Fannie Mae reports net income close to $2 billion.

Position:NEWS ROOM - Federal National Mortgage Association - Financial report

For the first quarter of 2015, Fannie Mae reported $1.9 billion in net income and its chief executive officer (CEO) commented that the company expects to "remain profitable on an annual basis for the foreseeable future." [paragraph] Those positive comments from Timothy Mayopoulos were couched a tiny bit, as the CEO noted the short-term volatility of interest rates is making his job more complicated. [paragraph] In a press release announcing the first-quarter results, he said, "This was another quarter of strong financial performance. We continued to have solid revenues. While we experienced some interest-rate volatility again this quarter, we expect to remain profitable on an annual basis for the foreseeable future."

The phrasing he used--"on an annual basis"--does make one wonder whether there is a quarter he has in mind when profitability could be in question.

The company's first-quarter net income of $1.9 billion beat net income posted in last year's final quarter of $1.3 billion. Net income in this year's first quarter was better than in last year's fourth quarter "due primarily to lower fair value losses in the first quarter of 2015."

On the payments due to Treasury, the company will have to pay another $1.8 billion dividend to Treasury in June. Including that payment, Fannie Mae will have paid a total of $138.2 billion in dividends to Treasury. That compares with the total draws Treasury provided to the company since 2008 of $116.1 billion. That means so far the company has paid back $22.1 billion in excess of the draws it received.

The company noted that net interest income, which includes guaranty fee income, for the first quarter totaled $5.1 billion. A press release noted, "The company estimates that a majority of its net interest income in the...

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