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

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

   •  Summary Trends and Results
I. Corporate Fund Financial Results

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

   •  Corporate Investment Portfolio Summary
   •  Approved Investment Strategy
III. Budget Results

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

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

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

Last Updated 12/04/2007
  dofbusinesscenter@fdic.gov