Fannie Mae 2009 Annual Report Download - page 389

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 gains (losses), net . . . . . . . . . . . . . . . . . . . . . . . . . (56) (376) 219 (33)
Net other-than-temporary impairments . . . . . . . . . . . . . . . . . . . (55) (507) (1,843) (4,569)
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)
Feeandotherincome............................... 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
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 6,108 9,837 12,821
Loss before federal income taxes and extraordinary losses . . . . . (5,113) (2,740) (11,913) (24,804)
Provision (benefit) for federal income taxes . . . . . . . . . . . . . . . (2,928) (476) 17,011 142
Loss before extraordinary losses . . . . . . . . . . . . . . . . . . . . . . . (2,185) (2,264) (28,924) (24,946)
Extraordinary losses, net of tax effect . . . . . . . . . . . . . . . . . . . (1) (33) (95) (280)
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,186) (2,297) (29,019) (25,226)
Less: Net (income) loss attributable to the noncontrolling
interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (3) 25 (1)
Net loss attributable to Fannie Mae . . . . . . . . . . . . . . . . . . . . . (2,186) (2,300) (28,994) (25,227)
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . (322) (303) (419) (25)
Net loss attributable to common stockholders . . . . . . . . . . . . . . $ (2,508) $ (2,603) $(29,413) $(25,252)
Basic and Diluted 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 and 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 and
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 975 1,025 2,262 5,652
F-131
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)