Earnings release
Page 1
Exhibit 99.1 Fannie Mae Earns $4.2 Billion in Net Income in Third Quarter 2026 • Provided $103 billion in liquidity, including financing for nearly 103,000 first-time homebuyers • Net worth reached $119.6 billion, up 3% quarter over quarter and 13% year over year • Illustrative return on average required CET1 capital increased to 11.1%, up from 10.8% in the second quarter of 2026 • 47% of single-family loans acquired went to low- and middle-income borrowers earning no more than 100% of area median income WASHINGTON, DC – October 28, 2026 – Fannie Mae (FNMA/OTCQB) earned $4.2 billion in net income in the third quarter of 2026, compared with $4.0 billion in the second quarter of 2026, and increased its net worth to $119.6 billion as of September 30, 2026. Net revenues increased to $7.7 billion in the third quarter, compared with $7.6 billion in the second quarter of 2026. In addition to the increase in net revenues, the increase in net income reflects a shift from fair value losses to gains, partially offset by increased credit loss provision. Unrealized losses on available-for-sale securities drove an increase in other comprehensive losses. William J. Pulte, Director, U.S. Federal Housing, and Chairman, Fannie Mae Board of Directors: “Fannie Mae landed another strong performance this quarter, growing our net worth 13% year over year to $120 billion. Our continued focus on running an efficient business and reducing mortgage costs is delivering for American homeowners and renters—half the single-family loans we acquired went to low-and middle-income borrowers.” Peter Akwaboah, Acting Chief Executive Officer and Chief Operating Officer, Fannie Mae: “So far in 2026, we’ve provided $344 billion of liquidity, helping more than 295,000 first-time homeowners achieve the American Dream. Our talented team, strong business model, and solid balance sheet enable us to deliver on our mission while generating solid earnings, including $4.2 billion in net income in the third quarter.” More information, including access to the webcast featuring our earnings presentation, our Third Quarter 2026 Form 10-Q, and other disclosures, can be found on our Quarterly and Annual Results webpage at fanniemae.com/financialresults. Third Quarter 2026 Key Metrics $4.2 billion $119.6 billion $7.7 billion Net Income Net Worth Net Revenues ($4.0 billion in 2Q 2026) ($116.5 billion in 2Q 2026) ($7.6 billion in 2Q 2026) $4.1 trillion 10.25% 11.1% Guaranty Book of Business Administrative Expense Ratio Illust. Return on Avg. Req.CET1 ($4.1 trillion in 2Q 2026) (10.72% in 2Q 2026) (10.8% in 2Q 2026) Business Impact and Quarterly Highlights (1) (2) (3) (1)
Page 2
Mortgage Acquisitions Enabled the financing of ~356,000 home purchases, refinancings, and rental units in the third quarter of 2026 $103 billion in liquidity provided to mortgage market,supporting approximately 194,000 home purchases,66,000 refinancings, and 96,000 rental units. Helped nearly 103,000 first-time homebuyers purchasea home, representing 53% of single-family purchaseacquisitions. 47% of single-family acquisitions went to low- andmiddle- income borrowers earning no more than 100% ofarea median income. 77% of multifamily units financed were affordable torenters earning no more than 100% of area medianincome. Our foreclosure prevention solutions allowed morethan 21,000 homeowners to remain in their homes. Promoting greater choice and better access tohomeownership through VantageScore 4.0 expansion. Endnotes are presented on page 5 Third Quarter 2026 1
Page 3
Summary of Financial Results Chryssa C. Halley, Chief Financial Officer, Fannie Mae: “Fannie Mae’s continued profitability underscores the stability of our guaranty fee-driven business model and the strength of our balance sheet—as well as our ability to deliver reliable liquidity in all market conditions. Bolstered by our more efficient operations and continued focus on safety and soundness, we increased net income to $4.2 billion in the third quarter and our net worth to $119.6 billion.” Key Highlights — Third Quarter 2026 • Net revenues increased to $7.7 billion, primarily consisting of guaranty fee income on the company’s $4.1 trillion guaranty book of business. The increase in net revenues was primarily driven by higher net interest income from portfolios, compared with 2Q 2026. • Provision for credit losses of $1.1 billion, compared with $485 million in 2Q 2026. The single-family provision primarily reflects higher actual and projected interest rates, newly acquired loans, and newly delinquent loans. The multifamily provision primarily reflects weakening credit metrics on multifamily loans, a decline in our near-term property value forecast, and elevated interest rates. • Non-interest expense increased to $2.1 billion, compared with 2Q 2026, driven primarily by a shift from other income to other expense, partially offset by lower administrative expenses. • Other gains totaled $724 million, driven primarily by net fair value gains. • Other comprehensive losses increased by $885 million, compared with 2Q 2026, driven by unrealized losses on available-for-sale securities. Summary of Consolidated Financial Results (Dollars in millions) 3Q26 2Q26 Variance% Change 3Q25 Variance% Change Net interest income $ 7,559 $ 7,493 $ 66 1 % $ 7,184 $ 375 5 % Fee and other income 92 72 20 28 % 123 (31) (25)% Net revenues 7,651 7,565 86 1 % 7,307 344 5 % Fair value gains (losses), net 630 (76) 706 NM 13 $ 617 NM Investment gains (losses), net 94 53 41 77 % 120 (26) (22)% Other gains (losses), net 724 (23) 747 NM 133 591 NM (Provision) benefit for credit losses (1,140) (485) (655) (135)% (338) (802) NM Non-interest expense: Administrative expenses (784) (811) 27 3 % (819) 35 4 % Legislative assessments (924) (934) 10 1 % (943) 19 2 % Credit enhancement expense (371) (361) (10) (3)% (409) 38 9 % Other income (expense), net (44) 38 (82) NM (96) 52 54 % Total non-interest expense (2,123) (2,068) (55) (3)% (2,267) 144 6 % Income before federal income taxes 5,112 4,989 123 2 % 4,835 277 6 % Provision for federal income taxes (935) (1,007) 72 7 % (976) 41 4 % Net income $ 4,177 $ 3,982 $ 195 5 % $ 3,859 $ 318 8 % Other comprehensive income (loss) (1,037) (152) (885) NM (10) (1,027) NM Total comprehensive income $ 3,140 $ 3,830 $ (690) (18)% $ 3,849 $ (709) (18)% Net worth $119,637 $116,497 $ 3,140 3 % $105,485 $ 14,152 13 % (4) (5) (6) (7) (8) Third Quarter 2026 2
Page 4
Single-Family Business Jake Williamson, EVP, Head of Single-Family, Fannie Mae: “We are focused on deepening our relationship with lenders by making it easier to do business with Fannie Mae and creating a better borrower experience. Pairing practical innovations, like credit score modernization, with sound risk management is key to our strategy.” Single-Family Highlights — Third Quarter 2026 • Single-family conventional acquisition volume decreased to $88.3 billion in 3Q 2026, compared with $111.2 billion in 2Q 2026. • Average single-family conventional guaranty book was largely unchanged at $3.56 trillion, compared with 2Q 2026. • Single-family net revenues remained largely unchanged at $6.3 billion, compared with 2Q 2026. • The average charged guaranty fee, net of TCCA fees, on the single-family conventional guaranty book increased to 49.1 basis points, compared with 49.0 basis points in 2Q 2026. The average charged guaranty fee on newly acquired conventional loans, net of TCCA fees, increased to 53.8 basis points, compared with 53.5 basis points in 2Q 2026. • Overall credit characteristics of the single-family conventional guaranty book were largely unchanged compared with the prior quarter, with a weighted-average mark-to-market loan-to-value ratio of 51% and a weighted-average FICO credit score at origination of 753 as of Sep. 30, 2026. • Single-family serious delinquency rate increased to 0.62% as of Sep. 30, 2026, compared with 0.58% as of prior quarter end. • Provision for single-family credit losses of $694 million, primarily associated with higher actual and projected interest rates, newly acquired loans, and newly delinquent loans. This compares with a provision of $226 million in 2Q 2026. Single-Family Business Financial Results (Dollars in millions) 3Q26 2Q26 Variance % Change 3Q25 Variance% Change Net interest income $ 6,268 $ 6,248 $ 20 — %* $ 5,992 $ 276 5 % Fee and other income 68 53 15 28 % 104 (36) (35)% Net revenues 6,336 6,301 35 1 % 6,096 240 4 % Fair value gains (losses), net 658 (130) 788 NM (22) 680 NM Investment gains (losses), net 92 50 42 84 % 127 (35) (28)% Other gains (losses), net 750 (80) 830 NM 105 645 NM (Provision) benefit for credit losses (694) (226) (468) NM (269) (425) (158)% Non-interest expense: Administrative expenses (630) (650) 20 3 % (669) 39 6 % Legislative assessments (912) (924) 12 1 % (929) 17 2 % Credit enhancement expense (289) (278) (11) (4)% (330) 41 12 % Other income (expense), net (107) (87) (20) (23)% (129) 22 17 % Total non-interest expense (1,938) (1,939) 1 — %* (2,057) 119 6 % Income before federal income taxes 4,454 4,056 398 10 % 3,875 579 15 % Provision for federal income taxes (812) (863) 51 6 % (790) (22) (3)% Net income $ 3,642 $ 3,193 $ 449 14 % $ 3,085 $ 557 18 % Average charged guaranty fee on new conventionalacquisitions, net of TCCA fees 53.8 bps53.5 bps 0.3 bps 1 % 56.3 bps(2.5) bps (4)% Average charged guaranty fee on conventionalguaranty book of business, net of TCCA fees 49.1 bps49.0 bps 0.1 bps — %* 48.5 bps 0.6 bps 1 % (9) (10) (11) (4) (5) (6) (7) Third Quarter 2026 3
Page 6
Multifamily Business Kelly Follain, EVP, Head of Multifamily, Fannie Mae: “Our Multifamily business continues to serve the market from a position of strength, with disciplined execution and a clear focus on making it easier for lenders and borrowers to do business with us. By combining the proven strength of the DUS model with innovative financing, technology solutions, and strong risk management, we are supporting the creation and preservation of quality, affordable rental housing.” Multifamily Highlights — Third Quarter 2026 • Multifamily acquisition volume increased to $14.5 billion in 3Q 2026, compared with $14.2 billion in 2Q 2026. • Multifamily guaranty book of business grew to $545.4 billion as of Sep. 30, 2026, an $800 million increase from June 30, 2026. • Multifamily net revenues increased to $1.32 billion in 3Q 2026, compared with $1.26 billion in 2Q 2026. • Average charged guaranty fees on overall multifamily book decreased by 0.6 basis points to 69.9 basis points as of Sep. 30, 2026, compared with 70.5 basis points as of June 30, 2026. • Weighted average original loan-to-value and debt service coverage ratios for the multifamily guaranty book were largely unchanged from the prior quarter at 63% and 1.9, respectively, as of Sep. 30, 2026. • Multifamily serious delinquency rate increased to 0.62% as of Sep. 30, 2026, compared with 0.60% as of prior quarter end. • Provision for multifamily credit losses of $446 million, primarily reflecting weakening credit metrics on multifamily loans, a decline in our near-term property value forecast, and elevated interest rates. This compares with a provision of $259 million in 2Q 2026. (12)
Page 7
Multifamily Business Financial Results (Dollars in millions) 3Q26 2Q26 Variance% Change 3Q25 Variance% Change Net interest income $ 1,291 $ 1,245 $ 46 4 % $ 1,192 $ 99 8 % Fee and other income 24 19 5 26 % 19 5 26 % Net revenues 1,315 1,264 51 4 % 1,211 104 9 % Fair value gains (losses), net (28) 54 (82) NM 35 (63) NM Investment gains (losses), net 2 3 (1) (33)% (7) 9 NM Other gains (losses), net (26) 57 (83) NM 28 (54) NM (Provision) benefit for credit losses (446) (259) (187) (72)% (69) (377) NM Non-interest expense: Administrative expenses (154) (161) 7 4 % (150) (4) (3)% Legislative assessments (12) (10) (2) (20)% (14) 2 14 % Credit enhancement expense (82) (83) 1 1 % (79) (3) (4)% Other income (expense), net 63 125 (62) (50)% 33 30 91 % Total non-interest expense (185) (129) (56) (43)% (210) 25 12 % Income before federal income taxes 658 933 (275) (29)% 960 (302) (31)% Provision for federal income taxes (123) (144) 21 15 % (186) 63 34 % Net income $ 535 $ 789 $ (254) (32)% $ 774 $ (239) (31)% Average charged guaranty fee rate on multifamilyguaranty book of business, at period end69.9 bps70.5 bps(0.6) bps (1)% 72.4 bps(2.5) bps (3)% (11) (4) (5) (6) (7) Third Quarter 2026 4
Page 8
Additional Matters Fannie Mae’s Condensed Consolidated Statements of Operations and Comprehensive Income and Condensed Consolidated Balance Sheets for the third quarter of 2026 are available in the accompanying Annex; however, investors and interested parties should read the company’s quarterly report on Form 10-Q for the quarter ended September 30, 2026 (“Third Quarter 2026 Form 10-Q”), which was filed today with the Securities and Exchange Commission and is available on Fannie Mae’s website, www.fanniemae.com. The company provides further discussion of its financial results and condition, credit performance, and other matters in its Third Quarter 2026 Form 10-Q. Additional information about the company’s financial and credit performance is contained in Fannie Mae’s “3Q 2026 Earnings Presentation” and “3Q 2026 Financial Supplement” at www.fanniemae.com. # # # This release includes forward-looking statements regarding the company's future financial and mission performance and financial condition, as well as the company’s plans, and their impact. Actual outcomes could be materially different from what is set forth in these forward-looking statements due to a variety of factors, including those described in “Forward-Looking Statements” in the company’s Third Quarter 2026 Form 10-Q and in “Forward-Looking Statements,” “Risk Factors,” and elsewhere in the company’s annual report on Form 10-K for the year ended December 31, 2025. Fannie Mae provides website addresses in its news releases solely for readers’ information. Information contained on or accessible through our website is not incorporated into, and does not as a result of references to the company’s website form a part of, this release or any other report or document the company files with or furnishes to the Securities and Exchange Commission, and any references to the company’s website are intended to be inactive textual references only. To learn more, visit fanniemae.com. Endnotes NM Not meaningful * Represents less than 0.5% (1) Illustrative return on average required Common Equity Tier 1 (CET1) is designed to show what our return on capital would have been if our actualCET1 available capital had been equal to the CET1 capital requirement for the applicable periods. CET1 requirement as presented represents thecompany's average CET1 capital requirement including prescribed capital conservation buffer amount under the enterprise regulatory capitalframework (which is not currently in effect while the company is in conservatorship) for the period as described below and not the amount of thecompany's actual available CET1 capital. As of September 30, 2026, the company's actual available CET1 capital was a deficit of $30 billion. For eachapplicable period, the illustrative return on average required CET1 ratio is calculated based on annualized year-to-date net income for the perioddivided by the average CET1 capital requirement for each quarter to date during the applicable year plus the fourth quarter of the previous year. (2) As presented in our Form 10-Q, net revenues consist of net interest income, and fee and other income. (3) Administrative expense ratio is calculated as administrative expenses divided by net revenues during the period. Administrative expenses consist of salaries and employee benefits and professional services, technology and occupancy expenses. (4) Consists of salaries and employee benefits and professional services, technology and occupancy expenses. (5) For single-family, consists of the portion of our single-family guaranty fees that is paid to Treasury pursuant to the TCCA, affordable housing allocations and FHFA assessments. For multifamily, consists of affordable housing allocations and FHFA assessments. (6) Consists of costs associated with freestanding credit enhancements, which primarily include the company’s Connecticut Avenue Securities® (“CAS”) and Credit Insurance Risk Transfer programs, enterprise-paid mortgage insurance, and certain lender risk-sharing programs. (7) Primarily consists of foreclosed property income (expense), change in the expected benefits from our freestanding credit enhancements, and gains (losses) from partnership investments. (8) Primarily consists of unrealized gains (losses) on our available-for-sale (“AFS”) U.S. Treasury security investments. (9) Weighted-average FICO credit score at origination excludes loans for which FICO credit scores were unavailable and also excludes loans delivered with a VantageScore 4.0 credit score. Collectively these loans represented less than 0.5% of the single-family conventional guaranty book of business as of Sep. 30, 2026. (10) Single-family seriously delinquent loans are loans that are 90 days or more past due or in the foreclosure process. Our single-family serious delinquency rate is expressed as a percentage of our single-family conventional guaranty book of business based on loan count. (11) During the third quarter of 2026, we changed our methodology for allocating certain fair value gains and losses between our two business segments. For additional information refer to "Note 10, Segment Reporting" in our Third Quarter 2026 Form 10-Q. (12) Multifamily serious delinquency rate consists of multifamily loans that were 60 days or more past due based on unpaid principal balance, expressed as a percentage of our multifamily guaranty book of business. Investor Contact: Yasaman Hekmat (yasaman_hekmat@fanniemae.com) Media Contact: Matthew Classick (matthew_t_classick@fanniemae.com) TM
Page 9
Third Quarter 2026 5
Page 10
ANNEX FANNIE MAE (In conservatorship) Condensed Consolidated Statements of Operations and Comprehensive Income — (Unaudited) (Dollars and shares in millions, except per share amounts) For the Three MonthsEnded September 30, For the Nine Months EndedSeptember 30, 2026 2025 2026 2025 Interest income: Mortgage loans $ 39,962 $ 38,344 $ 118,161 $ 113,436 Securities purchased under agreements to resell 592 844 1,770 2,640 Investments in securities and other 1,068 789 2,721 2,328 Total interest income 41,622 39,977 122,652 118,404 Interest expense: Short-term debt (323) (154) (771) (362) Long-term debt (33,740) (32,639) (99,631) (96,702) Total interest expense (34,063) (32,793) (100,402) (97,064) Net interest income 7,559 7,184 22,250 21,340 Non-interest income: Fair value gains (losses), net 630 13 675 347 Fee and other income 92 123 246 293 Investment gains (losses), net 94 120 (130) 100 Total non-interest income 816 256 791 740 (Provision) benefit for credit losses (1,140) (338) (1,902) (1,308) Non-interest expense: Salaries and employee benefits (484) (475) (1,410) (1,578) Professional services, technology, and occupancy (300) (344) (930) (1,080) Legislative assessments (924) (943) (2,789) (2,813) Credit enhancement expense (371) (409) (1,090) (1,288) Other income (expense), net (44) (96) (155) (440) Total non-interest expense (2,123) (2,267) (6,374) (7,199) Income before federal income taxes 5,112 4,835 14,765 13,573 Provision for federal income taxes (935) (976) (2,886) (2,736) Net income 4,177 3,859 11,879 10,837 Other comprehensive income (loss) (1,037) (10) (1,254) (9) Total comprehensive income $ 3,140 $ 3,849 $ 10,625 $ 10,828 Net income $ 4,177 $ 3,859 $ 11,879 $ 10,837 Dividends distributed or amounts attributable to senior preferred stock (3,140) (3,849) (10,625) (10,828) Net income (loss) attributable to common stockholders $ 1,037 $ 10 $ 1,254 $ 9 Earnings per share: Basic $ 0.18 $ 0.00 $ 0.21 $ 0.00 Diluted 0.18 0.00 0.21 0.00 Weighted-average common shares outstanding: Basic 5,867 5,867 5,867 5,867 Diluted 5,893 5,893 5,893 5,893 See Notes to Condensed Consolidated Financial Statements in the Third Quarter 2026 Form 10-Q Third Quarter 2026 6
Page 11
FANNIE MAE (In conservatorship) Condensed Consolidated Balance Sheets — (Unaudited) (Dollars in millions) As of September 30,2026 December 31,2025 ASSETS Cash $ 10,918 $ 11,452 Restricted cash (includes $17,687 and $22,848, respectively, related to consolidated trusts) 25,425 31,131 Securities purchased under agreements to resell (includes $16,050 and $18,425, respectively, related toconsolidated trusts) 33,450 45,650 Investments in securities, at fair value 100,723 69,889 Mortgage loans: Loans held for sale, at lower of cost or fair value 332 209 Loans held for investment, at amortized cost: Of Fannie Mae 66,617 57,970 Of consolidated trusts 4,049,097 4,069,498 Total loans held for investment (includes $6,309 and $5,464, respectively, at fair value) 4,115,714 4,127,468 Allowance for loan losses (9,415) (8,364) Total loans held for investment, net of allowance 4,106,299 4,119,104 Total mortgage loans 4,106,631 4,119,313 Advances to lenders 1,206 3,595 Deferred tax assets, net 9,707 9,828 Accrued interest receivable (includes $11,628 and $11,129, respectively, related to consolidated trusts) 12,567 11,689 Other assets 17,260 14,991 Total assets $ 4,317,887 $ 4,317,538 LIABILITIES AND EQUITY Liabilities: Accrued interest payable (includes $11,457 and $11,320, respectively, related to consolidated trusts) $ 12,593 $ 12,035 Debt: Of Fannie Mae (includes $235 and $256, respectively, at fair value) 168,731 127,289 Of consolidated trusts (includes $14,728 and $15,060, respectively, at fair value) 4,000,518 4,053,140 Other liabilities (includes $1,717 and $1,719, respectively, related to consolidated trusts) 16,408 16,062 Total liabilities 4,198,250 4,208,526 Commitments and contingencies (Note 14) — — Fannie Mae stockholders’ equity: Senior preferred stock (liquidation preference of $237,996 and $226,984, respectively) 120,836 120,836 Preferred stock, 700,000,000 shares are authorized—555,374,922 shares issued and outstanding 19,130 19,130 Common stock, no par value, no maximum authorization—1,308,762,703 shares issued and 1,158,087,567 shares outstanding 687 687 Accumulated deficit (12,382) (24,261) Accumulated other comprehensive income (loss) (1,234) 20 Treasury stock, at cost, 150,675,136 shares (7,400) (7,400) Total stockholders’ equity 119,637 109,012 Total liabilities and equity $ 4,317,887 $ 4,317,538 See Notes to Condensed Consolidated Financial Statements in the Third Quarter 2026 Form 10-Q Third Quarter 2026 7