Freddie Mac reported quarterly and full-year financial results for the year ended December 31, 2004.
The company reported net income of $2.8 billion in 2004, compared to $4.8 billion in 2003. Fair value of net assets attributable to common stockholders, net of tax effect, grew by $3.8 billion — to $26.7 billion — a 17 percent increase from year-end 2003, compared to growth of $4.6 billion, or 25 percent, in 2003. Freddie Mac’s regulatory minimum capital surplus is estimated at $10.8 billion at year-end 2004, with an estimated $3.5 billion in excess of the 30-percent target surplus set by the Office of Federal Housing Enterprise Oversight (OFHEO), the company’s federal safety and soundness regulator.
“Throughout 2004, and continuing today, we are making significant progress in accomplishing our top priorities: serving our mission; increasing market share; streamlining operations and seizing business opportunities; and returning to timely financial reporting,” said Richard F. Syron, Freddie Mac chairman and chief executive officer. “We accomplished a great deal in 2004, and I am particularly pleased that we met our commitment to the market to publish our 2004 financial results on our announced timeline.”
In 2004, Freddie Mac financed homes for more than 3.7 million families, and we have reported attaining all of our regulatory affordable housing goals for 2004. Our market share recovered to historic levels, as we forged new relationships with mortgage lenders and other key business partners.
“We are instilling in Freddie Mac a true sense of urgency to do more in 2005 to strengthen our business and serve our mission,” Syron said. “While today we are operating in a challenging, lower-growth environment, we believe that Freddie Mac will continue to produce value for both our investors and America’s families.”
“While 2004 held some significant challenges for our company, we begin 2005 with growing momentum,” said Eugene M. McQuade, Freddie Mac president and chief operating officer. “We maintained a strong balance sheet and increased our capital surplus position. We grew the fair value of net assets. We positioned ourselves to do more business with our lending customers. Our interest-rate and credit risk results remained impressive. And we took steps toward our goal of getting a better handle on our administrative expenses. We are well positioned to deliver long-term value to the market and our stockholders.”
murdok | Breaking eBusiness News
Your source for investigative ebusiness reporting and breaking news.
