Fannie Mae 2008 Annual Report Download - page 411

March 31 June 30 September 30 December 31
For the 2008 Quarter Ended
(Dollars and shares in millions,
except per share amounts)
Interest income:
Trading securities . . . ................................ $ 1,737 $ 1,376 $ 1,416 $ 1,349
Available-for-sale securities . . ........................... 3,085 3,087 3,295 3,747
Mortgage loans ..................................... 5,662 5,769 5,742 5,519
Other . .......................................... 458 232 310 339
Total interest income ................................ 10,942 10,464 10,763 10,954
Interest expense:
Short-term debt ..................................... 2,561 1,687 1,680 1,887
Long-term debt ..................................... 6,691 6,720 6,728 6,387
Total interest expense ............................... 9,252 8,407 8,408 8,274
Net interest income .................................... 1,690 2,057 2,355 2,680
Guaranty fee income . . . ................................ 1,752 1,608 1,475 2,786
Trust management income ............................... 107 75 65 14
Investment losses, net . . ................................ (111) (883) (1,624) (4,602)
Fair value gains (losses), net . . . ........................... (4,377) 517 (3,947) (12,322)
Debt extinguishment gains (losses), net . ...................... (145) (36) 23 (64)
Losses from partnership investments . . . ...................... (141) (195) (587) (631)
Fee and other income . . ................................ 227 225 164 156
Non-interest income (loss) . ........................... (2,688) 1,311 (4,431) (14,663)
Administrative expenses:
Salaries and employee benefits ........................... 286 304 167 275
Professional services . ................................ 136 114 139 140
Occupancy expenses. . ................................ 54 55 52 66
Other administrative expenses ........................... 36 39 43 73
Total administrative expenses .......................... 512 512 401 554
Minority interest in earnings (losses) of consolidated subsidiaries ...... — 3 (25) 1
Provision for credit losses ................................ 3,073 5,085 8,763 11,030
Foreclosed property expense . . . ........................... 170 264 478 946
Other expenses . . ..................................... 360 247 195 291
Total expenses .................................... 4,115 6,111 9,812 12,822
Loss before federal income taxes and extraordinary losses ........... (5,113) (2,743) (11,888) (24,805)
Provision (benefit) for federal income taxes . . . ................. (2,928) (476) 17,011 142
Loss before extraordinary losses. ........................... (2,185) (2,267) (28,899) (24,947)
Extraordinary losses, net of tax effect . . ...................... (1) (33) (95) (280)
Net loss . .......................................... $(2,186) $ (2,300) $(28,994) $(25,227)
Preferred stock dividends and issuance costs at redemption . . . ....... (322) (303) (419) (25)
Net loss available to common stockholders..................... $(2,508) $ (2,603) $(29,413) $(25,252)
Basic loss per share:
Loss before extraordinary losses .......................... $ (2.57) $ (2.51) $ (12.96) $ (4.42)
Extraordinary loss, net of tax effect . . ...................... — (0.03) (0.04) (0.05)
Basic loss per share . . ................................ $ (2.57) $ (2.54) $ (13.00) $ (4.47)
Diluted loss per share:
Loss before extraordinary losses .......................... $ (2.57) $ (2.51) $ (12.96) $ (4.42)
Extraordinary losses, net of tax effect ...................... — (0.03) (0.04) (0.05)
Diluted loss per share . ................................ $ (2.57) $ (2.54) $ (13.00) $ (4.47)
Cash dividends per common share .......................... $ 0.35 $ 0.35 $ 0.05 $ —
Weighted-average common shares outstanding:
Basic . .......................................... 975 1,025 2,262 5,652
Diluted .......................................... 975 1,025 2,262 5,652
F-133
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)