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

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(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.