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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 Statements of Cash Flows
II. Investments Results & Prospective Strategies

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

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

I. Corporate Fund Financial Statement Results - Third Quarter 2007

DIF

  • For the nine months ending September 30, 2007, DIF’s comprehensive income totaled $1.589 billion compared to $1.395 billion for the same period last year, an increase of 14 percent. Excluding the recognition of exit fees earned of $345 million (a one-time adjustment), comprehensive income rose by $539 million, or 51 percent, from a year ago. This year-over-year increase was primarily due to a $190 million increase in interest revenue, a $382 million increase in assessment revenue, a $139 million decrease in the unrealized loss on AFS securities, offset by a $27 million increase in operating expenses and a $157 million increase in the provision for insurance losses.
  • During the third quarter of 2007, DIF’s YTD provision for insurance losses increased by $132 million to $56 million primarily due to an $83 million increase in the estimated loss for the NetBank failure and a $64 million increase in the contingent loss reserve for anticipated failures.

FRF

  • FRF reported net income of $39 million for the third quarter of 2007, decreasing the YTD net loss to $2 million. Net income for the quarter included: 1) interest on U.S. Treasury obligations of $39 million; 2) tax benefit recoveries of $4 million; and 3) an expense of $11 million to fund the fiscal year 2008 goodwill expenses of the Department of Justice (which was paid on October 1, 2007).
  • During the third quarter of 2007, FRF paid $46 million for two Goodwill cases (which were accrued for as of June 30, 2007), bringing the total year-to-date litigation expenses to $179 million.
  • Subsequent to quarter-end, FRF paid $225 million to the Resolution Funding Corporation (REFCORP) on October 10, 2007, bringing total payments to REFCORP to $4.8 billion. The most recent prior payment to REFCORP was made on April 10, 2003 for $50 million.

The FDIC must transfer to the REFCORP the net proceeds from the sale of FRF-RTC assets (once all liabilities of the FRF-RTC have been provided for) to pay the interest on REFCORP bonds, which were issued to fund early Resolution Trust Corporation resolutions. Any such payments benefit the U.S. Treasury, which would otherwise be obligated to pay the interest on the bonds.






Last Updated 12/18/2007 dofbusinesscenter@fdic.gov