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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 08/05/2011
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Table of Contents

 
 
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 7 summarizes our condensed consolidated results of operations for the periods indicated.
 
Table 7:  Summary of Condensed Consolidated Results of Operations
 
                                                 
    For the Three Months Ended
    For the Six Months Ended
 
    June 30,     June 30,  
    2011     2010     Variance     2011     2010     Variance  
          (Dollars in millions)              
 
Net interest income
  $ 4,972     $ 4,207     $ 765     $ 9,932     $ 6,996     $ 2,936  
Fee and other income
    265       294       (29 )     502       527       (25 )
                                                 
Net revenues
  $ 5,237     $ 4,501     $ 736     $ 10,434     $ 7,523     $ 2,911  
                                                 
Investment gains, net
    171       23       148       246       189       57  
Net other-than-temporary impairments
    (56 )     (137 )     81       (100 )     (373 )     273  
Fair value (losses) gains, net
    (1,634 )     303       (1,937 )     (1,345 )     (1,402 )     57  
Administrative expenses
    (569 )     (670 )     101       (1,174 )     (1,275 )     101  
Credit-related expenses(1)
    (6,059 )     (4,851 )     (1,208 )     (17,101 )     (16,735 )     (366 )
Other non-interest expenses(2)
    (75 )     (383 )     308       (414 )     (737 )     323  
                                                 
Loss before federal income taxes
    (2,985 )     (1,214 )     (1,771 )     (9,454 )     (12,810 )     3,356  
Benefit (provision) for federal income taxes
    93       (9 )     102       91       58       33  
                                                 
Net loss
    (2,892 )     (1,223 )     (1,669 )     (9,363 )     (12,752 )     3,389  
Less: Net (income) loss attributable to the noncontrolling interest
    (1 )     5       (6 )     (1 )     4       (5 )
                                                 
Net loss attributable to Fannie Mae
  $ (2,893 )   $ (1,218 )   $ (1,675 )   $ (9,364 )   $ (12,748 )   $ 3,384  
                                                 
Total comprehensive (loss) income attributable to Fannie Mae
  $ (2,891 )   $ 452     $ (3,343 )   $ (9,181 )   $ (9,706 )   $ 525  
                                                 
 
 
(1) Consists of provision for loan losses, provision for guaranty losses, and foreclosed property expense (income).
 
(2) Consists of debt extinguishment losses, net and other expenses.
 
Net Interest Income
 
Table 8 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 9 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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