Fannie Mae 2006 Annual Report Download - page 124

Table 31: 2005 Quarterly Consolidated Statements of Income
March 31 June 30 September 30 December 31
For the 2005 Quarter Ended
(Dollars and shares in millions, except per share amounts)
Interest income:
Investments in securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,613 $ 6,288 $ 5,884 $ 5,371
Mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,449 5,128 5,133 4,978
Total interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,062 11,416 11,017 10,349
Interest expense:
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,766 1,791 1,525 1,480
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,509 6,728 6,828 6,712
Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,275 8,519 8,353 8,192
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,787 2,897 2,664 2,157
Guaranty fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 903 1,239 872 911
Losses on certain guaranty contracts
(1)
. . . . . . . . . . . . . . . . . . . . . (33) (31) (40) (42)
Investment gains (losses), net . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,454) 596 (169) (307)
Derivatives fair value gains (losses), net . . . . . . . . . . . . . . . . . . . . (749) (2,641) (539) (267)
Debt extinguishment gains (losses), net . . . . . . . . . . . . . . . . . . . . (142) 18 86 (30)
Losses from partnership investments . . . . . . . . . . . . . . . . . . . . . . (200) (210) (211) (228)
Feeandotherincome................................. 353 459 298 416
Non-interest income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . (1,322) (570) 297 453
Administrative expenses:
Salaries and employee benefits . . . . . . . . . . . . . . . . . . . . . . . . 174 253 259 273
Professional services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 166 219 302
Occupancy expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 54 56 58
Other administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . 31 34 33 45
Total administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . 363 507 567 678
Minority interest in (earnings) losses of consolidated subsidiaries . . (4) 1 — 1
Provision for credit losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 125 172 87
Foreclosed property expense (income) . . . . . . . . . . . . . . . . . . . . . 4 (28) (8) 19
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 49 76 73
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473 654 807 858
Income (loss) before federal income taxes and extraordinary gains
(losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,992 1,673 2,154 1,752
Provision for federal income taxes . . . . . . . . . . . . . . . . . . . . . . . . 217 333 406 321
Income before extraordinary gains (losses) . . . . . . . . . . . . . . . . . . 1,775 1,340 1,748 1,431
Extraordinary gains (losses), net of tax effect . . . . . . . . . . . . . . . . 65 (2) (3) (7)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,840 $ 1,338 $ 1,745 $ 1,424
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (121) (122) (122) (121)
Net income available to common stockholders . . . . . . . . . . . . . . . $ 1,719 $ 1,216 $ 1,623 $ 1,303
Basic earnings (loss) per share:
Earnings before extraordinary gains (losses). . . . . . . . . . . . . . $ 1.71 $ 1.25 $ 1.68 $ 1,35
Extraordinary gains (losses), net of tax effect . . . . . . . . . . . . . .06 — — (0.01)
Basic earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.77 $ 1.25 $ 1.68 $ 1.34
Diluted earnings (loss) per share:
Earnings before extraordinary gains (losses). . . . . . . . . . . . . . $ 1.70 $ 1.25 $ 1.66 $ 1.35
Extraordinary gains (losses), net of tax effect . . . . . . . . . . . . . 0.06 — — (0.01)
Diluted earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.76 $ 1.25 $ 1.66 $ 1.34
Cash dividends per common share . . . . . . . . . . . . . . . . . . . . . . . . 0.26 0.26 0.26 0.26
Weighted-average common shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 969 970 970 970
Diluted
(2)
...................................... 998 971 998 998
(1)
Reclassified from guaranty fee income to conform to current year presentation.
(2)
For the quarter ended June 30, 2005, diluted shares outstanding exclude the effect of our convertible preferred stock as
inclusion would be anti-dilutive for that period.
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