2025-12-10T15:16:32-06:00 2025-05-31 135565207 KPMG LLP 8350 BROAD STREET SUITE 900 MCLEAN VA 22102 990 2024-06-01 520891669 NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION NATI 7034671800 20701 COOPERATIVE WAY DULLES VA 20166 JONATHOAN ANDREW DON CEO 7034671800 2025-12-10 0 0 BRIAN KEARNS P02061479 7032868000 2025-11-20 2024 2025-03-06 01:10:19Z JONATHAN ANDREW DON 20701 COOPERATIVE WAY DULLES VA 20166 2187984733 0 X WWW.NRUCFC.COOP X 1969 VA BRIDGING THE FINANCIAL NEEDS OF THE RURAL ELECTRIC COOPERATIVE NETWORK WITH GLOBAL CAPITAL MARKETS. 23 23 372 0 0 0 0 0 1976761974 2054726116 20967286 9044902 8608396 7451255 2006337656 2071222273 1531683 1124281 0 0 68724693 75128903 0 0 0 1662937849 1759782459 1733194225 1836035643 273143431 235186630 36153418188 38295081990 33155819935 35206469341 2997598253 3088612649 TO BRIDGE THE FINANCIAL NEEDS OF THE RURAL ELECTRIC NETWORK WITH THE EXPECTATIONS OF THE GLOBAL CAPITAL MARKETS, ONE COOPERATIVE AT A TIME. 0 0 1685714700 3000 2061913124 LENDING SERVICES -- CFC PROVIDES LOANS TO ITS MEMBERS, RURAL ELECTRIC COOPERATIVES AND THEIR RELATED ORGANIZATIONS, AND GENERATES INTEREST INCOME FROM THESE LOANS. TO FUND ITS LENDING SERVICES, CFC RAISES FUNDS IN THE CAPITAL MARKETS OR PRIVATE THIRD PARTY TRANSACTIONS AND PAYS ARATE OF RETURN COMMENSURATE WITH CURRENT ECONOMIC CONDITIONS FOR THE USE OF THOSE FUNDS. THESE RAISED FUNDS PERMIT CFC TO MEET THE BORROWING NEEDS OF ITS MEMBERS SO THEY CAN CONTINUE TO PROVIDE ELECTRIC AND POWER SERVICES TO THE CONSUMERS AND BUSINESSES IN THE RURAL TERRITORIESSERVICED BY THOSE MEMBERS/BORROWERS. CFC OPERATES IN SUCH MANNER TO OBTAIN FUNDING BASED ON COST AVAILABLE TO IT AND PASSES THE COSTS AND RESULTING SAVINGS ALONG TO ITS BORROWERS. 1049909 1049909 EDUCATION FUND -- EACH STATEWIDE ASSOCIATION AND ELIGIBLE REGIONAL ASSOCIATION WILL SUBMIT AN APPLICATION FORM DESCRIBING THE PROGRAM FOR WHICH THE GRANT WILL BE USED. CFC CALCULATES THE AMOUNT ALLOTTED TO EACH APPLICANT DURING THE FISCAL YEAR BASED UPON THE TOTAL NUMBER OF CO-OPS WHICH ARE MEMBERS OF CFC AND OF THE ASSOCIATION, WITH RESPECT TO STATEWIDE ASSOCIATIONS, THE NUMBER OF STATES EACH APPLICANT REPRESENTS, AND THE NUMBER OF CO-OPS THAT ARE 100% CFC BORROWERS. THE SENIOR VICE PRESIDENT OF CFC'S CORPORATE RELATIONS GROUP APPROVES THE APPLICATIONS MADE BY THE ASSOCIATIONS. 71372 71372 264247 INTEGRITY FUND -- UTILIZING A RESTRICTED CASH ACCOUNT, CFC MANAGES A VOLUNTARY FUND ESTABLISHED FOR THE PURPOSE OF ASSISTING COOPERATIVES IN DEFENDING THEIR COOPERATIVE TERRITORIES AND PROTECTING COOPERATIVE PRINCIPLES. 1686835981 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 176 0 1 372 1 0 0 0 0 0 0 1 0 X 23 23 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 0 AZ GA X PANKAJ SHAH (VP CHIEF ACCOUNTING OFFICER) 7034671800 20701 COOPERATIVE WAY DULLES VA 20166 GORDON ANTHONY NORTON PRESIDENT 17.00 0.00 X 95000 0 0 MARK SUGGS VICE PRESIDENT 10.00 0.00 X 95000 0 0 BRENT MCRAE SECRETARY TREASURER 5.00 0.00 X 92917 0 0 BARBARA E HAMPTON DIRECTOR 6.00 0.00 X 90000 0 0 WILLIAM KEITH HAYWARD DIRECTOR 5.00 0.00 X 90000 0 0 SHANE LUCAS LARSON DIRECTOR 8.00 0.00 X 87917 0 0 JEFFREY A REHDER DIRECTOR 8.00 0.00 X 87917 0 0 TIMOTHY S ELDRIDGE DIRECTOR 7.00 0.00 X 87083 0 0 CHARLES ABEL II DIRECTOR 4.00 0.00 X 85000 0 0 ANTHONY ANDERSON UNTIL 32025 FORMER DIRECTOR 4.00 0.00 X 85000 0 0 THOMAS A BAILEY DIRECTOR 6.00 0.00 X 85000 0 0 DONALD BIDEGAIN DIRECTOR 3.00 0.00 X 85000 0 0 JARED ECHTERNACH DIRECTOR 10.00 0.00 X 85000 0 0 DARICK EISENBRAUN DIRECTOR 8.00 0.00 X 85000 0 0 BRUCE EVERHART DIRECTOR 10.00 0.00 X 85000 0 0 DENNIS R FULK DIRECTOR 10.00 0.00 X 85000 0 0 MICHAEL J HEINEN DIRECTOR 3.00 0.00 X 85000 0 0 BRADLEY P JANORSCHKE DIRECTOR 6.00 0.00 X 85000 0 0 ANTHONY LARSON DIRECTOR 12.00 0.00 X 85000 0 0 JOHN METCALF DIRECTOR 6.00 0.00 X 85000 0 0 KENDALL J MONTGOMERY DIRECTOR 11.00 0.00 X 85000 0 0 TERRY MICHAEL PARTIN DIRECTOR 10.00 0.00 X 75000 0 0 JOHN BARTLEY START 62024 DIRECTOR 5.00 0.00 X 52500 0 0 DAVID E FELKEL UNTIL 62024 FORMER DIRECTOR 5.00 0.00 X 36667 0 0 JEANETTE INGRID KESSLER DIRECTOR (START 3/2025) 3.00 0.00 X 0 0 0 JONATHAN ANDREW DON CEO 70.00 0.00 X 2551220 0 270040 BRAD CAPTAIN SVP & CHIEF CORPORATE AFFAIRS OFFICER 55.00 0.00 X 603563 0 528875 JOEL ALLEN SVP AND CHIEF BANKING OFFICER 55.00 0.00 X 673366 0 304657 YU LING WANG SVP & CFO 65.00 0.00 X 650311 0 212710 GARY A BRADBURY SVP & CHIEF OPERATING OFFICER 55.00 0.00 X 570156 0 188356 JILL MAISON SVP & CHIEF RELATIONSHIP MANAGEMENT OFFICER 55.00 0.00 X 500392 0 230514 GHOLAM M SALEH SVP & CHIEF RISK OFFICER 70.00 0.00 X 561488 0 101622 NATHAN HOWARD SVP & GENERAL COUNSEL 55.00 0.00 X 495932 0 59124 AMY S LUONGO SVP, STRATEGIC SERVICES 50.00 0.00 X 424006 0 95790 RICHARD PERREAULT UNTIL 62025 VP AND CIO 40.00 0.00 X 475066 0 122891 DAVID W OLAH VP, PORTFOLIO MANAGEMENT 50.00 0.00 X 398184 0 109236 W DANIEL CAWOOD VP, PORTFOLIO MANAGEMENT 50.00 0.00 X 363798 0 122396 ANDREW COLEMAN VP, PORTFOLIO MANAGEMENT 45.00 0.00 X 339075 0 66487 VU LY VP, CAPITAL MARKETS 50.00 0.00 X 296677 0 86315 HEESUN CHOI VP, CAPITAL MARKETS RELATIONS 40.00 0.00 X 285983 0 58500 AAMER ARSHAD VP, PORTFOLIO MANAGEMENT 40.00 0.00 X 239721 0 52730 MATTHEW AUGUSTOSKY VP, PORTFOLIO MANAGEMENT 50.00 0.00 X 245738 0 16026 JOHN FREDERICK SUTER VP, ECONOMIC RESEARCH 40.00 0.00 X 397289 0 217099 LAWRENCE SAUNDERS VP, CREDIT RISK MANAGEMENT 50.00 0.00 X 391540 0 112070 JONATHAN J POLETTI DIRECTOR, INFO. SYSTEMS & DEPUTY CIO 40.00 0.00 X 367855 0 122184 PANKAJ SHAH VP, CHIEF ACCOUNTING OFFICER 55.00 0.00 X 370001 0 60174 KIMBERLY MILLER VP AND DEPUTY GENERAL COUNSEL 50.00 0.00 X 359714 0 57344 13556076 0 3195140 228 0 1 0 SUTHERLAND DIGITAL SERVICES INC 631 EAST BIG BEAVER SUITE 109 TROY MI 48083 IT SERVICES 4558309 FIS CAPITAL MARKETS US LLC 601 RIVERSIDE AVE JACKSONVILLE FL 32204 IT SERVICES 3788006 CORPORATE BROKERS LLC 1 PARK PLACE STE 590 ANNAPOLIS MD 21401 IT SERVICES 3479775 S&P GLOBAL RATINGS 55 WATER ST NEW YORK NY 10041 FINANCIAL SERVICES 3461000 ITERO GROUP LLC PO BOX 543 NEW CUMBERLAND PA 17070 IT SERVICES 2819454 99 INTEREST FROM PSA 522200 1681951270 1681951270 DERIVATIVE CASH SETTLE 522200 342581120 342581120 OTHER INCOME - LOAN FE 522200 21975726 21975726 RECOVERY FOR LOSSES 522200 8218000 8218000 2054726116 11555375 11555375 114131623 120364 116698764 63696 -2567141 56668 -2510473 -2510473 MANAGEMENT FEES 522200 7187008 7187008 INTEGRITY FUND COLLECT 522200 264247 264247 7451255 2071222273 2062177371 0 9044902 1124281 1124281 13897620 13897620 42022817 42022817 9824645 9824645 5400616 5400616 3983205 3983205 219722 219722 286546 286546 1853113 1853113 295546 295546 14827675 14827675 2748353 2748353 1464559 1464559 14867772 14867772 3078589 3078589 3252505 3252505 6873267 6873267 1685371374 1685371374 12615127 12615127 898533 898533 IMPAIRMENT LOSS 7777778 7777778 DUES, SUBSCRIPTIONS & R 899093 899093 COMMITMENT FEE EXPENSE 855501 855501 BANK CHARGES 517797 517797 1079609 340326 739283 1836035643 1686835981 149199662 0 273894609 131263500 10580694 9521689 215717541 290462167 34481863115 37025507031 14653766 13565992 172878924 91211700 85118575 81667224 293107779 124915007 25130000 753352109 618179380 36153418188 38295081990 4636149324 5409248835 30725609 27417732 16595245110 17133014784 11790431934 12544884958 103267958 91903032 33155819935 35206469341 X 968400 966400 0 0 2996629853 3087646249 2997598253 3088612649 36153418188 38295081990 X 235186630 8241023 -152413257 X X 0 1 X 1 0 23795971 23795971 52339978 23371113 28968865 96742975 67840587 28902388 81667224 DERIVATIVE LIABILITES 50092895 OTHER ACCRUED EXPENSES 27300965 GUARANTEE LIABILITY 14396172 CREDIT LOSS ALLOWANCE 113000 91903032 1 MI020 ALGER-DELTA CO-OPERATIVE ELECTRIC ASSOCIATION 426 N 9TH STREET GLADSTONE MI 49837 380289531 501(C)(12) 71372 0 INTEGRITY FUND - TERRITORY THREAT ALABAMA RURAL ELECTRIC ASSOCIATION OF COOPERATIVES PO BOX 244014 MONTGOMERY AL 361244014 630264081 501 (C)(6) 22500 0 EDUCATIONAL FUND-AREA SUMMER CONFERENCE ALASKA POWER ASSOCIATION 703 WEST TUDOR ROAD SUITE 200 ANCHORAGE AK 995036650 920069880 501 (C)(6) 18000 0 EDUCATIONAL FUND-ONGOING TRAINING FOR STATEWIDE STAFF AND ALASKA CHAPERONE AND STUDENTS TO ATTEND IDAHO CONSUMER-OWNED UTILITY ASSN. YOUTH RALLY ARKANSAS ELECTRIC COOPERATIVE INC PO BOX 194208 LITTLE ROCK AR 722194208 710332419 501(C)(12) 16750 0 EDUCATIONAL FUND - TRAINING FOR STATEWIDE STAFF AND EMPLOYEES AT MEMBER SYSTEMS ASSOCIATION OF ILLINOIS ELECTRIC COOPERATIVES PO BOX 3787 SPRINGFIELD IL 627083787 370159736 501 (C)(6) 30000 0 EDUCATIONAL FUND- STATEWIDE SURVEY ASSOCIATION OF LOUISIANA ELECTRIC COOPERATIVES INC 10725 AIRLINE HIGHWAY BATON ROUGE LA 708164299 720400467 501 (C)(6) 12750 0 EDUCATIONAL FUND-RURAL ELECTRIC COOPERATIVES YOUTH TOUR COLORADO RURAL ELECTRIC ASSOCIATION 5400 WASHINGTON STREET DENVER CO 80216 840411220 501 (C)(6) 23250 0 EDUCATIONAL FUND-EMPLOYEE EDUCATION COURSES ELECTRIC COOPERATIVES OF MISSISSIPPI PO BOX 3300 RIDGELAND MS 391583300 640200697 501 (C)(6) 24000 0 EDUCATIONAL FUND-NRECA YOUTH TOUR OF WASHINGTON, DC FLORIDA ELECTRIC COOPERATIVES ASSOCIATION INC 2916 APALACHEE PARKWAY TALLAHASSEE FL 32301 590633990 501 (C)(6) 14500 0 EDUCATIONAL FUND-FECA SUMMER LEADERSHIP CONFERENCE GEORGIA ELECTRIC MEMBERSHIP CORPORATION 2100 EAST EXCHANGE PLACE TUCKER GA 300845336 580530279 501 (C)(6) 33250 0 EDUCATIONAL FUND-GEORGIA EMC SUNBELT AGRICULTURAL EXPOSITION EXHIBIT GOLDEN STATE POWER COOPERATIVE PO BOX 1815 GRAEAGLE CA 96103 680441905 501 (C)(6) 7000 0 EDUCATIONAL FUND-COOPERATIVE DEVELOPMENT & EDUCATION GRAND CANYON STATE ELECTRIC COOPERATIVE ASSOCIATION 2210 S PRIEST DRIVE TEMPE AZ 85282 866056759 501 (C)(6) 16000 0 EDUCATIONAL FUND-NRECA YOUTH TOUR OF WASHINGTON, DC IDAHO CONSUMER-OWNED UTILITIES ASSOCIATION PO BOX 1898 BOISE ID 837011898 820502739 501 (C)(6) 14500 0 EDUCATIONAL FUND-ICUA YOUTH RALLY & ICUA MEMBERS CONFERENCE INDIANA ELECTRIC COOPERATIVES 8888 KEYSTONE CROSSING SUITE 1600 INDIANAPOLIS IN 46240 351499808 501 (C)(6) 35750 0 EDUCATIONAL FUND-EDUCATIONAL RESOURCES AND MEMBER EDUCATION IOWA ASSOCIATION OF ELECTRIC COOPERATIVES 8525 DOUGLAS AVENUE STE 48 DES MOINES IA 503222992 420662488 501 (C)(6) 32250 0 EDUCATIONAL FUND-EDUCATIONAL CONTENT FOR LIVING WITH ENERGY IN IOWA MAGAZINE KANSAS ELECTRIC COOPERATIVES INC PO BOX 4267 TOPEKA KS 666040267 480541902 501(C)(12) 25250 0 EDUCATIONAL FUND-BACK TO BASICS EDUCATIONAL PROGRAM KAUAI ISLAND UTILITY COOPERATIVE 4463 PAHEE STREET SUITE 1 LIHUE HI 967662000 990346113 501 (C)(12) 5500 0 EDUCATIONAL FUND- YOUTH EDUCATION PROGRAMS KENTUCKY ELECTRIC COOPERATIVES PO BOX 32170 LOUISVILLE KY 40232 610420165 501 (C)(6) 18500 0 EDUCATIONAL FUND - DIRECTOR EDUCATION MICHIGAN ELECTRIC COOPERATIVE ASSOCIATION 201 TOWNSEND STREET SUITE 900 LANSING MI 489331529 382214287 501 (C)(6) 12000 0 EDUCATIONAL FUND- YOUTH TOUR MINNESOTA RURAL ELECTRIC ASSOCIATION 11640 - 73RD AVENUE NORTH MAPLE GROVE MN 55369 410417193 501 (C)(6) 32000 0 EDUCATIONAL FUND-BOARD LEADERSHIP CERTIFICATE DIRECTOR COURSES MISSOURI ELECTRIC COOPERATIVES 2722 E MCCARTY STREET JEFFERSON CITY MO 65101 430631824 501 (C)(6) 37750 0 EDUCATIONAL FUND-RURAL ELECTRIC YOUTH TOUR AND YOUTH CONFERENCE AND LEADERSHIP EXP. (CYCLE) MONTANA ELECTRIC COOPERATIVES' ASSOCIATION PO BOX 1306 GREAT FALLS MT 59403 810229220 501 (C)(6) 25000 0 EDUCATIONAL FUND- COOP 101 TRAINING AND NRECA YOUTH TOUR OF WASHINGTON, DC NEBRASKA RURAL ELECTRIC ASSOCIATION PO BOX 82048 LINCOLN NE 68501 470394033 501 (C)(6) 22250 0 EDUCATIONAL FUND-RURAL ELECTRIC YOUTH TOUR NEVADA RURAL ELECTRIC ASSOCIATION 1894 E WILLIAM STREET SUITE 4222 CARSON CITY NV 89701 880237046 501 (C)(6) 11500 0 EDUCATIONAL FUND- STATEWIDE SMART ENERGY PROGRAM NEW MEXICO RURAL ELECTRIC COOPERATIVE ASSOCIATION 614 DON GASPAR AVENUE SANTA FE NM 87505 850155370 501 (C)(6) 14500 0 EDUCATIONAL FUND- DIRECTOR TRAINING NEW YORK STATE RURAL ELECTRIC COOPERATIVE ASSOCIATION INC PO BOX 128 HARTWICK NY 133480128 161264464 501 (C)(6) 7750 0 EDUCATIONAL FUND-STUDENT PARTICIPATION - NRECA LEG. CONFERENCE NORTH CAROLINA ASSOCIATION OF ELECTRIC COOPERATIVES INC 3400 SUMNER BLVD RALEIGH NC 27616 561189186 501 (C)(6) 21500 0 EDUCATIONAL FUND-BRIGHT IDEAS EDUCATION GRANT PROGRAM NORTH DAKOTA ASSOCIATION OF RURAL ELECTRIC COOPERATIVES PO BOX 727 MANDAN ND 585540724 450231058 501 (C)(6) 15750 0 EDUCATIONAL FUND-EDUCATIONAL RESOURCES AND MEMBER EDUCATION NORTHEAST ASSOCIATION OF ELECTRIC COOPERATIVES INC PO BOX 8 EAST MONTPELIER VT 05651 222153529 501 (C)(12) 25500 0 EDUCATIONAL FUND-NEAEC EDUCATION PROGRAM NRECA PO BOX 207434 DALLAS TX 753207434 530116145 501(C)(6) 154659 0 EDUCATIONAL FUND NRECA OHIO'S ELECTRIC COOPERATIVES 6677 BUSCH BOULEVARD COLUMBUS OH 43229 510174617 501 (C)(6) 26750 0 EDUCATIONAL FUND-NRECA COURSES AND LEADERSHIPPROGRAMS OKLAHOMA ASSOCIATION OF ELECTRIC COOPERATIVES INC PO BOX 54309 OKLAHOMA CITY OK 731541309 730556236 501 (C)(6) 23250 0 EDUCATIONAL FUND-NRECA YOUTH TOUR OF WASHINGTON, DC OREGON RURAL ELECTRIC COOPERATIVE ASSOCIATION 8565 SW SALISH LANE SUITE 130 WILSONVILLE OR 970709674 930593238 501 (C)(6) 25250 0 EDUCATIONAL FUND-LEGISLATOR OUTREACH PROGRAM & DIRECTOR EDUCATION PENNSYLVANIA RURAL ELECTRIC ASSOCIATION PO BOX 1266 HARRISBURG PA 171081266 236291530 501 (C)(6) 26250 0 EDUCATIONAL FUND-PREA COMMUNICATIONS WORKSHOP SOUTH DAKOTA RURAL ELECTRIC ASSOCIATION INC PO BOX 1138 PIERRE SD 57501 460231254 501 (C)(12) 20250 0 EDUCATIONAL FUND-YOUTH EXCURSION TENNESSEE ELECTRIC COOPERATIVE ASSOCIATION PO BOX 100912 NASHVILLE TN 37224 620461379 501 (C)(6) 19500 0 EDUCATIONAL FUND-YOUTH LEADERSHIP SUMMIT TEXAS ELECTRIC COOPERATIVES INC 1122 COLORADO ST STE 2400 AUSTIN TX 787012167 741007829 277 63500 0 EDUCATIONAL FUND-YOUR TOUR MAGAZINE AND TEXAS CO-OP POWER TOOL KIT THE ELECTRIC COOPERATIVES OF SOUTH CAROLINA INC 808 KNOX ABBOTT DRIVE CAYCE SC 29033 570308664 501 (C)(6) 19750 0 EDUCATIONAL FUND-EMPLOYEE AND DIRECTOR EDUCATION COURSES UTAH RURAL ELECTRIC ASSOCIATION INC 10714 SOUTH JORDAN GATEWAY SUITE 300 SOUTH JORDAN UT 84095 870402010 501 (C)(6) 10500 0 EDUCATION FUND-NEW LEGISLATOR EDUCATION PROGRAM VA MD & DE ASSOCIATION OF ELECTRIC COOPERATIVES 4201 DOMINION BLVD SUITE 101 GLEN ALLEN VA 23060 540553861 501 (C)(6) 25250 0 EDUCATIONAL FUND-BOARD TRAINING AND EDUCATION WASHINGTON RURAL ELECTRIC COOPERATIVE ASSOCIATION PO BOX 7219 OLYMPIA WA 98507 911236389 501 (C)(6) 18250 0 EDUCATION FUND-WRECA ANNUAL MEETING WISCONSIN ELECTRIC COOPERATIVE ASSOCIATION 222 WEST WASHINGOTN AVENUE SUTE 680 MADISON WI 537032719 391128018 501 (C)(6) 26750 0 EDUCATION FUND-WISCONSIN YOUTH LEADERSHIP CONGRESS AND YOUTH TOUR WYOMING RURAL ELECTRIC ASSOCIATION 2312 CAREY AVENUE CHEYENNE WY 820013627 830207211 501 (C)(12) 14750 0 EDUCATIONAL FUND-NRECA YOUTH TOUR OF WASHINGTON, DC 0 43 PART I, LINE 2 INTEGRITY FUND -- IN ORDER TO BE CONSIDERED FOR A GRANT FROM THE INTEGRITY FUND, A RURAL ELECTRIC SYSTEM MUST ESTABLISH THAT THERE IS AT LEAST ONE OF THE FOLLOWING THREE THREATS TO THE INTEGRITY OF ITS SYSTEM: (I) ALL, OR A SIGNIFICANT PORTION, OF ITS GEOGRAPHICALLY DEFINED TERRITORY OR SPECIFICALLY IDENTIFIED PRESENT OR ANTICIPATED CONSUMERS AND/OR ELECTRIC FACILITIES FACE A THREAT OF ACQUISITION BY A COMPETING ENTITY, (II) THE COOPERATIVE FACES A THREAT OF ITS RIGHT TO OFFER NON-ELECTRIC ENERGY SERVICES TO CONSUMERS, OR (III) THE COOPERATIVE IS FACING REGULATORY, JUDICIAL OR LEGISLATIVE CHALLENGES THAT THREATEN ITS EXISTENCE UNDER THE COOPERATIVE BUSINESS MODEL. EDUCATION FUND -- EACH STATEWIDE ASSOCIATION AND ELIGIBLE REGIONAL ASSOCIATION WILL SUBMIT AN APPLICATION FORM DESCRIBING THE PROGRAM FOR WHICH THE GRANT WILL BE USED. CFC CALCULATES THE AMOUNT ALLOTTED TO EACH APPLICANT DURING THE FISCAL YEAR BASED UPON THE TOTAL NUMBER OF CO-OPS WHICH ARE MEMBERS OF CFC AND OF THE ASSOCIATION, WITH RESPECT TO STATEWIDE ASSOCIATIONS, THE NUMBER OF STATES EACH APPLICANT REPRESENTS, AND THE NUMBER OF CO-OPS THAT ARE 100% CFC BORROWERS. THE SENIOR VICE PRESIDENT OF CFC'S CORPORATE RELATIONS GROUP APPROVES THE APPLICATIONS MADE BY THE ASSOCIATIONS. CHARITABLE CONTRIBUTIONS -- CFC OCCASIONALLY MAKES DONATIONS TO 501(C)(3) TAX-EXEMPT ORGANIZATIONS FOR CHARITABLE PURPOSES. WHEN DOING SO, IT RECEIVES A DONOR ACKNOWLEDGMENT LETTER WHICH IT MAINTAINS AS DOCUMENTATION OF THIS DONATION. IF ANY DONATIONS OR GRANTS ARE MADE FOR A PARTICULAR CHARITABLE PURPOSE, CFC REQUIRES THAT THE GRANTEE PROVIDE THE ORGANIZATION WITH REPORTS OF EXPENDITURES SO THAT CFC IS ABLE TO CONFIRM THAT THE FUNDS WERE EXPENDED FOR THE INTENDED PURPOSE. X X 1 0 X X X X X 0 1 0 0 0 0 0 1 0 JONATHAN ANDREW DON CEO 1167362 0 396520 0 987338 0 235790 0 34250 0 2821260 0 0 0 BRAD CAPTAIN SVP & CHIEF CORPORATE AFFAIRS OFFICE 390115 0 151450 0 61998 0 520144 0 8731 0 1132438 0 0 0 JOEL ALLEN SVP AND CHIEF BANKING OFFICER 466386 0 169950 0 37030 0 264788 0 39869 0 978023 0 0 0 YU LING WANG SVP & CFO 450191 0 162000 0 38120 0 192393 0 20317 0 863021 0 0 0 GARY A BRADBURY SVP & CHIEF OPERATING OFFICER 393576 0 142650 0 33930 0 147408 0 40948 0 758512 0 0 0 JILL MAISON SVP & CHIEF RELATIONSHIP MANAGEMENT 320410 0 122878 0 57104 0 225260 0 5254 0 730906 0 0 0 GHOLAM M SALEH SVP & CHIEF RISK OFFICER 398923 0 142430 0 20135 0 72003 0 29619 0 663110 0 0 0 JOHN FREDERICK SUTER VP, ECONOMIC RESEARCH 220857 0 91842 0 84590 0 176916 0 40183 0 614388 0 0 0 RICHARD PERREAULT UNTIL 62025 VP AND CIO 329688 0 111307 0 34071 0 78746 0 44145 0 597957 0 0 0 NATHAN HOWARD SVP & GENERAL COUNSEL 350162 0 121518 0 24252 0 56863 0 2261 0 555056 0 0 0 AMY S LUONGO SVP, STRATEGIC SERVICES 296202 0 95442 0 32362 0 76229 0 19561 0 519796 0 0 0 DAVID W OLAH VP, PORTFOLIO MANAGEMENT 288282 0 92100 0 17802 0 76842 0 32394 0 507420 0 0 0 LAWRENCE SAUNDERS VP, CREDIT RISK MANAGEMENT 277554 0 100027 0 13959 0 84384 0 27686 0 503610 0 0 0 JONATHAN J POLETTI DIRECTOR, INFO. SYSTEMS & DEPUTY CIO 239820 0 93451 0 34584 0 81616 0 40568 0 490039 0 0 0 W DANIEL CAWOOD VP, PORTFOLIO MANAGEMENT 250790 0 76933 0 36075 0 88081 0 34315 0 486194 0 0 0 PANKAJ SHAH VP, CHIEF ACCOUNTING OFFICER 282467 0 81620 0 5914 0 21966 0 38208 0 430175 0 0 0 KIMBERLY MILLER VP AND DEPUTY GENERAL COUNSEL 264537 0 88835 0 6342 0 38669 0 18675 0 417058 0 0 0 ANDREW COLEMAN VP, PORTFOLIO MANAGEMENT 258827 0 73820 0 6428 0 27652 0 38835 0 405562 0 0 0 VU LY VP, CAPITAL MARKETS 208428 0 63567 0 24682 0 47046 0 39269 0 382992 0 0 0 HEESUN CHOI VP, CAPITAL MARKETS RELATIONS 199424 0 63219 0 23340 0 38871 0 19629 0 344483 0 0 0 AAMER ARSHAD VP, PORTFOLIO MANAGEMENT 168954 0 59972 0 10795 0 26278 0 26452 0 292451 0 0 0 MATTHEW AUGUSTOSKY VP, PORTFOLIO MANAGEMENT 185327 0 59897 0 514 0 14912 0 1114 0 261764 0 0 0 PART I, LINE 1A THE PERQUISITES PROVIDED TO THE CEO ARE LIMITED TO AN ANNUAL AUTOMOBILE ALLOWANCE AS WELL AS AN ANNUAL SPOUSAL AIR TRAVEL ALLOWANCE. ADDITIONALLY, BECAUSE THE CEO IS FREQUENTLY REQUIRED TO TRAVEL TO MEMBER SITES IN RURAL PARTS OF THE COUNTRY, THE BOARD OF DIRECTORS HAS AUTHORIZED HIM TO OCCASIONALLY UTILIZE A PRIVATE PLANE SERVICE TO FACILITATE EXTENSIVE BUSINESS TRAVEL. THIS SERVICE HAS BEEN USED INFREQUENTLY AND IS SOLELY FOR BUSINESS PURPOSES. IN ADDITION, MR. DON MAY ALSO RECEIVE AN ANNUAL EXECUTIVE PHYSICAL PAID FOR BY CFC. PART I, LINE 1B: TO PROVIDE THE ANNUAL AUTOMOBILE AND SPOUSAL AIR TRAVEL PERQUISITES IN AN EFFICIENT FASHION, THE BOARD AUTHORIZED AN ANNUAL ALLOWANCE RATHER THAN PROVIDING UNLIMITED REIMBURSEMENT OR USE OF A COMPANY-OWNED VEHICLE. THE AMOUNT OF EACH ALLOWANCE IS AUTHORIZED ANNUALLY BY THE BOARD AND IS DETERMINED BASED ON THE ESTIMATED COST FOR OPERATION AND MAINTENANCE OF AN AUTOMOBILE AND THE ANTICIPATED COST OF AIR TRAVEL BY MR. DON'S SPOUSE. THESE PAYMENTS WERE TREATED AS TAXABLE COMPENSATION. CFC DOES NOT HAVE A FORMAL POLICY REGARDING THESE PAYMENTS OR REIMBURSEMENT OF THESE EXPENSES. ALL OTHER APPROPRIATE BUSINESS EXPENSES INCURRED ARE SUBJECT TO AND REIMBURSED BY A FORMAL WRITTEN PLAN. PART I, LINE 3: CFC'S COMPENSATION COMMITTEE (THE "COMMITTEE"), WHICH IS COMPRISED OF CFC EXECUTIVE COMMITTEE BOARD MEMBERS, DETERMINES AND APPROVES THE COMPENSATION OF CFC'S CEO. THE COMMITTEE ANNUALLY REVIEWS AND APPROVES APPROPRIATE CORPORATE GOALS AND OBJECTIVES RELATED TO THE CEO'S COMPENSATION AND EVALUATES PERFORMANCE IN LIGHT OF THOSE GOALS AND OBJECTIVES. THE CEO'S COMPENSATION IS COMPRISED OF BASE PAY, SHORT TERM INCENTIVE COMPENSATION AND PERQUISITES. IN FISCAL YEAR 2025, AN INDEPENDENT CONSULTANT WAS ENGAGED BY THE COMMITTEE TO CONDUCT A COMPENSATION SURVEY AND PROVIDE COMPENSATION DATA FOR THE CEO POSITION USING PEER ORGANIZATIONS IDENTIFIED BY THE INDEPENDENT CONSULTANT THROUGH DISCUSSIONS WITH THE COMMITTEE. THE INDEPENDENT CONSULTANT INCLUDED COMPANIES IN THE COMPENSATION COMPARISON GROUP THAT WERE SIMILAR TO CFC IN ASSET SIZE, INDUSTRY AND BUSINESS DESCRIPTION. THE COMPANIES TARGETED AS PEER COMPANIES INCLUDED SIX MEMBERS OF THE FARM CREDIT SYSTEM AND 11 REGIONAL BANKS OR FINANCIAL SERVICES COMPANIES. THE INDEPENDENT CONSULTANT LED THE COMMITTEE THROUGH AN ASSESSMENT OF CEO COMPENSATION DATA AT THE COMPARISON GROUP COMPANIES. THE INDEPENDENT CONSULTANT'S DATA INCLUDED BOTH ACTUAL COMPENSATION AND TARGET COMPENSATION BASED ON INFORMATION OBTAINED FROM EACH COMPARATOR GROUP COMPANY'S MOST RECENT ANNUAL REPORT OR PROXY STATEMENT. THE ELEMENTS OF COMPENSATION REVIEWED INCLUDE CURRENT BASE SALARY AS WELL AS ANY ADDITIONAL BONUS, INCENTIVES OR SPECIAL AWARDS. THE COMMITTEE REVIEWED TOTAL COMPENSATION DATA FOR THE COMPARATOR GROUP FOR INFORMATIONAL PURPOSES AND USED THIS DATA SOLELY TO DETERMINE THE COMPETITIVENESS OF OUR CEO COMPENSATION. PART I, LINE 4B: CFC OFFERS AN EXECUTIVE BENEFIT RESTORATION PLAN WHICH IS A SUPPLEMENT TO THE RETIREMENT SECURITY PLAN TO ELIGIBLE EXECUTIVE OFFICERS OF THE COMPANY. THE 457(F) PLAN RESTORES THE VALUE OF THE RETIREMENT SECURITY PLAN FOR EACH OFFICER TO THE LEVEL IT WOULD BE IF THE IRS LIMITS ON ANNUAL PAY AND ANNUAL ANNUITY BENEFITS WERE NOT IN PLACE. THE BENEFIT AND PAYOUT FORMULA UNDER THE RESTORATION COMPONENT IS SIMILAR TO THAT UNDER THE QUALIFIED PLAN COMPONENT. WHEN ANY OF THE EXECUTIVE OFFICERS PARTICIPATING IN THE EXECUTIVE BENEFIT RESTORATION PLAN HAVE SATISFIED THE PROVISIONS ESTABLISHED TO RECEIVE THE BENEFIT FROM THE PLAN AND THE OFFICER NO LONGER HAS A RISK OF FORFEITURE OF THE BENEFITS, DISTRIBUTIONS ARE THEN MADE ANNUALLY FROM THE PLAN TO EACH EXECUTIVE OFFICER SHOULD THEY HAVE AN ACCRUED BENEFIT. FOR CALENDAR YEAR 2024, ONE OFFICER HAD ACCRUED VESTED BENEFITS AND RECEIVED THE FOLLOWING DISTRIBUTION FROM THE PLAN DISCUSSED ABOVE: ANDREW DON $865,177. PART I, LINE 7: OUR ANNUAL CASH INCENTIVE PROGRAM FOR FISCAL YEAR 2025 IS A ONE-YEAR CASH INCENTIVE TIED TO BOTH THE ANNUAL PERFORMANCE OF THE ORGANIZATION AND INDIVIDUAL PERFORMANCE. WE BELIEVE THAT BY PAYING AN INCENTIVE LINKED TO THE ACHIEVEMENT OF ANNUAL OPERATING GOALS AND INDIVIDUAL PERFORMANCE, ALL EMPLOYEES, INCLUDING NAMED EXECUTIVE OFFICERS, WILL FOCUS THEIR EFFORTS ON THE MOST IMPORTANT STRATEGIC OBJECTIVES THAT WILL HELP US FULFILL OUR MISSION TO OUR MEMBERS AND OUR OBLIGATIONS TO THE FINANCIAL MARKETS, WHILE ALSO EXHIBITING HIGH LEVELS OF PERFORMANCE. ADDITIONALLY, THE ANNUAL INCENTIVE PAY ENHANCES OUR ABILITY TO PROVIDE COMPETITIVE COMPENSATION, WHILE AT THE SAME TIME TYING TOTAL COMPENSATION PAID TO THE ACHIEVEMENT OF CORPORATE GOALS. EVERY EMPLOYEE PARTICIPATES IN THE ANNUAL INCENTIVE PROGRAM, AND THE CORPORATE STRATEGIC GOALS ARE THE SAME FOR ALL EMPLOYEES, INCLUDING THE NAMED EXECUTIVE OFFICERS. THE ANNUAL INCENTIVE PROGRAM PROVIDES MAXIMUM ANNUAL CASH INCENTIVE OPPORTUNITIES BASED UPON THE LEVEL OF THE POSITION WITHIN OUR BASE PAY STRUCTURE, RANGING FROM 26% TO 40% OF BASE PAY. EXECUTIVE OFFICERS ARE ELIGIBLE TO RECEIVE ANNUAL CASH INCENTIVE COMPENSATION UP TO 40% OF THEIR BASE PAY. THE LEGACY LONG-TERM INCENTIVE PROGRAM WAS A THREE-YEAR PLAN THAT WAS TIED TO CFC'S LONG-TERM STRATEGIC OBJECTIVES. THE LONG-TERM INCENTIVE PROGRAM WAS IMPLEMENTED TO CREATE DYNAMIC TENSION BETWEEN SHORT-TERM OBJECTIVES AND LONG-TERM GOALS. EXECUTIVE OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES EMPLOYED AS OF MAY 31, 2021 WERE ELIGIBLE TO PARTICIPATE IN THE PLAN AND RECEIVED PERFORMANCE UNITS THAT WERE CALCULATED AT 20% - 25% OF BASE PAY. THE VALUE OF THE PERFORMANCE UNITS WAS FROZEN AT $20 PER PERFORMANCE UNIT ACCORDING TO THE LEVEL OF NATIONAL RURAL'S ISSUER CREDIT RATINGS BY THE RATING AGENCIES ON MAY 31, 2022. THE LONG-TERM INCENTIVE PLAN PROGRAM ENDED EFFECTIVE MAY 31, 2022, AND FINAL PAYMENTS WERE MADE ON MAY 31, 2024. FORM 990, PART VI, SECTION A, LINE 6 NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION IS A MEMBERSHIP ORGANIZATION. AS OF MAY 31, 2025, THERE WERE 1,016 MEMBERS AND ASSOCIATES. MEMBERSHIP INCLUDED: CLASS A. THERE WERE 842 CLASS A MEMBERS - COOPERATIVE OR NONPROFIT CORPORATIONS, PUBLIC CORPORATIONS, UTILITY DISTRICTS, AND OTHER PUBLIC BODIES, WHICH HAVE RECEIVED OR ARE ELIGIBLE TO RECEIVE A LOAN OR COMMITMENT FOR A LOAN FROM THE RUS OR ANY SUCCESSOR AGENCY, AND WHICH ARE ENGAGED OR PLANNING TO ENGAGE IN THE FURNISHING OF UTILITY SERVICES TO THEIR MEMBERS AND PATRONS FOR THEIR USE AS ULTIMATE CONSUMERS. CLASS B. THERE WERE 68 CLASS B MEMBERS - COOPERATIVE OR NONPROFIT CORPORATIONS WHICH ARE FEDERATIONS OF CLASS A MEMBERS OR OF OTHER CLASS B MEMBERS, OR BOTH, OR WHICH ARE OWNED AND CONTROLLED BY CLASS A MEMBERS OR BY OTHER CLASS B MEMBERS, OR BOTH, AND WHICH ARE ENGAGED OR PLANNING TO ENGAGE IN THE FURNISHING OF UTILITY SERVICES PRIMARILY TO CLASS A MEMBERS OR OTHER CLASS B MEMBERS. CLASS C. THERE WERE 62 CLASS C MEMBERS - STATEWIDE AND REGIONAL ASSOCIATIONS WHICH ARE WHOLLY-OWNED OR CONTROLLED BY CLASS A MEMBERS OR CLASS B MEMBERS, OR BOTH, OR WHICH ARE WHOLLY-OWNED SUBSIDIARIES OF A CFC MEMBER, AND WHICH DO NOT FURNISH UTILITY SERVICES BUT WHICH SUPPLY OTHER FORMS OF SERVICE TO THEIR MEMBERS. CLASS D. THERE WAS 1 CLASS D MEMBER. CLASS D MEMBERS ARE NATIONAL ASSOCIATIONS OF COOPERATIVES COMPRISED OF CLASS A, CLASS B AND CLASS C MEMBERS. IN ORDER TO BE ELIGIBLE FOR MEMBERSHIP TO CFC, A NATIONAL ASSOCIATION MUST HAVE, AT THE TIME OF ADMISSION TO CFC, MEMBER COOPERATIVES DOMICILED IN AT LEAST 80% OF THE STATES OF THE UNITED STATES. IN ADDITION TO MEMBERS, ASSOCIATES (NUMBERING 43) ARE NOT-FOR-PROFIT ENTITIES ORGANIZED ON A COOPERATIVE BASIS WHICH ARE OWNED, CONTROLLED OR OPERATED BY CLASS A, B OR C MEMBERS AND WHICH PROVIDE NON-ELECTRIC SERVICES PRIMARILY FOR THE BENEFIT OF CONSUMERS. ASSOCIATES ARE NOT ENTITLED TO VOTE AT ANY MEETING OF THE MEMBERS AND ARE NOT ELIGIBLE TO BE REPRESENTED ON OUR BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7A CFC'S MEMBERS ARE DIVIDED INTO ELEVEN DISTRICTS. EACH DISTRICT APPOINTS TWO DIRECTORS. THE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION ("NRECA"), AS THE SOLE CLASS D MEMBER, APPOINTS TWO DIRECTORS FOR DISTRICT 11. FOR DISTRICTS 1 THROUGH 10, THE TWO DIRECTORS MUST INCLUDE ONE DIRECTOR, WHO IS A TRUSTEE OR DIRECTOR OF A MEMBER ORGANIZED WITHIN THE DISTRICT, AND ONE, WHO IS A MANAGER OF A MEMBER ORGANIZATION WITHIN THE DISTRICT; PROVIDED THAT, EXCEPT FOR DISTRICT 11, AND IN THE CASE WHERE ONLY ONE STATE IS LOCATED IN A DISTRICT, NO TWO DIRECTORS CAN REPRESENT MEMBERS WITH THEIR HEADQUARTERS IN THE SAME STATE. ALL CFC DIRECTORS OTHER THAN THE TWO DIRECTORS DESIGNATED BY NRECA ARE ELECTED FOR A THREE YEAR TERM AND CAN SERVE A MAXIMUM OF TWO CONSECUTIVE TERMS. UPON EXPIRATION OF THE TERM OF A DIRECTOR, MEMBERS FROM THAT DISTRICT ELECT A DIRECTOR THAT MEETS THE QUALIFICATIONS OUTLINED ABOVE TO REPRESENT THEM ON CFC'S BOARD. IF THE BOARD OF DIRECTORS IN ITS DISCRETION SO DETERMINES, THEN THERE MAY BE ONE ADDITIONAL DIRECTOR ELECTED BY THE MEMBERS TO SERVE ON THE BOARD OF DIRECTORS FROM TIME TO TIME WHO MEETS THE QUALIFICATIONS AS MAY BE REQUIRED BY THE SECURITIES AND EXCHANGE COMMISSION, A GOVERNMENTAL AGENCY OR AUTHORITY, OR A NATIONAL STOCK EXCHANGE TO SERVE AS AN AUDIT COMMITTEE FINANCIAL EXPERT. FORM 990, PART VI, SECTION A, LINE 7B PURSUANT TO THE BUSINESS ORGANIZATIONS CODE OF THE DISTRICT OF COLUMBIA, CFC MEMBERS MUST APPROVE THE SALE OR DISPOSITION OF MORE THAN 75% OF THE COMPANY'S ASSETS, MERGERS FOR WHICH THE COMPANY WILL NOT BE THE SURVIVING ENTITY, AND THE DISSOLUTION OF THE COMPANY. FORM 990, PART VI, SECTION B, LINE 11B A DRAFT OF THE FORM 990 WAS PREPARED BY EXTERNAL TAX ADVISORS, KPMG LLP, AND REVIEWED BY INTERNAL COUNSEL AND SENIOR MANAGEMENT. A DRAFT WAS ALSO PROVIDED TO THE CFC BOARD OF DIRECTORS THROUGH THEIR ELECTRONIC BOARD PORTAL FOR THEIR REVIEW AND COMMENTS IN ADVANCE OF THE RETURN BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C OUR BOARD OF DIRECTORS HAS ESTABLISHED A WRITTEN POLICY GOVERNING RELATED-PERSON TRANSACTIONS. THE POLICY COVERS TRANSACTIONS BETWEEN CFC AND ITS DIRECTORS, EXECUTIVE OFFICERS OR KEY EMPLOYEES AND THEIR IMMEDIATE FAMILY MEMBERS AND ENTITIES OF WHICH ANY OF OUR DIRECTORS, EXECUTIVE OFFICERS OR KEY EMPLOYEES (I) IS AN OFFICER, DIRECTOR, TRUSTEE, ALTERNATIVE DIRECTOR OR TRUSTEE OR EMPLOYEE, (II) CONTROLS OR (III) HAS A SUBSTANTIAL INTEREST. UNDER THIS POLICY, A RELATED-PERSON TRANSACTION IS ANY TRANSACTION IN EXCESS OF $120,000 IN WHICH CFC WAS, IS OR IS PROPOSED TO BE A DIRECT OR INDIRECT PARTICIPANT IN WHICH A RELATED PERSON HAD, HAS OR WILL HAVE A DIRECT OR INDIRECT MATERIAL INTEREST IN THE TRANSACTION. RELATED-PERSON TRANSACTIONS ARE SUBJECT TO REVIEW BY THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS (EXCLUDING ANY INTERESTED DIRECTOR), BASED ON WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO CFC AND CONSISTENT WITH THE BEST INTERESTS OF CFC AND ITS MEMBERS. RELATED CREDITS ARE EXTENSIONS OF CREDIT TO, OR FOR THE BENEFIT OF, RELATED PERSONS AND ENTITIES THAT ARE MADE ON SUBSTANTIALLY THE SAME TERMS AS, AND FOLLOW UNDERWRITING PROCEDURES THAT ARE NO LESS STRINGENT THAN, THOSE PREVAILING AT THE TIME FOR COMPARABLE TRANSACTIONS GENERALLY OFFERED BY CFC. RELATED CREDITS ARE NOT SUBJECT TO THE PROCEDURES FOR TRANSACTIONS WITH RELATED PERSONS BECAUSE WE WERE ESTABLISHED FOR THE VERY PURPOSE OF EXTENDING FINANCING TO OUR MEMBERS. WE, THEREFORE, ENTER INTO LOAN AND GUARANTEE TRANSACTIONS WITH MEMBERS OF WHICH OUR OFFICERS AND DIRECTORS ARE OFFICERS, DIRECTORS, TRUSTEES, ALTERNATIVE DIRECTORS OR TRUSTEES, OR EMPLOYEES IN THE ORDINARY COURSE OF OUR BUSINESS. ALL RELATED CREDITS ARE REVIEWED FROM TIME TO TIME BY OUR INTERNAL CORPORATE CREDIT COMMITTEE, WHICH MONITORS OUR EXTENSIONS OF CREDIT, AND OUR INDEPENDENT THIRD-PARTY REVIEWER, WHICH REVIEWS OUR CREDIT-EXTENSION POLICIES ON AN ANNUAL BASIS. ALL LOANS, INCLUDING RELATED CREDITS, ARE APPROVED IN ACCORDANCE WITH AN INTERNAL CREDIT APPROVAL MATRIX, WITH EACH LEVEL OF RISK OR EXPOSURE POTENTIALLY ESCALATING THE REQUIRED APPROVAL FROM OUR LENDING STAFF TO MANAGEMENT, A CREDIT COMMITTEE OR THE BOARD OF DIRECTORS. TO ENSURE COMPLIANCE WITH THIS POLICY, NO RELATED PERSONS MAY BE PRESENT IN PERSON OR BY TELECONFERENCE WHILE A RELATED CREDIT IS BEING CONSIDERED. UNDER NO CIRCUMSTANCES MAY WE EXTEND CREDIT TO A RELATED PERSON OR ANY OTHER PERSON IN THE FORM OF A PERSONAL LOAN. AS A COOPERATIVE, CFC WAS ESTABLISHED FOR THE VERY PURPOSE OF EXTENDING FINANCING TO ITS MEMBERS, FROM WHICH OUR DIRECTORS MUST BE DRAWN. LOANS AND GUARANTEES TO MEMBER SYSTEMS OF WHICH DIRECTORS OF CFC ARE OFFICERS, DIRECTORS, TRUSTEES, ALTERNATIVE DIRECTORS OR TRUSTEES, OR EMPLOYEES, ARE MADE IN THE ORDINARY COURSE OF CFC BUSINESS ON THE SAME TERMS, INCLUDING INTEREST RATES AND COLLATERAL, AS THOSE PREVAILING AT THE TIME FOR COMPARABLE TRANSACTIONS WITH OTHER MEMBERS AND THAT DO NOT INVOLVE MORE THAN NORMAL RISK OF UNCOLLECTIBILITY OR PRESENT OTHER UNFAVORABLE FEATURES. IT IS ANTICIPATED THAT, CONSISTENT WITH ITS LOAN AND GUARANTEE POLICIES IN EFFECT FROM TIME TO TIME, ADDITIONAL LOANS AND GUARANTEES WILL BE MADE BY CFC TO MEMBER SYSTEMS AND TRADE AND SERVICE ORGANIZATIONS OF WHICH DIRECTORS OF CFC OR THEIR IMMEDIATE FAMILY MEMBERS (I) ARE OFFICERS, DIRECTORS, TRUSTEES, ALTERNATIVE DIRECTORS OR TRUSTEES OR EMPLOYEES, (II) CONTROL OR (III) HAVE A SUBSTANTIAL BENEFICIAL INTEREST. CFC HAS ADOPTED A POLICY WHEREBY SUBSTANTIALLY ALL EXTENSIONS OF CREDIT TO SUCH ENTITIES ARE APPROVED ONLY BY THE DISINTERESTED DIRECTORS. ADDITIONALLY, CURRENT EXECUTIVE OFFICERS AND DIRECTORS, FORMER EXECUTIVE OFFICERS AND DIRECTORS, AND KEY EMPLOYEES ARE REQUIRED TO ANSWER QUESTIONS IN AN ANNUAL DIRECTOR AND OFFICER SURVEY IN ORDER TO IDENTIFY ANY RELATIONSHIPS OR TRANSACTIONS THAT MUST BE REPORTED ON CFC'S FORM 990, INCLUDING BUSINESS TRANSACTIONS BETWEEN CFC AND AN INTERESTED PERSON INVOLVING MORE THAN $10,000. FORM 990, PART VI, SECTION B, LINE 15A CFC'S COMPENSATION COMMITTEE (THE "COMMITTEE"), WHICH IS COMPRISED OF CFC EXECUTIVE COMMITTEE BOARD MEMBERS, DETERMINES AND APPROVES THE COMPENSATION OF CFC'S CEO. THE COMMITTEE ANNUALLY REVIEWS AND APPROVES APPROPRIATE CORPORATE GOALS AND OBJECTIVES RELATED TO THE CEO'S COMPENSATION AND EVALUATES PERFORMANCE IN LIGHT OF THOSE GOALS AND OBJECTIVES. THE CEO'S COMPENSATION IS COMPRISED OF BASE PAY, SHORT TERM INCENTIVE COMPENSATION AND PERQUISITES. IN FISCAL YEAR 2025, AN INDEPENDENT CONSULTANT WAS ENGAGED BY THE COMMITTEE TO CONDUCT A COMPENSATION SURVEY AND PROVIDE COMPENSATION DATA FOR THE CEO POSITION USING PEER ORGANIZATIONS IDENTIFIED BY THE INDEPENDENT CONSULTANT THROUGH DISCUSSIONS WITH THE COMMITTEE. THE INDEPENDENT CONSULTANT INCLUDED COMPANIES IN THE COMPENSATION COMPARISON GROUP THAT WERE SIMILAR TO CFC IN ASSET SIZE, INDUSTRY AND BUSINESS DESCRIPTION. THE COMPANIES TARGETED AS PEER COMPANIES INCLUDED SIX MEMBERS OF THE FARM CREDIT SYSTEM AND 11 REGIONAL BANKS OR FINANCIAL SERVICES COMPANIES. THE INDEPENDENT CONSULTANT LED THE COMMITTEE THROUGH AN ASSESSMENT OF CEO COMPENSATION DATA AT THE COMPARISON GROUP COMPANIES. THE INDEPENDENT CONSULTANT'S DATA INCLUDED BOTH ACTUAL COMPENSATION AND TARGET COMPENSATION BASED ON INFORMATION OBTAINED FROM EACH COMPARATOR GROUP COMPANY'S MOST RECENT ANNUAL REPORT OR PROXY STATEMENT. THE ELEMENTS OF COMPENSATION REVIEWED INCLUDE CURRENT BASE SALARY AS WELL AS ANY ADDITIONAL BONUS, INCENTIVES OR SPECIAL AWARDS. THE COMMITTEE REVIEWED TOTAL COMPENSATION DATA FOR THE COMPARATOR GROUP FOR INFORMATIONAL PURPOSES AND USED THIS DATA SOLELY TO DETERMINE THE COMPETITIVENESS OF OUR CEO COMPENSATION. OUR ANNUAL CASH INCENTIVE PROGRAM FOR FISCAL YEAR 2025 IS A ONE-YEAR CASH INCENTIVE TIED TO BOTH THE ANNUAL PERFORMANCE OF THE ORGANIZATION AND INDIVIDUAL PERFORMANCE. WE BELIEVE THAT BY PAYING AN INCENTIVE LINKED TO THE ACHIEVEMENT OF ANNUAL OPERATING GOALS AND INDIVIDUAL PERFORMANCE, ALL EMPLOYEES, INCLUDING NAMED EXECUTIVE OFFICERS, WILL FOCUS THEIR EFFORTS ON THE MOST IMPORTANT STRATEGIC OBJECTIVES THAT WILL HELP US FULFILL OUR MISSION TO OUR MEMBERS AND OUR OBLIGATIONS TO THE FINANCIAL MARKETS, WHILE ALSO EXHIBITING HIGH LEVELS OF PERFORMANCE. ADDITIONALLY, THE ANNUAL INCENTIVE PAY ENHANCES OUR ABILITY TO PROVIDE COMPETITIVE COMPENSATION, WHILE AT THE SAME TIME TYING TOTAL COMPENSATION PAID TO THE ACHIEVEMENT OF CORPORATE GOALS. EVERY EMPLOYEE PARTICIPATES IN THE ANNUAL INCENTIVE PROGRAM, AND THE CORPORATE STRATEGIC GOALS ARE THE SAME FOR ALL EMPLOYEES, INCLUDING THE NAMED EXECUTIVE OFFICERS. THE ANNUAL INCENTIVE PROGRAM PROVIDES MAXIMUM ANNUAL CASH INCENTIVE OPPORTUNITIES BASED UPON THE LEVEL OF THE POSITION WITHIN OUR BASE PAY STRUCTURE, RANGING FROM 26% TO 40% OF BASE PAY. EXECUTIVE OFFICERS ARE ELIGIBLE TO RECEIVE ANNUAL CASH INCENTIVE COMPENSATION UP TO 40% OF THEIR BASE PAY. THE LEGACY LONG-TERM INCENTIVE PROGRAM WAS A THREE-YEAR PLAN THAT WAS TIED TO CFC'S LONG-TERM STRATEGIC OBJECTIVES. THE LONG-TERM INCENTIVE PROGRAM WAS IMPLEMENTED TO CREATE DYNAMIC TENSION BETWEEN SHORT-TERM OBJECTIVES AND LONG-TERM GOALS. EXECUTIVE OFFICERS, KEY EMPLOYEES AND HIGHLY COMPENSATED EMPLOYEES EMPLOYED AS OF MAY 31, 2021 WERE ELIGIBLE TO PARTICIPATE IN THE PLAN AND RECEIVED PERFORMANCE UNITS THAT WERE CALCULATED AT 20% - 25% OF BASE PAY. THE VALUE OF THE PERFORMANCE UNITS WAS FROZEN AT $20 PER PERFORMANCE UNIT ACCORDING TO THE LEVEL OF NATIONAL RURAL'S ISSUER CREDIT RATINGS BY THE RATING AGENCIES ON MAY 31, 2022. THE LONG-TERM INCENTIVE PLAN PROGRAM ENDED EFFECTIVE MAY 31, 2022, AND FINAL PAYMENTS WERE MADE ON MAY 31, 2024. DESPITE ENDING THE LONG-TERM INCENTIVE PROGRAM, CFC MAINTAINED A PAYOUT CONTINGENCY LINKED TO ITS ISSUER CREDIT RATINGS FOR THE FISCAL YEAR 2025 ANNUAL INCENTIVE PLAN, UNDERSCORING THE ONGOING IMPORTANCE OF THESE RATINGS IN PERFORMANCE EVALUATIONS AND COMPENSATION DECISIONS. THE COMMITTEE DELEGATES THE POWER TO REVIEW AND APPROVE ALL EMPLOYEE COMPENSATION TO THE CEO, WHO EXERCISES HIS JUDGMENT TO SET THE ANNUAL BASE PAY FOR THE OTHER EXECUTIVE OFFICERS AND KEY EMPLOYEES, AS WELL AS EACH EMPLOYEE BASED ON GENERAL MARKET DATA, OVERALL PERFORMANCE AND LEADERSHIP ACCOMPLISHMENTS. IN DETERMINING THE BASE COMPENSATION PAID TO CFC'S EXECUTIVE OFFICERS AND KEY EMPLOYEES, THE CEO REVIEWED NATIONAL, CREDIBLE COMPENSATION SURVEYS FOR FINANCIAL SERVICES ORGANIZATIONS OF SIMILAR ASSET SIZE TO OBTAIN A GENERAL UNDERSTANDING OF CURRENT COMPENSATION PRACTICES AND TO ENSURE THAT THE BASE PAY COMPONENT IS COMPETITIVE, MEANING GENERALLY WITHIN THE 50TH PERCENTILE OF COMPARATIVE PAY FOR SIMILAR POSITIONS. THE CEO DID NOT REVIEW OR CONSIDER THE UNDERLYING ORGANIZATIONS COMPRISING THE SURVEY INFORMATION, BUT INSTEAD CONSIDERED ONLY THE AGGREGATE COMPENSATION DATA. EACH EXECUTIVE OFFICER AND KEY EMPLOYEE IS ELIGIBLE TO PARTICIPATE IN CFC'S ANNUAL INCENTIVE AND LONG TERM INCENTIVE PLANS AS DESCRIBED ABOVE WITH RESPECT TO CFC'S CEO. CFC DOES NOT PROVIDE SIGNIFICANT PERQUISITES OR PERSONAL BENEFITS TO ITS EXECUTIVE OFFICERS OR KEY EMPLOYEES. FORM 990, PART VI, SECTION C, LINE 19 CFC'S ARTICLES OF INCORPORATION AND BYLAWS, AS AMENDED, AND ANNUAL AND PERIODIC FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC THROUGH THE SECURITIES AND EXCHANGE COMMISSION'S "SEC'S" WEBSITE AND ON CFC'S WEBSITE AT WWW.NRUCFC.COOP. CFC'S CONFLICT OF INTEREST POLICY, TITLED THE RELATED PERSONS TRANSACTIONS AND RELATED CREDITS POLICY, IS AVAILABLE ON CFC'S WEBSITE AT WWW.NRUCFC.COOP.CFC'S ARTICLES OF INCORPORATION ARE FILED AS EXHIBIT 3.1 TO ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED MAY 31, 2014 (FILED AUGUST 28, 2014). CFC'S BYLAWS ARE FILED AS EXHIBIT 3.2 TO THE FORM 10-Q FOR THE QUARTER ENDED AUGUST 31, 2020 (FILED ON OCTOBER 15, 2020). CFC'S ANNUAL AND PERIODIC FINANCIAL STATEMENTS ARE PERIODICALLY FILED WITH THE SEC ON FORM 10-K AND FORM 10-Q. FORM 990, PART VI, QUESTION 16B AS A LENDER, CFC, FROM TIME TO TIME, MAY HAVE TO FORECLOSE ON THE ASSETS OF A BORROWER. AS PART OF SUCH ACTIONS, THE COMPANY MAY RECEIVE INTERESTS IN JOINT VENTURES WITH TAXABLE ENTITIES. CFC TAKES SUCH INTERESTS ONLY IN ORDER TO MAXIMIZE ITS RECOVERY ON THE LOAN RECEIVABLE. CFC DOES NOT ENTER INTO JOINT VENTURES WITH TAXABLE ENTITIES AS PART OF ITS CORE LENDING BUSINESS. TO DATE, THE COMPANY'S INVESTMENT IN THESE JOINT VENTURES HAS BEEN NOMINAL. CFC HAS DEVELOPED A WRITTEN POLICY THAT REQUIRES THE COMPANY TO EVALUATE ITS PARTICIPATION IN JOINT VENTURE ARRANGEMENTS AND TAKE STEPS TO SAFEGUARD THE COMPANY'S 501(C)(4) TAX EXEMPT STATUS. FORM 990, PART XI, LINE 9: NET PATRONAGE CAPITAL RETIREMENT -46,845,706. DERIVATIVE FORWARD VALUE CHANGE -104,551,989. NET CHANGE IN OTHER OCI COMPONENTS -820,687. NET CHANGE IN MEMBERSHIP FEES -2,000. NET CHANGE IN INTEGRITY FUND -192,875. FORM 990 PART XII, LINE 2C WHILE THERE IS NO SEPERATE AUDIT PERFORMED OF THE CFC FINANCIAL STATEMENTS, THE CFC FINANCIAL STATEMENTS ARE CONSOLIDATED WITH THE STATEMENTS OF NATIONAL COOPERATIVE SERVICE CORPORATION AND AUDITED AS CONSOLIDATED FINANCIAL STATEMENTS. THE INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS REPORT DIRECTLY TO THE AUDIT COMMITTEE AND THE AUDIT COMMITTEE IS RESPONSIBLE FOR THE RESOLUTION OF DISAGREEMENTS BETWEEN MANAGEMENT AND THE INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS. CONSISTENT WITH SEC REQUIREMENTS, THE AUDIT COMMITTEE HAS ADOPTED A POLICY TO PRE-APPROVE ALL AUDIT AND PERMISSIBLE NON-AUDIT SERVICES PROVIDED BY THE INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS. THE POLICY PROVIDES THAT PRE-APPROVAL IS NOT REQUIRED FOR TAX COMPLIANCE AND TAX PLANNING AND ADVICE ENGAGEMENTS FOR CFC AND ITS AFFILIATES PROVIDED THE FEES OF EACH SUCH ENGAGEMENT ARE NOT MORE THAN FIVE PERCENT OF TOTAL REVENUES PAID TO THE INDEPENDENT PUBLIC ACCOUNTANTS AND DO NOT IMPAIR THEIR INDEPENDENCE. THE COMMITTEE MEETS WITH OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM, INTERNAL AUDITORS, CHIEF EXECUTIVE OFFICER AND FINANCIAL MANAGEMENT EXECUTIVES TO REVIEW THE SCOPE AND RESULTS OF AUDITS AND RECOMMENDATIONS MADE BY THOSE PERSONS WITH RESPECT TO INTERNAL AND EXTERNAL ACCOUNTING CONTROLS AND SPECIFIC ACCOUNTING AND FINANCIAL REPORTING ISSUES AND TO ASSESS CORPORATE RISK. THE BOARD HAS ADOPTED A WRITTEN CHARTER FOR THE AUDIT COMMITTEE WHICH MAY BE FOUND ON OUR WEBSITE, WWW.NRUCFC.COOP. THE PROCESS HAS NOT CHANGED FROM THE PRIOR PERIOD.