|
|
Summary
Trends and Results -
Second Quarter 2007
| Financial Results |
Comments |
| I. Financial
Statements |
- Assessment revenue in the second quarter was 49 percent higher
than first quarter revenue ($140 million vs. $94 million). This increase
primarily resulted from a reduction in the amount of assessment credits
estimated to be used by financial institutions to offset gross assessments.
The trend in higher assessment income is expected to continue as institutions
deplete their available credits; through the first two quarters of 2007,
institutions are expected to use approximately $1.6 billion, or 34 percent,
of the initial $4.7 billion one-time assessment credit (second quarter
assessments will be collected on September 28, 2007).
|
II. Investments |
- The DIF portfolio amortized cost (book value) increased by 2.22
percent during the first half of 2007, and totaled $49.942 billion on
June 30, 2007. During the period, newly purchased securities had higher
average
yields than those of maturing securities. Consequently, the DIF portfolio’s
yield increased by eight basis points during the first half of 2007, rising
to 4.97 percent as of June 30, 2007, from 4.89 percent as of December 31,
2006.
- Treasury market yields are expected to continue to trade generally
within the range exhibited during the latter half of the second quarter
of 2007, with the potential for a modest rise from quarter-end levels.
This, coupled with a growing DIF investment portfolio balance, should lead
to increased interest revenue over the long run.
|
| III. Budget |
- Approximately $467 million was spent in the Ongoing Operations
component of the 2007 Corporate Operating Budget, which was $21 million
(4 percent) below the budget for the six months ending June 30, 2007.
The Outside Services - Personnel expense category was $10 million below
its
year-to-date budget, and represents 47 percent of the total Ongoing Operations
variance.
- Approximately $4 million was spent in the Receivership Funding
component of the 2007 Corporate Operating Budget, which was $33 million
(88 percent) below the budget for the six months ending June 30, 2007.
The Outside Services - Personnel expense category was $28 million
below its year-to-date budget, and represents 84 percent of the total
Receivership Funding variance.
|
|
