Fannie Mae 2004 Annual Report Download - page 357

Single-Family
Credit Guaranty HCD
Capital
Markets Total
For the Quarter Ended September 30, 2004
(Dollars in millions)
Net interest income (expense)
(1)
. . . . . . . . . . . . . . . . . . . . . . $ 125 $ (36) $ 3,911 $ 4,000
Guaranty fee income (expense)
(2)
. . . . . . . . . . . . . . . . . . . . . 1,278 100 (311) 1,067
Investment gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 — 879 887
Derivatives fair value losses, net . . . . . . . . . . . . . . . . . . . . . . — — (7,136) (7,136)
Debt extinguishment losses, net . . . . . . . . . . . . . . . . . . . . . . — — (21) (21)
Losses from partnership investments . . . . . . . . . . . . . . . . . . . — (177) — (177)
Fee and other income (expense) . . . . . . . . . . . . . . . . . . . . . . 41 87 (25) 103
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . (74) 9 — (65)
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (215) (93) (109) (417)
Income (loss) before federal income taxes and extraordinary
gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,163 (110) (2,812) (1,759)
Provision (benefit) for federal income taxes . . . . . . . . . . . . . . 406 (220) (1,096) (910)
Income (loss) before extraordinary gains (losses) . . . . . . . . . 757 110 (1,716) (849)
Extraordinary losses, net of tax effect . . . . . . . . . . . . . . . . . . — — (18) (18)
Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 757 $ 110 $(1,734) $ (867)
(1)
Includes cost of capital charge.
(2)
Includes intercompany guaranty fee revenue (expense) of $260 million allocated to Single-Family Credit Guaranty and
HCD from Capital Markets for absorbing the credit risk on mortgage loans and Fannie Mae MBS held in our portfolio.
Single-Family
Credit Guaranty HCD
Capital
Markets Total
For the Quarter Ended December 31, 2004
(Dollars in millions)
Net interest income (expense)
(1)
. . . . . . . . . . . . . . . . . . . . . . . $ 142 $ (37) $4,078 $4,183
Guaranty fee income (expense)
(2)
. . . . . . . . . . . . . . . . . . . . . . 1,127 104 (312) 919
Investment gains (losses), net . . . . . . . . . . . . . . . . . . . . . . . . . 15 — (271) (256)
Derivatives fair value losses, net. . . . . . . . . . . . . . . . . . . . . . . — — (943) (943)
Debt extinguishment losses, net . . . . . . . . . . . . . . . . . . . . . . . — — (46) (46)
Losses from partnership investments . . . . . . . . . . . . . . . . . . . . — (203) — (203)
Fee and other income (expense) . . . . . . . . . . . . . . . . . . . . . . . 53 105 (326) (168)
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . (201) (18) — (219)
Other expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (360) (132) (486) (978)
Income (loss) before federal income taxes and extraordinary
gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 776 (181) 1,694 2,289
Provision (benefit) for federal income taxes . . . . . . . . . . . . . . . 297 (238) 651 710
Income before extraordinary gains (losses) . . . . . . . . . . . . . . 479 57 1,043 1,579
Extraordinary gain, net of tax effect . . . . . . . . . . . . . . . . . . . . — — 3 3
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 479 $ 57 $1,046 $1,582
(1)
Includes cost of capital charge.
(2)
Includes intercompany guaranty fee revenue (expense) of $260 million allocated to Single-Family Credit Guaranty and
HCD from Capital Markets for absorbing the credit risk on mortgage loans and Fannie Mae MBS held in our portfolio.
F-106
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)