Skip Header

Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Home > About FDIC > Financial Reports > Chief Financial Officer's (CFO) Report to the Board

Chief Financial Officer's (CFO) Report to the Board

Skip Left Navigation Links
Chief Financial Officer's (CFO) Report to the Board Home
Executive Summary

   •  Summary Trends and Results
I. Corporate Fund Financial Statement Results

   •  DIF Balance Sheet
   •  DIF Income Statement
   •  DIF Statements of Cash Flows
   •  Selected Financial Data
II. Investments Results & Prospective Strategies

   •  Deposit Insurance Fund Portfolio Summary
   •  Approved Investment Strategies
III. Budget Results

   •  Budget & Expenditures by Major Expense Categories
   •  Budget & Expenditures by Budget Component, Division & Office
Printable Version

I. Corporate Fund Financial Statement Results - Third Quarter 2008


  • For the nine months ending September 30, 2008, DIF reported a comprehensive loss of $17.825 billion compared with comprehensive income of $1.589 billion for the same period last year. This $19.414 billion year-over-year decrease was primarily due to a $22.620 billion increase in the provision for insurance losses, partially offset by a $1.565 increase in assessment revenue, a $1.353 billion increase in the unrealized gain on available-for-sale (AFS) securities and a $473 million realized gain on the sale of AFS securities.
  • The provision for insurance losses was $22.676 billion for the nine months ending September 30, 2008. The total provision consists mainly of the provision for future failures ($11.602 billion) and the losses estimated at failure for the 13 resolutions to date ($10.962 billion), the largest of which was the $8.9 billion loss estimate for the IndyMac resolution. In contrast, the total provision for insurance losses for the nine months ending September 30, 2007 was $56 million.
  • DIF’s year-to-date assessment revenue was $1.969 billion as of September 30, 2008, compared with $404 million for the nine months ending September 30, 2007. The 2008 revenue consists of: 1) $1.073 billion in collections for the first and second quarters; 2) $890 million estimated to be received at the end of the fourth quarter for third quarter insurance coverage; and 3) $6 million in adjustments recognized in 2008 for fourth quarter 2007 coverage. Of the $4.7 billion in one-time assessment credits granted, only $312 million remained as of September 30, 2008.
  • Net receivables from resolutions increased by $12.2 billion to $14.4 billion during the third quarter 2008. This increase was mostly due to $8.4 billion in funding provided to the IndyMac conservatorship during the third quarter and an increase of $1.4 billion in net subrogated accounts (claims against the receivership) and loans to the receiverships for the nine new resolutions over the past three months.


  • FRF’s net loss was $74 million for the third quarter of 2008 compared to $14 million net income earned during the second quarter. The loss was primarily due to the recognition of an $85.5 million loss related to a Goodwill judgment, partially offset by $15.9 million in interest earned on U.S. Treasury obligations. In addition to the above, FRF paid a previously recognized Goodwill judgment to Fifth Third Bank in the amount of $76.6 million.

Last Updated 12/15/2008

Skip Footer back to content