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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 05/06/2011
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assets totaled $42.7 billion during the quarter ended March 31, 2011 and $63.0 billion during the year ended December 31, 2010.
 
Financial liabilities measured at fair value on a recurring basis and classified as Level 3 consisted of long-term debt with a fair value of $1.1 billion as of March 31, 2011 and $1.0 billion as of December 31, 2010, and other liabilities with a fair value of $121 million as of March 31, 2011 and $143 million as of December 31, 2010.
 
 
CONSOLIDATED RESULTS OF OPERATIONS
 
In this section we discuss our condensed consolidated results of operations for the periods indicated. You should read this section together with our condensed consolidated financial statements, including the accompanying notes.
 
Table 6 summarizes our condensed consolidated results of operations for the periods indicated.
 
Table 6:  Summary of Condensed Consolidated Results of Operations
 
                         
    For the
       
    Three Months Ended
       
    March 31,        
    2011     2010     Variance  
    (Dollars in millions)  
 
Net interest income
  $ 4,960     $ 2,789     $ 2,171  
Fee and other income
    237       233       4  
                         
Net revenues
  $ 5,197     $ 3,022     $ 2,175  
                         
Investment gains, net
    75       166       (91 )
Net other-than-temporary impairments
    (44 )     (236 )     192  
Fair value gains (losses), net
    289       (1,705 )     1,994  
Administrative expenses
    (605 )     (605 )      
Credit-related expenses(1)
    (11,042 )     (11,884 )     842  
Other non-interest expenses(2)
    (339 )     (354 )     15  
                         
Loss before federal income taxes
    (6,469 )     (11,596 )     5,127  
Benefit (provision) for federal income taxes
    (2 )     67       (69 )
                         
Net loss
    (6,471 )     (11,529 )     5,058  
Less: Net income attributable to the noncontrolling interest
          (1 )     1  
                         
Net loss attributable to Fannie Mae
  $ (6,471 )   $ (11,530 )   $ 5,059  
                         
 
 
(1) Consists of provision for loan losses, reserve for guaranty losses, and foreclosed property income (expense).
 
(2) Consists of debt extinguishment losses, net and other expenses.
 
Net Interest Income
 
Table 7 presents an analysis of our net interest income, average balances, and related yields earned on assets and incurred on liabilities for the periods indicated. For most components of the average balances, we used a daily weighted average of amortized cost. When daily average balance information was not available, such as for mortgage loans, we used monthly averages. Table 8 presents the change in our net interest income between periods and the extent to which that variance is attributable to: (1) changes in the volume of our interest-earning assets and interest-bearing liabilities or (2) changes in the interest rates of these assets and liabilities. In the fourth quarter of 2010, we changed the presentation to distinguish the change in net interest income of Fannie Mae from the change in net interest income of consolidated trusts. We have revised the presentation of results for prior periods to conform to the current period presentation.


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