The company expects to pay a $938 million dividend to Treasury by June 30
Fannie Mae has reported first-quarter net income of $4.26 billion, compared with a net loss of $6.53 billion in the fourth quarter. Year over year, net income increased from $2.77 billion in the first quarter of 2017.
Fannie Mae said its first-quarter results reflect continued strong revenues. The quarter-over-quarter improvement in its net income was driven primarily by a $9.96 billion provision for federal income taxes in the fourth quarter that resulted from the enactment of the Tax Act. Additionally, Fannie Mae recorded net fair value gains of $1.05 billion during the first quarter.
Fannie Mae’s pretax income was $5.39 billion in the first quarter, up from the $4.96 billion in the prior quarter and the $4.16 billion the year-ago quarter.
“Our solid first quarter performance reflects the strength of our underlying business, the benefits of our business model, and our focus on customers,” President and CEO Timothy Mayopoulos said.
Fannie Mae had a net worth of $3.9 billion as of March 31, which reflects its comprehensive income of $3.9 billion for the first quarter and its receipt of $3.7 billion from Treasury to eliminate a net worth deficit as of Dec. 31. Fannie Mae said it expects to pay Treasury a dividend of $938 million for the second quarter by June 30.
