Corporate Fund Financial Statement Results -
First Quarter 2008
three months ending March 31, 2008, DIF’s comprehensive income
totaled $430 million compared to $580 million for the same period last
year, a decrease of $150 million or 26 percent. This year-over-year
decrease was primarily due to a $598 million increase in the provision
for insurance losses, which was offset in part by a: 1) $354 million
increase in assessment revenue; 2) $51 million increase in interest
revenue from UST obligations; and 3) $46 million increase in the unrealized
gain on available-for-sale securities.
DIF recorded a $442 million receivable for estimated net
assessments due from insured institutions for first quarter 2008
insurance coverage. The receivable was the result of netting approximately
million in credits against approximately $1.005 billion in gross
assessment revenue. During the month of March, DIF also collected $251
cash assessment payments for fourth quarter 2007 insurance coverage,
exceeding the estimated receivable by approximately $6 million.
The provision for losses for the first quarter of 2008 was
$525 million, consisting primarily of a $458 million increase to
the estimated losses for future failures and a $67 million upward adjustment
to the estimated losses for prior year failures (including $42
for the NetBank receivership and $16 million for the Miami Valley
Bank receivership, both of which failed during 2007).
For the first quarter of 2008, FRF reported a net loss of
$55 million. This loss was primarily related to Goodwill litigation
expenses/losses that were partially offset by interest earned
on U.S. Treasury obligations.
In addition to
the aforementioned Goodwill litigation expenses/losses, FRF paid
Goodwill judgments for two cases in the aggregate amount of
$35.4 million that were accrued for in the prior year.