Fannie Mae 2006 Annual Report Download - page 94

our Single-Family segment will absorb a higher amount of indirect costs resulting in an increase in their
administrative expenses.
CONSOLIDATED BALANCE SHEET ANALYSIS
We seek to structure the composition of our balance sheet and manage its size to ensure compliance with our
regulatory and internal capital requirements, to provide adequate liquidity to meet our needs, to mitigate our
interest rate and credit risk exposure, and to maximize long-term stockholder value. Total assets grew to
$843.9 billion as of December 31, 2006, an increase of $9.8 billion, or 1%, from December 31, 2005. Total
liabilities were $802.3 billion, an increase of $7.5 billion, or less than 1%, from December 31, 2005.
Stockholders’ equity of $41.5 billion reflected an increase of $2.2 billion, or 6%, from December 31, 2005.
The major asset components of our balance sheet include our mortgage-related assets and non-mortgage
investments. We fund and manage the interest rate risk on these investments through the issuance of debt
securities and the use of derivatives. Our debt securities and derivatives represent the major liability
components of our balance sheet. Following is a discussion of the major components of our assets and
liabilities.
Mortgage Investments
Table 12 shows the composition of our mortgage portfolio by product type and the carrying value, which
reflects the net impact of our purchases, sales and liquidations, as of the end of each year of the five-year
period ended December 31, 2006.
Table 12: Mortgage Portfolio Composition
(1)
2006 2005 2004 2003 2002
As of December 31,
(Dollars in millions)
Mortgage loans:
(2)
Single-family:
Government insured or guaranteed . . . . . . . . . . . . . . . $ 20,106 $ 15,036 $ 10,112 $ 7,284 $ 6,404
Conventional:
Long-term, fixed-rate. . . . . . . . . . . . . . . . . . . . . . . 202,339 199,917 230,585 250,915 223,794
Intermediate-term, fixed-rate
(3)
. . . . . . . . . . . . . . . . 53,438 61,517 76,640 85,130 59,521
Adjustable-rate . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,820 38,331 38,350 19,155 12,142
Total conventional single-family . . . . . . . . . . . . . . . . . 302,597 299,765 345,575 355,200 295,457
Total single-family. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322,703 314,801 355,687 362,484 301,861
Multifamily:
Government insured or guaranteed . . . . . . . . . . . . . . . 968 1,148 1,074 1,204 1,898
Conventional:
Long-term, fixed-rate. . . . . . . . . . . . . . . . . . . . . . . 5,098 3,619 3,133 3,010 3,165
Intermediate-term, fixed-rate
(3)
. . . . . . . . . . . . . . . . 50,847 45,961 39,009 29,717 15,213
Adjustable-rate . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,429 1,151 1,254 1,218 1,107
Total conventional multifamily . . . . . . . . . . . . . . . . . . 59,374 50,731 43,396 33,945 19,485
Total multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,342 51,879 44,470 35,149 21,383
Total mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383,045 366,680 400,157 397,633 323,244
Unamortized premiums and other cost basis adjustments,
net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 943 1,254 1,647 1,768 1,358
Lower of cost or market adjustments on loans held for
sale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (93) (89) (83) (50) (16)
Allowance for loan losses for loans held for investment . . (340) (302) (349) (290) (216)
Total mortgage loans, net . . . . . . . . . . . . . . . . . . . . . . . . . 383,555 367,543 401,372 399,061 324,370
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