NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP DC

For the period ended Nov 30, 2023. Filed Jan 12, 2024.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Nov 30, 2023 · Filed Jan 12, 2024

NRUC$20.04+0.7%Stored close · as of Nov 9, 2026

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2023

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number:1-7102

NATIONAL RURAL UTILITIES

COOPERATIVE FINANCE CORPORATION

(Exact name of registrant as specified in its charter)

District of Columbia	52-0891669
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

(Address of principal executive offices) (Zip Code)
20701 Cooperative Way,	Dulles,	Virginia,	20166

Registrant’s telephone number, including area code: (703) 467-1800

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
7.35% Collateral Trust Bonds, due 2026	NRUC 26	New York Stock Exchange
5.50% Subordinated Notes, due 2064	NRUC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer¨ Accelerated filer¨ Non-accelerated filer x Smaller reporting company¨ Emerging growth company¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transaction period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act.¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes☐ Nox

The Registrant is a tax-exempt cooperative and therefore doesnot issue capital stock.

TABLE OF CONTENTS

Page
PART I—FINANCIAL INFORMATION	1
Item 1.	Financial Statements	50
	Consolidated Statements of Operations (Unaudited)	51
	Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	52
	Consolidated Balance Sheets (Unaudited)	53
	Consolidated Statements of Changes in Equity (Unaudited)	54
	Consolidated Statements of Cash Flows (Unaudited)	55
	Notes to Consolidated Financial Statements (Unaudited)	56
	Note 1 — Summary of Significant Accounting Policies	56
	Note 2 — Interest Income and Interest Expense	58
	Note 3 — Investment Securities	58
	Note 4 — Loans	60
	Note 5 — Allowance for Credit Losses	71
	Note 6 — Short-Term Borrowings	74
	Note 7 — Long-Term Debt	75
	Note 8 — Subordinated Deferrable Debt	78
	Note 9 — Derivative Instruments and Hedging Activities	78
	Note 10 — Equity	81
	Note 11 — Guarantees	83
	Note 12 — Fair Value Measurement	84
	Note 13 — Variable Interest Entities	87
	Note 14 — Business Segments	89
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)	1
	Forward-Looking Statements	1
	Introduction	1
	Summary of Selected Financial Data	2
	Executive Summary	6
	Critical Accounting Estimates	10
	Recent Accounting Changes and Other Developments	10
	Consolidated Results of Operations	11
	Consolidated Balance Sheet Analysis	21
	Enterprise Risk Management	26
	Credit Risk	27
	Liquidity Risk	34
	Market Risk	44
	Non-GAAP Financial Measures	46
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	94
Item 4.	Controls and Procedures	94
PART II—OTHER INFORMATION	94
Item 1.	Legal Proceedings	94
Item 1A.	Risk Factors	94
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	94
Item 3.	Defaults Upon Senior Securities	94
Item 4.	Mine Safety Disclosures	94
Item 5.	Other Information	94
Item 6.	Exhibits	95
SIGNATURES	96

CROSS REFERENCE INDEX OF MD&A TABLES

Table	Description	Page
1	Summary of Selected Financial Data	4
2	Net Income and TIER	6
3	Adjusted Net Income and Adjusted TIER	7
4	Average Balances, Interest Income/Interest Expense and Average Yield/Cost	12
5	Rate/Volume Analysis of Changes in Interest Income/Interest Expense	15
6	Non-Interest Income	18
7	Derivative Gains (Losses)	19
8	Comparative Swap Curves	20
9	Non-Interest Expense	21
10	Debt—Total Debt Outstanding	23
11	Debt—Member Investments	24
12	Equity	25
13	Loans—Loan Portfolio Security Profile	28
14	Loans—Loan Exposure to 20 Largest Borrowers	29
15	Allowance for Credit Losses by Borrower Member Class and Evaluation Methodology	32
16	Available Liquidity	34
17	Liquidity Coverage Ratios	35
18	Committed Bank Revolving Line of Credit Agreements	37
19	Short-Term Borrowings—Funding Sources	39
20	Long-Term and Subordinated Debt—Issuances and Repayments	40
21	Long-Term and Subordinated Debt—Scheduled Principal Maturities and Amortization	40
22	Collateral Pledged	41
23	Loans—Unencumbered Loans	41
24	Liquidity—Projected Long-Term Sources and Uses of Funds	42
25	Credit Ratings	43
26	Interest Rate Sensitivity Analysis	45
27	Adjusted Net Income	46
28	TIER and Adjusted TIER	47
29	Adjusted Liabilities and Equity	48
30	Debt-to-Equity Ratio and Adjusted Debt-to-Equity Ratio	48
31	Members’ Equity	49

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