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Chief Financial Officer's (CFO) Report to the Board

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Chief Financial Officer's (CFO) Report to the Board Home
Executive Summary

   •  Summary Trends and Results
I. Corporate Fund Financial Statement Results

   •  DIF Balance Sheet
   •  DIF Income Statement
   •  DIF Statements of Cash Flows
   •  FRF Selected Financial Data
II. Investments Results & Prospective Strategies

   •  Deposit Insurance Fund Portfolio Summary
   •  Approved Investment Strategies
III. Budget Results

   •  Budget & Expenditures by Major Expense Categories
   •  Budget & Expenditures by Budget Component, Division & Office
Printable Version

I. Corporate Fund Financial Statement Results - Second Quarter 2008

DIF

  • For the six months ending June 30, 2008, DIF reported a comprehensive loss of $7.196 billion compared with comprehensive income of $1.062 billion for the same period last year. This $8.258 billion year-over-year decrease was primarily due to a $10.822 billion increase in the provision for insurance losses, partially offset by a $1.767 billion increase in the unrealized gain on available-for-sale investments and an $854 million increase in assessment revenue.
  • The provision for insurance losses was $10.746 billion at June 30, 2008, compared with a negative $76 million for the comparable period in 2007. Approximately 82% of this change, ($8.9 billion of the $10.822 billion) resulted from the contingent loss reserve estimate recorded in the second quarter for IndyMac Bank.
  • The unrealized gain on AFS securities was $1.686 billion as of June 30, 2008, compared with an unrealized loss of $81 million at June 30, 2007. The major reason for this increase was a $1.630 billion cumulative adjustment made in June 2008 to mark all previously designated HTM securities to market. Management determined that the FDIC could no longer assert that it had the positive intent and ability to hold these securities to maturity as they might be sold in response to a liquidity need. All DIF investments are now shown on the financial statements at fair market value.
  • Assessment revenue was $1.088 billion as of June 30, 2008, compared with $234 million for the same period last year. The continuing increase in assessment revenue reflects the declining balance of one-time assessment credits available. DIF collected $455 million in assessments for first quarter 2008 insurance coverage which was $13 million higher than the estimate recorded at the end of the first quarter 2008. DIF also recorded a $627 million receivable for estimated net assessments due from insured institutions for second quarter 2008 insurance coverage.

FRF

  • FRF’s net income was $14 million for the second quarter of 2008 compared to a $55 million loss incurred during the first quarter. The additional income resulted primarily from an increase of $16 million in interest on U.S. Treasury obligations and a recovery of $10 million in tax benefits, offset by a $14 million increase in the provision for losses.




Last Updated 09/15/2008 dofbusinesscenter@fdic.gov