NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/ Releases Q3 2023 10-Q Report

NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/ (CFC), a leading financial cooperative serving the rural electric utility sector, has released its Form 10-Q report for the third quarter of 2023. The report highlights the company's financial and operational performance, showcasing robust growth and strategic initiatives aimed at enhancing service offerings.

Financial Highlights

• Interest Income: $380.956 million, reflecting an increase from $306.978 million in the previous year, driven by higher loan balances and investment securities.
• Interest Expense: $316.281 million, up from $209.468 million, primarily due to increased borrowing costs.
• Net Interest Income: $64.675 million, a decrease from $97.510 million, impacted by higher interest expenses.
• Provision for Credit Losses: $(0.800) million, compared to $(3.496) million, indicating improved credit conditions.
• Net Interest Income After Provision for Credit Losses: $63.875 million, down from $94.014 million.
• Total Non-Interest Income: $197.357 million, significantly higher than $93.964 million, driven by derivative gains and investment securities gains.
• Total Non-Interest Expense: $(32.620) million, up from $(25.841) million, due to increased salaries and administrative expenses.
• Income Before Income Taxes: $228.612 million, an increase from $162.137 million, reflecting strong operational performance.
• Income Tax Provision: $(0.328) million, slightly higher than $(0.263) million.
• Net Income: $228.284 million, up from $161.874 million, indicating robust financial health.
• Net Income Attributable to CFC: $227.857 million, compared to $161.681 million, showcasing strong member returns.

Business Highlights

• Revenue Segments: The company primarily serves the rural electric utility cooperative sector, with loans to electric utility organizations accounting for 98% of total loans outstanding as of August 31, 2023. The remaining loans are to telecommunications industry members.
• Geographical Performance: The company serves a geographically diverse group of borrowers across 49 states and the District of Columbia. Texas represents the largest concentration of loan exposure, with 17% of total loans outstanding.
• Sales Units: The company reported a total of 883 borrowers with loans outstanding as of August 31, 2023, indicating a slight decrease from 884 borrowers as of May 31, 2023.
• Future Outlook: The company plans to complete the consolidation of RTFC and NCSC within the fiscal year ending May 31, 2024, subject to certain conditions. This consolidation is expected to streamline operations and enhance service offerings.

SEC Filing: NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP /DC/ Releases Q3 2023 [ NYSE:NRUC ] - 10-Q - Oct. 12, 2023