Fannie Mae 2004 Annual Report Download - page 255

FANNIE MAE
Consolidated Statements of Income
(Dollars and shares in millions, except per share amounts)
2004 2003 2002
(Restated) (Restated)
For the Year Ended December 31,
Interest income:
Investments in securities ................................................. $26,428 $27,694 $ 31,054
Mortgage loans . ...................................................... 21,390 21,370 19,870
Total interest income . ................................................. 47,818 49,064 50,924
Interest expense:
Short-term debt . ...................................................... 4,399 4,012 5,399
Long-term debt . ...................................................... 25,338 25,575 27,099
Total interest expense ................................................. 29,737 29,587 32,498
Net interest income ...................................................... 18,081 19,477 18,426
Guaranty fee income (includes imputed interest of $833, $314 and $107 for 2004, 2003 and 2002,
respectively) . . . ...................................................... 3,604 3,281 2,516
Investment losses, net..................................................... (362) (1,231) (501)
Derivatives fair value losses, net . . ............................................ (12,256) (6,289) (12,919)
Debt extinguishment losses, net . . ............................................ (152) (2,692) (814)
Loss from partnership investments ............................................ (702) (637) (509)
Fee and other income ..................................................... 404 340 89
Non-interest loss..................................................... (9,464) (7,228) (12,138)
Administrative expenses:
Salaries and employee benefits . ............................................ 892 849 679
Professional services . . . ................................................. 435 238 218
Occupancy expenses . . . ................................................. 185 166 165
Other administrative expenses. . ............................................ 144 201 94
Total administrative expenses ............................................ 1,656 1,454 1,156
Minority interest in earnings of consolidated subsidiaries . ............................. (8) — —
Provision for credit losses . ................................................. 352 365 284
Foreclosed property expense (income) . . . ....................................... 11 (12) (11)
Other expenses . . . ...................................................... 607 156 105
Total expenses ...................................................... 2,618 1,963 1,534
Income before federal income taxes, extraordinary gains (losses), and cumulative effect of change in
accounting principle . . . ................................................. 5,999 10,286 4,754
Provision for federal income taxes ............................................ 1,024 2,434 840
Income before extraordinary gains (losses) and cumulative effect of change in accounting principle . . 4,975 7,852 3,914
Extraordinary gains (losses), net of tax effect . . . .................................. (8) 195 —
Cumulative effect of change in accounting principle, net of tax effect . . ................... — 34 —
Net income ........................................................... $ 4,967 $ 8,081 $ 3,914
Preferred stock dividends and issuance costs at redemption ............................ (165) (150) (111)
Net income available to common stockholders . . .................................. $ 4,802 $ 7,931 $ 3,803
Basic earnings per share:
Earnings before extraordinary gains (losses) and cumulative effect of change in accounting
principle .......................................................... $ 4.96 $ 7.88 $ 3.83
Extraordinary gains (losses), net of tax effect . . .................................. (0.01) 0.20 —
Cumulative effect of change in accounting principle, net of tax effect . ................... — 0.04 —
Basic earnings per share ................................................. $ 4.95 $ 8.12 $ 3.83
Diluted earnings per share:
Earnings before extraordinary gains (losses) and cumulative effect of change in accounting
principle .......................................................... $ 4.94 $ 7.85 $ 3.81
Extraordinary gains (losses), net of tax effect . . .................................. — 0.20 —
Cumulative effect of change in accounting principle, net of tax effect . ................... — 0.03 —
Diluted earnings per share ................................................ $ 4.94 $ 8.08 $ 3.81
Cash dividends per common share ............................................ $ 2.08 $ 1.68 $ 1.32
Weighted-average common shares outstanding:
Basic . . . ........................................................... 970 977 992
Diluted . ........................................................... 973 981 998
See Notes to Consolidated Financial Statements.
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