Page 52 - July-August 2018 GSE Report Flip Book

FANNIE MAE JJUALN. U- ARUYG. 22001188
FANNIE MAE Fannie Mae reported $4.5 billion net income for the second quarter
For the second quarter, Fannie Mae reported $4.5 billion in net income, compared with net income of $4.3 billion for the first quarter of the year. Fannie Mae’s increase in net income for the quarter was driven primarily by higher credit-related income, notably impacted by the assignment of a sizeable portion of the company’s re-performing and nonperforming loans from held-for-investment to a held-for-sale designation. A second factor boosting Fannie’s credit-related income was the improvement in home prices seen during the quarter. Partially offsetting these increases in net income, Fannie Mae experienced lower fair value gains in the second quarter compared to the first quarter, largely caused by lesser increases in long-term interest rates.
SUMMARY OF FINANCIAL RESULTS
Summary of Financial Results
(Dollars in millions) 2Q18 1Q18 Variance 2Q18 2Q17 Variance
Net interest income
Fee and other income
Net revenues
Investment gains, net
Fair value gains (losses), net Administrative expenses Credit-related income
Benefit for credit losses Foreclosed property expense
Total credit-related income
Temporary Payroll Tax Cut Continuation Act of 2011 (TCCA) fees
Other expenses, net
Income before federal income taxes
Provision for federal income taxes
Net income
Other comprehensive income (loss)
Total comprehensive income
$ 5,377 239
$ 5,232 $ 145
320
(81)
$ 5,377 239
$ 5,002 $ 375
353
(114)
5,616 277 229
(755)
1,296 (139)
5,552 64 250 27
1,045 (816) (750) (5)
217 1,079 (162) 23
5,616 277 229
(755)
1,296 (139)
5,355 261 385 (108)
(691) 920 (686) (69)
1,267 29 (34) (105)
1,157
(565) (366)
55
(557) (203)
1,102
(8) (163)
1,157
(565) (366)
1,233 (76)
(518) (47) (291) (75)
5,593 (1,136)
5,392 201 (1,131) (5)
5,593 (1,136)
4,787 806 (1,587) 451
$ 4,457 2
$ 4,261 $ 196
(323)
325
$ 4,457 2
$ 3,200 $ 1,257
(83)
85
$ 4,459
$ 3,938 $ 521
$ 4,459
$ 3,117 $ 1,342
Net revenues, which consist of net interest income and fee and other income, were $5.6 billion for both the second and first quarter of 2018.
FNaentniniterMesateinceoxmpecwtasst$o5p.4abyillaiodnifvoirdtehnedseocfo$nd4.q5uabritleliroonf2to01T8r,ecaosmuprayreindwSiethp$te5m.2beillrio2n0fo1r8thaenfdirswtqilularterof
2018. The company’s net interest income in the second quarter of 2018 was derived primarily from guaranty fees on
continue to retain a total of $3 billion in capital.
its $3.2 trillion guaranty book of business.
Fannie’s serious delinquency rate of its single-family book was 0.97% on June 30, 19 basis points lower than its SDQ rate (1.16%) on March 31st and 27 basis points lower than yearend 2017 (1.24%). The company’s trend in seriously delinquent loans resumed its downward trend after its brief move upward after the 2017 hurricane season.
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More than 75 percent of Fannie Mae’s net interest income in the second quarter of 2018 was derived from the loans