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{ 77 } Fannie Mae 2001 Annual Report
Financial and Statistical Summary (Unaudited)
For the Year
Dollars in millions, except per common share amounts 2001 2000 1999 1998 1997
Operating net income1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,367 $4,448 $ 3,912 $ 3,418 $ 3,056
Operating earnings per diluted common share . . . . . . . . . . . . . . . . . 5.20 4.29 3.72 3.23 2.83
Summary Statements of Income:
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $49,170 $42,781 $ 35,495 $ 29,995 $ 26,378
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,080 37,107 30,601 25,885 22,429
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,090 5,674 4,894 4,110 3,949
Guaranty fee income
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,482 1,351 1,282 1,229 1,274
Fee and other income (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . 151 (44) 191 275 125
Provision for losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 120 120 50 (100)
Foreclosed property expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . (193) (214) (247) (311) (275)
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,017) (905) (800) (708) (636)
Special contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (300) ————
Purchased options expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (37) ————
Income before federal income taxes, extraordinary item
and cumulative effect of change in accounting principle . . 8,291 5,982 5,440 4,645 4,337
Provision for federal income taxes . . . . . . . . . . . . . . . . . . . . . . . . (2,224) (1,566) (1,519) (1,201) (1,269)
Income before extraordinary item and cumulative effect
of change in accounting principle . . . . . . . . . . . . . . . . . . . . . 6,067 4,416 3,921 3,444 3,068
Extraordinary item–(loss) gain on early extinguishment
of debt, net of tax effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (341) 32 (9) (26) (12)
Cumulative effect of change in accounting principle,
net of tax effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 ————
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,894 $4,448 $ 3,912 $ 3,418 $ 3,056
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (138) (121) (78) (66) (65)
Net income available to common stockholders . . . . . . . . . . . . . $5,756 $4,327 $ 3,834 $ 3,352 $ 2,991
Basic earnings per common share:
Earnings before extraordinary item and cumulative
effect of change in accounting principle . . . . . . . . . . . . $5.92 $4.28 $ 3.75 $ 3.28 $ 2.87
Extraordinary (loss) gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.34) .03 — (.02) (.02)
Cumulative effect of change in accounting principle . . . . . .17 ————
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.75 $4.31 $ 3.75 $ 3.26 $ 2.85
Diluted earnings per common share:
Earnings before extraordinary item and cumulative effect
of change in accounting principle . . . . . . . . . . . . . . . . . . $5.89 $4.26 $ 3.73 $ 3.26 $ 2.84
Extraordinary (loss) gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . (.34) .03 (.01) (.03) (.01)
Cumulative effect of change in accounting principle . . . . . .17 ————
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.72 $4.29 $ 3.72 $ 3.23 $ 2.83
Cash dividends per common share . . . . . . . . . . . . . . . . . . . . . . . . $1.20 $1.12 $ 1.08 $ .96 $ .84
Mortgages purchased:
Single-family:
Government insured or guaranteed . . . . . . . . . . . . . . . . . . . $6,001 $6,940 $ 23,575 $ 6,016 $ 5,539
Conventional:
Long-term, fixed-rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226,516 113,444 146,679 147,615 55,925
Intermediate-term, fixed-rate . . . . . . . . . . . . . . . . . . . . . 26,146 11,607 15,315 28,725 6,030
Adjustable-rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,777 17,683 6,073 3,507 1,977
Total single-family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262,440 149,674 191,642 185,863 69,471
Multifamily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,144 4,557 3,568 2,585 994
Total mortgages purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,584 $154,231 $ 195,210 $188,448 $ 70,465
Average net yield on mortgages purchased . . . . . . . . . . . . . . . . 6.56% 7.62% 6.88% 6.61% 7.40%
Debt issued:
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,756,691 $1,143,131 $1,136,001 $695,495 $755,281
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249,352 110,215 139,020 147,430 86,325
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,006,043 $1,253,346 $1,275,021 $842,925 $841,606
Average cost of debt issued
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.97% 6.34% 5.33% 5.49% 5.63%
MBS issues acquired by others . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 344,739 $105,407 $ 174,850 $220,723 $108,120
Financial ratios:
Return on average assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78% .71% .73% .78% .81%
Operating return on average realized common equity . . . . . . . 25.4 25.2 25.0 25.2 24.6
Dividend payout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.9 26.0 28.8 29.5 29.4
Average equity to average asset . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 3.1 3.1 3.3 3.6
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.