Fannie Mae 2007 Annual Report Download - page 285

March 31 June 30 September 30 December 31
For the 2006 Quarter Ended
(Dollars and shares in millions,
except per share amounts)
Interest income:
Investments in securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,422 $ 5,791 $ 5,976 $ 5,634
Mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,082 5,204 5,209 5,309
Total interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,504 10,995 11,185 10,943
Interest expense:
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,650 1,907 2,124 2,055
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,842 7,221 7,533 7,543
Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,492 9,128 9,657 9,598
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,012 1,867 1,528 1,345
Guaranty fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 947 937 1,084 1,282
Losses on certain guaranty contracts . . . . . . . . . . . . . . . . . . . . . . . (27) (51) (103) (258)
Trust management income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 111
Investment gains (losses), net . . . . . . . . . . . . . . . . . . . . . . . . . . . (675) (633) 550 75
Derivatives fair value gains (losses), net . . . . . . . . . . . . . . . . . . . . 906 1,621 (3,381) (668)
Debt extinguishment gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . 17 69 72 43
Losses from partnership investments . . . . . . . . . . . . . . . . . . . . . . . (194) (188) (197) (286)
Fee and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291 42 234 105
Non-interest income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . 1,265 1,797 (1,741) 404
Administrative expenses:
Salaries and employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . 265 311 307 336
Professional services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 362 333 351
Occupancy expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 67 64 71
Other administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . 35 40 57 69
Total administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . 708 780 761 827
Minority interest in earnings of consolidated subsidiaries . . . . . . . . . 2 3 2 3
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 144 145 221
Foreclosed property expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 14 52 105
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 61 99 204
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 843 1,002 1,059 1,360
Income (loss) before federal income taxes and extraordinary gains . . 2,434 2,662 (1,272) 389
Provision (benefit) for federal income tax . . . . . . . . . . . . . . . . . . . 409 610 (639) (214)
Income (loss) before extraordinary gains . . . . . . . . . . . . . . . . . . . . 2,025 2,052 (633) 603
Extraordinary gains, net of tax effect . . . . . . . . . . . . . . . . . . . . . . 1 6 4 1
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,026 $ 2,058 $ (629) $ 604
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (122) (127) (131) (131)
Net income (loss) available to common stockholders . . . . . . . . . . . . $ 1,904 $ 1,931 $ (760) $ 473
Basic earnings (loss) per share:
Earnings (losses) before extraordinary gains . . . . . . . . . . . . . . . . $ 1.96 $ 1.98 $ (0.79) $ 0.49
Extraordinary gains, net of tax effect . . . . . . . . . . . . . . . . . . . . . — 0.01 — —
Basic earnings (loss) per share . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.96 $ 1.99 $ (0.79) $ 0.49
Diluted earnings (loss) per share:
Earnings (losses) before extraordinary gains . . . . . . . . . . . . . . . . $ 1.94 $ 1.96 $ (0.79) $ 0.49
Extraordinary gains, net of tax effect . . . . . . . . . . . . . . . . . . . . . — 0.01 — —
Diluted earnings (loss) per share . . . . . . . . . . . . . . . . . . . . . . . . $ 1.94 $ 1.97 $ (0.79) $ 0.49
Cash dividends per common share . . . . . . . . . . . . . . . . . . . . . . . . 0.26 0.26 0.26 0.40
Weighted-average common shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 971 971 972 972
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 998 999 972 974
F-97
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)