Members' Subordinated Certificates (Tables)

12 Months Ended

May 31, 2023

Members' subordinated certificates

Schedule of subordinated borrowing

The following table presents, by issuance, subordinated deferrable debt outstanding and the weighted-average interest rates as of May 31, 2023 and 2022.

Table 8.1: Subordinated Deferrable Debt Outstanding and Weighted-Average Interest Rates

	May 31,
	2023				2022				Maturity and Call Dates
(Dollars in thousands)	Outstanding Amount		Weighted- Average Interest Rate		Outstanding Amount		Weighted-Average Interest Rate		Term in Years	Maturity	Call Date
Issuances of subordinated notes:
Variable issuance 2013	$	400,000	8.21	%	$	400,000	4.75	%	30	2043	April 30, 2023
5.25% issuance 2016	350,000		5.25		350,000		5.25		30	2046	April 20, 2026
5.50% issuance 2019	250,000		5.50		250,000		5.50		45	2064	May 15, 2024
7.125% issuance 2023	300,000		7.13		—		—		30	2053	June 15, 2028
Total aggregate principal amount	1,300,000				1,000,000
Debt issuance costs	(16,564)				(13,482)
Total subordinated deferrable debt	$	1,283,436	6.64		$	986,518	5.11

Schedule of amount of members' subordinated certificates maturing in each of the five fiscal years

The following table presents the principal amount of long-term debt maturing in each of the five fiscal years subsequent to May 31, 2023 and thereafter.

Table 7.2: Long-Term Debt—Maturities and Weighted-Average Interest Rates

(Dollars in thousands)	Maturity Amount		Weighted-Average Interest Rate
2024	$	2,277,050	3.00	%
2025	2,286,088		2.73
2026	3,527,228		3.77
2027	1,631,434		2.11
2028	2,156,615		3.74
Thereafter	12,303,992		3.68
Total	$	24,182,407	3.44

Subordinated certificates

Members' subordinated certificates

Schedule of subordinated borrowing

The following table displays members’ subordinated certificates and the weighted-average interest rates as of May 31, 2023 and 2022.

Table 9.1: Members’ Subordinated Certificates Outstanding and Weighted-Average Interest Rates

	May 31,
	2023				2022
(Dollars in thousands)	Amounts Outstanding		Weighted- Average Interest Rate		Amounts Outstanding		Weighted- Average Interest Rate
Membership subordinated certificates:
Certificates maturing 2025 through 2119	$	628,595			$	628,591
Subscribed and unissued (1)	19				12
Total membership subordinated certificates	628,614		4.94	%	628,603		4.95	%
Loan and guarantee subordinated certificates:
Interest-bearing loan subordinated certificates maturing through 2045	208,192				216,266
Non-interest-bearing loan subordinated certificates maturing through 2047	112,978				121,744
Subscribed and unissued (1)	41				45
Total loan subordinated certificates	321,211		2.65		338,055		2.64
Interest-bearing guarantee subordinated certificates maturing through 2044	27,138		5.91		27,333		5.90
Total loan and guarantee subordinated certificates	348,349		2.91		365,388		2.88
Member capital securities:
Securities maturing through 2052	246,163		5.01		240,170		5.00
Total members’ subordinated certificates	$	1,223,126	4.38		$	1,234,161	4.35

___________________________

(1) The subscribed and unissued subordinated certificates represent subordinated certificates that members are required to purchase. Upon collection of full payment of the subordinated certificate amount, the certificate will be reclassified from subscribed and unissued to outstanding.

Schedule of amount of members' subordinated certificates maturing in each of the five fiscal years

The following table presents the amount of members’ subordinated certificates maturing in each of the five fiscal years subsequent to May 31, 2023 and thereafter.

Table 9.2: Members’ Subordinated Certificate Maturities and Weighted-Average Interest Rates

(Dollars in thousands)	Amount Maturing(1)		Weighted-Average Interest Rate
2024	$	5,861	2.22	%
2025	7,481		2.71
2026	63,078		3.24
2027	8,052		2.00
2028	5,487		3.04
Thereafter	1,133,107		4.49
Total	$	1,223,066	4.38

___________________________

(1)Excludes $0.06 million in subscribed and unissued member subordinated certificates for which a payment has been received, but no certificate has been issued. Amortizing member loan subordinated certificates totaling $159 million are amortizing annually based on the unpaid principal balance of the related loan. Amortization payments on these certificates totaled $12 million in fiscal year 2023 and represented 8% of amortizing loan subordinated certificates outstanding.