Fourth Quarter and Full Year 2015 Results 1

Resource Center: 1-800-732-6643

Contact: Pete Bakel

202-752-2034

Date: February 19, 2016

Fannie Mae Reports Net Income of $11.0 Billion and

Comprehensive Income of $10.6 Billion for 2015

Company Reports Net Income of $2.5 Billion and 

Comprehensive Income of $2.3 Billion for Fourth Quarter 2015

• Fannie Mae paid a total of $10.3 billion in dividends to Treasury in 2015. The company expects 

to pay Treasury $2.9 billion in dividends in March 2016. With the expected March 2016

dividend payment, Fannie Mae will have paid a total of $147.6 billion in dividends to Treasury. 

Dividend payments do not reduce prior Treasury draws, which total $116.1 billion.

• Fannie Mae provided approximately $516 billion in liquidity to the mortgage market in 2015, 

including approximately $116 billion in liquidity in the fourth quarter of 2015, enabling families 

to buy, refinance, or rent homes.

• Fannie Mae helped distressed families retain their homes or avoid foreclosure through 

approximately 122,000 workout solutions in 2015, including approximately 25,000 loan 

workouts during the fourth quarter of 2015.

• Fannie Mae continued to increase the role of private capital in the mortgage market and reduce 

taxpayer risk through its Connecticut Avenue SecuritiesTM (CAS), Credit Insurance Risk 

TransferTM (CIRT

TM), and other types of risk sharing transactions. Through 2015, Fannie Mae 

had transferred a significant portion of the mortgage credit risk on over $500 billion in unpaid 

principal balance of mortgage loans pursuant to these transactions. 

WASHINGTON, DC — Fannie Mae (FNMA/OTC) reported annual net income of $11.0 billion and 

annual comprehensive income of $10.6 billion in 2015. For the fourth quarter of 2015, Fannie Mae 

reported net income of $2.5 billion and comprehensive income of $2.3 billion. The company reported a 

positive net worth of $4.1 billion as of December 31, 2015, resulting in a dividend obligation to Treasury 

of $2.9 billion, which the company expects to pay in March 2016.

“Our strong 2015 results demonstrate our commitment to improving both our company and the broader 

housing finance system,” said Timothy J. Mayopoulos, president and chief executive officer. “We are 

listening closely to our customers so we deliver industry-leading solutions that make doing business with 

us easier, more efficient, and more certain. We are evolving our business model so we better serve the 

industry and taxpayers, and fulfill our essential role in making affordable mortgage and rental options 

available for millions of people across the country.”
Fourth Quarter and Full Year 2015 Results 2

Full Year 2015 Results - Fannie Mae’s 2015 net income of $11.0 billion declined from $14.2 billion in 

2014. The decrease in 2015 net income was due primarily to: 

• A substantial reduction in income resulting from settlement agreements resolving certain lawsuits 

relating to private-label mortgage-related securities sold to Fannie Mae 

• Decreases in mortgage interest rates had a significant positive impact on the company’s benefit for 

credit losses in 2014, while changes in interest rates were not a primary driver of the company’s 

2015 benefit for credit losses

• Increased expenses relating to the company’s single-family foreclosed properties

• The decrease in 2015 net income was partially offset by lower fair value losses for the year due to 

smaller decreases in longer-term interest rates negatively impacting the value of the company’s 

risk management derivatives

Fourth Quarter 2015 Results - Fannie Mae’s fourth quarter 2015 net income of $2.5 billion increased 

from $2.0 billion in the third quarter of 2015. The increase in fourth quarter 2015 net income was due 

primarily to:

• Fair value gains in the fourth quarter of 2015 due primarily to increases in longer-term interest 

rates positively impacting the value of the company’s risk management derivatives, compared with 

fair value losses in the third quarter of 2015

• The increase in fourth quarter 2015 net income was partially offset by a provision for credit losses 

due primarily to an increase in mortgage interest rates, a slight decline in home prices, and the 

redesignation of certain nonperforming loans from held-for-investment to held-for-sale, compared 

with a benefit for credit losses in the third quarter of 2015
Fourth Quarter and Full Year 2015 Results 3

SUMMARY OF FOURTH QUARTER AND FULL YEAR 2015 RESULTS

(Dollars in millions) 4Q15 3Q15 Variance 2015 2014 Variance

Net interest income $ 5,077 $ 5,588 $ (511) $ 21,409 $ 19,968 $ 1,441

Fee and other income 225 259 (34) 1,348 5,887 (4,539)

Net revenues 5,302 5,847 (545) 22,757 25,855 (3,098)

Investment gains, net 181 299 (118) 1,336 936 400

Fair value gains (losses), net 135 (2,589) 2,724 (1,767) (4,833) 3,066

Administrative expenses (686) (952) 266 (3,050) (2,777) (273)

Credit-related income (expense)

Benefit (provision) for credit losses (255) 1,550 (1,805) 795 3,964 (3,169)

Foreclosed property expense (477) (497) 20 (1,629) (142) (1,487)

Total credit-related income (expense) (732) 1,053 (1,785) (834) 3,822 (4,656)

Temporary Payroll Tax Cut Continuation Act of

2011 (“TCCA”) fees (429) (413) (16) (1,621) (1,375) (246)

Other expenses, net (201) (215) 14 (613) (478) (135)

Income before federal income taxes 3,570 3,030 540 16,208 21,150 (4,942)

Provision for federal income taxes (1,103) (1,070) (33) (5,253) (6,941) 1,688

Net income 2,467 1,960 507 10,955 14,209 (3,254)

Less: Net income attributable to the noncontrolling

interest (1) — (1) (1) (1) —

Net income attributable to Fannie Mae $ 2,466 $ 1,960 $ 506 $ 10,954 $ 14,208 $ (3,254)

Total comprehensive income attributable to Fannie

Mae $ 2,260 $ 2,213 $ 47 $ 10,628 $ 14,738 $ (4,110)

Dividends distributed or available for distribution to

senior preferred stockholder $ (2,859) $ (2,202) $ (657) $ (11,216) $ (15,323) $ 4,107

Net revenues, which consist of net interest income and fee and other income, were $5.3 billion for the 

fourth quarter of 2015, compared with $5.8 billion for the third quarter of 2015. For the year, net revenues 

were $22.8 billion, compared with $25.9 billion in 2014. The decline in net revenues in 2015 was driven 

by a decline in fee and other income, partially offset by an increase in net interest income.

Net interest income, which includes guaranty fee revenue, was $5.1 billion for the fourth quarter of 2015, 

compared with $5.6 billion for the third quarter of 2015. For the year, net interest income was $21.4 

billion for 2015, compared with $20.0 billion for 2014. The increase in net interest income in 2015 

compared with 2014 was due primarily to an increase in loan prepayment activity in 2015 as a result of a 

lower interest rate environment in the first half of the year. 

An increasing portion of Fannie Mae’s net interest income in recent years has been derived from guaranty 

fees rather than from interest income earned on the company’s retained mortgage portfolio assets. This is a 

result of both the impact of guaranty fee increases implemented in 2012 and the reduction of the retained 

mortgage portfolio. In 2015, approximately two-thirds of the company’s net interest income was derived 

from its guaranty business. The company expects that guaranty fees will continue to account for an 

increasing portion of its net interest income.
Fourth Quarter and Full Year 2015 Results 4

Fee and other income was $225 million for the fourth quarter of 2015, compared with $259 million for the 

third quarter of 2015. For the year, fee and other income was $1.3 billion for 2015, compared with $5.9 

billion for 2014. Fee and other income decreased in 2015 compared with 2014 due primarily to higher 

revenue recognized in 2014 as a result of settlement agreements resolving certain lawsuits relating to 

private-label mortgage-related securities sold to Fannie Mae. 

Net fair value gains were $135 million in the fourth quarter of 2015, compared with losses of $2.6 billion

in the third quarter of 2015. Net fair value gains in the fourth quarter of 2015 were due primarily to 

increases in longer-term interest rates positively impacting the value of the company’s risk management 

derivatives. For the year, net fair value losses were $1.8 billion, compared with losses of $4.8 billion in 

2014. The company recorded net fair value losses for the year due primarily to declines in longer-term 

interest rates negatively impacting the value of the company’s risk management derivatives. The estimated 

fair value of the company’s derivatives and securities may fluctuate substantially from period to period 

because of changes in interest rates, the yield curve, mortgage and credit spreads, implied volatility, and 

activity related to these financial instruments.

Credit-related expense, which consists of a provision or benefit for credit losses and foreclosed property 

expense or income, was $732 million in the fourth quarter of 2015, compared with credit-related income 

of $1.1 billion in the third quarter of 2015. Credit-related expense in the fourth quarter was due primarily 

to a provision for credit losses driven by an increase in mortgage interest rates, a slight decline in home 

prices, and the redesignation of certain nonperforming loans from held-for-investment to held-for-sale in 

connection with the company’s plans to sell these loans, which resulted in the company adjusting these 

loans to the lower of their cost or fair value. 
Fourth Quarter and Full Year 2015 Results 5

For the year, credit-related expense was $834 million, compared with credit-related income of $3.8 billion

in 2014. This shift was driven primarily by a lower benefit for credit losses and higher foreclosed property 

expense in 2015. The reduction in the company’s benefit for credit losses in 2015 as compared with 2014 

was driven primarily by decreases in mortgage interest rates in 2014, which decreased the impairment on 

the company’s individually impaired loans related to concessions provided on its modified loans and 

resulted in an increase in the benefit for credit losses in 2014. Changes in interest rates were not a primary 

driver of our 2015 benefit for credit losses. In addition, although home prices increased in both 2014 and 

2015, home price increases had a smaller impact on the benefit for credit losses in 2015 compared with 

2014, due primarily to the smaller number of nonperforming loans held for investment in the company’s 

guaranty book of business in 2015 as compared with 2014. Also contributing to the lower benefit for 

credit losses in 2015 was the company’s redesignation of certain nonperforming single-family loans from 

held-for-investment to held-for-sale in connection with its plans to sell these loans. 

Foreclosed property expense increased in 2015 compared with 2014 due primarily to higher operating 

expenses relating to property tax and insurance costs on the company’s single-family foreclosed properties 

and a decrease in the amount of income from the resolution of compensatory fees and representation and 

warranty matters. 

VARIABILITY OF FINANCIAL RESULTS 

Fannie Mae expects to remain profitable on an annual basis for the foreseeable future; however, certain 

factors, such as changes in interest rates or home prices, could result in significant volatility in our 

financial results from quarter to quarter and year to year. Fannie Mae’s future financial results also will be 

affected by a number of other factors, including: the company’s guaranty fee rates; the volume of singlefamily mortgage originations in the future; the size, composition, and quality of its retained mortgage 

portfolio and guaranty book of business; and economic and housing market conditions. The company’s 

expectations for its future financial results do not take into account the impact on its business of potential 

future legislative or regulatory changes, which could have a material impact on the company’s financial 

results, particularly the enactment of housing finance reform legislation. For additional information on 

factors that affect the company’s financial results, please refer to “Executive Summary” in the company’s 

annual report on Form 10-K for the year ended December 31, 2015 (the “2015 Form 10-K”).

SUMMARY OF FOURTH QUARTER AND FULL YEAR 2015 BUSINESS SEGMENT RESULTS

The business groups running Fannie Mae’s three reporting segments – its Single-Family business, its 

Multifamily business, and its Capital Markets group – engage in complementary business activities in 
Fourth Quarter and Full Year 2015 Results 6

pursuing Fannie Mae’s vision to be America’s most valued housing partner and to provide liquidity, access 

to credit and affordability in all U.S. housing markets at all times, while effectively managing and 

reducing risk to Fannie Mae’s business, taxpayers, and the housing finance system. In support of this 

vision, Fannie Mae is focused on: advancing a sustainable and reliable business model that reduces risk to 

the housing finance system and taxpayers; providing reliable, large-scale access to affordable mortgage 

credit for qualified borrowers and helping struggling homeowners; and serving customer needs and 

improving the company’s business efficiency.

(Dollars in millions) 4Q15 3Q15 Variance 2015 2014 Variance

Single-Family Segment:

Guaranty fee income $ 3,199 $ 3,145 $ 54 $ 12,476 $11,702 $ 774

Credit-related income (expense) (819) 1,029 (1,848) (1,035) 3,625 (4,660)

TCCA fees (429) (413) (16) (1,621) (1,375) (246)

Other (564) (682) 118 (2,197) (1,977) (220)

Income before federal income taxes 1,387 3,079 (1,692) 7,623 11,975 (4,352)

Provision for federal income taxes (451) (1,040) 589 (2,491) (3,496) 1,005

Net income $ 936 $ 2,039 $ (1,103) $ 5,132 $ 8,479 $ (3,347)

Multifamily Segment:

Guaranty fee income $ 375 $ 367 $ 8 $ 1,439 $ 1,297 $ 142

Credit-related income 87 24 63 201 197 4

Other (9) (50) 41 114 127 (13)

Income before federal income taxes 453 341 112 1,754 1,621 133

Provision for federal income taxes (119) (17) (102) (247) (158) (89)

Net income $ 334 $ 324 $ 10 $ 1,507 $ 1,463 $ 44

Capital Markets Segment:

Net interest income $ 1,312 $ 1,401 $ (89) $ 5,828 $ 7,243 $ (1,415)

Investment gains, net 860 1,608 (748) 5,539 6,378 (839)

Fair value gains (losses), net 63 (2,697) 2,760 (2,049) (5,476) 3,427

Other (444) (322) (122) (1,319) 3,256 (4,575)

Income (loss) before federal income taxes 1,791 (10) 1,801 7,999 11,401 (3,402)

Provision for federal income taxes (533) (13) (520) (2,515) (3,287) 772

Net income (loss) $ 1,258 $ (23) $ 1,281 $ 5,484 $ 8,114 $ (2,630)

Single-Family Business

• Single-Family net income was $936 million in the fourth quarter of 2015, compared with $2.0 

billion in the third quarter of 2015. The decrease in net income in the fourth quarter compared to 

the third quarter was driven by a shift to credit-related expense in the fourth quarter from creditrelated income in the third quarter. For the year, the Single-Family business had net income of $5.1 

billion, compared with $8.5 billion in 2014. The decrease in annual net income was driven by a 

shift to credit-related expense in 2015 from credit-related income in 2014.

• Single-Family guaranty fee income was $12.5 billion in 2015, compared with $11.7 billion in 

2014. Single-Family guaranty fee income increased in 2015 compared with 2014 as loans with 

higher guaranty fees became a larger part of the company’s Single-Family guaranty book of 
Fourth Quarter and Full Year 2015 Results 7

business in 2015 due to the cumulative impact of guaranty fee price increases implemented in 

2012. The Single-Family guaranty book of business was $2.83 trillion as of December 31, 2015

and $2.85 trillion as of December 31, 2014.

• Single-Family credit-related expense was $819 million in the fourth quarter of 2015, compared 

with credit-related income of $1.0 billion in the third quarter of 2015. Credit-related expense in the 

fourth quarter was due primarily to a provision for credit losses. For the year, Single-Family creditrelated expense was $1.0 billion, compared with credit-related income of $3.6 billion in 2014. The 

shift to credit-related expense in 2015 was driven by a lower benefit for credit losses and higher 

foreclosed property expense. 

Multifamily Business

• Multifamily net income was $334 million in the fourth quarter of 2015, compared with $324 

million in the third quarter of 2015. The increase in net income in the fourth quarter compared to 

the third quarter was driven primarily by an increase in credit-related income. For the year, 

Multifamily net income was $1.5 billion for both 2015 and 2014.

• Multifamily guaranty fee income was $375 million for the fourth quarter of 2015, compared with 

$367 million for the third quarter of 2015. For the year, Multifamily guaranty fee income was $1.4 

billion in 2015 compared with $1.3 billion in 2014. Multifamily guaranty fee income increased in 

2015 compared with 2014 as loans with higher guaranty fees have become a larger part of the 

company’s Multifamily guaranty book of business, while loans with lower guaranty fees continue 

to liquidate. The Multifamily guaranty book of business was $213.4 billion as of December 31, 

2015 compared with $203.3 billion as of December 31, 2014.

• Multifamily credit-related income was $87 million for the fourth quarter of 2015, compared with 

$24 million for the third quarter of 2015. The increase in credit-related income in the fourth quarter 

compared to the third quarter was driven primarily by larger gains on the sale of REO properties. 

For the year, Multifamily credit-related income was $201 million compared with $197 million in 

2014. Credit-related income remained relatively consistent in 2015 compared with 2014 as both 

years were driven by gains on the disposition of REO properties and improvements in the 

allowance for loan losses as a result of continued stability of multifamily market fundamentals.

Capital Markets

• Capital Markets net income was $1.3 billion in the fourth quarter of 2015, compared with a net 

loss of $23 million in the third quarter of 2015. The shift to net income in the fourth quarter was 

driven primarily by fair value gains on the company’s risk management derivatives, compared with 

fair value losses in the prior quarter, partially offset by decreases in net investment gains and net 

interest income. The group had net income of $5.5 billion for the year, compared with $8.1 billion

for 2014. The decline in annual net income in 2015 was due primarily to a shift to other expense 

from other income and decreases in net interest income and net investment gains, partially offset 

by lower fair value losses.

• Capital Markets other expense was $444 million for the fourth quarter of 2015, compared with 

other expense of $322 million for the third quarter of 2015. For the year, Capital Markets other 

expense was $1.3 billion compared with other income of $3.3 billion in 2014. The shift to other 

expense in 2015 from other income in 2014 was due primarily to higher revenue recognized in 

2014 as a result of settlement agreements resolving certain lawsuits relating to private-label 

mortgage-related securities sold to Fannie Mae.
Fourth Quarter and Full Year 2015 Results 8

• Capital Markets net interest income was $1.3 billion for the fourth quarter of 2015, compared with 

$1.4 billion for the third quarter of 2015. For the year, Capital Markets net interest income was 

$5.8 billion compared with $7.2 billion in 2014. The decrease in annual net interest income in 

2015 was due primarily to a decline in the average balance of the company’s retained mortgage 

portfolio as the company continued to reduce this portfolio pursuant to the requirements of its 

senior preferred stock purchase agreement with Treasury and the Federal Housing Finance 

Agency’s (“FHFA”) additional portfolio cap. 

• Capital Markets net investment gains were $860 million in the fourth quarter of 2015, compared 

with $1.6 billion in the third quarter of 2015. For the year, Capital Markets net investment gains 

were $5.5 billion compared with $6.4 billion in 2014. Investment gains decreased in 2015 

compared with 2014 due primarily to lower gains on the sale of Fannie Mae MBS designated as 

available-for-sale securities as a result of an increase in interest rates in 2015. 

• Capital Markets net fair value gains were $63 million in the fourth quarter of 2015, compared with 

net fair value losses of $2.7 billion in the third quarter of 2015. Net fair value gains in the fourth 

quarter of 2015 were due primarily to increases in longer-term interest rates positively impacting 

the value of the company’s risk management derivatives. For the year, Capital Markets net fair 

value losses were $2.0 billion compared with fair value losses of $5.5 billion in 2014. The group 

recorded net fair value losses for the year due primarily to declines in longer-term interest rates 

negatively impacting the value of the company’s risk management derivatives. 

• Capital Markets retained mortgage portfolio balance decreased to $345.1 billion as of 

December 31, 2015, compared with $413.3 billion as of December 31, 2014, resulting from 

purchases of $252.2 billion and liquidations and sales of $320.4 billion during the year.

BUILDING A SUSTAINABLE HOUSING FINANCE SYSTEM

In addition to continuing to provide liquidity and support to the mortgage market, Fannie Mae has 

invested significant resources toward helping to maintain a safer and sustainable housing finance system 

for today and build a safer and sustainable housing finance system for the future. The company is pursuing 

the strategic goals identified by its conservator, the Federal Housing Finance Agency (“FHFA”). These 

strategic goals are: maintain, in a safe and sound manner, credit availability and foreclosure prevention 

activities for new and refinanced mortgages to foster liquid, efficient, competitive, and resilient national 

housing finance markets; reduce taxpayer risk through increasing the role of private capital in the 

mortgage market; and build a new single-family infrastructure for use by Fannie Mae and Freddie Mac

and adaptable for use by other participants in the secondary market in the future.

ABOUT FANNIE MAE’S CONSERVATORSHIP

Fannie Mae has operated under the conservatorship of FHFA since September 6, 2008. Fannie Mae has 

not received funds from Treasury since the first quarter of 2012. The funding the company has received 

under its senior preferred stock purchase agreement with Treasury has provided the company with the 

capital and liquidity needed to fulfill its mission of providing liquidity and support to the nation’s housing 

finance markets and to avoid a trigger of mandatory receivership under the Federal Housing Finance 

Regulatory Reform Act of 2008. For periods through December 31, 2015, Fannie Mae has requested 

cumulative draws totaling $116.1 billion and paid $144.8 billion in dividends to Treasury. Under the 

senior preferred stock purchase agreement, the payment of dividends does not offset prior draws. As a 

result, Treasury maintains a liquidation preference of $117.1 billion on the company’s senior preferred 

stock.
Fourth Quarter and Full Year 2015 Results 9

Treasury Draws and Dividend Payments

(1) Treasury draw requests are shown in the period for which requested and do not include the initial $1.0 billion liquidation preference 

of Fannie Mae’s senior preferred stock, for which Fannie Mae did not receive any cash proceeds. The payment of dividends does 

not offset prior Treasury draws.

(2) Fannie Mae expects to pay a dividend for the first quarter of 2016 calculated based on the company’s net worth of $4.1 billion as of 

December 31, 2015 less a capital reserve amount of $1.2 billion.

(3) Amounts may not sum due to rounding.

In August 2012, the terms governing the company’s dividend obligations on the senior preferred stock 

were amended. The amended senior preferred stock purchase agreement does not allow the company to 

build a capital reserve. Beginning in 2013, the required senior preferred stock dividends each quarter equal 

the amount, if any, by which the company’s net worth as of the end of the immediately preceding fiscal 

quarter exceeds an applicable capital reserve amount. The capital reserve amount is $1.2 billion for each 

quarter of 2016 and will be reduced by $600 million each year until it reaches zero in 2018. 

The amount of remaining funding available to Fannie Mae under the senior preferred stock purchase 

agreement with Treasury is currently $117.6 billion. If the company were to draw additional funds from 

Treasury under the agreement in a future period, the amount of remaining funding under the agreement 

would be reduced by the amount of the company’s draw. Dividend payments Fannie Mae makes to 

Treasury do not restore or increase the amount of funding available to the company under the agreement.

Fannie Mae is not permitted to redeem the senior preferred stock prior to the termination of Treasury’s 

funding commitment under the senior preferred stock purchase agreement. The limited circumstances 

under which Treasury’s funding commitment will terminate are described in “Business—Conservatorship 

and Treasury Agreements” in the company’s 2015 Form 10-K.

CREDIT RISK TRANSFER TRANSACTIONS

In late 2013, Fannie Mae began entering into credit risk transfer transactions with the goal of transferring, 

to the extent economically sensible, a portion of the existing mortgage credit risk on some of the recently 

acquired loans in its single-family book of business in order to reduce the economic risk to the company 

and taxpayers of future borrower defaults. Fannie Mae’s primary method of achieving this goal has been 

through the issuance of its Connecticut Avenue SecuritiesTM (CAS) and its Credit Insurance Risk 

TransferTM (CIRT

TM) transactions. 

These transactions transfer a portion of the mortgage credit risk associated with losses on specified 

reference pools of single-family mortgage loans to investors in CAS or to panels of reinsurers or insurers 
Fourth Quarter and Full Year 2015 Results 10

in CIRT transactions. As of December 31, 2015, the company had completed a total of nine CAS 

transactions since the CAS program began in 2013 and seven CIRT transactions since the CIRT program 

began in 2014. Approximately 15 percent of the loans in the company’s single-family conventional 

guaranty book of business as of December 31, 2015, measured by unpaid principal balance, were included 

in a reference pool for a CAS or CIRT transaction. The company also has executed other types of risk 

sharing transactions in addition to its CAS and CIRT transactions, including structures that transfer first 

loss risk. In the aggregate, Fannie Mae’s credit risk transfer transactions completed through year end 2015 

transferred a significant portion of the mortgage credit risk on single-family mortgages with an unpaid 

principal balance of over $500 billion. 

Fannie Mae has transferred a significant portion of the mortgage credit risk on over 95 percent of the 

single-family loans it acquired during the twelve months ended November 2014 in its targeted loan 

categories for its credit risk transfer transactions. Loan categories the company has targeted for credit risk 

transfer transactions generally consist of fixed-rate 30-year single-family conventional loans that meet 

certain credit performance characteristics, are non-Refi Plus, and have loan-to-value ratios between 60 

percent and 97 percent. Based on their characteristics at the time the company acquired them, over 50 

percent of the single-family loans the company acquired during the twelve months ended November 2014 

were included in loan categories the company has targeted for credit risk transfer transactions. The portion 

of the company’s single-family loan acquisitions it includes in credit risk transfer transactions can vary 

from period to period based on market conditions and other factors.

These transactions increase the role of private capital in the mortgage market and reduce the risk to Fannie 

Mae’s business, taxpayers, and the housing finance system. The company intends to continue to engage in 

credit risk transfer transactions on an ongoing basis, subject to market conditions. Over time, the company 

expects that a larger portion of its single-family conventional guaranty book of business will be covered 

by credit risk transfer transactions. 

CREDIT QUALITY

While continuing to make it possible for families to buy, refinance, or rent homes, Fannie Mae has 

maintained responsible credit standards. Since 2009, Fannie Mae has seen the effect of the actions it took, 

beginning in 2008, to significantly strengthen its underwriting and eligibility standards to promote 

sustainable homeownership and stability in the housing market. Fannie Mae actively monitors the credit 

risk profile and credit performance of the company’s single-family loan acquisitions, in conjunction with 

housing market and economic conditions, to determine if its pricing, eligibility, and underwriting criteria 

accurately reflects the risks associated with loans the company acquires or guarantees. Single-family 

conventional loans acquired by Fannie Mae in 2015 had a weighted average borrower FICO credit score at 

origination of 748 and a weighted average original loan-to-value ratio of 75 percent.

Fannie Mae’s single-family conventional guaranty book of business as of December 31, 2015 consisted of 

single-family loans acquired prior to 2009; non-Refi PlusTM loans acquired beginning in 2009; loans 

acquired through the Administration’s Home Affordable Refinance Program® (“HARP®”); and other loans 

acquired pursuant to the company’s Refi Plusinitiative, excluding HARP loans. The company’s Refi Plus 

initiative, which started in April 2009 and includes HARP, provides expanded refinance opportunities for 

eligible Fannie Mae borrowers, and may involve the refinance of existing Fannie Mae loans with high 

loan-to-value ratios, including loans with loan-to-value ratios in excess of 100 percent.
Fourth Quarter and Full Year 2015 Results 11

The single-family serious delinquency rate for Fannie Mae’s book of business has declined for 23 

consecutive quarters since the first quarter of 2010, and was 1.55 percent as of December 31, 2015, 

compared with 5.47 percent as of March 31, 2010. This decrease is primarily the result of home retention 

solutions, foreclosure alternatives and completed foreclosures, improved loan payment performance, and 

the company’s acquisition of loans with stronger credit profiles since the beginning of 2009. The 

company’s single-family serious delinquency rate and the period of time that loans remain seriously 

delinquent continue to be negatively impacted by the length of time required to complete a foreclosure in 

some states. Longer foreclosure timelines result in these loans remaining in the company’s book of 

business for a longer time, which has caused the company’s serious delinquency rate to decrease more 

slowly in the last few years than it would have if the pace of foreclosures had been faster. The slow pace 

of foreclosures in certain areas of the country has negatively affected the company’s single-family serious 

delinquency rates, foreclosure timelines, and financial results, and may continue to do so. Other factors 

such as the pace of loan modifications, the timing and volume of future nonperforming loan sales the 

company makes, servicer performance, changes in home prices, unemployment levels, and other 

macroeconomic conditions also influence serious delinquency rates.

Total Loss Reserves, which reflect the company’s estimate of the probable losses the company has 

incurred in its guaranty book of business, including concessions it granted borrowers upon modification of 

their loans, decreased to $28.8 billion as of December 31, 2015 from $38.2 billion as of December 31, 

2014. The decrease in the company’s total loss reserves during 2015 was primarily driven by the 

company’s approach to adopting the charge-off provisions of FHFA’s Advisory Bulletin AB 2012-12; the 
Fourth Quarter and Full Year 2015 Results 12

change in the company’s accounting policy related to the treatment of accrued interest receivable; 

improvement in home prices; liquidations of mortgage loans; and the company’s redesignation of certain 

nonperforming single-family loans from held-for-investment to held-for-sale, which relieved the 

allowance on these loans. The company’s loss reserves have declined substantially from their peak and are 

expected to decline further. 

PROVIDING LIQUIDITY AND SUPPORT TO THE MARKET

Liquidity

Fannie Mae provided approximately $516 billion in liquidity to the mortgage market in 2015, including 

approximately $116 billion in liquidity in the fourth quarter of 2015, through its purchases and guarantees 

of loans, which resulted in:

• 954,000 home purchases in 2015, including approximately 238,000 in the fourth quarter of 2015

• 1,188,000 mortgage refinancings in 2015, including approximately 249,000 in the fourth quarter of 

2015

• 569,000 units of multifamily housing in 2015, including approximately 136,000 in the fourth

quarter of 2015
Fourth Quarter and Full Year 2015 Results 13

The company was one of the largest single issuers of single-family mortgage-related securities in the 

secondary market in the fourth quarter and full year of 2015, with an estimated market share of new 

single-family mortgage-related securities issuances of 36 percent in the fourth quarter and 37 percent for 

all of 2015, compared with 40 percent for all of 2014. The company’s market share for single-family 

mortgage-related securities issuances decreased in 2015 compared with 2014 primarily as a result of 

competition from Ginnie Mae.

Fannie Mae also remained a continuous source of liquidity in the multifamily market in 2015. As of 

September 30, 2015 (the latest date for which information is available), the company owned or guaranteed 

approximately 19 percent of the outstanding debt on multifamily properties.

Refinancing Initiatives

Through the company’s Refi Plusinitiative, which offers refinancing flexibility to eligible Fannie Mae 

borrowers and includes HARP, the company acquired approximately 40,000 loans in the fourth quarter of 

2015 and approximately 198,000 loans for the full year of 2015. Refinancings delivered to Fannie Mae 

through Refi Plus in the fourth quarter of 2015 reduced borrowers’ monthly mortgage payments by an 

average of $191. The company expects the volume of refinancings under HARP to continue to decline, 

due to a decrease in the population of borrowers with loans that have high LTV ratios who are willing to 

refinance and would benefit from refinancing.
Fourth Quarter and Full Year 2015 Results 14

Home Retention Solutions and Foreclosure Alternatives

To reduce the credit losses Fannie Mae ultimately incurs on its book of business, the company has been 

focusing its efforts on several strategies, including reducing defaults by offering home retention solutions, 

such as loan modifications. 

For the Year Ended December 31,

2015 2014 2013

Unpaid

Principal

Balance

Number

of Loans

Unpaid

Principal

Balance

Number

of Loans

Unpaid

Principal

Balance

Number

of Loans

(Dollars in millions)

Home retention solutions:

Modifications $ 15,723 94,212 $ 20,686 122,823 $ 28,801 160,007

Repayment plans and forbearances completed 835 5,996 986 7,309 1,594 12,022

Total home retention solutions 16,558 100,208 21,672 130,132 30,395 172,029

Foreclosure alternatives:

Short sales 3,033 14,716 4,795 23,188 9,786 46,570

Deeds-in-lieu of foreclosure 1,145 7,361 1,786 11,292 2,504 15,379

Total foreclosure alternatives 4,178 22,077 6,581 34,480 12,290 61,949

Total loan workouts $ 20,736 122,285 $ 28,253 164,612 $ 42,685 233,978

Loan workouts as a percentage of single-family guaranty book of business 0.73% 0.71% 0.99% 0.94% 1.48% 1.33%

Fannie Mae views foreclosure as a last resort. For homeowners and communities in need, the company 

offers alternatives to foreclosure. In dealing with homeowners in distress, the company first seeks home 

retention solutions, which enable borrowers to stay in their homes, before turning to foreclosure 

alternatives.

• Fannie Mae provided approximately 25,000 loan workouts during the fourth quarter of 2015 and 

approximately 122,000 for the full year of 2015 enabling borrowers to avoid foreclosure.

• Fannie Mae completed approximately 19,000 loan modifications during the fourth quarter of 2015

and approximately 94,000 for the full year of 2015.
Fourth Quarter and Full Year 2015 Results 15

FORECLOSURES AND REO

When there is no viable home retention solution or foreclosure alternative that can be applied, the 

company seeks to move to foreclosure expeditiously in an effort to minimize prolonged delinquencies that 

can hurt local home values and destabilize communities.

For the Year Ended December 31,

2015 2014 2013

Single-family foreclosed properties (number of properties):

Beginning of period inventory of single-family foreclosed properties (REO) 87,063 103,229 105,666

Total properties acquired through foreclosure 78,636 116,637 144,384

Dispositions of REO (108,446) (132,803) (146,821)

End of period inventory of single-family foreclosed properties (REO) 57,253 87,063 103,229

Carrying value of single-family foreclosed properties (dollars in millions) $ 6,608 $ 9,745 $ 10,334

Single-family foreclosure rate 0.45 % 0.67 % 0.82 %

• Fannie Mae acquired 16,750 single-family REO properties, primarily through foreclosure, in the 

fourth quarter of 2015, compared with 17,725 in the third quarter of 2015. 

• As of December 31, 2015, the company’s inventory of single-family REO properties was 57,253, 

compared with 60,958 as of September 30, 2015. The carrying value of the company’s singlefamily REO was $6.6 billion as of December 31, 2015.

• The company’s single-family foreclosure rate was 0.45 percent for the full year of 2015. This 

reflects the total number of single-family properties acquired through foreclosure or deeds-in-lieu 

of foreclosure as a percentage of the total number of loans in Fannie Mae’s single-family guaranty 

book of business.

Fannie Mae’s financial statements for the full year of 2015 are available in the accompanying Annex; 

however, investors and interested parties should read the company’s 2015 Form 10-K, which was filed 

today with the Securities and Exchange Commission and is available on Fannie Mae’s website, 

www.fanniemae.com. The company provides further discussion of its financial results and condition, 

credit performance, and other matters in its 2015 Form 10-K. Additional information about the company’s 

credit performance, the characteristics of its guaranty book of business, its foreclosure-prevention efforts, 

and other measures is contained in the “2015 Credit Supplement” at www.fanniemae.com.

# # #

In this release, the company has presented a number of estimates, forecasts, expectations, and other forward-looking statements, including 

statements regarding: its future dividend payments to Treasury; the impact of and future plans with respect to the company’s credit risk 

transfer transactions; the sources of its future net interest income; the company’s future profitability; the factors that will affect the company’s 

future financial results; the factors that will affect the company’s future single-family serious delinquency rates; the future volume of its HARP

refinancings; the future fair value of the company’s financial instruments; the company’s future loss reserves; and the impact of the company’s 

actions to reduce credit losses. These estimates, forecasts, expectations, and statements are forward-looking statements based on the 

company’s current assumptions regarding numerous factors, including future interest rates and home prices, the future performance of its 

loans and the future guaranty fee rates applicable to the loans the company acquires. Actual results, and future projections, could be 

materially different from what is set forth in the forward-looking statements as a result of: home price changes; interest rate changes; 

unemployment rates; other macroeconomic and housing market variables; the company’s future serious delinquency rates; the company’s 

future guaranty fee pricing and the impact of that pricing on the company’s guaranty fee revenues and competitive environment; government 

policy; credit availability; changes in borrower behavior, including increases in the number of underwater borrowers who strategically 
Fourth Quarter and Full Year 2015 Results 16

default on their mortgage loans; the volume of loans it modifies; the effectiveness of its loss mitigation strategies; significant changes in 

modification and foreclosure activity; the volume and pace of future nonperforming loan sales and their impact on the company’s results and 

serious delinquency rates; the effectiveness of its management of its real estate owned inventory and pursuit of contractual remedies; changes 

in the fair value of its assets and liabilities; future legislative or regulatory requirements or changes that have a significant impact on the 

company’s business, such as the enactment of housing finance reform legislation; future updates to the company’s models relating to loss 

reserves, including the assumptions used by these models; changes in generally accepted accounting principles; changes to the company’s 

accounting policies; whether the company’s counterparties meet their obligations in full; effects from activities the company takes to support 

the mortgage market and help borrowers; the company’s future objectives and activities in support of those objectives, including actions the 

company may take to reach additional underserved creditworthy borrowers; actions the company may be required to take by FHFA, in its role 

as its conservator or as its regulator, such as changes in the type of business the company does, a requirement that the company implement a 

principal forgiveness program or the implementation of a single GSE security; limitations on our business imposed by FHFA, in its role as the 

company’s conservator or as its regulator; the conservatorship and its effect on the company’s business; the investment by Treasury and its 

effect on the company’s business; the uncertainty of the company’s future; challenges the company faces in retaining and hiring qualified 

employees; the deteriorated credit performance of many loans in the company’s guaranty book of business; a decrease in the company’s credit 

ratings; defaults by one or more institutional counterparties; resolution or settlement agreements the company may enter into with its 

counterparties; operational control weaknesses; changes in the fiscal and monetary policies of the Federal Reserve, including any change in 

the Federal Reserve’s policy toward the reinvestment of principal payments of mortgage-backed securities or any future sales of such 

securities; changes in the structure and regulation of the financial services industry; the company’s ability to access the debt markets; 

disruptions in the housing, credit, and stock markets; government investigations and litigation; the company’s reliance on and the 

performance of the company’s servicers; conditions in the foreclosure environment; global political risks; natural disasters, environmental 

disasters, terrorist attacks, pandemics, or other major disruptive events; information security breaches; and many other factors, including 

those discussed in the “Risk Factors” section of and elsewhere in the company’s annual report on Form 10-K for the year ended December 

31, 2015, and elsewhere in this release.

Fannie Mae provides Web site addresses in its news releases solely for readers’ information. Other content or information appearing on these 

Web sites is not part of this release. 

Fannie Mae enables people to buy, refinance, or rent homes.

Visit us at: www.fanniemae.com/progress

Follow us on Twitter: http://twitter.com/FannieMae
Fourth Quarter and Full Year 2015 Results 17

ANNEX

FANNIE MAE

(In conservatorship)

Consolidated Balance Sheets

(Dollars in millions, except share amounts)

As of December 31,

2015 2014

ASSETS

Cash and cash equivalents $ 14,674 $ 22,023

Restricted cash (includes $25,865 and $27,515, respectively, related to consolidated trusts) 30,879 32,542

Federal funds sold and securities purchased under agreements to resell or similar arrangements 27,350 30,950

Investments in securities:

Trading, at fair value 39,908 31,504

Available-for-sale, at fair value (includes $285 and $596, respectively, related to consolidated trusts) 20,230 30,654

Total investments in securities 60,138 62,158

Mortgage loans:

Loans held for sale, at lower of cost or fair value 5,361 331

Loans held for investment, at amortized cost:

Of Fannie Mae 233,054 272,360

Of consolidated trusts 2,809,180 2,782,344

Total loans held for investment (includes $14,075 and $15,629, respectively, at fair value) 3,042,234 3,054,704

Allowance for loan losses (27,951) (35,541)

Total loans held for investment, net of allowance 3,014,283 3,019,163

Total mortgage loans 3,019,644 3,019,494

Deferred tax assets, net 37,187 42,206

Accrued interest receivable, net (includes $6,974 and $7,169, respectively, related to consolidated trusts) 7,726 8,193

Acquired property, net 6,766 10,618

Other assets 17,553 19,992

Total assets $ 3,221,917 $ 3,248,176

LIABILITIES AND EQUITY

Liabilities:

Accrued interest payable (includes $8,194 and $8,282, respectively, related to consolidated trusts) $ 9,794 $ 10,232

Debt:

Of Fannie Mae (includes $11,133 and $6,403, respectively, at fair value) 386,135 460,443

Of consolidated trusts (includes $23,609 and $19,483, respectively, at fair value) 2,811,536 2,761,712

Other liabilities (includes $448 and $503, respectively, related to consolidated trusts) 10,393 12,069

Total liabilities 3,217,858 3,244,456

Commitments and contingencies — —

Fannie Mae stockholders’ equity:

Senior preferred stock, 1,000,000 shares issued and outstanding 117,149 117,149

Preferred stock, 700,000,000 shares are authorized— 555,374,922 shares issued and outstanding 19,130 19,130

Common stock, no par value, no maximum authorization—1,308,762,703 shares issued and 1,158,082,750 shares

outstanding 687 687

Accumulated deficit (126,942) (127,618)

Accumulated other comprehensive income 1,407 1,733

Treasury stock, at cost, 150,679,953 shares (7,401) (7,401)

Total Fannie Mae stockholders’ equity 4,030 3,680

Noncontrolling interest 29 40

Total equity 4,059 3,720

Total liabilities and equity $ 3,221,917 $ 3,248,176

See Notes to Consolidated Financial Statements in 2015 Form 10-K
Fourth Quarter and Full Year 2015 Results 18

FANNIE MAE

(In conservatorship)

Consolidated Statements of Operations and Comprehensive Income

(Dollars and shares in millions, except per share amounts)

For the Year Ended December 31,

2015 2014 2013

Interest income:

Trading securities $ 444 $ 553 $ 779

Available-for-sale securities 1,156 1,622 2,357

Mortgage loans (includes $97,971, $101,835 and $101,448, respectively, related to consolidated trusts) 107,699 112,120 114,238

Other 143 110 175

Total interest income 109,442 114,405 117,549

Interest expense:

Short-term debt 146 94 131

Long-term debt (includes $80,326, $85,835 and $84,751, respectively, related to consolidated trusts) 87,887 94,343 95,014

Total interest expense 88,033 94,437 95,145

Net interest income 21,409 19,968 22,404

Benefit for credit losses 795 3,964 8,949

Net interest income after benefit for credit losses 22,204 23,932 31,353

Investment gains, net 1,336 936 1,127

Fair value gains (losses), net (1,767) (4,833) 2,959

Fee and other income 1,348 5,887 3,930

Non-interest income 917 1,990 8,016

Administrative expenses:

Salaries and employee benefits 1,319 1,321 1,218

Professional services 984 1,076 910

Occupancy expenses 182 203 189

Other administrative expenses 565 177 228

Total administrative expenses 3,050 2,777 2,545

Foreclosed property expense (income) 1,629 142 (2,839)

Temporary Payroll Cut Continuation Act of 2011 (“TCCA”) fees 1,621 1,375 1,001

Other expenses, net 613 478 95

Total expenses 6,913 4,772 802

Income before federal income taxes 16,208 21,150 38,567

Benefit (provision) for federal income taxes (5,253) (6,941) 45,415

Net income 10,955 14,209 83,982

Other comprehensive income (loss):

Changes in unrealized gains on available-for-sale securities, net of reclassification adjustments and taxes (763) 494 693

Other 437 36 126

Total other comprehensive income (loss) (326) 530 819

Total comprehensive income 10,629 14,739 84,801

Less: Comprehensive income attributable to noncontrolling interest (1) (1) (19)

Total comprehensive income attributable to Fannie Mae $ 10,628 $ 14,738 $ 84,782

Net income $ 10,955 $ 14,209 $ 83,982

Less: Net income attributable to noncontrolling interest (1) (1) (19)

Net income attributable to Fannie Mae $ 10,954 $ 14,208 $ 83,963

Dividends distributed or available for distribution to senior preferred stockholder (11,216) (15,323) (85,419)

Net loss attributable to common stockholders $ (262) $ (1,115) $ (1,456)

Loss per share: Basic and Diluted $ (0.05) $ (0.19) $ (0.25)

Weighted-average common shares outstanding: Basic and Diluted 5,762 5,762 5,762

See Notes to Consolidated Financial Statements in 2015 Form 10-K
Fourth Quarter and Full Year 2015 Results 19

FANNIE MAE

(In conservatorship)

 Consolidated Statements of Cash Flows

(Dollars in millions)

For the Year Ended December 31,

2015 2014 2013

Cash flows provided by (used in) operating activities:

Net income $ 10,955 $ 14,209 $ 83,982

Reconciliation of net income to net cash provided by (used in) operating activities:

Amortization of cost basis adjustments (6,298) (4,265) (5,104)

Benefit for credit losses (795) (3,964) (8,949)

Valuation gains (510) (2,159) (2)

Current and deferred federal income taxes 4,083 4,126 (47,766)

Net change in trading securities (10,153) (2,666) 1,575

Net gains related to the disposition of acquired property and preforeclosure sales, including credit

enhancements (3,055) (4,510) (6,024)

Other, net (900) (2,109) (4,809)

Net cash provided by (used in) operating activities (6,673) (1,338) 12,903

Cash flows provided by investing activities:

Purchases of trading securities held for investment — — (7,521)

Proceeds from maturities and paydowns of trading securities held for investment 768 1,358 2,491

Proceeds from sales of trading securities held for investment 1,104 1,668 14,585

Proceeds from maturities and paydowns of available-for-sale securities 4,394 5,853 10,116

Proceeds from sales of available-for-sale securities 8,249 3,265 15,497

Purchases of loans held for investment (187,194) (132,650) (195,386)

Proceeds from repayments of loans acquired as held for investment of Fannie Mae 25,776 24,840 47,628

Proceeds from sales of loans acquired as held for investment of Fannie Mae 3,196 1,879 1,247

Proceeds from repayments and sales of loans acquired as held for investment of consolidated trusts 484,230 388,348 631,088

Net change in restricted cash 1,663 (3,547) 38,924

Advances to lenders (118,746) (100,045) (139,162)

Proceeds from disposition of acquired property and preforeclosure sales 20,757 25,476 38,349

Net change in federal funds sold and securities purchased under agreements to resell or similar arrangements 3,600 8,025 (6,475)

Other, net 527 197 1,373

Net cash provided by investing activities 248,324 224,667 452,754

Cash flows used in financing activities:

Proceeds from issuance of debt of Fannie Mae 443,371 380,282 372,361

Payments to redeem debt of Fannie Mae (518,575) (450,140) (459,745)

Proceeds from issuance of debt of consolidated trusts 347,614 275,353 409,979

Payments to redeem debt of consolidated trusts (511,158) (405,505) (707,544)

Payments of cash dividends on senior preferred stock to Treasury (10,278) (20,594) (82,452)

Other, net 26 70 (145)

Net cash used in financing activities (249,000) (220,534) (467,546)

Net increase (decrease) in cash and cash equivalents (7,349) 2,795 (1,889)

Cash and cash equivalents at beginning of period 22,023 19,228 21,117

Cash and cash equivalents at end of period $ 14,674 $ 22,023 $ 19,228

Cash paid during the period for:

Interest $ 104,928 $ 108,667 $ 109,240

Income taxes 1,170 2,815 2,350

Non-cash activities:

Net mortgage loans acquired by assuming debt $ 220,168 $ 190,151 $ 433,007

Net transfers from mortgage loans of Fannie Mae to mortgage loans of consolidated trusts 175,104 113,611 179,097

Transfers from advances to lenders to loans held for investment of consolidated trusts 114,851 93,909 137,074

Net transfers from mortgage loans to acquired property 17,534 24,742 34,024

Transfers of mortgage loans from held for investment to held for sale 8,601 2,194 1,341

See Notes to Consolidated Financial Statements in 2015 Form 10-K
Fourth Quarter and Full Year 2015 Results 20

FANNIE MAE

(In conservatorship)

Consolidated Statements of Changes in Equity

(Dollars and shares in millions)

Fannie Mae Stockholders’ Equity

Shares Outstanding Senior

Preferred

Stock

Preferred

Stock

Common

Stock

Retained

Earnings

(Accumulated

Deficit)

Accumulated

Other

Comprehensive

Income (Loss)

Treasury

Stock

Non

Controlling

Interest

Total

Equity Senior

Preferred Preferred Common

Balance as of December 31, 2012 1 556 1,158 $117,149 $ 19,130 $ 687 $ (122,766) $ 384 $ (7,401) $ 41 $ 7,224

Change in investment in noncontrolling

interest — — — — — — — — — (10) (10)

Comprehensive income:

Net income — — — — — — 83,963 — — 19 83,982

Other comprehensive income, net of tax

effect:

Changes in net unrealized gains on 

available-for-sale securities (net 

of tax of $529) — — — — — — — 983 — — 983

Reclassification adjustment for gains 

included in net income (net of tax 

of $157) — — — — — — — (290) — — (290)

Prior service cost and actuarial gains, 

net of amortization for defined 

benefit plans (net of tax of $68) — — — — — — — 126 — — 126

Total comprehensive income 84,801

Senior preferred stock dividends — — — — — — (82,452) — — — (82,452)

Other — — — — — — 28 — — — 28

Balance as of December 31, 2013 1 556 1,158 117,149 19,130 687 (121,227) 1,203 (7,401) 50 9,591

Change in investment in noncontrolling

interest — — — — — — — — — (11) (11)

Comprehensive income:

Net income — — — — — — 14,208 — — 1 14,209

Other comprehensive income, net of tax

effect:

Changes in net unrealized gains on 

available-for-sale securities (net 

of tax of $389) — — — — — — — 722 — — 722

Reclassification adjustment for gains 

included in net income (net of tax 

of $123) — — — — — — — (228) — — (228)

Prior service cost and actuarial gains, 

net of amortization for defined 

benefit plans (net of tax of $20) — — — — — — — 36 — — 36

Total comprehensive income 14,739

Senior preferred stock dividends — — — — — — (20,594) — — — (20,594)

Other — — — — — — (5) — — — (5)

Balance as of December 31, 2014 1 556 1,158 117,149 19,130 687 (127,618) 1,733 (7,401) 40 3,720

Change in investment in noncontrolling

interest — — — — — — — — — (12) (12)

Comprehensive income:

Net income — — — — — — 10,954 — — 1 10,955

Other comprehensive income, net of tax

effect:

Changes in net unrealized gains on 

available-for-sale securities (net 

of tax of $151) — — — — — — — (280) — — (280)

Reclassification adjustment for gains 

included in net income (net of tax 

of $253) — — — — — — — (483) — — (483)

Prior service cost and actuarial losses, 

net of amortization for defined 

benefit plans and other, net of tax — — — — — — — 437 — — 437

Total comprehensive income 10,629

Senior preferred stock dividends — — — — — — (10,278) — — — (10,278)

Balance as of December 31, 2015 1 556 1,158 $117,149 $ 19,130 $ 687 $ (126,942) $ 1,407 $ (7,401) $ 29 $ 4,059

See Notes to Consolidated Financial Statements in 2015 Form 10-K