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Loans and Commitments (Tables)

12 Months Ended

May 31, 2014

Loans and Leases Receivable Disclosure [Abstract]

Summary of loans outstanding to members and unadvanced commitments by loan type and by member class

Loans outstanding to members and unadvanced commitments by loan type and by member class are summarized as follows at May 31, 2014 and 2013.



	2014				2013
(Dollars in thousands)	Loans Outstanding		Unadvanced Commitments ⁽¹⁾		Loans Outstanding		Unadvanced Commitments ⁽¹⁾
Total by loan type: ⁽²⁾
Long-term fixed-rate loans	$	18,175,656	$	—	$	17,918,268	$	—
Long-term variable-rate loans	753,918		4,710,273		782,006		4,718,162
Loans guaranteed by RUS	201,863		—		210,815		—
Line of credit loans	1,335,488		9,201,805		1,385,228		8,704,586
Total loans outstanding ⁽³⁾	20,466,925		13,912,078		20,296,317		13,422,748
Deferred origination costs	9,717		—		9,557		—
Loans to members	$	20,476,642	$	13,912,078	$	20,305,874	$	13,422,748

Total by member class:⁽²⁾
CFC:
Distribution	$	15,035,365	$	9,531,315	$	14,941,192	$	8,948,826
Power supply	4,086,163		3,025,423		4,007,669		3,145,518
Statewide and associate	67,902		105,961		70,956		102,087
CFC total	19,189,430		12,662,699		19,019,817		12,196,431
RTFC	449,546		304,500		503,359		317,344
NCSC	827,949		944,879		773,141		908,973
Total loans outstanding	$	20,466,925	$	13,912,078	$	20,296,317	$	13,422,748

⁽¹⁾The interest rate on unadvanced commitments is not set until drawn, therefore, the long-term unadvanced loan commitments have been classified in this table as variable-rate unadvanced commitments. However, at the time of the advance, the borrower may select a fixed or a variable rate on the new loan.

⁽²⁾Includes nonperforming and restructured loans.

⁽³⁾ Includes the unpaid principal balance excluding deferred origination costs.

Summary of available balance under committed lines of credit and the related maturities by fiscal year

The following table summarizes the available balance under committed lines of credit at May 31, 2014 and the related maturities by fiscal year as follows:



	Available balance	Notional Maturities of Committed Lines of Credit
(Dollars in thousands)	Available balance	2015	2016	2017	2018	2019
Committed lines of credit	$2,274,388	$19,238	$61,000	$456,855	$678,839	$1,058,456

Schedule of analysis of the age of the recorded investment in loans outstanding by member class

The tables below show an analysis of the age of the recorded investment in loans outstanding by member class at May 31, 2014 and 2013.



				2014
(Dollars in thousands)	Current			30-89 Days Past Due			90 Days or More Past Due ⁽¹⁾			Total Past Due			Total Financing Receivables			Non-accrual Loans
CFC:
Distribution	$	15,035,365		$	—		$	—		$	—		$	15,035,365		$	7,584
Power supply	4,086,163			—			—			—			4,086,163			—
Statewide and associate	67,902			—			—			—			67,902			—
CFC total	19,189,430			—			—			—			19,189,430			7,584
RTFC	449,546			—			—			—			449,546			1,695
NCSC	827,949			—			—			—			827,949			400
Total loans outstanding	$	20,466,925		$	—		$	—		$	—		$	20,466,925		$	9,679

As a % of total loans	100.00		%	—		%	—		%	—		%	100.00		%	0.05		%

⁽¹⁾All loans 90 days or more past due are on non-accrual status.



				2013
(Dollars in thousands)	Current			30-89 Days Past Due			90 Days or More Past Due ⁽¹⁾			Total Past Due			Total Financing Receivables			Non-accrual Loans
CFC:
Distribution	$	14,938,351		$	2,841		$	—		$	2,841		$	14,941,192		$	7,584
Power supply	4,002,669			—			5,000			5,000			4,007,669			5,000
Statewide and associate	70,956			—			—			—			70,956			—
CFC total	19,011,976			2,841			5,000			7,841			19,019,817			12,584
RTFC	495,040			4,163			4,156			8,319			503,359			10,497
NCSC	773,141			—			—			—			773,141			—
Total loans outstanding	$	20,280,157		$	7,004		$	9,156		$	16,160		$	20,296,317		$	23,081

As a % of total loans	99.92		%	0.03		%	0.05		%	0.08		%	100.00		%	0.11		%

⁽¹⁾ All loans 90 days or more past due are on non-accrual status.

Schedule of loan portfolio by risk rating category and member class based on available data

The following table presents our loan portfolio by risk rating category and member class based on available data as of May 31, 2014 and 2013.



	2014						2013
(Dollars in thousands)	Pass		Criticized		Total		Pass		Criticized		Total
CFC:
Distribution	$	15,018,642	$	16,723	$	15,035,365	$	14,922,558	$	18,634	$	14,941,192
Power supply	4,086,163		—		4,086,163		4,002,669		5,000		4,007,669
Statewide and associate	67,625		277		67,902		70,668		288		70,956
CFC total	19,172,430		17,000		19,189,430		18,995,895		23,922		19,019,817
RTFC	447,851		1,695		449,546		483,058		20,301		503,359
NCSC	825,736		2,213		827,949		770,419		2,722		773,141
Total loans outstanding	$	20,446,017	$	20,908	$	20,466,925	$	20,249,372	$	46,945	$	20,296,317

Schedule of exposure to the 10 largest borrowers as a percentage of total credit exposure broken down by exposure type and by borrower type

The following table shows the exposure to the 10 largest borrowers as a percentage of total credit exposure broken down by exposure type and by borrower type at May 31, 2014 and 2013.



	2014				2013
(Dollars in thousands)	Amount		%		Amount		%
Total by type:
Loans	$	3,155,857	14	%	$	2,981,627	14	%
Guarantees	363,325		2		374,340		2
Total credit exposure to 10 largest borrowers	$	3,519,182	16	%	$	3,355,967	16	%

Total by borrower type:
CFC	$	3,378,698	15	%	$	3,240,755	15	%
NCSC	140,484		1		115,212		1
Total credit exposure to 10 largest borrowers	$	3,519,182	16	%	$	3,355,967	16	%

Schedule of weighted-average loan balance and weighted-average yield earned

Below is the weighted-average loan balance and weighted-average yield earned during the fiscal years ended May 31, 2014 and 2013.



	2014				2013
(Dollars in thousands)	Weighted- Average Loans Outstanding		Weighted- Average Yield		Weighted- Average Loans Outstanding		Weighted- Average Yield
Total by loan type:
Long-term fixed-rate loans	$	18,377,834	4.83	%	$	17,223,370	5.08	%
Long-term variable-rate loans	737,186		2.77		721,747		3.00
Line of credit loans	1,278,549		2.45		1,245,635		2.60
Restructured loans	10,819		1.26		157,059		8.89
Nonperforming loans	7,952		2.97		48,653		—
Total loans	$	20,412,340	4.60		$	19,396,464	4.86

Total by borrower type:
CFC	$	19,192,656	4.63	%	$	18,169,399	4.88	%
RTFC	471,045		4.41		539,850		4.77
NCSC	748,639		4.00		687,215		4.37
Total	$	20,412,340	4.60		$	19,396,464	4.86

Summary of long-term fixed-rate loans outstanding subject to interest rate repricing during the next five fiscal years

Long-term fixed-rate loans outstanding at May 31, 2014, which will be subject to interest rate repricing during the next five fiscal years and thereafter, are summarized as follows (due to principal repayments, amounts subject to interest rate repricing may be lower at the actual time of interest rate repricing):



(Dollars in thousands)	Amount Repricing		Weighted-Average Interest Rate
2015	$	1,283,402	4.51	%
2016	978,378		4.62
2017	823,077		4.58
2018	799,236		4.80
2019	627,833		5.02
Thereafter	2,083,375		5.29

Summary of principal amortization of long-term loans by loan type in each of the five fiscal years

The following table summarizes the principal amortization of long-term loans by loan type in each of the five fiscal years following May 31, 2014 and thereafter as follows:



	Fixed-Rate				Variable-Rate
(Dollars in thousands)	Loan Amortization ⁽¹⁾		Weighted-Average Interest Rate		Loan Amortization ⁽¹⁾		Total Loan Amortization ⁽¹⁾
2015	$	1,069,663	4.62	%	$	88,309	$	1,157,972
2016	1,039,741		4.65		55,206		1,094,947
2017	1,070,614		4.43		55,646		1,126,260
2018	920,648		4.73		65,100		985,748
2019	874,562		4.80		59,866		934,428
Thereafter	13,384,730		5.15		447,353		13,832,083
Total	$	18,359,958	5.01	%	$	771,480	$	19,131,438

⁽¹⁾Represents scheduled amortization based on current rates without consideration for loans that reprice.

Summary of secured and unsecured loans outstanding by loan type and by company

The following table summarizes our secured and unsecured loans outstanding by loan type and by company as of May 31, 2014 and 2013.



(Dollars in thousands)	2014										2013
Total by loan type:	Secured		%		Unsecured		%		Total		Secured		%		Unsecured		%		Total
Long-term fixed-rate loans	$	17,185,456	95	%	$	990,200	5	%	$	18,175,656	$	16,871,594	94	%	$	1,046,674	6	%	$	17,918,268
Long-term variable-rate loans	650,211		86		103,707		14		753,918		676,075		86		105,931		14		782,006
Loans guaranteed by RUS	201,863		100		—		—		201,863		210,815		100		—		—		210,815
Line of credit loans	311,103		23		1,024,385		77		1,335,488		294,575		21		1,090,653		79		1,385,228
Total loans outstanding	$	18,348,633	90		$	2,118,292	10		$	20,466,925	$	18,053,059	89		$	2,243,258	11		$	20,296,317

Total by company:
CFC	$	17,313,990	90	%	$	1,875,440	10	%	$	19,189,430	$	17,049,029	90	%	$	1,970,788	10	%	$	19,019,817
RTFC	429,626		96		19,920		4		449,546		482,647		96		20,712		4		503,359
NCSC	605,017		73		222,932		27		827,949		521,383		67		251,758		33		773,141
Total loans outstanding	$	18,348,633	90		$	2,118,292	10		$	20,466,925	$	18,053,059	89		$	2,243,258	11		$	20,296,317

Summary of the activity in the loan loss allowance reflecting disaggregation by company of the allowance for loan losses held at CFC based on borrower type

The activity in the allowance for loan losses summarized in the tables below, reflects a disaggregation by company based on borrower type as of and for the years ended May 31, 2014, 2013 and 2012.



	2014
(Dollars in thousands)	CFC		RTFC ⁽¹⁾			NCSC⁽¹⁾		Total
Balance as of May 31, 2013	$	41,246	$	9,158		$	3,921	$	54,325
Provision for loan losses	4,142		(3,270		)	2,626		3,498
Charge-offs	—		(1,606		)	—		(1,606		)
Recoveries of loans previously charged-off	212		—			—		212
Balance as of May 31, 2014	$	45,600	$	4,282		$	6,547	$	56,429



	2013
(Dollars in thousands)	CFC			RTFC ⁽¹⁾		NCSC⁽¹⁾			Total
Balance as of May 31, 2012	$	126,941		$	8,562	$	7,823		143,326
Provision for loan losses	(66,785		)	596		(3,902		)	(70,091	)
Charge-offs	(19,122		)	—		—			(19,122	)
Recoveries of loans previously charged-off	212			—		—			212
Balance as of May 31, 2013	$	41,246		$	9,158	$	3,921		54,325



	2012
(Dollars in thousands)	CFC			RTFC ⁽¹⁾		NCSC⁽¹⁾			Total
Balance as of May 31, 2011	$	143,706		$	8,389	$	9,082		$	161,177
Provision for loan losses	(16,976		)	127		(1,259		)	(18,108		)
Recoveries of loans previously charged-off	211			46		—			257
Balance as of May 31, 2012	$	126,941		$	8,562	$	7,823		$	143,326

Schedule of loan loss allowance and the recorded investment in outstanding loans by impairment methodology and by company

The tables below present the allowance for loan losses and the recorded investment in outstanding loans by impairment methodology and by company as of and for the years ended May 31, 2014 and 2013.



	2014
(Dollars in thousands)	CFC		RTFC		NCSC		Total
Ending balance of the allowance:
Collectively evaluated	$	45,600	$	3,876	$	6,527	$	56,003
Individually evaluated	—		406		20		426
Total ending balance of the allowance	$	45,600	$	4,282	$	6,547	$	56,429

Recorded investment in loans:
Collectively evaluated	$	19,181,846	$	447,851	$	827,549	$	20,457,246
Individually evaluated	7,584		1,695		400		9,679
Total recorded investment in loans	$	19,189,430	$	449,546	$	827,949	$	20,466,925

Loans to members, net ⁽¹⁾	$	19,143,830	$	445,264	$	821,402	$	20,410,496



	2013
(Dollars in thousands)	CFC		RTFC		NCSC		Total
Ending balance of the allowance:
Collectively evaluated	$	41,246	$	5,731	$	3,921	$	50,898
Individually evaluated	—		3,427		—		3,427
Total ending balance of the allowance	$	41,246	$	9,158	$	3,921	$	54,325

Recorded investment in loans:
Collectively evaluated	$	18,967,864	$	492,862	$	773,141	$	20,233,867
Individually evaluated	51,953		10,497		—		62,450
Total recorded investment in loans	$	19,019,817	$	503,359	$	773,141	$	20,296,317

Loans to members, net⁽¹⁾	$	18,978,571	$	494,201	$	769,220	$	20,241,992

⁽¹⁾ Excludes deferred origination costs of $10 million at May 31, 2014 and 2013.

Summary of recorded investment in individually-impaired loans and the related specific valuation allowance by member class

Our recorded investment in individually-impaired loans and the related specific valuation allowance is summarized below by member class at May 31, 2014 and 2013.



	2014				2013
(Dollars in thousands)	Recorded Investment		Related Allowance		Recorded Investment		Related Allowance
With no specific allowance recorded:
CFC/Distribution	$	7,584	$	—	$	46,953	$	—
CFC/Power Supply	—		—		5,000		—
Total	7,584		—		51,953		—

With a specific allowance recorded:
NCSC	400		20		—		—
RTFC	1,695		406		10,497		3,427
Total	2,095		426		10,497		3,427
Total impaired loans	$	9,679	$	426	$	62,450	$	3,427

Schedule of average recorded investment in impaired loans and the interest income recognized by member class

The table below represents the average recorded investment in impaired loans and the interest income recognized by member class for the years ended May 31, 2014, 2013 and 2012.



	Average Recorded Investment						Interest Income Recognized
(Dollars in thousands)	2014		2013		2012		2014		2013		2012
CFC/Distribution	$	10,850	$	171,928	$	490,609	$	136	$	13,956	$	16,191
CFC/Power Supply	4,250		5,000		3,167		5		—		—
NCSC	218		—		—		7		—		—
RTFC	6,235		6,942		6,196		224		—		—
Total impaired loans	$	21,553	$	183,870	$	499,972	$	372	$	13,956	$	16,191

Schedule of nonperforming and restructured loans

Nonperforming and restructured loans outstanding and unadvanced commitments to members are summarized as follows by loan type and by company at May 31, 2014 and 2013.



	2014				2013
(Dollars in thousands)	Loans Outstanding		Unadvanced Commitments⁽¹⁾		Loans Outstanding		Unadvanced Commitments⁽¹⁾
Nonperforming and restructured loans:
Nonperforming loans: CFC:
Line of credit loans⁽²⁾	$	—	$	—	$	5,000	$	—
RTFC:
Long-term fixed-rate loans	—		—		3,690		—
Long-term variable-rate loans	1,695		—		6,807		—
NCSC:
Line of credit loans	400		—		—		—
Total nonperforming loans	$	2,095	$	—	$	15,497	$	—

Restructured loans:
CFC:
Long-term fixed-rate loans	$	7,584	$	—	$	46,953	$	—
Line of credit loans ⁽³⁾	—		—		—		5,000
Total restructured loans	$	7,584	$	—	$	46,953	$	5,000

⁽²⁾The unadvanced commitment is available under a debtor-in-possession facility for which the principal and interest has priority over all other claims.

⁽³⁾The unadvanced commitment is part of the terms outlined in the related restructure agreement. Loans advanced under these commitments would be classified as performing. Principal and interest due under these performing loans would be in addition to scheduled payments due under the restructured loan agreement.

Summary of foregone interest income as a result of holding loans on non-accrual status

oregone interest income as a result of holding loans on non-accrual status as of each of the years ended May 31, 2014, 2013 and 2012.



(Dollars in thousands)	2014		2013		2012
Nonperforming loans	$	314	$	597	$	1,637
Restructured loans	488		341		6,714
Total	$	802	$	938	$	8,351

Summary of loans outstanding as collateral pledged to secure the entity's collateral trust bonds, Clean Renewable Energy Bonds and notes payable to the Federal Agricultural Mortgage Corporation and the amount of the corresponding debt outstanding

The following table summarizes our loans outstanding as collateral pledged to secure our collateral trust bonds, Clean Renewable Energy Bonds and notes payable to the Federal Agricultural Mortgage Corporation and the amount of the corresponding debt outstanding (see "Note 5—Short-Term Debt and Credit Arrangements" and "Note 6—Long-Term Debt") at May 31, 2014 and 2013.



(Dollars in thousands)	2014		2013
Collateral trust bonds:
2007 indenture:
Distribution system mortgage notes	$	5,987,767	$	5,674,804
RUS guaranteed loans qualifying as permitted investments	161,372		165,823
Total pledged collateral	$	6,149,139	$	5,840,627
Collateral trust bonds outstanding	5,397,711		4,679,372

1994 indenture:
Distribution system mortgage notes	$	1,005,058	$	1,641,858
Collateral trust bonds outstanding	860,000		1,465,000

Federal Agricultural Mortgage Corporation:
Distribution and power supply system mortgage notes	$	1,907,607	$	1,795,947
Notes payable outstanding	1,667,505		1,542,474

Clean Renewable Energy Bonds Series 2009A:
Distribution and power supply system mortgage notes	$	21,398	$	23,536
Cash	520		7,634
Total pledged collateral	$	21,918	$	31,170
Notes payable outstanding	18,230		19,888

Schedule of collateral on deposit and the amount of the corresponding debt outstanding

The following table shows the collateral on deposit and the amount of the corresponding debt outstanding at May 31, 2014 and 2013.



(Dollars in thousands)	2014		2013
Federal Financing Bank:
Distribution and power supply system mortgage notes on deposit	$	5,076,428	$	3,903,786
Notes payable outstanding	4,299,000		3,674,000