Selected Quarterly Financial Information (Unaudited)

The consolidated statements of operations for the quarterly periods in 2013 and 2012 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 2013 Quarter Ended
	March 31				June 30				September 30				December 31
	(Dollars and shares in millions, except per share amounts)
Interest income:
Trading securities		$	226			$	222			$	185			$	146
Available-for-sale securities		673				651				546				487
Mortgage loans		29,224				28,056				28,299				28,659
Other		57				49				37				32
Total interest income		30,180				28,978				29,067				29,324
Interest expense:
Short-term debt		43				37				29				22
Long-term debt		23,833				23,274				23,456				24,451
Total interest expense		23,876				23,311				23,485				24,473
Net interest income		6,304				5,667				5,582				4,851
Benefit for credit losses		957				5,383				2,609				—
Net interest income after benefit for credit losses		7,261				11,050				8,191				4,851
Investment gains, net		118				290				648				135
Net other-than-temporary impairments		(9		)		(6		)		(27		)		(22		)
Fair value gains, net		834				829				335				961
Debt extinguishment (losses) gains, net		(23		)		27				92				35
Fee and other income		568				485				741				2,136
Non-interest income		1,488				1,625				1,789				3,245
Administrative expenses:
Salaries and employee benefits		317				304				307				290
Professional services		223				219				236				232
Occupancy expenses		46				47				48				48
Other administrative expenses		55				56				55				62
Total administrative expenses		641				626				646				632
Foreclosed property income		(260		)		(332		)		(1,165		)		(1,082		)
TCCA fees		186				233				276				306
Other expenses (income), net		68				68				124				(34		)
Total other expenses (income)		635				595				(119		)		(178		)
Income before federal income taxes		8,114				12,080				10,099				8,274
Benefit (provision) for federal income taxes		50,571				(1,985		)		(1,355		)		(1,816		)
Net income		58,685				10,095				8,744				6,458
Less: Net income attributable to noncontrolling interest		—				(11		)		(7		)		(1		)
Net income attributable to Fannie Mae		58,685				10,084				8,737				6,457
Dividends distributed or available for distribution to senior preferred stockholder		(59,368		)		(10,243		)		(8,617		)		(7,191		)
Net (loss) income attributable to common stockholders (Note 11)		$	(683	)		$	(159	)		$	120			$	(734	)
(Loss) earnings per share:
Basic		$	(0.12	)		$	(0.03	)		$	0.02			$	(0.13	)
Diluted		(0.12		)		(0.03		)		0.02				(0.13		)
Weighted-average common shares outstanding:
Basic		5,762				5,762				5,762				5,762
Diluted		5,762				5,762				5,893				5,762



	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		(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
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		)
TCCA fees		—				26				78				134
Other expenses, net		252				212				207				151
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
Dividends distributed or available for distribution to senior preferred stockholder		(2,817		)		(2,929		)		(2,929		)		(7,152		)
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