Fannie Mae 2009 Annual Report Download - page 88

Table 3 presents a condensed summary of our consolidated results of operations.
Table 3: Summary of Consolidated Results of Operations
2009 2008 2007 2009 vs. 2008 2008 vs. 2007
For the Year Ended December 31, Variance
(Dollars in millions, except per share amounts)
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,510 $ 8,782 $ 4,581 $ 5,728 $ 4,201
Guaranty fee income . . . . . . . . . . . . . . . . . . . . . . . . . 7,211 7,621 5,071 (410) 2,550
Trust management income . . . . . . . . . . . . . . . . . . . . . 40 261 588 (221) (327)
Fee and other income . . . . . . . . . . . . . . . . . . . . . . . . 733 772 965 (39) (193)
Net revenues .............................. $ 22,494 $ 17,436 $11,205 $ 5,058 $ 6,231
Losses on certain guaranty contracts . . . . . . . . . . . . . . — — (1,424) — 1,424
Investment gains (losses), net
(1)
. . . . . . . . . . . . . . . . . 1,458 (246) (53) 1,704 (193)
Net other-than-temporary impairments
(1)
. . . . . . . . . . . (9,861) (6,974) (814) (2,887) (6,160)
Fair value losses, net . . . . . . . . . . . . . . . . . . . . . . . . . (2,811) (20,129) (4,668) 17,318 (15,461)
Losses from partnership investments . . . . . . . . . . . . . . (6,735) (1,554) (1,005) (5,181) (549)
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . (2,207) (1,979) (2,669) (228) 690
Credit-related expenses . . . . . . . . . . . . . . . . . . . . . . . (73,536) (29,809) (5,012) (43,727) (24,797)
Other non-interest expenses . . . . . . . . . . . . . . . . . . . . (1,809) (1,315) (707) (494) (608)
Loss before federal income taxes and extraordinary
losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (73,007) (44,570) (5,147) (28,437) (39,423)
Benefit (provision) for federal income taxes. . . . . . . . . 985 (13,749) 3,091 14,734 (16,840)
Extraordinary losses, net of tax effect . . . . . . . . . . . . . — (409) (15) 409 (394)
Net loss.................................. (72,022) (58,728) (2,071) (13,294) (56,657)
Less: Net loss attributable to the noncontrolling
interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 21 21 32 —
Net loss attributable to Fannie Mae ............. $(71,969) $(58,707) $ (2,050) $(13,262) $(56,657)
Diluted loss per common share ................ $ (13.11) $ (24.04) $ (2.63) $ 10.93 $ (21.41)
(1)
Prior to the April 2009 change in accounting for impairments, net other-than-temporary impairments also included the
non-credit portion, which in subsequent periods is recorded in other comprehensive income. Certain prior period
amounts have been reclassified to conform with the current period presentation.
Net Interest Income
Net interest income represents the difference between interest income and interest expense and is a primary
source of our revenue. The amount of interest income and interest expense we recognize in the consolidated
statements of operations is affected by our investment activity, our debt activity, asset yields and our funding
costs.
Table 4 presents an analysis of our net interest income, average balances, and related yields earned on assets
and incurred on liabilities for the periods indicated. For most components of the average balances, we used a
daily weighted average of amortized cost. When daily average balance information was not available, such as
for mortgage loans, we used month-end averages. Table 5 presents the change in our net interest income
between periods and the extent to which that variance is attributable to: (1) changes in the volume of our
interest-earning assets and interest-bearing liabilities or (2) changes in the interest rates of these assets and
liabilities.
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