Freddie Mac 2015 Annual Report Download - page 23

Management's Discussion and Analysis Consolidated Results of Operations | Net Interest Income
Freddie Mac 2015 Form 10-K 21
NET INTEREST INCOME RATE / VOLUME ANALYSIS
The table below presents a rate and volume analysis of our net interest income. Our net interest income
reflects the reversal of interest income accrued, net of interest received on a cash basis, related to
mortgage loans that are on non-accrual status.
2015 vs. 2014 Variance Due to 2014 vs. 2013 Variance Due to
(in millions) Rate Volume Total
Change Rate Volume Total Change
Interest-earning assets:
Cash and cash equivalents $ 6 $ (2) $ 4 $ (5) $ (6) $ (11)
Securities purchased under agreements to
resell 24 10 34 (7) (1) (8)
Mortgage-related securities:
Mortgage-related securities (149)(1,172) (1,321) (508) (2,252) (2,760)
Extinguishment of PCs held by Freddie
Mac 129 132 261 229 626 855
Total mortgage-related securities, net (20) (1,040) (1,060) (279) (1,626) (1,905)
Non-mortgage-related securities 11 — 11 (10)(10)(20)
Loans held by consolidated
trusts (2,991) 1,822 (1,169) (1,256) 1,103 (153)
Loans held by Freddie Mac 297 (507)(210)175 (1,300) (1,125)
Total interest-earning assets $ (2,673) $ 283 $ (2,390) $ (1,382) $ (1,840) $ (3,222)
Interest-bearing liabilities:
Debt securities of consolidated trusts
including PCs held by Freddie Mac $4,476 $(1,748) $ 2,728 $1,079 $(877) $ 202
Extinguishment of PCs held by Freddie
Mac (129)(132) $ (261)(229)(626) $ (855)
Total debt securities of consolidated
trusts held by third parties 4,347 (1,880) $ 2,467 850 (1,503) (653)
Other debt:
Short-term debt (41) 13 (28) 15 18 33
Long-term debt 193 368 561 229 1,254 1,483
Total other debt 152 381 533 244 1,272 1,516
Total interest-bearing liabilities 4,499 (1,499)3,000 1,094 (231)863
Expense related to derivatives 73 — 73 154 —154
Total funding of interest-earning
assets $4,572 $(1,499) $ 3,073 $1,248 $(231) $ 1,017
Net interest income $ 1,899 $(1,216) $ 683 $(134) $ (2,071) $ (2,205)