Monday, March 9, 2015

27 Largest Washington DC, Virginia, Maryland and Delaware Financial Companies 2 Year 2014 and 2013 Audited US GAAP Earnings Were $177 Bil, a Massive $381 Bil Earnings Improvement From the 2 Year 2009 and 2008 Audited Losses of $204 Bil ... 3 Year 2012-2014 Audited Earnings Were $218 Bil, an Even More Massive $441 Bil Earnings Improvement From the 3 Year 2008-2010 Audited Losses of $223 Bil ..................... This is all on Ben Bernanke ..................

Former US Fed Chair Ben Bernanke has served two US Presidents of different political parties and has worked incessantly and very successfully in Washington DC in making the US economy function better.

Bernanke will be delivering a key economic presentation at the University of Southern Indiana in Evansville, Indiana on March 23, 2015.  It is open to the public and free of charge.

Thus, as a backdrop for this upcoming speech and continuing a much deserved tribute to Bernanke's key role in helping the US avoid a Deep, Prolonged Financial Depression, I think it would be helpful to update just what has been going on with the largest Washington DC, and Neighboring States Virginia, Maryland and Delaware Financial including REIT Companies Audited Earnings since the disastrous 2008 Financial Meltdown.

From a very thorough review of SEC filings and Google's excellent financial website, I found as best I could 27 Financial including REIT Companies headquartered in Washington DC, or Neighboring States Virginia, Maryland and Delaware with Stock Market Capitalizations now of at least $1 bil and which have filed audited financial statements with the SEC with financial information disclosures for all years from 2008 through 2014.

So just how have these 27 Financial Companies done on the audited earnings front since the 2008 financial meltdown?  Just an off-the-charts, spectacular earnings recovery from the dead.

The Total Audited US GAAP Net Income from Continuing Operations of these 27 largest Washington DC and Neighboring States Financial Companies was a massive $177 bil in their Most Recent Two Years (2014 and 2013) Combined, an incredibly off-the-charts Total Earnings Improvement of $381 bil when compared to the Deep US Recession-Driven Total Audited Losses for the Two Years (2009 and 2008) Combined of $204 bil.

Fannie Mae comprised $232 bil and Freddie Mac another $131 bil of this $381 bil Two Year Total Earnings Improvement.   

Further, the Total Audited US GAAP Net Income from Continuing Operations of these 27 largest Washington DC and Neighboring States Financial Companies was $218 bil in their Most Recent Three Years (2012-2014) Combined, an incredibly off-the-charts even more massive Total Earnings Improvement of $441 bil when compared to the Deep US Recession-Driven Total Audited Losses for the Three Years (2008-2010) Combined of $223 bil.

Fannie Mae comprised $261 bil and Freddie Mac another $156 bil of this $441 bil Three Year Total Earnings Improvement.   

There has been something miraculous happening with the largest Washington DC and Neighboring States Virginia, Maryland and Delaware Financial Companies Earnings in the past six years and very prescient economic actions by former US Fed Chairman Ben Bernanke played a very pivotal role here in resuscitating many of these Financial Companies from the abyss.

Below here are the US GAAP Net Income (Losses) of each of these 27 Washington DC and Neighboring States Virginia, Maryland and Delaware Financial Companies  for each of their fiscal years from 2007 to 2014:

2014 2013 2012 2011 2010 2009 2008 2007



Audited Audited Audited Audited Audited Audited Audited Audited


Net Net Net Net Net Net Net Net

City 2014 Income Income Income Income Income Income Income Income
HQs FYE (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss) (Loss)

mil $s mil $s mil $s mil $s mil $s mil $s mil $s mil $s
Washington DC Financial Companies








Fannie Mae DC Dec        14,209      83,982   17,220    (16,855)    (14,018)    (72,022)      (58,319)    (2,056)
The Carlyle Group DC Dec              915        1,348      2,400        1,154        1,459           664            (514)
DuPont Fabros Technology DC Dec              125              54           61              79              44                3                36       (188)
Washington REIT DC Dec                  5              (0)              8              (1)                1              10                (9)              8











Virginia Financial Companies









Freddie Mac McLean Dec          7,690      48,668   10,982      (5,266)    (14,026)    (21,554)      (50,116)    (3,102)
Capital One Financial McLean Dec          4,423        4,354      3,709        3,253        3,050           987                85      2,592
Avalonbay Communities Arlington Dec              659              58         250           166           104              83              103         221
Markel Corp Glen Allen Dec              324           284         258           148           268           202              (58)         406
PRA Group Norfolk Dec              177           177         126           101              74              44                45           48
Genworth Financial Richmond Dec         (1,048)           726         468           261           285          (399)            (572)      1,154











Maryland Financial Companies








T Rowe Price Group Baltimore Dec          1,230        1,048         884           773           672           434              491         671
Host Hotels & Resorts Bethesda Dec              747           210            (8)            (12)          (128)          (197)              382         532
American Capital Bethesda Dec              434           184      1,136           974           998          (910)         (3,115)         700
Legg Mason Baltimore Mar              282          (360)         231           246           211      (1,965)              264         646
LaSalle Hotel Properties Bethesda Dec              213              90           72              43                3                6                31           55
Federal Realty Investment Trust Rockville Dec              168           138         143           132           126           101              120           98
Diamondrock Hospitality Bethesda Dec              163              24         (18)              (8)           (11)           (10)                48           57
RLJ Lodging Trust Bethesda Dec              136           107           43           (10)           (42)         (125)              (28)           12
Choice Hotels Intl Rockville Dec              121           113         121           110           107              98              100         111
Pebblebrook Hotel Trust Bethesda Dec                74              43           27              15              (7)               -                   -               -  
Chesapeake Lodging Trust Annapolis Dec                61              45           27                9              (1)               -                   -               -  
Saul Centers Bethesda Dec                58              35           35              30              40              43                48           46
Corporate Office Properties Trust Columbia Dec                35              37              8         (113)              37              55                54           27
American Capital Agency Bethesda Dec            (233)        1,259      1,277           770           288           119                35











Delaware Financial Companies








Navient Corp Wilmington Dec          1,149        1,312         941           598           729           483              (65)       (900)
SLM (Sallie Mae) Newark Dec              194           259         218              54            (94)            
American Express Credit Corp Wilmington Dec              353           446         339           397           348           362              864         725











Total all 27 DC, VA, MD and DE Financial Companies        32,664   144,641   40,958    (12,952)    (19,483)    (93,488)    (110,090)      1,863











Earnings 2014 and 2013 Combined
     177,305






Losses 2009 and 2008 Combined
   (203,578)    





…Total Earnings Improvement

     380,883

















Earnings 3 Years 2012-14 Combined
     218,263






Earnings 3 Years 2008-10 Combined
   (223,061)






…Total Earnings Improvement

     441,324








Delaware

SLM (Sallie Mae) spun off Navient Corp in May 2014.  Navient is the more financially muscular of the two surviving companies with a current stock market capitalization of $7.9 bil versus $4.0 bil for SLM.  Navient generated $1.149 bil in Audited Net Income in 2014 versus $0.149 bil for SLM.  They can do a spinoff with a corporate name change but the huge surviving Navient Corp is still Sallie Mae, with a massive $134 bil in Student Education Loans, with $30 bil being Private Education Loans charging an average interest rate of 6.40% whereas Navient's average borrowing rate now is only 1.63%, with its $112 bil of its floating rate debt having an even lower interest rate of 0.95%.  I think Navient is clearly ripping off Students with its absurdly high net interest income % margin.

American Express Credit Corp (also called Credco) is Delaware headquartered and generated Total Pretax Income of $3.092 bil for the 7 years 2007 through 2013 and has no Total Income Tax Expense for that same 7 year period, instead having a Total Income Tax Benefit of $27 mil.  Tax havens aren't just located overseas, there's also a huge one in the State of Delaware.    


Posted by at