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Selected Quarterly Financial Information (Unaudited)
12 Months Ended
Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Information (Unaudited)
Selected Quarterly Financial Information (Unaudited)
The consolidated statements of operations for the quarterly periods in 2012 and 2011 are unaudited and in the opinion of management include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of our consolidated statements of operations. The operating results for the interim periods are not necessarily indicative of the operating results to be expected for a full year or for other interim periods.
 
For the 2012 Quarter Ended
 
March 31
 
June 30
 
September 30
 
December 31
 
(Dollars and shares in millions, except per share amounts)
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading securities
 
$
449

 
 
 
$
73

 
 
 
$
234

 
 
 
$
233

 
Available-for-sale securities
 
727

 
 
 
1,035

 
 
 
789

 
 
 
748

 
Mortgage loans
 
32,570

 
 
 
32,023

 
 
 
30,593

 
 
 
29,520

 
Other
 
38

 
 
 
40

 
 
 
53

 
 
 
65

 
Total interest income
 
33,784

 
 
 
33,171

 
 
 
31,669

 
 
 
30,566

 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt
 
42

 
 
 
32

 
 
 
38

 
 
 
40

 
Long-term debt
 
28,545

 
 
 
27,711

 
 
 
26,314

 
 
 
24,967

 
Total interest expense
 
28,587

 
 
 
27,743

 
 
 
26,352

 
 
 
25,007

 
Net interest income
 
5,197

 
 
 
5,428

 
 
 
5,317

 
 
 
5,559

 
(Provision) benefit for credit losses(1)
 
(2,000
)
 
 
 
3,041

 
 
 
(2,079
)
 
 
 
1,890

 
Net interest income after (provision) benefit for credit losses
 
3,197

 
 
 
8,469

 
 
 
3,238

 
 
 
7,449

 
Investment gains, net
 
116

 
 
 
131

 
 
 
134

 
 
 
106

 
Other-than-temporary impairments
 
(80
)
 
 
 
(196
)
 
 
 
(17
)
 
 
 
(18
)
 
Noncredit portion of other-than-temporary impairments recognized in other comprehensive income (loss)
 
16

 
 
 
(403
)
 
 
 
(21
)
 
 
 
6

 
Net other-than-temporary impairments
 
(64
)
 
 
 
(599
)
 
 
 
(38
)
 
 
 
(12
)
 
Fair value gains (losses), net
 
283

 
 
 
(2,449
)
 
 
 
(1,020
)
 
 
 
209

 
Debt extinguishment losses, net
 
(34
)
 
 
 
(93
)
 
 
 
(54
)
 
 
 
(63
)
 
Fee and other income
 
375

 
 
 
395

 
 
 
378

 
 
 
339

 
Non-interest income (loss)
 
676

 
 
 
(2,615
)
 
 
 
(600
)
 
 
 
579

 
Administrative expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
306

 
 
 
292

 
 
 
294

 
 
 
303

 
Professional services
 
168

 
 
 
179

 
 
 
195

 
 
 
224

 
Occupancy expenses
 
43

 
 
 
48

 
 
 
48

 
 
 
49

 
Other administrative expenses
 
47

 
 
 
48

 
 
 
51

 
 
 
72

 
Total administrative expenses
 
564

 
 
 
567

 
 
 
588

 
 
 
648

 
Foreclosed property expense (income)
 
339

 
 
 
(70
)
 
 
 
(48
)
 
 
 
(475
)
 
Other expenses
 
252

 
 
 
238

 
 
 
285

 
 
 
285

 
Total expenses
 
1,155

 
 
 
735

 
 
 
825

 
 
 
458

 
Net income
 
2,718

 
 
 
5,119

 
 
 
1,813

 
 
 
7,570

 
     Less: Net loss (income) attributable to noncontrolling interest
 
1

 
 
 
(5
)
 
 
 
8

 
 
 

 
Net income attributable to Fannie Mae
 
2,719

 
 
 
5,114

 
 
 
1,821

 
 
 
7,570

 
Preferred stock dividends
 
(2,817
)
 
 
 
(2,929
)
 
 
 
(2,929
)
 
 
 
(2,928
)
 
Undistributed earnings available for distribution to senior preferred stockholder
 

 
 
 

 
 
 

 
 
 
(4,224
)
 
Net (loss) income attributable to common stockholders (Note 11)
 
$
(98
)
 
 
 
$
2,185

 
 
 
$
(1,108
)
 
 
 
$
418

 
(Loss) earnings per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
(0.02
)
 
 
 
$
0.38

 
 
 
$
(0.19
)
 
 
 
$
0.07

 
Diluted
 
(0.02
)
 
 
 
0.37

 
 
 
(0.19
)
 
 
 
0.07

 
Weighted-average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
5,761

 
 
 
5,762

 
 
 
5,762

 
 
 
5,762

 
Diluted
 
5,761

 
 
 
5,893

 
 
 
5,762

 
 
 
5,893

 
__________
(1) 
Includes out-of-period adjustments of $548 million, $503 million, $850 million, and $172 million which increased our provision for credit losses for the three months ended March 31, 2012, June 30, 2012, September 30, 2012, and December 31, 2012, respectively.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the 2011 Quarter Ended
 
March 31
 
June 30
 
September 30
 
December 31(1)
 
(Dollars and shares in millions, except per share amounts)
Interest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trading securities
 
$
284

 
 
 
$
264

 
 
 
$
274

 
 
 
$
265

 
Available-for-sale securities
 
1,213

 
 
 
1,152

 
 
 
1,160

 
 
 
(248
)
 
Mortgage loans
 
35,590

 
 
 
35,333

 
 
 
34,334

 
 
 
33,205

 
Other
 
28

 
 
 
25

 
 
 
26

 
 
 
38

 
Total interest income
 
37,115

 
 
 
36,774

 
 
 
35,794

 
 
 
33,260

 
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt
 
107

 
 
 
81

 
 
 
66

 
 
 
56

 
Long-term debt
 
32,048

 
 
 
31,721

 
 
 
30,542

 
 
 
29,041

 
Total interest expense
 
32,155

 
 
 
31,802

 
 
 
30,608

 
 
 
29,097

 
Net interest income
 
4,960

 
 
 
4,972

 
 
 
5,186

 
 
 
4,163

 
Provision for credit losses
 
(10,554
)
 
 
 
(6,537
)
 
 
 
(4,151
)
 
 
 
(5,476
)
 
Net interest (loss) income after provision for credit losses
 
(5,594
)
 
 
 
(1,565
)
 
 
 
1,035

 
 
 
(1,313
)
 
Investment gains, net
 
75

 
 
 
171

 
 
 
73

 
 
 
187

 
Other-than-temporary impairments
 
(57
)
 
 
 
(28
)
 
 
 
(232
)
 
 
 
(297
)
 
Noncredit portion of other-than-temporary impairments recognized in other comprehensive income (loss)
 
13

 
 
 
(28
)
 
 
 
(30
)
 
 
 
351

 
Net other-than-temporary impairments
 
(44
)
 
 
 
(56
)
 
 
 
(262
)
 
 
 
54

 
Fair value gains (losses), net
 
289

 
 
 
(1,634
)
 
 
 
(4,525
)
 
 
 
(751
)
 
Debt extinguishment gains (losses), net
 
13

 
 
 
(43
)
 
 
 
(119
)
 
 
 
(83
)
 
Fee and other income
 
237

 
 
 
265

 
 
 
291

 
 
 
370

 
Non-interest income (loss)
 
570

 
 
 
(1,297
)
 
 
 
(4,542
)
 
 
 
(223
)
 
Administrative expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
320

 
 
 
310

 
 
 
323

 
 
 
283

 
Professional services
 
189

 
 
 
169

 
 
 
173

 
 
 
205

 
Occupancy expenses
 
42

 
 
 
43

 
 
 
46

 
 
 
48

 
Other administrative expenses
 
54

 
 
 
47

 
 
 
49

 
 
 
69

 
Total administrative expenses
 
605

 
 
 
569

 
 
 
591

 
 
 
605

 
Foreclosed property expense (income)
 
488

 
 
 
(478
)
 
 
 
733

 
 
 
37

 
Other expenses
 
352

 
 
 
32

 
 
 
254

 
 
 
228

 
Total expenses
 
1,445

 
 
 
123

 
 
 
1,578

 
 
 
870

 
Loss before federal income taxes
 
(6,469
)
 
 
 
(2,985
)
 
 
 
(5,085
)
 
 
 
(2,406
)
 
(Provision) benefit for federal income taxes
 
(2
)
 
 
 
93

 
 
 

 
 
 
(1
)
 
Net loss
 
(6,471
)
 
 
 
(2,892
)
 
 
 
(5,085
)
 
 
 
(2,407
)
 
Less: Net (income) loss attributable to noncontrolling interest
 

 
 
 
(1
)
 
 
 

 
 
 
1

 
Net loss attributable to Fannie Mae
 
(6,471
)
 
 
 
(2,893
)
 
 
 
(5,085
)
 
 
 
(2,406
)
 
Preferred stock dividends
 
(2,216
)
 
 
 
(2,282
)
 
 
 
(2,494
)
 
 
 
(2,622
)
 
Net loss attributable to common stockholders
 
$
(8,687
)
 
 
 
$
(5,175
)
 
 
 
$
(7,579
)
 
 
 
$
(5,028
)
 
Loss per share—Basic and Diluted
 
$
(1.52
)
 
 
 
$
(0.90
)
 
 
 
$
(1.32
)
 
 
 
$
(0.87
)
 
Weighted-average common shares outstanding—Basic and Diluted
 
5,698

 
 
 
5,730

 
 
 
5,760

 
 
 
5,760

 
__________
(1) 
Includes an out-of-period adjustment of $933 million comprised of $1.2 billion to reduce “Interest Income: Available-for-sale securities” offset by a $264 million reduction to “Other-than-temporary impairments” in our consolidated statement of operations and comprehensive loss for the three months ended December 31, 2011.