Federal Deposit
Insurance Corporation

I. Corporate Fund Financial Statement Results - Second Quarter 2007

DIF

• For the six months ending June 30, 2007, DIF’s comprehensive income totaled $1.1 billion compared to $967 million for the same period last year, an increase of 10 percent. Excluding the recognition of exit fees earned of $346 million (a one-time adjustment), comprehensive income rose by $441 million, or 71 percent, from a year ago. This year-over-year increase was primarily due to a $222 million increase in assessment revenue, a $172 million increase in interest revenue, a $53 million decrease in the unrealized loss on AFS securities, and a $24 million increase in the negative provision for insurance loss.

• During the second quarter of 2007, DIF recorded a $139 million receivable for estimated net assessments due from insured institutions for second quarter 2007 insurance coverage. The receivable was the result of netting $789 million in credits estimated to be used by financial institutions against $928 million in estimated gross assessment revenue. In June, DIF also collected $94 million in cash assessment payments for first quarter insurance coverage.

• During the second quarter of 2007, DIF’s net receivables from resolutions declined by $124 million, or 29 percent, to $307 million compared to the prior quarter. This reduction was primarily due to dividends from receiverships totaling approximately $122 million ($108 million from Southern Pacific and $14.5 million from Nextbank).

FRF