Selected Quarterly Financial Information (Unaudited)

The consolidated statements of operations for the quarterly periods in 2014 and 2013 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. Certain prior period amounts have been reclassified to conform to the current period presentation. 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 2014 Quarter Ended
	March 31				June 30				September 30				December 31
	(Dollars and shares in millions, except per share amounts)
Interest income:
Trading securities		$	127			$	143			$	151			$	132
Available-for-sale securities		440				414				395				373
Mortgage loans		28,588				28,165				27,779				27,588
Other		24				24				29				33
Total interest income		29,179				28,746				28,354				28,126
Interest expense:
Short-term debt		20				21				26				27
Long-term debt		24,421				23,821				23,144				22,957
Total interest expense		24,441				23,842				23,170				22,984
Net interest income		4,738				4,904				5,184				5,142
Benefit for credit losses		774				1,639				1,085				466
Net interest income after benefit for credit losses		5,512				6,543				6,269				5,608
Investment gains, net		95				483				171				187
Fair value losses, net		(1,190		)		(934		)		(207		)		(2,502		)
Debt extinguishment gains, net		—				38				11				17
Fee and other income		4,355				383				826				323
Non-interest income (loss)		3,260				(30		)		801				(1,975		)
Administrative expenses:
Salaries and employee benefits		325				319				337				340
Professional services		242				275				263				296
Occupancy expenses		50				47				47				59
Other administrative expenses		55				56				59				7
Total administrative expenses		672				697				706				702
Foreclosed property (income) expense		(262		)		(214		)		249				369
TCCA fees		322				335				351				367
Other expenses, net		131				276				72				65
Total expenses		863				1,094				1,378				1,503
Income before federal income taxes		7,909				5,419				5,692				2,130
Provision for federal income taxes		(2,584		)		(1,752		)		(1,787		)		(818		)
Net income		5,325				3,667				3,905				1,312
Less: Net income attributable to noncontrolling interest		—				(1		)		—				—
Net income attributable to Fannie Mae		5,325				3,666				3,905				1,312
Dividends distributed or available for distribution to senior preferred stockholder		(5,692		)		(3,712		)		(3,999		)		(1,920		)
Net (loss) income attributable to common stockholders (Note 11)		$	(367	)		$	(46	)		$	(94	)		$	(608	)
(Loss) per share:
Basic and Diluted		$	(0.06	)		$	(0.01	)		$	(0.02	)		$	(0.11	)
Weighted-average common shares outstanding:
Basic and Diluted		5,762				5,762				5,762				5,762



	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		109				284				621				113
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 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