Federal National Mortgage Association · OTC:FNMA
Federal National Mortgage Association — Federal National Mortgage Association Fannie MAE — FY2005 Earnings Presentation
16 slides from Federal National Mortgage Association's earnings presentation, May 2, 2007
Slide 1: Fannie Mae 2005 10-K Investor Summary
Fannie Mae 2005 10-K Investor Summary May 2, 2007
Slide 2: Presentation of 10-K information notice
These materials present tables and other information contained in Fannie Mae's Annual Report on Form 10-K for the year ended December 31, 2005 and should be reviewed together with the 2005 Form 10-K, a copy of which is available on the company's Web site at www.fanniemae.com under the "Investor Rela
Slide 3: Current Highlights
Current Highlights Continue to hit key milestones 2004 10-K with Restated Historical Results - 12/6/06 2005 10-K - 5/2/07 Continued momentum towards timely reporting Demonstrated commitment to return capital to shareholders Two dividend increases in last five months (to $0.50/share per quarter) Busi
Slide 4: 2005 Highlights
2005 Highlights Good 2005 results in a challenging market environment Net income increased to $6.3 billion, a $1.4 billion or 28% increase Book of business grew modestly to $2.4 trillion in a very competitive environment Core capital grew to $39.4 billion, $2.7 billion above our regulator's 30% mini
Slide 5: 2005 Financial Results by Segment
2005 Financial Results by Segment Source: Table 12, Consolidated Statements of Income, Table 13 Increase (Decrease) Increase (Decrease) Increase (Decrease) Increase (Decrease) For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, 2005 vs. 2004 2005 vs. 2004
Slide 6: 2005 Income Statement by Segment
2005 Income Statement by Segment Single Family Credit Guaranty 2,400 2,500 2,600 2,700 2,800 2,300 2005 2004 2003 $mm HCD 100 200 300 400 500 0 2005 2004 2003 $mm Capital Markets 0 1,000 2,000 3,000 4,000 5,000 6,000 2003 2004 2005 $mm 4 Source: Notes to Consolidated Financial Statements - Footnote
Slide 7: GAAP Financial Results
GAAP Financial Results For the Year Ended December 31, 200 5 200 4 200 3 Dollars in millions, except per share amounts Net interest income....................................... $ 11,505 18,081 19,477 Guaranty fee income..................................... 3,779 3,604 3,281 Fee and other income....
Slide 8: Selected Financial and Operating Statistics
Selected Financial and Operating Statistics Source: Item 6: Selected Financial Information 6 2005 2004 2003 2002 Ratios: Return on assets ratio........................................................ 0.63% 0.47% 0.82% 0.44% Return on equity ratio.......................................... 19.5 16.6 2
Slide 9: Balance Sheet Data
As of December, 31 2005 2004 2003 2002 2001 (Dollars in millions) Balance Sheet Data: Investments in securities: Trading................................................... $ 15,110 $ 35,287 $ 43,798 $ 14,909 $ (45) Available-for-sale.................................... 390,964 532,095 523,272 520,17
Slide 10: Net Interest Income and Yield
Net Interest Income and Yield Decrease in portfolio size Shift in mix of portfolio assets - greater proportion of ARMs Higher debt costs due to flattening of the yield curve For the Year Ended December 31, 2005 2004 2003 Average Balance Interest Yield Interest Yield Average Balance Interest Yield (D
Slide 11: Derivative Fair Value & Purchased Options Premiums Data
Derivative Fair Value & Purchased Options Premiums Data Net accrued interest on interest rate swaps Money spent to purchase options Money spent to terminate derivatives Decrease in swap interest expense Lower implied interest rate volatility Portfolio rebalancing Reduction due to net effect of: Sour
Slide 12: Guaranty Fee Analysis
Guaranty Fee Analysis 10 Source: Table 6 Guaranty fee income and average effective guaranty fee rate, excluding impairment of buy-ups Impairment of buy-ups Guaranty fee income and average effective guaranty fee rate Average outstanding Fannie Mae MBS and other guaranties Fannie Mae MBS issues $3,828
Slide 13: Credit Costs
Credit Costs Source: Table 26 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 YE 2002 YE 2003 YE 2004 YE 2005 YE 2006 YE 2001 Percentage Credit Losses/Book of Business(1) Single Family Serious Delinquency Rate(2) Credit Enhanced Non-Credit Enhanced Total (1) Credit losses include foreclosed proper
Slide 14: Administrative Expenses
Administrative Expenses Source: Consolidated Statement of Operation 2005 2004 2003 2002 $ 959 $ 892 $ 849 $ 679 792 435 238 218 221 185 166 165 143 144 201 94 $ 2,115 $ 1,656 $ 1,454 $ 1,156 Increase largely due to restatement and related regulatory examinations, investigations and litigation. 12 ($
Slide 15: Change in Estimated Fair Value of Net Assets (Non-GAAP)
Change in Estimated Fair Value of Net Assets (Non-GAAP) Source: Table 19 Estimated Fair value of net assets, has grown by $2.1 billion. 13 Key Drivers: An increase in the fair value of our net guaranty assets of approximately $1.5 billion Wider spreads between mortgages and debt suppressed fair valu
Slide 16: Appendix: Reconciliation of Fair Value of Net Assets to Stockholders' Equity
APPENDIX The following sets forth a reconciliation of the estimated fair value of our net assets (non-GAAP) to total stockholders' equity (GAAP). A more detailed reconciliation is contained in Table 17 of the 2005 Form 10-K. (1) Represents fair value increase of $1.9 billion to total assets of $834.
Federal National Mortgage Association Fannie MAE — FY2005 Earnings Presentation on 6ix