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Significant Financial Events
For the Three Months Ending March 31, 2004Bank Insurance Fund (BIF):
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BIF's first quarter comprehensive income rose $50
million, or 15%, to $382 million, compared to $332 million for the same
period of last year. This is primarily due to: 1) unrealized gains on
available-for-sale securities increasing by $72 million, and 2) estimated
losses for both future and actual failures, as well as litigation,
decreasing by $31 million. These increases to income were offset by a
decrease of $51 million in the amount that interest earnings exceeded
operating expenses.
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Receivables
from bank resolutions decreased by $132 million to $379 million during the
first three months of 2004. Recoveries of payments made to cover
obligations to insured depositors of failed banks reduced the net
receivable by $168 million during the first quarter. This was offset by 1)
a $14 million increase in the allowance for loss and 2) payments of $26
million to cover obligations to insured depositors of the two banks that
failed during the quarter. These two banks, Reliance Bank and Guaranty
National Bank, had assets at failure of $104 million, and an estimated
loss of $300 thousand.
Savings
Association Insurance Fund (SAIF):
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Comprehensive income was $154
million for the three months ending March 31, 2004, compared to $159
million for the same period last year. This decrease of $5 million
is primarily due to lower interest revenue from U.S. Treasury obligations
of $8 million offset by an increase in unrealized gains on
available-for-sale securities of $26 million. Additionally, the estimated
losses for future failures in the first quarter of 2004 remained
unchanged, compared to a $21 million decrease in estimated losses for
future failures for the same period of last year.
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Net receivables from thrift resolutions increased by $5
million to $278 million during the first quarter of 2004.
During this period, Dollar Savings Bank failed with assets at failure of $15
million. SAIF made a payment of $5 million to cover obligations to insured
depositors which was offset by an estimated loss of approximately $1
million.
FSLIC
Resolution Fund (FRF):
As
of March 31, 2004, the liability associated with future Goodwill and Guarini litigation judgments
and/or settlements cannot be reasonably estimated.
Guarini Litigation
To date, there have been eight “Guarini” cases.
One of these cases was settled during 2002 for $20 thousand. Further, there
have been liability determinations in seven of these cases. The United States Court
of Federal Claims has entered an award for the plaintiffs in three of these
cases, which are all on appeal.
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