Freddie Mac : Financial Results Supplement, 10/29/20

Third Quarter 2020 Financial Results Supplement

October 29, 2020

Financial Highlights

Net Income and Comprehensive Income

$ Billions

		$2.6	$2.4				$2.5	$2.4
$1.7	$1.8				$1.8	$1.9
				$0.6
				$0.2
3Q19	4Q19	1Q20	2Q20	3Q20

Net income

Comprehensive income

• Net income of $2.5 billion and comprehensive income of $2.4 billion, up $0.7 billion and $0.5 billion, respectively, from the prior quarter, driven by guarantee portfolio growth, higher upfront fee income recognition, and strong margins on Multifamily loan commitments.
• Provision for credit losses of $0.3 billion, reflecting both portfolio growth and stabilization of estimates of expected credit losses related to the COVID-19 pandemic.

Adjusted Net Interest Income

and Adjusted Guarantee Fee Income

$ Billions

		$2.5	$3.0	$3.0
$2.4	$2.4
$0.8	$0.7	$0.8	$0.4	$0.2
3Q19	4Q19	1Q20	2Q20	3Q20

Adjusted net interest income1

Adjusted guarantee fee income1

• Adjusted net interest income decreased from the prior quarter, primarily driven by higher loan prepayments that resulted in an increase in amortization expense, combined with a change in investment mix as the lower-yielding other investments portfolio represented a larger percentage of the total investments portfolio.
• Adjusted guarantee fee income remained relatively flat from the prior quarter as higher Single-Family guarantee fee income driven by portfolio growth and higher upfront fee income was largely offset by lower Multifamily guarantee fee income due to higher fair value losses on the guarantee asset.

Note: Totals may not add due to rounding.

© Freddie Mac

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Total Portfolio Balances

Total guarantee portfolio2

Portfolio balance highlights

$ Billions				11% YoY	▪	Total guarantee portfolio:
			increase
				$2,476
	$2,265	$2,295	$2,342		• Single-Family - grew $218 billion, or 11%, year-
$2,221	$297
$275	$281		over-year.
$260	$271
			• Multifamily - grew $37 billion, or 14%, year-over-
$1,961	$1,994	$2,020	$2,061	$2,179		year.
09/30/19	12/31/19	03/31/20	06/30/20	09/30/20	▪	Total investments portfolio:
	• Mortgage-related investments portfolio - decreased
						$23 billion, or 11%, year-over-year.

Single-Family credit guarantee portfolio

Multifamily guarantee portfolio3

Total investments portfolio	Total debt outstanding		Purchase Agreement
		4,6
$ Billions	$ Billions				Debt Cap $300B
			3.4
11% YoY	2.5	2.4	2.4	2.5
increase

$312	$316	$334	$349	$345		$274	$273	$288	$289	$287
$90	$103	$123	$155	$147		6%	6%	5%	5%	5%
	40%	37%	45%	45%	51%
					FHFA	38%	35%	30%	30%	41%
$222	$213	$211	$194	$198	Limit
$225B*	16%	22%	20%	20%
	3%
						09/30/19	12/31/19	03/31/20	06/30/20	09/30/20
09/30/19	12/31/19	03/31/20	06/30/20	09/30/20

						Discount notes		Callable debt
		Mortgage-related investments portfolio2,4			Non-callable debt		Other
		Other investments portfolio 5
					Weighted average maturity in years		© Freddie Mac	3
Note: Totals may not add due to rounding.

*In February 2019, FHFA instructed the company to maintain the mortgage-related investments portfolio at or below $225 billion at all times.

Percentage of Loans in Forbearance

Single-Family(7)

			2.95%
		2.34%
0.32%	0.29%
One Month	Two Months	Three	Total
		Months
		or More

Past Due

Multifamily(8)

	1.99%	2.21%
0.22%
Forbearance Period	Repayment Period	Total

Percentage of loans in the single-family guarantee portfolio that were both in forbearance and delinquent, by payment status as of September 30, 2020 (based on loan count).

Percentage of loans in the multifamily mortgage portfolio currently under a forbearance program (based on UPB).

© Freddie Mac

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