Business Segments (Tables)

9 Months Ended

Feb. 28, 2026

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 Q3 FY2026, YTD FY2026, Q3 FY2025 and YTD FY2025, assets attributable to each segment as of February 28, 2026 and February 28, 2025 and a reconciliation of total segment amounts to our consolidated total amounts.

Table 14.1: Business Segment Information

	Q3 FY2026
(Dollars in thousands)	CFC		NCSC		Segments Total		Reclasses and Adjustments(1)		Intersegment Eliminations(2)		Consolidated Total
Results of operations:
Interest income	$	446,767	$	23,782	$	470,549	$	—	$	(20,979)	$	449,570
Interest expense	(369,919)		(21,070)		(390,989)		—		20,979		(370,010)
Derivative cash settlements interest income (expense)	12,668		(76)		12,592		(12,592)		—		—
Interest expense(3) (4)	(357,251)		(21,146)		(378,397)		(12,592)		20,979		(370,010)
Net interest income	89,516		2,636		92,152		(12,592)		—		79,560
Benefit (provision) for credit losses	7,405		(637)		6,768		—		637		7,405
Net interest income after benefit (provision) for credit losses	96,921		1,999		98,920		(12,592)		637		86,965
Non-interest income (loss):
Fee and other income	8,241		1,943		10,184		—		(3,388)		6,796
Derivative gains (losses):
Derivative cash settlements interest income	—		—		—		12,592		—		12,592
Derivative forward value losses	—		—		—		(44,962)		—		(44,962)
Derivative losses	—		—		—		(32,370)		—		(32,370)
Investment securities losses	(142)		—		(142)		—		—		(142)
Total non-interest income (loss)	8,099		1,943		10,042		(32,370)		(3,388)		(25,716)
Non-interest expense:
Salaries and employee benefits(3)	(19,970)		(66)		(20,036)		—		—		(20,036)
Consulting(3)	(3,139)		(44)		(3,183)		—		—		(3,183)
Depreciation and amortization(3)	(3,362)		—		(3,362)		—		—		(3,362)
Other non-interest expense(5)	(11,189)		(3,331)		(14,520)		—		2,751		(11,769)
Total non-interest expense	(37,660)		(3,441)		(41,101)		—		2,751		(38,350)
Income before income taxes	67,360		501		67,861		(44,962)		—		22,899
Income tax provision	—		(162)		(162)		—		—		(162)
Net income(6)	$	67,360	$	339	$	67,699	$	(44,962)	$	—	$	22,737

	Q3 FY2025
(Dollars in thousands)	CFC		NCSC		Segments Total		Reclasses and Adjustments(1)		Intersegment Eliminations(2)		Consolidated Total
Results of operations:
Interest income	$	426,442	$	21,711	$	448,153	$	—	$	(19,293)	$	428,860
Interest expense	(361,847)		(19,364)		(381,211)		—		19,293		(361,918)
Derivative cash settlements interest income (expense)	20,343		(34)		20,309		(20,309)		—		—
Interest expense(3) (4)	(341,504)		(19,398)		(360,902)		(20,309)		19,293		(361,918)
Net interest income	84,938		2,313		87,251		(20,309)		—		66,942
Benefit (provision) for credit losses	6,093		(276)		5,817		—		276		6,093
Net interest income after benefit (provision) for credit losses	91,031		2,037		93,068		(20,309)		276		73,035
Non-interest income:
Fee and other income	7,241		1,347		8,588		—		(2,606)		5,982
Derivative gains:
Derivative cash settlements interest income	—		—		—		20,309		—		20,309
Derivative forward value gains	—		—		—		19,833		—		19,833
Derivative gains	—		—		—		40,142		—		40,142
Investment securities gains	663		—		663		—		—		663
Total non-interest income	7,904		1,347		9,251		40,142		(2,606)		46,787
Non-interest expense:
Salaries and employee benefits(3)	(18,060)		(63)		(18,123)		—		—		(18,123)
Consulting(3)	(2,887)		(57)		(2,944)		—		—		(2,944)
Depreciation and amortization(3)	(3,192)		—		(3,192)		—		—		(3,192)
Other non-interest expense(5)	(8,613)		(3,078)		(11,691)		—		2,330		(9,361)
Total non-interest expense	(32,752)		(3,198)		(35,950)		—		2,330		(33,620)
Income before income taxes	66,183		186		66,369		19,833		—		86,202
Income tax provision	—		(66)		(66)		—		—		(66)
Net income(6)	$	66,183	$	120	$	66,303	$	19,833	$	—	$	86,136

	YTD FY2026
(Dollars in thousands)	CFC		NCSC		Segments Total		Reclasses and Adjustments(1)		Intersegment Eliminations(2)		Consolidated Total
Results of operations:
Interest income	$	1,334,660	$	69,817	$	1,404,477	$	—	$	(61,787)	$	1,342,690
Interest expense	(1,119,870)		(62,062)		(1,181,932)		—		61,787		(1,120,145)
Derivative cash settlements interest income (expense)	50,593		(149)		50,444		(50,444)		—		—
Interest expense(3) (4)	(1,069,277)		(62,211)		(1,131,488)		(50,444)		61,787		(1,120,145)
Net interest income	265,383		7,606		272,989		(50,444)		—		222,545
Benefit (provision) for credit losses	4,597		(1,666)		2,931		—		1,666		4,597
Net interest income after benefit (provision) for credit losses	269,980		5,940		275,920		(50,444)		1,666		227,142
Non-interest income (loss):
Fee and other income	24,859		6,085		30,944		—		(10,386)		20,558
Derivative gains (losses):
Derivative cash settlements interest income	—		—		—		50,444		—		50,444
Derivative forward value losses	—		—		—		(133,659)		—		(133,659)
Derivative losses	—		—		—		(83,215)		—		(83,215)
Investment securities gains	276		—		276		—		—		276
Total non-interest income (loss)	25,135		6,085		31,220		(83,215)		(10,386)		(62,381)
Non-interest expense:
Salaries and employee benefits(3)	(59,073)		(201)		(59,274)		—		—		(59,274)
Consulting(3)	(8,033)		(129)		(8,162)		—		—		(8,162)
Depreciation and amortization(3)	(10,098)		—		(10,098)		—		—		(10,098)
Other non-interest expense(5)	(37,628)		(11,194)		(48,822)		—		8,720		(40,102)
Total non-interest expense	(114,832)		(11,524)		(126,356)		—		8,720		(117,636)
Income before income taxes	180,283		501		180,784		(133,659)		—		47,125
Income tax provision	—		(148)		(148)		—		—		(148)
Net income(6)	$	180,283	$	353	$	180,636	$	(133,659)	$	—	$	46,977
	February 28, 2026
	CFC		NCSC		Segments Total		Reclasses and Adjustments(1)		Intersegment Eliminations(2)		Consolidated Total
Assets:
Total loans outstanding	$	38,717,223	$	1,782,379	$	40,499,602	$	—	$	(1,767,923)	$	38,731,679
Deferred loan origination costs	18,203		—		18,203		—		—		18,203
Loans to members	38,735,426		1,782,379		40,517,805		—		(1,767,923)		38,749,882
Less: Allowance for credit losses	(35,712)		(7,252)		(42,964)		—		7,252		(35,712)
Loans to members, net	38,699,714		1,775,127		40,474,841		—		(1,760,671)		38,714,170
Other assets	1,162,459		33,316		1,195,775		—		(17,012)		1,178,763
Total assets	$	39,862,173	$	1,808,443	$	41,670,616	$	—	$	(1,777,683)	$	39,892,933

	YTD FY2025
(Dollars in thousands)	CFC		NCSC		Segments Total		Reclasses and Adjustments(1)		Intersegment Eliminations(2)		Consolidated Total
Results of operations:
Interest income	$	1,259,727	$	65,549	$	1,325,276	$	—	$	(58,420)	$	1,266,856
Interest expense	(1,072,648)		(58,593)		(1,131,241)		—		58,420		(1,072,821)
Derivative cash settlements interest income	78,760		16		78,776		(78,776)		—		—
Interest expense(3) (4)	(993,888)		(58,577)		(1,052,465)		(78,776)		58,420		(1,072,821)
Net interest income	265,839		6,972		272,811		(78,776)		—		194,035
Benefit (provision) for credit losses	4,270		(793)		3,477		—		793		4,270
Net interest income after benefit (provision) for credit losses	270,109		6,179		276,288		(78,776)		793		198,305
Non-interest income (loss):
Fee and other income	21,335		3,555		24,890		—		(7,816)		17,074
Derivative losses:
Derivative cash settlements interest income	—		—		—		78,776		—		78,776
Derivative forward value losses	—		—		—		(127,921)		—		(127,921)
Derivative losses	—		—		—		(49,145)		—		(49,145)
Investment securities gains	6,891		—		6,891		—		—		6,891
Total non-interest income (loss)	28,226		3,555		31,781		(49,145)		(7,816)		(25,180)
Non-interest expense:
Salaries and employee benefits(3)	(52,565)		(185)		(52,750)		—		—		(52,750)
Consulting(3)	(10,341)		(196)		(10,537)		—		—		(10,537)
Depreciation and amortization(3)	(9,352)		—		(9,352)		—		—		(9,352)
Other non-interest expense(5)	(32,025)		(8,763)		(40,788)		—		7,023		(33,765)
Total non-interest expense	(104,283)		(9,144)		(113,427)		—		7,023		(106,404)
Income before income taxes	194,052		590		194,642		(127,921)		—		66,721
Income tax provision	—		(108)		(108)		—		—		(108)
Net income(6)	$	194,052	$	482	$	194,534	$	(127,921)	$	—	$	66,613
	February 28, 2025
	CFC		NCSC		Segments Total		Reclasses and Adjustments(1)		Intersegment Eliminations(2)		Consolidated Total
Assets:
Total loans outstanding	$	36,449,424	$	1,609,056	$	38,058,480	$	—	$	(1,595,040)	$	36,463,440
Deferred loan origination costs	15,769		—		15,769		—		—		15,769
Loans to members	36,465,193		1,609,056		38,074,249		—		(1,595,040)		36,479,209
Less: Allowance for credit losses	(44,456)		(6,793)		(51,249)		—		6,793		(44,456)
Loans to members, net	36,420,737		1,602,263		38,023,000		—		(1,588,247)		36,434,753
Other assets	1,330,000		27,665		1,357,665		—		(13,675)		1,343,990
Total assets	$	37,750,737	$	1,629,928	$	39,380,665	$	—	$	(1,601,922)	$	37,778,743

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(1)Consists of (i) the reclassification of net periodic derivative settlement interest income (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 (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 to CFC and the interest related to those borrowings, management fees paid by NCSC to CFC and other intercompany amounts, all of which are eliminated in consolidation.

(3)The significant expense categories and amounts align with the segment level information that is regularly provided to the CODM.

(4)Interest expense presented at the segment level is adjusted to include the effects of derivative cash settlement interest income or expense as provided to the CODM.

(5)Other non-interest expense for each segment includes information technology, member relations, board, and other general and administrative expenses. For the NCSC segment, the other non-interest expense also includes the management fee expense paid to CFC pursuant to the management agreement.

(6)Net income (loss) presented at the segment level is adjusted to exclude derivative forward value gains (losses) and is the primary measure used regularly by our CODM to evaluate segment financial performance and allocate resources between segments.