WASHINGTON (dpa-AFX) - Fannie Mae (FNMA.OB) reported 2014 net income to company of $14.21 billion, compared to $83.96 billion, prior year. Fannie Mae's prior year results included the release of the valuation allowance against deferred tax assets. The company reported a net loss to shareholders of $1.12 billion or $0.19 per share, compared to a loss of $1.46 billion or $0.25 per share, prior year. .
Fannie Mae said its 2014 results were driven by strong revenues from net interest income and income from settlement agreements related to private-label mortgage-related securities sold to Fannie Mae, as well as credit-related income due primarily to increasing home prices during the year . These results were partially offset by a provision for federal income taxes and fair value losses on risk management derivatives due to declines in longer-term interest rates in 2014. Fannie Mae recognized a provision for federal income taxes of $6.9 billion for the year ended 2014.
Net interest income totalled $19.97 billion, compared to $22.40 billion, last year. Total noninterest income was $2.06 billion, compared to $8.15 billion. For the year, net revenues were $25.9 billion, compared to $26.3 billion in 2013.
The company said the decrease in net interest income compared to 2013 was due primarily to lower interest income from retained mortgage portfolio assets due to a decline in the size of the company' s retained mortgage portfolio, partially offset by an increase in net interest income from guaranty fees.
Fannie Mae paid a total of $20.6 billion in dividends to Treasury in 2014. The company expects to pay Treasury $1.9 billion in dividends in March 2015. With the expected March 2015 dividend payment, the company will have paid a total of $136.4 billion in dividends to Treasury.
Fannie Mae reported net income to company of $1.31 billion for the fourth quarter of 2014. Net revenues, which consist of net interest income and fee and other income, were $5.47 billion for the fourth quarter of 2014.
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