Fannie Mae net income drops

Fannie Mae today reported a loss of 2.1 percent in its first quarter net income, dropping to $1.9 million from $1.94 million the first quarter of 2003.

Diluted earnings per share dropped 1.6 percent to $1.90 from $1.93 a year ago.

The company attributed the drop in net income to several factors including a 5.1 percent decline in net interest income and a $111.1 million drop in fee and other income.

Core business earnings totaled $2.02 million, a 9.2 percent increase over the first quarter of last year.

The company also reported a 7.6 percent decline in its mortgage portfolio on an annualized basis; a 14.8 percent increase in mortgage-backed securities; guaranty fee income of $736.9 million, a 34.8 percent increase over the first quarter of 2003; credit losses of $9.7 million, down $10.7 million compared with the first quarter of 2003 and core capital of $35.7 billion, a 21 percent increase over the first quarter of 2003.

Fannie Mae's business volume totaled $163 billion in the first quarter of 2004, compared with $335.9 billion a year ago.

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