National Rural Utilities Cooperative Finance Corp /Dc/ (NYSE: NRUC)

National Rural Utilities Cooperative Finance Corporation is a member owned nonprofit finance cooperative that provides loans and credit enhancements to rural electric utilities and through its subsidiary National Cooperative Services Corporation also finances rural telecommunications entities.

The company generates revenue primarily from interest earned on its loan portfolio fees associated with letters of credit and guarantees and interest on its investments.

The company operates through the following segments: CFC and NCSC.

• The CFC segment is a member owned tax exempt cooperative that extends loans to rural electric members for construction acquisitions system and facility repairs maintenance enhancements and ongoing operations to support electric distribution and generation and transmission systems and provides credit enhancements in the form of letters of credit and debt guarantees.

• The NCSC segment is a taxable cooperative that provides financing to its electric and telecommunications members which include CFC members entities eligible for CFC membership government or quasi government owners of rural electric systems and rural telecommunications providers and their affiliates and is funded primarily through a management agreement with CFC.

The company occupies a niche position as a member owned finance cooperative that supplements the loan programs of the Rural Utilities Service by offering cost based financing to rural electric and telecommunications utilities.

The company serves rural electric utilities rural telecommunications providers and associated members and affiliates that are not for profit or quasi government entities.