Fannie Mae 2008 Annual Report Download - page 412

March 31 June 30 September 30 December 31
For the 2007 Quarter Ended
(Dollars and shares in millions,
except per share amounts)
Interest income:
Trading securities .................................... $ 191 $ 387 $ 649 $ 824
Available-for-sale securities . . . .......................... 5,212 5,001 4,929 4,300
Mortgage loans . .................................... 5,385 5,625 5,572 5,636
Other . . . ......................................... 218 253 322 262
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 .............................. 295 (93) (159) (910)
Fair value gains (losses), net .............................. (566) 1,424 (2,082) (3,444)
Debt extinguishment gains (losses), net . . ..................... (7) 48 31 (119)
Losses from partnership investments ......................... (165) (215) (147) (478)
Fee and other income ................................... 277 257 217 214
Non-interest income (loss) . . .......................... 813 2,230 (1,056) (3,374)
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 . . . .................................... 96 108 130 326
Total expenses .................................... 1,116 1,286 1,986 3,932
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 (loss) 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 (loss) 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-134
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)