Freddie Mac · OTC:FMCC
Freddie Mac — Federal Home Loan Mortgage Corp (Fmcc, Fmccg, Fmcci, Fmccj, Fmccl, Fmccn, Fmcco, Fmccs, Fmcct, Fmcki, Fmckl, Fmckn, Frejn, Frejo) — Q2 2018 Earnings Presentation
14 slides from Freddie Mac's earnings presentation, Jul 31, 2018
Slide 1: Second Quarter 2018 Financial Results Supplement
Exhibit 99.2 Second Quarter 2018 Financial Results Supplement July 31, 2018
Slide 2: Corporate Highlights
Corporate Highlights Financial highlights $ Billions $4.7 ▪ 2Q18 comprehensive income of $2.4 billion was driven by strong business $2.0 $2.9 $2.2 $2.4 $0.2 revenues and a $334 million (pre-tax), $2.1 $2.2 $1.8 or $264 million (after-tax), litigation judgment. $(5.4) ▪ 2Q18 comprehensive income, $(3
Slide 3: Total Portfolio Balances
Total Portfolio Balances 2 Total guarantee portfolio Portfolio balance highlights $ Billions +6% ▪ Total guarantee portfolio: $2,049 $2,075 $1,958 $1,984 $2,032 • Single-family - grew $71 billion, or 4% year-over- $220 $174 $184 $203 $213 year. • Multifamily - grew $46 billion, or 26% year-over- yea
Slide 4: Conservatorship and Regulatory Matters
Conservatorship and Regulatory Matters Treasury draw requests and dividend payments DFAST7 - Additional draws needed under $ Billions severely adverse scenario $ Billions $140.5 $112.4 $96.5 6 $71.3 $71.6 $62 $53 $43 $34 $26 $21 $10.9 $5.0 $0.3 2008-2015 2016 2017 2018 YTD Cumulative 2015 2016 2017
Slide 5: Interest-rate Risk Measures
Interest-rate Risk Measures GAAP Adverse Scenario8 (Before-Tax) PMVS-Level9 and Average Duration Gap10 $ Billions ($0.5) ($0.6) ($0.5) $35 $17 $23 ($1.2) $9 $8 ($1.5) 2Q17 3Q17 4Q17 1Q18 2Q18 ($2.8) ($3.1) ($3.3) ($3.3) ($3.4) PMVS-L (50 bps) ($ Millions) 84% 83% 86% 55% 58% 0 0 0 0 0 06/30/17 09/30
Slide 6: Key Economic Indicators
Key Economic Indicators National home prices increased by an average of 6.8% Quarterly ending interest rates over the past year 4.44% 4.55% 3.99% 3.88% 3.83% 2.78% 2.93% 2.27% 2.28% 2.39% 6/30/2017 9/30/2017 12/31/2017 3/31/2018 6/30/2018 30-year PMMS 10-year LIBOR Unemployment rate and job creation
Slide 7: Single-family Financial Highlights and Key Metrics
Single-family Financial Highlights and Key Metrics Single-family segment earnings New funding volume $ Millions $ Billions Guarantee fees charged on new acquisitions (bps)11 44 42 40 41 $778 $803 36 $758 $702 $98 $87 $84 $73 $41 $66 $255 $30 $26 $28 $28 $45 $57 $57 $38 $58 2Q17 3Q17 4Q17 1Q18 2Q18 2
Slide 8: Single-family Credit Risk Transfer – STACR / ACIS / Deep MI
Single-family Credit Risk Transfer – STACR / ACIS / Deep MI Total Single-family credit guarantee portfolio with Cumulative Single-family transferred credit risk transferred credit risk based on outstanding balance at period end $ Billions $ Billions Outstanding reference pool UPB as a percentage of
Slide 9: Multifamily Financial Highlights and Key Metrics
Multifamily Financial Highlights and Key Metrics Multifamily comprehensive income Multifamily acquisitions of units by area median $ Millions income (% of eligible units acquired) $660 10% 12% 14% 17% 13% $524 $462 $404 $370 90% 88% 86% 83% 87% 2Q17 3Q17 4Q17 1Q18 2Q18 2014 2015 2016 2017 YTD 2018*
Slide 10: Multifamily Key Metrics, continued
Multifamily Key Metrics, continued New funding volume Multifamily securitization volume12 $ Billions $ Billions Cap = $36.5 Cap = $35.0 Cap = $30.0 $71.5 $73.2 $62.2 Cap = $25.9 $5.5 $56.8 $51.2 $3.9 $47.3 $39.5 $20.3 $37.4 $1.8 $17.3 $29.9 $28.3 $28.9 $56.7 $3.1 $2.4 $21.3 $47.3 $17.6 $35.6 $36.5 $
Slide 11: Capital Markets Financial Highlights and Key Metrics
Capital Markets Financial Highlights and Key Metrics Capital Markets comprehensive income Capital Markets investments portfolio $ Billions $ Billions -14% $4.0 $304 $289 $285 $260 $261 $82 $82 $89 $70 $73 $1.0 $1.1 $0.7 $0.6 $222 $207 $196 $190 $188 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18
Slide 12: Housing Market Support
Housing Market Support Number of families Freddie Mac helped Number of single-family loan workouts15 to own or rent a home14 In Thousands In Thousands 2,421 2,311 2,237 937 663 94 910 13 6 75 69 5 828 21 9 15 745 1,024 986 5 51 677 12 10 2 343 245 12 35 5 23 349 399 54 6 45 739 820 43 650 32 24 332
Slide 13: Endnotes
Endnotes 1 For additional information regarding Freddie Mac’s non-GAAP financial measures and reconciliations to the comparable amounts under GAAP, see the company’s Press Release for the quarter ended June 30, 2018. 2 Based on unpaid principal balances (UPB) of loans and securities. Excludes mortga
Slide 14: Safe Harbor Statements
Safe Harbor Statements Freddie Mac obligations Freddie Mac’s securities are obligations of Freddie Mac only. The securities, including any interest or return of discount on the securities, are not guaranteed by and are not debts or obligations of the United States or any federal agency or instrument