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:
|mil $s||mil $s||mil $s||mil $s||mil $s||mil $s||mil $s||mil $s|
|Washington DC Financial Companies|
|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)|
|Virginia Financial Companies|
|Capital One Financial||McLean||Dec||4,423||4,354||3,709||3,253||3,050||987||85||2,592|
|Markel Corp||Glen Allen||Dec||324||284||258||148||268||202||(58)||406|
|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|
|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|
|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)||-||-||-|
|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|
|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|
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.