National Rural Utilities Cooperative Finance Corporation Reports $140 Million Net Income for Fiscal Year 2025

**National Rural Utilities Cooperative Finance Corporation Reports Fiscal Year 2025 Results**

National Rural Utilities Cooperative Finance Corporation (CFC) reported net income of $140 million for the fiscal year ended May 31, 2025, a decrease of $414.3 million compared to the $554.3 million reported in the previous fiscal year. The decrease was primarily attributed to a $398 million shift from gains to losses on the company's derivatives portfolio, with a $6 million loss in FY2025 compared to a $392 million gain in FY2024. This was partially offset by a $7 million increase in net interest income, driven by a 5% increase in average interest-earning assets. The company's times interest earned ratio (TIER) decreased from 1.41 to 1.10 year-over-year, reflecting the combined impact of lower net income and higher interest expense.

The company's loan portfolio continued to expand, with loans to members reaching $37.08 billion as of May 31, 2025, an increase of $2.54 billion or 7% from the previous year. This growth was fueled by net increases in both long-term loans ($1.41 billion) and line of credit loans ($1.13 billion). A significant portion (78%) of the increase in line of credit loans was due to emergency borrowings by members for Hurricane Helene recovery costs. The overall credit quality of the loan portfolio remained strong, with no loan charge-offs recorded during the fiscal year. However, one loan totaling $26 million was classified as nonperforming as of May 31, 2025, a decrease from $49 million in the prior year.

Total debt outstanding increased by $2.05 billion, or 6%, to $34.77 billion as of May 31, 2025, primarily to fund the growth in the loan portfolio. During the fiscal year, CFC issued approximately $2.4 billion in unsecured long-term dealer medium-term notes and $1.45 billion in secured long-term debt. The company's available liquidity, consisting of cash, investments, and committed credit facilities, totaled $7.61 billion as of May 31, 2025. This was $1.16 billion less than the company's total scheduled debt obligations over the next 12 months of $8.77 billion. However, excluding member short-term investments, available liquidity exceeded scheduled debt obligations by $1.73 billion.

Looking ahead, CFC anticipates net loan growth of $2.06 billion over the next 12 months. The company projects an increase in adjusted net interest income, driven by loan growth, but a slight decrease in adjusted net interest yield due to the current shape of the yield curve. Adjusted net income is expected to decrease due to higher operating expenses, leading to a lower adjusted TIER. The adjusted debt-to-equity ratio is projected to increase due to the anticipated growth in the loan portfolio.