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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 11/02/2018
Entire Document
 
 
 Financial Statements | Condensed Consolidated Statements of Operations and Comprehensive Income


FANNIE MAE
(In conservatorship)
Condensed Consolidated Statements of Operations and Comprehensive Income — (Unaudited)
(Dollars and shares in millions, except per share amounts)
 
For the Three Months
 
For the Nine Months
 
Ended September 30,
 
Ended September 30,
 
2018
 
2017
 
2018
 
2017
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading securities
 
$
363

 
 
 
$
195

 
 
 
$
917

 
 
 
$
513

 
Available-for-sale securities
 
54

 
 
 
77

 
 
 
175

 
 
 
269

 
Mortgage loans (includes $27,058 and $25,168, respectively, for the three months ended and $79,877 and $75,155, respectively, for the nine months ended related to consolidated trusts)
 
28,723

 
 
 
27,047

 
 
 
85,064

 
 
 
81,105

 
Other
 
204

 
 
 
142

 
 
 
559

 
 
 
351

 
Total interest income
 
29,344

 
 
 
27,461

 
 
 
86,715

 
 
 
82,238

 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt
 
(114
)
 
 
 
(72
)
 
 
 
(331
)
 
 
 
(173
)
 
Long-term debt (includes $22,361 and $20,609, respectively, for the three months ended and $65,972 and $61,622, respectively, for the nine months ended related to consolidated trusts)
 
(23,861
)
 
 
 
(22,115
)
 
 
 
(70,406
)
 
 
 
(66,443
)
 
Total interest expense
 
(23,975
)
 
 
 
(22,187
)
 
 
 
(70,737
)
 
 
 
(66,616
)
 
Net interest income
 
5,369

 
 
 
5,274

 
 
 
15,978

 
 
 
15,622

 
Benefit (provision) for credit losses
 
716

 
 
 
(182
)
 
 
 
2,229

 
 
 
1,481

 
Net interest income after benefit (provision) for credit losses
 
6,085

 
 
 
5,092

 
 
 
18,207

 
 
 
17,103

 
Investment gains, net
 
166

 
 
 
313

 
 
 
693

 
 
 
689

 
Fair value gains (losses), net
 
386

 
 
 
(289
)
 
 
 
1,660

 
 
 
(1,020
)
 
Fee and other income
 
271

 
 
 
1,194

 
 
 
830

 
 
 
1,796

 
Non-interest income
 
823

 
 
 
1,218

 
 
 
3,183

 
 
 
1,465

 
Administrative expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
(355
)
 
 
 
(331
)
 
 
 
(1,101
)
 
 
 
(1,007
)
 
Professional services
 
(247
)
 
 
 
(218
)
 
 
 
(744
)
 
 
 
(681
)
 
Other administrative expenses
 
(138
)
 
 
 
(115
)
 
 
 
(400
)
 
 
 
(346
)
 
Total administrative expenses
 
(740
)
 
 
 
(664
)
 
 
 
(2,245
)
 
 
 
(2,034
)
 
Foreclosed property expense
 
(159
)
 
 
 
(140
)
 
 
 
(460
)
 
 
 
(391
)
 
Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees
 
(576
)
 
 
 
(531
)
 
 
 
(1,698
)
 
 
 
(1,552
)
 
Other expenses, net
 
(377
)
 
 
 
(427
)
 
 
 
(946
)
 
 
 
(1,100
)
 
Total expenses
 
(1,852
)
 
 
 
(1,762
)
 
 
 
(5,349
)
 
 
 
(5,077
)
 
Income before federal income taxes
 
5,056

 
 
 
4,548

 
 
 
16,041

 
 
 
13,491

 
Provision for federal income taxes
 
(1,045
)
 
 
 
(1,525
)
 
 
 
(3,312
)
 
 
 
(4,495
)
 
Net income
 
4,011

 
 
 
3,023

 
 
 
12,729

 
 
 
8,996

 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes
 
(33
)
 
 
 
27

 
 
 
(349
)
 
 
 
(46
)
 
Other
 
(3
)
 
 
 
(2
)
 
 
 
(8
)
 
 
 
(6
)
 
Total other comprehensive income (loss)
 
(36
)
 
 
 
25

 
 
 
(357
)
 
 
 
(52
)
 
Total comprehensive income
 
$
3,975

 
 
 
$
3,048

 
 
 
$
12,372

 
 
 
$
8,944

 
Net income
 
$
4,011

 
 
 
$
3,023

 
 
 
$
12,729

 
 
 
$
8,996

 
Dividends distributed or available for distribution to senior preferred stockholder
 
(3,975
)
 
 
 
(3,048
)
 
 
 
(9,372
)
 
 
 
(8,944
)
 
Net income (loss) attributable to common stockholders
 
$
36

 
 
 
$
(25
)
 
 
 
$
3,357

 
 
 
$
52

 
Earnings (loss) per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.01

 
 
 
$
0.00

 
 
 
$
0.58

 
 
 
$
0.01

 
Diluted
 
0.01

 
 
 
0.00

 
 
 
0.57

 
 
 
0.01

 
Weighted-average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
5,762

 
 
 
5,762

 
 
 
5,762

 
 
 
5,762

 
Diluted
 
5,893

 
 
 
5,762

 
 
 
5,893

 
 
 
5,893

 








See Notes to Condensed Consolidated Financial Statements

Fannie Mae (In conservatorship) Third Quarter 2018 Form 10-Q
53