NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/
For the period ended Aug 31, 2025. Filed Oct 14, 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.
Aug 31, 2025 · Filed Oct 14, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 2. Results of operations
| Interest income | $444,745 | $22,951 | $467,696 | $— | $(20,250) | $447,446 |
|---|---|---|---|---|---|---|
| Interest expense | (376,377) | (20,342) | (396,719) | — | 20,250 | (376,469) |
| Derivative cash settlements interest income (expense) | 20,294 | (27) | 20,267 | (20,267) | — | — |
| Interest expense(3) (4) | (356,083) | (20,369) | (376,452) | (20,267) | 20,250 | (376,469) |
| Net interest income | 88,662 | 2,582 | 91,244 | (20,267) | — | 70,977 |
| Provision for credit losses | (1,587) | (502) | (2,089) | — | 502 | (1,587) |
| Net interest income after provision for credit losses | 87,075 | 2,080 | 89,155 | (20,267) | 502 | 69,390 |
| Non-interest income (loss): | ||||||
| Fee and other income | 8,445 | 2,091 | 10,536 | — | (3,461) | 7,075 |
| Derivative gains (losses): | ||||||
| Derivative cash settlements interest income | — | — | — | 20,267 | — | 20,267 |
| Derivative forward value losses | — | — | — | (52,471) | — | (52,471) |
| Derivative losses | — | — | — | (32,204) | — | (32,204) |
| Investment securities gains | 1,445 | — | 1,445 | — | — | 1,445 |
| Total non-interest income (loss) | 9,890 | 2,091 | 11,981 | (32,204) | (3,461) | (23,684) |
| Non-interest expense: | ||||||
| Salaries and employee benefits(3) | (19,906) | (70) | (19,976) | — | — | (19,976) |
| Consulting(3) | (2,608) | (42) | (2,650) | — | — | (2,650) |
| Depreciation and amortization(3) | (3,394) | — | (3,394) | — | — | (3,394) |
| Other non-interest expense(5) | (14,015) | (3,968) | (17,983) | — | 2,959 | (15,024) |
| Total non-interest expense | (39,923) | (4,080) | (44,003) | — | 2,959 | (41,044) |
| Income before income taxes | 57,042 | 91 | 57,133 | (52,471) | — | 4,662 |
| Income tax benefit | — | 20 | 20 | — | — | 20 |
| Net income(6) | $57,042 | $111 | $57,153 | $(52,471) | $— | $4,682 |
| CFC | NCSC | Segments Total | Reclasses and Adjustments(1) | Intersegment Eliminations(2) | Consolidated Total | |
| Assets: | ||||||
| Total loans outstanding | $37,538,412 | $1,674,517 | $39,212,929 | $— | $(1,660,221) | $37,552,708 |
| Deferred loan origination costs | 16,893 | — | 16,893 | — | — | 16,893 |
| Loans to members | 37,555,305 | 1,674,517 | 39,229,822 | — | (1,660,221) | 37,569,601 |
| Less: Allowance for credit losses | (42,202) | (6,088) | (48,290) | — | 6,088 | (42,202) |
| Loans to members, net | 37,513,103 | 1,668,429 | 39,181,532 | — | (1,654,133) | 37,527,399 |
| Other assets | 1,305,157 | 32,256 | 1,337,413 | — | (16,094) | 1,321,319 |
| Total assets | $38,818,260 | $1,700,685 | $40,518,945 | $— | $(1,670,227) | $38,848,718 |
| (Dollars in thousands) | CFC | NCSC | Segments Total | Reclasses and Adjustments(1) | Intersegment Eliminations(2) | Consolidated Total |
|---|---|---|---|---|---|---|
| Results of operations: | ||||||
| Interest income | $415,719 | $21,986 | $437,705 | $— | $(19,586) | $418,119 |
| Interest expense | (356,416) | (19,630) | (376,046) | — | 19,586 | (356,460) |
| Derivative cash settlements interest income | 32,016 | 45 | 32,061 | (32,061) | — | — |
| Interest expense(3) (4) | (324,400) | (19,585) | (343,985) | (32,061) | 19,586 | (356,460) |
| Net interest income | 91,319 | 2,401 | 93,720 | (32,061) | — | 61,659 |
| Provision for credit losses | (953) | (700) | (1,653) | — | 700 | (953) |
| Net interest income after provision for credit losses | 90,366 | 1,701 | 92,067 | (32,061) | 700 | 60,706 |
| Non-interest income (loss): | ||||||
| Fee and other income | 7,074 | 1,647 | 8,721 | — | (3,053) | 5,668 |
| Derivative gains (losses): | ||||||
| Derivative cash settlements interest income | — | — | — | 32,061 | — | 32,061 |
| Derivative forward value losses | — | — | — | (230,386) | — | (230,386) |
| Derivative losses | — | — | — | (198,325) | — | (198,325) |
| Investment securities gains | 4,131 | — | 4,131 | — | — | 4,131 |
| Total non-interest income (loss) | 11,205 | 1,647 | 12,852 | (198,325) | (3,053) | (188,526) |
| Non-interest expense: | ||||||
| Salaries and employee benefits(3) | (17,128) | (60) | (17,188) | — | — | (17,188) |
| Consulting(3) | (4,045) | (42) | (4,087) | — | — | (4,087) |
| Depreciation and amortization(3) | (2,993) | — | (2,993) | — | — | (2,993) |
| Other non-interest expense(5) | (11,802) | (2,893) | (14,695) | — | 2,353 | (12,342) |
| Total non-interest expense | (35,968) | (2,995) | (38,963) | — | 2,353 | (36,610) |
| Income (loss) before income taxes | 65,603 | 353 | 65,956 | (230,386) | — | (164,430) |
| Income tax benefit | — | 104 | 104 | — | — | 104 |
| Net income (loss)(6) | $65,603 | $457 | $66,060 | $(230,386) | $— | $(164,326) |
| CFC | NCSC | Segments Total | Reclasses and Adjustments(1) | Intersegment Eliminations(2) | Consolidated Total | |
| Assets: | ||||||
| Total loans outstanding | $35,083,150 | $1,583,937 | $36,667,087 | $— | $(1,570,890) | $35,096,197 |
| Deferred loan origination costs | 14,675 | — | 14,675 | — | — | 14,675 |
| Loans to members | 35,097,825 | 1,583,937 | 36,681,762 | — | (1,570,890) | 35,110,872 |
| Less: Allowance for credit losses | (49,679) | (6,700) | (56,379) | — | 6,700 | (49,679) |
| Loans to members, net | 35,048,146 | 1,577,237 | 36,625,383 | — | (1,564,190) | 35,061,193 |
| Other assets | 1,414,447 | 28,421 | 1,442,868 | — | (15,720) | 1,427,148 |
| Total assets | $36,462,593 | $1,605,658 | $38,068,251 | $— | $(1,579,910) | $36,488,341 |
(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.
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