Freddie Mac 2011 Annual Report Download - page 86

ITEM 6. SELECTED FINANCIAL DATA
(1)
The selected financial data presented below should be reviewed in conjunction with MD&A and our consolidated
financial statements and related notes for the year ended December 31, 2011.
2011 2010 2009 2008 2007
At or For The Year Ended December 31,
(dollars in millions, except share-related amounts)
Statements of Income and Comprehensive Income Data
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,397 $ 16,856 $ 17,073 $ 6,796 $ 3,099
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,702) (17,218) (29,530) (16,432) (2,854)
Non-interest income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,878) (11,588) (2,732) (29,175) (275)
Non-interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,483) (2,932) (7,195) (5,753) (5,959)
Net loss attributable to Freddie Mac . . . . . . . . . . . . . . . . . . . . . . . . . (5,266) (14,025) (21,553) (50,119) (3,094)
Total comprehensive income (loss) attributable to Freddie Mac . . . . . . . (1,230) 282 (2,913) (70,483) (5,786)
Net loss attributable to common stockholders . . . . . . . . . . . . . . . . . . . (11,764) (19,774) (25,658) (50,795) (3,503)
Net loss per common share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.63) (6.09) (7.89) (34.60) (5.37)
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.63) (6.09) (7.89) (34.60) (5.37)
Cash dividends per common share . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 0.50 1.75
Weighted average common shares outstanding (in thousands):
(2)
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,244,896 3,249,369 3,253,836 1,468,062 651,881
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,244,896 3,249,369 3,253,836 1,468,062 651,881
Balance Sheets Data
Mortgage loans held-for-investment, at amortized cost by consolidated
trusts (net of allowances for loan losses) . . . . . . . . . . . . . . . . . . . . $1,564,131 $1,646,172 $ — $ — $ —
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,147,216 2,261,780 841,784 850,963 794,368
Debt securities of consolidated trusts held by third parties . . . . . . . . . . 1,471,437 1,528,648 — — —
Other debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660,546 713,940 780,604 843,021 738,557
All other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,379 19,593 56,808 38,576 28,906
Total Freddie Mac stockholders’ equity (deficit) . . . . . . . . . . . . . . . . . (146) (401) 4,278 (30,731) 26,724
Portfolio Balances
(3)
Mortgage-related investments portfolio . . . . . . . . . . . . . . . . . . . . . . . $ 653,313 $ 696,874 $ 755,272 $ 804,762 $ 720,813
Total Freddie Mac mortgage-related securities
(4)
. . . . . . . . . . . . . . . . . 1,624,684 1,712,918 1,854,813 1,807,553 1,701,207
Total mortgage portfolio
(5)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,075,394 2,164,859 2,250,539 2,207,476 2,102,676
Non-performing assets
(6)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,152 125,405 104,984 46,620 16,119
Ratios
(7)
Return on average assets
(8)(12)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.2)% (0.6)% (2.5)% (6.1)% (0.4)%
Non-performing assets ratio
(9)
............................. 6.8 6.4 5.2 2.4 0.9
Return on common equity
(10)(12)
. . . . . . . . . . . . . . . . . . . . . . . . . . . N/A N/A N/A N/A (21.0)
Equity to assets ratio
(11)(12)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (0.2) (1.6) (0.2) 3.4
(1) See “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” for information regarding our accounting policies and the impact of
new accounting policies on our consolidated financial statements. Effective January 1, 2010, we adopted amendments to the accounting guidance
for transfers of financial assets and the consolidation of VIEs. This had a significant impact on our consolidated financial statements. Consequently,
our results for 2010 and 2011 are not comparable with the results for prior years. For more information, see “NOTE 19: SELECTED FINANCIAL
STATEMENT LINE ITEMS.”
(2) Includes the weighted average number of shares that are associated with the warrant for our common stock issued to Treasury as part of the
Purchase Agreement for periods after 2007. This warrant is included in basic loss per share, because it is unconditionally exercisable by the holder
at a cost of $0.00001 per share.
(3) Represents the UPB and excludes mortgage loans and mortgage-related securities traded, but not yet settled.
(4) See “Table 35 — Freddie Mac Mortgage-Related Securities” for the composition of this line item.
(5) See “Table 16 — Composition of Segment Mortgage Portfolios and Credit Risk Portfolios” for the composition of our total mortgage portfolio.
(6) See “Table 60 — Non-Performing Assets” for a description of our non-performing assets.
(7) The dividend payout ratio on common stock is not presented because we are reporting a net loss attributable to common stockholders for all
periods presented.
(8) Ratio computed as net income (loss) attributable to Freddie Mac divided by the simple average of the beginning and ending balances of total
assets.
(9) Ratio computed as non-performing assets divided by the ending UPB of our total mortgage portfolio, excluding non-Freddie Mac mortgage-related
securities.
(10) Ratio computed as net income (loss) attributable to common stockholders divided by the simple average of the beginning and ending balances of
total Freddie Mac stockholders’ equity (deficit), net of preferred stock (at redemption value). Ratio is not presented for periods in which the simple
average of the beginning and ending balances of total Freddie Mac stockholders’ equity (deficit) is less than zero.
(11) Ratio computed as the simple average of the beginning and ending balances of total Freddie Mac stockholders’ equity (deficit) divided by the
simple average of the beginning and ending balances of total assets.
(12) To calculate the simple averages for 2010, the beginning balances of total assets and total Freddie Mac stockholders’ equity are based on the
January 1, 2010 balances, so that both the beginning and ending balances reflect the January 1, 2010 changes in accounting principles related to
VIEs.
81 Freddie Mac