Fannie Mae 2001 Annual Report Download - page 76

{ 74 } Fannie Mae 2001 Annual Report
Quarterly Results of Operations (Unaudited)
The following unaudited results of operations include, in the opinion of management, all adjustments necessary for a fair
presentation of the results of operations for such periods.
2001 Quarter Ended
Dollars in millions, except per common share amounts December September June March
Operating net income1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,438 $ 1,377 $ 1,314 $ 1,238
Operating earnings per diluted common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.40 1.33 1.27 1.20
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,510 $12,447 $12,218 $11,995
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,106 10,368 10,318 10,288
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,404 2,079 1,900 1,707
Guaranty fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398 384 357 343
Fee and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 49 24 27
Provision for losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 30 30 25
Foreclosed property expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46) (45) (48) (54)
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (251) (273) (254) (239)
Special contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (300) — — —
Purchased options income (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 578 (413) 36 (238)
Income before federal income taxes and extraordinary item and cumulative effect
of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,8641,811 2,045 1,571
Provision for federal income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (836) (447) (550) (391)
Income before extraordinary item and cumulative effect of change in
accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,028 1,364 1,495 1,180
Extraordinary item-loss on early extinguishment of debt, net of tax effect . . . . . . . . . . . . . (59) (135) (92) (55)
Cumulative effect of change in accounting principle, net of tax effect . . . . . . . . . . . . . . . . . . — — — 168
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,969 $ 1,229 $ 1,403 $ 1,293
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35) (35) (35) (33)
Net income available to common stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,934 $ 1,194 $ 1,368 $ 1,260
Basic earnings per common share2:
Earnings before extraordinary item and cumulative effect of change in
accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.99 $ 1.33 $ 1.46 $ 1.15
Extraordinary loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.06) (.14) (.09) (.06)
Cumulative effect of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — .17
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.93 $ 1.19 $ 1.37 $ 1.26
Diluted earnings per common share2:
Earnings before extraordinary item and cumulative effect of change in
accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.98 $ 1.32 $ 1.45 $ 1.14
Extraordinary loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.06) (.13) (.09) (.06)
Cumulative effect of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — .17
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.92 $ 1.19 $ 1.36 $ 1.25
Cash dividends per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .30 $ .30 $ .30 $ .30
2000 Quarter Ended
Dollars in millions, except per common share amounts December September June March
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,581 $10,862 $10,365 $ 9,973
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,096 9,434 8,966 8,611
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,485 1,428 1,399 1,362
Guaranty fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339 341 339 332
Fee and other income (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 (46) —
Provision for losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 30 30 30
Foreclosed property expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (51) (52) (51) (60)
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (232) (232) (224) (217)
Income before federal income taxes and extraordinary item . . . . . . . . . . . . . . . . . . . . . . . . . 1,572 1,516 1,447 1,447
Provision for federal income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (405) (393) (383) (385)
Income before extraordinary item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,167 1,123 1,064 1,062
Extraordinary item–(loss) gain on early extinguishment of debt, net of tax effect . . . . . . . (2) 1 33 —
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,165 $ 1,124 $ 1,097 $ 1,062
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (36) (33) (32) (20)
Net income available to common stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,129 $ 1,091 $1,065 $ 1,042
Basic earnings per common share2:
Earnings before extraordinary item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.13 $ 1.09 $ 1.03 $ 1.03
Extraordinary gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — .03 —
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.13 $ 1.09 $ 1.06 $ 1.03
Diluted earnings per common share2:
Earnings before extraordinary item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.13 $ 1.09 $ 1.02 $ 1.02
Extraordinary (loss) gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.01) — .03 —
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.12 $ 1.09 $ 1.05 $ 1.02
Cash dividends per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .28 $.28 $ .28 $ .28
1Excludes the cumulative after-tax gain of $168 million from the change in accounting principle upon adoption of FAS 133 on January 1, 2001 and the after-tax loss of $24 million recognized during the year 2001 for the change
in fair value of time value of purchased options under FAS 133. Includes after-tax charges of $383 million for the amortization expense of purchased options premiums during the year ended December 31, 2001.
2The total of the four quarters may not equal the amount for the year because the amount for each period is calculated independently based on the weighted-average number of common shares outstanding during the period.