Fannie Mae 2008 Annual Report Download - page 282

FANNIE MAE
(In conservatorship)
Consolidated Statements of Operations
(Dollars and shares in millions, except per share amounts)
2008 2007 2006
For the Year Ended
December 31,
Interest income:
Trading securities . . ............................................... $ 5,878 $ 2,051 $ 688
Available-for-sale securities . ......................................... 13,214 19,442 21,359
Mortgage loans ................................................... 22,692 22,218 20,804
Other .......................................................... 1,339 1,055 776
Total interest income ............................................. 43,123 44,766 43,627
Interest expense:
Short-term debt ................................................... 7,815 8,999 7,736
Long-term debt ................................................... 26,526 31,186 29,139
Total interest expense ............................................. 34,341 40,185 36,875
Net interest income . . . ............................................... 8,782 4,581 6,752
Guaranty fee income (includes imputed interest of $1,423, $1,278 and $1,081 for 2008,
2007 and 2006, respectively) ......................................... 7,621 5,071 4,250
Losses on certain guaranty contracts . . . ................................... — (1,424) (439)
Trust management income ............................................. 261 588 111
Investment losses, net . ............................................... (7,220) (867) (691)
Fair value losses, net . . ............................................... (20,129) (4,668) (1,744)
Debt extinguishment gains (losses), net . ................................... (222) (47) 201
Losses from partnership investments . . . ................................... (1,554) (1,005) (865)
Fee and other income . ............................................... 772 965 908
Non-interest income (loss) ......................................... (20,471) (1,387) 1,731
Administrative expenses:
Salaries and employee benefits ........................................ 1,032 1,370 1,219
Professional services ............................................... 529 851 1,393
Occupancy expenses ............................................... 227 263 263
Other administrative expenses ......................................... 191 185 201
Total administrative expenses ....................................... 1,979 2,669 3,076
Minority interest in earnings (losses) of consolidated subsidiaries . ................. (21) (21) 10
Provision for credit losses ............................................. 27,951 4,564 589
Foreclosed property expense . . ......................................... 1,858 448 194
Other expenses ..................................................... 1,093 660 401
Total expenses . . . ............................................... 32,860 8,320 4,270
Income (loss) before federal income taxes and extraordinary gains (losses) ........... (44,549) (5,126) 4,213
Provision (benefit) for federal income taxes ................................. 13,749 (3,091) 166
Income (loss) before extraordinary gains (losses) ............................. (58,298) (2,035) 4,047
Extraordinary gains (losses), net of tax effect . . . ............................. (409) (15) 12
Net income (loss) ................................................... (58,707) (2,050) 4,059
Preferred stock dividends and issuance costs at redemption ...................... (1,069) (513) (511)
Net income (loss) available to common stockholders ........................... $(59,776) $ (2,563) $ 3,548
Basic earnings (loss) per share:
Earnings (loss) before extraordinary gains (losses) ........................... $ (23.88) $ (2.62) $ 3.64
Extraordinary gains (losses), net of tax effect . ............................. (0.16) (0.01) 0.01
Basic earnings (loss) per share ........................................ $ (24.04) $ (2.63) $ 3.65
Diluted earnings (loss) per share:
Earnings (loss) before extraordinary gains (losses) ........................... $ (23.88) $ (2.62) $ 3.64
Extraordinary gains (losses), net of tax effect . ............................. (0.16) (0.01) 0.01
Diluted earnings (loss) per share ....................................... $ (24.04) $ (2.63) $ 3.65
Cash dividends per common share ....................................... $ 0.75 $ 1.90 $ 1.18
Weighted-average common shares outstanding:
Basic .......................................................... 2,487 973 971
Diluted . . . ..................................................... 2,487 973 972
See Notes to Consolidated Financial Statements
F-4