CFC Update

Document Sample
CFC Update Powered By Docstoc
					CFC Update
REMA CEO and Board Chair
      Conference
       April 7-8, 2010
CFC Stays Open in Blizzard
•   Maintained Normal Business Hours
•   Activated and Tested Disaster/Virtual Recovery
    Program
•   Personal on VPN Connections Worked from Their
    Homes
•   Backup Facilities Available If Needed
    CFC FY10
•   Education Fund
     – Funds to promote the education of the
       cooperative way of doing business
     – Historically a total of over $7.2 million
     – $607,800 Presented Nationally
       in 2010
     – Minnesota received $28,400
•   Youth Education Fund – NCSC
     – Minnesota received $4,000
Integrity Fund
•   Helps Protect Your Service Territories
     – Annexation, Legislation, Takeover Attempts
•   Financial Grant Assistance to Cooperatives
•   Funded by Member Contributions
•   2009 Moratorium Continued
•   No Solicitation of Contributions Again This Year
•   Fund Has Healthy Balance of $7 million
Cooperative Financial Professional
Certificate Program
•   Began in November
•   Limited to 25 Participants
•   Program combines accelerated educational
    seminars with case-study analysis
•   One week in Madison, Wisconsin
•   Online classes at home
•   One week of case studies at CFC headquarters
Co-op Financial Professional Cert.
•   Second program Begins May 3 to 7
•   Fluno Center for Executive Education at University of
    Wisconsin in Madison
•   To be followed by series of webinars and then week
    at CFC in Herndon, Va., September 27 to October 1
•   To learn more about program or to register, contact
    CFC’s John Penry or NRECA’s Joe McDonald
CFC-NRECA Rate Guide
•   Developing new guide that provides information on
    rate issues facing industry
•   “21st Century Rate Strategies for 21st Century
    Challenges”
•   Makes recommendations for cooperative action,
    discusses goals for rate process and provides
    guidelines for rate design
•   Full rate guide will be available by June
CFC and Partners Host Orientations
•   CFC, NRECA and NRTC host orientation sessions for
    new electric cooperative CEOs and CFOs in 2010,
    as well as for new communicators
•   New CFO Orientation held March 3 to 5
•   New Communicators orientation held March 17 to
    19
•   New CEO Orientation held April 6 to 8
CFC Contributions to Co-op Network
•   $20 billion in outstanding loans
•   Cooperative.com support: $400,000
•   Network event sponsorships: $500,000
•   CFC Forum: $800,000
•   Education Fund: $600,000
CFC Board Reorganizes
•   Board elected officers and committee chairmen
     – Reuben McBride, Graham County EC in Arizona
       as president
     – J. David Wasson, Jr., of Laurens EC in S. Carolina
       as vice president
     – Delbert Cranford, of Randolph EMC in N. Carolina
       as secretary-treasurer
CFC Announcement Re: CoBank
•   February 25th Announced Settlement
•   CoBank Employees Accessed Extranet
•   Improperly accessed confidential and proprietary
    information
•   Settlement Included:
     – Monetary Payment
     – Non-Monetary Commitments
CFC Portfolio Overview
•   High quality asset
    portfolio—
     – 92% of the portfolio
       consists of loans to rural
       electric cooperatives
       and related entities.
CFC Second Quarter
    November 30, 2009



•    Total Assets $20.4 Billion versus $21 billion prior YE
•    Loans to Distribution Borrowers totaled $13.5 billion
     representing 69% of total portfolio
•    Power Supply Borrowers totaled approximately $4
     billion or 20% of the portfolio
CFC Second Quarter
 November 30, 2009




Long Term Fixed-Rate loans   $15.1 Billion 77.0%
Long Term Variable loans     $ 1.6 Billion 8.0%
Short Term Loans             $ 1.7 Billion 8.5%
    CFC FY 2010
•   November 2009
     – Moody’s affirmed CFC Rating: Outlook remains stable
        • Senior Secured Debt A1
        • Subordinated Debt A3

•   March 2010
     – 14 Banks committed to provide $1.3 billion in revolving credit to
       CFC
•   March 26, 2010
     – Fitch Upgrades Short-term to an F1with a stable outlook
     – Fitch affirms Long-term at “A-” with a Stable outlook
    Member Capital Securities

•   $398 million total in member investments
    through January 2010
•   CFC distributed $34 million in interest
    earnings to its members in the semi-annual
    interest payments for the Capital Term
    Certificates (CTCs) and Member Capital
    Securities (MCS)
InterNotes

•   2009 InterNotes Sales—
    – National Rural has sold $858.4 million in
      InterNotes.
    – National Rural is averaging $25.6 million in sales
      per week.
    – The weighted average coupon is 4.202%.
    – The weighted average term is 2.0-yrs.
Patronage Capital Distribution

•   28th Consecutive Year
•   Over $1.3 billion returned to Members
•   Retired $41.4 million in cash of FY09’s allocation
    CFC PowerVision
    (Long term Shelf Financing)

•   PowerVision Loans Nationally
     – Outstanding loans over $5 Billion
     – Unadvanced loans of $4 Billion
•   CFC will continue to search for additional
    avenues and opportunities to meet future
    funding needs of our member systems
Emergency Lines of Credit


•   68 systems are utilizing CFC
    ELOCs totaling $440.5 million
    outstanding with an additional
    $532 million available
Interest Rate Outlook
                           Futures Market Forecast
Futures                  30-day       2-year   5-year   10-year   30-year
Contract               Fed Funds      T-Note   T-Note   T-Bond    T-Bond

Spot Rate             0.00% - 0.25%   1.06%    2.58%    3.87%     4.73%

Jun-10                   0.22%        1.76%    2.91%    4.11%     5.03%

Sep-10                   0.32%        2.05%    3.14%    4.28%     5.10%

Dec-10                   0.55%        2.34%    3.36%    4.44%     5.17%

Mar-11                   0.89%        2.64%    3.59%    4.61%     5.17%
Source: www.INO.com
2010 Federal Funds Rate Outlook
                                         Futures
      FOMC                               Market     Expected        Projected
Meeting Dates                            Trading   Rate Change    Fed Funds Rate
                                         Current   0.0% - 0.25%
  Apr. 28, 2010                          0.20%     No Change       0.0% - 0.25%
 Jun. 23, 2010                           0.22%     No Change       0.0% - 0.25%
 Aug. 10, 2010                           0.27%     No Change       0.0% - 0.25%
 Sep. 21, 2010                           0.32%     No Change       0.0% - 0.25%
                                                      25 bps
 Nov. 03, 2010                           0.46%       Increase         0.50%
 Dec. 14, 2010                           0.55%     No Change          0.50%




 Source: Bloomberg. Data as of 4/2/10.
CFC Forum – June 7-9 In Philadelphia

•   PreForum Workshops –
        June 5-7
     – Operating Budget and
       Analysis
     – Rates Workshop
     – Cooperative Accounting
•   Now Available to Register
CFC Forum 2010 - Philadelphia
•   Keynote speakers, June 7-9, include:
     – Rudy Giuliani, former mayor of New York City
     – Fareed Zakaria, Newsweek editor and CNN Host
     – Mitch Albom, sports columnist and author
     – Walter Isaacson, author and former Time and
                         CNN executive
     – Charlie Cook, political analyst and publisher of
                      Cook Political Report
CFC: We’re More than Just “Money”
  • Integrity Fund
  • Education Fund
  • Key Ratio Trend Analysis (KRTA)
  • Compass – 10 year financial forecast
  • BudgetPro
  • Director Training
  • Cooperative Financial Professional Certificate
     • CFC & NRECA
  • Cooperative.Com
  • CFC Financial Forum
National Rural Utilities Cooperative Finance Corporation’s Core Values of
Service, Integrity and Excellence Form the Very Center of Our
Organization …

SERVICE: Knowing our internal and external customers, anticipating their needs, and
responding to their requirements in an appropriate and timely manner. Our customers are the
reason we exist.

INTEGRITY: Doing the right thing at the right time. We never take an action just because
it’s profitable or expedient.

EXCELLENCE: Exercising the passion and determination to perform to the highest
standards in order to achieve a positive difference within our membership, our organization
and our community    .
Thank you for your continued support!
                        Mike Bunney, Regional Vice President

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:5
posted:11/26/2011
language:English
pages:27