Freddie Mac 2010 Annual Report Download - page 68

ITEM 6. SELECTED FINANCIAL DATA
(1)
The selected financial data presented below should be reviewed in conjunction with MD&A and our consolidated
financial statements and related notes for the year ended December 31, 2010.
2010 2009 2008 2007 2006
At or for the Year Ended December 31,
(dollars in millions, except share-related amounts)
Statements of Operations Data
Net interest income...................................... $ 16,856 $ 17,073 $ 6,796 $ 3,099 $ 3,412
Provision for credit losses . . ............................... (17,218) (29,530) (16,432) (2,854) (296)
Non-interest income (loss) . . ............................... (11,588) (2,732) (29,175) (275) 1,679
Non-interest expense ..................................... (2,932) (7,195) (5,753) (5,959) (2,513)
Net income (loss) attributable to Freddie Mac .................... (14,025) (21,553) (50,119) (3,094) 2,327
Net income (loss) attributable to common stockholders ............. (19,774) (25,658) (50,795) (3,503) 2,051
Earnings (loss) per common share:
Basic. . ............................................ (6.09) (7.89) (34.60) (5.37) 3.01
Diluted ............................................ (6.09) (7.89) (34.60) (5.37) 3.00
Cash dividends per common share . . . . . . . .................... — — 0.50 1.75 1.91
Weighted average common shares outstanding (in thousands)
(2)
:
Basic. . ............................................ 3,249,369 3,253,836 1,468,062 651,881 680,856
Diluted ............................................ 3,249,369 3,253,836 1,468,062 651,881 682,664
Balance Sheets Data
Mortgage loans held-for-investment, at amortized cost by consolidated
trusts (net of allowance for loan losses) . . .................... $1,646,172 $ — $ — $ — $ —
Total assets ........................................... 2,261,780 841,784 850,963 794,368 804,910
Debt securities of consolidated trusts held by third parties ........... 1,528,648 — — — —
Other debt ............................................ 713,940 780,604 843,021 738,557 744,341
All other liabilities ...................................... 19,593 56,808 38,576 28,906 33,139
Total Freddie Mac stockholders’ equity (deficit) .................. (401) 4,278 (30,731) 26,724 26,914
Portfolio Balances
(3)
Mortgage-related investments portfolio . . . . .................... $ 696,874 $ 755,272 $ 804,762 $ 720,813 $ 703,959
Total Freddie Mac Mortgage-Related Securities
(4)
................. 1,712,918 1,854,813 1,807,553 1,701,207 1,470,481
Total mortgage portfolio
(5)
................................. 2,164,859 2,250,539 2,207,476 2,102,676 1,826,720
Non-performing assets
(6)
.................................. 125,405 104,984 46,620 16,119 7,761
Ratios
Return on average assets
(7), (12)
.............................. (0.6)% (2.5)% (6.1)% (0.4)% 0.3%
Non-performing assets ratio
(8)
.............................. 6.4 5.2 2.4 0.9 0.5
Return on common equity
(9), (12)
............................. N/A N/A N/A (21.0) 9.8
Dividend payout ratio on common stock
(10)
..................... N/A N/A N/A N/A 63.9
Equity to assets ratio
(11), (12)
................................ (0.2) (1.6) (0.2) 3.4 3.3
(1) See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” and “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES” for more
information regarding our accounting policies and adjustments made to previously reported results due to changes in accounting principles.
(2) Includes the weighted average number of shares during 2008, 2009 and 2010 that are associated with the warrant for our common stock issued to
Treasury as part of the Purchase Agreement. This warrant is included in basic earnings per share, because it is unconditionally exercisable by the
holder at a cost of $0.00001 per share.
(3) Represents the UPB and excludes mortgage loans and mortgage-related securities traded, but not yet settled. Effective in December 2007, we
established trusts for the administration of cash remittances received related to the underlying assets of our PCs and REMICs and Other Structured
Securities issued. As a result, after 2006, we report the balance of our mortgage portfolios to reflect the publicly-available security balances of Freddie
Mac mortgage-related securities. For 2006, we report these balances based on the UPB of the underlying mortgage loans. We reflected this change as
an increase in the UPB of our mortgage-related investments portfolio by $2.8 billion at December 31, 2007.
(4) See “Table 34 — Freddie Mac Mortgage-Related Securities” for the composition of this line item.
(5) See “Table 16 — Segment Mortgage Portfolio Composition” for the composition of our total mortgage portfolio.
(6) See “Table 54 — Non-Performing Assets” for a description of our non-performing assets.
(7) Ratio computed as net income (loss) attributable to Freddie Mac divided by the simple average of the beginning and ending balances of total assets.
(8) Ratio computed as non-performing assets divided by the ending UPB of our total mortgage portfolio, excluding non-Freddie Mac mortgage-related
securities.
(9) Ratio computed as net income (loss) attributable to common stockholders divided by the simple average of the beginning and ending balances of total
Freddie Mac stockholders’ equity (deficit), net of preferred stock (at redemption value). Ratio is not presented for periods in which the simple average
of the beginning and ending balances of total Freddie Mac stockholders’ equity (deficit) is less than zero.
(10) Ratio computed as common stock dividends declared divided by net income (loss) attributable to common stockholders. Ratio is not presented for
periods in which net income (loss) attributable to common stockholders was a loss.
(11) Ratio computed as the simple average of the beginning and ending balances of total Freddie Mac stockholders’ equity (deficit) divided by the simple
average of the beginning and ending balances of total assets.
(12) To calculate the simple averages for 2010, the beginning balances of total assets, total Freddie Mac stockholders’ equity, net of preferred stock (at
redemption value), and total Freddie Mac stockholders’ equity are based on the January 1, 2010 balances included in “NOTE 2: CHANGE IN
ACCOUNTING PRINCIPLES — Table 2.1 — Impact of the Change in Accounting for Transfers of Financial Assets and Consolidation of Variable
Interest Entities on Our Consolidated Balance Sheet” so that both the beginning and ending balances reflect changes in accounting principles.
65 Freddie Mac