|
|
DIF
Income Statement -
Third Quarter 2007
| Fund Financial Results |
($
in millions) |
| Income
Statement |
| |
(unaudited)
9/30/2007 |
(audited)
12/31/2006 |
(unaudited)
9/30/2006 |
Year-Over-Year
Change |
| Assessments
earned |
$404 |
$32 |
$22 |
$382 |
| Interest
earned on investment securities |
1,955 |
2,241 |
1,765 |
190 |
| Exit
fees earned |
0 |
345 |
345 |
(345) |
| Other
revenue |
11 |
27 |
22 |
(11) |
| Total
Revenue |
$2,370 |
$2,645 |
$2,154 |
$216 |
| Operating
expenses (includes depreciation expense) |
730 |
951 |
703 |
27 |
| Provision
for insurance losses |
56 |
(52) |
(101) |
157 |
| Other
expenses |
2 |
6 |
5 |
(3) |
| Total
Expenses & Losses |
$788 |
$905 |
$607 |
$181 |
| Net
Income |
$1,582 |
$1,740 |
$1,547 |
$35 |
| Unrealized
gain/(loss) on available-for-sale securities, net |
(13) |
(173) |
(152) |
139 |
| Unrealized
postretirement benefit gain/(loss) |
20 |
2 |
0 |
20 |
| YTD
Comprehensive Income |
$1,589 |
$1,569 |
$1,395 |
$194 |
| Over the last seven years, the provision for insurance losses added
to net income as estimated losses that had been previously booked for
both existing receiverships and potential failures were reversed. By
the end of the third quarter of 2007, this trend had begun to reverse. |
| Components
of Provision for Insurance Losses |
Year |
Closed Banks |
Anticipated Failures |
Other |
Total Provision for Losses |
| 2004 |
(154) |
(171) |
(28) |
(353) |
| 2005 |
(159) |
(5) |
4 |
(160) |
| 2006 |
(153) |
105 |
(4) |
(52) |
| 9/2007 |
94 |
(40) |
3 |
56 |
| DIF
Coverage Ratio (Interest and Assessment Revenue/Operating
Expenses) |
| Year |
Interest
on Obligations |
Assessments |
Operating
Expense |
Coverage
Ratio |
| 2003 |
$2,157 |
95 |
$935 |
2.31 |
| 2004 |
$2,108 |
104 |
$942 |
2.35 |
| 2005 |
$2,342 |
61 |
$966 |
2.49 |
| 2006 |
$2,241 |
32 |
$951 |
2.39 |
| September 2007 |
$1,955 |
404 |
$703 |
3.23 |
|
