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | [1] | $ 13,053,743 | $ 13,237,558 | |
2020 | 915,666 | |||
2021 | 4,793,927 | |||
2022 | 1,780,751 | |||
2023 | 2,445,125 | |||
2024 | 2,690,604 | |||
Thereafter | 427,670 | |||
Line of credit loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | 7,913,213 | 7,788,922 | [1] | |
2020 | 609,206 | |||
2021 | 4,128,566 | |||
2022 | 485,285 | |||
2023 | 1,364,426 | |||
2024 | 1,055,813 | |||
Thereafter | 269,917 | |||
Long-term variable-rate loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Available Balance | [1] | 5,140,530 | $ 5,448,636 | |
2020 | 306,460 | |||
2021 | 665,361 | |||
2022 | 1,295,466 | |||
2023 | 1,080,699 | |||
2024 | 1,634,791 | |||
Thereafter | $ 157,753 | |||
[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 - Unconditional Committed
Loans - Unconditional Committed Lines of Credit and Maturity (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | |
Unadvanced commitments | |||
Notional maturities of committed lines of credit | |||
Available Balance | [1] | $ 13,053,743 | $ 13,237,558 |
2020 | 915,666 | ||
2021 | 4,793,927 | ||
2022 | 1,780,751 | ||
2023 | 2,445,125 | ||
2024 | 2,690,604 | ||
Thereafter | 427,670 | ||
Unadvanced commitments not subject to material adverse change clauses | |||
Notional maturities of committed lines of credit | |||
Available Balance | 3,003,647 | $ 2,944,000 | |
2020 | 260,886 | ||
2021 | 478,489 | ||
2022 | 171,875 | ||
2023 | 1,166,687 | ||
2024 | 811,510 | ||
Thereafter | $ 114,200 | ||
[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 - Outstanding Pledged as
Loans - Outstanding Pledged as Collateral (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Pledging of Loans and Loans on Deposit | ||
Restricted Cash and Cash Equivalents | $ 9,138 | $ 8,282 |
Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,690,428 | 8,909,909 |
Secured Debt | 7,622,711 | 7,622,711 |
Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Secured Debt | 40,000 | 40,000 |
Notes payable | Federal Agricultural Mortgage Corporation | ||
Pledging of Loans and Loans on Deposit | ||
Secured Debt | 2,962,478 | 3,054,914 |
Clean Renewable Energy Bonds Series 2009A | ||
Pledging of Loans and Loans on Deposit | ||
Restricted Cash and Cash Equivalents | 802 | 415 |
Secured Debt | 9,225 | 9,225 |
Assets Pledged as Collateral | 10,601 | 10,764 |
Guaranteed Underwriter Program notes payable | ||
Pledging of Loans and Loans on Deposit | ||
Secured Debt | 5,387,155 | 5,410,507 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,557,299 | 8,775,231 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 46,522 | 47,331 |
Mortgage notes | Distribution and power supply system mortgage notes | Federal Agricultural Mortgage Corporation | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 3,760,219 | 3,751,798 |
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 | 9,799 | 10,349 |
Loans Guaranteed by Rural Utilities Service | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 133,129 | 134,678 |
Mortgage notes receivable on deposit | Distribution and power supply system mortgage notes | Federal Financing Bank | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | $ 6,127,684 | $ 6,157,218 |
Loans - Internal Risk Rating (D
Loans - Internal Risk Rating (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 |
Credit Quality | |||
Total recorded investment in loans | $ 26,288,599 | $ 25,905,664 | $ 25,171,436 |
CFC | |||
Credit Quality | |||
Total recorded investment in loans | 25,239,707 | 24,817,676 | |
CFC | Distribution | |||
Credit Quality | |||
Total recorded investment in loans | 20,484,460 | 20,155,266 | |
CFC | Power supply | |||
Credit Quality | |||
Total recorded investment in loans | 4,671,035 | 4,578,841 | |
CFC | Statewide and associate | |||
Credit Quality | |||
Total recorded investment in loans | 84,212 | 83,569 | |
NCSC | |||
Credit Quality | |||
Total recorded investment in loans | 697,791 | 742,888 | |
RTFC | |||
Credit Quality | |||
Total recorded investment in loans | 351,101 | 345,100 | |
Pass | |||
Credit Quality | |||
Total recorded investment in loans | 26,090,422 | 25,703,866 | |
Pass | CFC | |||
Credit Quality | |||
Total recorded investment in loans | 25,046,997 | 24,621,470 | |
Pass | CFC | Distribution | |||
Credit Quality | |||
Total recorded investment in loans | 20,354,654 | 20,022,193 | |
Pass | CFC | Power supply | |||
Credit Quality | |||
Total recorded investment in loans | 4,623,131 | 4,530,708 | |
Pass | CFC | Statewide and associate | |||
Credit Quality | |||
Total recorded investment in loans | 69,212 | 68,569 | |
Pass | NCSC | |||
Credit Quality | |||
Total recorded investment in loans | 697,791 | 742,888 | |
Pass | RTFC | |||
Credit Quality | |||
Total recorded investment in loans | 345,634 | 339,508 | |
Special Mention | |||
Credit Quality | |||
Total recorded investment in loans | 23,222 | 25,375 | |
Special Mention | CFC | |||
Credit Quality | |||
Total recorded investment in loans | 23,222 | 25,375 | |
Special Mention | CFC | Distribution | |||
Credit Quality | |||
Total recorded investment in loans | 8,222 | 10,375 | |
Special Mention | CFC | Statewide and associate | |||
Credit Quality | |||
Total recorded investment in loans | 15,000 | 15,000 | |
Special Mention | NCSC | |||
Credit Quality | |||
Total recorded investment in loans | 0 | ||
Special Mention | RTFC | |||
Credit Quality | |||
Total recorded investment in loans | 0 | 0 | |
Substandard | |||
Credit Quality | |||
Total recorded investment in loans | 174,955 | 176,423 | |
Substandard | CFC | |||
Credit Quality | |||
Total recorded investment in loans | 169,488 | 170,831 | |
Substandard | CFC | Distribution | |||
Credit Quality | |||
Total recorded investment in loans | 121,584 | 122,698 | |
Substandard | CFC | Power supply | |||
Credit Quality | |||
Total recorded investment in loans | 47,904 | 48,133 | |
Substandard | RTFC | |||
Credit Quality | |||
Total recorded investment in loans | $ 5,467 | $ 5,592 |
Loans - Payment Status of Loans
Loans - Payment Status of Loans Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 | |
Payment Status of Loans | ||||
Past due | $ 0 | $ 0 | ||
Total recorded investment in loans | 26,288,599 | 25,905,664 | $ 25,171,436 | |
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 | ||
Total recorded investment in loans | 25,239,707 | 24,817,676 | ||
Non-accrual loans | 0 | 0 | ||
CFC | Distribution | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Total recorded investment in loans | 20,484,460 | 20,155,266 | ||
Non-accrual loans | 0 | 0 | ||
CFC | Power supply | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Total recorded investment in loans | 4,671,035 | 4,578,841 | ||
Non-accrual loans | 0 | 0 | ||
CFC | Statewide and associate | ||||
Payment Status of Loans | ||||
Total recorded investment in loans | 84,212 | 83,569 | ||
NCSC | ||||
Payment Status of Loans | ||||
Past due | 0 | 0 | ||
Total recorded investment in loans | 697,791 | 742,888 | ||
Non-accrual loans | 0 | 0 | ||
RTFC | ||||
Payment Status of Loans | ||||
Past due | 0 | |||
Total recorded investment in loans | 351,101 | 345,100 | ||
Non-accrual loans | 0 | 0 | ||
Financial Asset, 1 to 29 Days Past Due [Member] | ||||
Payment Status of Loans | ||||
Current | 26,288,599 | 25,905,664 | ||
Financial Asset, 1 to 29 Days Past Due [Member] | CFC | ||||
Payment Status of Loans | ||||
Current | 25,239,707 | 24,817,676 | ||
Financial Asset, 1 to 29 Days Past Due [Member] | CFC | Distribution | ||||
Payment Status of Loans | ||||
Current | 20,484,460 | 20,155,266 | ||
Financial Asset, 1 to 29 Days Past Due [Member] | CFC | Power supply | ||||
Payment Status of Loans | ||||
Current | 4,671,035 | 4,578,841 | ||
Financial Asset, 1 to 29 Days Past Due [Member] | CFC | Statewide and associate | ||||
Payment Status of Loans | ||||
Current | 84,212 | 83,569 | ||
Financial Asset, 1 to 29 Days Past Due [Member] | NCSC | ||||
Payment Status of Loans | ||||
Current | 697,791 | 742,888 | ||
Financial Asset, 1 to 29 Days Past Due [Member] | RTFC | ||||
Payment Status of Loans | ||||
Current | 351,101 | 345,100 | ||
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 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||||
Payment Status of Loans | ||||
Past due | [1] | 0 | 0 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | CFC | ||||
Payment Status of Loans | ||||
Past due | [1] | 0 | 0 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | CFC | Distribution | ||||
Payment Status of Loans | ||||
Past due | [1] | 0 | 0 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | CFC | Power supply | ||||
Payment Status of Loans | ||||
Past due | [1] | 0 | 0 | |
Financial Asset, Equal to or 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 - Troubled Debt Restructu
Loans - Troubled Debt Restructured Loans (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total recorded investment in loans | $ 26,288,599 | $ 25,905,664 | $ 25,171,436 |
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage | 100.00% | 100.00% | |
Performing TDR loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans outstanding | $ 11,222 | $ 11,853 | |
Performing TDR Loans As Percentage of Total Loans | 0.04% | 0.05% | |
Total TDR loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total recorded investment in loans | $ 11,222 | $ 11,853 | |
Loans and Leases Receivable Commercial, Net of Deferred Income, Percentage | 0.04% | 0.05% | |
CFC | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total recorded investment in loans | $ 25,239,707 | $ 24,817,676 | |
CFC | Performing TDR loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans outstanding | $ 5,755 | $ 6,261 | |
Performing TDR Loans As Percentage of Total Loans | 0.02% | 0.03% | |
RTFC | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Total recorded investment in loans | $ 351,101 | $ 345,100 | |
RTFC | Performing TDR loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans outstanding | $ 5,467 | $ 5,592 | |
Performing TDR Loans As Percentage of Total Loans | 0.02% | 0.02% |
Loans Impaired Loans - Recorded
Loans Impaired Loans - Recorded Investment and Allowance (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, Related Allowance | $ 989 | $ 1,021 |
Impaired Financing Receivable, Recorded Investment | 11,222 | 11,853 |
CFC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 5,755 | 6,261 |
RTFC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 5,467 | 5,592 |
Impaired Financing Receivable, Related Allowance | $ 989 | $ 1,021 |
Impaired Loans - Average Record
Impaired Loans - Average Recorded Investment and Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Aug. 31, 2019 | Aug. 31, 2018 | |
Average recorded investment | ||
Total impaired loans | $ 11,786 | $ 12,552 |
Interest income recognized | ||
Interest impaired loans | 206 | 218 |
CFC | ||
Average recorded investment | ||
Total impaired loans | 6,239 | 6,504 |
Interest income recognized | ||
Interest impaired loans | 137 | 142 |
RTFC | ||
Average recorded investment | ||
Total impaired loans | 5,547 | 6,048 |
Interest income recognized | ||
Interest impaired loans | $ 69 | $ 76 |
Loans - Additional Information
Loans - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2019USD ($)memberpower_supply_systemdistribution_systemborrowerassociate | Aug. 31, 2018USD ($) | May 31, 2019USD ($)power_supply_systemdistribution_systemborrowerassociate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Line of Credit Commitments as percentage of unadvanced loan commitment | 61.00% | |||
Long-term Loan commitments as percentage of unadvanced loan commitment | 39.00% | |||
Loans Receivable Cost of Loans Sold | $ 20,000,000 | |||
Number of Borrowers | member | 900 | |||
Number of States in which Electric and Telecommunications Borrowers are Located | 49 | |||
Total recorded investment in loans | $ 26,288,599,000 | $ 25,171,436,000 | $ 25,905,664,000 | |
Number of Borrowers With TDR Loans | 1 | 1 | ||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ 0 | 0 | ||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | ||
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 | $ 0 | ||
Performing line of credit for Troubled Debt Restructuring Borrower [Member] | Line of Credit to Provide Bridge Funding | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | 2,000,000 | 2,000,000 | ||
Total recorded investment in loans | 1,000,000 | 1,000,000 | ||
Performing line of credit for Troubled Debt Restructuring Borrower [Member] | Line of Credit Restricted for Fuel Purchases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | 6,000,000 | 6,000,000 | ||
Total recorded investment in loans | 1,000,000 | 3,000,000 | ||
Nonperforming Financial Instruments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | 0 | ||
Substandard | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total recorded investment in loans | 174,955,000 | 176,423,000 | ||
CFC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total recorded investment in loans | 25,239,707,000 | 24,817,676,000 | ||
CFC | Distribution | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total recorded investment in loans | 20,484,460,000 | 20,155,266,000 | ||
CFC | Power supply | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total recorded investment in loans | 4,671,035,000 | 4,578,841,000 | ||
CFC | Substandard | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total recorded investment in loans | 169,488,000 | 170,831,000 | ||
CFC | Substandard | Distribution | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total recorded investment in loans | 121,584,000 | 122,698,000 | ||
CFC | Substandard | Power supply | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total recorded investment in loans | 47,904,000 | 48,133,000 | ||
Unadvanced commitments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | [1] | 13,053,743,000 | 13,237,558,000 | |
Unadvanced commitments | CFC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | [1] | 12,193,718,000 | 12,405,385,000 | |
Unadvanced commitments | CFC | Distribution | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | [1] | 8,568,888,000 | 8,773,018,000 | |
Unadvanced commitments | CFC | Power supply | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | [1] | 3,456,266,000 | 3,466,680,000 | |
Unadvanced commitments not subject to material adverse change clauses | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | 3,003,647,000 | 2,944,000,000 | ||
Commitments to Extend Credit Subject to Material Adverse Change Clause | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | 10,050,000,000 | 10,294,000,000 | ||
Long-term variable-rate loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total recorded investment in loans | 962,541,000 | 1,066,880,000 | ||
Long-term variable-rate loans | Unadvanced commitments | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Unadvanced commitments | [1] | $ 5,140,530,000 | $ 5,448,636,000 | |
Loans Receivable Commercial and Industrial | Credit Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Concentration Risk, Percentage | 2.00% | 2.00% | ||
Concentration Risk Number of Borrowers | borrower | 20 | 20 | ||
Loans Receivable Commercial and Industrial | Credit Concentration Risk | Distribution | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Concentration Risk Number of Borrowers | distribution_system | 10 | 10 | ||
Loans Receivable Commercial and Industrial | Credit Concentration Risk | Power supply | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Concentration Risk Number of Borrowers | power_supply_system | 9 | 9 | ||
Loans Receivable Commercial and Industrial | Credit Concentration Risk | Associates | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Concentration Risk Number of Borrowers | associate | 1 | 1 | ||
Loans Receivable Commercial and Industrial | Customer Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Concentration Risk, Percentage | 22.00% | 22.00% | ||
Loans Receivable Commercial and Industrial | Geographic Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Concentration Risk, Percentage | 16.00% | 15.00% | ||
Loans Receivable Commercial and Industrial | Product Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Concentration Risk, Percentage | 99.00% | 99.00% | ||
Loans Guaranteed by Farmer Mac | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total recorded investment in loans | $ 602,000,000 | $ 619,000,000 | ||
Loans Guaranteed by Rural Utilities Service | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total recorded investment in loans | $ 152,000,000 | $ 154,000,000 | ||
[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. |
Allowance for Loan Losses - Ro
Allowance for Loan Losses - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2019 | May 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | $ 17,565 | $ 18,692 | $ 17,535 | $ 18,801 |
Provision for Loan and Lease Losses | 30 | 109 | ||
CFC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | 12,962 | 12,508 | 13,120 | 12,300 |
Provision for Loan and Lease Losses | 158 | 208 | ||
NCSC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | 2,077 | 2,012 | 2,007 | 2,082 |
Provision for Loan and Lease Losses | (70) | 70 | ||
RTFC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total ending balance of the allowance | 2,526 | 4,172 | $ 2,408 | $ 4,419 |
Provision for Loan and Lease Losses | $ 118 | $ (247) |
Allowance for Loan Losses - Re
Allowance for Loan Losses - Recorded Investments (Details) - USD ($) number in Thousands, $ in Thousands | Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 | May 31, 2018 |
Ending balance of the allowance: | ||||
Collectively evaluated loans | $ 16,576 | $ 16,514 | ||
Specific allowance | 989 | 1,021 | ||
Total ending balance of the allowance | 17,565 | 17,535 | $ 18,692 | $ 18,801 |
Recorded investment in loans: | ||||
Collectively evaluated loans | 26,277,377 | 25,893,811 | ||
Individually evaluated loans | 11,222 | 11,853 | ||
Total recorded investment in loans | 26,288,599 | 25,905,664 | 25,171,436 | |
Loans and Leases Receivable, Net Amount | $ 26,271,034 | $ 25,888,129 | ||
Allowance Coverage Ratio | 0.00% | 0.00% | ||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ 11,239 | $ 11,240 | 11,218 | |
CFC | ||||
Ending balance of the allowance: | ||||
Collectively evaluated loans | 12,962 | 13,120 | ||
Specific allowance | 0 | |||
Total ending balance of the allowance | 12,962 | 13,120 | 12,508 | 12,300 |
Recorded investment in loans: | ||||
Collectively evaluated loans | 25,233,952 | 24,811,415 | ||
Individually evaluated loans | 5,755 | 6,261 | ||
Total recorded investment in loans | 25,239,707 | 24,817,676 | ||
Loans and Leases Receivable, Net Amount | $ 25,226,745 | $ 24,804,556 | ||
Allowance Coverage Ratio | 0.00% | 0.00% | ||
NCSC | ||||
Ending balance of the allowance: | ||||
Collectively evaluated loans | $ 2,077 | $ 2,007 | ||
Specific allowance | 0 | 0 | ||
Total ending balance of the allowance | 2,077 | 2,007 | 2,012 | 2,082 |
Recorded investment in loans: | ||||
Collectively evaluated loans | 697,791 | 742,888 | ||
Individually evaluated loans | 0 | 0 | ||
Total recorded investment in loans | 697,791 | 742,888 | ||
Loans and Leases Receivable, Net Amount | $ 695,714 | $ 740,881 | ||
Allowance Coverage Ratio | 0.00% | 0.00% | ||
RTFC | ||||
Ending balance of the allowance: | ||||
Collectively evaluated loans | $ 1,537 | $ 1,387 | ||
Specific allowance | 989 | 1,021 | ||
Total ending balance of the allowance | 2,526 | 2,408 | $ 4,172 | $ 4,419 |
Recorded investment in loans: | ||||
Collectively evaluated loans | 345,634 | 339,508 | ||
Individually evaluated loans | 5,467 | 5,592 | ||
Total recorded investment in loans | 351,101 | 345,100 | ||
Loans and Leases Receivable, Net Amount | $ 348,575 | $ 342,692 | ||
Allowance Coverage Ratio | 0.00% | 0.00% |
Allowance for Loan Losses - Ad
Allowance for Loan Losses - Additional Information (Details) - USD ($) $ in Millions | Aug. 31, 2019 | May 31, 2019 |
Receivables [Abstract] | ||
Credit reserve for unadvanced loan commitments | $ 1 | $ 1 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Details) - USD ($) | Aug. 31, 2019 | May 31, 2019 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 4,027,645,000 | $ 3,607,726,000 |
Short Term Debt as Percentage of Debt Outstanding | 16.00% | 14.00% |
Revolving credit agreements | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 0 | $ 0 |
Maximum borrowing capacity | 2,975,000,000 | $ 2,975,000,000 |
Letter of Credit Maximum Amount Available | $ 300,000,000 |
Short-Term Borrowings - Outsta
Short-Term Borrowings - Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 4,027,645 | $ 3,607,726 |
Commercial paper sold through dealers, net of discounts | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 829,763 | 944,616 |
Commercial paper sold directly to members, at par | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 1,240,830 | 1,111,795 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 2,070,593 | 2,056,411 |
Select notes to members | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 1,277,927 | 1,023,952 |
Daily liquidity fund notes to members | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 435,070 | 298,817 |
Medium-term notes sold to members | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 244,055 | $ 228,546 |
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, 2019 | May 31, 2019 | ||
Revolving Credit Agreements | |||
Maximum borrowing capacity | $ 2,975,000 | $ 2,975,000 | |
Letters of credit outstanding | 3,000 | 3,000 | |
Total available | 2,972,000 | 2,972,000 | |
Three Year Agreement | |||
Revolving Credit Agreements | |||
Maximum borrowing capacity | 1,440,000 | 1,440,000 | |
Total available | $ 1,440,000 | $ 1,440,000 | |
Debt Instrument, Maturity Date | Nov. 28, 2021 | Nov. 28, 2021 | |
Line of Credit Facility Commitment Fee Percentage (percent) | [1] | 0.075% | 0.075% |
Five Year Agreement | |||
Revolving Credit Agreements | |||
Maximum borrowing capacity | $ 1,535,000 | $ 1,535,000 | |
Letters of credit outstanding | 3,238 | 3,000 | |
Total available | $ 1,532,000 | $ 1,532,000 | |
Debt Instrument, Maturity Date | Nov. 28, 2023 | Nov. 28, 2023 | |
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, 2019 | May 31, 2019 |
Long-term debt | ||
Long-term debt | $ 19,094,236 | $ 19,210,793 |
Collateral trust bonds | ||
Long-term debt | ||
Long-term Debt, Gross | 7,662,711 | 7,662,711 |
Unamortized discount | (242,123) | (244,643) |
Debt issuance costs | (32,952) | (34,336) |
Long-term debt | 7,387,636 | 7,383,732 |
Guaranteed Underwriter Program notes payable | ||
Long-term debt | ||
Long-term debt | 5,387,155 | 5,410,507 |
Farmer Mac notes payable | ||
Long-term debt | ||
Long-term Debt, Gross | 2,962,478 | 3,054,914 |
Other Secured Notes Payable | ||
Long-term debt | ||
Long-term Debt, Gross | 9,225 | 9,225 |
Debt issuance costs | (162) | (178) |
Long-term debt | 9,063 | 9,047 |
Notes payable | ||
Long-term debt | ||
Long-term debt | 8,358,696 | 8,474,468 |
Secured Debt | ||
Long-term debt | ||
Long-term debt | 15,746,332 | 15,858,200 |
Medium-term notes sold through dealers | ||
Long-term debt | ||
Long-term Debt, Gross | 2,935,540 | 2,962,375 |
Medium-term notes sold to members | ||
Long-term debt | ||
Long-term Debt, Gross | 418,208 | 397,080 |
Unsecured Medium Term Notes | ||
Long-term debt | ||
Long-term Debt, Gross | 3,353,748 | 3,359,455 |
Unamortized discount | (848) | (931) |
Debt issuance costs | (18,492) | (19,399) |
Long-term debt | 3,334,408 | 3,339,125 |
Other Unsecured Notes Payable | ||
Long-term debt | ||
Long-term Debt, Gross | 13,701 | 13,701 |
Unamortized discount | (164) | (187) |
Debt issuance costs | (41) | (46) |
Unsecured notes payable | ||
Long-term debt | ||
Long-term debt | 13,496 | 13,468 |
Unsecured Debt | ||
Long-term debt | ||
Long-term debt | $ 3,347,904 | $ 3,352,593 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2019 | May 31, 2019 | Sep. 13, 2019 | |
Long-term debt | |||
Long-term debt | $ 19,094,236 | $ 19,210,793 | |
Maximum Percentage of Patronage Capital Distribution Allowed | 5.00% | ||
Debt Instrument Fee Percentage | 3000.00% | 0.30% | |
Federal Agricultural Mortgage Corporation | |||
Long-term debt | |||
Maximum borrowing capacity | $ 5,500,000 | ||
Guaranteed Underwriter Program notes payable | |||
Long-term debt | |||
Long-term debt | 5,387,155 | $ 5,410,507 | |
Available under committed loan facilities | 1,350,000 | ||
Notes payable | |||
Long-term debt | |||
Long-term debt | 8,358,696 | 8,474,468 | |
Federal Agricultural Mortgage Corporation First Revolving Note Purchase Agreement | Federal Agricultural Mortgage Corporation | |||
Long-term debt | |||
Long-term debt | 2,962,000 | $ 3,055,000 | |
Maximum borrowing capacity | 5,200,000 | ||
Federal Agricultural Mortgage Corporation Second Revolving Note Purchase Agreement | Federal Agricultural Mortgage Corporation | |||
Long-term debt | |||
Maximum borrowing capacity | $ 300,000 | ||
Subsequent Event | 2.30% CTB | |||
Long-term debt | |||
Long-term Debt, Gross | $ 300,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.30% |
Subordinated Deferrable Debt Su
Subordinated Deferrable Debt Subordinated Deferrable Debt Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Subordinated Deferrable Debt | ||
Subordinated Debt | $ 985,981 | $ 986,020 |
4.75 percent due 2043 | ||
Subordinated Deferrable Debt | ||
Subordinated Debt | $ 400,000 | $ 400,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% |
5.25 Percent Due 2046 | ||
Subordinated Deferrable Debt | ||
Subordinated Debt | $ 350,000 | $ 350,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% |
5.50 Percent Due 2064 | ||
Subordinated Deferrable Debt | ||
Subordinated Debt | $ 250,000 | $ 250,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% |
Subordinated Debt | ||
Subordinated Deferrable Debt | ||
Debt issuance costs | $ 14,019 | $ 13,980 |
Derivative Notional Amounts and
Derivative Notional Amounts and Weighted-Average Rate (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Pay-fixed swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 7,319,015 | $ 7,379,280 |
Derivative, Average Fixed Interest Rate | 2.84% | 2.83% |
Derivative, Average Variable Interest Rate | 2.27% | 2.60% |
Receive fixed swaps | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 3,399,000 | $ 3,399,000 |
Derivative, Average Fixed Interest Rate | 2.56% | 2.56% |
Derivative, Average Variable Interest Rate | 2.96% | 3.25% |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 10,718,015 | $ 10,778,280 |
Derivative Weighted Average Interest Rate Paid Percentage | 2.88% | 2.97% |
Derivative Weighted Average Interest Rate Received Percentage | 2.36% | 2.58% |
Forward Contracts | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 65,000 | $ 65,000 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 10,783,015 | $ 10,843,280 |
Derivatives - Balance Sheet Imp
Derivatives - Balance Sheet Impact (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets | $ 85,533 | $ 41,179 |
Derivative liabilities | 820,872 | 391,724 |
Derivative Asset, Notional Amount | 2,641,803 | 2,332,104 |
Derivative Liability, Notional Amount | $ 8,141,212 | $ 8,511,176 |
Derivatives Offsetting (Details
Derivatives Offsetting (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | $ 85,533 | $ 41,179 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 85,533 | 41,179 |
Derivative, Collateral, Obligation to Return Securities | 85,533 | 41,176 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 3 |
Derivative liabilities | 820,872 | 391,724 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 820,872 | 391,724 |
Derivative, Collateral, Right to Reclaim Securities | 85,533 | 41,176 |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 735,339 | $ 350,548 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities Derivatives - Income Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | ||
Derivative [Line Items] | |||
Derivative cash settlements expense | [1],[2] | $ (213,271) | $ (210,231) |
Derivative forward value gains (losses) | (384,682) | 20,012 | |
Derivative gains (losses) | (395,725) | 7,183 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Derivative cash settlements expense | (11,043) | (12,829) | |
Derivative forward value gains (losses) | (384,682) | 20,012 | |
Derivative gains (losses) | $ (395,725) | $ 7,183 | |
[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. |
Derivatives - Rating Triggers (
Derivatives - Rating Triggers (Details) - Interest rate swaps $ in Thousands | Aug. 31, 2019USD ($) | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 7,819,380 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | (517,534) | |
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (517,534) | |
Moody's, A3 Rating Standard Poor's A- rating | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 50,460 | [1] |
Assets Needed for Immediate Settlement, Aggregate Fair Value | (10,748) | [1] |
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | [1] |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (10,748) | [1] |
Moodys Baa 1 Rating Standard Poor's BBB Plus Rating | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 6,989,288 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | (471,249) | |
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (471,249) | |
Moody's Baa 2 Rating Standard Poor's BBB Rating | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 558,159 | [2] |
Assets Needed for Immediate Settlement, Aggregate Fair Value | (20,778) | [2] |
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | [2] |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | (20,778) | [2] |
Moodys Baa3 Rating Standard Poor's BB Rating | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 221,473 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | (14,759) | |
Assets Received for Immediate Settlement Aggregate Fair Value | 0 | |
Net Asset Needed for Immediate Settlement Aggregate Fair Value | $ (14,759) | |
[1] | Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. | |
[2] | Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively. |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Aug. 31, 2019 | May 31, 2019 | |
Interest Rate Contracts and Treasury Lock | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 165,000 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | $ 41,000 | |
Interest Rate Swaps and Treasury Lock [Member] | ||
Derivative [Line Items] | ||
Concentration Risk, Percentage | 23.00% | 23.00% |
Derivative, Net Liability Position, Aggregate Fair Value | $ 543,000 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2019 | May 31, 2018 | |
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (114) | $ (214) | $ (147) | $ 8,544 |
Cumulative effect from adoption of new accounting standard | (8,794) | |||
Unrealized gains on cash flow hedge | 0 | 24 | ||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI Foreclosed Asset | 33 | 12 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 36 | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 8,794 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | |||
AOCI, Derivative Qualifying as Hedge, Excluded Component, Parent [Member] | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,459 | 2,920 | 2,571 | 3,039 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (112) | (119) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (119) | |||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0 | (1,035) | 0 | (1,059) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 24 | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 24 | |||
Accumulated Defined Benefit Plans Adjustment, Net Transition Attributable to Parent | ||||
Stockholder's Equity [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (2,573) | (2,099) | $ (2,718) | $ (2,230) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 145 | 131 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 131 | |||
Retained Earnings, Unappropriated | ||||
Stockholder's Equity [Line Items] | ||||
Cumulative effect from adoption of new accounting standard | $ (8,794) |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2019 | May 31, 2018 | |
Stockholder's Equity [Line Items] | ||||
Stockholders' Equity, Period Increase (Decrease) | $ (385,000) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 918,428 | $ 1,506,576 | $ 1,303,882 | $ 1,505,853 |
Net income (loss) | (324,079) | 47,978 | ||
Patronage capital retirement | $ (62,822) | (47,507) | ||
Fiscal Period Duration | 40 years | |||
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 | 797,756 | 763,986 | 860,578 | 811,493 |
Patronage capital retirement | (62,822) | (47,507) | ||
Retained Earnings Allocation of Fifty Percent of Prior Year Patronage Capital Allocation [Member] | ||||
Stockholder's Equity [Line Items] | ||||
Patronage capital retirement | (48,000) | |||
Retained Earnings Allocation Held for Twenty Five Years [Member] | ||||
Stockholder's Equity [Line Items] | ||||
Patronage capital retirement | (15,000) | |||
Members’ Capital Reserve | ||||
Stockholder's Equity [Line Items] | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 759,097 | $ 687,785 | $ 759,097 | $ 687,785 |
Patronage Capital Retired | ||||
Stockholder's Equity [Line Items] | ||||
Fiscal Period Duration | 39 years | |||
CFC | Patronage Capital Allocated | ||||
Stockholder's Equity [Line Items] | ||||
Retained Patronage Allocations | $ 97,000 | |||
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 | $ 71,000 |
Guarantees Outstanding (Details
Guarantees Outstanding (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | |
Guarantees | |||
Guarantor obligations | $ 801,327 | $ 837,435 | |
CFC | |||
Guarantees | |||
Guarantor obligations | 789,988 | 827,344 | |
CFC | Distribution | |||
Guarantees | |||
Guarantor obligations | 242,630 | 235,919 | |
CFC | Power supply | |||
Guarantees | |||
Guarantor obligations | 542,060 | 586,717 | |
CFC | Statewide and associate | |||
Guarantees | |||
Guarantor obligations | 5,298 | 4,708 | |
NCSC | |||
Guarantees | |||
Guarantor obligations | 9,765 | 8,517 | |
RTFC | |||
Guarantees | |||
Guarantor obligations | 1,574 | 1,574 | |
Long-term tax-exempt bonds | |||
Guarantees | |||
Guarantor obligations | [1] | 311,590 | 312,190 |
Letters of credit | |||
Guarantees | |||
Guarantor obligations | [2] | 342,831 | 379,001 |
Other guarantees | |||
Guarantees | |||
Guarantor obligations | $ 146,906 | $ 146,244 | |
[1] | Represents the outstanding principal amount of long-term fixed-rate and variable-rate guaranteed bonds. | ||
[2] | Reflects our maximum potential exposure for letters of credit. |
Guarantees - Additional Informa
Guarantees - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Aug. 31, 2019 | May 31, 2019 | ||
Guarantees | |||
Guarantor obligations | $ 801,327 | $ 837,435 | |
Guarantee Obligations Unsecured | $ 360,000 | $ 374,000 | |
Guarantee Obligations Unsecured Commitment as Percentage of Total Commitment | 45.00% | 45.00% | |
Guarantee Liability Recorded | $ 14,000 | $ 14,000 | |
Guaranty Liabilities Contingent | 1,000 | 1,000 | |
Guaranty Liabilities | 13,000 | 13,000 | |
Long-term variable-rate loans | |||
Guarantees | |||
Guarantee Obligations Liquidity Provided to Member Carrying Value | 247,000 | ||
Long-term tax-exempt bonds | |||
Guarantees | |||
Guarantor obligations | [1] | 311,590 | 312,190 |
Financial Guarantee | Long-term fixed-rate bonds | |||
Guarantees | |||
Guarantor obligations | 65,000 | ||
Financial Guarantee | Long Term Fixed Rate Loans | |||
Guarantees | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | 90,000 | ||
Financial Guarantee | Long-term variable-rate loans | |||
Guarantees | |||
Guarantor obligations | 247,000 | 247,000 | |
Letters of credit | |||
Guarantees | |||
Guarantor obligations | [2] | 342,831 | 379,001 |
Guarantee Obligations Secured | 104,000 | 126,000 | |
Master Letter of Credit | Master Letter of Credit | |||
Guarantees | |||
Letter of Credit Facility Maximum Additional Amount Potentially Required to be Issued | 57,000 | ||
Other guarantees | |||
Guarantees | |||
Guarantor obligations | 146,906 | 146,244 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | 147,000 | 147,000 | |
Other secured guarantees | |||
Guarantees | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 25,000 | $ 25,000 | |
[1] | Represents the outstanding principal amount of long-term fixed-rate and variable-rate guaranteed bonds. | ||
[2] | Reflects our maximum potential exposure for letters of credit. |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 | Aug. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 231,050 | $ 177,922 | |
Cash and Cash Equivalents, Fair Value Disclosure | 231,050 | 177,922 | |
Restricted cash | 9,138 | 8,282 | |
Equity securities | 63,922 | 87,533 | |
Debt Securities, Held-to-maturity | 569,575 | 565,444 | |
Debt Securities, Held-to-maturity, Fair Value | 580,476 | 570,549 | |
Deferred Compensation Plan Assets | 5,923 | 4,984 | |
Loans and Leases Receivable Commercial, Net of Allowance | 26,282,273 | 25,899,369 | $ 25,163,962 |
Loans Receivable, Fair Value Disclosure | 28,353,451 | 25,743,503 | |
Accrued interest receivable | 133,119 | 133,605 | |
Debt service reserve restricted funds | 17,151 | 17,151 | |
Derivative assets | 85,533 | 41,179 | |
Short-term borrowings | 4,027,645 | 3,607,726 | |
Short-term Debt, Fair Value | 4,028,391 | 3,608,259 | |
Long-term debt | 19,094,236 | 19,210,793 | |
Long-term Debt, Fair Value | 20,650,260 | 20,147,183 | |
Accrued interest payable | 209,931 | 158,997 | |
Guaranty Liabilities Contingent and Noncontingent | 13,514 | 13,666 | |
Guarantees, Fair Value Disclosure | 13,406 | 13,307 | |
Derivative liabilities | 820,872 | 391,724 | |
Subordinated deferrable debt | 985,981 | 986,020 | |
Subordinated Debt Obligations, Fair Value Disclosure | 1,055,555 | 1,004,707 | |
Members Subordinated Certificates | 1,356,485 | 1,357,129 | |
Members Subordinated Certificates, At Fair Value | 1,356,485 | 1,357,129 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 231,050 | 177,922 | |
Restricted cash | 9,138 | 8,282 | |
Equity securities | 63,922 | 87,533 | |
Deferred Compensation Plan Assets | 5,923 | 4,984 | |
Accrued interest receivable | 0 | ||
Debt service reserve restricted funds | 17,151 | 17,151 | |
Short-term Debt, Fair Value | 0 | ||
Accrued interest payable | 0 | ||
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities, Held-to-maturity, Fair Value | 580,476 | 570,549 | |
Accrued interest receivable | 133,119 | 133,605 | |
Derivative assets | 85,533 | 41,179 | |
Short-term Debt, Fair Value | 4,028,391 | 3,608,259 | |
Long-term Debt, Fair Value | 11,840,788 | 11,482,715 | |
Accrued interest payable | 209,931 | 158,997 | |
Derivative liabilities | 820,872 | 391,724 | |
Subordinated Debt Obligations, Fair Value Disclosure | 1,055,555 | 1,004,707 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans Receivable, Fair Value Disclosure | 28,353,451 | 25,743,503 | |
Short-term Debt, Fair Value | 0 | 0 | |
Long-term Debt, Fair Value | 8,809,472 | 8,664,468 | |
Guarantees, Fair Value Disclosure | 13,406 | 13,307 | |
Members Subordinated Certificates, At Fair Value | $ 1,356,485 | $ 1,357,129 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Aug. 31, 2019 | May 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 63,922 | $ 87,533 |
Deferred Compensation Plan Assets | 5,923 | 4,984 |
Derivative assets | 85,533 | 41,179 |
Derivative liabilities | 820,872 | 391,724 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 63,922 | 87,533 |
Deferred Compensation Plan Assets | 5,923 | 4,984 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 85,533 | 41,179 |
Derivative liabilities | 820,872 | 391,724 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 63,922 | 87,533 |
Deferred Compensation Plan Assets | 5,923 | 4,984 |
Derivative assets | 85,533 | 41,179 |
Derivative liabilities | 820,872 | 391,724 |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 63,922 | 87,533 |
Deferred Compensation Plan Assets | 5,923 | 4,984 |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 85,533 | 41,179 |
Derivative liabilities | $ 820,872 | $ 391,724 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value Assets Measured On Nonrecurring Basis Change In Unrealized Gain Loss Recorded In Earnings | $ 0 | $ 0 | |
Impaired Financing Receivable, Recorded Investment | 11,222,000 | $ 11,853,000 | |
Collateral Pledged | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | $ 0 | $ 0 |
Business Segments - Segment Res
Business Segments - Segment Results and Total Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Aug. 31, 2019 | Aug. 31, 2018 | May 31, 2019 | May 31, 2018 | ||
Statement of operations: | |||||
Interest income | $ 290,015 | $ 278,491 | |||
Interest expense | [1],[2] | (213,271) | (210,231) | ||
Net interest income | 76,744 | 68,260 | |||
Provision for loan losses | (30) | 109 | |||
Net interest income after benefit (provision) for loan losses | 76,714 | 68,369 | |||
Fee and other income | 10,941 | 3,911 | |||
Non-interest income: | |||||
Gain (Loss) on Sale of Derivatives | (12,829) | ||||
Unrealized Gain (Loss) on Derivatives | 384,682 | (20,012) | |||
Derivative gains (losses) | (395,725) | 7,183 | |||
Unrealized gains (losses) on equity securities | 1,620 | (726) | |||
Total non-interest income | (383,164) | 10,368 | |||
Non-interest expense: | |||||
General and administrative expenses | (25,329) | (23,205) | |||
Losses on early extinguishment of debt | 0 | (7,100) | |||
Other non-interest (expense) income | 7,179 | (394) | |||
Total non-interest expense | (18,150) | (30,699) | |||
Income (loss) before income taxes | (324,600) | 48,038 | |||
Income tax benefit (expense) | 521 | (60) | |||
Net income (loss) | (324,079) | 47,978 | |||
Assets: | |||||
Total recorded investment in loans | 26,288,599 | 25,171,436 | $ 25,905,664 | ||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11,239 | 11,218 | 11,240 | ||
Loans to members | 26,299,838 | 25,182,654 | 25,916,904 | ||
Less: Allowance for loan losses | (17,565) | (18,692) | (17,535) | $ (18,801) | |
Loans to members, net | 26,282,273 | 25,163,962 | 25,899,369 | ||
Other assets | 1,296,483 | 1,512,245 | |||
Total assets | 27,578,756 | 26,676,207 | $ 27,124,372 | ||
CFC | |||||
Statement of operations: | |||||
Interest income | 287,964 | 276,243 | |||
Interest expense | (213,135) | (210,050) | |||
Net interest income | 74,829 | 66,193 | |||
Provision for loan losses | (30) | 109 | |||
Net interest income after benefit (provision) for loan losses | 74,799 | 66,302 | |||
Fee and other income | 12,282 | 5,199 | |||
Non-interest income: | |||||
Gain (Loss) on Sale of Derivatives | (10,801) | (12,562) | |||
Unrealized Gain (Loss) on Derivatives | 382,762 | (19,671) | |||
Derivative gains (losses) | (393,563) | 7,109 | |||
Results of operations of foreclosed assets | (1,620) | 726 | |||
Total non-interest income | (379,661) | 11,582 | |||
Non-interest expense: | |||||
General and administrative expenses | (24,739) | (22,425) | |||
Losses on early extinguishment of debt | (7,100) | ||||
Other non-interest (expense) income | 7,179 | (394) | |||
Total non-interest expense | (17,560) | (29,919) | |||
Income (loss) before income taxes | (322,422) | 47,965 | |||
Net income (loss) | (322,422) | 47,965 | |||
Assets: | |||||
Total recorded investment in loans | 26,258,810 | 25,138,742 | |||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 11,239 | 11,218 | |||
Loans to members | 26,270,049 | 25,149,960 | |||
Less: Allowance for loan losses | (17,565) | (18,692) | |||
Loans to members, net | 26,252,484 | 25,131,268 | |||
Other assets | 1,286,409 | 1,501,315 | |||
Total assets | 27,538,893 | 26,632,583 | |||
Other | |||||
Statement of operations: | |||||
Interest income | 12,347 | 12,984 | |||
Interest expense | (10,432) | (10,917) | |||
Net interest income | 1,915 | 2,067 | |||
Provision for loan losses | 0 | ||||
Net interest income after benefit (provision) for loan losses | 1,915 | 2,067 | |||
Fee and other income | 7,821 | 564 | |||
Non-interest income: | |||||
Gain (Loss) on Sale of Derivatives | (242) | (267) | |||
Unrealized Gain (Loss) on Derivatives | (1,920) | 341 | |||
Derivative gains (losses) | (2,162) | 74 | |||
Total non-interest income | 5,659 | 638 | |||
Non-interest expense: | |||||
General and administrative expenses | (2,235) | (2,374) | |||
Other non-interest (expense) income | (7,517) | (258) | |||
Total non-interest expense | (9,752) | (2,632) | |||
Income (loss) before income taxes | (2,178) | 73 | |||
Income tax benefit (expense) | 521 | (60) | |||
Net income (loss) | (1,657) | 13 | |||
Assets: | |||||
Total recorded investment in loans | 1,048,892 | 1,139,507 | |||
Loans to members | 1,048,892 | 1,139,507 | |||
Loans to members, net | 1,048,892 | 1,139,507 | |||
Other assets | 105,290 | 106,902 | |||
Total assets | 1,154,182 | 1,246,409 | |||
Elimination | |||||
Statement of operations: | |||||
Interest income | (10,296) | (10,736) | |||
Interest expense | 10,296 | 10,736 | |||
Net interest income | 0 | 0 | |||
Provision for loan losses | 0 | ||||
Net interest income after benefit (provision) for loan losses | 0 | 0 | |||
Fee and other income | (9,162) | (1,852) | |||
Non-interest income: | |||||
Derivative gains (losses) | 0 | 0 | |||
Total non-interest income | (9,162) | (1,852) | |||
Non-interest expense: | |||||
General and administrative expenses | 1,645 | 1,594 | |||
Other non-interest (expense) income | 7,517 | 258 | |||
Total non-interest expense | 9,162 | 1,852 | |||
Assets: | |||||
Total recorded investment in loans | (1,019,103) | (1,106,813) | |||
Loans to members | (1,019,103) | (1,106,813) | |||
Loans to members, net | (1,019,103) | (1,106,813) | |||
Other assets | (95,216) | (95,972) | |||
Total assets | $ (1,114,319) | $ (1,202,785) | |||
[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. |