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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 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

DIF

  • 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

  • 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 dofbusinesscenter@fdic.gov