Corporate Fund Financial Statement Results -
Second Quarter 2007
For the six months ending
June 30, 2007, DIF’s comprehensive
income totaled $1.1 billion compared to $967 million for the same
period last year, an increase of 10 percent. Excluding the recognition
fees earned of $346 million (a one-time adjustment), comprehensive
income rose by $441 million, or 71 percent, from a year ago. This year-over-year
increase was primarily due to a $222 million increase in assessment
a $172 million increase in interest revenue, a $53 million decrease
in the unrealized loss on AFS securities, and a $24 million increase
the negative provision for insurance loss.
During the second quarter of 2007, DIF recorded a $139 million
receivable for estimated net assessments due from insured institutions
for second quarter 2007 insurance coverage. The receivable was the result
of netting $789 million in credits estimated to be used by financial
institutions against $928 million in estimated gross assessment revenue.
In June, DIF also collected $94 million in cash assessment payments for
first quarter insurance coverage.
second quarter of 2007, DIF’s net receivables
from resolutions declined by $124 million, or 29 percent, to $307
million compared to the prior quarter. This reduction was primarily
due to dividends
from receiverships totaling approximately $122 million ($108 million
from Southern Pacific and $14.5 million from Nextbank).
FRF’s net loss was $22 million for the second quarter of 2007
compared to a $19 million loss incurred during the first quarter of 2007.
The additional loss is primarily due to an increase in interest on U.S. Treasury
obligations of $40 million offset by Goodwill/Guarini expenses of $64 million.
During the second quarter of 2007, FRF paid $74.5
million for a Goodwill case. In addition, FRF accrued expenses
for three Goodwill cases which totaled $64.3 million. All of
the Guarini cases have been concluded. However, there are still
issues pertaining to attorney fees pending in several of those