Fannie Reports Record 2Q

Fannie Mae's earnings for the second quarter of 1998 were a record $848.0 million ($0.80 per common share), up from $824.2 million ($0.77 per share) in the first quarter of 1998, Fannie Mae has reported.Earnings for the second quarter of 1997 were $752.7 million ($0.69 per share). James A. Johnson, Fannie Mae's chairman and chief executive officer, attributed the results to record business volume, "strong growth" in fee income, and declines in credit losses. He said the results came "in spite of the expected decline in our net interest margin," which averaged 107 basis points in the second quarter, down from 114 bp in the first quarter. Net interest income was $1,031.5 million, compared with $1.035.9 million in the first quarter and $970.4 million in the second quarter of last year. The net mortgage portfolio totaled $349 billion at the end of the second quarter, compared with $327 billion at the end of the first quarter and $297 billion at the end of the second quarter of 1997. Fannie Mae president and chief operating officer Lawrence M. Small said Fannie Mae's fee and other income rose by $24.0 million between the first and second quarters as a result of increased multifamily and technology services fees and decreased operating losses from tax-advantaged investments. Fannie Mae's website address is http://www.fanniemae.com.