|
|
Executive
Summary -
First Quarter 2006
This report highlights the
Corporation's financial activities and results for the three-month
period ending March 31, 2006.
- As authorized
by the enactment of the Federal Deposit Insurance Reform Act of 2005,
the FDIC merged the Bank Insurance Fund (BIF) and the Savings Association
Insurance Fund (SAIF) to form the Deposit Insurance Fund (DIF) effective
March 31, 2006. The merger of the BIF and SAIF was accounted for by
combining the carrying value of each Fund ’s assets and liabilities.
- Recognition of SAIF Exit
Fees Escrow as DIF income on March 31, 2006, added $346 million to
comprehensive income and approximately
0.89 basis points to DIF’s reserve ratio.
- For the three
months ending March 31, 2006, Corporate Operating and Investment
Budget related expenditures ran below budget by 12 percent
and 29 percent, respectively. The variance with respect to the
Corporate Operating Budget expenditures was primarily the result
of limited resolutions
and receivership activities in the Receivership Funding component
of the budget through the first quarter. Detailed quarterly reports
are
provided separately to the Board for the projects included in the
Investment Budget, either by the Capital Investment Review Committee
for all information
technology projects or by the Division of Administration for the
Virginia Square – Phase II project.
- Of the
$9.05 million increase in the 2006 operating budget for
deposit insurance reform, only
$14 thousand was spent as of March 31, 2006.
- Over the last eight quarters,
the combined insurance funds’ unrealized
gain on Available-for-Sale (AFS) securities has declined
by a total of $960 million, or 73%, to $350 million as of
March 31,
2006.
From its peak
at March 31, 2004, unrealized gains expressed as a percentage
of
insured deposits has fallen from 3.7 basis points to
0.9 basis points at the end
of the 1st quarter of 2006. Approximately 60 percent
of the reduction is due to the passage of time (that is, as AFS
securities approach
their maturity,
any unrealized gains vanish).
On
the pages following is an assessment of each of the three major finance
areas:
financial statements, investments, and budget.
|
