Fannie Mae 2007 Annual Report Download - page 284

March 31 June 30 September 30 December 31
For the 2007 Quarter Ended
(Dollars and shares in millions,
except per share amounts)
Interest income:
Investments in securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,621 $ 5,641 $ 5,900 $ 5,386
Mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,385 5,625 5,572 5,636
Total interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,006 11,266 11,472 11,022
Interest expense:
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,216 2,194 2,401 2,188
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,596 7,879 8,013 7,698
Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,812 10,073 10,414 9,886
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,194 1,193 1,058 1,136
Guaranty fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,098 1,120 1,232 1,621
Losses on certain guaranty contracts . . . . . . . . . . . . . . . . . . . . . . (283) (461) (294) (386)
Trust management income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 150 146 128
Investment gains (losses), net . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 (594) 136 (1,130)
Derivatives fair value gains (losses), net . . . . . . . . . . . . . . . . . . . . (563) 1,916 (2,244) (3,222)
Debt extinguishment gains (losses), net. . . . . . . . . . . . . . . . . . . . . (7) 48 31 (119)
Losses from partnership investments . . . . . . . . . . . . . . . . . . . . . . (165) (215) (147) (478)
Fee and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 262 76 205
Non-interest income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . 808 2,226 (1,064) (3,381)
Administrative expenses:
Salaries and employee benefits . . . . . . . . . . . . . . . . . . . . . . . . 356 349 362 303
Professional services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 216 192 197
Occupancy expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 57 64 83
Other administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . 37 38 42 68
Total administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . 698 660 660 651
Minority interest in earnings (losses) of consolidated subsidiaries . . . 1 — (4) (18)
Provision for credit losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 434 1,087 2,794
Foreclosed property expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 84 113 179
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 104 122 319
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,111 1,282 1,978 3,925
Income (loss) before federal income taxes and extraordinary gains
(losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 891 2,137 (1,984) (6,170)
Provision (benefit) for federal income tax . . . . . . . . . . . . . . . . . . . (73) 187 (582) (2,623)
Income (loss) before extraordinary gains (losses) . . . . . . . . . . . . . . 964 1,950 (1,402) (3,547)
Extraordinary gains (losses), net of tax effect. . . . . . . . . . . . . . . . . (3) (3) 3 (12)
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 961 $ 1,947 $ (1,399) $ (3,559)
Preferred stock dividends and issuance costs at redemption . . . . . . . (135) (118) (119) (141)
Net income (loss) available to common stockholders . . . . . . . . . . . $ 826 $ 1,829 $ (1,518) $ (3,700)
Basic earnings (loss) per share:
Earnings (losses) before extraordinary gains (losses) . . . . . . . . . . $ 0.85 $ 1.88 $ (1.56) $ (3.79)
Extraordinary gains (losses), net of tax effect . . . . . . . . . . . . . . . — — — (0.01)
Basic earnings (loss) per share . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.85 $ 1.88 $ (1.56) $ (3.80)
Diluted earnings (loss) per share:
Earnings (losses) before extraordinary gains (losses) . . . . . . . . . . $ 0.85 $ 1.86 $ (1.56) $ (3.79)
Extraordinary gains (losses), net of tax effect . . . . . . . . . . . . . . . — — — (0.01)
Diluted earnings (loss) per share . . . . . . . . . . . . . . . . . . . . . . . $ 0.85 $ 1.86 $ (1.56) $ (3.80)
Cash dividends per common share . . . . . . . . . . . . . . . . . . . . . . . . 0.40 0.50 0.50 0.50
Weighted-average common shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 973 973 974 974
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 974 1,001 974 974
F-96
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)