ADDED
Management s Discussion and Analysis of Financial Condition and Results of Operations ( MD A ) 24 Introduction 24 Non-GAAP Financial Measures 24 Executive Summary 25 Consolidated Results of Operations 31 Consolidated Balance Sheet Analysis 40 Enterprise Risk Management 47 Credit Risk 48 Liquidity Risk 57 Market Risk 69 Operational Risk 71 Critical Accounting Estimates 72 Recent Accounting Changes and Other Developments 74 Non-GAAP Financial Measures and Reconciliations 74 Item 7A.
OUR BUSINESS CFC was established by and for the rural electric cooperative network to provide financing solutions to electric cooperatives.
Loans to electric utility organizations accounted for approximately 98% of our total loans outstanding as of both May 31, 2025 and 2024.
We offer various short- and long-term unsecured investment products to our members and their affiliates, including commercial paper, select notes, daily liquidity fund notes, medium-term notes and subordinated certificates.
MEMBERS Our consolidated membership, after taking into consideration entities that are members of both CFC and NCSC and eliminating overlapping members between CFC and NCSC, totaled 1,176 members and 540 associates as of May 31, 2025, compared with 1,167 members and 512 associates as of May 31, 2024.
Class T associates include organizations that provide non-telephone or non-telecommunications companies and holding companies, subsidiaries and other organizations that are owned, controlled or operated by Class T members.
NCSC s members and associates were as follows as of May 31, 2025.
Line of Credit Loans Line of credit loans are designed primarily to assist borrowers with liquidity and cash management and are generally advanced at variable interest rates.
Project Finance NCSC participates with other lenders on a syndicated basis in the origination of financing focused on power generation and transmission projects, including solar, wind and battery projects sponsored by developers with extensive experience developing, financing, constructing and operating power projects.
Generally, the construction and permanent financing is documented under a single financing agreement that includes a construction and term loan and a tax equity/credit bridge loan.
REMOVED
Management s Discussion and Analysis of Financial Condition and Results of Operations ( MD A ) 24 Introduction 24 N on-GAAP Finan cial Measures 24 Executive Summary 25 Consolidated Results of Operations 30 Consolidated Balance Sheet Analysis 38 Enterprise Risk Management 46 Credit Risk 47 Liquidity Risk 56 Market Risk 68 Operational Risk 70 Critical Accounting Estimates 71 Recent Accounting Changes and Other Developments 73 Non-GAAP Financial Measures and Reconciliations 74 Item 7A.
OUR BUSINESS CFC was established by and for the rural electric cooperative network to provide affordable financing alternatives to electric cooperatives.
Rural electric cooperatives, most of which are not-for-profit entities, were established to provide electricity in rural areas historically deemed too costly to be served by investor-owned utilities.
As such, our electric cooperative members experience limited competition because they generally operate in exclusive territories, the majority of which are not rate regulated.
Loans to electric utility organizations accounted for approximately 98% and 99% of our total loans outstanding as of May 31, 2024 and 2023, respectively.
We also have access to funds through bank revolving line of credit arrangements, government-guaranteed programs such as funding from the Federal Financing Bank that is guaranteed by RUS through the Guaranteed Underwriter Program of the USDA (the Guaranteed Underwriter Program ), as well as a note purchase agreement with the Federal Agricultural Mortgage Corporation ( Farmer Mac ).
MEMBERS Our consolidated membership, after taking into consideration entities that are members of both CFC and NCSC and eliminating overlapping members between CFC and NCSC, totaled 1,167 members and 512 associates as of May 31, 2024, compared with 1,426 members and 270 associates as of May 31, 2023.
The changes in the number of consolidated members and associates were primarily due to the withdrawal of RTFC members following the RTFC sale transaction and the transfer of certain RTFC entities to associate status.
NCSC s members and associates were as follows as of May 31, 2024.
CFC Member Member Type Class May 31, 2024 Class E Distribution systems A 453 Power supply systems B 3 Statewide associations C 6 Class T 195 Associates 469 Total NCSC members and associates 1,126 LOAN AND GUARANTEE PROGRAMS CFC lends to its members and associates and also provides credit enhancements in the form of letters of credit and guarantees of debt obligations.