WASHINGTON - The Federal National Mortgage Association said Thursday that it had earned $572.6 million, up 8.9% from the year earlier period.

Earnings per share were $2.08, and increase of 17 cents over the year earlier period and 1 cent over the previous quarter.

Lawrence M. Small, Fannie Mae's president and chief operating officer, attributed the earnings growth from the preceding quarter to a $12.9 million increase in net interest income and a $23.4 million reduction in federal income tax expense.

These were partially offset by a $12.6 million decline in miscellaneous income and an $8 million pretax loss from the repurchase of debt.

The decline in taxes and miscellaneous income were due to a change in the way Fannie Mae accounts for affordable housing project investments.

Net interest income was $721.3 million in the second quarter, up from $720.1 million in the same period last year. Mortgage-backed securities guaranty fees were $266.6 million in the second quarter, down from $271.8 million in the same period last year.

Miscellaneous income was $21.8 million in the second quarter, down from $31.9 million in the same period last year.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.