Fannie Mae 2014 Annual Report Download - page 315

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
F-100
20. Selected Quarterly Financial Information (Unaudited)
The consolidated statements of operations for the quarterly periods in 2014 and 2013 are unaudited and in the opinion of
management include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of our
consolidated statements of operations. Certain prior period amounts have been reclassified to conform to the current period
presentation. The operating results for the interim periods are not necessarily indicative of the operating results to be expected
for a full year or for other interim periods.
For the 2014 Quarter Ended
March 31 June 30 September 30 December 31
(Dollars and shares in millions, except per share amounts)
Interest income:
Trading securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 127 $ 143 $ 151 $ 132
Available-for-sale securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440 414 395 373
Mortgage loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,588 28,165 27,779 27,588
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 24 29 33
Total interest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,179 28,746 28,354 28,126
Interest expense:
Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21 26 27
Long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,421 23,821 23,144 22,957
Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,441 23,842 23,170 22,984
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,738 4,904 5,184 5,142
Benefit for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 774 1,639 1,085 466
Net interest income after benefit for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,512 6,543 6,269 5,608
Investment gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 483 171 187
Fair value losses, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,190) (934) (207) (2,502)
Debt extinguishment gains, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 38 11 17
Fee and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,355 383 826 323
Non-interest income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,260 (30) 801 (1,975)
Administrative expenses:
Salaries and employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 319 337 340
Professional services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 275 263 296
Occupancy expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 47 47 59
Other administrative expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 56 59 7
Total administrative expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 672 697 706 702
Foreclosed property (income) expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (262) (214) 249 369
TCCA fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322 335 351 367
Other expenses, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 276 72 65
Total expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 863 1,094 1,378 1,503
Income before federal income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,909 5,419 5,692 2,130
Provision for federal income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,584) (1,752) (1,787) (818)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,325 3,667 3,905 1,312
Less: Net income attributable to noncontrolling interest. . . . . . . . . . . . . . . . . . . . . . — (1) — —
Net income attributable to Fannie Mae. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,325 3,666 3,905 1,312
Dividends distributed or available for distribution to senior preferred stockholder. . . . (5,692) (3,712) (3,999) (1,920)
Net (loss) income attributable to common stockholders (Note 11) . . . . . . . . . . . . . . . . $ (367) $ (46) $ (94) $ (608)
(Loss) per share:
Basic and Diluted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (0.06) $ (0.01) $ (0.02) $ (0.11)
Weighted-average common shares outstanding:
Basic and Diluted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,762 5,762 5,762 5,762