Fannie Mae 2006 Annual Report Download - page 3

F H
Dollars in millions, except per common share amounts 2006 2005 % Change
For the Year Ended December 31,
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,059 $ 6,347 (36% )
Diluted earnings per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.65 6.01 (39% )
Cash dividends per common share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.18 1.04 13%
New Business Acquisition Data:
Fannie Mae MBS issues acquired by third parties1 .................... 417,471 465,632 (10% )
Mortgage portfolio purchases2 .................................... 185,507 146,640 27%
New business aquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 602,978 612,272 (2% )
As of December 31,
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 843,936 $ 834,168 1%
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,506 39,302 6%
Regulatory Capital Data:
Core capital3 ................................................. 41,950 39,433 6%
Surplus of core capital over statutory minimum capital ................. 12,591 11,200 12%
Mortgage Credit Book of Business:
Mortgage portfolio4 ............................................ 728,932 737,889 (1% )
Fannie Mae MBS held by third parties5 ............................ 1,777,550 1,598,918 11%
Other guarantees6 ............................................. 19,747 19,152 3%
Mortgage credit book of business ................................ 2,526,229 2,355,959 7%
For the Year Ended December 31,
Other Performance Measures:
Net interest yield7 ............................................. 0.85 % 1.31 % (35% )
Average effective guaranty fee rate (in basis points)8* .................. 21.8 bp 21.8 bp -
Credit loss ratio (in basis points)9* ................................. 2.7 bp 1.9 bp 42%
Return on equity ratio10* ........................................ 11.3 % 19.5 % (42% )
1 Unpaid principal balance of MBS issued and guaranteed by us and acquired by third-party investors during the reporting period. Excludes securitizations of mortgage loans
held in our portfolio.
2 Unpaid principal balance of mortgage loans and mortgage-related securities we purchased for our investment portfolio. Includes advances to lenders and mortgage-related
securities acquired through the extinguishment of debt.
3 e sum of (a) the stated value of outstanding common stock (common stock less treasury stock); (b)the stated value of outstanding non-cumulative perpetual preferred stock;
(c) paid-in-capital; and (d) retained earnings. Core capital excludes accumulated other comprehensive income.
4 Unpaid principal balance of mortgage loans and mortgage-related securities held in our portfolio.
5 Unpaid principal balance of Fannie Mae MBS held by third-party investors. e principal balance of resecuritized Fannie Mae MBS is included only once.
6 Includes additional credit enhancements that we provide not otherwise reflected in the table.
7 We calculate our net interest yield by dividing our net interest income for the period by the average balance of our total interest-earning assets during the period.
8 Guaranty fee income as a percentage of average outstanding Fannie Mae MBS and other guaranties.
9 Charge-offs, net of recoveries and foreclosed property expense (income), as a percentage of the average mortgage credit book of business.
10 Net income available to common stockholders divided by average outstanding common equity.
Note:
* Average balances for purposes of the ratio calculations are based on beginning and end of year balances.
D  C S N I
(in millions)
S P  C S
(closing price at year end)
$1.32 $1.68
$2.08
$1.04 $1.18
2002 2003 2004 2005 2006
$3,914
$8,081
$4,967 $6,347
$4,059
2002 2003 2004 2005 2006
$64.33 $75.06 $71.21
$48.81 $59.39
2002 2003 2004 2005 2006
F M 2006 A R
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