NCSC Board Recommends Organization Expand To Improve Operations

Over the last year, the NCSC Board of Directors has been in discussion with the board of another CFC lending affiliate, the Rural Telephone Finance Cooperative (RTFC), regarding a proposal to consolidate the two organizations to better serve the capital needs of their members. 

Founded 35 years ago to serve the financial needs of rural telecommunications organizations, RTFC, like NCSC, is operated under a management agreement with CFC. Today, it has a $482 million portfolio. At a Special Membership Meeting on April 17 in Washington, D.C., RTFC members voted in favor of consolidating with NCSC. 

NCSC members will have the opportunity to vote for or against proposed bylaw amendments at the organization’s Annual Membership Meeting taking place June 19 in Seattle in conjunction with CFC Forum 2023. The bylaw changes, if passed, would create a new Class T membership in NCSC and pave the way to migrate RTFC borrowers and members to NCSC. 

“It makes sense for CFC to consolidate our ancillary lending activities into a single organization,” CFC CEO Andrew Don said. “From CFC’s perspective, we’ll be able to more efficiently continue our mission of service to rural utility systems across the nation. From a member point of view, the consolidation will enhance the products and services we can offer to benefit their rural communities.” 

If the bylaw changes are approved, NCSC will have a 15-member board with 10 directors representing existing electric members—the same number NCSC has now—and five directors representing the new Class T telco members. 

CFC Senior Vice President and Chief Banking Officer Joel Allen said the merger of the two organizations’ loan portfolios strengthens NCSC. “Our combined portfolio will allow us to capitalize on the operational efficiencies of a company with $1.5 billion in assets to better serve the rural utility industry,” he said.  

A packet of information about the NCSC Annual Membership Meeting and the proposed bylaw changes, along with director election materials, will be mailed soon. NCSC voting members should be on the lookout for it to arrive in the next few weeks. Members can vote by mail or in person at the meeting in Seattle. Please contact Erin Steverson, erin.steverson@nrucfc.coop, with any questions regarding NCSC annual meeting registration.