Freddie Mac 2004 Annual Report Download - page 31

SELECTED FINANCIAL DATA(1)
At or for the Year Ended December 31,
2004 2003 2002 2001 2000
(dollars in millions, except share-related amounts)
Income Statement Data
Net interest income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 9,137 $ 9,498 $ 9,525 $ 7,448 $ 3,758
Non-interest income (loss)(2) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3,039) (244) 7,154 (1,591) 2,656
Income before cumulative eÅect of change in accounting
principles, net of taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,937 4,816 10,090 3,115 3,666
Cumulative eÅect of change in accounting principles, net
of taxesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ ÌÌÌ43Ì
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 2,937 $ 4,816 $ 10,090 $ 3,158 $ 3,666
Earnings per common share before cumulative eÅect of
change in accounting principles, net of taxes
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 3.96 $ 6.69 $ 14.22 $ 4.19 $ 5.04
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.94 6.68 14.17 4.17 5.01
Earnings per common share after cumulative eÅect of
change in accounting principles, net of taxes
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 3.96 $ 6.69 $ 14.22 $ 4.25 $ 5.04
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.94 6.68 14.17 4.23 5.01
Dividends per common share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1.20 $ 1.04 $ 0.88 $ 0.80 $ 0.68
Weighted average common shares outstanding (in
thousands)
BasicÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 689,282 687,094 692,727 692,603 692,097
Diluted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 691,521 688,675 695,116 695,973 695,307
Balance Sheet Data
Total assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 795,284 $ 803,449 $ 752,249 $ 641,100 $462,803
Senior debt securities, net due within one yearÏÏÏÏÏÏÏÏÏÏ 282,303 295,262 244,429 264,227 183,374
Senior debt securities, net due after one year ÏÏÏÏÏÏÏÏÏÏÏ 443,772 438,738 415,662 311,013 244,732
Subordinated debt, due after one year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 5,622 5,613 5,605 3,128 144
Miscellaneous liabilities(3) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 30,662 30,420 52,914 40,489 14,252
Minority interest in consolidated subsidiaries ÏÏÏÏÏÏÏÏÏÏÏ 1,509 1,929 2,309 2,619 2,944
Stockholders' equity ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31,416 31,487 31,330 19,624 17,357
Portfolio Balances(4)
Retained portfolio (unpaid principal balances)(5) ÏÏÏÏÏÏÏÏ $ 652,936 $ 645,466 $ 567,272 $ 497,639 $392,298
Total PCs issued and Structured Securities (unpaid
principal balances)(6) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,208,968 1,162,068 1,090,624 961,511 838,323
Total mortgage portfolio (unpaid principal balances)ÏÏÏÏÏ 1,505,206 1,414,399 1,316,609 1,150,723 975,612
Ratios
Return on average assets(7) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 0.4% 0.6% 1.4% 0.6% 0.9%
Return on common equity(8) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10.2 17.2 47.2 20.2 39.0
Return on total equity(9) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9.3 15.3 39.6 17.1 30.2
Dividend payout ratio on common stock(10)ÏÏÏÏÏÏÏÏÏÏÏÏÏ 30.7 15.6 6.2 18.9 13.6
Equity to assets ratio(11) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.9 4.0 3.7 3.4 2.9
(1) EÅective January 1, 2003, we adopted the provisions of the Financial Accounting Standards Board, or FASB, Interpretation No. 45, ""Guarantor's Accounting and
Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others,'' or FIN 45, and FASB StaÅ Position 45-2, ""Whether FASB
Interpretation No. 45, "Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others,' or
Provides Support for Subsequently Accounting for a Guarantor's Liability at Fair Value,'' or FIN 45-2. We also adopted the provisions of Statement of Financial
Accounting Standards, or SFAS, No. 133, ""Accounting for Derivative Instruments and Hedging Activities,'' or SFAS 133, and the provisions of Emerging Issues
Task Force No. 99-20, ""Recognition of Interest Income and Impairment on Purchased and Retained BeneÑcial Interests in Securitized Financial Assets,'' or
EITF 99-20 as of January 1, 2001 and April 1, 2001, respectively. See ""NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES'' to our
consolidated Ñnancial statements for more information.
(2) Non-interest income (loss) was increased by $11 million and $9 million for 2001 and 2000, respectively, to conform to the 2004 presentation.
(3) Includes Due to Participation CertiÑcate investors, Accrued interest payable, Guarantee obligation for Participation CertiÑcates, Derivative liabilities, at fair value,
Reserve for guarantee losses on Participation CertiÑcates and Other liabilities.
(4) Excludes mortgage loans and mortgage-related securities traded, but not yet settled.
(5) The Retained portfolio presented in our consolidated balance sheets diÅers from the Retained portfolio on this table because the consolidated balance sheets
caption includes valuation adjustments (e.g., fair value adjustments for securities classiÑed as available-for-sale and trading and the Reserve for losses on mortgage
loans held-for-investment) and deferred balances (e.g., premiums and discounts). See ""Table 9 Ì Reconciliation of Retained Portfolio Unpaid Principal Balances
to the Consolidated Balance Sheets'' in ""MD&A Ì OUR RETAINED AND TOTAL MORTGAGE PORTFOLIOS'' for more information.
(6) Represents PCs and Structured Securities backed by non-Freddie Mac mortgage-related securities and other credit guarantees of mortgage loans held by third
parties. The balances are based on the underlying collateral, which ultimately aÅects the principal amount of PCs, Structured Securities and other credit guarantees
of mortgage loans held by third parties.
(7) Ratio computed as Net income divided by the simple average of beginning and ending Total assets.
(8) Ratio computed as Net income available to common stockholders divided by the simple average of beginning and ending Stockholders' equity, net of Preferred
stock (at redemption value).
(9) Ratio computed as Net income divided by the simple average of beginning and ending Stockholders' equity.
(10) Ratio computed as Common stock dividends declared divided by Net income available to common stockholders.
(11) Ratio computed as the simple average of beginning and ending Stockholders' equity divided by the simple average of beginning and ending Total assets.
Freddie Mac
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