Fannie Mae Financials - FANNIE MAE(In conservatorship...

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Unformatted text preview: FANNIE MAE (In conservatorship) Consolidated Balance Sheets (Dollars in millions, except share amounts) ASSETS Cash and cash equivalents Restricted cash (includes $23,982 and $61,976, respectively, related to consolidated trusts Federal funds sold and securities purchased under agreements to resell or similar arrangements Investments in securities: Trading, at fair value Available-for-sale, at fair value (includes $998 and $935, respectively, related to consolidated trusts). Total investments in securities Mortgage loans: Loans held for sale, at lower of cost or fair value (includes $31 and $72, respectively, related to consolidated trusts) Loans held for investment, at amortized cost Of Fannie Mae Of consolidated trusts (includes $14,268 and $10,800, respectively, at fair value and loans pledged as collateral that may be sold or repledged of $442 and $943, respectively Total loans held for investment Allowance for loan losses Total loans held for investment, net of allowance Accrued interest receivable, net (includes $7,271 and $7,567, respectively, related to consolidated trusts) Acquired property, net Deferred tax assets, net Other assets (includes cash pledged as collateral of $1,590 and $1,222, respectively). Total assets Liabilities Accrued interest payable (includes $8,276 and $8,645, respectively, related to consolidated trusts) Debt: Of Fannie Mae (includes $1,308 and $793, respectively, at fair value) Of consolidated trusts (includes $14,976 and $11,647, respectively, at fair value) Other liabilities (includes $488 and $1,059, respectively, related to consolidated trusts) Total liabilities Commitments and contingencies (Note 19) Fannie Mae stockholders’ equity: Senior preferred stock, 1,000,000 shares issued and outstanding Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding Common stock, no par value, no maximum authorization—1,308,762,703 shares issued, 1,158,080,657 and Accumulated deficit Accumulated other comprehensive income Treasury stock, at cost, 150,682,046 and 150,684,733 shares, respectively Total Fannie Mae stockholders’ equity Noncontrolling interest Total equity (See Note 1: Impact of U.S. Government Support and (Loss) Earnings per Share for information o Total liabilities and equity FANNIE MAE (In conservatorship) Consolidated Balance Sheets (Dollars in millions, except share amounts) ASSETS cash equivalents d cash (includes $23,982 and $61,976, respectively, related to consolidated trusts unds sold and securities purchased under agreements to resell or similar arrangements nts in securities: ading, at fair value ailable-for-sale, at fair value (includes $998 and $935, respectively, related to consolidated trusts). Total investments in securities ans held for sale, at lower of cost or fair value (includes $31 and $72, respectively, related to consolidated trusts) ans held for investment, at amortized cost Fannie Mae consolidated trusts (includes $14,268 and $10,800, respectively, at fair value and loans pledged as collateral that may be sold or repledged of $442 and $943, respectively tal loans held for investment owance for loan losses Total loans held for investment, net of allowance Total mortgage loans nterest receivable, net (includes $7,271 and $7,567, respectively, related to consolidated trusts) property, net tax assets, net ets (includes cash pledged as collateral of $1,590 and $1,222, respectively). LIABILITIES AND EQUITY crued interest payable (includes $8,276 and $8,645, respectively, related to consolidated trusts) Of Fannie Mae (includes $1,308 and $793, respectively, at fair value) Of consolidated trusts (includes $14,976 and $11,647, respectively, at fair value) her liabilities (includes $488 and $1,059, respectively, related to consolidated trusts) Total liabilities mmitments and contingencies (Note 19) nnie Mae stockholders’ equity: Senior preferred stock, 1,000,000 shares issued and outstanding Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding Common stock, no par value, no maximum authorization—1,308,762,703 shares issued, 1,158,080,657 and 1,158,077,970 shares outstanding, respectively Accumulated deficit Accumulated other comprehensive income Treasury stock, at cost, 150,682,046 and 150,684,733 shares, respectively Total Fannie Mae stockholders’ equity oncontrolling interest Total equity (See Note 1: Impact of U.S. Government Support and (Loss) Earnings per Share for information on our dividend obligation to Treasury) tal liabilities and equity $ $ $ As of December 31, 2012 19,228 $ 21,117 28,995 $ 67,919 38,975 $ 32,500 $ $ $ 2013 $ $ $ $ 2,011 17,539 50,797 46,000 30,768 $ 38,171 $ 68,939 $ 40,695 $ 63,181 $ 103,876 $ 74,198 77,582 151,780 $ 380 $ 464 $ 311 $ 300,159 $ 355,544 $ 380,134 $ $ $ $ $ $ $ $ $ $ $ 2,769,547 3,069,706 (43,846) 3,025,860 3,026,240 8,319 11,621 47,560 20,231 3,270,108 10,553 $ $ $ $ $ $ 529,434 2,705,089 15,441 3,260,517 - $ $ 117,149 19,130 $ $ $ $ $ $ rmation on our $ $ $ $ $ $ $ $ $ $ 687 (121,227) 1,203 (7,401) 9,541 50 $ $ $ $ $ $ $ $ 2,652,193 3,007,737 (58,795) 2,948,942 2,949,406 9,176 10,489 27,939 3,222,422 $ $ 2,590,332 2,970,466 (72,156) 2,898,310 2,898,621 10,000 11,373 ### 25,374 3,211,484 11,303 $ 12,648 615,864 2,573,653 14,378 3,215,198 ### $ $ $ $ $ $ $ $ $ $ $ $ 73,244 2,457,428 13,535 3,216,055 - ### $ ### $ 112,578 19,130 ### (122,766) 384 ### 7,183 41 $ $ $ $ $ $ 687 (128,381) (1,235) (7,403) (4,624) 53 $ $ 9,591 $ 3,270,108 $ 7,224 $ 3,222,422 $ (4,571) 3,211,484 FANNIE MAE (In conservatorship) Consolidated Statements of Operations and Comprehensive Income (Loss) (Dollars and shares in millions, except per share amounts) Interest income: Trading securities Available-for-sale securities. Mortgage loans (includes $101,448, $110,451, and $123,633, respectively, related to consolidated trusts) Other Total interest income Interest expense Short-term debt Long-term debt (includes $84,751, $95,612, and $108,641, respectively, related to consolidated trusts) Total interest expense Net interest income Benefit (provision) for credit losses Net interest income (loss) after benefit (provision) for credit losses Investment gains, net Net other-than-temporary impairments Fair value gains (losses), net Debt extinguishment gains (losses), net Fee and other income Non-interest income (loss). Administrative expenses Salaries and employee benefits Professional services Occupancy expenses Other administrative expenses Total administrative expenses. Foreclosed property (income) expense Temporary Payroll Tax Cut Continuation Act of 2011 (“TCCA”) fees Other expenses, net Total expenses Income (loss) before federal income taxes Benefit for federal income taxes Net income (loss) Other comprehensive income Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes Other Total other comprehensive income Total comprehensive income (loss) Less: Comprehensive (income) loss attributable to noncontrolling interest Total comprehensive income (loss) attributable to Fannie Mae Net income (loss) Less: Net (income) loss attributable to noncontrolling interest Net income (loss) attributable to Fannie Mae Dividends distributed or available for distribution to senior preferred stockholder (Note 11) Net (loss) income attributable to common stockholders (Note 11) . (Loss) earnings per share Basic Diluted Weighted-average common shares outstanding: Basic Diluted FANNIE MAE (In conservatorship) Consolidated Statements of Operations and Comprehensive Income (Loss) (Dollars and shares in millions, except per share amounts) ale securities. ns (includes $101,448, $110,451, and $123,633, respectively, related to consolidated trusts) bt (includes $84,751, $95,612, and $108,641, respectively, related to consolidated trusts) est expense for credit losses e (loss) after benefit (provision) for credit losses mporary impairments nt gains (losses), net ncome (loss). mployee benefits trative expenses inistrative expenses. y (income) expense Tax Cut Continuation Act of 2011 (“TCCA”) fees e federal income taxes ncome taxes realized gains on available-for-sale securities, net of reclassification adjustments and taxes r comprehensive income ensive income (loss) prehensive (income) loss attributable to noncontrolling interest ensive income (loss) attributable to Fannie Mae (income) loss attributable to noncontrolling interest oss) attributable to Fannie Mae For the Year Ended December 31 2013 2012 $ $ $ $ $ 779 2,357 114,238 175 117,549 $ $ $ $ $ 989 3,299 124,706 196 129,190 $ $ $ $ $ $ $ $ $ $ $ $ 131 95,014 95,145 22,404 8,949 31,353 1,191 (64) 2,959 131 3,930 8,147 $ $ $ $ $ $ $ $ $ $ $ $ 152 107,537 107,689 21,501 852 22,353 487 (713) (2,977) (244) 1,487 (1,960) $ $ $ $ $ $ $ $ $ $ $ $ 1,218 910 189 228 2,545 (2,839) 1,001 226 933 38,567 45,415 83,982 $ $ $ $ $ $ $ $ $ $ $ $ 1,195 766 188 218 2,367 (254) 238 822 3,173 17,220 17,220 $ $ $ $ $ $ $ $ $ 693 126 819 84,801 (19) 84,782 83,982 (19) 83,963 $ $ $ $ $ $ $ $ $ 1,735 (116) 1,619 18,839 4 18,843 17,220 4 17,224 ributed or available for distribution to senior preferred stockholder (Note 11) me attributable to common stockholders (Note 11) . $ $ (85,419) $ (1,456) $ (15,827) 1,397 $ $ (0.25) $ (0.25) $ 0.24 0.24 rage common shares outstanding: 5,762.00 5,762.00 5,762.00 5,893.00 r Ended December 31 2011 $ $ $ $ $ 1,087 3,277 138,462 117 142,943 $ 310 $ 123,352 $ 123,662 $ 19,281 $ (26,718) $ (7,437) $ 506 $ (308) $ (6,621) $ (232) $ 1,163 $ (5,492) $ $ $ $ $ $ $ $ $ $ $ $ 1,236 736 179 219 2,370 780 866 4,016 (16,945) 90 (16,855) $ $ $ $ $ $ $ $ $ 622 (175) 447 (16,408) (16,408) (16,855) (16,855) $ $ (9,614) (26,469) $ $ (4.61) (4.61) 5,737.00 5,737.00 FANNIE MAE (In conservatorship) Consolidated Statements of Cash Flows (Dollars in millions) Cash flows provided by (used in) operating activities Net income (loss) Reconciliation of net income (loss) to net cash provided by (used in) operating activities: Amortization of cost basis adjustments (Benefit) provision for credit losses Current and deferred federal income taxes Net gains related to the disposition of acquired property and preforeclosure sales, including credit enhancements Other, net Net cash provided by (used in) operating activities Cash flows provided by investing activities: Purchases of trading securities held for investment Proceeds from maturities and paydowns of trading securities held for investment Proceeds from sales of trading securities held for investment Purchases of available-for-sale securities Proceeds from maturities and paydowns of available-for-sale securities Proceeds from sales of available-for-sale securities Purchases of loans held for investment Proceeds from repayments and sales of loans acquired as held for investment of Fannie Mae Proceeds from repayments and sales of loans acquired as held for investment of consolidated trusts Net change in restricted cash Advances to lenders Proceeds from disposition of acquired property and preforeclosure sales Net change in federal funds sold and securities purchased under agreements to resell or similar arrangements Other, net Net cash provided by investing activities Cash flows used in financing activities: Proceeds from issuance of debt of Fannie Mae Payments to redeem debt of Fannie Mae Proceeds from issuance of debt of consolidated trusts Payments to redeem debt of consolidated trusts Payments of cash dividends on senior preferred stock to Treasury Proceeds from senior preferred stock purchase agreement with Treasury Other, net Net cash used in financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Cash paid during the period for: Interest Income taxes Non-cash activities: Net mortgage loans acquired by assuming debt Net transfers from mortgage loans of Fannie Mae to mortgage loans of consolidated trusts Transfers from advances to lenders to loans held for investment of consolidated trusts Net transfers from mortgage loans to acquired property Net Cash Flow ash Flows $ $ $ $ $ $ $ $ For the Year Ended December 31 2013 2012 2011 83,982 $ 17,220 $ (16,855) (5,104) (8,949) (47,766) 1,575 $ $ $ $ (6,024) $ (4,811) $ 12,903 $ (2,335) (852) 10 31,972 $ $ $ $ (369) 26,718 1,044 (17,048) (6,009) $ (3,005) $ 37,001 $ (5,109) (3,619) (15,238) $ $ $ $ $ $ $ $ (7,521) 2,491 14,585 10,116 15,497 (195,386) 48,875 $ $ $ $ $ $ $ $ (3,216) 3,508 3,861 (34) 12,636 1,306 (210,488) 31,322 $ $ $ $ $ $ $ $ (2,951) 2,591 1,526 (192) 13,552 3,192 (78,099) 25,190 $ $ $ $ 631,088 38,924 (139,162) 38,349 $ $ $ $ 797,331 (17,122) (144,064) 38,685 $ $ $ $ 544,145 12,881 (70,914) 47,248 13,500 $ 468 $ 527,693 $ (34,249) 468 464,388 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ (6,475) $ 1,373 $ 452,754 $ 372,361 (459,745) 409,979 (707,544) (82,452) (145) (467,546) (1,889) 21,117 19,228 $ $ $ $ $ $ $ $ $ $ $ 109,240 $ 736,065 (854,111) 396,513 (832,537) (11,608) 4,571 (9) (561,116) 3,578 17,539 21,117 $ $ $ $ $ $ $ $ $ $ $ 766,598 (815,838) 233,519 (647,695) (9,613) 23,978 146 (448,908) 242 17,297 17,539 119,259 $ 128,806 $ $ $ $ $ $ 2,350 $ 433,007 179,097 137,074 34,024 $ $ $ $ (1,889) $ 537,862 165,272 133,554 46,981 $ - $ $ $ $ 448,437 33,859 69,223 56,517 3,578 $ 242 Ratios Calculate the 2014 profit margin, basic earning power (BEP), return on assets (ROA), and reutrn on equity (ROE). Calculate the 2014 price/earnings ratio, price/cash flow ratio, and market/book ratio. Do these ratios indicate that investors Profit Margin = Basic Earning Power = Return on Assets (ROA) = Return on Equity (ROE) = n equity (ROE). tios indicate that investors are expected to have a high or low opinion of the company? ...
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