NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/
For the period ended Nov 30, 2024. Filed Jan 13, 2025.
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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, 2024 · Filed Jan 13, 2025
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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, 2024
or
| ¨ | 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.) |
| 20701 Cooperative Way, | Dulles, | Virginia, | 20166 |
|---|---|---|---|
| (Address of principal executive offices) (Zip Code) | |||
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 transition 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 | 48 |
| Consolidated Statements of Operations (Unaudited) | 49 | |
| Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | 50 | |
| Consolidated Balance Sheets (Unaudited) | 51 | |
| Consolidated Statements of Changes in Equity (Unaudited) | 52 | |
| Consolidated Statements of Cash Flows (Unaudited) | 53 | |
| Notes to Consolidated Financial Statements (Unaudited) | 54 | |
| Note 1 — Summary of Significant Accounting Policies | 54 | |
| Note 2 — Interest Income and Interest Expense | 56 | |
| Note 3 — Investment Securities | 57 | |
| Note 4 — Loans | 58 | |
| Note 5 — Allowance for Credit Losses | 70 | |
| Note 6 — Short-Term Borrowings | 72 | |
| Note 7 — Long-Term Debt | 74 | |
| Note 8 — Subordinated Deferrable Debt | 76 | |
| Note 9 — Derivative Instruments and Hedging Activities | 76 | |
| Note 10 — Equity | 80 | |
| Note 11 — Guarantees | 81 | |
| Note 12 — Fair Value Measurement | 83 | |
| Note 13 — Variable Interest Entities | 85 | |
| Note 14 — Business Segments | 87 | |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) | 1 |
| Forward-Looking Statements | 1 | |
| Introduction | 1 | |
| Executive Summary | 3 | |
| Consolidated Results of Operations | 8 | |
| Consolidated Balance Sheet Analysis | 17 | |
| Enterprise Risk Management | 22 | |
| Credit Risk | 23 | |
| Liquidity Risk | 29 | |
| Market Risk | 40 | |
| Critical Accounting Estimates | 42 | |
| Recent Accounting Changes and Other Developments | 43 | |
| Non-GAAP Financial Measures and Reconciliations | 43 | |
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 92 |
| Item 4. | Controls and Procedures | 92 |
| PART II—OTHER INFORMATION | 92 | |
| Item 1. | Legal Proceedings | 92 |
| Item 1A. | Risk Factors | 92 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 92 |
| Item 3. | Defaults Upon Senior Securities | 92 |
| Item 4. | Mine Safety Disclosures | 92 |
| Item 5. | Other Information | 93 |
| Item 6. | Exhibits | 93 |
| SIGNATURES | 94 | |
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CROSS REFERENCE INDEX OF MD&A TABLES
| Table | Description | Page |
|---|---|---|
| 1 | Net Income (Loss) and TIER | 3 |
| 2 | Adjusted Net Income and Adjusted TIER | 4 |
| 3 | Average Balances, Interest Income/Interest Expense and Average Yield/Cost | 9 |
| 4 | Rate/Volume Analysis of Changes in Interest Income/Interest Expense | 12 |
| 5 | Non-Interest Income (Loss) | 15 |
| 6 | Derivative Gains (Losses) | 15 |
| 7 | Comparative Swap Curves | 16 |
| 8 | Non-Interest Expense | 17 |
| 9 | Debt—Total Debt Outstanding | 19 |
| 10 | Debt—Member Investments | 20 |
| 11 | Equity | 21 |
| 12 | Loans—Loan Portfolio Security Profile | 24 |
| 13 | Loans—Loan Exposure to 20 Largest Borrowers | 25 |
| 14 | Allowance for Credit Losses by Borrower Member Class and Evaluation Methodology | 27 |
| 15 | Available Liquidity | 30 |
| 16 | Liquidity Coverage Ratios | 31 |
| 17 | Committed Bank Revolving Line of Credit Agreements | 33 |
| 18 | Short-Term Borrowings—Funding Sources | 34 |
| 19 | Long-Term and Subordinated Debt—Issuances and Repayments | 36 |
| 20 | Long-Term and Subordinated Debt—Scheduled Principal Maturities and Amortization | 36 |
| 21 | Collateral Pledged | 37 |
| 22 | Loans—Unencumbered Loans | 37 |
| 23 | Projected Long-Term Sources and Uses of Funds | 38 |
| 24 | Credit Ratings | 39 |
| 25 | Interest Rate Sensitivity Analysis | 41 |
| 26 | Adjusted Net Income | 43 |
| 27 | TIER and Adjusted TIER | 44 |
| 28 | Adjusted Total Debt Outstanding and Equity—Prior Versus Revised Methodology | 44 |
| 29 | Adjusted Total Debt Outstanding and Equity | 46 |
| 30 | Debt-to-Equity Ratio and Adjusted Debt-to-Equity Ratio | 46 |
| 31 | Members’ Equity | 47 |
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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.