FDIC reports BIP and SAIF mid-year earnings

Northwestern Financial Review, Sep 15-Sep 30, 2003

The Federal Deposit Insurance Corporation announced that the Bank Insurance Fund earned $750 million for the first two quarters, compared to $748 million for the same period last year. The FDIC said a decrease in interest income was made up by lowered bank failure estimates and decreased operational expenses.

As of June 30, the fund balance was $32.8 billion, up from $32.1 billion at year-end 2002. The Savings Association Insurance Fund reported comprehensive income of $336 million compared to $388 million for the same period last year. The decrease of $52 million resulted primarily from lower unrealized gains and reduced interest revenue from U.S. Treasury obligations. As of June 30, the fund balance was $12.1 billion, up from $11.7 billion at year-end 2002. Two BIF-insured institutions, Southern Pacific Bank of Los Angeles, and First National Bank of Blanchardville, Wis., failed during the first six months of 2003 with total assets of $1.1 billion and estimated losses of $110 million.