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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 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

Executive Summary - Third Quarter 2007

The attached report highlights the Corporation's financial activities and results for the period ending September 30, 2007.

  • The Deposit Insurance Fund (DIF) remained financially sound and exhibited healthy earnings during the first three quarters of 2007. The fund balance grew by one percent to $51.754 billion during the third quarter of 2007. DIF’s comprehensive income grew by $527 million during the third quarter of 2007, increasing the year-to-date (YTD) comprehensive income to $1.589 billion. Comprehensive income for the third quarter 2007 is primarily composed of interest earned on investment securities of $640 million, assessment revenue of $170 million, an increase in the unrealized gain on available-for-sale securities (AFS) of $68 million, which was offset by $243 million incurred in operating expenses and a $132 million change in the provision for insurance losses largely due to the failure of NetBank of Alpharetta, Georgia.
  • On September 28, 2007, the Office of Thrift Supervision closed NetBank of Alpharetta, Georgia and named the FDIC as receiver. In September, DIF recorded a liability for the estimated pending depositor claims and an offsetting receivable from the receivership for the estimated subrogated claim (reflecting the estimated insured deposits including brokered deposits) of $1.834 billion. In addition, an allowance for loss of $108 million was recorded against the resolution receivable.
  • For the nine months ending September 30, 2007, Corporate Operating and Investment Budget related expenditures ran below budget by 13 percent and 15 percent, respectively. The variance with respect to the Corporate Operating Budget expenditures was primarily the result of limited resolutions and receivership activity in the Receivership Funding component of the budget through the third quarter of 2007. 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.



Last Updated 11/26/2007 dofbusinesscenter@fdic.gov