NCSC Closes on Telecom Consolidation, Expands Board

The consolidation of NCSC with the Rural Telephone Finance Cooperative (RTFC) closed on December 1. With the closing, NCSC has taken over RTFC’s $540 million loan portfolio and will add roughly 185 new voting members to its ranks along with six associates. In addition, the NCSC board has expanded from 10 to 15 members. 

“NCSC is now a larger organization with more loans outstanding, resulting in cost-saving efficiencies that are expected to lead to lower expenses as a percentage of loans outstanding,” Senior Vice President and Chief Banking Officer Joel Allen said. 

Founded 35 years ago to serve the financial needs of rural telecommunications organizations, RTFC, like NCSC, was operated under a management agreement with CFC. The NCSC Board of Directors had been in discussion with the board of RTFC for more than a year regarding the consolidation that will better serve the capital needs of both organizations. In June, NCSC members voting overwhelmingly in favor of bylaws changes that allowed the consolidation to move forward. 

“It makes sense for these two organizations to consolidate,” CFC CEO Andrew Don said. “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 improve the products and services we can offer.” 

The new telecom members are invited to join NCSC for the organization’s 43rd Annual Membership Meeting June 17, 2024, in Indianapolis where the next director elections will take place.