Cover Page
Cover Page | 9 Months Ended |
Feb. 28, 2022shares | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Feb. 28, 2022 |
Document Transition Report | false |
Entity File Number | 1-7102 |
Entity Registrant Name | NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION |
Entity Incorporation, State or Country Code | DC |
Entity Tax Identification Number | 52-0891669 |
Entity Address, Address Line One | 20701 Cooperative Way, |
Entity Address, City or Town | Dulles, |
Entity Address, State or Province | VA |
Entity Address, Postal Zip Code | 20166 |
City Area Code | (703) |
Local Phone Number | 467-1800 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 0 |
Entity Central Index Key | 0000070502 |
Current Fiscal Year End Date | --05-31 |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2022 |
Amendment Flag | false |
7.35% Collateral Trust Bonds, due 2026 | |
Title of 12(b) Security | 7.35% Collateral Trust Bonds, due 2026 |
Trading Symbol | NRUC 26 |
Security Exchange Name | NYSE |
5.50% Subordinated Notes, due 2064 | |
Title of 12(b) Security | 5.50% Subordinated Notes, due 2064 |
Trading Symbol | NRUC |
Security Exchange Name | NYSE |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Income Statement [Abstract] | ||||
Interest income | $ 285,206 | $ 278,172 | $ 851,626 | $ 834,255 |
Interest expense | (173,654) | (173,040) | (522,027) | (527,438) |
Net interest income | 111,552 | 105,132 | 329,599 | 306,817 |
Benefit (provision) for credit losses | 12,749 | (33,023) | 12,146 | (34,987) |
Net interest income after benefit (provision) for credit losses | 124,301 | 72,109 | 341,745 | 271,830 |
Non-interest income: | ||||
Fee and other income | 4,270 | 3,819 | 13,042 | 13,667 |
Derivative gains | 169,280 | 330,196 | 43,203 | 471,759 |
Investment securities gains (losses) | (11,621) | (2,807) | (18,190) | 491 |
Total non-interest income | 161,929 | 331,208 | 38,055 | 485,917 |
Non-interest expense: | ||||
Salaries and employee benefits | (13,181) | (14,259) | (38,871) | (41,403) |
Other general and administrative expenses | (9,898) | (9,303) | (31,513) | (28,958) |
Losses on early extinguishment of debt | (578) | 0 | (696) | (1,455) |
Other non-interest expense | (265) | (301) | (834) | (956) |
Total non-interest expense | (23,922) | (23,863) | (71,914) | (72,772) |
Income before income taxes | 262,308 | 379,454 | 307,886 | 684,975 |
Income tax provision | (343) | (507) | (524) | (920) |
Net income | 261,965 | 378,947 | 307,362 | 684,055 |
Less: Net income attributable to noncontrolling interests | (888) | (1,213) | (1,081) | (1,889) |
Net income attributable to CFC | $ 261,077 | $ 377,734 | $ 306,281 | $ 682,166 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 261,965 | $ 378,947 | $ 307,362 | $ 684,055 |
Other comprehensive income (loss): | ||||
Changes in unrealized gains on derivative cash flow hedges | 0 | 0 | 4,028 | 0 |
Reclassification to earnings of realized gains on derivatives | (192) | (101) | (432) | (313) |
Defined benefit plan adjustments | 72 | 188 | 215 | 564 |
Other comprehensive income (loss) | (120) | 87 | 3,811 | 251 |
Total comprehensive income | 261,845 | 379,034 | 311,173 | 684,306 |
Less: Total comprehensive income attributable to noncontrolling interests | (888) | (1,213) | (1,081) | (1,889) |
Total comprehensive income attributable to CFC | $ 260,957 | $ 377,821 | $ 310,092 | $ 682,417 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Assets: | ||
Cash and cash equivalents | $ 104,248 | $ 295,063 |
Restricted cash | 6,530 | 8,298 |
Total cash, cash equivalents and restricted cash | 110,778 | 303,361 |
Investment securities: | ||
Debt securities trading, at fair value ($210,894 pledged as collateral as of May 31, 2021) | 565,426 | 576,175 |
Equity securities, at fair value | 35,358 | 35,102 |
Total investment securities, at fair value | 600,784 | 611,277 |
Loans to members | 29,520,381 | 28,426,961 |
Less: Allowance for credit losses | (73,386) | (85,532) |
Loans to members, net | 29,446,995 | 28,341,429 |
Accrued interest receivable | 110,484 | 107,856 |
Other receivables | 35,646 | 37,197 |
Fixed assets, net | 99,087 | 91,882 |
Derivative assets | 50,901 | 121,259 |
Other assets | 28,847 | 24,102 |
Total assets | 30,483,522 | 29,638,363 |
Liabilities: | ||
Accrued interest payable | 171,406 | 123,672 |
Debt outstanding: | ||
Short-term borrowings | 4,428,057 | 4,582,096 |
Long-term debt | 21,521,734 | 20,603,123 |
Subordinated deferrable debt | 986,466 | 986,315 |
Members’ subordinated certificates: | ||
Membership subordinated certificates | 628,598 | 628,594 |
Loan and guarantee subordinated certificates | 366,068 | 386,896 |
Member capital securities | 239,170 | 239,170 |
Total members’ subordinated certificates | 1,233,836 | 1,254,660 |
Total debt outstanding | 28,170,093 | 27,426,194 |
Deferred income | 45,752 | 51,198 |
Derivative liabilities | 391,988 | 584,989 |
Other liabilities | 51,688 | 52,431 |
Total liabilities | 28,830,927 | 28,238,484 |
CFC equity: | ||
Retained equity | 1,622,995 | 1,374,973 |
Accumulated other comprehensive income (loss) | 3,786 | (25) |
Total CFC equity | 1,626,781 | 1,374,948 |
Noncontrolling interests | 25,814 | 24,931 |
Total equity | 1,652,595 | 1,399,879 |
Total liabilities and equity | $ 30,483,522 | $ 29,638,363 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Statement of Financial Position [Abstract] | ||
Debt securities trading, at fair value, pledged as collateral | $ 0 | $ 210,894 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative-effect adjustment from adoption of new accounting standard | Cumulative effect, period of adoption, adjusted balance | Membership Fees and Educational Fund | Membership Fees and Educational FundCumulative effect, period of adoption, adjusted balance | Patronage Capital Allocated | Patronage Capital AllocatedCumulative effect, period of adoption, adjusted balance | Members’ Capital Reserve | Members’ Capital ReserveCumulative effect, period of adoption, adjusted balance | Unallocated Net Income (Loss) | Unallocated Net Income (Loss)Cumulative-effect adjustment from adoption of new accounting standard | Unallocated Net Income (Loss)Cumulative effect, period of adoption, adjusted balance | CFC Retained Equity | CFC Retained EquityCumulative-effect adjustment from adoption of new accounting standard | CFC Retained EquityCumulative effect, period of adoption, adjusted balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative effect, period of adoption, adjusted balance | Total CFC Equity | Total CFC EquityCumulative-effect adjustment from adoption of new accounting standard | Total CFC EquityCumulative effect, period of adoption, adjusted balance | Non-controlling Interests | Non-controlling InterestsCumulative effect, period of adoption, adjusted balance |
Beginning balance at May. 31, 2020 | $ 648,822 | $ (3,900) | $ 644,922 | $ 3,193 | $ 3,193 | $ 894,066 | $ 894,066 | $ 807,320 | $ 807,320 | $ (1,076,548) | $ (3,900) | $ (1,080,448) | $ 628,031 | $ (3,900) | $ 624,131 | $ (1,910) | $ (1,910) | $ 626,121 | $ (3,900) | $ 622,221 | $ 22,701 | $ 22,701 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net income | 684,055 | 682,166 | 682,166 | 682,166 | 1,889 | |||||||||||||||||
Other comprehensive loss | 251 | 251 | 251 | |||||||||||||||||||
Patronage capital retirement | (61,911) | (59,857) | (59,857) | (59,857) | (2,054) | |||||||||||||||||
Other | 1,272 | (714) | (714) | (714) | 1,986 | |||||||||||||||||
Ending balance at Feb. 28, 2021 | 1,268,589 | 2,479 | 834,209 | 807,320 | (398,282) | 1,245,726 | (1,659) | 1,244,067 | 24,522 | |||||||||||||
Beginning balance at Nov. 30, 2020 | 891,719 | 2,551 | 834,209 | 807,320 | (776,016) | 868,064 | (1,746) | 866,318 | 25,401 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net income | 378,947 | 377,734 | 377,734 | 377,734 | 1,213 | |||||||||||||||||
Other comprehensive loss | 87 | 87 | 87 | |||||||||||||||||||
Patronage capital retirement | (2,054) | (2,054) | ||||||||||||||||||||
Other | (110) | (72) | (72) | (72) | (38) | |||||||||||||||||
Ending balance at Feb. 28, 2021 | 1,268,589 | 2,479 | 834,209 | 807,320 | (398,282) | 1,245,726 | (1,659) | 1,244,067 | 24,522 | |||||||||||||
Beginning balance at May. 31, 2021 | 1,399,879 | 3,125 | 923,970 | 909,749 | (461,871) | 1,374,973 | (25) | 1,374,948 | 24,931 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net income | 307,362 | 306,281 | 306,281 | 306,281 | 1,081 | |||||||||||||||||
Other comprehensive loss | 3,811 | 3,811 | 3,811 | |||||||||||||||||||
Patronage capital retirement | (59,979) | (57,565) | (57,565) | (57,565) | (2,414) | |||||||||||||||||
Other | 1,522 | (694) | (694) | (694) | 2,216 | |||||||||||||||||
Ending balance at Feb. 28, 2022 | 1,652,595 | 2,431 | 866,405 | 909,749 | (155,590) | 1,622,995 | 3,786 | 1,626,781 | 25,814 | |||||||||||||
Beginning balance at Nov. 30, 2021 | 1,390,985 | 2,665 | 866,405 | 909,749 | (416,667) | 1,362,152 | 3,906 | 1,366,058 | 24,927 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net income | 261,965 | 261,077 | 261,077 | 261,077 | 888 | |||||||||||||||||
Other comprehensive loss | (120) | (120) | (120) | |||||||||||||||||||
Patronage capital retirement | 0 | 0 | ||||||||||||||||||||
Other | (235) | (234) | (234) | (234) | (1) | |||||||||||||||||
Ending balance at Feb. 28, 2022 | $ 1,652,595 | $ 2,431 | $ 866,405 | $ 909,749 | $ (155,590) | $ 1,622,995 | $ 3,786 | $ 1,626,781 | $ 25,814 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 307,362 | $ 684,055 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred loan fees | (6,233) | (7,144) |
Amortization of debt issuance costs and deferred charges | 7,412 | 8,224 |
Amortization of discount on long-term debt | 9,656 | 8,832 |
Amortization of issuance costs for bank revolving lines of credit | 3,290 | 3,317 |
Depreciation and amortization | 5,811 | 5,825 |
(Benefit) provision for credit losses | (12,146) | 34,987 |
Loss on early extinguishment of debt | 696 | 1,455 |
Unrealized losses (gains) on equity and debt securities | 17,619 | (36) |
Derivative forward value gains | (122,930) | (558,266) |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | (2,628) | 5,317 |
Accrued interest payable | 47,734 | 36,005 |
Deferred income | 787 | 1,327 |
Other | (508) | (3,100) |
Net cash provided by operating activities | 255,922 | 220,798 |
Cash flows from investing activities: | ||
Advances on loans, net | (1,093,256) | (1,624,817) |
Investments in fixed assets, net | (12,363) | (5,156) |
Purchase of trading securities | (122,116) | (350,899) |
Proceeds from sales and maturities of trading securities | 114,419 | 84,271 |
Proceeds from redemption of equity securities | 0 | 30,000 |
Net cash used in investing activities | (1,113,316) | (1,866,601) |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings ≤ 90 days, net | 31,983 | 779,124 |
Proceeds from short-term borrowings with original maturity > 90 days | 1,975,416 | 2,260,900 |
Repayments of short-term borrowings with original maturity > 90 days | (2,161,438) | (2,594,052) |
Payments for issuance costs for revolving bank lines of credit | (3,563) | 0 |
Proceeds from issuance of long-term debt, net of discount and issuance costs | 3,395,920 | 2,380,354 |
Payments for retirement of long-term debt | (2,494,226) | (1,553,744) |
Payments made for early extinguishment of debt | (696) | (1,455) |
Proceeds from issuance of members’ subordinated certificates | 359 | 14,288 |
Payments for retirement of members’ subordinated certificates | (21,183) | (82,291) |
Payments for retirement of patronage capital | (57,761) | (59,888) |
Additions for membership fees, net | 0 | 1 |
Net cash provided by financing activities | 664,811 | 1,143,237 |
Net decrease in cash, cash equivalents and restricted cash | (192,583) | (502,566) |
Beginning cash, cash equivalents and restricted cash | 303,361 | 680,019 |
Ending cash, cash equivalents and restricted cash | 110,778 | 177,453 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 451,179 | 467,621 |
Cash paid for income taxes | $ 3 | $ 156 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Feb. 28, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company National Rural Utilities Cooperative Finance Corporation (“CFC”) is a tax-exempt, member-owned cooperative association incorporated under the laws of the District of Columbia in April 1969. CFC’s principal purpose is to provide its members with financing to supplement the loan programs of the Rural Utilities Service (“RUS”) of the United States Department of Agriculture (“USDA”). CFC makes loans to its rural electric members so they can acquire, construct and operate electric distribution systems, electric generation and transmission (“power supply”) systems and related facilities. CFC also provides its members with credit enhancements in the form of letters of credit and guarantees of debt obligations. As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities. Basis of Presentation and Use of Estimates The accompanying unaudited interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and for interim financial statements. These consolidated financial statements include the accounts of CFC, variable interest entities (“VIEs”) where CFC is the primary beneficiary and subsidiary entities created and controlled by CFC to hold foreclosed assets. National Cooperative Services Corporation (“NCSC”) and Rural Telephone Finance Cooperative (“RTFC”) are VIEs that are required to be consolidated by CFC. NCSC is a taxable member-owned cooperative that may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural,” and for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. RTFC is a taxable Subchapter T cooperative association that provides financing for its rural telecommunications members and their affiliates. CFC has not had entities that held foreclosed assets since fiscal year 2017. All intercompany balances and transactions have been eliminated. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures during the period. Management’s most significant estimates and assumptions involve determining the allowance for credit losses. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. In the opinion of management, these unaudited interim financial statements reflect all adjustments of a normal, recurring nature that are necessary for the fair statement of results for the periods presented. The results in the interim financial statements are not necessarily indicative of results that may be expected for the full fiscal year, and the unaudited interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in CFC’s Annual Report on Form 10-K for the fiscal year ended May 31, 2021 (“2021 Form 10-K”). Certain reclassifications and updates may have been made to the presentation of information in prior periods to conform to the current period presentation. COVID-19 The future trajectory of COVID-19 cases and timing of when the virus will be fully controlled or abated remain uncertain. We continue to closely monitor developments; however, we cannot predict the future impact of COVID-19 on our operational and financial performance, or the specific ways the pandemic may uniquely impact our members, all of which continue to involve significant uncertainties that depend on future developments, which include, among others, the severity and duration of the current COVID-19 resurgence and its impact on the overall economy and other industry sectors; vaccination rates; the longer-term efficacy of vaccinations; and the potential emergence of new, more transmissible or severe variants. New Accounting Standards Financial Instruments-Credit Losses, Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which addresses and amends areas identified by the FASB as part of its post-implementation review of the accounting standard that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross writeoffs for financing receivables and net investment in leases by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for entities, such as CFC, that have adopted the CECL accounting standard. Early adoption, however, is permitted if an entity has adopted the CECL accounting standard. We expect to adopt the guidance for our fiscal year beginning June 1, 2022. While the guidance will result in expanded disclosures, we do not expect an impact on our consolidated results of operation, financial condition or liquidity from adoption of this accounting standard. Amendments of Certain Securities and Exchange (“SEC”) Disclosure Guidance In August 20 21, the FASB issued ASU 2021-06, Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946), Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses, and No.33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. This update amends certain SEC disclosure guidance that is included in the accounting standards codification to reflect the SEC’s recent issuance of rules intended to modernize and streamline disclosure requirements. We adopted the SEC’s guidance on the presentation of financial statements and update of statistical disclosures for bank and savings and loan registrants in conjunction with the completion of our Annual Report on Form 10-K for the fiscal year ended May 31, 2021 (“2021 Form 10-K”), which we filed with the SEC on July 30, 2021. The adoption of this disclosure guidance did not have a material impact on our consolidated financial statements. Reference Rate Reform In March 2020, the FASB issu ed ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions for applying U.S. GAAP on contracts, hedging relationships and other transactions subject to modification due to the expected discontinuance of the London Interbank Offered Rate (“LIBOR”) and other reference rate reform changes to ease the potential accounting and financial burdens related to the expected transition in market reference rates. This guidance permits entities to elect not to apply certain modification accounting requirements to contracts affected by reference rate transition, if certain criteria are met. An entity that makes this election would not be required to remeasure modified contracts at the modification date or reassess a previous accounting determination. The guidance was effective upon issuance on March 12, 2020, and can generally be applied through December 31, 2022. We expect to apply certain of the practical expedients and are in the process of evaluating the timing and application of those elections. Based on our current assessment, we do not believe that the application of this guidance will have a material impact on our consolidated financial statements. |
Interest Income and Interest Ex
Interest Income and Interest Expense | 9 Months Ended |
Feb. 28, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Interest Income and Interest Expense | NOTE 2—INTEREST INCOME AND INTEREST EXPENSE The following table displays the components of interest income, by interest-earning asset type, and interest expense, by debt product type, presented on our consolidated statements of operations for the three and nine months ended February 28, 2022 and 2021. Table 2.1: Interest Income and Interest Expense Three Months Ended February 28, Nine Months Ended February 28, (Dollars in thousands) 2022 2021 2022 2021 Interest income: Loans (1)(2) $ 281,361 $ 274,265 $ 839,548 $ 822,605 Investment securities 3,845 3,907 12,078 11,650 Total interest income 285,206 278,172 851,626 834,255 Interest expense: (3)(4) Short-term borrowings 3,802 3,473 10,271 11,217 Long-term debt 143,639 143,210 432,608 436,702 Subordinated debt 26,213 26,357 79,148 79,519 Total interest expense 173,654 173,040 522,027 527,438 Net interest income $ 111,552 $ 105,132 $ 329,599 $ 306,817 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized in interest income over the period to maturity using the effective interest method. (2) Includes late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs. (3) Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense over the period to maturity using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized in interest expense immediately as incurred. (4) Includes fees related to funding arrangements, such as up-front fees paid to banks participating in our committed bank revolving line of credit agreements. Based on the nature of the fees, the amount is either recognized immediately as incurred or deferred and recognized in interest expense ratably over the term of the arrangement. Deferred income reported on our consolidated balance sheets of $46 million and $51 million as of February 28, 2022 and May 31, 2021, respectively, consists primarily of deferred loan conversion fees of $39 million and $45 million as of each respective date. |
Investment Securities
Investment Securities | 9 Months Ended |
Feb. 28, 2022 | |
Investments [Abstract] | |
Investment Securities | NOTE 3—INVESTMENT SECURITIES Our investment securities portfolio consists of debt securities classified as trading and equity securities with readily determinable fair values. We therefore record changes in the fair value of our debt and equity securities in earnings and report these unrealized changes together with realized gains and losses from the sale of securities as a component of non-interest income in our consolidated statements of operations. Debt Securities The following table presents the composition of our investment debt securities portfolio and the fair value as of February 28, 2022 and May 31, 2021. Table 3.1: Investments in Debt Securities, at Fair Value (Dollars in thousands) February 28, 2022 May 31, 2021 Debt securities, at fair value: Certificates of deposit $ — $ 1,501 Commercial paper 13,969 12,365 Corporate debt securities 483,588 497,944 Commercial agency mortgage-backed securities (“MBS”) (1) 7,786 8,683 U.S. state and municipality debt securities 21,396 11,840 Foreign government debt securities 979 999 Other asset-backed securities (2) 37,708 42,843 Total debt securities trading, at fair value $ 565,426 $ 576,175 ____________________________ (1) Consists of securities backed by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”). (2) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. We recognized net unrealized losses on our debt securities of $9 million and $3 million for the three months ended February 28, 2022 and 2021, respectively. We recognized net unrealized losses on our debt securities of $18 million and $2 million for the nine months ended February 28, 2022 and 2021, respectively. We received cash proceeds of $3 million on the sale of debt securities during the three months ended February 28, 2022 and recorded gains on the sale of these securities of less than $1 million for the period. We did not sell any debt securities during the three months ended February 28, 2021. We received cash proceeds of $5 million on the sale of debt securities during the nine months ended February 28, 2022 and recorded gains on the sale of these securities of less than $1 million for the period. We received cash proceeds of $6 million on the sale of debt securities during the nine months ended February 28, 2021 and recorded losses related to the sale of these securities of less than $1 million during nine months ended February 28, 2021. Pledged Collateral—Debt securities Under master repurchase agreements with counterparties, we can obtain short-term funding by selling investment-grade corporate debt securities from our investment portfolio subject to an obligation to repurchase the same or similar securities at an agreed-upon price and date. Because we retain effective control over the transferred securities, transactions under these repurchase agreements are accounted for as collateralized financing agreements ( i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a component of our short- term borrowings on our consolidated balance sheets. The aggregate fair value of debt securities underlying repurchase transactions is parenthetically disclosed on our consolidated balance sheets. We had no borrowings under repurchase transactions outstanding as of February 28, 2022; therefore, we had no debt securities pledged as collateral as of February 28, 2022. We had short-term borrowings under repurchase transactions of $200 million as of May 31, 2021. The debt securities underlying these transactions had an aggregate fair value of $211 million as of this date, and we repurchased the securities on June 2, 2021. Equity Securities The following table presents the composition of our equity security holdings and the fair value as of February 28, 2022 and May 31, 2021. Table 3.2: Investments in Equity Securities, at Fair Value (Dollars in thousands) February 28, 2022 May 31, 2021 Equity securities, at fair value: Farmer Mac—Series C non-cumulative preferred stock $ 25,750 $ 27,450 Farmer Mac—Class A common stock 9,608 7,652 Total equity securities, at fair value $ 35,358 $ 35,102 We recognized net unrealized losses on our equity securities of $2 million for the three months ended February 28, 2022, compared with net unrealized gains of less than $1 million for the three months ended February 28, 2021. We recognized net unrealized gains on our equity securities of less than $1 million and $2 million for the nine months ended February 28, 2022 and 2021, respectively. |
Loans
Loans | 9 Months Ended |
Feb. 28, 2022 | |
Receivables [Abstract] | |
Loans | NOTE 4—LOANS We segregate our loan portfolio into segments, by legal entity, based on the borrower member class, which consists of CFC distribution, CFC power supply, CFC statewide and associate, NCSC and RTFC. We offer both long-term and line of credit loans to our borrowers. Under our long-term loan facilities, a borrower may select a fixed interest rate or a variable interest rate at the time of each loan advance. Line of credit loans are revolving loan facilities and generally have a variable interest rate. Loans to Members Loans to members consist of total loans outstanding, which reflects the unpaid principal balance, net of charge-offs and recoveries, of loans and deferred loan origination costs. The following table presents loans to members, by member class and by loan type, as of February 28, 2022 and May 31, 2021. Table 4.1: Loans to Members by Member Class and Loan Type February 28, 2022 May 31, 2021 (Dollars in thousands) Amount % of Total Amount % of Total Member class: CFC: Distribution $ 23,225,751 79% $ 22,027,423 78% Power supply 4,992,073 17 5,154,312 18 Statewide and associate 102,652 — 106,121 — Total CFC 28,320,476 96 27,287,856 96 NCSC 730,147 2 706,868 3 RTFC 457,740 2 420,383 1 Total loans outstanding (1) 29,508,363 100 28,415,107 100 Deferred loan origination costs—CFC (2) 12,018 — 11,854 — Loans to members $ 29,520,381 100% $ 28,426,961 100% Loan type: Long-term loans: Fixed rate $ 26,452,342 90% $ 25,514,766 90% Variable rate 720,027 2 658,579 2 Total long-term loans 27,172,369 92 26,173,345 92 Lines of credit 2,335,994 8 2,241,762 8 Total loans outstanding (1) 29,508,363 100 28,415,107 100 Deferred loan origination costs—CFC (2) 12,018 — 11,854 — Loans to members $ 29,520,381 100% $ 28,426,961 100% ____________________________ (1) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. (2) Deferred loan origination costs are recorded on the books of CFC. Loan Sales We may transfer whole loans and participating interests to third partie s. These transfers are typically made concurrently with the closing of the loan or participation agreement at par value and meet the accounting criteria required for sale accounting. We sold CFC loans, at par for cash, totaling $64 million and $126 million during the nine months ended February 28, 2022 and 2021, respectively. We recorded immaterial losses on the sale of these loa ns. Accrued Interest Receivable We report accrued interest on loans separately on our consolidated balance sheets as a component of the line item accrued interest receivable rather than as a component of loans to members. Accrued interest receivable amounts generally represent three months or less of accrued interest on loans outstanding. Because our policy is to write off past-due accrued interest receivable in a timely manner, we elected not to measure an allowance for credit losses for accrued interest receivable on loans outstanding, which totaled $96 million and $93 million as of February 28, 2022 and May 31, 2021, respectively. We also elected to exclude accrued interest receivable from the credit quality disclosures required under CECL. Credit Concentration Concentrations of credit may exist when a lender has large credit exposures to single borrowers, large credit exposures to borrowers in the same industry sector or engaged in similar activities or large credit exposures to borrowers in a geographic region that would cause the borrowers to be similarly impacted by economic or other conditions in the region. As a tax-exempt, member-owned finance cooperative, CFC’s principal focus is to provide funding to its rural electric utility cooperative members to assist them in acquiring, constructing and operating electric distribution systems, power supply systems and related facilities. Because we lend primarily to our rural electric utility cooperative members, we have had a loan portfolio subject to single-industry and single-obligor concentration risks since our inception in 1969. Loans outstanding to electric utility organizations of $29,051 million and $27,995 million as of February 28, 2022 and May 31, 2021, respectively, accounted for 98% and 99% of total loans outstanding as of each respective date. The remaining loans outstanding in our portfolio were to RTFC members, affiliates and associates in the telecommunications industry. Single-Obligor Concentration The outstanding loan exposure for o ur 20 largest borrowers totaled $6,213 million and $6,182 million as of February 28, 2022 and May 31, 2021, respectively, representing 21% and 22% of total loans outstanding as of each respective date. The 20 largest borrowers consisted of 12 distribution systems and eight power supp ly systems as of February 28, 2022. The 20 largest borrowers consisted of 10 distribution systems and 10 power supp ly systems as of May 31, 2021. The largest total outstanding exposure to a single borrower or controlled group represented less tha n 2% of total loans outstanding as of both February 28, 2022 and May 31, 2021. As part of our strategy in managing credit exposure to large borrowers, we entered into a long-term standby purchase commitment agreement with Farmer Mac during fiscal year 2016. Under this agreement, we may designate certain long-term loans to be covered under the commitment, subject to approval by Farmer Mac, and in the event any such loan later goes into payment default for at least 90 days, upon request by us, Farmer Mac must purchase such loan at par value. We are required to pay Farmer Mac a monthly fee based on the unpaid principal balance of loans covered under the purchase commitment. The aggregate unpaid principal balance of designated and Farmer Mac approved loans was $471 million and $512 million as of February 28, 2022 and May 31, 2021, respectively. Loan exposure to our 20 largest borrowers covered under the Fa rmer Mac agreement totaled $290 million and $309 million as of February 28, 2022 and May 31, 2021, respectively, which reduced our exposure to the 20 largest borrowers to 20% and 21% as of each respective date. We have had no loan defaults for loans covered under this agreement; therefore, no loa ns had been put to Farmer Mac for purchase pursuant to the standby purchase agreement as of February 28, 2022. Our credit exposure is also mitigated by long-term loans guaranteed by RUS. Guaranteed RUS loans totaled $133 million and $139 million as of February 28, 2022 and May 31, 2021, respectively. Geographic Concentration Although our organizational structure and mission results in single-industry concentration, we serve a geographically diverse group of electric and telecommunications borrowers throughout the U.S. The consolidated number of borrowers with loans outstanding totaled 885 and 892 a s of February 28, 2022 and May 31, 2021 located in 49 states. Texas, which had 67 borrowers with loans outstanding as of both February 28, 2022 and May 31, 2021, respectively, accounted for the largest number of borrowers with loans outstanding in any one state as of each respective date. Texas also accounted for the largest concentration of loan exposure in any one state as of each respective date. Loans outstanding to Texas-based electric utility organizations totaled $4,955 million and $4,878 million as of February 28, 2022 and May 31, 2021, respectively and accounted for approximately 17% of total loans outstanding as of each respective date. Of the loans outstanding to Texas-based electric utility organizations, $165 million and $172 million as of February 28, 2022 and May 31, 2021, respectively, were covered by the Farmer Mac standby repurchase agreement, respectively, which reduced our credit risk exposure to Texas-based borrowers to 16% of total loans outstanding as of each respective date. Credit Quality Indicators Assessing the overall credit quality of our loan portfolio and measuring our credit risk is an ongoing process that involves tracking payment status, troubled debt restructurings, nonperforming loans, charge-offs, the internal risk ratings of our borrowers and other indicators of credit risk. We monitor and subject each borrower and loan facility in our loan portfolio to an individual risk assessment based on quantitative and qualitative factors. Payment status trends and internal risk ratings are indicators, among others, of the probability of borrower default and overall credit quality of our loan portfolio. Payment Status of Loans Loans are considered delinquent when contractual principal or interest amounts become past due 30 days or more following the scheduled payment due date. Loans are placed on nonaccrual status when payment of principal or interest is 90 days or more past due or management determines that the full collection of principal and interest is doubtful. The following table presents the payment status, by legal entity and member class, of loans outstanding as of February 28, 2022 and May 31, 2021. Table 4.2: Payment Status of Loans Outstanding February 28, 2022 (Dollars in thousands) Current 30-89 Days Past Due > 90 Days Total Total Loans Outstanding Nonaccrual Loans Member class: CFC: Distribution $ 23,225,751 $ — $ — $ — $ 23,225,751 $ — Power supply 4,906,524 — 85,549 85,549 4,992,073 207,254 Statewide and associate 102,652 — — — 102,652 — CFC total 28,234,927 — 85,549 85,549 28,320,476 207,254 NCSC 730,147 — — — 730,147 — RTFC 457,740 — — — 457,740 — Total loans outstanding $ 29,422,814 $ — $ 85,549 $ 85,549 $ 29,508,363 $ 207,254 Percentage of total loans 99.71% — % 0.29% 0.29% 100.00% 0.70% May 31, 2021 (Dollars in thousands) Current 30-89 Days Past Due > 90 Days Total Total Loans Outstanding Nonaccrual Loans Member class: CFC: Distribution $ 22,027,423 $ — $ — $ — $ 22,027,423 $ — Power supply 5,069,316 3,400 81,596 84,996 5,154,312 228,312 Statewide and associate 106,121 — — — 106,121 — CFC total 27,202,860 3,400 81,596 84,996 27,287,856 228,312 NCSC 706,868 — — — 706,868 — RTFC 420,383 — — — 420,383 9,185 Total loans outstanding $ 28,330,111 $ 3,400 $ 81,596 $ 84,996 $ 28,415,107 $ 237,497 Percentage of total loans 99.70% 0.01 % 0.29% 0.30% 100.00% 0.84% We had one borrower, Brazos Electric Power Cooperative, Inc. (“Brazos”), with delinquent loans totaling $86 million and $85 million as of February 28, 2022 and May 31, 2021, respectively. Brazos, a CFC Texas-based power supply borrower, filed for bankruptcy in March 2021 due to its exposure to elevated wholesale electric power costs during the February 2021 polar vortex. Brazos is not permitted to make scheduled loan payments without approval of the bankruptcy court. As a result, we have not received payments from Brazos since March 2021, and its loans outstanding to us were on nonaccrual status as of each respective date. The decrease in loans on nonaccrual status of $30 million to $207 million as of February 28, 2022, from $237 million was due to the receipt of loan principal payments. See “Nonperforming Loans” below for additional information. TDRs We have not had any loan modifications that were required to be accounted for as a TDR since fiscal year 2016. The following table presents the outstanding balance of modified loans accounted for as TDRs in prior periods and the performance status, by legal entity and member class, of these loans as of February 28, 2022 and May 31, 2021. Table 4.3: Trouble Debt Restructurings February 28, 2022 May 31, 2021 (Dollars in thousands) Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding TDR loans: Member class: CFC—Distribution 1 $ 5,092 0.02% 1 $ 5,379 0.02% RTFC 1 4,217 0.01 1 4,592 0.02 Total TDR loans 2 $ 9,309 0.03% 2 $ 9,971 0.04% Performance status of TDR loans: Performing TDR loans 2 $ 9,309 0.03% 2 $ 9,971 0.04% Total TDR loans 2 $ 9,309 0.03% 2 $ 9,971 0.04% ____________________________ (1) Represents the unpaid principal balance net of charge-offs and recoveries as of the end of each period. There were no unadvanced commitments related to these loans as of February 28, 2022 and May 31, 2021. These loans, which have been performing in accordance with the terms of their respective restructured loan agreement for an extended period of time, were classified as performing and on accrual status as of February 28, 2022 or May 31, 2021. We did not have any TDR loans classified as nonperforming as of February 28, 2022 or May 31, 2021. Nonperforming Loans In addition to TDR loans that may be classified as nonperforming, we also may have nonperforming loans that have not been modified as a TDR. The following table presents the outstanding balance of nonperforming loans, by legal entity and member class, as of February 28, 2022 and May 31, 2021. Loans classified as nonperforming are placed on nonaccrual status. Table 4.4: Nonperforming Loans February 28, 2022 May 31, 2021 (Dollars in thousands) Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Nonperforming loans: Member class: CFC—Power supply (2) 2 $ 207,254 0.70% 2 $ 228,312 0.81% RTFC — — — 2 9,185 0.03 Total nonperforming loans 2 $ 207,254 0.70% 4 $ 237,497 0.84% ____________________________ (1) Represents the unpaid principal balance net of charge-offs and recoveries as of the end of each period. (2) In addition, we had less than $1 million letters of credit outstanding to Brazos as of May 31, 2021. We had loans to two borrowers totaling $207 million classified as nonperforming as of February 28, 2022. In comparison we had loans to four borrowers totaling $237 million classified as nonperforming as of May 31, 2021. Nonperforming loans represented 0.70% and 0.84% of total loans outstanding as of February 28, 2022 and May 31, 2021, respectively. The reduction in nonperforming loans of $30 million during the nine months ended February 28, 2022 was due in part to our receipt during the fiscal quarter ended November 30, 2021 (the “second quarter of fiscal year 2022”) of full payment of all amounts due on nonperforming loans to two RTFC borrowers totaling $9 million. In addition, we have continued to receive payments on the remaining outstanding nonperforming loan to a CFC electric power supply borrower, including payments totaling $22 million during the nine months ended February 28, 2022, which reduced the balance of this loan to $121 million as of February 28, 2022, from $143 million as of May 31, 2021. Loans outstanding to Brazos classified as nonperforming totaled $86 million and $85 million as of February 28, 2022 and May 31, 2021, respectively. As discussed above, Brazos, which filed for bankruptcy in March 2021, is not permitted to make scheduled loan payments without approval of the bankruptcy court. See “Note 15—Subsequent Events” for developments in March 2022 related to Brazos Sandy Creek Electric Cooperative Inc. (“Brazos Sandy Creek”), a wholly-owned subsidiary of Brazos and a CFC Texas-based electric power supply borrower. Net Charge-Of fs We had no loan charge-offs during the nine months ended February 28, 2022, nor during the same prior-year period. Prior to Brazos’ bankruptcy filing, we had not experienced any defaults or charge-offs in our electric utility and telecommunications loan portfolios since fiscal year 2013 and 2017, respectively. Borrower Risk Ratings As part of our management of credit risk, we maintain a credit risk rating framework under which we employ a consistent process for assessing the credit quality of our loan portfolio. We evaluate each borrower and loan facility in our loan portfolio and assign internal borrower and loan facility risk ratings based on consideration of a number of quantitative and qualitative factors. We categorize loans in our portfolio based on our internally assigned borrower risk ratings, which are intended to assess the general creditworthiness of the borrower and probability of default. Our borrower risk ratings align with the U.S. federal banking regulatory agencies credit risk definitions of pass and criticized categories, with the criticized category further segmented among special mention, substandard and doubtful. Pass ratings reflect relatively low probability of default, while criticized ratings have a higher probability of default. The following is a description of the borrower risk rating categories. • Pass : Borrowers that are not experiencing difficulty and/or not showing a potential or well-defined credit weakness. • Special Mention : Borrowers that may be characterized by a potential credit weakness or deteriorating financial condition that is not sufficiently serious to warrant a classification of substandard or doubtful. • Substandard : Borrowers that display a well-defined credit weakness that may jeopardize the full collection of principal and interest. • Doubtful : Borrowers that have a well-defined credit weakness or weaknesses that make full collection of principal and interest, on the basis of currently known facts, conditions and collateral values, highly questionable and improbable. Our internally assigned borrower risk ratings serve as the primary credit quality indicator for our loan portfolio. Because our internal borrower risk ratings provide important information on the probability of default, they are a key input in determining our allowance for credit losses. Table 4.5 displays total loans outstanding, by borrower risk rating category and by legal entity and member class, as of February 28, 2022 and May 31, 2021. The borrower risk rating categories presented below correspond to the borrower risk rating categories used in calculating our collective allowance for credit losses. If a parent company provides a guarantee of full repayment of loans of a subsidiary borrower, we include the loans outstanding in the borrower risk-rating category of the guarantor parent company rather than the risk rating category of the subsidiary borrower for purposes of calculating the collective allowance. We present term loans outstanding as of February 28, 2022, by fiscal year of origination for each year during the five-year annual reporting period beginning in fiscal year 2018, and in the aggregate for periods prior to fiscal year 2018. The origination period represents the date CFC advances funds to a borrower, rather than the execution date of a loan facility for a borrower. Revolving loans are presented separately due to the nature of revolving loans. The substantial majority of loans in our portfolio represent fixed-rate advances under secured long-term facilities with terms up to 35 years, and as indicate d in Table 4.5 below, term loan advances made to borrowers prior to fiscal year 2018 totaled $16,825 million, representing 57% of our total loans outstanding of $29,508 million as of February 28, 2022. The average remaining maturity of our long-term loans, which accounted for 92% of total loans outstanding as of February 28, 2022, wa s 18 years. As discussed above, as a member-owned finance cooperative, CFC’s principal focus is to provide funding to its rural electric utility cooperative members to assist them in acquiring, constructing and operating electric distribution systems, power supply systems and related facilities. As such, since our inception in 1969 we have had an extended repeat lending and repayment history with substantially all of member borrowers through our various loan programs. Our secured long-term loan commitment facilities typically provide a five-year draw period under which a borrower may draw funds prior to the expiration of the commitment. Because our electric utility cooperative borrowers must make substantial annual capital investments to maintain operations and ensure delivery of the essential service provided by electric utilities, they require a continuous inflow of funds to finance infrastructure upgrades and new asset purchases. Due to the funding needs of electric utility cooperatives, a CFC borrower generally has multiple loans outstanding under advances drawn in different years. While the number of borrowers with loans outstanding was 885 borrowers as of February 28, 2022, the number of loans outstanding was 16,572 as of February 28, 2022, resulting in an average of 19 loan s outstanding per borrower. Our borrowers, however, are subject to cross-default under the terms of our loan agreements. Therefore, if a borrower defaults on one loan, the borrower is considered in default on all outstanding loans. Due to these factors, we historically have not observed a correlation between the year of origination of our loans and default risk. Instead, default risk on our loans has typically been more closely correlated to the risk rating of our borrowers. Table 4.5: Loans Outstanding by Borrower Risk Ratings and Origination Year February 28, 2022 Term Loans by Fiscal Year of Origination (Dollars in thousands) YTD Q3 2022 2021 2020 2019 2018 Prior Revolving Loans Total May 31, 2021 Pass CFC: Distribution $ 1,714,893 $ 1,715,341 $ 1,895,645 $ 1,201,281 $ 1,462,991 $ 13,521,337 $ 1,464,191 $ 22,975,679 $ 21,808,099 Power supply 329,172 562,604 191,205 416,879 246,684 2,680,286 329,600 4,756,430 4,517,408 Statewide and associate 3,431 2,311 19,467 3,385 — 21,023 38,594 88,211 90,261 CFC total 2,047,496 2,280,256 2,106,317 1,621,545 1,709,675 16,222,646 1,832,385 27,820,320 26,415,768 NCSC 14,251 40,152 234,522 4,147 43,140 243,347 150,588 730,147 706,868 RTFC 54,051 91,294 46,323 10,567 23,504 186,958 40,826 453,523 406,606 Total pass $ 2,115,798 $ 2,411,702 $ 2,387,162 $ 1,636,259 $ 1,776,319 $ 16,652,951 $ 2,023,799 $ 29,003,990 $ 27,529,242 Special mention CFC: Distribution $ — $ 4,917 $ — $ 5,126 $ 937 $ 12,446 $ 226,646 $ 250,072 $ 219,324 Power supply — — — — — 28,389 — 28,389 29,611 Statewide and associate — — — 5,000 3,892 5,549 — 14,441 15,860 CFC total — 4,917 — 10,126 4,829 46,384 226,646 292,902 264,795 RTFC — — — — — 4,217 — 4,217 4,592 Total special mention $ — $ 4,917 $ — $ 10,126 $ 4,829 $ 50,601 $ 226,646 $ 297,119 $ 269,387 Substandard CFC: Power supply $ — $ — $ — $ — $ — $ — $ — $ — $ 378,981 Total substandard $ — $ — $ — $ — $ — $ — $ — $ — $ 378,981 Doubtful CFC: Power supply $ — $ — $ — $ — $ — $ 121,705 $ 85,549 $ 207,254 $ 228,312 CFC total — — — — — 121,705 85,549 207,254 228,312 RTFC — — — — — — — — 9,185 Total doubtful $ — $ — $ — $ — $ — $ 121,705 $ 85,549 $ 207,254 $ 237,497 Total criticized loans $ — $ 4,917 $ — $ 10,126 $ 4,829 $ 172,306 $ 312,195 $ 504,373 $ 885,865 Total loans outstanding $ 2,115,798 $ 2,416,619 $ 2,387,162 $ 1,646,385 $ 1,781,148 $ 16,825,257 $ 2,335,994 $ 29,508,363 $ 28,415,107 Criticized loans totaled $504 million and $886 million as of February 28, 2022 and May 31, 2021, respectively, and represented approximately 2% and 3% of total loans outstanding as of each respective date. Criticized loans include loans outstanding to Brazos of $86 million and $85 million as of February 28, 2022 and May 31, 2021, respectively, which were classified as doubtful as of each respective date. Each of the borrowers with loans outstanding in the criticized category, with the exception of Brazos, was current with regard to all principal and interest amounts due as of February 28, 2022 and May 31, 2021. Brazos is not permitted to make scheduled loan payments without approval of the bankruptcy court. Special Mention One CFC electric distribution borrower with loans outstanding of $250 million and $219 million as of February 28, 2022 and May 31, 2021, respectively, accounted for the substantial majority of loans in the special mention loan category amount of $297 million and $269 million as of each respective date. This borrower experienced an adverse financial impact from restoration costs incurred to repair damage caused by two successive hurricanes. We expect that the borrower will receive grant funds from the Federal Emergency Management Agency and the state where it is located for the full reimbursement of the hurricane damage-related restoration costs. Substandard We did not have any loans classified as substandard as of February 28, 2022. We had loans outstanding to Rayburn Country Electric Cooperative, Inc. (“Rayburn”) totaling $379 million that were classified as substandard as of May 31, 2021. In February 2022, Rayburn successfully completed a securitization transaction to cover extraordinary costs and expenses incurred during the February 2021 polar vortex pursuant to a financing program enacted into law by Texas in June 2021 for qualifying electric cooperatives exposed to elevated power costs during the February 2021 polar vortex. Subsequent to the completion of the securitization transaction, Rayburn fully paid its outstanding obligations to the Electric Reliability Council of Texas. As a result, we revised our borrower risk rating for Rayburn to a rating in the pass category from a previous rating in the substandard category. In addition, we received loan payments from Rayburn during the three months ended February 28, 2022 that reduced our loans outstanding to Rayburn to $207 million as of February 28, 2022 from $379 million as of May 31, 2021. Doubtful Loans outstanding classified as doubtful totaled $207 million and $237 million as of February 28, 2022 and May 31, 2021, respectively, consisting of loans outstanding to Brazos of $86 million and $85 million as of each respective date and loans outstanding to a CFC electric power supply borrower of $121 million and $143 million as of each respective date. These loans were also classified as nonperforming, as discussed above under “Nonperforming Loans.” As discussed above, in June 2021, Texas enacted securitization legislation that offers a financing program for qualifying electric cooperatives exposed to elevated power costs during the February 2021 polar vortex. Brazos qualifies for the Texas-enacted financing program. Unadvanced Loan Commitments Unadvanced loan commitments represent approved and executed loan contracts for which funds have not been advanced to borrowers. The following table presents unadvanced loan commitments, by member class and by loan type, as of February 28, 2022 and May 31, 2021. Table 4.6: Unadvanced Commitments by Member Class and Loan Type (Dollars in thousands) February 28, 2022 May 31, 2021 Member class: CFC: Distribution $ 9,235,009 $ 9,387,070 Power supply 3,877,775 3,970,698 Statewide and associate 178,334 161,340 Total CFC 13,291,118 13,519,108 NCSC 547,100 551,125 RTFC 323,008 286,806 Total unadvanced commitments $ 14,161,226 $ 14,357,039 Loan type: (1) Long-term loans: Fixed rate $ — $ — Variable rate 5,230,253 5,771,813 Total long-term loans 5,230,253 5,771,813 Lines of credit 8,930,973 8,585,226 Total unadvanced commitments $ 14,161,226 $ 14,357,039 ____________________________ (1) The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. The following table displays, by loan type, the available balance under unadvanced loan commitments as of February 28, 2022, and the related maturities in each fiscal year during the five-year period ended May 31, 2026, and thereafter. Table 4.7: Unadvanced Loan Commitments Available Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter Line of credit loans $ 8,930,973 $ 347,506 $ 4,295,443 $ 1,166,547 $ 1,517,248 $ 413,289 $ 1,190,940 Long-term loans 5,230,253 40,921 693,487 1,477,311 802,059 1,059,431 1,157,044 Total $ 14,161,226 $ 388,427 $ 4,988,930 $ 2,643,858 $ 2,319,307 $ 1,472,720 $ 2,347,984 Unadvanced line of credit commitments accounted for 63% of total unadvanced loan commitments as of February 28, 2022, while unadvanced long-term loan commitments accounted for 37% 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 draw funds prior to the expiration of the commitment. We expect that the majority of the long-term unadvanced loan commitments of $5,230 million will be advanced prior to the expiration of the commitment. Because we historically have experienced a very low utilization rate on line of credit loan facilities, which account for the majority of our total unadvanced loan commitments, we believe the unadvanced loan commitment total of $14,161 million as of February 28, 2022 is not necessarily representative of our future funding requirements. Unadvanced Loan Commitments—Conditional The substantial majority of our line of credit commitments and all of our unadvanced long-term loan commitments include material adverse change clauses. Unadvanced loan commitments subject to material adverse change clauses totaled $10,969 million and $11,312 million as of February 28, 2022 and May 31, 2021, respectively. Prior to making an advance on these facilities, we confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with loan terms and conditions. In some cases, the borrower’s access to the full amount of the facility is further constrained by the designated purpose, imposition of borrower-specific restrictions or by additional conditions that must be met prior to advancing funds. Unadvanced Loan Commitments—Unconditional Unadvanced loan commitments not subject to material adverse change clauses at the time of each advance consisted of unadvanced committed lines of credit t otaling $3,192 million and $3,045 million as of February 28, 2022 and May 31, 2021, respectively. As such, we are required to advance amounts on these committed facilities as long as the borrower is in compliance with the terms and conditions of the facility. The following table summarizes the available balance under unconditional committed lines of credit as of February 28, 2022, and the related maturity amounts in each fiscal year during the five-year period ending May 31, 2026, and thereafter. Table 4.8: Unconditional Committed Lines of Credit—Available Balance Available Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter Committed lines of credit $ 3,192,262 $ — $ 400,287 $ 510,982 $ 1,152,337 $ 246,949 $ 881,707 Pledged Collateral—Loans We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. Table 4.9 displays the borrowing amount under each of our secured borrowing agreements and the corresponding loans outstanding pledged as collateral as of February 28, 2022 and May 31, 2021. See “Note 6—Short-Term Borrowings” and “Note 7—Long-Term Debt” for information on our secured borrowings and other borrowings. Table 4.9: Pledged Loans (Dollars in thousands) February 28, 2022 May 31, 2021 Collateral trust bonds: 2007 indenture: Collateral trust bonds outstanding $ 7,522,711 $ 7,422,711 Pledged collateral: Distribution system mortgage notes pledged 8,673,974 8,400,293 RUS-guaranteed loans qualifying as permitted investments pledged 116,444 121,679 Total pledged collateral 8,790,418 8,521,972 1994 indenture: Collateral trust bonds outstanding $ 25,000 $ 30,000 Pledged collateral: Distribution system mortgage notes pledged 31,477 34,924 Guaranteed Underwriter Program: Notes payable outstanding $ 6,149,203 $ 6,269,303 Pledged collateral: Distribution and power supply system mortgage notes pledged 6,982,334 7,150,240 Farmer Mac: Notes payable outstanding $ 3,018,130 $ 2,977,909 Pledged collateral: Distribution and power supply system mortgage notes pledged 3,486,457 3,440,307 Clean Renewable Energy Bonds Series 2009A: Notes payable outstanding $ 2,755 $ 4,412 Pledged collateral: Distribution and power supply system mortgage notes pledged 3,612 5,316 Cash 2 394 Total pledged collateral 3,614 5,710 |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Feb. 28, 2022 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | NOTE 5—ALLOWANCE FOR CREDIT LOSSES We are required to maintain an allowance based on a current estimate of credit losses that are expected to occur over the remaining contractual term of the loans in our portfolio. Our allowance for credit losses consists of a collective allowance and an asset-specific allowance. The collective allowance is established for loans in our portfolio that share similar risk characteristics and are therefore evaluated on a collective, or pool, basis in measuring expected credit losses. The asset-specific allowance is established for loans in our portfolio that do not share similar risk characteristics with other loans in our portfolio and are therefore evaluated on an individual basis in measuring expected credit losses. Allowance for Credit Losses—Loan Portfolio The following tables summarize, by legal entity and member class, changes in the allowance for credit losses for our loan portfolio for the three and nine months ended February 28, 2022 and 2021. Table 5.1: Changes in Allowance for Credit Losses Three Months Ended February 28, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of November 30, 2021 $ 16,032 $ 65,467 $ 1,424 $ 82,923 $ 1,594 $ 1,618 $ 86,135 Provision (benefit) for credit losses 353 (12,989) (111) (12,747) 135 (137) (12,749) Balance as of February 28, 2022 $ 16,385 $ 52,478 $ 1,313 $ 70,176 $ 1,729 $ 1,481 $ 73,386 Three Months Ended February 28, 2021 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of November 30, 2020 $ 13,215 $ 39,781 $ 1,413 $ 54,409 $ 1,341 $ 3,239 $ 58,989 Provision for credit losses 2,022 27,381 32 29,435 316 3,272 33,023 Balance as of February 28, 2021 $ 15,237 $ 67,162 $ 1,445 $ 83,844 $ 1,657 $ 6,511 $ 92,012 Nine Months Ended February 28, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of May 31, 2021 $ 13,426 $ 64,646 $ 1,391 $ 79,463 $ 1,374 $ 4,695 $ 85,532 Provision (benefit) for credit losses 2,959 (12,168) (78) (9,287) 355 (3,214) (12,146) Balance as of February 28, 2022 $ 16,385 $ 52,478 $ 1,313 $ 70,176 $ 1,729 $ 1,481 $ 73,386 Nine Months Ended February 28, 2021 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of May 31, 2020 $ 8,002 $ 38,027 $ 1,409 $ 47,438 $ 806 $ 4,881 $ 53,125 Cumulative-effect adjustment from adoption of CECL accounting standard 3,586 2,034 25 5,645 (15) (1,730) 3,900 Balance as of June 1, 2020 11,588 40,061 1,434 53,083 791 3,151 57,025 Provision for credit losses 3,649 27,101 11 30,761 866 3,360 34,987 Balance as of February 28, 2021 $ 15,237 $ 67,162 $ 1,445 $ 83,844 $ 1,657 $ 6,511 $ 92,012 The following tables present, by legal entity and member class, the components of our allowance for credit losses as of February 28, 2022 and May 31, 2021. Table 5.2: Allowance for Credit Losses Components February 28, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 16,385 $ 12,219 $ 1,313 $ 29,917 $ 1,729 $ 1,226 $ 32,872 Asset-specific allowance — 40,259 — 40,259 — 255 40,514 Total allowance for credit losses $ 16,385 $ 52,478 $ 1,313 $ 70,176 $ 1,729 $ 1,481 $ 73,386 Loans outstanding: (1) Collectively evaluated loans $ 23,220,659 $ 4,784,819 $ 102,652 $ 28,108,130 $ 730,147 $ 453,523 $ 29,291,800 Individually evaluated loans 5,092 207,254 — 212,346 — 4,217 216,563 Total loans outstanding $ 23,225,751 $ 4,992,073 $ 102,652 $ 28,320,476 $ 730,147 $ 457,740 $ 29,508,363 Allowance ratios: Collective allowance coverage ratio (2) 0.07% 0.26% 1.28% 0.11% 0.24% 0.27% 0.11% Asset-specific allowance coverage ratio (3) — 19.42 — 18.96 — 6.05 18.71 Total allowance coverage ratio (4) 0.07 1.05 1.28 0.25 0.24 0.32 0.25 May 31, 2021 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 13,426 $ 25,104 $ 1,391 $ 39,921 $ 1,374 $ 1,147 $ 42,442 Asset-specific allowance (5) — 39,542 — 39,542 — 3,548 43,090 Total allowance for credit losses $ 13,426 $ 64,646 $ 1,391 $ 79,463 $ 1,374 $ 4,695 $ 85,532 Loans outstanding: (1) Collectively evaluated loans $ 22,022,044 $ 4,926,000 $ 106,121 $ 27,054,165 $ 706,868 $ 406,606 $ 28,167,639 Individually evaluated loans 5,379 228,312 — 233,691 — 13,777 247,468 Total loans outstanding $ 22,027,423 $ 5,154,312 $ 106,121 $ 27,287,856 $ 706,868 $ 420,383 $ 28,415,107 Allowance ratios: Collective allowance coverage ratio (2) 0.06% 0.51% 1.31% 0.15% 0.19% 0.28% 0.15% Asset-specific allowance coverage ratio (3) — 17.32 — 16.92 — 25.75 17.41 Total allowance coverage ratio (4) 0.06 1.25 1.31 0.29 0.19 1.12 0.30 ____________________________ (1) Represents the unpaid principal amount of loans as of the end of each period. Excludes unamortized deferred loan origination costs of $12 million as of both February 28, 2022 and May 31, 2021. (2) Calculated based on the collective allowance component at period end divided by collectively evaluated loans outstanding at period end. (3) Calculated based on the asset-specific allowance component at period end divided by individually evaluated loans outstanding at period end. (4) Calculated based on the total allowance for credit losses at period end divided by total loans outstanding at period end. Our allowance for credit losses and allowance coverage ratio decreased to $74 million and 0.25%, respectively, as of February 28, 2022, from $86 million and 0.30%, respectively, as of May 31, 2021. The $12 million decrease in the allowance for credit losses reflected a decrease in the collective and the asset-specific allowance of $9 million and $3 million, respectively. The collective allowance decrease of $9 million was attributable to an improvement in Rayburn’s credit risk profile following the successful completion by Rayburn of a securitization transaction in February 2022 to cover extraordinary costs and expenses incurred during the February 2021 polar vortex and a significant reduction in loans outstanding to Rayburn due to payments received from Rayburn during the three months ended February 28, 2022. The asset-specific allowance decrease of $3 million stemmed from the elimination of an asset-specific allowance attributable to nonperforming loans totaling $9 million that were paid in full during the second quarter of fiscal year 2022. Reserve for Credit Losses—Unadvanced Loan Commitments In addition to the allowance for credit losses for our loan portfolio, we maintain an allowance for credit losses for unadvanced loan commitments, which we refer to as our reserve for credit losses because this amount is reported as a component of other liabilities on our consolidated balance sheets. Upon adoption of CECL on June 1, 2020, we began measuring the reserve for credit losses for unadvanced loan commitments based on expected credit losses over the contractual period of our exposure to credit risk arising from our obligation to extend credit, unless that obligation is unconditionally cancellable by us. The reserve for credit losses related to our off-balance sheet exposure for unadvanced loan commitments was less than $1 million as of both February 28, 2022 and May 31, 2021. |
Short-Term Borrowings
Short-Term Borrowings | 9 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | NOTE 6—SHORT-TERM BORROWINGS Short-term borrowings consist of borrowings with an original contractual maturity of one year or less and do not include the current portion of long-term debt. Our short-term borrowings totaled $4,428 million and accounted for 16% of total debt outstanding as of February 28, 2022, compared with $4,582 million and 17% of total debt outstanding as of May 31, 2021. The following table provides comparative information on our short-term borrowings as of February 28, 2022 and May 31, 2021. Table 6.1: Short-Term Borrowings Sources February 28, 2022 May 31, 2021 (Dollars in thousands) Amount % of Total Debt Outstanding Amount % of Total Debt Outstanding Short-term borrowings: Commercial paper: Commercial paper dealers, net of discounts $ 1,105,200 4% $ 894,977 3% Commercial paper members, at par 1,154,393 4 1,124,607 4 Total commercial paper 2,259,593 8 2,019,584 7 Select notes to members 1,402,238 5 1,539,150 6 Daily liquidity fund notes to members 350,402 1 460,556 2 Medium-term notes to members 415,824 2 362,691 1 Securities sold under repurchase agreements — — 200,115 1 Total short-term borrowings $ 4,428,057 16% $ 4,582,096 17% We have master repurchase agreements with counterparties whereby we may sell investment-grade corporate debt securities from our investment portfolio subject to an obligation to repurchase the same or similar securities at an agreed-upon price and date. Transactions under these repurchase agreements are accounted for as collateralized financing agreements and not as a sale. The obligation to repurchase the securities is reported as securities sold under repurchase agreements, which we include as a component of short-term borrowings on our consolidated balance sheets. We disclose the fair value of the debt securities underlying repurchase transactions; however, the pledged debt securities remain in the investment debt securities portfolio amount reported on our consolidated balan ce sheets. We had no borrowings under repurchase agreements outstanding as of February 28, 2022. We had borrowings under repurchase agreements of $200 million as of May 31, 2021 and we had pledged debt securities underlying these repurchase transactions with a fair value of $211 million as of May 31, 2021. Committed Bank Revolving Line of Credit Agreements The following table presents the amount available for access under our bank revolving line of credit agreements as of February 28, 2022. Table 6.2: Committed Bank Revolving Line of Credit Agreements Available Amounts February 28, 2022 (Dollars in millions) Total Commitment Letters of Credit Outstanding Available Amount Maturity Annual Facility Fee (1) Bank revolving agreements: 3-year agreement $ 1,245 $ — $ 1,245 November 28, 2024 7.5 bps 5-year agreement 1,355 3 1,352 November 28, 2025 10 bps Total $ 2,600 $ 3 $ 2,597 ____________________________ (1) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. On June 7, 2021, we amended the three five three five three five We did not have any outstanding borrowings under our committed bank revolving line of credit agreements as of February 28, 2022; however, we had letters of credit outstanding of $3 million under the five |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Feb. 28, 2022 | |
Debt Instruments [Abstract] | |
Long-Term Debt | NOTE 7—LONG-TERM DEBT The following table displays, by debt product type, long-term debt outstanding as of February 28, 2022 and May 31, 2021. Long-term debt outstanding totaled $21,522 million and accounted for 76% of total debt outstanding as of February 28, 2022, compared with $20,603 million and 75% of total debt outstanding as of May 31, 2021. Table 7.1: Long-Term Debt by Debt Product Type (Dollars in thousands) February 28, 2022 May 31, 2021 Secured long-term debt: Collateral trust bonds $ 7,547,711 $ 7,452,711 Unamortized discount (219,775) (227,046) Debt issuance costs (33,787) (33,721) Total collateral trust bonds 7,294,149 7,191,944 Guaranteed Underwriter Program notes payable 6,149,203 6,269,303 Farmer Mac notes payable 3,018,130 2,977,909 Other secured notes payable 2,755 4,412 Debt issuance costs (11) (22) Total other secured notes payable 2,744 4,390 Total secured notes payable 9,170,077 9,251,602 Total secured long-term debt 16,464,226 16,443,546 Unsecured long-term debt: Medium-term notes sold through dealers 4,891,283 3,943,728 Medium-term notes sold to members 186,104 232,346 Medium term notes sold through dealers and to members 5,077,387 4,176,074 Unamortized discount (2,155) (2,307) Debt issuance costs (19,687) (18,036) Total unsecured medium-term notes 5,055,545 4,155,731 Unsecured notes payable 1,979 3,886 Unamortized discount (14) (35) Debt issuance costs (2) (5) Total unsecured notes payable 1,963 3,846 Total unsecured long-term debt 5,057,508 4,159,577 Total long-term debt $ 21,521,734 $ 20,603,123 Secured Debt Long-term secured debt of $16,464 million and $16,444 million as of February 28, 2022 and May 31, 2021, respectively, represented 77% and 80% of total long-term debt outstanding as of each respective date. The slig ht increase in long-term secured debt of $20 million during the nine months ended February 28, 2022 was primarily attrib utable to the $500 million collateral trust bonds issuance, as described below, borrowings under the Farmer Mac revolving note purchase agreement and the Guaranteed Underwriter Program, partially offset by the early redemption of $400 million of collateral trust bonds, as described below, and the Farmer Mac and Guaranteed Underwriter Program notes payable repayments. We were in compliance with all covenants and conditions under our debt indentures as of February 28, 2022 and May 31, 2021. We are required to pledge eligible mortgage notes in an amount at least equal to the outstanding balance of our secured debt. See “Note 4—Loans” for information on pledged collateral under our secured debt agreements. Collateral Trust Bonds Collateral trust bonds outstanding increased $102 million to $7,294 million as of February 28, 2022, primarily due to the February 7, 2022 issuance of $500 million aggregate principal amount of 2.75% of Collateral Trust Bonds due April 15, 2032, partially offset by the early redemption of $400 million of 3.05% of Collateral Trust Bonds due February 15, 2022. On February 23, 2022, we provided notice to investors that we will redeem all $450 million of 2.40% of Collateral Trust Bonds due April 25, 2022 on March 25, 2022. Guaranteed Underwriter Program Notes Payable Notes payable outstanding under the Guaranteed Underwriter Program decreased $120 million to $6,149 million as of February 28, 2022, due to notes payable repayments, partially offset by notes payable advances under the Guaranteed Underwriter Program. On November 4, 2021, we closed on a $550 million committed loan facility (“Series S”) from the Federal Financing Bank under the Guaranteed Underwriter Program. Pursuant to this facility, we may borrow any time before July 15, 2026. Each advance is subject to quarterly amortization and a final maturity not longer than 30 years from the date of the advance. We borrowed $450 million and repaid $570 million of notes payable outstanding under the Guaranteed Underwriter Program during the nine months ended February 28, 2022. We had up to $1,075 million available for access under the Guaranteed Underwriter Program as of February 28, 2022. The notes outstanding under the Guaranteed Underwriter Program contain a provision that if during any portion of the fiscal year, our senior secured credit ratings do not have at least two of the following ratings: (i) A3 or higher from Moody’s Investors Service (“Moody’s”), (ii) A- or higher from S&P Global Inc. (“S&P”), (iii) A- or higher from Fitch Ratings (“Fitch”) or (iv) an equivalent rating from a successor rating agency to any of the above rating agencies, we may not make cash patronage capital distributions in excess of 5% of total patronage capital. We are required to pledge eligible distribution system or power supply system loans as collateral in an amount at least equal to the total principal amount of notes outstanding under the Guaranteed Underwriter Program. Farmer Mac Notes Payable We have a revolving note purchase agreement with Farmer Mac, dated March 24, 2011, as amended, under which we can borrow up to $5,500 million from Farmer Mac at any time, subject to market conditions, through June 30, 2026, with successive automatic one ricing agreement. The amount outstanding under this agreement included $3,018 million of long-term debt as of February 28, 2022. We advanced long-term notes payable totaling $620 million under the Farmer Mac Note Purchase Agreement during the nine months ended February 28, 2022. The amount availab le for borrowing totaled $2,482 million as of February 28, 2022. Unsecured Debt Long-term unsecured debt of $5,058 million and $4,160 million as of February 28, 2022 and May 31, 2021, respectively, represented 23% and 20% of total long-term debt outstanding as of each respective date. The increase in long-term unsecured debt of $898 million for the nine months ended February 28, 2022 was primarily attributable to dealer medium-term notes issuance, as described below, partially offset by dealer medium-term notes repayments. Medium-Term Notes Medium-term notes represent unsecured obligations that may be issued through dealers in the capital markets or directly to our members. On October 18, 2021, we issued $400 million aggregate principal amount of dealer medium-term notes at a fixed rate of 1.000%, due on October 18, 2024, and $350 million aggregate principal amount of dealer medium-term notes at a variable rate based on the Secured Overnight Financing Rate (“SOFR”) plus 0.33%, d ue on October 18, 2024. On February 7, 2022, we issued $600 million aggregate principal amount of dealer medium-term notes at a fixed rate of 1.875% due on February 7, 2025. On February 7, 2022, we also issued $400 million aggregate principal amount of dealer medium-term notes at a variable rate based on SOFR plus 0.40%, due on August 7, 2023. See “Note 7—Long-Term Debt” in our 2021 Form 10-K for additional information on our various long-term debt product types. |
Subordinated Deferrable Debt
Subordinated Deferrable Debt | 9 Months Ended |
Feb. 28, 2022 | |
Subordinated Debt [Abstract] | |
Subordinated Deferrable Debt | NOTE 8—SUBORDINATED DEFERRABLE DEBT Subordinated deferrable debt represents long-term debt that is subordinated to all debt other than subordinated certificates held by our members. We had subordinated deferrable debt outstanding of $986 million as of February 28, 2022, unchanged from May 31, 2021. See “Note 8—Subordinated Deferrable Debt” in our 2021 Form 10-K for additional information on the terms and conditions, including maturity and call dates, of our subordinated deferrable debt outstanding. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Feb. 28, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | NOTE 9—DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We are an end user of derivative financial instruments and do not engage in derivative trading. Derivatives may be privately negotiated contracts, which are often referred to as over-the-counter (“OTC”) derivatives, or they may be listed and traded on an exchange. We generally engage in OTC derivative transactions. Our derivative instruments are an integral part of our interest rate risk-management strategy. Our principal purpose in using derivatives is to manage our aggregate interest rate risk profile within prescribed risk parameters. The derivative instruments we use primarily include interest rate swaps, which we typically hold to maturity. In addition, we may on occasion use treasury locks to manage the interest rate risk associated with future debt issuance or debt that is scheduled to reprice in the future. 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 consolidated balance sheets. We report derivative asset and liability amounts on a gross basis based on individual contracts, which does not take into consideration the effects of master netting agreements or collateral netting. Derivatives in a gain position are reported as derivative assets on our consolidated balance sheets, while derivatives in a loss position are reported as derivative liabilities. Accrued interest related to derivatives is reported on our consolidated balance sheets as a component of either accrued interest receivable or accrued interest payable. If we do not elect hedge accounting treatment, changes in the fair value of derivative instruments, which consist of net accrued periodic derivative cash settlements expense and derivative forward value amounts, are recognized in our consolidated statements of operations under derivative gains (losses). If we elect hedge accounting treatment for derivatives, we formally document, designate and assess the effectiveness of the hedge relationship. Changes in the fair value of derivatives designated as qualifying fair value hedges are recorded in earnings together with offsetting changes in the fair value of the hedged item and any related ineffectiveness. Changes in the fair value of derivatives designated as qualifying cash flow hedges are recorded as a component of other comprehensive income (“OCI”), to the extent that the hedge relationships are effective, and reclassified from accumulated other comprehensive income (“AOCI”) to earnings using the effective interest method over the term of the forecasted transaction. Any ineffectiveness in the hedging relationship is recognized as a component of derivative gains (losses) in our consolidated statement of operations. We generally do not designate interest rate swaps, which represent the substantial majority of our derivatives, for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our consolidated statements of operations under derivative gains (losses). Net periodic cash settlements expense related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. We typically designate Treasury rate locks as cash flow hedges of forecasted debt issuances or repricings. Changes in the fair value of treasury locks designated as cash flow hedges are recorded as a component of OCI and reclassified from AOCI into interest expense when the forecasted transaction occurs using the effective interest method. Any ineffectiveness is recognized as a component of derivative gains (losses) in our consolidated statements of operations. Notional Amount of Derivatives Not Designated as Accounting Hedges The notional amount is used only as the basis on which interest payments are determined and is not the amount exchanged, nor recorded on our consolidated balance sheets. The following table shows, by derivative instrument type, the notional amount, the weighted-average rate paid and the weighted-average interest rate received for our interest rate swaps as of February 28, 2022 and May 31, 2021. For the substantial majority of interest rate swap agreements, a LIBOR index is currently used as the basis for determining variable interest payment amounts each period. Table 9.1: Derivative Notional Amount and Weighted Average Rates February 28, 2022 May 31, 2021 (Dollars in thousands) Notional Weighted- Weighted- Notional Weighted- Weighted- Pay-fixed swaps $ 6,023,392 2.61 % 0.34 % $ 6,579,516 2.65 % 0.20 % Receive-fixed swaps 2,049,000 1.00 2.86 2,399,000 0.92 2.80 Total interest rate swaps $ 8,072,392 2.20 0.98 $ 8,978,516 2.19 0.89 Cash Flow Hedges On July 20, 2021, we executed two treasury lock agreements with an aggregate notional amount of $250 million to lock in the underlying U.S. Treasury interest rate component of interest rate payments on anticipated debt issuances and repricings. The treasury locks, which were scheduled to mature on October 29, 2021, were designated and qualified as cash flow hedges. In October 2021, we borrowed $250 million under our Farmer Mac revolving purchase note agreement and terminated the treasury locks. Prior to this anticipated borrowing and the termination of the treasury locks, we recorded changes in the fair value of the treasury locks in AOCI. At termination, the treasury locks were in a gain position of $5 million, of which $4 million is being accreted from AOCI to interest expense over the term of the related Farmer Mac borrowings and the remainder was recognized in earnings. We did not have any derivatives designated as accounting hedges as of February 28, 2022 or May 31, 2021. Impact of Derivatives on Consolidated Balance Sheets The following table displays the fair value of the derivative assets and derivative liabilities, by derivatives type, recorded on our consolidated balance sheets and the related outstanding notional amount as of February 28, 2022 and May 31, 2021. Table 9.2: Derivative Assets and Liabilities at Fair Value February 28, 2022 May 31, 2021 (Dollars in thousands) Fair Value Notional Amount Fair Value Notional Amount Derivative assets: Interest rate swaps $ 50,901 $ 2,449,726 $ 121,259 $ 2,560,618 Total derivative assets $ 50,901 $ 2,449,726 $ 121,259 $ 2,560,618 Derivative liabilities: Interest rate swaps $ 391,988 $ 5,622,666 $ 584,989 $ 6,417,898 Total derivative liabilities $ 391,988 $ 5,622,666 $ 584,989 $ 6,417,898 While 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, we report derivative asset and liability amounts on a gross basis by individual contract. The following table presents the gross fair value of derivative assets and liabilities reported on our consolidated balance sheets as of February 28, 2022 and May 31, 2021, and provides information on the impact of netting provisions under our master swap agreements and collateral pledged, if any. Table 9.3: Derivative Gross and Net Amounts February 28, 2022 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 50,901 $ — $ 50,901 $ 50,901 $ — $ — Derivative liabilities: Interest rate swaps 391,988 — 391,988 50,901 — 341,087 May 31, 2021 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 121,259 $ — $ 121,259 $ 121,259 $ — $ — Derivative liabilities: Interest rate swaps 584,989 — 584,989 121,259 — 463,730 Impact of Derivatives on Consolidated Statements of Operations The primary factors affecting the fair value of our derivatives and the derivative gains (losses) recorded in our consolidated statements of operations include changes in interest rates, the shape of the swap curve and the composition of our derivative portfolio. We generally record derivative losses when interest rates decline and derivative gains when interest rates rise, as our derivative portfolio consists of a higher proportion of pay-fixed swaps than receive-fixed swaps. The following table presents the components of the derivative gains (losses) reported in our consolidated statements of operations for the three and nine months ended February 28, 2022 and 2021. Derivative cash settlements interest expense represents the net periodic contractual interest amount for our interest-rate swaps during the reporting period. Derivative forward value gains (losses) represent the change in fair value of our interest rate swaps during the reporting period due to changes in expected future interest rates over the remaining life of our derivative contracts. We classify the derivative cash settlement amounts for the net periodic contractual interest expense on our interest rate swaps as an operating activity in our consolidated statements of cash flows. Table 9.4: Derivative Gains (Losses) Three Months Ended February 28, Nine Months Ended February 28, (Dollars in thousands) 2022 2021 2022 2021 Derivative gains (losses) attributable to: Derivative cash settlements interest expense $ (26,212) $ (29,735) $ (79,727) $ (86,507) Derivative forward value gains 195,492 359,931 122,930 558,266 Derivative gains $ 169,280 $ 330,196 $ 43,203 $ 471,759 Credit Risk-Related Contingent Features Our derivative contracts typically contain mutual early-termination provisions, generally in the form of a credit rating trigger. Under the mutual credit rating trigger provisions, either counterparty may, but is not obligated to, terminate and settle the agreement if the credit rating of the other counterparty falls below a level specified in the agreement. If a derivative contract is terminated, the amount to be received or paid by us would be equal to the prevailing fair value, as defined in the agreement, as of the termination date. On December 13, 2021, S&P affirmed CFC’s credit ratings and stable outlook under its revised criteria and updated methodology for rating financial institutions published on December 9, 2021. On December 16, 2021, Moody’s affirmed CFC’s credit ratings and stable outlook. On February 4, 2022, Fitch issued a credit ratings report review of CFC in which Fitch affirmed CFC’s credit ratings and stable outlook. Our senior unsecured credit ratings from Moody’s, S&P and Fitch were A2, A- and A, respectively, as of February 28, 2022. Moody’s, S&P and Fitch had our ratings on stable outlook as of February 28, 2022. Our credit ratings and outlook remain unchanged as of the date of this Report. The following table displays the notional amounts of our derivative contracts with rating triggers as of February 28, 2022, and the payments that would be required if the contracts were terminated as of that date because of a downgrade of our unsecured credit ratings or the counterparty’s unsecured credit ratings below A3/A-, below Baa1/BBB+, to or below Baa2/BBB, or to or below Ba2/BB+ by Moody’s or S&P, respectively. In calculating the payment amounts that would be required upon termination of the derivative contracts, we assume that amounts for each counterparty would be netted in accordance with the provisions of the master netting agreements with the counterparty. The net payment amounts are based on the fair value of the underlying derivative instrument, excluding the credit risk valuation adjustment, plus any unpaid accrued interest amounts. Table 9.5: Derivative Credit Rating Trigger Exposure (Dollars in thousands) Notional Payable Due from CFC Receivable Net Payable Impact of rating downgrade trigger: Falls below A3/A- (1) $ 36,110 $ (5,726) $ — $ (5,726) Falls below Baa1/BBB+ 5,524,597 (231,423) — (231,423) Falls to or below Baa2/BBB (2) 294,404 (9,903) — (9,903) Total $ 5,855,111 $ (247,052) $ — $ (247,052) ____________________________ (1) Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. (2) Rating trigger for CFC falls to or below Baa2/BBB, while rating trigger for counterparty falls to or below Ba2/BB+ by Moody’s or S&P, respectively. We have interest rate swaps with one counterparty that are subject to a ratings trigger and early termination provision in the event of a downgrade of CFC’s senior unsecured credit ratings below Baa3, BBB- or BBB- by Moody’s, S&P or Fitch, respectively. The outstanding notional amount of these swaps, which is not included in the above table, totaled $223 million as of February 28, 2022. These swaps were in an unrealized loss position of $16 million as of February 28, 2022. Our largest counterparty exposure, based on the outstanding notional amount, accounted for approximately 24% the total outstanding notional amount of derivatives as of both February 28, 2022 and May 31, 2021. The aggregate fair value amount, including the credit valuation adjustment, of all interest rate swaps with rating triggers that were in a net liability position was $256 million as of February 28, 2022. |
Equity
Equity | 9 Months Ended |
Feb. 28, 2022 | |
Stockholders' Equity Note [Abstract] | |
Equity | NOTE 10—EQUITY Total equity increased $253 million to $1,653 million as of February 28, 2022, attributable primarily to our reported net income of $307 million for the nine months ended February 28, 2022, partially offset by the patronage capital retirement of $58 million authorized by the CFC Board of Directors in July 2021. Allocation of Earnings and Retirement of Patronage Capital In May 2021, the CFC Board of Directors authorized the allocation of $1 million of net earnings for fiscal year 2021 to the cooperative educational fund. In July 2021, the CFC Board of Directors authorized the allocation of net earnings for fiscal year 2021 as follows: $90 million to members in the form of patronage capital and $102 million to the members’ capital reserve. 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 2021, the CFC Board of Directors also authorized the retirement of allocated net earnings totaling $58 million, of which $45 million represented 50% of the patronage capital allocation for fiscal year 2021 and $13 million represented the portion of the allocation from net earnings for fiscal year 1996 that has been held for 25 years pursuant to the CFC Board of Directors policy. The authorized patronage capital retirement amount of $58 million was returned to members in cash in September 2021. The remaining portion of the amount allocated for fiscal year 2021 will be retained by CFC for 25 years under current guidelines adopted by the CFC Board of Directors in June 2009. See “Note 11—Equity” in our 2021 Form 10-K for additional information on our policy for allocation and retirement of patronage capital. Accumulated Other Comprehensive Income (Loss) The following table presents, by component, changes in AOCI for the three and nine months ended February 28, 2022 and 2021 and the balance of each component as of the end of each respective period. Table 10.1: Changes in Accumulated Other Comprehensive Income (Loss) Three Months Ended February 28, 2022 2021 (Dollars in thousands) Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Beginning balance $ 5,506 $ (1,600) $ 3,906 $ 1,918 $ (3,664) $ (1,746) Changes in unrealized gains — — — — — — Realized (gains) losses reclassified to earnings (192) 72 (120) (101) 188 87 Ending balance $ 5,314 $ (1,528) $ 3,786 $ 1,817 $ (3,476) $ (1,659) Nine Months Ended February 28, 2022 2021 (Dollars in thousands) Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Beginning balance $ 1,718 $ (1,743) $ (25) $ 2,130 $ (4,040) $ (1,910) Changes in unrealized gains 4,028 — 4,028 — — — Realized (gains) losses reclassified to earnings (432) 215 (217) (313) 564 251 Ending balance $ 5,314 $ (1,528) $ 3,786 $ 1,817 $ (3,476) $ (1,659) ____________________________ (1) Of the derivative gains reclassified to earnings, a portion is reclassified as a component of the derivative gains (losses) line item and the remainder is reclassified as a component of the interest expense line item on our consolidated statements of operations. (2) Reclassified to earnings as component of the other non-interest expense line item presented on our consolidated statements of operations. We expect to reclassify realized gains of $1 million attributable to derivative cash flow hedges from AOCI into earnings over the next 12 months. |
Guarantees
Guarantees | 9 Months Ended |
Feb. 28, 2022 | |
Guarantees [Abstract] | |
Guarantees | NOTE 11—GUARANTEES We guarantee certain contractual obligations of our members so they may obtain various forms of financing. We use the same credit policies and monitoring procedures in providing guarantees as we do for loans and commitments. If a member system defaults on its obligation to pay debt service, then we are obligated to pay any required amounts under our guarantees. Meeting our guarantee obligations satisfies the underlying obligation of our member systems and prevents the exercise of remedies by the guarantee beneficiary based upon a payment default by a member system. In general, the member system is required to repay any amount advanced by us with interest, pursuant to the documents evidencing the member system’s reimbursement obligation. The following table displays the notional amount of our outstanding guarantee obligations, by guarantee type and by member class, as of February 28, 2022 and May 31, 2021. Table 11.1: Guarantees Outstanding by Type and Member Class (Dollars in thousands) February 28, 2022 May 31, 2021 Guarantee type: Long-term tax-exempt bonds (1) $ 123,775 $ 145,025 Letters of credit (2) 425,917 389,735 Other guarantees 157,612 154,320 Total $ 707,304 $ 689,080 Member class: CFC: Distribution $ 297,577 $ 251,023 Power supply 372,048 415,984 Statewide and associate (3) 12,237 5,523 CFC total 681,862 672,530 NCSC 25,442 16,550 Total $ 707,304 $ 689,080 ____________________________ (1) Represents the outstanding principal amount of long-term variable-rate guaranteed bonds. (2) Reflects our maximum potential exposure for letters of credit. (3) Includes CFC guarantees to NCSC and RTFC memb ers totaling $10 million an d $3 million as of February 28, 2022 and May 31, 2021, respectively. Long-term tax-exempt bonds of $124 million a nd $145 million as of February 28, 2022 and May 31, 2021 , respectively, consist of adjustable or variable-rate bonds that may be converted to a fixed rate as specified in the applicable indenture for each bond offering. We are unable to determine the maximum amount of interest that we may be required to pay related to the remaining adjustable and variable-rate bonds. Many of these bonds have a call provision that allows us to call the bond in the event of a default, which would limit our exposure to future interest payments on these bonds. Our maximum potential exposure generally is secured by mortgage liens on the members’ assets and future revenue. If a member’s debt is accelerated because of a determination that the interest thereon is not tax-exempt, the member’s obligation to reimburse us for any guarantee payments will be treated as a long-term loan. The maturities for long-term tax-exempt bonds and the related guarantees extend through calendar year 2037. Of the outstanding letters of credit of $426 million and $390 million as of February 28, 2022 and May 31, 2021, respectively, $120 million and $104 million were secured at each respective date. 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 February 28, 2022. The maturities for the outstanding letters of credit as of February 28, 2022 extend through calendar year 2040. In addition to the letters of credit listed in the table above, under master letter of credit facilities in place as of February 28, 2022, we may be required to issue up to an additional $91 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 February 28, 2022. Prior to issuing a letter of credit, we would confirm that there has been no material adverse change in the business or condition, financial or otherwise, of the borrower since the time the loan was approved and confirm that the borrower is currently in compliance with the letter of credit terms and conditions. The maximum potential exposure for other guarantees was $158 million and $154 million as of February 28, 2022 and May 31, 2021, respectively, of which $25 million was secured as of both February 28, 2022 and May 31, 2021. 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 $439 million and $415 million and represented 62% and 60% of total guarantees as of February 28, 2022 and May 31, 2021, respectively. In addition to the guarantees described above, we were also the liquidity provider for $124 million of variable-rate tax-exempt bonds as of February 28, 2022, issued for our member cooperatives. While the bonds are in variable-rate mode, in return for a fee, we have unconditionally agreed to purchase bonds tendered or put for redemption if the remarketing agents are unable to sell such bonds to other investors. We were not required to perform as liquidity provider pursuant to these obligations during the nine months ended February 28, 2022 or the prior fiscal year. Guarantee Liability We recorded a total guarantee liability for noncontingent and contingent exposures related to guarantees and liquidity obligations of $13 million and $10 million as of February 28, 2022 and May 31, 2021, respectively. The noncontingent guarantee liability, which pertains to our obligation to stand ready to perform over the term of our guarantees and liquidity obligations we have entered into or modified since January 1, 2003 and accounts for the substantial majority of our guarantee liability, totaled $12 million and $9 million as of February 28, 2022 and May 31, 2021, respectively. The remaining amount pertains to our contingent guarantee exposures. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Feb. 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 12—FAIR VALUE MEASUREMENT Fair value, also referred to as an exit price, is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. The fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The levels, in priority order based on the extent to which observable inputs are available to measure fair value, are Level 1, Level 2 and Level 3. The accounting guidance for fair value measurements requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The following table presents the carrying value and estimated fair value of all of our financial instruments, including those carried at amortized cost, as of February 28, 2022 and May 31, 2021. The table also displays the classification level within the fair value hierarchy based on the degree of observability of the inputs used in the valuation technique for estimating fair value. Table 12.1: Fair Value of Financial Instruments February 28, 2022 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 104,248 $ 104,248 $ 104,248 $ — $ — Restricted cash 6,530 6,530 6,530 — — Equity securities, at fair value 35,358 35,358 35,358 — — Debt securities trading, at fair value 565,426 565,426 — 565,426 — Deferred compensation investments 7,084 7,084 7,084 — — Loans to members, net 29,446,995 29,935,210 — — 29,935,210 Accrued interest receivable 110,484 110,484 — 110,484 — Derivative assets 50,901 50,901 — 50,901 — Total financial assets $ 30,327,026 $ 30,815,241 $ 153,220 $ 726,811 $ 29,935,210 Liabilities: Short-term borrowings $ 4,428,057 $ 4,426,727 $ — $ 4,426,727 $ — Long-term debt 21,521,734 21,850,664 — 12,922,319 8,928,345 Accrued interest payable 171,406 171,406 — 171,406 — Guarantee liability 12,758 13,402 — — 13,402 Derivative liabilities 391,988 391,988 — 391,988 — Subordinated deferrable debt 986,466 1,008,253 253,600 754,653 — Members’ subordinated certificates 1,233,836 1,233,836 — — 1,233,836 Total financial liabilities $ 28,746,245 $ 29,096,276 $ 253,600 $ 18,667,093 $ 10,175,583 May 31, 2021 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 295,063 $ 295,063 $ 295,063 $ — $ — Restricted cash 8,298 8,298 8,298 — — Equity securities, at fair value 35,102 35,102 35,102 — — Debt securities trading, at fair value 576,175 576,175 — 576,175 — Deferred compensation investments 7,222 7,222 7,222 — — Loans to members, net 28,341,429 29,967,692 — — 29,967,692 Accrued interest receivable 107,856 107,856 — 107,856 — Derivative assets 121,259 121,259 — 121,259 — Total financial assets $ 29,492,404 $ 31,118,667 $ 345,685 $ 805,290 $ 29,967,692 Liabilities: Short-term borrowings $ 4,582,096 $ 4,582,329 $ — $ 4,582,329 $ — Long-term debt 20,603,123 21,799,736 — 12,476,073 9,323,663 Accrued interest payable 123,672 123,672 — 123,672 — Guarantee liability 10,041 10,841 — — 10,841 Derivative liabilities 584,989 584,989 — 584,989 — Subordinated deferrable debt 986,315 1,062,748 265,200 797,548 — Members’ subordinated certificates 1,254,660 1,254,660 — — 1,254,660 Total financial liabilities $ 28,144,896 $ 29,418,975 $ 265,200 $ 18,564,611 $ 10,589,164 For additional information regarding fair value measurements, the fair value hierarchy and a description of the methodologies we use to estimate fair value, see “Note 14—Fair Value Measurement” to the Consolidated Financial Statements in our 2021 Form 10-K. Transfers Between Levels We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy and transfer between Level 1, Level 2, and Level 3 accordingly. Observable market data includes but is not limited to quoted prices and market transactions. Changes in economic conditions or market liquidity generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changes in the valuation technique used, are generally the cause of transfers between levels. We did not have any transfers into or out of Level 3 of the fair value hierarchy during the nine months ended February 28, 2022 and 2021. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the carrying value and fair value of financial instruments reported in our consolidated financial statements at fair value on a recurring basis as of February 28, 2022 and May 31, 2021, and the classification of the valuation technique within the fair value hierarchy. We did no t have any assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs during the three and nine months ended February 28, 2022 and 2021. Table 12.2: Assets and Liabilities Measured at Fair Value on a Recurring Basis February 28, 2022 May 31, 2021 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities, at fair value $ 35,358 $ — $ 35,358 $ 35,102 $ — $ 35,102 Debt securities trading, at fair value — 565,426 565,426 — 576,175 576,175 Deferred compensation investments 7,084 — 7,084 7,222 — 7,222 Derivative assets — 50,901 50,901 — 121,259 121,259 Liabilities: Derivative liabilities $ — $ 391,988 $ 391,988 $ — $ 584,989 $ 584,989 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis on our consolidated balance sheets. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as in the application of lower of cost or fair value accounting or when we evaluate assets for impairment. We had certain loans measured at fair value on a nonrecurring basis during the nine months ended February 28, 2022 and 2021 , which were repaid in full in November 2021. Collateral-Dependent Loans Because our loans are classified as held for investment and carried at amortized cost, we generally do not record loans at fair value on a recurring basis. However, we periodically record nonrecurring fair value adjustments for nonperforming collateral-dependent loans through the allowance for credit losses and provision for credit losses. We had no nonperforming collateral-dependent loans outstanding as of February 28, 2022. We had nonperforming collateral-dependent loans outstanding to two affiliated RTFC telecommunications borrowers totaling $9 million as of May 31, 2021, which were paid off in November 2021. The collateral underlying these loans consisted primarily of U.S. Federal Communications Commission (“FCC”) wireless spectrum licenses. Our estimate of the fair value of these loans was $6 million as of May 31, 2021. Significant Unobservable Level 3 Inputs We employ various approaches and techniques to estimate the fair value of loans where we expect repayment to be provided solely by the continued operation or sale of the underlying collateral, including estimated cash flows from the collateral, valuations obtained from third-party specialists and comparable sales data. The technique depends on the nature of the collateral and the extent to which observable inputs are available. Our Credit Risk Management group reviews the valuation technique, including the use of any significant inputs that are not readily observable by market participants, to assess the appropriateness of the technique and the reasonableness of the assumptions involved. The estimated fair value of $6 million as of May 31, 2021 for the two affiliated RTFC nonperforming collateral-dependent loans totaling $9 million as of May 31, 2021, was derived primarily based on the lower end of limited publicly available sales data for the underlying FCC spectrum licenses collateral. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Feb. 28, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | NOTE 13—VARIABLE INTEREST ENTITIES NCSC and RTFC meet the definition of a VIE because they do not have sufficient equity investment at risk to finance their activities without financial support. CFC is the primary source of funding for NCSC and the sole source of funding for RTFC. Under the terms of management agreements with each company, CFC manages the business operations of NCSC and RTFC. CFC also unconditionally guarantees full indemnification for any loan losses of NCSC and RTFC pursuant to guarantee agreements with each company. CFC earns management and guarantee fees from its agreements with NCSC and RTFC. All loans that require NCSC board approval also require CFC board approval. CFC is not a member of NCSC and does not elect directors to the NCSC board. If CFC becomes a member of NCSC, it would control the nomination process for one NCSC director. NCSC members elect directors to the NCSC board based on one vote for each member. NCSC is a Class C member of CFC. All loans that require RTFC board approval also require approval by CFC for funding under RTFC’s credit facilities with CFC. CFC is not a member of RTFC and does not elect directors to the RTFC board. RTFC is a non-voting associate of CFC. RTFC members elect directors to the RTFC board based on one vote for each member. NCSC and RTFC creditors have no recourse against CFC in the event of a default by NCSC and RTFC, unless there is a guarantee agreement under which CFC has guaranteed NCSC or RTFC debt obligations to a third party. The following table provides information on incremental consolidated assets and liabilities of VIEs included in CFC’s consolidated financial statements, after intercompany eliminations, as of February 28, 2022 and May 31, 2021. Table 13.1: Consolidated Assets and Liabilities of Variable Interest Entities (Dollars in thousands) February 28, 2022 May 31, 2021 Assets: Loans outstanding $ 1,187,887 $ 1,127,251 Other assets 9,094 11,343 Total assets $ 1,196,981 $ 1,138,594 Liabilities: Total liabilities $ 25,221 $ 30,187 The following table provides information on CFC’s credit commitments to NCSC and RTFC and potential exposure to loss under these commitments as of February 28, 2022 and May 31, 2021. Table 13.2: CFC Exposure Under Credit Commitments to NCSC and RTFC (Dollars in thousands) February 28, 2022 May 31, 2021 CFC credit commitments to NCSC and RTFC: Total CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,166,731 1,107,185 Credit enhancements: CFC third-party guarantees 25,442 16,550 Other credit enhancements 6,273 8,386 Total credit enhancements (2) 31,715 24,936 Total outstanding commitments 1,198,446 1,132,121 CFC credit commitments available (3) $ 4,301,554 $ 4,367,879 ____________________________ (1) Intercompany borrowings payable by NCSC and RTFC to CFC are eliminated in consolidation. (2) Excludes interest due on these instruments. (3) Represents total CFC credit commitments less outstanding commitments as of each period end. Under a loan and security agreement with CFC, NCSC has access to a $1,500 million revolving line of credit and a $1,500 million revolving term loan from CFC, which mature in 2067. Under a loan and security agreement with CFC, RTFC has access to a $1,000 million revolving line of credit and a $1,500 million revolving term loan from CFC, which mature in 2067. CFC loans to NCSC and RTFC are secured by all assets and rev enue of NCSC and RTFC. CFC’s maximum potential exposure, including interest due, for the credit enhancements totaled $32 million as of February 28, 2022. Th e maturities for obligations guaranteed by CFC extend through 2031. |
Business Segments
Business Segments | 9 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | NOTE 14—BUSINESS SEGMENTS Our activities are conducted through three operating segments, which are based on each of the legal entities included in our consolidated financial statements: CFC, NCSC and RTFC. We report segment information for CFC separately; however, we aggregate segment information for NCSC and RTFC into one reportable segment because neither entity meets the quantitative materiality threshold for separate reporting under the accounting guidance governing segment reporting. Basis of Presentation We present the results of our business segments on the basis in which management internally evaluates operating performance to establish short- and long-term performance goals, develop budgets and forecasts, identify potential trends, allocate resources and make compensation decisions. During the current quarter, we changed the presentation of our segment results to align more closely to the presentation of financial information reviewed regularly by our Chief Executive Officer, the chief operating decision maker, to assess performance and inform the decision-making process in managing our business operations. This presentation change excludes derivative forward value derivative gains and losses from the results of operations results for each segment and includes net periodic derivative cash settlement expense amounts as a component of interest expense, which represents the only difference between the accounting and reporting for our business segment results of operations and our consolidated total results of operations. We recast the presentation of our business segment results for the prior fiscal year period to align with the current period presentation. Business Segment Reporting Methodology The results of our business segments are intended to present the separate results for each of the legal entities included in our consolidated financial statements. As discussed in “Note 13—Variable Interest Entities,” all of NCSC’s and RTFC’s funding is either provided by CFC or guaranteed by CFC, the terms and conditions of which are stipulated in a loan and security agreement and a guarantee agreement between CFC and each legal entity. Pursuant to the guarantee agreement, CFC unconditionally guarantees full indemnification to NCSC and RTFC for any credit losses. In addition, CFC manages the business operations of NCSC and RTFC under a management agreement that automatically renews on an annual basis unless the agreement is terminated by either party. We report loans and interest and fees earned on loans based on the legal entity that holds the loans. CFC borrows from various sources to fund the operations of CFC, NCSC and RTFC, the cost of which is reflected in CFC’s interest expense. NCSC and RTFC each borrow from CFC to fund loans to their members, the cost of which is reported as interest expense by each legal entity. CFC charges NCSC and RTFC a management fee, which CFC reports as a component of fee and other income. NCSC and RTFC report the management fee charged by CFC as a component of non-interest expense. CFC and NCSC use derivatives, primarily interest rate swaps, to manage interest rate risk. Because we generally do not elect to apply hedge accounting to our interest rate swaps, changes in the fair value of our interest rate swaps are recorded in earnings in our consolidated total results of operations. However, management excludes the impact of derivative forward value gains and losses and includes the net periodic derivative cash settlement interest expense amounts as a component of interest expense in reporting our segment results of operations. Segment Results and Reconciliation The following tables display segment results of operations for the three and nine months ended February 28, 2022 and 2021, assets attributable to each segment as of February 28, 2022 and February 28, 2021 and a reconciliation of total segment amounts to our consolidated total amounts. Table 14.1: Business Segment Information Three Months Ended February 28, 2022 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 283,162 $ 10,817 $ 293,979 $ — $ (8,773) $ 285,206 Interest expense (173,654) (8,773) (182,427) — 8,773 (173,654) Derivative cash settlements interest expense (25,802) (410) (26,212) 26,212 — — Interest expense (199,456) (9,183) (208,639) 26,212 8,773 (173,654) Net interest income 83,706 1,634 85,340 26,212 — 111,552 Benefit for credit losses 12,749 2 12,751 — (2) 12,749 Net interest income after benefit for credit losses 96,455 1,636 98,091 26,212 (2) 124,301 Non-interest income: Fee and other income 5,590 685 6,275 — (2,005) 4,270 Derivative gains: Derivative cash settlements interest expense — — — (26,212) — (26,212) Derivative forward value gains — — — 195,492 — 195,492 Derivative gains — — — 169,280 — 169,280 Investment securities losses (11,621) — (11,621) — — (11,621) Total non-interest income (6,031) 685 (5,346) 169,280 (2,005) 161,929 Non-interest expense: General and administrative expenses (22,690) (1,984) (24,674) — 1,595 (23,079) Losses on early extinguishment of debt (578) — (578) — — (578) Other non-interest expense (265) (412) (677) — 412 (265) Total non-interest expense (23,533) (2,396) (25,929) — 2,007 (23,922) Income (loss) before income taxes 66,891 (75) 66,816 195,492 — 262,308 Income tax provision — (343) (343) — — (343) Net income (loss) $ 66,891 $ (418) $ 66,473 $ 195,492 $ — $ 261,965 Three Months Ended February 28, 2021 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 276,153 $ 10,901 $ 287,054 $ — $ (8,882) $ 278,172 Interest expense (173,039) (8,883) (181,922) — 8,882 (173,040) Derivative cash settlements interest expense (29,307) (428) (29,735) 29,735 — — Interest expense (202,346) (9,311) (211,657) 29,735 8,882 (173,040) Net interest income 73,807 1,590 75,397 29,735 — 105,132 Provision for credit losses (33,023) (3,588) (36,611) — 3,588 (33,023) Net interest income after provision for credit losses 40,784 (1,998) 38,786 29,735 3,588 72,109 Non-interest income: Fee and other income 5,059 4,308 9,367 — (5,548) 3,819 Derivative gains: Derivative cash settlements interest expense — — — (29,735) — (29,735) Derivative forward value gains — — — 359,931 — 359,931 Derivative gains — — — 330,196 — 330,196 Investment securities losses (2,807) — (2,807) — — (2,807) Total non-interest income 2,252 4,308 6,560 330,196 (5,548) 331,208 Non-interest expense: General and administrative expenses (23,174) (1,909) (25,083) — 1,521 (23,562) Other non-interest expense (301) (439) (740) — 439 (301) Total non-interest expense (23,475) (2,348) (25,823) — 1,960 (23,863) Income (loss) before income taxes 19,561 (38) 19,523 359,931 — 379,454 Income tax provision — (507) (507) — — (507) Net income (loss) $ 19,561 $ (545) $ 19,016 $ 359,931 $ — $ 378,947 Nine Months Ended February 28, 2022 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 845,600 $ 32,243 $ 877,843 $ — $ (26,217) $ 851,626 Interest expense (522,027) (26,217) (548,244) — 26,217 (522,027) Derivative cash settlements interest expense (78,480) (1,247) (79,727) 79,727 — — Interest expense (600,507) (27,464) (627,971) 79,727 26,217 (522,027) Net interest income 245,093 4,779 249,872 79,727 — 329,599 Benefit for credit losses 12,146 2,859 15,005 — (2,859) 12,146 Net interest income after benefit for credit losses 257,239 7,638 264,877 79,727 (2,859) 341,745 Non-interest income: Fee and other income 17,006 (243) 16,763 — (3,721) 13,042 Derivative gains: Derivative cash settlements interest expense — — — (79,727) — (79,727) Derivative forward value gains — — — 122,930 — 122,930 Derivative gains — — — 43,203 — 43,203 Investment securities losses (18,190) — (18,190) — — (18,190) Total non-interest income (1,184) (243) (1,427) 43,203 (3,721) 38,055 Non-interest expense: General and administrative expenses (69,060) (6,110) (75,170) — 4,786 (70,384) Losses on early extinguishment of debt (696) — (696) — — (696) Other non-interest expense (834) (1,794) (2,628) — 1,794 (834) Total non-interest expense (70,590) (7,904) (78,494) — 6,580 (71,914) Income (loss) before income taxes 185,465 (509) 184,956 122,930 — 307,886 Income tax provision — (524) (524) — — (524) Net income (loss) $ 185,465 $ (1,033) $ 184,432 $ 122,930 $ — $ 307,362 February 28, 2022 CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 29,487,207 $ 1,187,887 $ 30,675,094 $ — $ (1,166,731) $ 29,508,363 Deferred loan origination costs 12,018 — 12,018 — — 12,018 Loans to members 29,499,225 1,187,887 30,687,112 — (1,166,731) 29,520,381 Less: Allowance for credit losses (73,386) (3,210) (76,596) — 3,210 (73,386) Loans to members, net 29,425,839 1,184,677 30,610,516 — (1,163,521) 29,446,995 Other assets 1,027,433 96,117 1,123,550 — (87,023) 1,036,527 Total assets $ 30,453,272 $ 1,280,794 $ 31,734,066 $ — $ (1,250,544) $ 30,483,522 Nine Months Ended February 28, 2021 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 828,222 $ 32,917 $ 861,139 $ — $ (26,884) $ 834,255 Interest expense (527,437) (26,885) (554,322) — 26,884 (527,438) Derivative cash settlements interest expense (85,240) (1,267) (86,507) 86,507 — — Interest expense (612,677) (28,152) (640,829) 86,507 26,884 (527,438) Net interest income 215,545 4,765 220,310 86,507 — 306,817 Provision for credit losses (34,987) (2,481) (37,468) — 2,481 (34,987) Net interest income after provision for credit losses 180,558 2,284 182,842 86,507 2,481 271,830 Non-interest income: Fee and other income 17,347 4,478 21,825 — (8,158) 13,667 Derivative gains: Derivative cash settlements interest expense — — — (86,507) — (86,507) Derivative forward value gains — — — 558,266 — 558,266 Derivative gains — — — 471,759 — 471,759 Investment securities gains 491 — 491 — — 491 Total non-interest income 17,838 4,478 22,316 471,759 (8,158) 485,917 Non-interest expense: General and administrative expenses (69,124) (5,944) (75,068) — 4,707 (70,361) Losses on early extinguishment of debt (1,455) — (1,455) — — (1,455) Other non-interest expense (956) (970) (1,926) — 970 (956) Total non-interest expense (71,535) (6,914) (78,449) — 5,677 (72,772) Income (loss) before income taxes 126,861 (152) 126,709 558,266 — 684,975 Income tax provision — (920) (920) — — (920) Net income (loss) $ 126,861 $ (1,072) $ 125,789 $ 558,266 $ — $ 684,055 February 28, 2021 CFC NCSC and RTFC Segment Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 28,294,236 $ 1,152,844 $ 29,447,080 $ — $ (1,131,409) $ 28,315,671 Deferred loan origination costs 11,810 — 11,810 — — 11,810 Loans to members 28,306,046 1,152,844 29,458,890 — (1,131,409) 28,327,481 Less: Allowance for credit losses (92,012) (8,168) (100,180) — 8,168 (92,012) Loans to members, net 28,214,034 1,144,676 29,358,710 — (1,123,241) 28,235,469 Other assets 1,169,521 108,022 1,277,543 — (98,024) 1,179,519 Total assets $ 29,383,555 $ 1,252,698 $ 30,636,253 $ — $ (1,221,265) $ 29,414,988 ____________________________ (1) Consists of (i) the reclassification of net periodic derivative settlement interest expense amounts, which we report as a component of interest expense for business segment reporting purposes but is included in derivatives gains (losses) in our consolidated total results and (ii) derivative forward value gains and losses, which we exclude from our business segment results but is included in derivatives gains (losses) in our consolidated total results. (2) Consists of intercompany borrowings payable by NCSC and RTFC to CFC and the interest related to those borrowings, management fees paid by NCSC and RTFC to CFC and other intercompany amounts, all of which are eliminated in consolidation. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Feb. 28, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15—SUBSEQUENT EVENTS On March 18, 2022, Brazos Sandy Creek, a wholly-owned subsidiary of Brazos and a CFC Texas-based electric power supply borrower, filed for bankruptcy following the filing of a motion by Brazos to reject its power purchase agreement with Brazos Sandy Creek as part of Brazos’ bankruptcy proceedings. A Chapter 7 Trustee has been appointed, and the Chapter 7 Trustee has requested approval from the bankruptcy court to operate Brazos Sandy Creek as a going concern. CFC had a secured loan outstanding to Brazos Sandy Creek totaling $28 million as of February 28, 2022, which, upon notification of the bankruptcy filing by Brazos Sandy Creek, we classified as nonperforming during the fiscal quarter ended May 31, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - (Policies) | 9 Months Ended |
Feb. 28, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The CompanyNational Rural Utilities Cooperative Finance Corporation (“CFC”) is a tax-exempt, member-owned cooperative association incorporated under the laws of the District of Columbia in April 1969. CFC’s principal purpose is to provide its members with financing to supplement the loan programs of the Rural Utilities Service (“RUS”) of the United States Department of Agriculture (“USDA”). CFC makes loans to its rural electric members so they can acquire, construct and operate electric distribution systems, electric generation and transmission (“power supply”) systems and related facilities. CFC also provides its members with credit enhancements in the form of letters of credit and guarantees of debt obligations. As a cooperative, CFC is owned by and exclusively serves its membership, which consists of not-for-profit entities or subsidiaries or affiliates of not-for-profit entities. |
Basis of Presentation | Basis of Presentation and Use of Estimates The accompanying unaudited interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and for interim financial statements. These consolidated financial statements include the accounts of CFC, variable interest entities (“VIEs”) where CFC is the primary beneficiary and subsidiary entities created and controlled by CFC to hold foreclosed assets. National Cooperative Services Corporation (“NCSC”) and Rural Telephone Finance Cooperative (“RTFC”) are VIEs that are required to be consolidated by CFC. NCSC is a taxable member-owned cooperative that may provide financing to members of CFC, government or quasi-government entities which own electric utility systems that meet the Rural Electrification Act definition of “rural,” and for-profit and nonprofit entities that are owned, operated or controlled by, or provide significant benefits to certain members of CFC. RTFC is a taxable Subchapter T cooperative association that provides financing for its rural telecommunications members and their affiliates. CFC has not had entities that held foreclosed assets since fiscal year 2017. All intercompany balances and transactions have been eliminated. Unless stated otherwise, references to “we,” “our” or “us” relate to CFC and its consolidated entities. |
Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures during the period. Management’s most significant estimates and assumptions involve determining the allowance for credit losses. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgments, actual amounts or results could differ from these estimates. In the opinion of management, these unaudited interim financial statements reflect all adjustments of a normal, recurring nature that are necessary for the fair statement of results for the periods presented. |
Reclassification | Certain reclassifications and updates may have been made to the presentation of information in prior periods to conform to the current period presentation. |
COVID-19 | COVID-19 The future trajectory of COVID-19 cases and timing of when the virus will be fully controlled or abated remain uncertain. We continue to closely monitor developments; however, we cannot predict the future impact of COVID-19 on our operational and financial performance, or the specific ways the pandemic may uniquely impact our members, all of which continue to involve significant uncertainties that depend on future developments, which include, among others, the severity and duration of the current COVID-19 resurgence and its impact on the overall economy and other industry sectors; |
New Accounting Standards | New Accounting Standards Financial Instruments-Credit Losses, Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures In March 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which addresses and amends areas identified by the FASB as part of its post-implementation review of the accounting standard that introduced the current expected credit losses (“CECL”) model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross writeoffs for financing receivables and net investment in leases by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for entities, such as CFC, that have adopted the CECL accounting standard. Early adoption, however, is permitted if an entity has adopted the CECL accounting standard. We expect to adopt the guidance for our fiscal year beginning June 1, 2022. While the guidance will result in expanded disclosures, we do not expect an impact on our consolidated results of operation, financial condition or liquidity from adoption of this accounting standard. Amendments of Certain Securities and Exchange (“SEC”) Disclosure Guidance In August 20 21, the FASB issued ASU 2021-06, Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946), Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses, and No.33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. This update amends certain SEC disclosure guidance that is included in the accounting standards codification to reflect the SEC’s recent issuance of rules intended to modernize and streamline disclosure requirements. We adopted the SEC’s guidance on the presentation of financial statements and update of statistical disclosures for bank and savings and loan registrants in conjunction with the completion of our Annual Report on Form 10-K for the fiscal year ended May 31, 2021 (“2021 Form 10-K”), which we filed with the SEC on July 30, 2021. The adoption of this disclosure guidance did not have a material impact on our consolidated financial statements. Reference Rate Reform In March 2020, the FASB issu ed ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions for applying U.S. GAAP on contracts, hedging relationships and other transactions subject to modification due to the expected discontinuance of the London Interbank Offered Rate (“LIBOR”) and other reference rate reform changes to ease the potential accounting and financial burdens related to the expected transition in market reference rates. This guidance permits entities to elect not to apply certain modification accounting requirements to contracts affected by reference rate transition, if certain criteria are met. An entity that makes this election would not be required to remeasure modified contracts at the modification date or reassess a previous accounting determination. The guidance was effective upon issuance on March 12, 2020, and can generally be applied through December 31, 2022. We expect to apply certain of the practical expedients and are in the process of evaluating the timing and application of those elections. Based on our current assessment, we do not believe that the application of this guidance will have a material impact on our consolidated financial statements. |
Accounting for 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 consolidated balance sheets. We report derivative asset and liability amounts on a gross basis based on individual contracts, which does not take into consideration the effects of master netting agreements or collateral netting. Derivatives in a gain position are reported as derivative assets on our consolidated balance sheets, while derivatives in a loss position are reported as derivative liabilities. Accrued interest related to derivatives is reported on our consolidated balance sheets as a component of either accrued interest receivable or accrued interest payable. If we do not elect hedge accounting treatment, changes in the fair value of derivative instruments, which consist of net accrued periodic derivative cash settlements expense and derivative forward value amounts, are recognized in our consolidated statements of operations under derivative gains (losses). If we elect hedge accounting treatment for derivatives, we formally document, designate and assess the effectiveness of the hedge relationship. Changes in the fair value of derivatives designated as qualifying fair value hedges are recorded in earnings together with offsetting changes in the fair value of the hedged item and any related ineffectiveness. Changes in the fair value of derivatives designated as qualifying cash flow hedges are recorded as a component of other comprehensive income (“OCI”), to the extent that the hedge relationships are effective, and reclassified from accumulated other comprehensive income (“AOCI”) to earnings using the effective interest method over the term of the forecasted transaction. Any ineffectiveness in the hedging relationship is recognized as a component of derivative gains (losses) in our consolidated statement of operations. We generally do not designate interest rate swaps, which represent the substantial majority of our derivatives, for hedge accounting. Accordingly, changes in the fair value of interest rate swaps are reported in our consolidated statements of operations under derivative gains (losses). Net periodic cash settlements expense related to interest rate swaps are classified as an operating activity in our consolidated statements of cash flows. |
Fair Value Measurement | Fair value, also referred to as an exit price, is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value accounting guidance provides a three-level fair value hierarchy for classifying financial instruments. This hierarchy is based on the markets in which the assets or liabilities trade and whether the inputs to the valuation techniques used to measure fair value are observable or unobservable. The fair value measurement of a financial asset or liability is assigned a level based on the lowest level of any input that is significant to the fair value measurement in its entirety. The levels, in priority order based on the extent to which observable inputs are available to measure fair value, are Level 1, Level 2 and Level 3. The accounting guidance for fair value measurements requires that we maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. |
Transfer Between Levels | Transfers Between Levels We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy and transfer between Level 1, Level 2, and Level 3 accordingly. Observable market data includes but is not limited to quoted prices and market transactions. Changes in economic conditions or market liquidity generally will drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changes in the valuation technique used, are generally the cause of transfers between levels. We did not have any transfers into or out of Level 3 of the fair value hierarchy during the nine months ended February 28, 2022 and 2021. |
Interest Income and Interest _2
Interest Income and Interest Expense - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Interest Income and Interest Expense | The following table displays the components of interest income, by interest-earning asset type, and interest expense, by debt product type, presented on our consolidated statements of operations for the three and nine months ended February 28, 2022 and 2021. Table 2.1: Interest Income and Interest Expense Three Months Ended February 28, Nine Months Ended February 28, (Dollars in thousands) 2022 2021 2022 2021 Interest income: Loans (1)(2) $ 281,361 $ 274,265 $ 839,548 $ 822,605 Investment securities 3,845 3,907 12,078 11,650 Total interest income 285,206 278,172 851,626 834,255 Interest expense: (3)(4) Short-term borrowings 3,802 3,473 10,271 11,217 Long-term debt 143,639 143,210 432,608 436,702 Subordinated debt 26,213 26,357 79,148 79,519 Total interest expense 173,654 173,040 522,027 527,438 Net interest income $ 111,552 $ 105,132 $ 329,599 $ 306,817 ____________________________ (1) Includes loan conversion fees, which are generally deferred and recognized in interest income over the period to maturity using the effective interest method. (2) Includes late payment fees, commitment fees and net amortization of deferred loan fees and loan origination costs. (3) Includes amortization of debt discounts and debt issuance costs, which are generally deferred and recognized as interest expense over the period to maturity using the effective interest method. Issuance costs related to dealer commercial paper, however, are recognized in interest expense immediately as incurred. |
Investment Securities - (Tables
Investment Securities - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Investments [Abstract] | |
Schedule of Debt Securities Trading, at Fair Value | The following table presents the composition of our investment debt securities portfolio and the fair value as of February 28, 2022 and May 31, 2021. Table 3.1: Investments in Debt Securities, at Fair Value (Dollars in thousands) February 28, 2022 May 31, 2021 Debt securities, at fair value: Certificates of deposit $ — $ 1,501 Commercial paper 13,969 12,365 Corporate debt securities 483,588 497,944 Commercial agency mortgage-backed securities (“MBS”) (1) 7,786 8,683 U.S. state and municipality debt securities 21,396 11,840 Foreign government debt securities 979 999 Other asset-backed securities (2) 37,708 42,843 Total debt securities trading, at fair value $ 565,426 $ 576,175 ____________________________ (1) Consists of securities backed by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”). (2) Consists primarily of securities backed by auto lease loans, equipment-backed loans, auto loans and credit card loans. |
Schedule of Equity Securities | The following table presents the composition of our equity security holdings and the fair value as of February 28, 2022 and May 31, 2021. Table 3.2: Investments in Equity Securities, at Fair Value (Dollars in thousands) February 28, 2022 May 31, 2021 Equity securities, at fair value: Farmer Mac—Series C non-cumulative preferred stock $ 25,750 $ 27,450 Farmer Mac—Class A common stock 9,608 7,652 Total equity securities, at fair value $ 35,358 $ 35,102 |
Loans - (Tables)
Loans - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Receivables [Abstract] | |
Schedule of Loans Outstanding to Members and Unadvanced Commitments by Loan Type and by Member Class | The following table presents loans to members, by member class and by loan type, as of February 28, 2022 and May 31, 2021. Table 4.1: Loans to Members by Member Class and Loan Type February 28, 2022 May 31, 2021 (Dollars in thousands) Amount % of Total Amount % of Total Member class: CFC: Distribution $ 23,225,751 79% $ 22,027,423 78% Power supply 4,992,073 17 5,154,312 18 Statewide and associate 102,652 — 106,121 — Total CFC 28,320,476 96 27,287,856 96 NCSC 730,147 2 706,868 3 RTFC 457,740 2 420,383 1 Total loans outstanding (1) 29,508,363 100 28,415,107 100 Deferred loan origination costs—CFC (2) 12,018 — 11,854 — Loans to members $ 29,520,381 100% $ 28,426,961 100% Loan type: Long-term loans: Fixed rate $ 26,452,342 90% $ 25,514,766 90% Variable rate 720,027 2 658,579 2 Total long-term loans 27,172,369 92 26,173,345 92 Lines of credit 2,335,994 8 2,241,762 8 Total loans outstanding (1) 29,508,363 100 28,415,107 100 Deferred loan origination costs—CFC (2) 12,018 — 11,854 — Loans to members $ 29,520,381 100% $ 28,426,961 100% ____________________________ (1) Represents the unpaid principal balance, net of charge-offs and recoveries, of loans as of the end of each period. (2) Deferred loan origination costs are recorded on the books of CFC. |
Schedule of Past Due Financing Receivables | The following table presents the payment status, by legal entity and member class, of loans outstanding as of February 28, 2022 and May 31, 2021. Table 4.2: Payment Status of Loans Outstanding February 28, 2022 (Dollars in thousands) Current 30-89 Days Past Due > 90 Days Total Total Loans Outstanding Nonaccrual Loans Member class: CFC: Distribution $ 23,225,751 $ — $ — $ — $ 23,225,751 $ — Power supply 4,906,524 — 85,549 85,549 4,992,073 207,254 Statewide and associate 102,652 — — — 102,652 — CFC total 28,234,927 — 85,549 85,549 28,320,476 207,254 NCSC 730,147 — — — 730,147 — RTFC 457,740 — — — 457,740 — Total loans outstanding $ 29,422,814 $ — $ 85,549 $ 85,549 $ 29,508,363 $ 207,254 Percentage of total loans 99.71% — % 0.29% 0.29% 100.00% 0.70% May 31, 2021 (Dollars in thousands) Current 30-89 Days Past Due > 90 Days Total Total Loans Outstanding Nonaccrual Loans Member class: CFC: Distribution $ 22,027,423 $ — $ — $ — $ 22,027,423 $ — Power supply 5,069,316 3,400 81,596 84,996 5,154,312 228,312 Statewide and associate 106,121 — — — 106,121 — CFC total 27,202,860 3,400 81,596 84,996 27,287,856 228,312 NCSC 706,868 — — — 706,868 — RTFC 420,383 — — — 420,383 9,185 Total loans outstanding $ 28,330,111 $ 3,400 $ 81,596 $ 84,996 $ 28,415,107 $ 237,497 Percentage of total loans 99.70% 0.01 % 0.29% 0.30% 100.00% 0.84% |
Schedule of Troubled Debt Restructured loans | The following table presents the outstanding balance of modified loans accounted for as TDRs in prior periods and the performance status, by legal entity and member class, of these loans as of February 28, 2022 and May 31, 2021. Table 4.3: Trouble Debt Restructurings February 28, 2022 May 31, 2021 (Dollars in thousands) Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding TDR loans: Member class: CFC—Distribution 1 $ 5,092 0.02% 1 $ 5,379 0.02% RTFC 1 4,217 0.01 1 4,592 0.02 Total TDR loans 2 $ 9,309 0.03% 2 $ 9,971 0.04% Performance status of TDR loans: Performing TDR loans 2 $ 9,309 0.03% 2 $ 9,971 0.04% Total TDR loans 2 $ 9,309 0.03% 2 $ 9,971 0.04% ____________________________ |
Schedule of Nonperforming Loans | The following table presents the outstanding balance of nonperforming loans, by legal entity and member class, as of February 28, 2022 and May 31, 2021. Loans classified as nonperforming are placed on nonaccrual status. Table 4.4: Nonperforming Loans February 28, 2022 May 31, 2021 (Dollars in thousands) Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Number of Borrowers Outstanding Amount (1) % of Total Loans Outstanding Nonperforming loans: Member class: CFC—Power supply (2) 2 $ 207,254 0.70% 2 $ 228,312 0.81% RTFC — — — 2 9,185 0.03 Total nonperforming loans 2 $ 207,254 0.70% 4 $ 237,497 0.84% ____________________________ (1) Represents the unpaid principal balance net of charge-offs and recoveries as of the end of each period. (2) In addition, we had less than $1 million letters of credit outstanding to Brazos as of May 31, 2021. |
Schedule of Loan Portfolio by Risk Rating Category and Member Class Based on Available Data | Table 4.5: Loans Outstanding by Borrower Risk Ratings and Origination Year February 28, 2022 Term Loans by Fiscal Year of Origination (Dollars in thousands) YTD Q3 2022 2021 2020 2019 2018 Prior Revolving Loans Total May 31, 2021 Pass CFC: Distribution $ 1,714,893 $ 1,715,341 $ 1,895,645 $ 1,201,281 $ 1,462,991 $ 13,521,337 $ 1,464,191 $ 22,975,679 $ 21,808,099 Power supply 329,172 562,604 191,205 416,879 246,684 2,680,286 329,600 4,756,430 4,517,408 Statewide and associate 3,431 2,311 19,467 3,385 — 21,023 38,594 88,211 90,261 CFC total 2,047,496 2,280,256 2,106,317 1,621,545 1,709,675 16,222,646 1,832,385 27,820,320 26,415,768 NCSC 14,251 40,152 234,522 4,147 43,140 243,347 150,588 730,147 706,868 RTFC 54,051 91,294 46,323 10,567 23,504 186,958 40,826 453,523 406,606 Total pass $ 2,115,798 $ 2,411,702 $ 2,387,162 $ 1,636,259 $ 1,776,319 $ 16,652,951 $ 2,023,799 $ 29,003,990 $ 27,529,242 Special mention CFC: Distribution $ — $ 4,917 $ — $ 5,126 $ 937 $ 12,446 $ 226,646 $ 250,072 $ 219,324 Power supply — — — — — 28,389 — 28,389 29,611 Statewide and associate — — — 5,000 3,892 5,549 — 14,441 15,860 CFC total — 4,917 — 10,126 4,829 46,384 226,646 292,902 264,795 RTFC — — — — — 4,217 — 4,217 4,592 Total special mention $ — $ 4,917 $ — $ 10,126 $ 4,829 $ 50,601 $ 226,646 $ 297,119 $ 269,387 Substandard CFC: Power supply $ — $ — $ — $ — $ — $ — $ — $ — $ 378,981 Total substandard $ — $ — $ — $ — $ — $ — $ — $ — $ 378,981 Doubtful CFC: Power supply $ — $ — $ — $ — $ — $ 121,705 $ 85,549 $ 207,254 $ 228,312 CFC total — — — — — 121,705 85,549 207,254 228,312 RTFC — — — — — — — — 9,185 Total doubtful $ — $ — $ — $ — $ — $ 121,705 $ 85,549 $ 207,254 $ 237,497 Total criticized loans $ — $ 4,917 $ — $ 10,126 $ 4,829 $ 172,306 $ 312,195 $ 504,373 $ 885,865 Total loans outstanding $ 2,115,798 $ 2,416,619 $ 2,387,162 $ 1,646,385 $ 1,781,148 $ 16,825,257 $ 2,335,994 $ 29,508,363 $ 28,415,107 |
Schedule of Unadvanced Commitments | The following table presents unadvanced loan commitments, by member class and by loan type, as of February 28, 2022 and May 31, 2021. Table 4.6: Unadvanced Commitments by Member Class and Loan Type (Dollars in thousands) February 28, 2022 May 31, 2021 Member class: CFC: Distribution $ 9,235,009 $ 9,387,070 Power supply 3,877,775 3,970,698 Statewide and associate 178,334 161,340 Total CFC 13,291,118 13,519,108 NCSC 547,100 551,125 RTFC 323,008 286,806 Total unadvanced commitments $ 14,161,226 $ 14,357,039 Loan type: (1) Long-term loans: Fixed rate $ — $ — Variable rate 5,230,253 5,771,813 Total long-term loans 5,230,253 5,771,813 Lines of credit 8,930,973 8,585,226 Total unadvanced commitments $ 14,161,226 $ 14,357,039 ____________________________ (1) The interest rate on unadvanced loan commitments is not set until an advance is made; therefore, all unadvanced long-term loan commitments are reported as variable rate. However, the borrower may select either a fixed or a variable rate when an advance is drawn under a loan commitment. |
Schedule of Available Balance and Maturities of Lines of Credit | The following table displays, by loan type, the available balance under unadvanced loan commitments as of February 28, 2022, and the related maturities in each fiscal year during the five-year period ended May 31, 2026, and thereafter. Table 4.7: Unadvanced Loan Commitments Available Notional Maturities of Unadvanced Loan Commitments (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter Line of credit loans $ 8,930,973 $ 347,506 $ 4,295,443 $ 1,166,547 $ 1,517,248 $ 413,289 $ 1,190,940 Long-term loans 5,230,253 40,921 693,487 1,477,311 802,059 1,059,431 1,157,044 Total $ 14,161,226 $ 388,427 $ 4,988,930 $ 2,643,858 $ 2,319,307 $ 1,472,720 $ 2,347,984 |
Schedule of Available Balance Under Committed Lines of Credit and the Related Maturities by Fiscal Year | The following table summarizes the available balance under unconditional committed lines of credit as of February 28, 2022, and the related maturity amounts in each fiscal year during the five-year period ending May 31, 2026, and thereafter. Table 4.8: Unconditional Committed Lines of Credit—Available Balance Available Notional Maturities of Unconditional Committed Lines of Credit (Dollars in thousands) 2022 2023 2024 2025 2026 Thereafter Committed lines of credit $ 3,192,262 $ — $ 400,287 $ 510,982 $ 1,152,337 $ 246,949 $ 881,707 |
Schedule of Loans Outstanding as Collateral Pledged to Secure the Entity's Collateral Trust Bonds, Clean Renewable Energy Bonds and Notes Payable to the Federal Agricultural Mortgage Corporation and the Amount of the Corresponding Debt Outstanding | Table 4.9 displays the borrowing amount under each of our secured borrowing agreements and the corresponding loans outstanding pledged as collateral as of February 28, 2022 and May 31, 2021. See “Note 6—Short-Term Borrowings” and “Note 7—Long-Term Debt” for information on our secured borrowings and other borrowings. Table 4.9: Pledged Loans (Dollars in thousands) February 28, 2022 May 31, 2021 Collateral trust bonds: 2007 indenture: Collateral trust bonds outstanding $ 7,522,711 $ 7,422,711 Pledged collateral: Distribution system mortgage notes pledged 8,673,974 8,400,293 RUS-guaranteed loans qualifying as permitted investments pledged 116,444 121,679 Total pledged collateral 8,790,418 8,521,972 1994 indenture: Collateral trust bonds outstanding $ 25,000 $ 30,000 Pledged collateral: Distribution system mortgage notes pledged 31,477 34,924 Guaranteed Underwriter Program: Notes payable outstanding $ 6,149,203 $ 6,269,303 Pledged collateral: Distribution and power supply system mortgage notes pledged 6,982,334 7,150,240 Farmer Mac: Notes payable outstanding $ 3,018,130 $ 2,977,909 Pledged collateral: Distribution and power supply system mortgage notes pledged 3,486,457 3,440,307 Clean Renewable Energy Bonds Series 2009A: Notes payable outstanding $ 2,755 $ 4,412 Pledged collateral: Distribution and power supply system mortgage notes pledged 3,612 5,316 Cash 2 394 Total pledged collateral 3,614 5,710 |
Allowance for Credit Losses - (
Allowance for Credit Losses - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses on Financing Receivables | The following tables summarize, by legal entity and member class, changes in the allowance for credit losses for our loan portfolio for the three and nine months ended February 28, 2022 and 2021. Table 5.1: Changes in Allowance for Credit Losses Three Months Ended February 28, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of November 30, 2021 $ 16,032 $ 65,467 $ 1,424 $ 82,923 $ 1,594 $ 1,618 $ 86,135 Provision (benefit) for credit losses 353 (12,989) (111) (12,747) 135 (137) (12,749) Balance as of February 28, 2022 $ 16,385 $ 52,478 $ 1,313 $ 70,176 $ 1,729 $ 1,481 $ 73,386 Three Months Ended February 28, 2021 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of November 30, 2020 $ 13,215 $ 39,781 $ 1,413 $ 54,409 $ 1,341 $ 3,239 $ 58,989 Provision for credit losses 2,022 27,381 32 29,435 316 3,272 33,023 Balance as of February 28, 2021 $ 15,237 $ 67,162 $ 1,445 $ 83,844 $ 1,657 $ 6,511 $ 92,012 Nine Months Ended February 28, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of May 31, 2021 $ 13,426 $ 64,646 $ 1,391 $ 79,463 $ 1,374 $ 4,695 $ 85,532 Provision (benefit) for credit losses 2,959 (12,168) (78) (9,287) 355 (3,214) (12,146) Balance as of February 28, 2022 $ 16,385 $ 52,478 $ 1,313 $ 70,176 $ 1,729 $ 1,481 $ 73,386 Nine Months Ended February 28, 2021 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Balance as of May 31, 2020 $ 8,002 $ 38,027 $ 1,409 $ 47,438 $ 806 $ 4,881 $ 53,125 Cumulative-effect adjustment from adoption of CECL accounting standard 3,586 2,034 25 5,645 (15) (1,730) 3,900 Balance as of June 1, 2020 11,588 40,061 1,434 53,083 791 3,151 57,025 Provision for credit losses 3,649 27,101 11 30,761 866 3,360 34,987 Balance as of February 28, 2021 $ 15,237 $ 67,162 $ 1,445 $ 83,844 $ 1,657 $ 6,511 $ 92,012 |
Schedule of Allowance for Credit Losses and Recorded Investment in Financing Receivables | The following tables present, by legal entity and member class, the components of our allowance for credit losses as of February 28, 2022 and May 31, 2021. Table 5.2: Allowance for Credit Losses Components February 28, 2022 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 16,385 $ 12,219 $ 1,313 $ 29,917 $ 1,729 $ 1,226 $ 32,872 Asset-specific allowance — 40,259 — 40,259 — 255 40,514 Total allowance for credit losses $ 16,385 $ 52,478 $ 1,313 $ 70,176 $ 1,729 $ 1,481 $ 73,386 Loans outstanding: (1) Collectively evaluated loans $ 23,220,659 $ 4,784,819 $ 102,652 $ 28,108,130 $ 730,147 $ 453,523 $ 29,291,800 Individually evaluated loans 5,092 207,254 — 212,346 — 4,217 216,563 Total loans outstanding $ 23,225,751 $ 4,992,073 $ 102,652 $ 28,320,476 $ 730,147 $ 457,740 $ 29,508,363 Allowance ratios: Collective allowance coverage ratio (2) 0.07% 0.26% 1.28% 0.11% 0.24% 0.27% 0.11% Asset-specific allowance coverage ratio (3) — 19.42 — 18.96 — 6.05 18.71 Total allowance coverage ratio (4) 0.07 1.05 1.28 0.25 0.24 0.32 0.25 May 31, 2021 (Dollars in thousands) CFC Distribution CFC Power Supply CFC Statewide & Associate CFC Total NCSC RTFC Total Allowance components: Collective allowance $ 13,426 $ 25,104 $ 1,391 $ 39,921 $ 1,374 $ 1,147 $ 42,442 Asset-specific allowance (5) — 39,542 — 39,542 — 3,548 43,090 Total allowance for credit losses $ 13,426 $ 64,646 $ 1,391 $ 79,463 $ 1,374 $ 4,695 $ 85,532 Loans outstanding: (1) Collectively evaluated loans $ 22,022,044 $ 4,926,000 $ 106,121 $ 27,054,165 $ 706,868 $ 406,606 $ 28,167,639 Individually evaluated loans 5,379 228,312 — 233,691 — 13,777 247,468 Total loans outstanding $ 22,027,423 $ 5,154,312 $ 106,121 $ 27,287,856 $ 706,868 $ 420,383 $ 28,415,107 Allowance ratios: Collective allowance coverage ratio (2) 0.06% 0.51% 1.31% 0.15% 0.19% 0.28% 0.15% Asset-specific allowance coverage ratio (3) — 17.32 — 16.92 — 25.75 17.41 Total allowance coverage ratio (4) 0.06 1.25 1.31 0.29 0.19 1.12 0.30 ____________________________ (1) Represents the unpaid principal amount of loans as of the end of each period. Excludes unamortized deferred loan origination costs of $12 million as of both February 28, 2022 and May 31, 2021. (2) Calculated based on the collective allowance component at period end divided by collectively evaluated loans outstanding at period end. (3) Calculated based on the asset-specific allowance component at period end divided by individually evaluated loans outstanding at period end. (4) Calculated based on the total allowance for credit losses at period end divided by total loans outstanding at period end. |
Short-Term Borrowings - (Tables
Short-Term Borrowings - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The following table provides comparative information on our short-term borrowings as of February 28, 2022 and May 31, 2021. Table 6.1: Short-Term Borrowings Sources February 28, 2022 May 31, 2021 (Dollars in thousands) Amount % of Total Debt Outstanding Amount % of Total Debt Outstanding Short-term borrowings: Commercial paper: Commercial paper dealers, net of discounts $ 1,105,200 4% $ 894,977 3% Commercial paper members, at par 1,154,393 4 1,124,607 4 Total commercial paper 2,259,593 8 2,019,584 7 Select notes to members 1,402,238 5 1,539,150 6 Daily liquidity fund notes to members 350,402 1 460,556 2 Medium-term notes to members 415,824 2 362,691 1 Securities sold under repurchase agreements — — 200,115 1 Total short-term borrowings $ 4,428,057 16% $ 4,582,096 17% |
Schedule of Line of Credit Facilities | The following table presents the amount available for access under our bank revolving line of credit agreements as of February 28, 2022. Table 6.2: Committed Bank Revolving Line of Credit Agreements Available Amounts February 28, 2022 (Dollars in millions) Total Commitment Letters of Credit Outstanding Available Amount Maturity Annual Facility Fee (1) Bank revolving agreements: 3-year agreement $ 1,245 $ — $ 1,245 November 28, 2024 7.5 bps 5-year agreement 1,355 3 1,352 November 28, 2025 10 bps Total $ 2,600 $ 3 $ 2,597 ____________________________ (1) Facility fee determined by CFC’s senior unsecured credit ratings based on the pricing schedules put in place at the inception of the related agreement. |
Long-Term Debt - (Tables)
Long-Term Debt - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Outstanding | The following table displays, by debt product type, long-term debt outstanding as of February 28, 2022 and May 31, 2021. Long-term debt outstanding totaled $21,522 million and accounted for 76% of total debt outstanding as of February 28, 2022, compared with $20,603 million and 75% of total debt outstanding as of May 31, 2021. Table 7.1: Long-Term Debt by Debt Product Type (Dollars in thousands) February 28, 2022 May 31, 2021 Secured long-term debt: Collateral trust bonds $ 7,547,711 $ 7,452,711 Unamortized discount (219,775) (227,046) Debt issuance costs (33,787) (33,721) Total collateral trust bonds 7,294,149 7,191,944 Guaranteed Underwriter Program notes payable 6,149,203 6,269,303 Farmer Mac notes payable 3,018,130 2,977,909 Other secured notes payable 2,755 4,412 Debt issuance costs (11) (22) Total other secured notes payable 2,744 4,390 Total secured notes payable 9,170,077 9,251,602 Total secured long-term debt 16,464,226 16,443,546 Unsecured long-term debt: Medium-term notes sold through dealers 4,891,283 3,943,728 Medium-term notes sold to members 186,104 232,346 Medium term notes sold through dealers and to members 5,077,387 4,176,074 Unamortized discount (2,155) (2,307) Debt issuance costs (19,687) (18,036) Total unsecured medium-term notes 5,055,545 4,155,731 Unsecured notes payable 1,979 3,886 Unamortized discount (14) (35) Debt issuance costs (2) (5) Total unsecured notes payable 1,963 3,846 Total unsecured long-term debt 5,057,508 4,159,577 Total long-term debt $ 21,521,734 $ 20,603,123 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts and Weighted Average Rates Paid and Received | The following table shows, by derivative instrument type, the notional amount, the weighted-average rate paid and the weighted-average interest rate received for our interest rate swaps as of February 28, 2022 and May 31, 2021. For the substantial majority of interest rate swap agreements, a LIBOR index is currently used as the basis for determining variable interest payment amounts each period. Table 9.1: Derivative Notional Amount and Weighted Average Rates February 28, 2022 May 31, 2021 (Dollars in thousands) Notional Weighted- Weighted- Notional Weighted- Weighted- Pay-fixed swaps $ 6,023,392 2.61 % 0.34 % $ 6,579,516 2.65 % 0.20 % Receive-fixed swaps 2,049,000 1.00 2.86 2,399,000 0.92 2.80 Total interest rate swaps $ 8,072,392 2.20 0.98 $ 8,978,516 2.19 0.89 |
Schedule of Fair Values and Notional Amounts of Outstanding Derivatives | The following table displays the fair value of the derivative assets and derivative liabilities, by derivatives type, recorded on our consolidated balance sheets and the related outstanding notional amount as of February 28, 2022 and May 31, 2021. Table 9.2: Derivative Assets and Liabilities at Fair Value February 28, 2022 May 31, 2021 (Dollars in thousands) Fair Value Notional Amount Fair Value Notional Amount Derivative assets: Interest rate swaps $ 50,901 $ 2,449,726 $ 121,259 $ 2,560,618 Total derivative assets $ 50,901 $ 2,449,726 $ 121,259 $ 2,560,618 Derivative liabilities: Interest rate swaps $ 391,988 $ 5,622,666 $ 584,989 $ 6,417,898 Total derivative liabilities $ 391,988 $ 5,622,666 $ 584,989 $ 6,417,898 |
Schedule of Offsetting Assets | The following table presents the gross fair value of derivative assets and liabilities reported on our consolidated balance sheets as of February 28, 2022 and May 31, 2021, and provides information on the impact of netting provisions under our master swap agreements and collateral pledged, if any. Table 9.3: Derivative Gross and Net Amounts February 28, 2022 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 50,901 $ — $ 50,901 $ 50,901 $ — $ — Derivative liabilities: Interest rate swaps 391,988 — 391,988 50,901 — 341,087 May 31, 2021 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 121,259 $ — $ 121,259 $ 121,259 $ — $ — Derivative liabilities: Interest rate swaps 584,989 — 584,989 121,259 — 463,730 |
Schedule of Offsetting Liabilities | The following table presents the gross fair value of derivative assets and liabilities reported on our consolidated balance sheets as of February 28, 2022 and May 31, 2021, and provides information on the impact of netting provisions under our master swap agreements and collateral pledged, if any. Table 9.3: Derivative Gross and Net Amounts February 28, 2022 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 50,901 $ — $ 50,901 $ 50,901 $ — $ — Derivative liabilities: Interest rate swaps 391,988 — 391,988 50,901 — 341,087 May 31, 2021 Gross Amount Gross Amount Net Amount of Assets/ Liabilities Gross Amount (Dollars in thousands) Financial Cash Net Derivative assets: Interest rate swaps $ 121,259 $ — $ 121,259 $ 121,259 $ — $ — Derivative liabilities: Interest rate swaps 584,989 — 584,989 121,259 — 463,730 |
Summary of Gains and Losses Recorded on the Consolidated Statements of Operations for the Entity's Interest Rate Swaps | The following table presents the components of the derivative gains (losses) reported in our consolidated statements of operations for the three and nine months ended February 28, 2022 and 2021. Derivative cash settlements interest expense represents the net periodic contractual interest amount for our interest-rate swaps during the reporting period. Derivative forward value gains (losses) represent the change in fair value of our interest rate swaps during the reporting period due to changes in expected future interest rates over the remaining life of our derivative contracts. We classify the derivative cash settlement amounts for the net periodic contractual interest expense on our interest rate swaps as an operating activity in our consolidated statements of cash flows. Table 9.4: Derivative Gains (Losses) Three Months Ended February 28, Nine Months Ended February 28, (Dollars in thousands) 2022 2021 2022 2021 Derivative gains (losses) attributable to: Derivative cash settlements interest expense $ (26,212) $ (29,735) $ (79,727) $ (86,507) Derivative forward value gains 195,492 359,931 122,930 558,266 Derivative gains $ 169,280 $ 330,196 $ 43,203 $ 471,759 |
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 February 28, 2022, and the payments that would be required if the contracts were terminated as of that date because of a downgrade of our unsecured credit ratings or the counterparty’s unsecured credit ratings below A3/A-, below Baa1/BBB+, to or below Baa2/BBB, or to or below Ba2/BB+ by Moody’s or S&P, respectively. In calculating the payment amounts that would be required upon termination of the derivative contracts, we assume that amounts for each counterparty would be netted in accordance with the provisions of the master netting agreements with the counterparty. The net payment amounts are based on the fair value of the underlying derivative instrument, excluding the credit risk valuation adjustment, plus any unpaid accrued interest amounts. Table 9.5: Derivative Credit Rating Trigger Exposure (Dollars in thousands) Notional Payable Due from CFC Receivable Net Payable Impact of rating downgrade trigger: Falls below A3/A- (1) $ 36,110 $ (5,726) $ — $ (5,726) Falls below Baa1/BBB+ 5,524,597 (231,423) — (231,423) Falls to or below Baa2/BBB (2) 294,404 (9,903) — (9,903) Total $ 5,855,111 $ (247,052) $ — $ (247,052) ____________________________ (1) Rating trigger for CFC falls below A3/A-, while rating trigger for counterparty falls below Baa1/BBB+ by Moody’s or S&P, respectively. |
Equity - (Tables)
Equity - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents, by component, changes in AOCI for the three and nine months ended February 28, 2022 and 2021 and the balance of each component as of the end of each respective period. Table 10.1: Changes in Accumulated Other Comprehensive Income (Loss) Three Months Ended February 28, 2022 2021 (Dollars in thousands) Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Beginning balance $ 5,506 $ (1,600) $ 3,906 $ 1,918 $ (3,664) $ (1,746) Changes in unrealized gains — — — — — — Realized (gains) losses reclassified to earnings (192) 72 (120) (101) 188 87 Ending balance $ 5,314 $ (1,528) $ 3,786 $ 1,817 $ (3,476) $ (1,659) Nine Months Ended February 28, 2022 2021 (Dollars in thousands) Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Unrealized Gains on Derivative Hedges (1) Unrealized Losses on Defined Benefit Plans (2) Total Beginning balance $ 1,718 $ (1,743) $ (25) $ 2,130 $ (4,040) $ (1,910) Changes in unrealized gains 4,028 — 4,028 — — — Realized (gains) losses reclassified to earnings (432) 215 (217) (313) 564 251 Ending balance $ 5,314 $ (1,528) $ 3,786 $ 1,817 $ (3,476) $ (1,659) ____________________________ (1) Of the derivative gains reclassified to earnings, a portion is reclassified as a component of the derivative gains (losses) line item and the remainder is reclassified as a component of the interest expense line item on our consolidated statements of operations. (2) Reclassified to earnings as component of the other non-interest expense line item presented on our consolidated statements of operations. |
Guarantees - (Tables)
Guarantees - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Guarantees [Abstract] | |
Schedule of Total Guarantees by Type of Guarantee and Member Class | The following table displays the notional amount of our outstanding guarantee obligations, by guarantee type and by member class, as of February 28, 2022 and May 31, 2021. Table 11.1: Guarantees Outstanding by Type and Member Class (Dollars in thousands) February 28, 2022 May 31, 2021 Guarantee type: Long-term tax-exempt bonds (1) $ 123,775 $ 145,025 Letters of credit (2) 425,917 389,735 Other guarantees 157,612 154,320 Total $ 707,304 $ 689,080 Member class: CFC: Distribution $ 297,577 $ 251,023 Power supply 372,048 415,984 Statewide and associate (3) 12,237 5,523 CFC total 681,862 672,530 NCSC 25,442 16,550 Total $ 707,304 $ 689,080 ____________________________ (1) Represents the outstanding principal amount of long-term variable-rate guaranteed bonds. (2) Reflects our maximum potential exposure for letters of credit. (3) Includes CFC guarantees to NCSC and RTFC memb ers totaling $10 million an d $3 million as of February 28, 2022 and May 31, 2021, respectively. |
Fair Value Measurement - (Table
Fair Value Measurement - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value by Balance Sheet Grouping | The following table presents the carrying value and estimated fair value of all of our financial instruments, including those carried at amortized cost, as of February 28, 2022 and May 31, 2021. The table also displays the classification level within the fair value hierarchy based on the degree of observability of the inputs used in the valuation technique for estimating fair value. Table 12.1: Fair Value of Financial Instruments February 28, 2022 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 104,248 $ 104,248 $ 104,248 $ — $ — Restricted cash 6,530 6,530 6,530 — — Equity securities, at fair value 35,358 35,358 35,358 — — Debt securities trading, at fair value 565,426 565,426 — 565,426 — Deferred compensation investments 7,084 7,084 7,084 — — Loans to members, net 29,446,995 29,935,210 — — 29,935,210 Accrued interest receivable 110,484 110,484 — 110,484 — Derivative assets 50,901 50,901 — 50,901 — Total financial assets $ 30,327,026 $ 30,815,241 $ 153,220 $ 726,811 $ 29,935,210 Liabilities: Short-term borrowings $ 4,428,057 $ 4,426,727 $ — $ 4,426,727 $ — Long-term debt 21,521,734 21,850,664 — 12,922,319 8,928,345 Accrued interest payable 171,406 171,406 — 171,406 — Guarantee liability 12,758 13,402 — — 13,402 Derivative liabilities 391,988 391,988 — 391,988 — Subordinated deferrable debt 986,466 1,008,253 253,600 754,653 — Members’ subordinated certificates 1,233,836 1,233,836 — — 1,233,836 Total financial liabilities $ 28,746,245 $ 29,096,276 $ 253,600 $ 18,667,093 $ 10,175,583 May 31, 2021 Fair Value Measurement Level (Dollars in thousands) Carrying Value Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 295,063 $ 295,063 $ 295,063 $ — $ — Restricted cash 8,298 8,298 8,298 — — Equity securities, at fair value 35,102 35,102 35,102 — — Debt securities trading, at fair value 576,175 576,175 — 576,175 — Deferred compensation investments 7,222 7,222 7,222 — — Loans to members, net 28,341,429 29,967,692 — — 29,967,692 Accrued interest receivable 107,856 107,856 — 107,856 — Derivative assets 121,259 121,259 — 121,259 — Total financial assets $ 29,492,404 $ 31,118,667 $ 345,685 $ 805,290 $ 29,967,692 Liabilities: Short-term borrowings $ 4,582,096 $ 4,582,329 $ — $ 4,582,329 $ — Long-term debt 20,603,123 21,799,736 — 12,476,073 9,323,663 Accrued interest payable 123,672 123,672 — 123,672 — Guarantee liability 10,041 10,841 — — 10,841 Derivative liabilities 584,989 584,989 — 584,989 — Subordinated deferrable debt 986,315 1,062,748 265,200 797,548 — Members’ subordinated certificates 1,254,660 1,254,660 — — 1,254,660 Total financial liabilities $ 28,144,896 $ 29,418,975 $ 265,200 $ 18,564,611 $ 10,589,164 |
Schedule of the Entity's Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | The following table presents the carrying value and fair value of financial instruments reported in our consolidated financial statements at fair value on a recurring basis as of February 28, 2022 and May 31, 2021, and the classification of the valuation technique within the fair value hierarchy. We did no t have any assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs during the three and nine months ended February 28, 2022 and 2021. Table 12.2: Assets and Liabilities Measured at Fair Value on a Recurring Basis February 28, 2022 May 31, 2021 (Dollars in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Assets: Equity securities, at fair value $ 35,358 $ — $ 35,358 $ 35,102 $ — $ 35,102 Debt securities trading, at fair value — 565,426 565,426 — 576,175 576,175 Deferred compensation investments 7,084 — 7,084 7,222 — 7,222 Derivative assets — 50,901 50,901 — 121,259 121,259 Liabilities: Derivative liabilities $ — $ 391,988 $ 391,988 $ — $ 584,989 $ 584,989 |
Variable Interest Entities - (T
Variable Interest Entities - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table provides information on incremental consolidated assets and liabilities of VIEs included in CFC’s consolidated financial statements, after intercompany eliminations, as of February 28, 2022 and May 31, 2021.Table 13.1: Consolidated Assets and Liabilities of Variable Interest Entities (Dollars in thousands) February 28, 2022 May 31, 2021 Assets: Loans outstanding $ 1,187,887 $ 1,127,251 Other assets 9,094 11,343 Total assets $ 1,196,981 $ 1,138,594 Liabilities: Total liabilities $ 25,221 $ 30,187 |
Schedule of Variable Interest Entities, Credit Commitments | The following table provides information on CFC’s credit commitments to NCSC and RTFC and potential exposure to loss under these commitments as of February 28, 2022 and May 31, 2021. Table 13.2: CFC Exposure Under Credit Commitments to NCSC and RTFC (Dollars in thousands) February 28, 2022 May 31, 2021 CFC credit commitments to NCSC and RTFC: Total CFC credit commitments $ 5,500,000 $ 5,500,000 Outstanding commitments: Borrowings payable to CFC (1) 1,166,731 1,107,185 Credit enhancements: CFC third-party guarantees 25,442 16,550 Other credit enhancements 6,273 8,386 Total credit enhancements (2) 31,715 24,936 Total outstanding commitments 1,198,446 1,132,121 CFC credit commitments available (3) $ 4,301,554 $ 4,367,879 ____________________________ (1) Intercompany borrowings payable by NCSC and RTFC to CFC are eliminated in consolidation. (2) Excludes interest due on these instruments. (3) Represents total CFC credit commitments less outstanding commitments as of each period end. |
Business Segments - (Tables)
Business Segments - (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Presentation for the Consolidated Statements of Operations and Consolidated Balance Sheets | The following tables display segment results of operations for the three and nine months ended February 28, 2022 and 2021, assets attributable to each segment as of February 28, 2022 and February 28, 2021 and a reconciliation of total segment amounts to our consolidated total amounts. Table 14.1: Business Segment Information Three Months Ended February 28, 2022 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 283,162 $ 10,817 $ 293,979 $ — $ (8,773) $ 285,206 Interest expense (173,654) (8,773) (182,427) — 8,773 (173,654) Derivative cash settlements interest expense (25,802) (410) (26,212) 26,212 — — Interest expense (199,456) (9,183) (208,639) 26,212 8,773 (173,654) Net interest income 83,706 1,634 85,340 26,212 — 111,552 Benefit for credit losses 12,749 2 12,751 — (2) 12,749 Net interest income after benefit for credit losses 96,455 1,636 98,091 26,212 (2) 124,301 Non-interest income: Fee and other income 5,590 685 6,275 — (2,005) 4,270 Derivative gains: Derivative cash settlements interest expense — — — (26,212) — (26,212) Derivative forward value gains — — — 195,492 — 195,492 Derivative gains — — — 169,280 — 169,280 Investment securities losses (11,621) — (11,621) — — (11,621) Total non-interest income (6,031) 685 (5,346) 169,280 (2,005) 161,929 Non-interest expense: General and administrative expenses (22,690) (1,984) (24,674) — 1,595 (23,079) Losses on early extinguishment of debt (578) — (578) — — (578) Other non-interest expense (265) (412) (677) — 412 (265) Total non-interest expense (23,533) (2,396) (25,929) — 2,007 (23,922) Income (loss) before income taxes 66,891 (75) 66,816 195,492 — 262,308 Income tax provision — (343) (343) — — (343) Net income (loss) $ 66,891 $ (418) $ 66,473 $ 195,492 $ — $ 261,965 Three Months Ended February 28, 2021 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 276,153 $ 10,901 $ 287,054 $ — $ (8,882) $ 278,172 Interest expense (173,039) (8,883) (181,922) — 8,882 (173,040) Derivative cash settlements interest expense (29,307) (428) (29,735) 29,735 — — Interest expense (202,346) (9,311) (211,657) 29,735 8,882 (173,040) Net interest income 73,807 1,590 75,397 29,735 — 105,132 Provision for credit losses (33,023) (3,588) (36,611) — 3,588 (33,023) Net interest income after provision for credit losses 40,784 (1,998) 38,786 29,735 3,588 72,109 Non-interest income: Fee and other income 5,059 4,308 9,367 — (5,548) 3,819 Derivative gains: Derivative cash settlements interest expense — — — (29,735) — (29,735) Derivative forward value gains — — — 359,931 — 359,931 Derivative gains — — — 330,196 — 330,196 Investment securities losses (2,807) — (2,807) — — (2,807) Total non-interest income 2,252 4,308 6,560 330,196 (5,548) 331,208 Non-interest expense: General and administrative expenses (23,174) (1,909) (25,083) — 1,521 (23,562) Other non-interest expense (301) (439) (740) — 439 (301) Total non-interest expense (23,475) (2,348) (25,823) — 1,960 (23,863) Income (loss) before income taxes 19,561 (38) 19,523 359,931 — 379,454 Income tax provision — (507) (507) — — (507) Net income (loss) $ 19,561 $ (545) $ 19,016 $ 359,931 $ — $ 378,947 Nine Months Ended February 28, 2022 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 845,600 $ 32,243 $ 877,843 $ — $ (26,217) $ 851,626 Interest expense (522,027) (26,217) (548,244) — 26,217 (522,027) Derivative cash settlements interest expense (78,480) (1,247) (79,727) 79,727 — — Interest expense (600,507) (27,464) (627,971) 79,727 26,217 (522,027) Net interest income 245,093 4,779 249,872 79,727 — 329,599 Benefit for credit losses 12,146 2,859 15,005 — (2,859) 12,146 Net interest income after benefit for credit losses 257,239 7,638 264,877 79,727 (2,859) 341,745 Non-interest income: Fee and other income 17,006 (243) 16,763 — (3,721) 13,042 Derivative gains: Derivative cash settlements interest expense — — — (79,727) — (79,727) Derivative forward value gains — — — 122,930 — 122,930 Derivative gains — — — 43,203 — 43,203 Investment securities losses (18,190) — (18,190) — — (18,190) Total non-interest income (1,184) (243) (1,427) 43,203 (3,721) 38,055 Non-interest expense: General and administrative expenses (69,060) (6,110) (75,170) — 4,786 (70,384) Losses on early extinguishment of debt (696) — (696) — — (696) Other non-interest expense (834) (1,794) (2,628) — 1,794 (834) Total non-interest expense (70,590) (7,904) (78,494) — 6,580 (71,914) Income (loss) before income taxes 185,465 (509) 184,956 122,930 — 307,886 Income tax provision — (524) (524) — — (524) Net income (loss) $ 185,465 $ (1,033) $ 184,432 $ 122,930 $ — $ 307,362 February 28, 2022 CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 29,487,207 $ 1,187,887 $ 30,675,094 $ — $ (1,166,731) $ 29,508,363 Deferred loan origination costs 12,018 — 12,018 — — 12,018 Loans to members 29,499,225 1,187,887 30,687,112 — (1,166,731) 29,520,381 Less: Allowance for credit losses (73,386) (3,210) (76,596) — 3,210 (73,386) Loans to members, net 29,425,839 1,184,677 30,610,516 — (1,163,521) 29,446,995 Other assets 1,027,433 96,117 1,123,550 — (87,023) 1,036,527 Total assets $ 30,453,272 $ 1,280,794 $ 31,734,066 $ — $ (1,250,544) $ 30,483,522 Nine Months Ended February 28, 2021 (Dollars in thousands) CFC NCSC and RTFC Segments Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Results of operations: Interest income $ 828,222 $ 32,917 $ 861,139 $ — $ (26,884) $ 834,255 Interest expense (527,437) (26,885) (554,322) — 26,884 (527,438) Derivative cash settlements interest expense (85,240) (1,267) (86,507) 86,507 — — Interest expense (612,677) (28,152) (640,829) 86,507 26,884 (527,438) Net interest income 215,545 4,765 220,310 86,507 — 306,817 Provision for credit losses (34,987) (2,481) (37,468) — 2,481 (34,987) Net interest income after provision for credit losses 180,558 2,284 182,842 86,507 2,481 271,830 Non-interest income: Fee and other income 17,347 4,478 21,825 — (8,158) 13,667 Derivative gains: Derivative cash settlements interest expense — — — (86,507) — (86,507) Derivative forward value gains — — — 558,266 — 558,266 Derivative gains — — — 471,759 — 471,759 Investment securities gains 491 — 491 — — 491 Total non-interest income 17,838 4,478 22,316 471,759 (8,158) 485,917 Non-interest expense: General and administrative expenses (69,124) (5,944) (75,068) — 4,707 (70,361) Losses on early extinguishment of debt (1,455) — (1,455) — — (1,455) Other non-interest expense (956) (970) (1,926) — 970 (956) Total non-interest expense (71,535) (6,914) (78,449) — 5,677 (72,772) Income (loss) before income taxes 126,861 (152) 126,709 558,266 — 684,975 Income tax provision — (920) (920) — — (920) Net income (loss) $ 126,861 $ (1,072) $ 125,789 $ 558,266 $ — $ 684,055 February 28, 2021 CFC NCSC and RTFC Segment Total Reclasses and Adjustments (1) Intersegment Eliminations (2) Consolidated Total Assets: Total loans outstanding $ 28,294,236 $ 1,152,844 $ 29,447,080 $ — $ (1,131,409) $ 28,315,671 Deferred loan origination costs 11,810 — 11,810 — — 11,810 Loans to members 28,306,046 1,152,844 29,458,890 — (1,131,409) 28,327,481 Less: Allowance for credit losses (92,012) (8,168) (100,180) — 8,168 (92,012) Loans to members, net 28,214,034 1,144,676 29,358,710 — (1,123,241) 28,235,469 Other assets 1,169,521 108,022 1,277,543 — (98,024) 1,179,519 Total assets $ 29,383,555 $ 1,252,698 $ 30,636,253 $ — $ (1,221,265) $ 29,414,988 ____________________________ (1) Consists of (i) the reclassification of net periodic derivative settlement interest expense amounts, which we report as a component of interest expense for business segment reporting purposes but is included in derivatives gains (losses) in our consolidated total results and (ii) derivative forward value gains and losses, which we exclude from our business segment results but is included in derivatives gains (losses) in our consolidated total results. (2) Consists of intercompany borrowings payable by NCSC and RTFC to CFC and the interest related to those borrowings, management fees paid by NCSC and RTFC to CFC and other intercompany amounts, all of which are eliminated in consolidation. |
Interest Income and Interest _3
Interest Income and Interest Expense - Schedule of Interest Income and Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Interest income: | ||||
Investment securities | $ 3,845 | $ 3,907 | $ 12,078 | $ 11,650 |
Interest income | 285,206 | 278,172 | 851,626 | 834,255 |
Interest expense: | ||||
Short-term borrowings | 3,802 | 3,473 | 10,271 | 11,217 |
Total interest expense | 173,654 | 173,040 | 522,027 | 527,438 |
Net interest income | 111,552 | 105,132 | 329,599 | 306,817 |
Loans receivable | ||||
Interest income: | ||||
Loans | 281,361 | 274,265 | 839,548 | 822,605 |
Long-term debt | ||||
Interest expense: | ||||
Long-term debt and subordinated debt | 143,639 | 143,210 | 432,608 | 436,702 |
Subordinated debt | ||||
Interest expense: | ||||
Long-term debt and subordinated debt | $ 26,213 | $ 26,357 | $ 79,148 | $ 79,519 |
Interest Income and Interest _4
Interest Income and Interest Expense - Additional Information (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Banking and Thrift, Interest [Abstract] | ||
Deferred income | $ 45,752 | $ 51,198 |
Deferred loan conversion fees | $ 39,000 | $ 45,000 |
Investment Securities - Debt Se
Investment Securities - Debt Securities Trading, at Fair Value (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | $ 565,426 | $ 576,175 |
Certificates of deposit | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 0 | 1,501 |
Commercial paper | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 13,969 | 12,365 |
Corporate debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 483,588 | 497,944 |
Commercial agency mortgage-backed securities (“MBS”) | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 7,786 | 8,683 |
U.S. state and municipality debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 21,396 | 11,840 |
Foreign government debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | 979 | 999 |
Other asset-backed-securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Debt securities trading, at fair value | $ 37,708 | $ 42,843 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | May 31, 2021 | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Unrealized loss | $ (9,000) | $ (3,000) | $ (18,000) | $ (2,000) | |
Proceeds for sale of debt investment securities | 3,000 | 0 | 5,000 | 6,000 | |
Realized gains (less than) | 1,000 | 1,000 | |||
Realized losses (less than) | 1,000 | ||||
Short-term borrowings | 4,428,057 | 4,428,057 | $ 4,582,096 | ||
Debt securities trading, at fair value, pledged as collateral | 0 | 0 | 210,894 | ||
Unrealized loss | (2,000) | ||||
Unrealized gain | $ 1,000 | 1,000 | $ 2,000 | ||
Securities sold under agreements to repurchase | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Short-term borrowings | $ 0 | $ 0 | $ 200,115 |
Investment Securities - Equity
Investment Securities - Equity Securities (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at fair value | $ 35,358 | $ 35,102 |
Noncumulative Preferred Stock | Series C Preferred Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at fair value | 25,750 | 27,450 |
Common Stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities, at fair value | $ 9,608 | $ 7,652 |
Loans - Outstanding Principal B
Loans - Outstanding Principal Balance and Unadvanced Commitments (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 | Feb. 28, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 29,508,363 | $ 28,415,107 | $ 28,315,671 |
Deferred loan origination costs | 12,018 | $ 11,810 | |
Loans to members | $ 29,520,381 | $ 28,426,961 | |
% of total loans outstanding | 100.00% | 100.00% | |
Fixed rate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 26,452,342 | $ 25,514,766 | |
% of total loans outstanding | 90.00% | 90.00% | |
Long-term variable rate loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 720,027 | $ 658,579 | |
% of total loans outstanding | 2.00% | 2.00% | |
Long-term loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 27,172,369 | $ 26,173,345 | |
% of total loans outstanding | 92.00% | 92.00% | |
Lines of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 2,335,994 | $ 2,241,762 | |
% of total loans outstanding | 8.00% | 8.00% | |
Deferred loan origination costs—CFC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deferred loan origination costs | $ 12,018 | $ 11,854 | |
% of total loans outstanding | 0.00% | 0.00% | |
Parent Company | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 28,320,476 | $ 27,287,856 | |
Deferred loan origination costs | $ 12,000 | $ 12,000 | |
% of total loans outstanding | 96.00% | 96.00% | |
Parent Company | Distribution | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 23,225,751 | $ 22,027,423 | |
% of total loans outstanding | 79.00% | 78.00% | |
Parent Company | Power supply | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 4,992,073 | $ 5,154,312 | |
% of total loans outstanding | 17.00% | 18.00% | |
Parent Company | Statewide and associate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 102,652 | $ 106,121 | |
% of total loans outstanding | 0.00% | 0.00% | |
NCSC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 730,147 | $ 706,868 | |
% of total loans outstanding | 2.00% | 3.00% | |
RTFC | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Amount | $ 457,740 | $ 420,383 | |
% of total loans outstanding | 2.00% | 1.00% |
Loans - Additional Information
Loans - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 57 Months Ended | 105 Months Ended | ||
Nov. 30, 2021USD ($)borrower | Aug. 31, 2021borrower | Feb. 28, 2022USD ($)loanborrowerstatepower_supply_systemdistribution_system | Feb. 28, 2021USD ($) | May 31, 2021USD ($)loanborrowerpower_supply_systemdistribution_systemstate | Feb. 28, 2022USD ($)loanborrowerpower_supply_systemdistribution_system | Feb. 28, 2022USD ($)loanborrowerpower_supply_systemdistribution_system | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Proceeds from sale of loans and leases held-for-investment | $ 64,000,000 | $ 126,000,000 | |||||
Allowance for credit losses for accrued interest receivable | 96,000,000 | $ 93,000,000 | $ 96,000,000 | $ 96,000,000 | |||
Outstanding Amount | $ 29,508,363,000 | 28,315,671,000 | $ 28,415,107,000 | $ 29,508,363,000 | $ 29,508,363,000 | ||
Number of borrowers | borrower | 885 | 892 | 885 | 885 | |||
Number of states in which electric and telecommunications borrowers are located | state | 49 | 49 | |||||
Number of loans outstanding | loan | 16,572 | 16,572 | 16,572 | ||||
Increase in nonaccrual loans | (30,000,000) | ||||||
Nonaccrual Loans | $ 207,254,000 | $ 237,497,000 | $ 207,254,000 | $ 207,254,000 | |||
Financing receivable, troubled debt restructuring, commitment to lend | $ 0 | $ 0 | $ 0 | $ 0 | |||
% of total loans outstanding | 100.00% | 100.00% | 100.00% | 100.00% | |||
Financing receivable, allowance for credit loss, writeoff | $ 0 | $ 0 | |||||
Term of loans | 35 years | ||||||
Loans originated prior to 2018 | $ 16,825,257,000 | $ 16,825,257,000 | $ 16,825,257,000 | ||||
Percentage of loans originated prior to 2018 | 57.00% | 57.00% | 57.00% | ||||
Financing receivable, before allowance for credit loss, average remaining maturity | 18 years | ||||||
Number of loans outstanding per borrower | loan | 19 | 19 | 19 | ||||
Line of credit commitments as percentage of unadvanced loan commitment | 63.00% | 63.00% | 63.00% | ||||
Long-term loan commitments as percentage of unadvanced loan commitment | 37.00% | 37.00% | 37.00% | ||||
Total Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 85,549,000 | $ 84,996,000 | $ 85,549,000 | $ 85,549,000 | |||
Nonperforming TDR loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, troubled debt restructuring | 0 | 0 | 0 | 0 | |||
Nonperforming financial instruments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 207,254,000 | $ 237,497,000 | $ 207,254,000 | $ 207,254,000 | |||
Number of borrowers | borrower | 2 | 4 | 2 | 2 | |||
% of total loans outstanding | 0.70% | 0.84% | 0.70% | 0.70% | |||
Number of borrowers, nonperforming loans | borrower | 4 | 2 | |||||
Nonperforming financial instruments | RTFC Borrower One | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Increase (decrease) in finance receivables | $ (9,000,000) | ||||||
Nonperforming financial instruments | RTFC Borrower Two | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Increase (decrease) in finance receivables | $ (9,000,000) | ||||||
Criticized | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 504,373,000 | $ 885,865,000 | $ 504,373,000 | $ 504,373,000 | |||
% of total loans outstanding | 2.00% | 3.00% | 2.00% | 2.00% | |||
Loans originated prior to 2018 | $ 172,306,000 | $ 172,306,000 | $ 172,306,000 | ||||
Special mention | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 297,119,000 | $ 269,387,000 | 297,119,000 | 297,119,000 | |||
Loans originated prior to 2018 | 50,601,000 | 50,601,000 | 50,601,000 | ||||
Doubtful | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 207,254,000 | 237,497,000 | 207,254,000 | 207,254,000 | |||
Loans originated prior to 2018 | 121,705,000 | 121,705,000 | 121,705,000 | ||||
Substandard | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 0 | 378,981,000 | 0 | 0 | |||
Loans originated prior to 2018 | 0 | 0 | 0 | ||||
Parent Company | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 28,320,476,000 | 27,287,856,000 | 28,320,476,000 | 28,320,476,000 | |||
Nonaccrual Loans | $ 207,254,000 | $ 228,312,000 | $ 207,254,000 | $ 207,254,000 | |||
% of total loans outstanding | 96.00% | 96.00% | 96.00% | 96.00% | |||
Parent Company | Total Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 85,549,000 | $ 84,996,000 | $ 85,549,000 | $ 85,549,000 | |||
Parent Company | Brazos electric power cooperative | Total Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of loans outstanding | loan | 1 | 1 | 1 | 1 | |||
Parent Company | Special mention | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 292,902,000 | $ 264,795,000 | $ 292,902,000 | $ 292,902,000 | |||
Loans originated prior to 2018 | 46,384,000 | 46,384,000 | 46,384,000 | ||||
Parent Company | Doubtful | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 207,254,000 | 228,312,000 | 207,254,000 | 207,254,000 | |||
Loans originated prior to 2018 | 121,705,000 | 121,705,000 | 121,705,000 | ||||
Parent Company | Substandard | Rayburn country electric cooperative | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 207,000,000 | 379,000,000 | 207,000,000 | 207,000,000 | |||
RTFC | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 457,740,000 | 420,383,000 | 457,740,000 | 457,740,000 | |||
Nonaccrual Loans | $ 0 | $ 9,185,000 | $ 0 | $ 0 | |||
% of total loans outstanding | 2.00% | 1.00% | 2.00% | 2.00% | |||
Financing receivable, allowance for credit loss, writeoff | $ 0 | ||||||
RTFC | Total Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 0 | $ 0 | 0 | $ 0 | |||
RTFC | Nonperforming financial instruments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 0 | $ 9,185,000 | $ 0 | $ 0 | |||
Number of borrowers | borrower | 2 | ||||||
% of total loans outstanding | 0.00% | 0.03% | 0.00% | 0.00% | |||
Number of borrowers, nonperforming loans | borrower | 2 | 2 | 0 | ||||
RTFC | Loan defaults | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 0 | $ 0 | $ 0 | ||||
RTFC | Special mention | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 4,217,000 | $ 4,592,000 | 4,217,000 | 4,217,000 | |||
Loans originated prior to 2018 | 4,217,000 | 4,217,000 | 4,217,000 | ||||
RTFC | Doubtful | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 0 | $ 9,185,000 | 0 | 0 | |||
Loans originated prior to 2018 | $ 0 | $ 0 | $ 0 | ||||
Geographic concentration risk | TEXAS | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of borrowers | borrower | 67 | 67 | 67 | 67 | |||
Electric utility | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Financing receivable, allowance for credit loss, writeoff | $ 0 | ||||||
Electric utility | Loan defaults | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 0 | $ 0 | 0 | ||||
Electric utility | Parent Company | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loan commitment term | 5 years | ||||||
Power supply | Nonperforming financial instruments | One CFC electric power supply borrower | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Increase (decrease) in finance receivables | $ (22,000,000) | ||||||
Power supply | Doubtful | One CFC electric power supply borrower | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 121,000,000 | $ 143,000,000 | 121,000,000 | 121,000,000 | |||
Power supply | Parent Company | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 4,992,073,000 | 5,154,312,000 | 4,992,073,000 | 4,992,073,000 | |||
Nonaccrual Loans | $ 207,254,000 | $ 228,312,000 | $ 207,254,000 | $ 207,254,000 | |||
% of total loans outstanding | 17.00% | 18.00% | 17.00% | 17.00% | |||
Power supply | Parent Company | Total Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 85,549,000 | $ 84,996,000 | $ 85,549,000 | $ 85,549,000 | |||
Power supply | Parent Company | Brazos electric power cooperative | Total Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 86,000,000 | 85,000,000 | 86,000,000 | 86,000,000 | |||
Power supply | Parent Company | Nonperforming financial instruments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 207,254,000 | $ 228,312,000 | $ 207,254,000 | $ 207,254,000 | |||
% of total loans outstanding | 0.70% | 0.81% | 0.70% | 0.70% | |||
Number of borrowers, nonperforming loans | borrower | 2 | 2 | |||||
Power supply | Parent Company | Criticized | Brazos electric power cooperative | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 86,000,000 | $ 85,000,000 | $ 86,000,000 | $ 86,000,000 | |||
Power supply | Parent Company | Special mention | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 28,389,000 | 29,611,000 | 28,389,000 | 28,389,000 | |||
Loans originated prior to 2018 | 28,389,000 | 28,389,000 | 28,389,000 | ||||
Power supply | Parent Company | Doubtful | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 207,254,000 | 228,312,000 | 207,254,000 | 207,254,000 | |||
Loans originated prior to 2018 | 121,705,000 | 121,705,000 | 121,705,000 | ||||
Power supply | Parent Company | Substandard | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 0 | 378,981,000 | 0 | 0 | |||
Loans originated prior to 2018 | 0 | 0 | 0 | ||||
Distribution | Parent Company | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 23,225,751,000 | 22,027,423,000 | 23,225,751,000 | 23,225,751,000 | |||
Nonaccrual Loans | $ 0 | $ 0 | $ 0 | $ 0 | |||
% of total loans outstanding | 79.00% | 78.00% | 79.00% | 79.00% | |||
Distribution | Parent Company | Total Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 0 | $ 0 | $ 0 | $ 0 | |||
Distribution | Parent Company | Special mention | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 250,072,000 | 219,324,000 | 250,072,000 | 250,072,000 | |||
Loans originated prior to 2018 | 12,446,000 | 12,446,000 | 12,446,000 | ||||
Distribution | Parent Company | Special mention | CFC electric distribution borrower | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 250,000,000 | 219,000,000 | $ 250,000,000 | $ 250,000,000 | |||
Distribution | Parent Company | Special mention | CFC electric distribution borrower and subsidiary | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Number of borrowers | borrower | 1 | 1 | 1 | ||||
RTFC | Nonperforming financial instruments | RTFC Borrower | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Increase (decrease) in finance receivables | $ (30,000,000) | ||||||
Unadvanced commitments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Unadvanced commitments | 14,161,226,000 | 14,357,039,000 | $ 14,161,226,000 | $ 14,161,226,000 | |||
Unadvanced commitments | Parent Company | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Unadvanced commitments | 13,291,118,000 | 13,519,108,000 | 13,291,118,000 | 13,291,118,000 | |||
Unadvanced commitments | RTFC | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Unadvanced commitments | 323,008,000 | 286,806,000 | 323,008,000 | 323,008,000 | |||
Unadvanced commitments | Power supply | Parent Company | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Unadvanced commitments | 3,877,775,000 | 3,970,698,000 | 3,877,775,000 | 3,877,775,000 | |||
Unadvanced commitments | Distribution | Parent Company | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Unadvanced commitments | 9,235,009,000 | 9,387,070,000 | 9,235,009,000 | 9,235,009,000 | |||
Commitments to extend credit subject to material adverse change clause | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Unadvanced commitments | 10,969,000,000 | 11,312,000,000 | 10,969,000,000 | 10,969,000,000 | |||
Unadvanced commitments not subject to material adverse change clauses | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Unadvanced commitments | 3,192,262,000 | 3,045,000,000 | 3,192,262,000 | 3,192,262,000 | |||
Nonperforming financial instruments | Power supply | Parent Company | Brazos electric power cooperative | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | 85,000,000 | ||||||
Variable rate | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 720,027,000 | $ 658,579,000 | $ 720,027,000 | $ 720,027,000 | |||
% of total loans outstanding | 2.00% | 2.00% | 2.00% | 2.00% | |||
Variable rate | Unadvanced commitments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loan commitment term | 5 years | ||||||
Unadvanced commitments | $ 5,230,253,000 | $ 5,771,813,000 | $ 5,230,253,000 | $ 5,230,253,000 | |||
Loans receivable commercial and industrial | Geographic concentration risk | TEXAS | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 4,955,000,000 | $ 4,878,000,000 | $ 4,955,000,000 | $ 4,955,000,000 | |||
Concentration risk, percentage | 17.00% | 17.00% | |||||
Loans receivable commercial and industrial | Credit concentration risk | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration risk, number of borrowers | borrower | 20 | 20 | 20 | 20 | |||
Loans receivable commercial and industrial | Customer concentration risk | Twenty largest borrowers | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 6,213,000,000 | $ 6,182,000,000 | $ 6,213,000,000 | $ 6,213,000,000 | |||
Concentration risk, percentage | 21.00% | 22.00% | |||||
Concentration risk, number of borrowers | borrower | 20 | 20 | 20 | 20 | |||
Loans receivable commercial and industrial | Customer concentration risk | Largest single borrower or controlled group | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration risk, percentage | 2.00% | 2.00% | |||||
Loans receivable commercial and industrial | Electric utility | Credit concentration risk | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 29,051,000,000 | $ 27,995,000,000 | $ 29,051,000,000 | $ 29,051,000,000 | |||
Loans receivable commercial and industrial | Power supply | Customer concentration risk | Twenty largest borrowers | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration risk, number of borrowers | power_supply_system | 8 | 10 | 8 | 8 | |||
Loans receivable commercial and industrial | Distribution | Customer concentration risk | Twenty largest borrowers | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration risk, number of borrowers | distribution_system | 12 | 10 | 12 | 12 | |||
Loans guaranteed by Farmer Mac | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 471,000,000 | $ 512,000,000 | $ 471,000,000 | $ 471,000,000 | |||
Financing receivable, before allowance for credit loss, number of defaults | loan | 0 | 0 | 0 | ||||
Financing receivable, before allowance for credit loss, number of defaulted loans purchased | loan | 0 | 0 | 0 | ||||
Loans guaranteed by Farmer Mac | Geographic concentration risk | TEXAS | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 165,000,000 | 172,000,000 | $ 165,000,000 | $ 165,000,000 | |||
Loans guaranteed by Farmer Mac | Credit concentration risk | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 290,000,000 | $ 309,000,000 | 290,000,000 | 290,000,000 | |||
Concentration risk, percentage | 20.00% | 21.00% | |||||
Loans guaranteed by rural utilities service | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 133,000,000 | $ 139,000,000 | 133,000,000 | 133,000,000 | |||
Loans and finance receivables | Credit concentration risk | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration risk, percentage | 98.00% | 99.00% | |||||
Long-term loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Outstanding Amount | $ 27,172,369,000 | $ 26,173,345,000 | $ 27,172,369,000 | $ 27,172,369,000 | |||
% of total loans outstanding | 92.00% | 92.00% | 92.00% | 92.00% | |||
Long-term loans | Unadvanced commitments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Unadvanced commitments | $ 5,230,253,000 | $ 5,771,813,000 | $ 5,230,253,000 | $ 5,230,253,000 | |||
Loans receivable commercial and industrial not covered by Farmer Mac standby repurchase agreement | Geographic concentration risk | TEXAS | Accounts receivable | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Concentration risk, percentage | 16.00% | 16.00% |
Loans - Payment Status of Loans
Loans - Payment Status of Loans Outstanding (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 | Feb. 28, 2021 |
Payment Status of Loans | |||
Amount | $ 29,508,363 | $ 28,415,107 | $ 28,315,671 |
Nonaccrual Loans | $ 207,254 | $ 237,497 | |
Current (percent) | 99.71% | 99.70% | |
30-89 days past due (in percent) | 0.00% | 0.01% | |
> 90 days past due (in percent) | 0.29% | 0.29% | |
Total past due (in percent) | 0.29% | 0.30% | |
Total loans outstanding (in percent) | 100.00% | 100.00% | |
Nonaccrual loans (in percent) | 0.70% | 0.84% | |
Parent Company | |||
Payment Status of Loans | |||
Amount | $ 28,320,476 | $ 27,287,856 | |
Nonaccrual Loans | 207,254 | 228,312 | |
Parent Company | Distribution | |||
Payment Status of Loans | |||
Amount | 23,225,751 | 22,027,423 | |
Nonaccrual Loans | 0 | 0 | |
Parent Company | Power supply | |||
Payment Status of Loans | |||
Amount | 4,992,073 | 5,154,312 | |
Nonaccrual Loans | 207,254 | 228,312 | |
Parent Company | Statewide and associate | |||
Payment Status of Loans | |||
Amount | 102,652 | 106,121 | |
Nonaccrual Loans | 0 | 0 | |
NCSC | |||
Payment Status of Loans | |||
Amount | 730,147 | 706,868 | |
Nonaccrual Loans | 0 | 0 | |
RTFC | |||
Payment Status of Loans | |||
Amount | 457,740 | 420,383 | |
Nonaccrual Loans | 0 | 9,185 | |
Current | |||
Payment Status of Loans | |||
Amount | 29,422,814 | 28,330,111 | |
Current | Parent Company | |||
Payment Status of Loans | |||
Amount | 28,234,927 | 27,202,860 | |
Current | Parent Company | Distribution | |||
Payment Status of Loans | |||
Amount | 23,225,751 | 22,027,423 | |
Current | Parent Company | Power supply | |||
Payment Status of Loans | |||
Amount | 4,906,524 | 5,069,316 | |
Current | Parent Company | Statewide and associate | |||
Payment Status of Loans | |||
Amount | 102,652 | 106,121 | |
Current | NCSC | |||
Payment Status of Loans | |||
Amount | 730,147 | 706,868 | |
Current | RTFC | |||
Payment Status of Loans | |||
Amount | 457,740 | 420,383 | |
Total Past Due | |||
Payment Status of Loans | |||
Amount | 85,549 | 84,996 | |
Total Past Due | Parent Company | |||
Payment Status of Loans | |||
Amount | 85,549 | 84,996 | |
Total Past Due | Parent Company | Distribution | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
Total Past Due | Parent Company | Power supply | |||
Payment Status of Loans | |||
Amount | 85,549 | 84,996 | |
Total Past Due | Parent Company | Statewide and associate | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
Total Past Due | NCSC | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
Total Past Due | RTFC | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
30-89 Days Past Due | |||
Payment Status of Loans | |||
Amount | 0 | 3,400 | |
30-89 Days Past Due | Parent Company | |||
Payment Status of Loans | |||
Amount | 0 | 3,400 | |
30-89 Days Past Due | Parent Company | Distribution | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
30-89 Days Past Due | Parent Company | Power supply | |||
Payment Status of Loans | |||
Amount | 0 | 3,400 | |
30-89 Days Past Due | Parent Company | Statewide and associate | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
30-89 Days Past Due | NCSC | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
30-89 Days Past Due | RTFC | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
> 90 Days Past Due | |||
Payment Status of Loans | |||
Amount | 85,549 | 81,596 | |
> 90 Days Past Due | Parent Company | |||
Payment Status of Loans | |||
Amount | 85,549 | 81,596 | |
> 90 Days Past Due | Parent Company | Distribution | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
> 90 Days Past Due | Parent Company | Power supply | |||
Payment Status of Loans | |||
Amount | 85,549 | 81,596 | |
> 90 Days Past Due | Parent Company | Statewide and associate | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
> 90 Days Past Due | NCSC | |||
Payment Status of Loans | |||
Amount | 0 | 0 | |
> 90 Days Past Due | RTFC | |||
Payment Status of Loans | |||
Amount | $ 0 | $ 0 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructured Loans (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Feb. 28, 2022USD ($)borrower | May 31, 2021USD ($)borrower | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of total loans outstanding | 100.00% | 100.00% |
Total TDR loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 2 | 2 |
Outstanding Amount | $ | $ 9,309 | $ 9,971 |
% of total loans outstanding | 0.03% | 0.04% |
Performing TDR loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 2 | 2 |
Outstanding Amount | $ | $ 9,309 | $ 9,971 |
% of total loans outstanding | 0.03% | 0.04% |
Parent Company | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of total loans outstanding | 96.00% | 96.00% |
Parent Company | Distribution | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of total loans outstanding | 79.00% | 78.00% |
Parent Company | Total TDR loans | Distribution | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 1 | 1 |
Outstanding Amount | $ | $ 5,092 | $ 5,379 |
% of total loans outstanding | 0.02% | 0.02% |
RTFC | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
% of total loans outstanding | 2.00% | 1.00% |
RTFC | Total TDR loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Borrowers | borrower | 1 | 1 |
Outstanding Amount | $ | $ 4,217 | $ 4,592 |
% of total loans outstanding | 0.01% | 0.02% |
Loans - Nonperforming Loans (De
Loans - Nonperforming Loans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2021borrower | Aug. 31, 2021borrower | Feb. 28, 2022USD ($)borrower | May 31, 2021USD ($) | Feb. 28, 2021USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Outstanding Amount | $ 29,508,363 | $ 28,415,107 | $ 28,315,671 | ||
% of Total Loans Outstanding | 100.00% | 100.00% | |||
Nonperforming financial instruments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Borrowers | borrower | 4 | 2 | |||
Outstanding Amount | $ 207,254 | $ 237,497 | |||
% of Total Loans Outstanding | 0.70% | 0.84% | |||
Parent Company | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Outstanding Amount | $ 28,320,476 | $ 27,287,856 | |||
% of Total Loans Outstanding | 96.00% | 96.00% | |||
Parent Company | Brazos electric power cooperative | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Letters of credit outstanding, amount | $ 1,000 | ||||
Parent Company | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Outstanding Amount | $ 4,992,073 | $ 5,154,312 | |||
% of Total Loans Outstanding | 17.00% | 18.00% | |||
Parent Company | Nonperforming financial instruments | Power supply | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Borrowers | borrower | 2 | 2 | |||
Outstanding Amount | $ 207,254 | $ 228,312 | |||
% of Total Loans Outstanding | 0.70% | 0.81% | |||
RTFC | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Outstanding Amount | $ 457,740 | $ 420,383 | |||
% of Total Loans Outstanding | 2.00% | 1.00% | |||
RTFC | Nonperforming financial instruments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Borrowers | borrower | 2 | 2 | 0 | ||
Outstanding Amount | $ 0 | $ 9,185 | |||
% of Total Loans Outstanding | 0.00% | 0.03% |
Loans - Internal Risk Rating (D
Loans - Internal Risk Rating (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 | Feb. 28, 2021 |
Credit Quality | |||
YTD Q3 2022 | $ 2,115,798 | ||
2021 | 2,416,619 | ||
2020 | 2,387,162 | ||
2019 | 1,646,385 | ||
2018 | 1,781,148 | ||
Prior | 16,825,257 | ||
Revolving Loans | 2,335,994 | ||
Total | 29,508,363 | $ 28,415,107 | $ 28,315,671 |
Parent Company | |||
Credit Quality | |||
Total | 28,320,476 | 27,287,856 | |
Parent Company | Distribution | |||
Credit Quality | |||
Total | 23,225,751 | 22,027,423 | |
Parent Company | Power supply | |||
Credit Quality | |||
Total | 4,992,073 | 5,154,312 | |
Parent Company | Statewide and associate | |||
Credit Quality | |||
Total | 102,652 | 106,121 | |
NCSC | |||
Credit Quality | |||
Total | 730,147 | 706,868 | |
RTFC | |||
Credit Quality | |||
Total | 457,740 | 420,383 | |
Pass | |||
Credit Quality | |||
YTD Q3 2022 | 2,115,798 | ||
2021 | 2,411,702 | ||
2020 | 2,387,162 | ||
2019 | 1,636,259 | ||
2018 | 1,776,319 | ||
Prior | 16,652,951 | ||
Revolving Loans | 2,023,799 | ||
Total | 29,003,990 | 27,529,242 | |
Pass | Parent Company | |||
Credit Quality | |||
YTD Q3 2022 | 2,047,496 | ||
2021 | 2,280,256 | ||
2020 | 2,106,317 | ||
2019 | 1,621,545 | ||
2018 | 1,709,675 | ||
Prior | 16,222,646 | ||
Revolving Loans | 1,832,385 | ||
Total | 27,820,320 | 26,415,768 | |
Pass | Parent Company | Distribution | |||
Credit Quality | |||
YTD Q3 2022 | 1,714,893 | ||
2021 | 1,715,341 | ||
2020 | 1,895,645 | ||
2019 | 1,201,281 | ||
2018 | 1,462,991 | ||
Prior | 13,521,337 | ||
Revolving Loans | 1,464,191 | ||
Total | 22,975,679 | 21,808,099 | |
Pass | Parent Company | Power supply | |||
Credit Quality | |||
YTD Q3 2022 | 329,172 | ||
2021 | 562,604 | ||
2020 | 191,205 | ||
2019 | 416,879 | ||
2018 | 246,684 | ||
Prior | 2,680,286 | ||
Revolving Loans | 329,600 | ||
Total | 4,756,430 | 4,517,408 | |
Pass | Parent Company | Statewide and associate | |||
Credit Quality | |||
YTD Q3 2022 | 3,431 | ||
2021 | 2,311 | ||
2020 | 19,467 | ||
2019 | 3,385 | ||
2018 | 0 | ||
Prior | 21,023 | ||
Revolving Loans | 38,594 | ||
Total | 88,211 | 90,261 | |
Pass | NCSC | |||
Credit Quality | |||
YTD Q3 2022 | 14,251 | ||
2021 | 40,152 | ||
2020 | 234,522 | ||
2019 | 4,147 | ||
2018 | 43,140 | ||
Prior | 243,347 | ||
Revolving Loans | 150,588 | ||
Total | 730,147 | 706,868 | |
Pass | RTFC | |||
Credit Quality | |||
YTD Q3 2022 | 54,051 | ||
2021 | 91,294 | ||
2020 | 46,323 | ||
2019 | 10,567 | ||
2018 | 23,504 | ||
Prior | 186,958 | ||
Revolving Loans | 40,826 | ||
Total | 453,523 | 406,606 | |
Special mention | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 4,917 | ||
2020 | 0 | ||
2019 | 10,126 | ||
2018 | 4,829 | ||
Prior | 50,601 | ||
Revolving Loans | 226,646 | ||
Total | 297,119 | 269,387 | |
Special mention | Parent Company | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 4,917 | ||
2020 | 0 | ||
2019 | 10,126 | ||
2018 | 4,829 | ||
Prior | 46,384 | ||
Revolving Loans | 226,646 | ||
Total | 292,902 | 264,795 | |
Special mention | Parent Company | Distribution | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 4,917 | ||
2020 | 0 | ||
2019 | 5,126 | ||
2018 | 937 | ||
Prior | 12,446 | ||
Revolving Loans | 226,646 | ||
Total | 250,072 | 219,324 | |
Special mention | Parent Company | Power supply | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior | 28,389 | ||
Revolving Loans | 0 | ||
Total | 28,389 | 29,611 | |
Special mention | Parent Company | Statewide and associate | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 5,000 | ||
2018 | 3,892 | ||
Prior | 5,549 | ||
Revolving Loans | 0 | ||
Total | 14,441 | 15,860 | |
Special mention | RTFC | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior | 4,217 | ||
Revolving Loans | 0 | ||
Total | 4,217 | 4,592 | |
Substandard | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total | 0 | 378,981 | |
Substandard | Parent Company | Power supply | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total | 0 | 378,981 | |
Doubtful | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior | 121,705 | ||
Revolving Loans | 85,549 | ||
Total | 207,254 | 237,497 | |
Doubtful | Parent Company | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior | 121,705 | ||
Revolving Loans | 85,549 | ||
Total | 207,254 | 228,312 | |
Doubtful | Parent Company | Power supply | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior | 121,705 | ||
Revolving Loans | 85,549 | ||
Total | 207,254 | 228,312 | |
Doubtful | RTFC | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
Prior | 0 | ||
Revolving Loans | 0 | ||
Total | 0 | 9,185 | |
Criticized | |||
Credit Quality | |||
YTD Q3 2022 | 0 | ||
2021 | 4,917 | ||
2020 | 0 | ||
2019 | 10,126 | ||
2018 | 4,829 | ||
Prior | 172,306 | ||
Revolving Loans | 312,195 | ||
Total | $ 504,373 | $ 885,865 |
Loans - Schedule of Unadvanced
Loans - Schedule of Unadvanced Commitments (Details) - Unadvanced commitments - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | $ 14,161,226 | $ 14,357,039 |
Long-term loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 5,230,253 | 5,771,813 |
Fixed rate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 0 | 0 |
Variable rate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 5,230,253 | 5,771,813 |
Lines of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 8,930,973 | 8,585,226 |
Parent Company | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 13,291,118 | 13,519,108 |
Parent Company | Distribution | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 9,235,009 | 9,387,070 |
Parent Company | Power supply | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 3,877,775 | 3,970,698 |
Parent Company | Statewide and associate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 178,334 | 161,340 |
NCSC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | 547,100 | 551,125 |
RTFC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unadvanced commitments | $ 323,008 | $ 286,806 |
Loans - Available Balance Under
Loans - Available Balance Under Unadvanced Commitments and Maturity (Details) - Unadvanced commitments - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available Balance | $ 14,161,226 | $ 14,357,039 |
2022 | 388,427 | |
2023 | 4,988,930 | |
2024 | 2,643,858 | |
2025 | 2,319,307 | |
2026 | 1,472,720 | |
Thereafter | 2,347,984 | |
Line of credit loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available Balance | 8,930,973 | 8,585,226 |
2022 | 347,506 | |
2023 | 4,295,443 | |
2024 | 1,166,547 | |
2025 | 1,517,248 | |
2026 | 413,289 | |
Thereafter | 1,190,940 | |
Long-term loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Available Balance | 5,230,253 | $ 5,771,813 |
2022 | 40,921 | |
2023 | 693,487 | |
2024 | 1,477,311 | |
2025 | 802,059 | |
2026 | 1,059,431 | |
Thereafter | $ 1,157,044 |
Loans - Unconditional Committed
Loans - Unconditional Committed Lines of Credit and Maturity (Details) - Unadvanced commitments not subject to material adverse change clauses - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Notional maturities of committed lines of credit | ||
Available Balance | $ 3,192,262 | $ 3,045,000 |
2022 | 0 | |
2023 | 400,287 | |
2024 | 510,982 | |
2025 | 1,152,337 | |
2026 | 246,949 | |
Thereafter | $ 881,707 |
Loans - Outstanding Pledged as
Loans - Outstanding Pledged as Collateral (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Pledging of Loans and Loans on Deposit | ||
Cash | $ 6,530 | $ 8,298 |
Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,790,418 | 8,521,972 |
Secured debt | 7,522,711 | 7,422,711 |
Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Secured debt | 25,000 | 30,000 |
Notes payable | Federal financing bank | ||
Pledging of Loans and Loans on Deposit | ||
Secured debt | 6,149,203 | 6,269,303 |
Notes payable | Farmer Mac | ||
Pledging of Loans and Loans on Deposit | ||
Secured debt | 3,018,130 | 2,977,909 |
Clean renewable energy bonds series 2009A | ||
Pledging of Loans and Loans on Deposit | ||
Secured debt | 2,755 | 4,412 |
Cash | 2 | 394 |
Assets pledged as collateral | 3,614 | 5,710 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 8,673,974 | 8,400,293 |
Mortgage notes | Distribution system mortgage notes | Collateral trust bonds 1994 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 31,477 | 34,924 |
Mortgage notes | Distribution and power supply system mortgage notes | Farmer Mac | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 3,486,457 | 3,440,307 |
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 | 3,612 | 5,316 |
Loans guaranteed by rural utilities service | Collateral trust bonds 2007 indenture | ||
Pledging of Loans and Loans on Deposit | ||
Loans outstanding and pledged as collateral | 116,444 | 121,679 |
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 | $ 6,982,334 | $ 7,150,240 |
Allowance for Credit Losses - R
Allowance for Credit Losses - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | $ 86,135 | $ 58,989 | $ 85,532 | $ 53,125 |
(Benefit) provision for credit losses | (12,749) | 33,023 | (12,146) | 34,987 |
Allowance for loan loss, ending balance | 73,386 | 92,012 | 73,386 | 92,012 |
Parent Company | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 82,923 | 54,409 | 79,463 | 47,438 |
(Benefit) provision for credit losses | (12,747) | 29,435 | (9,287) | 30,761 |
Allowance for loan loss, ending balance | 70,176 | 83,844 | 70,176 | 83,844 |
Parent Company | Distribution | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 16,032 | 13,215 | 13,426 | 8,002 |
(Benefit) provision for credit losses | 353 | 2,022 | 2,959 | 3,649 |
Allowance for loan loss, ending balance | 16,385 | 15,237 | 16,385 | 15,237 |
Parent Company | Power supply | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 65,467 | 39,781 | 64,646 | 38,027 |
(Benefit) provision for credit losses | (12,989) | 27,381 | (12,168) | 27,101 |
Allowance for loan loss, ending balance | 52,478 | 67,162 | 52,478 | 67,162 |
Parent Company | Statewide and associate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 1,424 | 1,413 | 1,391 | 1,409 |
(Benefit) provision for credit losses | (111) | 32 | (78) | 11 |
Allowance for loan loss, ending balance | 1,313 | 1,445 | 1,313 | 1,445 |
NCSC | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 1,594 | 1,341 | 1,374 | 806 |
(Benefit) provision for credit losses | 135 | 316 | 355 | 866 |
Allowance for loan loss, ending balance | 1,729 | 1,657 | 1,729 | 1,657 |
RTFC | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 1,618 | 3,239 | 4,695 | 4,881 |
(Benefit) provision for credit losses | (137) | 3,272 | (3,214) | (3,360) |
Allowance for loan loss, ending balance | $ 1,481 | $ 6,511 | $ 1,481 | 6,511 |
Cumulative effect, period of adoption, adjusted balance | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 57,025 | |||
Cumulative effect, period of adoption, adjusted balance | Parent Company | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 53,083 | |||
Cumulative effect, period of adoption, adjusted balance | Parent Company | Distribution | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 11,588 | |||
Cumulative effect, period of adoption, adjusted balance | Parent Company | Power supply | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 40,061 | |||
Cumulative effect, period of adoption, adjusted balance | Parent Company | Statewide and associate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 1,434 | |||
Cumulative effect, period of adoption, adjusted balance | NCSC | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 791 | |||
Cumulative effect, period of adoption, adjusted balance | RTFC | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 3,151 | |||
Cumulative-effect adjustment from adoption of CECL accounting standard | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 3,900 | |||
Cumulative-effect adjustment from adoption of CECL accounting standard | Parent Company | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 5,645 | |||
Cumulative-effect adjustment from adoption of CECL accounting standard | Parent Company | Distribution | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 3,586 | |||
Cumulative-effect adjustment from adoption of CECL accounting standard | Parent Company | Power supply | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 2,034 | |||
Cumulative-effect adjustment from adoption of CECL accounting standard | Parent Company | Statewide and associate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | 25 | |||
Cumulative-effect adjustment from adoption of CECL accounting standard | NCSC | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | (15) | |||
Cumulative-effect adjustment from adoption of CECL accounting standard | RTFC | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for loan loss, beginning balance | $ (1,730) |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Recorded Investments (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Nov. 30, 2021 | May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | May 31, 2020 |
Allowance components: | ||||||
Collective allowance | $ 32,872 | $ 42,442 | ||||
Asset-specific allowance | 40,514 | 43,090 | ||||
Total allowance for credit losses | 73,386 | $ 86,135 | 85,532 | $ 92,012 | $ 58,989 | $ 53,125 |
Loans outstanding: | ||||||
Collectively evaluated loans | 29,291,800 | 28,167,639 | ||||
Individually evaluated loans | 216,563 | 247,468 | ||||
Total | $ 29,508,363 | $ 28,415,107 | 28,315,671 | |||
Financing receivable, allowance for credit loss to outstanding | 0.25% | 0.30% | ||||
Deferred loan origination costs | $ 12,018 | 11,810 | ||||
Collective allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 0.11% | 0.15% | ||||
Asset-specific allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 18.71% | 17.41% | ||||
Parent Company | ||||||
Allowance components: | ||||||
Collective allowance | $ 29,917 | $ 39,921 | ||||
Asset-specific allowance | 40,259 | 39,542 | ||||
Total allowance for credit losses | 70,176 | 82,923 | 79,463 | 83,844 | 54,409 | 47,438 |
Loans outstanding: | ||||||
Collectively evaluated loans | 28,108,130 | 27,054,165 | ||||
Individually evaluated loans | 212,346 | 233,691 | ||||
Total | $ 28,320,476 | $ 27,287,856 | ||||
Financing receivable, allowance for credit loss to outstanding | 0.25% | 0.29% | ||||
Deferred loan origination costs | $ 12,000 | $ 12,000 | ||||
Parent Company | Collective allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 0.11% | 0.15% | ||||
Parent Company | Asset-specific allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 18.96% | 16.92% | ||||
Parent Company | Distribution | ||||||
Allowance components: | ||||||
Collective allowance | $ 16,385 | $ 13,426 | ||||
Asset-specific allowance | 0 | 0 | ||||
Total allowance for credit losses | 16,385 | 16,032 | 13,426 | 15,237 | 13,215 | 8,002 |
Loans outstanding: | ||||||
Collectively evaluated loans | 23,220,659 | 22,022,044 | ||||
Individually evaluated loans | 5,092 | 5,379 | ||||
Total | $ 23,225,751 | $ 22,027,423 | ||||
Financing receivable, allowance for credit loss to outstanding | 0.07% | 0.06% | ||||
Parent Company | Distribution | Collective allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 0.07% | 0.06% | ||||
Parent Company | Distribution | Asset-specific allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 0.00% | 0.00% | ||||
Parent Company | Power supply | ||||||
Allowance components: | ||||||
Collective allowance | $ 12,219 | $ 25,104 | ||||
Asset-specific allowance | 40,259 | 39,542 | ||||
Total allowance for credit losses | 52,478 | 65,467 | 64,646 | 67,162 | 39,781 | 38,027 |
Loans outstanding: | ||||||
Collectively evaluated loans | 4,784,819 | 4,926,000 | ||||
Individually evaluated loans | 207,254 | 228,312 | ||||
Total | $ 4,992,073 | $ 5,154,312 | ||||
Financing receivable, allowance for credit loss to outstanding | 1.05% | 1.25% | ||||
Parent Company | Power supply | Collective allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 0.26% | 0.51% | ||||
Parent Company | Power supply | Asset-specific allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 19.42% | 17.32% | ||||
Parent Company | Statewide and associate | ||||||
Allowance components: | ||||||
Collective allowance | $ 1,313 | $ 1,391 | ||||
Asset-specific allowance | 0 | 0 | ||||
Total allowance for credit losses | 1,313 | 1,424 | 1,391 | 1,445 | 1,413 | 1,409 |
Loans outstanding: | ||||||
Collectively evaluated loans | 102,652 | 106,121 | ||||
Individually evaluated loans | 0 | 0 | ||||
Total | $ 102,652 | $ 106,121 | ||||
Financing receivable, allowance for credit loss to outstanding | 1.28% | 1.31% | ||||
Parent Company | Statewide and associate | Collective allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 1.28% | 1.31% | ||||
Parent Company | Statewide and associate | Asset-specific allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 0.00% | 0.00% | ||||
NCSC | ||||||
Allowance components: | ||||||
Collective allowance | $ 1,729 | $ 1,374 | ||||
Asset-specific allowance | 0 | 0 | ||||
Total allowance for credit losses | 1,729 | 1,594 | 1,374 | 1,657 | 1,341 | 806 |
Loans outstanding: | ||||||
Collectively evaluated loans | 730,147 | 706,868 | ||||
Individually evaluated loans | 0 | 0 | ||||
Total | $ 730,147 | $ 706,868 | ||||
Financing receivable, allowance for credit loss to outstanding | 0.24% | 0.19% | ||||
NCSC | Collective allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 0.24% | 0.19% | ||||
NCSC | Asset-specific allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 0.00% | 0.00% | ||||
RTFC | ||||||
Allowance components: | ||||||
Collective allowance | $ 1,226 | $ 1,147 | ||||
Asset-specific allowance | 255 | 3,548 | ||||
Total allowance for credit losses | 1,481 | $ 1,618 | 4,695 | $ 6,511 | $ 3,239 | $ 4,881 |
Loans outstanding: | ||||||
Collectively evaluated loans | 453,523 | 406,606 | ||||
Individually evaluated loans | 4,217 | 13,777 | ||||
Total | $ 457,740 | $ 420,383 | ||||
Financing receivable, allowance for credit loss to outstanding | 0.32% | 1.12% | ||||
RTFC | Collective allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 0.27% | 0.28% | ||||
RTFC | Asset-specific allowance | ||||||
Loans outstanding: | ||||||
Financing receivable, allowance for credit loss to outstanding | 6.05% | 25.75% |
Allowance for Credit Losses - A
Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | ||||
Nov. 30, 2021 | Feb. 28, 2022 | May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | May 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Allowance for loan loss, rounded amount | $ 74,000 | |||||
Allowance for loan loss | $ 86,135 | $ 73,386 | $ 85,532 | $ 92,012 | $ 58,989 | $ 53,125 |
Financing receivable, allowance for credit loss to outstanding | 0.25% | 0.30% | ||||
Allowance for credit loss, period increase (decrease) | $ (12,000) | |||||
Credit reserve for unadvanced loan commitments (less than) | $ 1,000 | $ 1,000 | ||||
Nonperforming financial instruments | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Proceeds from collection of finance receivables | $ 9,000 | |||||
Collective allowance | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, allowance for credit loss to outstanding | 0.11% | 0.15% | ||||
Allowance for credit loss, period increase (decrease) | $ (9,000) | |||||
Asset-specific allowance | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Financing receivable, allowance for credit loss to outstanding | 18.71% | 17.41% | ||||
Allowance for credit loss, period increase (decrease) | $ (3,000) |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Details) | Jun. 07, 2021USD ($) | Feb. 28, 2022USD ($)facility | May 31, 2021USD ($) |
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 4,428,057,000 | $ 4,582,096,000 | |
Debt securities trading, at fair value, pledged as collateral | $ 0 | $ 210,894,000 | |
Number of active facilities | facility | 2 | ||
Short-term debt | |||
Short-term Debt [Line Items] | |||
Debt instrument, term (in years) | 1 year | ||
Short-term debt | Debt | Credit availability concentration risk | |||
Short-term Debt [Line Items] | |||
Concentration risk, percentage | 16.00% | 17.00% | |
Securities sold under agreements to repurchase | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 0 | $ 200,115,000 | |
Securities sold under agreements to repurchase | Debt | Credit availability concentration risk | |||
Short-term Debt [Line Items] | |||
Concentration risk, percentage | 0.00% | 1.00% | |
Revolving credit agreements | |||
Short-term Debt [Line Items] | |||
Short-term borrowings | $ 0 | ||
Total Commitment | 2,600,000,000 | ||
Letter of credit, maximum amount available | 300,000,000 | ||
Letters of credit outstanding, amount | $ 3,000,000 | ||
Revolving credit agreements | Three-year agreement | |||
Short-term Debt [Line Items] | |||
Debt instrument, term (in years) | 3 years | ||
Line of credit facility terminated | $ 70,000,000 | ||
Total Commitment | $ 1,245,000,000 | ||
Revolving credit agreements | Five-year agreement | |||
Short-term Debt [Line Items] | |||
Debt instrument, term (in years) | 5 years | ||
Line of credit facility terminated | $ 55,000,000 | ||
Total Commitment | $ 1,355,000,000 |
Short-Term Borrowings - Outstan
Short-Term Borrowings - Outstanding (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Feb. 28, 2022 | May 31, 2021 | |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 4,428,057 | $ 4,582,096 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 2,259,593 | $ 2,019,584 |
Commercial paper | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 8.00% | 7.00% |
Commercial paper dealers, net of discounts | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 1,105,200 | $ 894,977 |
Commercial paper dealers, net of discounts | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 4.00% | 3.00% |
Commercial paper members, at par | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 1,154,393 | $ 1,124,607 |
Commercial paper members, at par | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 4.00% | 4.00% |
Select notes to members | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 1,402,238 | $ 1,539,150 |
Select notes to members | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 5.00% | 6.00% |
Daily liquidity fund notes to members | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 350,402 | $ 460,556 |
Daily liquidity fund notes to members | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 1.00% | 2.00% |
Medium-term notes to members | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 415,824 | $ 362,691 |
Medium-term notes to members | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 2.00% | 1.00% |
Securities sold under agreements to repurchase | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 0 | $ 200,115 |
Securities sold under agreements to repurchase | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 0.00% | 1.00% |
Short-term debt | Debt | Credit availability concentration risk | ||
Short-term Debt [Line Items] | ||
Concentration risk, percentage | 16.00% | 17.00% |
Short-Term Borrowings - Commitm
Short-Term Borrowings - Commitments under Revolving Credit Agreements (Details) - Revolving credit agreements | 9 Months Ended |
Feb. 28, 2022USD ($) | |
Revolving Credit Agreements | |
Total Commitment | $ 2,600,000,000 |
Letters of Credit Outstanding | 3,000,000 |
Available Amount | $ 2,597,000,000 |
Three-year agreement maturing on Nov 28, 2024 | |
Revolving Credit Agreements | |
Debt instrument, term (in years) | 3 years |
Total Commitment | $ 1,245,000,000 |
Letters of Credit Outstanding | 0 |
Available Amount | $ 1,245,000,000 |
Maturity | Nov. 28, 2024 |
Annual facility fee | 750.00% |
Five-year agreement maturing on Nov 28, 2025 | |
Revolving Credit Agreements | |
Debt instrument, term (in years) | 5 years |
Total Commitment | $ 1,355,000,000 |
Letters of Credit Outstanding | 3,000,000 |
Available Amount | $ 1,352,000,000 |
Maturity | Nov. 28, 2025 |
Annual facility fee | 1000.00% |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt Outstanding (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Long-term debt | ||
Long-term debt | $ 21,521,734 | $ 20,603,123 |
Collateral trust bonds | ||
Long-term debt | ||
Long-term debt, gross | 7,547,711 | 7,452,711 |
Unamortized discount | (219,775) | (227,046) |
Debt issuance costs | (33,787) | (33,721) |
Long-term debt | 7,294,149 | 7,191,944 |
Guaranteed Underwriter Program notes payable | ||
Long-term debt | ||
Long-term debt | 6,149,203 | 6,269,303 |
Farmer Mac notes payable | ||
Long-term debt | ||
Long-term debt | 3,018,130 | 2,977,909 |
Other secured notes payable | ||
Long-term debt | ||
Long-term debt, gross | 2,755 | 4,412 |
Debt issuance costs | (11) | (22) |
Long-term debt | 2,744 | 4,390 |
Notes payable | ||
Long-term debt | ||
Long-term debt | 9,170,077 | 9,251,602 |
Secured debt | ||
Long-term debt | ||
Long-term debt | 16,464,226 | 16,443,546 |
Medium-term notes sold through dealers | ||
Long-term debt | ||
Long-term debt, gross | 4,891,283 | 3,943,728 |
Medium-term notes sold to members | ||
Long-term debt | ||
Long-term debt, gross | 186,104 | 232,346 |
Medium term notes sold through dealers and to members | ||
Long-term debt | ||
Long-term debt, gross | 5,077,387 | 4,176,074 |
Unamortized discount | (2,155) | (2,307) |
Debt issuance costs | (19,687) | (18,036) |
Long-term debt | 5,055,545 | 4,155,731 |
Other unsecured notes payable | ||
Long-term debt | ||
Long-term debt, gross | 1,979 | 3,886 |
Unamortized discount | (14) | (35) |
Debt issuance costs | (2) | (5) |
Total other unsecured notes payable | ||
Long-term debt | ||
Long-term debt | 1,963 | 3,846 |
Unsecured debt | ||
Long-term debt | ||
Long-term debt | $ 5,057,508 | $ 4,159,577 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Mar. 25, 2022 | Feb. 07, 2022 | Oct. 18, 2021 | Oct. 31, 2021 | Aug. 31, 2021 | Feb. 28, 2022 | May 31, 2021 | Nov. 04, 2021 |
Long-term debt | ||||||||
Long-term debt | $ 21,521,734,000 | $ 20,603,123,000 | ||||||
Farmer Mac notes payable | ||||||||
Long-term debt | ||||||||
Proceeds from notes payable | $ 250,000,000 | |||||||
Debt | Credit availability concentration risk | Long-term debt | ||||||||
Long-term debt | ||||||||
Concentration risk, percentage | 75.00% | 76.00% | ||||||
Farmer Mac | ||||||||
Long-term debt | ||||||||
Maximum borrowing capacity | $ 5,500,000,000 | |||||||
Debt instrument, renewal term | 1 year | |||||||
Debt instrument, termination written notice, term | 425 days | |||||||
Farmer Mac | Farmer Mac notes payable | ||||||||
Long-term debt | ||||||||
Long-term debt | $ 3,018,000,000 | |||||||
Available under committed loan facilities | 2,482,000,000 | |||||||
Proceeds from notes payable | 620,000,000 | |||||||
Secured debt | ||||||||
Long-term debt | ||||||||
Long-term debt | 16,464,226,000 | $ 16,443,546,000 | ||||||
Increase (decrease) in debt instrument | $ 20,000,000 | |||||||
Secured debt | Debt | Credit availability concentration risk | ||||||||
Long-term debt | ||||||||
Concentration risk, percentage | 77.00% | 80.00% | ||||||
Collateral trust bonds | ||||||||
Long-term debt | ||||||||
Long-term debt | $ 7,294,149,000 | $ 7,191,944,000 | ||||||
Increase (decrease) in debt instrument | 102,000,000 | |||||||
Collateral trust bonds | 3.05% collateral trust bonds | ||||||||
Long-term debt | ||||||||
Extinguishment of debt, amount | $ 400,000,000 | |||||||
Stated interest rate | 3.05% | |||||||
Collateral trust bonds | 2.75% collateral trust bonds | ||||||||
Long-term debt | ||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||
Stated interest rate | 2.75% | |||||||
Collateral trust bonds | 2.40% collateral trust bonds | Subsequent Event | ||||||||
Long-term debt | ||||||||
Extinguishment of debt, amount | $ 450,000,000 | |||||||
Stated interest rate | 2.40% | |||||||
Guaranteed Underwriter Program notes payable | ||||||||
Long-term debt | ||||||||
Long-term debt | $ 6,149,203,000 | 6,269,303,000 | ||||||
Increase (decrease) in debt instrument | (120,000,000) | |||||||
Available under committed loan facilities | $ 1,075,000,000 | |||||||
Maximum percentage of patronage capital distribution allowed | 5.00% | |||||||
Guaranteed Underwriter Program notes payable | Committed loan facility | ||||||||
Long-term debt | ||||||||
Committed loan facility, maximum borrowing capacity | $ 550,000,000 | |||||||
Proceeds from issuance of long-term debt | $ 450,000,000 | |||||||
Repayments of notes payable | $ 570,000,000 | |||||||
Guaranteed Underwriter Program notes payable | Committed loan facility | Maximum | ||||||||
Long-term debt | ||||||||
Debt instrument, term (in years) | 30 years | |||||||
Unsecured debt | ||||||||
Long-term debt | ||||||||
Long-term debt | $ 5,057,508,000 | $ 4,159,577,000 | ||||||
Increase (decrease) in debt instrument | $ 898,000,000 | |||||||
Unsecured debt | Debt | Credit availability concentration risk | ||||||||
Long-term debt | ||||||||
Concentration risk, percentage | 23.00% | 20.00% | ||||||
Medium-term notes | 1.000% medium-term notes | ||||||||
Long-term debt | ||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||
Stated interest rate | 1.00% | |||||||
Medium-term notes | Floater rate medium-term loan | ||||||||
Long-term debt | ||||||||
Debt instrument, face amount | $ 400,000,000 | $ 350,000,000 | ||||||
Medium-term notes | Floater rate medium-term loan | Secured Overnight Financing Rate (SOFR) | ||||||||
Long-term debt | ||||||||
Basis spread on variable rate | 0.40% | 0.33% | ||||||
Medium-term notes | 1.875% medium-term notes | ||||||||
Long-term debt | ||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||
Stated interest rate | 1.875% |
Subordinated Deferrable Debt (D
Subordinated Deferrable Debt (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Subordinated Debt [Abstract] | ||
Subordinated deferrable debt | $ 986,466 | $ 986,315 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Derivative Notional Amounts and Weighted-Average Rate (Details) - USD ($) | Feb. 28, 2022 | May 31, 2021 |
Pay-fixed swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 6,023,392,000 | $ 6,579,516,000 |
Weighted- Average Rate Paid | 2.61% | 2.65% |
Weighted- Average Rate Received | 0.34% | 0.20% |
Receive-fixed swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 2,049,000,000 | $ 2,399,000,000 |
Weighted- Average Rate Paid | 1.00% | 0.92% |
Weighted- Average Rate Received | 2.86% | 2.80% |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 8,072,392,000 | $ 8,978,516,000 |
Weighted- Average Rate Paid | 2.20% | 2.19% |
Weighted- Average Rate Received | 0.98% | 0.89% |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Thousands | Oct. 06, 2021USD ($) | Oct. 31, 2021USD ($) | Feb. 28, 2022USD ($)member | May 31, 2021USD ($) | Jul. 20, 2021USD ($)agreement |
Derivative [Line Items] | |||||
Treasury rate lock, number of agreements | agreement | 2 | ||||
Derivative asset, notional amount | $ 2,449,726 | $ 2,560,618 | |||
Number of counterparties subject to ratings trigger and early termination provision | member | 1 | ||||
Farmer Mac notes payable | |||||
Derivative [Line Items] | |||||
Proceeds from notes payable | $ 250,000 | ||||
Interest rate contracts and treasury lock | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 223,000 | ||||
Unrealized loss position | 16,000 | ||||
Interest rate swaps and treasury lock | |||||
Derivative [Line Items] | |||||
Net liability position | $ 256,000 | ||||
Interest rate swaps and treasury lock | Derivative | Counterparty exposure risk | |||||
Derivative [Line Items] | |||||
Concentration risk, percentage | 24.00% | 24.00% | |||
Treasury rate lock—cash flow hedge | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Derivative asset, notional amount | $ 250,000 | ||||
Unrealized gains on cash flow hedge | $ 5,000 | ||||
AOCI, cash flow hedge, cumulative gain | $ 4,000 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Balance Sheet Impact (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Derivative [Line Items] | ||
Derivative assets | $ 50,901 | $ 121,259 |
Derivative liabilities | 391,988 | 584,989 |
Derivative asset, notional amount | 2,449,726 | 2,560,618 |
Derivative liability, notional amount | 5,622,666 | 6,417,898 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative assets | 50,901 | 121,259 |
Derivative liabilities | 391,988 | 584,989 |
Derivative asset, notional amount | 2,449,726 | 2,560,618 |
Derivative liability, notional amount | $ 5,622,666 | $ 6,417,898 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Derivatives Offsetting (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Derivative [Line Items] | ||
Derivative asset, fair value, amount not offset against collateral | $ 50,901 | $ 121,259 |
Derivative liability, fair value, amount not offset against collateral | 391,988 | 584,989 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative asset, fair value, gross asset | 50,901 | 121,259 |
Derivative asset, fair value, gross liability | 0 | 0 |
Derivative asset, fair value, amount not offset against collateral | 50,901 | 121,259 |
Derivative, collateral, obligation to return securities | 50,901 | 121,259 |
Derivative, collateral, obligation to return cash | 0 | 0 |
Derivative asset, fair value, amount offset against collateral | 0 | 0 |
Derivative liability, fair value, gross liability | 391,988 | 584,989 |
Derivative liability, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, amount not offset against collateral | 391,988 | 584,989 |
Derivative, collateral, right to reclaim securities | 50,901 | 121,259 |
Derivative, collateral, right to reclaim cash | 0 | 0 |
Derivative liability, fair value, amount offset against collateral | $ 341,087 | $ 463,730 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Income Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Derivative [Line Items] | ||||
Derivative cash settlements interest expense | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative forward value gains | 122,930 | 558,266 | ||
Derivative gains | 169,280 | 330,196 | 43,203 | 471,759 |
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative cash settlements interest expense | (26,212) | (29,735) | (79,727) | (86,507) |
Derivative forward value gains | 195,492 | 359,931 | 122,930 | 558,266 |
Derivative gains | $ 169,280 | $ 330,196 | $ 43,203 | $ 471,759 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Rating Triggers (Details) - Interest rate swaps $ in Thousands | Feb. 28, 2022USD ($) |
Derivative [Line Items] | |
Notional Amount | $ 5,855,111 |
Payable Due from CFC | (247,052) |
Receivable Due to CFC | 0 |
Net Payable | (247,052) |
Moody's, A3 Rating Standard Poor's A- Rating | |
Derivative [Line Items] | |
Notional Amount | 36,110 |
Payable Due from CFC | (5,726) |
Receivable Due to CFC | 0 |
Net Payable | (5,726) |
Moodys Baa 1 Rating Standard Poor's BBB Plus Rating | |
Derivative [Line Items] | |
Notional Amount | 5,524,597 |
Payable Due from CFC | (231,423) |
Receivable Due to CFC | 0 |
Net Payable | (231,423) |
Moody's Baa 2 Rating Standard Poor's BBB Rating | |
Derivative [Line Items] | |
Notional Amount | 294,404 |
Payable Due from CFC | (9,903) |
Receivable Due to CFC | 0 |
Net Payable | $ (9,903) |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2021 | May 31, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | Nov. 30, 2021 | Nov. 30, 2020 | May 31, 2020 | |
Stockholder's Equity [Line Items] | |||||||||
Equity increase (decrease) | $ 253,000 | ||||||||
Equity | $ 1,399,879 | $ 1,652,595 | $ 1,268,589 | 1,652,595 | $ 1,268,589 | $ 1,390,985 | $ 891,719 | $ 648,822 | |
Patronage capital retirement | 0 | 2,054 | 59,979 | 61,911 | |||||
Net income | 261,965 | 378,947 | 307,362 | 684,055 | |||||
Cash Flow Hedging | |||||||||
Stockholder's Equity [Line Items] | |||||||||
Expected reclassification from AOCI over 12 months | 1,000 | ||||||||
Retained earnings allocation to patronage capital retirement | |||||||||
Stockholder's Equity [Line Items] | |||||||||
Equity | 923,970 | 866,405 | 834,209 | 866,405 | 834,209 | 866,405 | 834,209 | 894,066 | |
Patronage capital retirement | 57,565 | 59,857 | |||||||
Retained earnings allocation to members' capital reserve | |||||||||
Stockholder's Equity [Line Items] | |||||||||
Equity | 909,749 | 909,749 | 807,320 | 909,749 | 807,320 | 909,749 | 807,320 | 807,320 | |
Retained earnings allocation to cooperative education fund | |||||||||
Stockholder's Equity [Line Items] | |||||||||
Equity | 3,125 | $ 2,431 | $ 2,479 | $ 2,431 | $ 2,479 | $ 2,665 | $ 2,551 | $ 3,193 | |
Net income | $ 1,000 | ||||||||
Parent Company | Retained earnings allocation to patronage capital retirement | |||||||||
Stockholder's Equity [Line Items] | |||||||||
Patronage capital retirement | $ 58,000 | ||||||||
Net income allocations | $ 90,000 | ||||||||
Percentage of patronage capital allocation | 50.00% | ||||||||
Parent Company | Retained earnings allocation to members' capital reserve | |||||||||
Stockholder's Equity [Line Items] | |||||||||
Patronage capital retirement | $ 102,000 | ||||||||
Parent Company | Retained earnings allocation of 50% of prior year patronage capital allocation | |||||||||
Stockholder's Equity [Line Items] | |||||||||
Patronage capital retirement | 45,000 | ||||||||
Parent Company | Retained earnings allocation held for twenty five years | |||||||||
Stockholder's Equity [Line Items] | |||||||||
Patronage capital retirement | $ 13,000 | ||||||||
Period for which prior years allocated patronage capital is required to be held | 25 years |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Income Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
AOCI, Net of Tax | ||||
Beginning balance | $ 1,390,985 | $ 891,719 | $ 1,399,879 | $ 648,822 |
Changes in unrealized gains | 0 | 0 | 4,028 | 0 |
Realized (gains) losses reclassified to earnings | (120) | 87 | (217) | 251 |
Ending balance | 1,652,595 | 1,268,589 | 1,652,595 | 1,268,589 |
Total | ||||
AOCI, Net of Tax | ||||
Beginning balance | 3,906 | (1,746) | (25) | (1,910) |
Ending balance | 3,786 | (1,659) | 3,786 | (1,659) |
Unrealized Gains on Derivative Hedges | ||||
AOCI, Net of Tax | ||||
Beginning balance | 5,506 | 1,918 | 1,718 | 2,130 |
Changes in unrealized gains | 0 | 0 | 4,028 | 0 |
Realized (gains) losses reclassified to earnings | (192) | (101) | (432) | (313) |
Ending balance | 5,314 | 1,817 | 5,314 | 1,817 |
Unrealized Losses on Defined Benefit Plans | ||||
AOCI, Net of Tax | ||||
Beginning balance | (1,600) | (3,664) | (1,743) | (4,040) |
Changes in unrealized gains | 0 | 0 | 0 | 0 |
Realized (gains) losses reclassified to earnings | 72 | 188 | 215 | 564 |
Ending balance | $ (1,528) | $ (3,476) | $ (1,528) | $ (3,476) |
Guarantees - Guarantees Outstan
Guarantees - Guarantees Outstanding (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Guarantees | ||
Guarantor obligations | $ 707,304 | $ 689,080 |
Parent Company | ||
Guarantees | ||
Guarantor obligations | 681,862 | 672,530 |
Parent Company | Distribution | ||
Guarantees | ||
Guarantor obligations | 297,577 | 251,023 |
Parent Company | Power supply | ||
Guarantees | ||
Guarantor obligations | 372,048 | 415,984 |
Parent Company | Statewide and associate | ||
Guarantees | ||
Guarantor obligations | 12,237 | 5,523 |
NCSC | ||
Guarantees | ||
Guarantor obligations | 25,442 | 16,550 |
Variable interest entity, primary beneficiary | ||
Guarantees | ||
Guarantor obligations | 25,442 | 16,550 |
Variable interest entity, primary beneficiary | Statewide and associate | ||
Guarantees | ||
Guarantor obligations | 10,000 | 3,000 |
Long-term tax-exempt bonds | ||
Guarantees | ||
Guarantor obligations | 123,775 | 145,025 |
Letters of credit | ||
Guarantees | ||
Guarantor obligations | 425,917 | 389,735 |
Other guarantees | ||
Guarantees | ||
Guarantor obligations | $ 157,612 | $ 154,320 |
Guarantees - Additional Informa
Guarantees - Additional Information (Details) - USD ($) | Feb. 28, 2022 | May 31, 2021 |
Guarantees | ||
Guarantor obligations | $ 707,304,000 | $ 689,080,000 |
Guarantee obligations unsecured | $ 439,000,000 | $ 415,000,000 |
Percentage of total commitment | 62.00% | 60.00% |
Guarantee liability recorded | $ 13,000,000 | $ 10,000,000 |
Guaranty liabilities | 12,000,000 | 9,000,000 |
Long-term tax-exempt bonds | ||
Guarantees | ||
Guarantor obligations | 123,775,000 | 145,025,000 |
Letters of credit | ||
Guarantees | ||
Guarantor obligations | 425,917,000 | 389,735,000 |
Guarantee obligations secured | 120,000,000 | 104,000,000 |
Master letter of credit | Master letter of credit | ||
Guarantees | ||
Maximum additional amount potentially required to be issued | 91,000,000 | |
Other guarantees | ||
Guarantees | ||
Guarantor obligations | 157,612,000 | 154,320,000 |
Guarantor obligations, maximum exposure, undiscounted | 158,000,000 | 154,000,000 |
Other secured guarantees | ||
Guarantees | ||
Guarantor obligations, maximum exposure, undiscounted | 25,000,000 | 25,000,000 |
Financial standby letter of credit | Adjustable and floating rate tax exempt bonds | ||
Guarantees | ||
Guarantor obligations | $ 0 | $ 0 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 | Feb. 28, 2021 |
Assets: | |||
Cash and cash equivalents | $ 104,248 | $ 295,063 | |
Cash and cash equivalents | 104,248 | 295,063 | |
Restricted cash | 6,530 | 8,298 | |
Equity securities, at fair value | 35,358 | 35,102 | |
Debt securities trading, at fair value | 565,426 | 576,175 | |
Deferred compensation investments | 7,084 | 7,222 | |
Loans to members, net | 29,446,995 | 28,341,429 | $ 28,235,469 |
Loans to members, net | 29,935,210 | 29,967,692 | |
Accrued interest receivable | 110,484 | 107,856 | |
Derivative assets | 50,901 | 121,259 | |
Total financial assets | 30,327,026 | 29,492,404 | |
Total financial assets | 30,815,241 | 31,118,667 | |
Liabilities: | |||
Short-term borrowings | 4,428,057 | 4,582,096 | |
Short-term borrowings | 4,426,727 | 4,582,329 | |
Long-term debt | 21,521,734 | 20,603,123 | |
Long-term debt | 21,850,664 | 21,799,736 | |
Accrued interest payable | 171,406 | 123,672 | |
Guarantee liability | 12,758 | 10,041 | |
Guarantee liability | 13,402 | 10,841 | |
Derivative liabilities | 391,988 | 584,989 | |
Subordinated deferrable debt | 986,466 | 986,315 | |
Subordinated deferrable debt | 1,008,253 | 1,062,748 | |
Members’ subordinated certificates | 1,233,836 | 1,254,660 | |
Members’ subordinated certificates | 1,233,836 | 1,254,660 | |
Total financial liabilities | 28,746,245 | 28,144,896 | |
Total financial liabilities | 29,096,276 | 29,418,975 | |
Level 1 | |||
Assets: | |||
Cash and cash equivalents | 104,248 | 295,063 | |
Restricted cash | 6,530 | 8,298 | |
Equity securities, at fair value | 35,358 | 35,102 | |
Debt securities trading, at fair value | 0 | 0 | |
Deferred compensation investments | 7,084 | 7,222 | |
Loans to members, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Derivative assets | 0 | 0 | |
Total financial assets | 153,220 | 345,685 | |
Liabilities: | |||
Short-term borrowings | 0 | 0 | |
Long-term debt | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Guarantee liability | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Subordinated deferrable debt | 253,600 | 265,200 | |
Members’ subordinated certificates | 0 | 0 | |
Total financial liabilities | 253,600 | 265,200 | |
Level 2 | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Equity securities, at fair value | 0 | 0 | |
Debt securities trading, at fair value | 565,426 | 576,175 | |
Deferred compensation investments | 0 | 0 | |
Loans to members, net | 0 | 0 | |
Accrued interest receivable | 110,484 | 107,856 | |
Derivative assets | 50,901 | 121,259 | |
Total financial assets | 726,811 | 805,290 | |
Liabilities: | |||
Short-term borrowings | 4,426,727 | 4,582,329 | |
Long-term debt | 12,922,319 | 12,476,073 | |
Accrued interest payable | 171,406 | 123,672 | |
Guarantee liability | 0 | 0 | |
Derivative liabilities | 391,988 | 584,989 | |
Subordinated deferrable debt | 754,653 | 797,548 | |
Members’ subordinated certificates | 0 | 0 | |
Total financial liabilities | 18,667,093 | 18,564,611 | |
Level 3 | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Equity securities, at fair value | 0 | 0 | |
Debt securities trading, at fair value | 0 | 0 | |
Deferred compensation investments | 0 | 0 | |
Loans to members, net | 29,935,210 | 29,967,692 | |
Accrued interest receivable | 0 | 0 | |
Derivative assets | 0 | 0 | |
Total financial assets | 29,935,210 | 29,967,692 | |
Liabilities: | |||
Short-term borrowings | 0 | 0 | |
Long-term debt | 8,928,345 | 9,323,663 | |
Accrued interest payable | 0 | 0 | |
Guarantee liability | 13,402 | 10,841 | |
Derivative liabilities | 0 | 0 | |
Subordinated deferrable debt | 0 | 0 | |
Members’ subordinated certificates | 1,233,836 | 1,254,660 | |
Total financial liabilities | $ 10,175,583 | $ 10,589,164 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | $ 35,358 | $ 35,102 |
Debt securities trading, at fair value | 565,426 | 576,175 |
Deferred compensation investments | 7,084 | 7,222 |
Derivative assets | 50,901 | 121,259 |
Derivative liabilities | 391,988 | 584,989 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 35,358 | 35,102 |
Debt securities trading, at fair value | 0 | 0 |
Deferred compensation investments | 7,084 | 7,222 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 0 | 0 |
Debt securities trading, at fair value | 565,426 | 576,175 |
Deferred compensation investments | 0 | 0 |
Derivative assets | 50,901 | 121,259 |
Derivative liabilities | 391,988 | 584,989 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 35,358 | 35,102 |
Debt securities trading, at fair value | 565,426 | 576,175 |
Deferred compensation investments | 7,084 | 7,222 |
Derivative assets | 50,901 | 121,259 |
Derivative liabilities | 391,988 | 584,989 |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 35,358 | 35,102 |
Debt securities trading, at fair value | 0 | 0 |
Deferred compensation investments | 7,084 | 7,222 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, at fair value | 0 | 0 |
Debt securities trading, at fair value | 565,426 | 576,175 |
Deferred compensation investments | 0 | 0 |
Derivative assets | 50,901 | 121,259 |
Derivative liabilities | $ 391,988 | $ 584,989 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) | Feb. 28, 2022USD ($)borrower | May 31, 2021USD ($)borrower | Feb. 28, 2021USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | $ 30,815,241,000 | $ 31,118,667,000 | |
Total financial liabilities | 29,096,276,000 | 29,418,975,000 | |
Total loans outstanding | $ 29,508,363,000 | $ 28,415,107,000 | $ 28,315,671,000 |
Number of borrowers | borrower | 885 | 892 | |
Loans, fair value | $ 29,935,210,000 | $ 29,967,692,000 | |
Nonperforming financial instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans outstanding | $ 207,254,000 | $ 237,497,000 | |
Number of borrowers | borrower | 2 | 4 | |
Nonperforming financial instruments | Collateral-dependent loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans outstanding | $ 0 | ||
RTFC | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans outstanding | 457,740,000 | $ 420,383,000 | |
RTFC | Nonperforming financial instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans outstanding | 0 | $ 9,185,000 | |
Number of borrowers | borrower | 2 | ||
RTFC | Nonperforming financial instruments | Collateral-dependent loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans outstanding | $ 9,000,000 | ||
Number of borrowers | borrower | 2 | ||
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 29,935,210,000 | $ 29,967,692,000 | |
Total financial liabilities | 10,175,583,000 | 10,589,164,000 | |
Loans, fair value | 29,935,210,000 | 29,967,692,000 | |
Level 3 | Recurring basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total financial assets | 0 | 0 | |
Total financial liabilities | $ 0 | $ 0 | |
Level 3 | RTFC | Nonperforming financial instruments | Fair value, nonrecurring | Collateral-dependent loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans, fair value | $ 6,000,000 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Details) | Feb. 28, 2022USD ($)vote |
Revolving credit agreements | |
Variable Interest Entity [Line Items] | |
Variable interest entity, maximum borrowing capacity | $ 2,600,000,000 |
Variable interest entity, primary beneficiary | |
Variable Interest Entity [Line Items] | |
Maximum potential exposure credit enhancements | $ 32,000,000 |
Variable interest entity, primary beneficiary | NCSC | |
Variable Interest Entity [Line Items] | |
Number of directors for whom nomination process is controlled | vote | 1 |
Number of votes per member for election of directors | vote | 1 |
Variable interest entity, primary beneficiary | NCSC | Revolving credit agreements | |
Variable Interest Entity [Line Items] | |
Variable interest entity, maximum borrowing capacity | $ 1,500,000,000 |
Variable interest entity, primary beneficiary | NCSC | Revolving term loan | |
Variable Interest Entity [Line Items] | |
Variable interest entity, maximum borrowing capacity | $ 1,500,000,000 |
Variable interest entity, primary beneficiary | RTFC | |
Variable Interest Entity [Line Items] | |
Number of votes per member for election of directors | vote | 1 |
Variable interest entity, primary beneficiary | RTFC | Revolving credit agreements | |
Variable Interest Entity [Line Items] | |
Variable interest entity, maximum borrowing capacity | $ 1,000,000,000 |
Variable interest entity, primary beneficiary | RTFC | Revolving term loan | |
Variable Interest Entity [Line Items] | |
Variable interest entity, maximum borrowing capacity | $ 1,500,000,000 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated Assets and Liabilities of VIEs included in CFCs Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 | Feb. 28, 2021 |
Variable Interest Entity [Line Items] | |||
Loans outstanding | $ 29,520,381 | $ 28,327,481 | |
Other assets | 28,847 | $ 24,102 | |
Total assets | 30,483,522 | 29,638,363 | $ 29,414,988 |
Total liabilities | 28,830,927 | 28,238,484 | |
Variable interest entity, primary beneficiary | |||
Variable Interest Entity [Line Items] | |||
Loans outstanding | 1,187,887 | 1,127,251 | |
Other assets | 9,094 | 11,343 | |
Total assets | 1,196,981 | 1,138,594 | |
Total liabilities | $ 25,221 | $ 30,187 |
Variable Interest Entities - In
Variable Interest Entities - Information on CFCs Credit Commitments to NCSC and RTFC (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 |
Variable Interest Entity [Line Items] | ||
CFC third-party guarantees | $ 707,304 | $ 689,080 |
Variable interest entity, primary beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total CFC credit commitments | 5,500,000 | 5,500,000 |
Borrowings payable to CFC | 1,166,731 | 1,107,185 |
CFC third-party guarantees | 25,442 | 16,550 |
Other credit enhancements | 6,273 | 8,386 |
Total credit enhancements | 31,715 | 24,936 |
Total outstanding commitments | 1,198,446 | 1,132,121 |
CFC credit commitments available | $ 4,301,554 | $ 4,367,879 |
Business Segments - Segment Res
Business Segments - Segment Results and Total Assets (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Feb. 28, 2022USD ($) | Feb. 28, 2021USD ($) | Feb. 28, 2022USD ($)segment | Feb. 28, 2021USD ($) | Nov. 30, 2021USD ($) | May 31, 2021USD ($) | Nov. 30, 2020USD ($) | May 31, 2020USD ($) | |
Segment Information | ||||||||
Number of operating segments | segment | 3 | |||||||
Statement of operations: | ||||||||
Interest income | $ 285,206 | $ 278,172 | $ 851,626 | $ 834,255 | ||||
Interest expense | (173,654) | (173,040) | (522,027) | (527,438) | ||||
Derivative cash settlements interest expense | 0 | 0 | 0 | 0 | ||||
Interest expense | (173,654) | (173,040) | (522,027) | (527,438) | ||||
Net interest income | 111,552 | 105,132 | 329,599 | 306,817 | ||||
Benefit for credit losses | 12,749 | (33,023) | 12,146 | (34,987) | ||||
Net interest income after benefit (provision) for credit losses | 124,301 | 72,109 | 341,745 | 271,830 | ||||
Non-interest income: | ||||||||
Fee and other income | 4,270 | 3,819 | 13,042 | 13,667 | ||||
Derivative forward value gains | 122,930 | 558,266 | ||||||
Derivative gains | 169,280 | 330,196 | 43,203 | 471,759 | ||||
Investment securities losses | (11,621) | (2,807) | (18,190) | 491 | ||||
Total non-interest income | 161,929 | 331,208 | 38,055 | 485,917 | ||||
Non-interest expense: | ||||||||
General and administrative expenses | (23,079) | (23,562) | (70,384) | (70,361) | ||||
Losses on early extinguishment of debt | (578) | 0 | (696) | (1,455) | ||||
Other non-interest expense | (265) | (301) | (834) | (956) | ||||
Total non-interest expense | (23,922) | (23,863) | (71,914) | (72,772) | ||||
Income before income taxes | 262,308 | 379,454 | 307,886 | 684,975 | ||||
Income tax provision | (343) | (507) | (524) | (920) | ||||
Net income | 261,965 | 378,947 | 307,362 | 684,055 | ||||
Assets: | ||||||||
Total loans outstanding | 29,508,363 | 28,315,671 | 29,508,363 | 28,315,671 | $ 28,415,107 | |||
Deferred loan origination costs | 12,018 | 11,810 | 12,018 | 11,810 | ||||
Loans to members | 29,520,381 | 28,327,481 | 29,520,381 | 28,327,481 | ||||
Less: Allowance for credit losses | (73,386) | (92,012) | (73,386) | (92,012) | $ (86,135) | (85,532) | $ (58,989) | $ (53,125) |
Loans to members, net | 29,446,995 | 28,235,469 | 29,446,995 | 28,235,469 | 28,341,429 | |||
Other assets | 1,036,527 | 1,179,519 | 1,036,527 | 1,179,519 | ||||
Total assets | 30,483,522 | 29,414,988 | 30,483,522 | 29,414,988 | $ 29,638,363 | |||
Interest rate swaps | ||||||||
Statement of operations: | ||||||||
Interest expense | (26,212) | (29,735) | (79,727) | (86,507) | ||||
Derivative cash settlements interest expense | (26,212) | (29,735) | (79,727) | (86,507) | ||||
Non-interest income: | ||||||||
Derivative forward value gains | 195,492 | 359,931 | 122,930 | 558,266 | ||||
Derivative gains | 169,280 | 330,196 | 43,203 | 471,759 | ||||
Operating segments | ||||||||
Statement of operations: | ||||||||
Interest income | 293,979 | 287,054 | 877,843 | 861,139 | ||||
Interest expense | (182,427) | (181,922) | (548,244) | (554,322) | ||||
Derivative cash settlements interest expense | (26,212) | (29,735) | (79,727) | (86,507) | ||||
Interest expense | (208,639) | (211,657) | (627,971) | (640,829) | ||||
Net interest income | 85,340 | 75,397 | 249,872 | 220,310 | ||||
Benefit for credit losses | 12,751 | (36,611) | 15,005 | (37,468) | ||||
Net interest income after benefit (provision) for credit losses | 98,091 | 38,786 | 264,877 | 182,842 | ||||
Non-interest income: | ||||||||
Fee and other income | 6,275 | 9,367 | 16,763 | 21,825 | ||||
Derivative gains | 0 | 0 | 0 | 0 | ||||
Investment securities losses | (11,621) | (2,807) | (18,190) | 491 | ||||
Total non-interest income | (5,346) | 6,560 | (1,427) | 22,316 | ||||
Non-interest expense: | ||||||||
General and administrative expenses | (24,674) | (25,083) | (75,170) | (75,068) | ||||
Losses on early extinguishment of debt | (578) | (696) | (1,455) | |||||
Other non-interest expense | (677) | (740) | (2,628) | (1,926) | ||||
Total non-interest expense | (25,929) | (25,823) | (78,494) | (78,449) | ||||
Income before income taxes | 66,816 | 19,523 | 184,956 | 126,709 | ||||
Income tax provision | (343) | (507) | (524) | (920) | ||||
Net income | 66,473 | 19,016 | 184,432 | 125,789 | ||||
Assets: | ||||||||
Total loans outstanding | 30,675,094 | 29,447,080 | 30,675,094 | 29,447,080 | ||||
Deferred loan origination costs | 12,018 | 11,810 | 12,018 | 11,810 | ||||
Loans to members | 30,687,112 | 29,458,890 | 30,687,112 | 29,458,890 | ||||
Less: Allowance for credit losses | (76,596) | (100,180) | (76,596) | (100,180) | ||||
Loans to members, net | 30,610,516 | 29,358,710 | 30,610,516 | 29,358,710 | ||||
Other assets | 1,123,550 | 1,277,543 | 1,123,550 | 1,277,543 | ||||
Total assets | 31,734,066 | 30,636,253 | 31,734,066 | 30,636,253 | ||||
Operating segments | Interest rate swaps | ||||||||
Statement of operations: | ||||||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Non-interest income: | ||||||||
Derivative forward value gains | 0 | 0 | 0 | 0 | ||||
Reclasses and adjustments | ||||||||
Statement of operations: | ||||||||
Interest income | 0 | 0 | 0 | 0 | ||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Derivative cash settlements interest expense | 26,212 | 29,735 | 79,727 | 86,507 | ||||
Interest expense | 26,212 | 29,735 | 79,727 | 86,507 | ||||
Net interest income | 26,212 | 29,735 | 79,727 | 86,507 | ||||
Benefit for credit losses | 0 | 0 | 0 | 0 | ||||
Net interest income after benefit (provision) for credit losses | 26,212 | 29,735 | 79,727 | 86,507 | ||||
Non-interest income: | ||||||||
Fee and other income | 0 | 0 | 0 | 0 | ||||
Derivative gains | 169,280 | 330,196 | 43,203 | 471,759 | ||||
Investment securities losses | 0 | 0 | 0 | 0 | ||||
Total non-interest income | 169,280 | 330,196 | 43,203 | 471,759 | ||||
Non-interest expense: | ||||||||
General and administrative expenses | 0 | 0 | 0 | 0 | ||||
Losses on early extinguishment of debt | 0 | 0 | 0 | |||||
Other non-interest expense | 0 | 0 | 0 | 0 | ||||
Total non-interest expense | 0 | 0 | 0 | 0 | ||||
Income before income taxes | 195,492 | 359,931 | 122,930 | 558,266 | ||||
Income tax provision | 0 | 0 | 0 | 0 | ||||
Net income | 195,492 | 359,931 | 122,930 | 558,266 | ||||
Assets: | ||||||||
Total loans outstanding | 0 | 0 | 0 | 0 | ||||
Deferred loan origination costs | 0 | 0 | 0 | 0 | ||||
Loans to members | 0 | 0 | 0 | 0 | ||||
Less: Allowance for credit losses | 0 | 0 | 0 | 0 | ||||
Loans to members, net | 0 | 0 | 0 | 0 | ||||
Other assets | 0 | 0 | 0 | 0 | ||||
Total assets | 0 | 0 | 0 | 0 | ||||
Reclasses and adjustments | Interest rate swaps | ||||||||
Statement of operations: | ||||||||
Interest expense | (26,212) | (29,735) | (79,727) | (86,507) | ||||
Non-interest income: | ||||||||
Derivative forward value gains | 195,492 | 359,931 | 122,930 | 558,266 | ||||
Intersegment eliminations | ||||||||
Statement of operations: | ||||||||
Interest income | (8,773) | (8,882) | (26,217) | (26,884) | ||||
Interest expense | 8,773 | 8,882 | 26,217 | 26,884 | ||||
Derivative cash settlements interest expense | 0 | 0 | 0 | 0 | ||||
Interest expense | 8,773 | 8,882 | 26,217 | 26,884 | ||||
Net interest income | 0 | 0 | 0 | 0 | ||||
Benefit for credit losses | (2) | 3,588 | (2,859) | 2,481 | ||||
Net interest income after benefit (provision) for credit losses | (2) | 3,588 | (2,859) | 2,481 | ||||
Non-interest income: | ||||||||
Fee and other income | (2,005) | (5,548) | (3,721) | (8,158) | ||||
Derivative gains | 0 | 0 | 0 | 0 | ||||
Investment securities losses | 0 | 0 | 0 | 0 | ||||
Total non-interest income | (2,005) | (5,548) | (3,721) | (8,158) | ||||
Non-interest expense: | ||||||||
General and administrative expenses | 1,595 | 1,521 | 4,786 | 4,707 | ||||
Losses on early extinguishment of debt | 0 | 0 | 0 | |||||
Other non-interest expense | 412 | 439 | 1,794 | 970 | ||||
Total non-interest expense | 2,007 | 1,960 | 6,580 | 5,677 | ||||
Income before income taxes | 0 | 0 | 0 | 0 | ||||
Income tax provision | 0 | 0 | 0 | 0 | ||||
Net income | 0 | 0 | 0 | 0 | ||||
Assets: | ||||||||
Total loans outstanding | (1,166,731) | (1,131,409) | (1,166,731) | (1,131,409) | ||||
Deferred loan origination costs | 0 | 0 | 0 | 0 | ||||
Loans to members | (1,166,731) | (1,131,409) | (1,166,731) | (1,131,409) | ||||
Less: Allowance for credit losses | 3,210 | 8,168 | 3,210 | 8,168 | ||||
Loans to members, net | (1,163,521) | (1,123,241) | (1,163,521) | (1,123,241) | ||||
Other assets | (87,023) | (98,024) | (87,023) | (98,024) | ||||
Total assets | (1,250,544) | (1,221,265) | (1,250,544) | (1,221,265) | ||||
Intersegment eliminations | Interest rate swaps | ||||||||
Statement of operations: | ||||||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Non-interest income: | ||||||||
Derivative forward value gains | 0 | 0 | 0 | 0 | ||||
CFC | Operating segments | ||||||||
Statement of operations: | ||||||||
Interest income | 283,162 | 276,153 | 845,600 | 828,222 | ||||
Interest expense | (173,654) | (173,039) | (522,027) | (527,437) | ||||
Derivative cash settlements interest expense | (25,802) | (29,307) | (78,480) | (85,240) | ||||
Interest expense | (199,456) | (202,346) | (600,507) | (612,677) | ||||
Net interest income | 83,706 | 73,807 | 245,093 | 215,545 | ||||
Benefit for credit losses | 12,749 | (33,023) | 12,146 | (34,987) | ||||
Net interest income after benefit (provision) for credit losses | 96,455 | 40,784 | 257,239 | 180,558 | ||||
Non-interest income: | ||||||||
Fee and other income | 5,590 | 5,059 | 17,006 | 17,347 | ||||
Derivative gains | 0 | 0 | 0 | 0 | ||||
Investment securities losses | (11,621) | (2,807) | (18,190) | 491 | ||||
Total non-interest income | (6,031) | 2,252 | (1,184) | 17,838 | ||||
Non-interest expense: | ||||||||
General and administrative expenses | (22,690) | (23,174) | (69,060) | (69,124) | ||||
Losses on early extinguishment of debt | (578) | (696) | (1,455) | |||||
Other non-interest expense | (265) | (301) | (834) | (956) | ||||
Total non-interest expense | (23,533) | (23,475) | (70,590) | (71,535) | ||||
Income before income taxes | 66,891 | 19,561 | 185,465 | 126,861 | ||||
Income tax provision | 0 | 0 | 0 | 0 | ||||
Net income | 66,891 | 19,561 | 185,465 | 126,861 | ||||
Assets: | ||||||||
Total loans outstanding | 29,487,207 | 28,294,236 | 29,487,207 | 28,294,236 | ||||
Deferred loan origination costs | 12,018 | 11,810 | 12,018 | 11,810 | ||||
Loans to members | 29,499,225 | 28,306,046 | 29,499,225 | 28,306,046 | ||||
Less: Allowance for credit losses | (73,386) | (92,012) | (73,386) | (92,012) | ||||
Loans to members, net | 29,425,839 | 28,214,034 | 29,425,839 | 28,214,034 | ||||
Other assets | 1,027,433 | 1,169,521 | 1,027,433 | 1,169,521 | ||||
Total assets | 30,453,272 | 29,383,555 | 30,453,272 | 29,383,555 | ||||
CFC | Operating segments | Interest rate swaps | ||||||||
Statement of operations: | ||||||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Non-interest income: | ||||||||
Derivative forward value gains | 0 | 0 | 0 | 0 | ||||
NCSC and RTFC | Operating segments | ||||||||
Statement of operations: | ||||||||
Interest income | 10,817 | 10,901 | 32,243 | 32,917 | ||||
Interest expense | (8,773) | (8,883) | (26,217) | (26,885) | ||||
Derivative cash settlements interest expense | (410) | (428) | (1,247) | (1,267) | ||||
Interest expense | (9,183) | (9,311) | (27,464) | (28,152) | ||||
Net interest income | 1,634 | 1,590 | 4,779 | 4,765 | ||||
Benefit for credit losses | 2 | (3,588) | 2,859 | (2,481) | ||||
Net interest income after benefit (provision) for credit losses | 1,636 | (1,998) | 7,638 | 2,284 | ||||
Non-interest income: | ||||||||
Fee and other income | 685 | 4,308 | (243) | 4,478 | ||||
Derivative gains | 0 | 0 | 0 | 0 | ||||
Investment securities losses | 0 | 0 | 0 | 0 | ||||
Total non-interest income | 685 | 4,308 | (243) | 4,478 | ||||
Non-interest expense: | ||||||||
General and administrative expenses | (1,984) | (1,909) | (6,110) | (5,944) | ||||
Losses on early extinguishment of debt | 0 | 0 | 0 | |||||
Other non-interest expense | (412) | (439) | (1,794) | (970) | ||||
Total non-interest expense | (2,396) | (2,348) | (7,904) | (6,914) | ||||
Income before income taxes | (75) | (38) | (509) | (152) | ||||
Income tax provision | (343) | (507) | (524) | (920) | ||||
Net income | (418) | (545) | (1,033) | (1,072) | ||||
Assets: | ||||||||
Total loans outstanding | 1,187,887 | 1,152,844 | 1,187,887 | 1,152,844 | ||||
Deferred loan origination costs | 0 | 0 | 0 | 0 | ||||
Loans to members | 1,187,887 | 1,152,844 | 1,187,887 | 1,152,844 | ||||
Less: Allowance for credit losses | (3,210) | (8,168) | (3,210) | (8,168) | ||||
Loans to members, net | 1,184,677 | 1,144,676 | 1,184,677 | 1,144,676 | ||||
Other assets | 96,117 | 108,022 | 96,117 | 108,022 | ||||
Total assets | 1,280,794 | 1,252,698 | 1,280,794 | 1,252,698 | ||||
NCSC and RTFC | Operating segments | Interest rate swaps | ||||||||
Statement of operations: | ||||||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Non-interest income: | ||||||||
Derivative forward value gains | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | May 31, 2021 | Feb. 28, 2021 |
Subsequent Event [Line Items] | |||
Total loans outstanding | $ 29,508,363 | $ 28,415,107 | $ 28,315,671 |
Parent Company | |||
Subsequent Event [Line Items] | |||
Total loans outstanding | 28,320,476 | 27,287,856 | |
Parent Company | Power supply | |||
Subsequent Event [Line Items] | |||
Total loans outstanding | 4,992,073 | $ 5,154,312 | |
Parent Company | Brazos Sandy Creek | Power supply | |||
Subsequent Event [Line Items] | |||
Total loans outstanding | $ 28,000 |