Page 48 - WHEDA Annual Report 2014

WHEDA finAnciAlS fy2014
For the Fiscal Years Ended June 30, 2014 and 2013 (Millions of Dollars)
StAtEMEntS of REvEnuES, EXpEnSES AnD cHAnGE in nEt poSition
2014
89.8 4.5
4.1 (55.3)
43.1
Mortgage service fees
Pass-through subsidy revenue
Other 16.5
2013
FAVORABLE/(UNFAVORABLE) AMOUNT %
(12.0) (11.8) 3.6 400.0 2.4 141.2
18.1 24.7
39.0
(18.3) (1.2)
7.1
4.3
19.1 1.2 52.9
(1.7) (12.5)
131.2
2.1
2.9
Mortgage income
Mortgage-backed investment income (net) Investment income (net)
Interest expense and debt financing costs
Net Interest Income
48
MiSSion. viSion. vAluES.
5.8 169.9
101.8 0.9 1.7
(73.4)
31.0
7.1 172.0 15.4
Net Interest and Other Income
Direct loan program expense Pass-through subsidy expense Grants and services
General and administrative expense Other expense
Change in Net Position
Net Position, Beginning of Year Prior Period Adjustment
Net Position, Beginning of Year, Restated
net Position, End of Year
Schedule may not foot due to rounding
Net interest income of $43.1 million reflects an increase of 39.0% from fiscal year 2013. The increase results primarily from an adjustment to investments and mortgage backed securities to reflect fair market value. However, the high level of prepayments experienced by the Authority over the last several years has allowed for the early retirement of higher rate variable bonds so the associated interest expense has decreased significantly which also contributed to the increase in Net interest income in 2014.
Direct loan program expense was down $4.0 million or 19.1%. The majority of this decline relates to the reduced liquidity and remarketing
235.3
16.9 169.9 0.8 17.9 0.9
28.9
609.4 (11.2)
598.2
627.1
225.5
20.9 172.0 1.7 17.6 0.8
12.5
596.9 -
596.9
609.4
12.1
(1.3) (2.1)
1.1
9.8
4.0 2.1 0.9
(0.3) (0.1)
16.4
12.5 (11.2)
1.3
17.7
fees associated with outstanding variable rate debt as a result of the early retirement of certain high cost variable rate debt. The reduction in Multifamily originations during 2014 also resulted in lower than anticipated loan loss expenses which are directly tied to volume. Pass-through subsidy revenue and expense represent subsidy proceeds and other financial assistance received by the Authority and transferred to or spent on behalf of secondary projects. Revenues and expenses of the pass-through subsidy programs are equal resulting in a net effect, on the Authority’s financial statements, of zero.