Fannie Mae 2010 Annual Report Download - page 397

March 31 June 30
(1)
September 30 December 31
(2)
For the 2010 Quarter Ended
(Dollars and shares in millions, except per share amounts)
Interest income: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 315 $ 330 $ 310 $ 296
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,473 1,389 1,313 1,115
Mortgage loans:
Of Fannie Mae . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,298 3,950 3,859 3,885
Of consolidated trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,321 33,682 32,807 31,781
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 41 31 35
Total interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,446 39,392 38,320 37,112
Interest expense:
Short-term debt:
Of Fannie Mae . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 164 190 149
Of consolidated trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 4 3
Long-term debt:
Of Fannie Mae . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,081 4,975 4,472 4,329
Of consolidated trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,458 30,043 28,878 27,994
Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,657 35,185 33,544 32,475
Net interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,789 4,207 4,776 4,637
Provision for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,939) (4,295) (4,696) (3,772)
Net interest income (loss) after provision for loan losses . . . . . . . . . . . . (9,150) (88) 80 865
Guaranty fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 52 51 45
Investment gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 23 82 75
Other-than-temporary impairments . . . . . . . . . . . . . . . . . . . . . . . . . . . (186) (48) (366) (94)
Noncredit portion of other-than-temporary impairments recognized in
other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50) (89) 40 71
Net other-than-temporary impairments . . . . . . . . . . . . . . . . . . . . . . . . (236) (137) (326) (23)
Fair value gains (losses), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,705) 303 525 366
Debt extinguishment losses, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (124) (159) (214) (71)
Income (losses) from partnership investments. . . . . . . . . . . . . . . . . . . . (58) (26) 47 (37)
Fee and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 242 253 208
Non-interest income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,724) 298 418 563
Administrative expenses: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Salaries and employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . 324 324 325 304
Professional services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 260 305 183
Occupancy expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 40 43 46
Other administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 46 57 59
Total administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 605 670 730 592
Provision (benefit) for guaranty losses . . . . . . . . . . . . . . . . . . . . . . . . (36) 69 78 83
Foreclosed property expense (income) . . . . . . . . . . . . . . . . . . . . . . . . (19) 487 787 463
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 198 243 240
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722 1,424 1,838 1,378
Income (loss) before federal income taxes . . . . . . . . . . . . . . . . . . . . . . (11,596) (1,214) (1,340) 50
Provision (benefit) for federal income taxes . . . . . . . . . . . . . . . . . . . . . (67) 9 (9) (15)
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,529) (1,223) (1,331) 65
Less: Net (income) loss attributable to the noncontrolling interest . . . . . (1) 5 (8) 8
Net income (loss) attributable to Fannie Mae . . . . . . . . . . . . . . . . . . . . (11,530) (1,218) (1,339) 73
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,527) (1,907) (2,116) (2,154)
Net loss attributable to common stockholders. . . . . . . . . . . . . . . . . . . . $(13,057) $ (3,125) $ (3,455) $ (2,081)
Loss per share—Basic and Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . $ (2.29) $ (0.55) $ (0.61) $ (0.37)
Weighted-average common shares outstanding—Basic and Diluted. . . . . . 5,692 5,694 5,695 5,696
(1)
Includes out-of-period adjustment of $1.1 billion to provision for loan losses, reflecting our assessment of the
collectibility of the receivable from the borrowers for preforeclosure property taxes and insurance.
(2)
Includes settlement from Bank of America Inc. related to repurchase requests for residential mortgage loans of
$1.3 billion.
F-139
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)