REPORTS 1998 AND FIRST QUARTER 1999
EARNINGS FOR BANK AND THRIFT INSURANCE FUNDS
FOR IMMEDIATE RELEASE PR-31-99 (6-3-99)
Media Contact: David Barr (202) 898-6992
The Bank Insurance Fund (BIF) earned $1.3 billion in 1998 and
$244 million in the first quarter of 1999, according to an FDIC
management report on the Corporation's unaudited financial statements.
The Savings Association Insurance Fund (SAIF) earned $468 million
and $99 million for the same periods.
The BIF closed the first quarter with a balance of $29.9 billion.
The SAIF closed the quarter with an unrestricted fund balance
of $9.0 billion and $978 million in the SAIF Special Reserve.
The continuing low numbers of bank and thrift failures contributed
to the strong results. Only four BIF-insured banks failed since
the beginning of 1998; no SAIF-insured thrift failed.
BIF revenues totaled $2 billion for 1998 and $438 million for
the first quarter of 1999. The fund's investments in U.S. Treasury
securities earned $1.7 billion in interest in 1998 and $420 million
during the first quarter of 1999. Deposit insurance assessments
were $22 million and $10 million for the same periods.
The SAIF earned $584 million in revenue during 1998 and $141
million in the first quarter of 1999. Almost all revenue for both
periods was derived from interest on investments in U.S. Treasury
The FSLIC Resolution Fund (FRF) assets in liquidation were reduced
by 61 percent, or $1.4 billion, to $930 million over the past
five quarters. The FRF was established in 1989 to assume the remaining
assets and obligations of the former Federal Savings and Loan
Insurance Corporation. On January 1, 1996, the former Resolution
Trust Corporation's financial operations were merged into the
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Congress created the Federal Deposit
Insurance Corporation in 1933 to restore public confidence in
the nation's banking system. The FDIC insures deposits at the
nation's 10,461 banks and savings associations and it promotes
the safety and soundness of these institutions by identifying,
monitoring and addressing risks to which they are exposed.
FDIC press releases and other information are available
on the Internet at www.fdic.gov
or through the FDIC's Public Information Center (800-276-6003
or (703) 562-2200).