Members' Subordinated Certificates (Tables)

12 Months Ended

May 31, 2026

The following table presents, by issuance, subordinated deferrable debt outstanding and the weighted-average interest rates as of May 31, 2026 and 2025.

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


	May 31,
	2026				2025				Maturity and Call Dates
(Dollars in thousands)	Outstanding Amount		Weighted Average Interest Rate		Outstanding Amount		Weighted Average Interest Rate		Term in Years	Maturity(2)	Call Date
Issuances of subordinated notes:
Variable rate issuance 2013	$	—	—	%	$	300,000	7.45	%	30	2043	April 30, 2023(1)
5.25% issuance 2016	—		—		350,000		5.25		30	2046	April 20, 2026(1)
5.50% issuance 2019	250,000		5.50		250,000		5.50		45	2064	May 15, 2024(1)
7.125% issuance 2023	300,000		7.13		300,000		7.13		30	2053	June 15, 2028
7.125% issuance 2024	100,000		7.13		100,000		7.13		29	2053	June 15, 2028
5.75% issuance 2026	150,000		5.75		—		—		30	2056	January 20, 2031(3)
5.95% issuance 2026	450,000		5.95		—		—		30	2056	January 21, 2036(3)
Subordinated notes	72,956		5.74		43,811		5.75		30	2054-2056	Various(4)
Total aggregate principal amount	1,322,956				1,343,811
Unamortized premiums	3,409				3,450
Debt issuance costs	(16,083)				(17,776)
Total subordinated deferrable debt	$	1,310,282	6.19		$	1,329,485	6.36

___________________________

(1)At any time on or after the call date, the subordinated deferrable debt is redeemable, in whole or in part, at par.

(2)Maturity is presented based on calendar year.

(3)The subordinated notes may be called, in whole or in part, at par on any day during the period commencing 90 days prior to, and including, the first interest rate reset date and then on each interest payment date thereafter. The first interest rate reset date is April 20, 2031 for the 5.75% Notes and April 20, 2036 for the 5.95% Notes.

(4)The subordinated notes may be called, in whole or in part, at par on or after five years from the date of the issuances.

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, 2026 and thereafter.

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


(Dollars in thousands)	Maturity Amount(1)		Weighted-Average Interest Rate
2027	$	4,598,356	3.75	%
2028	5,038,985		4.03
2029	4,597,695		4.11
2030	2,613,770		4.01
2031	1,947,007		3.68
Thereafter	9,744,295		4.08
Total	$	28,540,108	3.99

___________________________

(1)Amounts presented are based on the face amount of debt outstanding as of May 31, 2026, and therefore do not include debt issuance costs and unamortized premiums or discounts.

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, 2026 and 2025.

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


	May 31,
	2026				2025
(Dollars in thousands)	Amounts Outstanding		Weighted- Average Interest Rate		Amounts Outstanding		Weighted- Average Interest Rate
Membership subordinated certificates:
Certificates maturing 2030 through 2119	$	627,254			$	628,617
Subscribed and unissued(1)	18				20
Total membership subordinated certificates	627,272		4.96	%	628,637		4.96	%
Loan and guarantee subordinated certificates:
Interest-bearing loan subordinated certificates maturing through 2045	141,626				192,779
Non-interest-bearing loan subordinated certificates maturing through 2047	85,405				90,378

Total loan subordinated certificates	227,031		2.69		283,157		2.74
Interest-bearing guarantee subordinated certificates maturing through 2044	26,640		5.95		26,757		5.93


Total loan and guarantee subordinated certificates	253,671		3.03		309,914		3.02
Member capital securities:
Securities maturing through 2056	247,297		5.01		246,163		5.01
Total members’ subordinated certificates	$	1,128,240	4.54		$	1,184,714	4.46

___________________________

(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, 2026 and thereafter.

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


(Dollars in thousands)	Amount Maturing(1)		Weighted-Average Interest Rate
2027	$	3,484	3.40	%
2028	4,502		3.54
2029	6,265		2.49
2030	4,384		3.71
2031	64,558		3.31
Thereafter	1,045,029		4.64
Total	$	1,128,222	4.54

___________________________

(1)Excludes $0.02 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 $114 million are amortizing annually based on the unpaid principal balance of the related loan. Amortization payments on these certificates totaled $7 million in FY2026 and represented 6% of amortizing loan subordinated certificates outstanding.