Second Quarter 2007
This attached report highlights
the Corporation's financial activities and results for the period ending
June 30, 2007.
- The Deposit Insurance
Fund (DIF) fund balance grew by 0.95 percent to $51.2 billion during
the second quarter of 2007, a decrease of 21 basis
points from the growth experienced in the first quarter of 2007.
comprehensive income for the second quarter of 2007 was 17 percent lower
compared to the prior quarter ($482 million vs. $580 million). This decrease
of $98 million is primarily attributable to the volatility in the market
value of DIF’s portfolio of available-for-sale securities (AFS) securities.
Although the DIF reported higher interest revenue ($181 million)
and an increase in assessment revenue ($46 million) in the second quarter,
was fully offset by a lower contribution to the year-to-date comprehensive
income from unrealized (loss)/gain on AFS securities (second quarter
unrealized loss of $162 million vs. first quarter unrealized gain of $81
and a smaller reduction in the estimated losses for anticipated failures
- For the six months ending June 30, 2007, Corporate Operating
Budget and Investment Budget related expenditures ran below budget
by 10 percent and 53 percent, respectively. The variance with respect
the Corporate Operating Budget expenditures was primarily the result
of limited resolutions and receivership activities in the Receivership
Funding component of the budget through the second quarter. Detailed
quarterly reports are provided separately to the Board by the Capital
Investment Review Committee for those projects that are included
in the Investment Budget.
the pages following is an assessment of each of the three major finance
financial statements, investments, and budget.