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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

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

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

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

Summary Trends and Results - Second Quarter 2007

Financial Results Comments
I. Financial Statements
  • Assessment revenue in the second quarter was 49 percent higher than first quarter revenue ($140 million vs. $94 million). This increase primarily resulted from a reduction in the amount of assessment credits estimated to be used by financial institutions to offset gross assessments. The trend in higher assessment income is expected to continue as institutions deplete their available credits; through the first two quarters of 2007, institutions are expected to use approximately $1.6 billion, or 34 percent, of the initial $4.7 billion one-time assessment credit (second quarter assessments will be collected on September 28, 2007).
II. Investments
  • The DIF portfolio amortized cost (book value) increased by 2.22 percent during the first half of 2007, and totaled $49.942 billion on June 30, 2007. During the period, newly purchased securities had higher average yields than those of maturing securities. Consequently, the DIF portfolio’s yield increased by eight basis points during the first half of 2007, rising to 4.97 percent as of June 30, 2007, from 4.89 percent as of December 31, 2006.
  • Treasury market yields are expected to continue to trade generally within the range exhibited during the latter half of the second quarter of 2007, with the potential for a modest rise from quarter-end levels. This, coupled with a growing DIF investment portfolio balance, should lead to increased interest revenue over the long run.
III. Budget
  • Approximately $467 million was spent in the Ongoing Operations component of the 2007 Corporate Operating Budget, which was $21 million (4 percent) below the budget for the six months ending June 30, 2007. The Outside Services - Personnel expense category was $10 million below its year-to-date budget, and represents 47 percent of the total Ongoing Operations variance.
  • Approximately $4 million was spent in the Receivership Funding component of the 2007 Corporate Operating Budget, which was $33 million (88 percent) below the budget for the six months ending June 30, 2007. The Outside Services - Personnel expense category was $28 million below its year-to-date budget, and represents 84 percent of the total Receivership Funding variance.


Last Updated 08/21/2007 dofbusinesscenter@fdic.gov