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Executive
Summary -
First Quarter 2007
This report highlights the
Corporation's financial activities and results for the three-month
period ending March 31, 2007.
- The
Deposit Insurance Fund (DIF) fund balance grew by 1.2 percent to $50.7
billion during the
first quarter of 2007, equaling the same
percentage increase for the comparable period in 2006. DIF’s
comprehensive income for the first quarter of 2007 was slightly
lower compared to a
year ago ($580 million vs. $596 million). However, if the one-time
adjustment for exit fees earned of $346 million is excluded from
the 2006 results,
DIF’s first quarter 2007 comprehensive income rose by $330 million,
or 132 percent. This increase resulted primarily from higher
assessment revenue ($89 million), an increase in interest revenue
($89 million),
and a higher contribution to the year-to-date comprehensive income
from unrealized gain/(loss) on available-for-sale (AFS) securities
($138 million).
- In
February 2007, the FDIC was appointed receiver of Metropolitan
Savings Bank, Pittsburgh, PA (total assets of $15.8 million), which
was the first FDIC-insured bank failure in over two and
one-half
years. The DIF disbursed $17.3 million to cover obligations
to insured depositors
of the failed bank and recorded an allowance for loss of
$2.5 million against this receivable. This estimated loss
is likely to substantially
increase based on a further review of the institution’s
unrecorded assets and liabilities.
- For the three
months ending March 31, 2007, Corporate Operating and Investment Budget
related expenditures ran below budget by 12 percent
and 31 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 by the Capital Investment
Review Committee for those information technology projects that are
included
in the
Investment Budget.
On
the pages following is an assessment of each of the three major finance
areas:
financial statements, investments, and budget.
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