Fannie Mae 2011 Annual Report Download - page 373

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
For the 2010 Quarter Ended
March 31 June 30(1) September 30 December 31(2)
(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 ............................................. 37,619 37,632 36,666 35,666
Other ..................................................... 39 41 31 35
Total interest income ....................................... 39,446 39,392 38,320 37,112
Interest expense:
Short-term debt ............................................. 118 167 194 152
Long-term debt ............................................. 36,539 35,018 33,350 32,323
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 (loss) income after provision for loan losses ............... (9,150) (88) 80 865
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 (losses) gains, net ..................................... (1,705) 303 525 366
Debt extinguishment losses, net .................................. (124) (159) (214) (71)
Fee and other income ........................................... 233 294 304 253
Non-interest (loss) income ..................................... (1,666) 324 371 600
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
(Benefit) provision for guaranty losses ............................. (36) 69 78 83
Foreclosed property (income) expense ............................. (19) 487 787 463
Other expenses ................................................ 230 224 196 277
Total expenses ............................................ 780 1,450 1,791 1,415
(Loss) income before federal income taxes .......................... (11,596) (1,214) (1,340) 50
(Benefit) provision for federal income taxes ......................... (67) 9 (9) (15)
Net (loss) income .............................................. (11,529) (1,223) (1,331) 65
Less: Net (income) loss attributable to the noncontrolling interest ..... (1) 5 (8) 8
Net (loss) income 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
collectability of the receivable from the borrowers for preforeclosure property taxes and insurance.
(2) Includes settlement from Bank of America N.A. related to repurchase requests for residential mortgage loans of $1.3
billion.
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