Freddie Mac 2011 Annual Report Download - page 207

FREDDIE MAC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
2011 2010 2009
Year Ended December 31,
(in millions, except share-related amounts)
Interest income
Mortgage loans:
Held by consolidated trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 77,158 $ 86,698 $ —
Unsecuritized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,124 8,727 6,815
Total mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86,282 95,425 6,815
Investments in securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,791 14,375 33,290
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 156 241
Total interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,140 109,956 40,346
Interest expense
Debt securities of consolidated trusts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (67,119) (75,216) —
Other debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,869) (16,915) (22,150)
Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (79,988) (92,131) (22,150)
Expense related to derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (755) (969) (1,123)
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,397 16,856 17,073
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,702) (17,218) (29,530)
Net interest income (loss) after provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,695 (362) (12,457)
Non-interest income (loss)
Gains (losses) on extinguishment of debt securities of consolidated trusts . . . . . . . . . . . . . . . . . . (219) (164) —
Gains (losses) on retirement of other debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 (219) (568)
Gains (losses) on debt recorded at fair value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 580 (404)
Derivative gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,752) (8,085) (1,900)
Impairment of available-for-sale securities:
Total other-than-temporary impairment of available-for-sale securities . . . . . . . . . . . . . . . . . . . (2,101) (1,778) (23,125)
Portion of other-than-temporary impairment recognized in AOCI . . . . . . . . . . . . . . . . . . . . . . (200) (2,530) 11,928
Net impairment of available-for-sale securities recognized in earnings . . . . . . . . . . . . . . . . . (2,301) (4,308) (11,197)
Other gains (losses) on investment securities recognized in earnings . . . . . . . . . . . . . . . . . . . . . . (896) (1,252) 5,965
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,155 1,860 5,372
Non-interest income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,878) (11,588) (2,732)
Non-interest expense
Salaries and employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (832) (895) (912)
Professional services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (270) (297) (344)
Occupancy expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (62) (64) (68)
Other administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (342) (341) (361)
Total administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,506) (1,597) (1,685)
Real estate owned operations expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (585) (673) (307)
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (392) (662) (5,203)
Non-interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,483) (2,932) (7,195)
Loss before income tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,666) (14,882) (22,384)
Income tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 856 830
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,266) (14,026) (21,554)
Other comprehensive income, net of taxes and reclassification adjustments:
Changes in unrealized gains (losses) related to available-for-sale securities . . . . . . . . . . . . . . . . . 3,465 13,621 17,825
Changes in unrealized gains (losses) related to cash flow hedge relationships. . . . . . . . . . . . . . . . 509 673 773
Changes in defined benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 13 42
Total other comprehensive income, net of taxes and reclassification adjustments . . . . . . . . . . . . 4,036 14,307 18,640
Comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,230) 281 (2,914)
Less: Comprehensive loss attributable to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . — 1 1
Total comprehensive income (loss) attributable to Freddie Mac . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1,230) $ 282 $ (2,913)
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (5,266) $ (14,026) $ (21,554)
Less: Net loss attributable to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1 1
Net loss attributable to Freddie Mac. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,266) (14,025) (21,553)
Preferred stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,498) (5,749) (4,105)
Net loss attributable to common stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (11,764) $ (19,774) $ (25,658)
Net loss per common share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (3.63) $ (6.09) $ (7.89)
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (3.63) $ (6.09) $ (7.89)
Weighted average common shares outstanding (in thousands):
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,244,896 3,249,369 3,253,836
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,244,896 3,249,369 3,253,836
The accompanying notes are an integral part of these consolidated financial statements.
202 Freddie Mac