v3.26.3
Business Segments (Tables)
 3 Months Ended
Aug. 31, 2026
Segment Reporting [Abstract]  
Schedule of Segment Presentation for the Consolidated Statements of Operations and Consolidated Balance Sheets
The following tables display segment results of operations for Q1 FY2027 and Q1 FY2026, assets attributable to each segment as of August 31, 2026 and August 31, 2025 and a reconciliation of total segment amounts to our consolidated total amounts.
Table 14.1: Business Segment Information
Q1 FY2027
(Dollars in thousands)CFCNCSC Segments Total
Reclasses and Adjustments(1)
Intersegment Eliminations(2)
Consolidated Total
Results of operations:
Interest income$451,601 $22,307 $473,908 $— $(19,452)$454,456 
Interest expense(378,395)(19,543)(397,938)— 19,452 (378,486)
Derivative cash settlements interest income (expense)
14,099 (69)14,030 (14,030)— — 
Interest expense(3) (4)
(364,296)(19,612)(383,908)(14,030)19,452 (378,486)
Net interest income87,305 2,695 90,000 (14,030)— 75,970 
Provision for credit losses(3,875)(2,242)(6,117)— 2,242 (3,875)
Net interest income after provision for credit losses83,430 453 83,883 (14,030)2,242 72,095 
Non-interest income:
Fee and other income 8,638 4,152 12,790 — (4,916)7,874 
Derivative gains:
Derivative cash settlements interest income— — — 14,030 — 14,030 
Derivative forward value gains— — — 82,586 — 82,586 
Derivative gains— — — 96,616 — 96,616 
Investment securities gains
1,639 — 1,639 — — 1,639 
Total non-interest income10,277 4,152 14,429 96,616 (4,916)106,129 
Non-interest expense:
Salaries and employee benefits(3)
(20,161)(60)(20,221)— — (20,221)
Depreciation and amortization(3)
(3,748)— (3,748)— — (3,748)
Other non-interest expense(5)
(17,165)(3,656)(20,821)— 2,674 (18,147)
Total non-interest expense(41,074)(3,716)(44,790)— 2,674 (42,116)
Income before income taxes
52,633 889 53,522 82,586 — 136,108 
Income tax provision— (682)(682)— — (682)
Net income(6)
$52,633 $207 $52,840 $82,586 $— $135,426 
August 31, 2026
CFCNCSC Segments Total
Reclasses and Adjustments(1)
Intersegment Eliminations(2)
Consolidated Total
Assets:
Total loans outstanding$38,303,948 $1,697,618 $40,001,566 $— $(1,683,908)$38,317,658 
Deferred loan origination costs19,660 — 19,660 — — 19,660 
Loans to members38,323,608 1,697,618 40,021,226 — (1,683,908)38,337,318 
Less: Allowance for credit losses(33,822)(7,933)(41,755)— 7,933 (33,822)
Loans to members, net38,289,786 1,689,685 39,979,471 — (1,675,975)38,303,496 
Other assets1,249,536 31,336 1,280,872 — (15,542)1,265,330 
Total assets$39,539,322 $1,721,021 $41,260,343 $— $(1,691,517)$39,568,826 
Q1 FY2026
(Dollars in thousands)CFC
NCSC
Segments Total
Reclasses and Adjustments(1)
Intersegment Eliminations(2)
Consolidated Total
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 income88,662 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 losses87,075 2,080 89,155 (20,267)502 69,390 
Non-interest income (loss):
Fee and other income8,445 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)
Depreciation and amortization(3)
(3,394)— (3,394)— — (3,394)
Other non-interest expense(5)
(16,623)(4,010)(20,633)— 2,959 (17,674)
Total non-interest expense(39,923)(4,080)(44,003)— 2,959 (41,044)
Income before income taxes57,042 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 
August 31, 2025
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 costs16,893 — 16,893 — — 16,893 
Loans to members37,555,305 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, net37,513,103 1,668,429 39,181,532 — (1,654,133)37,527,399 
Other assets1,305,157 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 
____________________________
(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 consulting, 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. Certain reclassifications have been made to the presentation of information in prior periods to conform to the current-period presentation.
(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.