National Rural Utilities Cooperative Finance Corporation reported sharply lower GAAP earnings for Q2 FY2026 as derivative marks swung negative, while core lending and credit quality remained solid. Net income for Q2 FY2026 was $19,558 thousand, down from $144,803 thousand in Q2 FY2025, with TIER falling to 1.05 from 1.41 as gains on interest rate swaps in the prior year turned into losses. Year-to-date FY2026 net income improved to $24,240 thousand from a loss of $19,523 thousand, helped by smaller derivative losses.
On a non-GAAP basis, which excludes unrealized derivative fair value changes and reclassifies certain capital components, adjusted net income declined to $55,784 thousand in Q2 FY2026 from $62,171 thousand a year earlier, and YTD adjusted net income fell to $112,937 thousand from $128,231 thousand. Adjusted TIER was 1.16 for both Q2 and YTD FY2026, slightly below the prior-year levels but above the cooperative’s stated minimum goal of 1.10.
Loans to members grew to $37,842 million as of November 30, 2025, up $762 million, with 78% in distribution borrowers and 16% in power supply. Credit metrics stayed strong: only one nonperforming loan, with balance reduced from $26 million to $24 million at quarter-end and further to $13 million after a subsequent $11 million payment. The allowance for credit losses increased modestly to $43 million, maintaining a 0.11% coverage ratio.
Total debt outstanding rose 2% to $35,596 million, pushing the GAAP debt-to-equity ratio to 11.58 from 11.20, while adjusted debt-to-equity increased to 7.59 from 7.39, still within the targeted range of approximately 8.5-to-1 or below. Liquidity remained substantial: available liquidity of $7,975 million compared with $10,490 million of scheduled debt over the next 12 months, including $3,358 million of member short-term investments, and exceeded by $843 million the $7,132 million of obligations excluding those member investments.
National Rural Utilities Cooperative Finance Corp is offering senior unsecured notes under an existing shelf program. The notes carry a fixed coupon rate of 3.600% paid monthly and are scheduled to mature on January 15, 2028. They are non-callable, meaning they cannot be redeemed early by the issuer. The notes are priced at 100.000% of principal, with a gross selling concession of 0.550%. The first coupon payment is due on February 15, 2026 and is stated as $2.20. Minimum denominations are $1,000 with $1,000 increments, and the notes clear through DTC in book-entry form. A survivor's option is available, and the product ranks as senior unsecured debt of the issuer.
National Rural Utilities Cooperative Finance Corporation is issuing $851,000 of Medium-Term Notes, Series D, under an existing shelf program. The notes are priced at 100% of principal, bear interest at 3.65% per annum, and will be issued on January 13, 2026, with a stated maturity on December 15, 2026.
Interest will be paid semiannually on January 15 and July 15, to holders of record on January 1 and July 1. There is no stated redemption date and no agent’s commission for this tranche. Counsel Hogan Lovells US LLP opines that, after proper authorization, issuance and delivery, the notes will be valid and binding obligations of the company, subject to customary bankruptcy and equitable principles under District of Columbia cooperative law and New York law.
National Rural Utilities Cooperative Finance Corporation is issuing $1,070,000 of Medium-Term Notes, Series D, at 100% of principal amount. The notes carry a fixed interest rate of 3.68% per year, with an original issue date of January 13, 2026 and a maturity date of January 15, 2028.
Interest is payable on January 15 and July 15, to holders of record on January 1 and July 1. The notes have no redemption date and no selling agents’ commission is listed. Counsel Hogan Lovells US LLP opines that, after proper authorization, issuance and delivery, these notes will be valid and binding obligations of the company, subject to typical bankruptcy and creditors’ rights laws and principles of equity under District of Columbia cooperative law and New York law.
National Rural Utilities Cooperative Finance Corporation is offering a new Medium-Term Note, Series D, under an existing shelf program. The note has a principal amount of $268,000, an issue price of 100% of principal, and an interest rate of 3.68% per annum. It will be issued on January 13, 2026 and will mature on January 15, 2028.
Interest is scheduled to be paid semiannually on January 15 and July 15, to holders of record on January 1 and July 1. The note has no stated redemption date and no agent’s commission is listed for this issuance. Counsel Hogan Lovells US LLP states that, after proper authorization and issuance under the indenture, the note will constitute a valid and binding obligation of the company, subject to standard bankruptcy and creditor-rights limitations under District of Columbia cooperative law and New York law.
National Rural Utilities Cooperative Finance Corporation is offering a Medium-Term Note, Series D, with a principal amount of $3,000,000.00. The note is priced at 100% of principal, has an original issue date of January 6, 2026, and matures on January 15, 2027, bearing interest at 3.67% per annum.
Interest is payable on each January 15 and July 15, to holders of record on each preceding January 1 and July 1. The note has no redemption date and no agent’s commission is listed. Counsel Hogan Lovells US LLP states that, after receipt of consideration and proper execution under the indenture, the note will constitute a valid and binding obligation of the company, subject to customary bankruptcy and equity law limitations.
National Rural Utilities Cooperative Finance Corporation is issuing $2,100,000 of Medium-Term Notes, Series D, maturing on November 15, 2026, at 100% of principal amount.
The notes carry a fixed interest rate of 3.65% per annum, with interest paid on January 15 and July 15 to holders of record on January 1 and July 1, respectively. There is no redemption provision before maturity and no agent’s commission, so the company is positioned to receive the full principal amount at issuance.
Company counsel, Hogan Lovells US LLP, opines that once properly authorized, executed and delivered under the indenture, the notes will be valid and binding obligations of the company, subject to customary bankruptcy and equitable principles under District of Columbia cooperative law and New York law.
National Rural Utilities Cooperative Finance Corporation is issuing a $1,400,000 Medium-Term Note, Series D, under its ongoing program. The note will be issued on January 2, 2026 and will mature on January 15, 2027, with a fixed interest rate of 3.67% per annum. Interest is payable twice a year, on each January 15 and July 15, to holders of record on each January 1 and July 1.
The note is sold at 100% of its principal amount, with no stated agent’s commission and no redemption before maturity. Counsel Hogan Lovells US LLP states that, after proper authorization, issuance and delivery under the indenture, the note will constitute a valid and binding obligation of the company, subject to usual bankruptcy and creditors’ rights laws and general principles of equity.
National Rural Utilities Cooperative Finance Corporation is issuing a Medium-Term Note, Series D, with a principal amount of $4,500,000.00. The note is priced at 100% of its principal amount, will be issued on December 31, 2025, and will mature on November 15, 2026.
The note bears interest at a fixed rate of 3.67% per annum, with interest paid on each January 15 and July 15 to holders of record on each January 1 and July 1. There is no redemption date specified and no agent’s commission on this issuance.
Hogan Lovells US LLP states that, after receipt of consideration and proper execution under the indenture and related agreements, the notes will constitute valid and binding obligations of the company, subject to standard bankruptcy, insolvency, and equitable principles under District of Columbia and New York law.
National Rural Utilities Cooperative Finance Corporation is issuing a $450,000 Medium-Term Note, Series D, at 100% of principal with a fixed interest rate of 3.66% per annum. The note will be issued on December 30, 2025 and will mature on October 15, 2026, with interest paid semiannually on each January 15 and July 15 to holders of record on each January 1 and July 1. The note carries no agents’ commission and has no redemption date. Counsel Hogan Lovells US LLP states that, after proper authorization, execution and delivery, the note will constitute a valid and binding obligation of the company, subject to standard bankruptcy, insolvency and equitable principles under District of Columbia cooperative law and New York law.