Page 151

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AIIQWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is racognized when receitredj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

Art Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerii
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% of the principal of proven
creditor claims has been aid.

Page 152

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that certain non?cash adjustments such as the estimated loss on assets and probable iiligation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStlf?l?lETl'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers of corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pro-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. ll a receivership ?les for a refund from federal or

state tax agencies. the potential tart reiund estimate is disclosed, Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behali. Since 2015. FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expenses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
rsceivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR NEW USE ONLY
INDYMAC FEDERAL BANK FSB
Fund Number: 1000?
Statement of Assets Br Liabilities in Liquidation (unaudited)
(Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
Accounterotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorrCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven Depositon?Creditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception - Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsr?tneticit)
Net Assets r? {Deficit} At Inception
Premiums Fleceived i (Paid) at Resolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Flelated Equity Adjustments (Note 9)
Net income;i (Loss) of the Liquidation Since Inception

Total Net AssetsriDeticit)

Total Liabilities and Net 

Estimated additional litigation losses considered reasonably possible: (Note 7)

PASADENA, CA

Inception Date: 0TI11I2008

For Period Ending: December 31, 2010
Run Date a Time: usr15r201s 

Current Balance

Inception Balance

2,351,255,286 0
215,135.91 1 0
4,359,535 0
502,353,299 
0 513.145

0 0
73,327,?41 15.725.593.722
447.714.5445 2.245.554.1395
23.429.9T5 545,553,043
102,750,922 
523,452,429 0

 

2.073.059.014
1.055.552.2120


0

 

3,555,995,523

27,95?,5?4,720

 

 

 

 

 

 

0
23,342,525 0
0
5,552,524,555 0

0 0

1.954.582.35? 0

7,553,502,394 0
13.855.559.512 0
91,507,055 0
25,159,555 0

0 0

5,972,355,124 0
0 0

0 0

105.055.991 25.505.540.578

105,055,991 25,505.540,070
15,735,915,509 25.505.540.073

 

{541955.157}



0 

{2430.079351] 
{1,325,431,571} 

 

{$13,179,915,552}



 

3,555,995,528

27,95?,574,? 20

 

 

0

 INFEW USE ONLY

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 0Tf11f2008
Statement oi Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2010
(Rounded in Dollars) Hun Date 8: Time: 05f15f2018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 0

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 155

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acguiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss Allovvances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is rocognized when receitredj: the foreclosed
value of real andror personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when anticipated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise ti proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

Is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerlt
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% of the principal of proven
creditor claims has been aid.

Page 156

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that ceriain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovan?es: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
Iwhich the FDIC serves as receiver. continue to tile federal income tax returns tor the they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tall retund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expenses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR NEW USE ONLY
INDYMAC FEDERAL BANK FSB
Fund Number: 1000?
Statement of Assets 31 Liabilities in Liquidation (unaudited)
(Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorfCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven Depositon?Creditor Claims
Other Claims

Other Contingent Creditor Claims (Note 

Other Subordinated Obligations

Liabilities at inception - Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsr?tneticit)
Net Assets 1? {Deficit} At Inception
Premiums Fleceived 7 (Paid) at Resolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Flelated Equity Adjustments (Note 9)
Net income-1i (Loss) of the Liquidation Since Inception

Total Net AssetsriDeticit)

Total Liabilities and Net 

Estimated additional litigation losses considered reasonably possible: (Note 7)

Current Balance

2,490,569,111
224.453.4131
2,155,749

169,214,991
0

9
23,372,376
149564.139
5,973,795
93,621 .720
587220.137

PASADENA, CA
Inception Date: 0171172003

For Period Ending: December 31, 2011
Run Date a Time: 0571572013 

Inception Balance

0

0

5,215,875,949
513,146

9
18.725.593.722
2.245.654.1395
946,353,943
123,074,154

0

 

1.027.957.5313
610.971 .150

27.957,574,720
9

 

3,045,931,629

21957574329

 

 

 

 

 

 

271.945 9
2,955,925 9
1,427,134 9

51.125.955.522 5

9 9

2,993,957,497 9

2,273,923,352 9
9,955,331,594 9
92295.95? 9
25,159,555 9

9 9

9,929,592,947 9
9 9

9 9

193,953,557 29.595.549.979

199,993,557 29,595,549,979

16,351,308,977 5 25595949579

 

{5419551 571

9
(9.379.345.1151
{2,599,559,995}
(1,599,259,999)

1547,9651 57)
9

0
Cl
0

 



($547,955,157)

 

3,045,031,529



 

 



 USE ONLY

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 0Tf11f2008
Statement oi Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2011
(Rounded in Dollars) Hun Date 8: Time: 05f15f2018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 0

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 159

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deterred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satisfied when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is racognized when receitredj: the foreclosed
value of real andror personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when anticipated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise ti proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a teceiirership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerli
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the tull principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% of the principal of proven
creditor claims has been aid.

Page 150

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. that-EB are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tart law requires that receivers ci corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during the
life of the receivership. as well as during pro-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. ot the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. if a receivership ?les for a refund from federal or

state tart agencies. the potential tart retund estimate is disclosed. Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behall. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR NEW USE ONLY
INDYMAC FEDERAL BANK FSB
Fund Number: 1000?
Statement of Assets 3: Liabilities in Liquidation (unaudited)
(Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note 6)

Subtotal - Administrative Liabilities
Proven DepositorrCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 8}

Subtotal - Proven DepositoriCreditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception - Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsr?ineticit)
Net Assets r? {Deficit} At Inception
Premiums Received i (Paid) at Resolution
Asset - Fielated Equityr Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net income;i (Loss) of the Liquidation Since Inception

Total Net AssetsriDeticit)

Total Liabilities and Net AssetsriDeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

Current Balance

2.087.699.509
224.483.968
124.831

222,430,134
0

0
13,928,729
140.906.1322
337.214
74,172,170
358.843.621

PASADENA, CA
Inception Date: om 112003

For Period Ending: December 31, 2012
Run Date a Time: usr15r201s 

inception Balance

0
0
0

6,215,875,949
513.146

0
18.725.593.722
2.245.664.6913
646.853.043
123,074,164

0

 

810.6171889
441.109.438

27.957.574,720
0

 

2,681,816,758

27,957,574,720

 

 

 

 

82.791 0

39.647.124 0
1.463.125 0
5.177.717.1394 0

0 0

1,847,716,323 0

7,066,626,456 0
8.856.364.911 0
92.205887 0
25.159556 0

0 0

8,973,730,354 0
0 0

0 0

42,481,081 28.505.540.878

 

42,481 .081

28,505,540,878

 

1 6,082,837,891



28505540373

 

{547.966.157)


ts.229.r53.1c4i
(2,293,401,932)
(2.329.399.9401


0

0
Cl
0

 

{$13,401,021,133}



 

2,681 

27,957,574,7 20

 

 

0

 INFEQENTHZ USE ONLY

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 0Tf11f2008
Statement oi Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2012
(Rounded in Dollars) Hun Date 8: Time: 05f15f2018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 51,178,574

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April, 2018 {Period 04}

Page 153

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets of the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude. At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expenses
having no recovery value; and accrued or deferred income. Restated balances are shown undtar the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may 

3. Receivables: The line item Receivable Due from FDIC reflects the amount mail by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satisfied when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the FDIC's subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other HeceivabII typically includes the net effect of post?closing

asset and liability adjustments between the receivarship and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss Allowances: Assets of a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is recognized when receivadj: the foreclosed
value of real andror personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quaiity and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsldisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses diifIr from those which are probable in that liters

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assessment
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated Interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis} held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the tull principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% cf the principal of proven
creditor claims has been aid.

Page 164

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fixed and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR NEW USE 
INDYMAC FEDERAL BANK FSB
Fund Number: 1000?
Statement of Assets 31 Liabilities in Liquidation (unaudited)
(Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorrCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven DepositoriCreditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception - Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsr?ineticit)
Net Assets r? {Deficit} At Inception
Premiums Received i (Paid) at Resolution
Asset - Fielated Equityr Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net income;i (Loss) of the Liquidation Since Inception

Total Net AssetsriDeticit)

Total Liabilities and Net AssetsriDeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

Current Balance

1,636,065,780
224.257.9133
2.238.051

123,393,312
0

0

9,515,596
171 023.876
133,132
75,479,057
559,910.305

PASADENA, CA
Inception Date: 0?:1112005

For Period Ending: December 31, 2013
Run Date a Time: 0514512013 11:13:43Allil

inception Balance

0
0
0

5,215,875,949
513,146

0
13.725.593.722
2.245.654.1396
546,353,043
123,074,154

0

 

949,556,200
437,415,538

27.957.574,720
0

 

2,424,723,443

27,957,574,720

 

 

 

 

 

 

153.393 0
35,012,566 0
446,490 0
5,175,900,531 

0 0

1,469,260,054 0

6,683,803,332 0
3,856,192,337 0
91,354,053 0
25,159,556 0

0 0

5,973,205,946 0
0 0

0 0

25,309,723 23.505.540.878

26,309,723 
15,533,319,050 3 28505540373

 

571

0
{8,225,261,159}
(1,898,034,453)
(2,537,333,323)

(547,965,157)
0

0
Cl
0

 

{$13,258,595,602}

($547,965,157)

 

2,424,723,443

27,957,574,7 20

 

 

0

FOH USE ONLY

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: DTHUZODB
Statement of Assets 3. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2013
(Rounded in Dollars) Run Date Time: 05f15f2018 
Current Balance inception Balance
Estimated tax refund (Note 11) 58,377,323

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 

Page 167

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown undtar the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other Receivable typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is recognized when receivadj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsrdisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarn'tng the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that liter-e

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerli
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% of the principal of proven
creditor claims has been aid.

Page 168

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that ceriain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovan?es: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tatt retund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tort agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expenses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR NEW USE 
INDYMAC FEDERAL BANK FSB
Fund Number: 1000?
Statement oi Assets 31 Liabilities in Liquidation (unaudited)
{Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorrCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven DepositoriCreditor Claims
Other Claims

Other Contingent Creditor Claims (Note 

Other Subordinated Obligations

Liabilities at inception - Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsr?ineticit)
Net Assets 1? {Deficit} At Inception
Premiums Fleceived 1 (Paid) at Flesolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Flelated Equity Adjustments (Note 9)
Net incomeri (Loss) of the Liquidation Since Inception

Total Net AssetsriDeticit)

Total Liabilities and Net AssetsilDeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

Current Balance


224,397.924
2,052,89?

199,483,?31
0



5,892,25?
173,853,313
9

538,118,639

PASADENA, CA
Inception Date: 0?,i111?2003

For Period Ending: December 31, 2014
Run Date a Time: 051'151'2013 

Inception Balance

0

0


513,146


18.725.593.722
2.245.654.696
846,353,943
123,0?4,154

0

 

901,125,154
312,925,923


ID

 

2,338,437,641



 

 

 

 

 

 

573.099 0
35,545,292 0
951,98? i]
5,175,944,540 

0

594,455,954 0

5,?18,491,943 9
9,857,976,310 0
94355938 Cl
25,159,556 0



3,925,591,804 0
0 Cl

9 0

2,499,429 23595549378

2,489,429 
145912553375 28,505,540,373

 

{5419691 571

13.117.715.55?)
{932,631,396}
12,710,751 .3241


0

0
Cl
0

 

{$12,3cs,ors,435}



 

2,383,437,641



 

 

?5 

FOH INFEM USE ONLY

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 0?!11i2008
Statement of Assets 3. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2014
(Rounded in Dollars) Run Date Time: 05f15f2018 
Current Balance inception Balance
Estimated tax refund (Note 11) 5,800,000

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 171

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AIIQWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is racognized when receivadj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law governing the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable secessmerii
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% cf the principal of proven
creditor claims has been aid.

Page 172

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated Intereat on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Oi?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. It a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behait. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation tasters. such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR NEW USE 
INDYMAC FEDERAL BANK FSB
Fund Number: 1000?
Statement oi Assets 6r Liabilities in Liquidation (unaudited)
{Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorrCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven DepositoriCreditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception - Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsr?i?Deticit)
Net Assets r? {Deficit} At Inception
Premiums Fleceived i (Paid) at Flesolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Flelated Equity Adjustments (Note 9)
Net incomeri (Loss) of the Liquidation Since Inception

Total Net AssetsriDeticit)

Total Liabilities and Net AssetsilDeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

Current Balance

99?.726269
494,661
1,690,251

106,957,477
0

0

4336.499
167.196.1126
0
60,196,066
51 1530936

PASADENA, CA
Inception Date: 0791156003

For Period Ending: December 31, 2015
Run Date a Time: usr15r201a 

Inception Balance

0
0
0

6,215,6?5,949
513,146

0
16.725.593.722
2.245.664.696
646,653,043
123,014,164

0

 

650,609,12?
314246533


0

 

1,536,215,696



 

 

 

 

 

 

44?.692 0
36,696,430 0
846.159 0
4,451,656,?99 0

0 0

634332346 0

5,124,561,627 0
6,859,633,651 0
94,350,006 0
25,159,556 0

0 0

6,9?9,143,412 0
0 0

0 0

121,?59 26505540676

1 21 ,759 26,505,540,676
14,103,3455996 28,505,540,676

 

{541955.157}


(8,119,03?,17?]
it ,063,0?E,635i
(23314912331


0

0
Cl
'0

 





 

1,536,275,696



 

 

0

 INFEW USE ONLY

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 0Tf11f2008
Statement oi Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2015
(Rounded in Dollars) Hun Date 8: Time: 05f15f2018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 5,810,155

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 175

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is rocognized when receitredj: the foreclosed
value of real andror personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise ti proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a teceitrership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

Is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerlt
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on prevail creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the tull principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% of the principal of proven
creditor claims has been aid.

Page 176

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovan?as: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStlf?l?lEil'Of?l Of the ultimately collectible. instead. that-EB are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tart law requires that receivers ci corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pro-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. ot the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tart agencies. the potential tart retund estimate is disclosed. Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behall. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR NEW USE 
INDYMAC FEDERAL BANK FSB
Fund Number: 1000?
Statement oi Assets 31 Liabilities in Liquidation (unaudited)
{Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorrCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven DepositoriCreditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception 4 Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsr?ineticit)
Net Assets 7? {Deficit} At Inception
Premiums Fleceived i (Paid) at Flesolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Flelated Equity Adjustments (Note 9)
Net incomeai (Loss) of the Liquidation Since Inception

Total Net AssetsriDeticit)

Total Liabilities and Net AssetsilDeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

Current Balance

?48.315,219
018,392
1,718.95?

00,3911?
0

0

3,553,371
161,479,827
0
?6,572,350


PASADENA, CA
Inception Date: 07711152003

For Period Ending: December 31, 2016
Run Date a Time: 051'157'2013 

Inception Balance

0

0


513,146

0
13.725.593.722
2.245.654.6915
346,353,043
123,004,154

0

 


218,511,113


0

 

1,304,939,670

27,95?,5?4,720

 

 

 

 

 

 

216.974 0
99,196 0

350,103 0
4,256,641,999 0

0 0

574,619,594 0

4,631,927,766 0
6,659,662,045 0
94,350,006 0
25,159,556 0

0 0

6,979,201,606 0
0 0

0 0

66,064 

66,064 26,605,540,676
13.311.197.456 26,505,540,676

 

{541960157}

0
[8,023,301 ,6571
r1 ,002.963,051l
12,932,021 ,9211

1647,666.1 671
0

0
Cl
0

 





 

1,304,939,670

27,95?,574,? 20

 

 

0

 INFEQENMB USE ONLY

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 0Tf11f2008
Statement oi Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2016
(Rounded in Dollars) Hun Date 8: Time: 05f15f2018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 926,514

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 179

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is reocgnized when receiiredj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law governing the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a teceitrership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrorn cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimts) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% of the principal of proven
creditor claims has been aid.

Page 180

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. that-EB are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tart law requires that receivers ci corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during the
life of the receivership. as well as during pro-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. ot the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. if a receivership ?les for a refund from federal or

state tart agencies. the potential tart retund estimate is disclosed. Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behall. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrators liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR NEW USE ONLY
INDYMAC FEDERAL BANK FSB
Fund Number: 1000?
Statement of Assets 3: Liabilities in Liquidation (unaudited)
(Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorfCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven DepositoriCreditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception - Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsr?ineticit)
Net Assets 7? {Deficit} At Inception
Premiums Received 7 (Paid) at Resolution
Asset - Fielated Equityr Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net income;i (Loss) of the Liquidation Since Inception

Total Net AssetsriDeticit)

Total Liabilities and Net AssetsriDeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

Current Balance

496,543,634
409.459
1 .722,103

47,772.753
0

0

2,045,337
157.331.514
0
77,247,990
359,732.41 1

PASADENA, CA
Inception Date: 0?r1172003

For Period Ending: December 31, 201?
Run Date a. Time: 0571572018 

inception Balance

0
0
0

6,215,375,943
513,146

0
13.725.533.722
2.245.664.1396
646,353,043
123,074,164

0

 

6443305565
167,033,155

27.957.574,720
0

 

975,372,706

27,957,574,720

 

 

 

 

 

 

30.364 0

229.033 0
336,755 0
4,055,941,142 0

0 0

293,741,320 0

4,355,273,170 0
3,353,632,045 0
34,350,006 0
25,153,556 0

0 0

3,979,201,606 0
0 0

0 0

63.034 23.505.540.373

56,064 28,505,540,373
13334548360 3 28.505.540.373

 

{547,966,157}
0
(7,971,828,699)
(721059,??31
(3,111,791,520)


0

0
0
0

 

($12,353,676,154)

($547,965,157)

 

975,372,705

27,957,574,720

 

 

0

 INFEQENTHZ USE ONLY

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 0Tf11f2008
Statement oi Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2017
(Rounded in Dollars) Hun Date 8: Time: 05H 5f2018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 1,103,618

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 183

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver fora failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include ices allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is racognized when receivadj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

Art Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable ascessmerii
of the ultimate outcome andior an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% cf the principal of proven
creditor claims has been aid.

Page 184

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fixed and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY

INDYMAC FEDERAL BANK FSB PASADENA, CA

Fund Number: 10007 Inception Date: 07:11i2008

Statement of Operations (unaudited) For Period Ending: 12i31i2098

{Rounded in Dollars) Run Date 8. Time: 05i15i2ti18 
Year-to-Date lnception-to-Date

 

Liquidation Revenues

 

 

 

 

 

 

 

 

 

Interest on Cash and Intrastrnents 84,036 34,030
Interest and Other Operating Income on Assets
Securities 0
Consumer Loans 
Commercial Loans 
Fleal Estate Mortgages 545,432 545.432
Other Assets and Judgments 
Owned Assets 
Structured and Securitized Assets CI 0
Recoveries from Charged-Off Assets 0
Subtotal - Interest and Other Operating Income 545,432 3 546,432
Non-Recurring Income
Professional Liability i Litigation Recoveries 9
Federal and State Income Tax Flefunds 0
Other Miscellaneous Income 3,555,860 3,555,660
Subtotal - Non?Recurring Income 3,555,669 3,555,650
Total - Liquidation Revenues 4,185,122 4,135,122
Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses 4,354,694 4,354,694
Asset Management and Other Contractual Expenses 9,911,131 9,911,131
Asset Sales Expenses 
Owned Asset Expenses 0
Legal and Other Professional Fees $8,633 278,638
Pre-closing Administrative Expenses 
Travel and Other Liquidation Expenses 2,354,17?? 2,354,17?
Subtotal - Operating and Liquidation Expenses 17,393,693 17,393,690
Non-Recurring Expenses
Penalties Interest and Termination Fees 433,519 433,619
Litigation Losses 0
Subtotal - Non-Recurring Expenses 433,619 433,619
Total Liquidation Expenses 17,332,369 17,332,369
Net lncomeitLoss) from Operations 613,547,131?)
Net Change on Equityr Investments
Investments in Subsidiaries 9 
LLC Equity Interests 
Total Net Change on Equity Investments 5 5 0
Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims 0
Recoveries on Loss Share Claims 
Total Net Activity on Loss Share and Other Asset Claims 5 5 0

 

GainI(Loss) on Disposition of Assets
Securities 0 0
Consumer Loans 0 

FOFI USE ONLY

 

 

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 07i'11f2008
Statement at Operations (unaudited) For Period Ending: 12l31f2008
(Rounded in Dollars) Ftun Date Time: 05.052018 
Year-to-Date lnception-to-Date
Commercial Loans 0 0
Fieal Estate Mortgages (39,999,453?)
Other Assetstudgments (253,6?2) (253,6?2}
Owned Assets 0 0
Net investments in Subsidiaries 
Structured and Seouritized Assets 0 0
Total - Gainileoss} on Disposition of Assets ($90,253,158) ($90,253,153)
Net Incomet(Loss) of the Liquidation {$103,900,345} ($103,900,345)

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 18?

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AIIQWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is racognized when receitredj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

Art Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} provon or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerii
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% of the principal of proven
creditor claims has been aid.

Page 188

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovan?es: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tatt retund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tort agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expenses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY

INDYMAC FEDERAL BANK FSB
Fund Number: 1000?

Statement of Operations (unaudited)
{Rounded in Dollars)

Liquidation Revenues
Interest on Cash and Int/estments
interest and Other Operating Income on Assets
Securities
Consumer Loans
Commercial Loans
Heal Estate Mortgages
Other Assets and Judgments
Owned Assets
Structured and Securilized Assets
Recoveries from Charged-Off Assets

Subtotal - Interest and Other Operating Income
Non-Recurring Income

Professional Liability 7 Litigation Recoveries

Federal and State Income Tax Fiefunds

Other Miscellaneous Income

Subtotal - Non?Recurring Income
Total - Liquidation Revenues

Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses
Asset Management and Other Contractual Expenses
Asset Sales Expenses
Owned Asset Expenses
Legal and Other Professional Fees
Pro-closing Administrative Expenses
Travel and Other Liquidation Expenses

Subtotal - Operating and Liquidation Expenses

Non-Recurring Expenses
Penalties Interest and Termination Fees
Litigation Losses

Subtotal - Non-Recurring Expenses
Total Liquidation Expenses

Net Income-moss) from Operations

Net Change on Equityr Investments
Investments in Subsidiaries
LLC Equity Interests

Total Net Change on Equity Investments

Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims
Recoveries on Loss Share Claims

Total Net Activity on Loss Share and Other Asset Claims

Gaini(Loss) on Disposition of Assets
Securities
Consumer Loans

Yea r-to-Date

PASADENA, CA

Inception Date: 0771172003

For Period Ending: 1273172009

Run Date 8. Time: 051572018 

lnception-to-Date

 

 

 

 

 

 

 

 

 

 

 

7,905,645 7,969,675
53.229.465 53,229,435

0 0

0 0

29,367,706 30,413.133
5,633 5,633
2,506,916 2,506,916
4,393,710 4,393,710
3,731,204 3,731,204

93,734,653 94,230,035
10,332,301 10,332,301
107,764 107,764
2,236,126 5,791,766

3 12,676,691 16,232,351
114,316,939 113,502,111
7,102,362 11,957,576
42,530,101 52,441,232
35,510 35,510
12,240,275 12,240,275
22,745,603 23,024,241
2,573,931 2,573,931
27,005,060 29,359,236

114,233,411 131,632,101
63,332,153 33,615,772
265,666,662 265,966,662

369,349,015 369,732,634
433,562,426 501,414,735
($359,265,437) ($332,912,624)
55,901,312 55,901,312

0 0

6 55,901,312 5 55,901,312
[10,614,075] (10,314,075)

0 0

 INFEW USE ONLY

 

 

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 07:111'2008
Statement of Operations (unaudited) For Period Ending: 1251,2009
{Rounded in Dollars) Run Date 8. Time: 05152018 
Year-to-Date lnoeption-to-Date
Commercial Loans 95 0
Fieal Estate Mortgages {76,884,671} 
Other Asseterudgments (31.716295) (31.96396?)
Owned Assets [89.132776] 
Net lnvaslments in Subsidiaries t}
Structured and Seouritized Assets (12115360)
Total - Gain?Loss} on Disposition of Assets ($310,916,336)
Net IncomerrLoss) of the Liquidation {$534,026,803} 

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 (Period 04}

Page 191

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown undtar the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount mired by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss AIIQWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is racognized when receitredj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has become probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerii
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 192

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fixed and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expenses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY

INDYMAC FEDERAL BANK FSB
Fund Number: 10007

Statement o1 Operations (unaudited)
(Rounded in Dollars)

Liquidation Revenues

Yea r-to-Date

PASADENA, CA
Inception Date: 0771172008
For Period Ending: 1273172010

Ftun Date 8: Time: 05(1572018 

lnoeption-to-Date

 

 

 

 

 

 

 

 

 

 

 

Interest on Cash and Investments 5 4,436,802 12,426,477
Interest and Other Operating Income on Assets
Securities 23.773.635 77,003.120
Consumer Loans 0 0
Commercial Loans 0 0
Fleal Estate Mortgages 19,114,709 49,527,848
Other Assets and Judgments 6,11? 11 ,750
Owned Assets 1,463,362 3,970,278
Structured and Securitized Assets 17,410,907 21 ,804,61 7
Recoveries from Charged-Off Assets 855,664 4,586,868
Subtotal - Interest and Other Operating Income 62,624,395 156,904,480
Non-Recurring Income
Professional Liability 7 Litigation Recoveries 44,297,902 54,630,703
Federal and State Income Tax Refunds 7,063,206 7,170,970
Other Miscellaneous Income 7,123,360 12,915,146
Subtotal Non~FIecurring Income 58,484,468 74,716,819
Total Liquidation Revenues 125,545,665 244,047,776
Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses 6,814,260 18,771,835
Asset Management and Other Contractual Expenses 28,672,582 81,113,865
Asset Sales Expenses 195,939 231,449
Owned Asset Expenses 1,737,802 13,978,077
Legal and Other Professional Fees 22,637,962 45,662,203
Pre-closing Administrative Expenses 39,336,294 41,910,274
Travel and Other Liquidation Expenses 22,004,256 51,363,492
Subtotal - Operating and Liquidation Expenses 15 121,399,094 253,031,195
Non?Recurring Expenses
Penalties Interest and Termination Fees 73,632,587 157,448,359
Litigation Losses (40,000,000) 245,966,862
Subtotal - Non-Recurring Expenses 31 33,632,587 403,415,221
Total Liquidation Expenses 155,031,682 656,446,417
Net Income-(moss) from Operations ($29,486,017) ($412,398,641)
Net Change on Equityr Investments
Investments in Subsidiaries (109,914,459) (54,012,647)
LLC Equity Interests 104,701 104,701
Total Net Change on Equityr Investments ($109,809,758) ($53,907,946)
Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims (353,533) (353,533)
Recoveries on Less Share Claims 0 0
Total Net Activity on Loss Share and Other Asset Claims ($353,533) ($353,533)
Gaint(Loss) on Disposition of Assets
Securities (33,326,231) (44,140,306)

Consumer Loans 0 0

FOFI USE ONLY

 

 

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 07i'11f2008
Statement at Operations (unaudited) For Period Ending: 12l31f2010
(Rounded in Dollars) Ftun Date Time: 05.052018 
Year-to-Date lnception-to-Date
Commercial Loans 0 0
Fieal Estate Mortgages {12,609,195} {179,493,352)
Other Assetstudgments (33,741,895) (85,?11 ,962]
Owned Assets [64.523300] 
Net investments in Subsidiaries (4) (4)
Structured and Seouritized Assets (403,?04,390) {415,819,760}
Total - Gainileoss} on Disposition of Assets {$547,905,115} ($858,821,452)
Net Incomet(Loss) of the Liquidation {$587,554,423} ($1,325,481,571)

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April, 2018 {Period 04}

Page 195

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver fora tailed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include loos allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount cured by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss Allowances: Assets of a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued otter failure but is racognized when receivadj: the foreclosed
value of real andtor personai property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

Art Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisailowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss payments
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses diifIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the lil-teiihood of loss has became probable. A
receivership may be subject to significant losses lrorn cases where uncertainties prevent a reasonable ascessmerli
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% of the principal of proven
creditor claims has been aid.

Page 196

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. that-EB are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tart law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pro-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. ot the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. if a receivership ?les for a refund from federal or

state tart agencies. the potential tart retund estimate is disclosed. Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behall. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation such as receivership-specific direct expenses. assets In liquidation and
administrators liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY

INDYMAC FEDERAL BANK FSB
Fund Number: 10007

Statement ot Operations (unaudited)
(Rounded in Dollars)

Liquidation Revenues
Interest on Cash and Investments
Interest and Other Operating Income on Assets
Securities
Consumer Loans
Commercial Loans
Fieal Estate Mortgages
Other Assets and Judgments
Owned Assets
Structured and Securitized Assets
Recoveries from Charged-Off Assets

Subtotal - Interest and Other Operating Income
Non-Recurring Income

Professional Liability 1' Litigation Flecoveries

Federal and State Income Tax Refunds

Other Miscellaneous Income

Subtotal Non~Ftecurring income
Total Liquidation Revenues

Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses
Asset Management and Other Contractual Expenses
Asset Sales Expenses
Owned Asset Expenses
Legal and Other Professional Fees
Pre-closing Administrative Expenses
Travel and Other Liquidation Expenses

Subtotal - Operating and Liquidation Expenses

Non?Recurring Expenses
Penalties Interest and Termination Fees
Litigation Losses

Subtotal - Non-Recurring Expenses
Total Liquidation Expenses

Net Income?Loss) from Operations

Net Change on Equity Investments
Investments in Subsidiaries
LLC Equity Interests

Total Net Change on Equity Investments

Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims
Recoveries on Loss Share Claims

Total Net Activity on Loss Share and Other Asset Ciaims

GainI(Loss) on Disposition of Assets
Securities
Consumer Loans

Yea r-to-Date

lnception-to-Date

PASADENA, CA
Inception Date: 0771172008
For Period Ending: 1273172011

Ftun Date 81 Time: 05i151?2018 

 

 

 

 

 

 

 

 

 

 

5 1,471,353 3 13,393,349
11.975995 33.939925

9 9

9 9

3,953,949 52,591,737
39,543 42,293
159,755 4,139,942
13,337,532 35,392,149
435,994 5,922,372

3 29,554,595 3 135,459,174
13,932,953 72,712,751
3,999,913 15,979,932
7,514,992 29,439,139

3 34,497,953 3 199,213,331
3 55,523,529 3 399,571,395
7,737,155 25,595,991
25,774,113 197,337,932
115,923 343,375
2,245,343 15,223,929
9,555,573 55,325,375

9 41,919,274

9,925,142 51,233,534

3 55,455,353 3 399,497,953
33,357,999 195,395,349

9 245,955,352

3 33,357,999 3 441,773,211
3 94,323,343 3 751,279,255
($29,399,223) ($441,593,559)
(9,159,291) (53,171,349)
1,311,357 1,415,953
($7,347,335) (551,755,731)
11,492,523) {1,345,155}

9 9
{31,492,523} (31,345,155)

 

{15,651,349}
Cl

(50,?91,555)

0

INDYMAC FEDERAL BANK FSB
Fund Number: 1000?

Statement of Operations (unaudited)
{Rounded in Dollars)

Commercial Loans

Fisal Estate Mortgages

Other Asseterudgments

Owned Assets

Net invaslments in Subsidiaries
Structured and Securitized Assets

Total - GainKLoss} on Disposition of Assets

Net IncomerrLoss) of the Liquidation

USE ONLY
PASADENA, CA
Inception Date: 07:1?2008
For Period Ending: 12i31f2011
Run Date 8. Time: 05i15t2ti18 

 

 

 

Year-to-Date lnception-to-Date

0 a 0
{12,869,671} {192,363,023}
{362328.033}
(4.336.901) {15?.992.9?8]


{144.153.7301 {559.933.4803
,333,959,174}
{$513,773,403} 

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 (Period 04}

Page 199

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"i. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time lrames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deterred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more lully in the paragraphs that follow. are adopted for all
assets and liabilities. in general. transactions are recorded when cash is received or disbursed. Accruais may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transterred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other Receivable typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets ot a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is recognized when receivadj: the foreclosed
value of real andror personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a ponion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when anticipated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines lallowsrdisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise ti proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss payments
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses differ from those which are probable in that liter-e

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrorn cases where uncertainties prevent a reasonable assassmerlt
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toil principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 200

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during Fire-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fixed and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI INFEMIJ USE ONLY

INDYMAC FEDERAL BANK FSB
Fund Number: 1000?

Statement of Operations (unaudited)
{Rounded in Dollars)

Liquidation Revenues
Interest on Cash and InVestments
interest and Other Operating Income on Assets
Securities
Consumer Loans
Commercial Loans
Heal Estate Mortgages
Other Assets and Judgments
Owned Assets
Structured and Securitized Assets
Recoveries from Charged-Off Assets

Subtotal - Interest and Other Operating Income
Non-Recurring Income

Professional Liability i Litigation Recoveries

Federal and State Income Tax Flefunds

Other Miscellaneous Income

Subtotal - Non?Recurring income
Total - Liquidation Revenues

Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses
Asset Management and Other Contractual Expenses
Asset Sales Expenses
Owned Asset Expenses
Legal and Other Professional Fees
Pro-closing Administrative Expenses
Travel and Other Liquidation Expenses

Subtotal - Operating and Liquidation Expenses

Non-Recurring Expenses
Penalties Interest and Termination Fees
Litigation Losses

Subtotal - Non-Recurring Expenses
Total Liquidation Expenses

Net from Operations

Net Change on Equityr Investments
Investments in Subsidiaries
LLC Equity Interests

Total Net Change on Equity Investments

Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims
Recoveries on Loss Share Claims

Total Net Activity on Loss Share and Other Asset Claims

Gaini(Loss) on Disposition of Assets
Securities
Consumer Loans

Yea r-to-Date

PASADENA, CA
Inception Date: 07:111?2008
For Period Ending: 1213112012

Run Date 8: Time: 0511512018 

lnception-to-Date

 

 

 

 

 

 

 

7.212.902 21.111.241
3.963.932 97,949,007

0 0

0 0

706.403 53.293.190

62 42.330

117.365 4.247.903
3.123.352 43,316,001
445.603 5.463.475

13,362,767 3 204,321,941
5.234.606 77.947367
4,630 16,075,612
(2.424.869) 13.005.269

2.314.367 112,023,243
3 23,390,035 337,961,431
4.300.213 31.309.203
17.612.700 125.500.1532
19.917 363.293
402.571 16.326.491
12.532.964 67,361,640

0 41.910274

275.352 61,564.536

3 35,644,316 345,141,370
10,330,696 206,637,045
6.316 245,973,173

3 10,637,011 452,610,223
3 46,431,323 797,751,593
{$13,091,293} ($459,790,162)
(19.449552) 132.621.4011
675.325 2,091,394

 

($13,774,227)

($30,530,007)

 

{345.429.8961



 

 

6,715,120 6.715.120
($339,714,776) ($341,560,932)
[13,652,896] (74,444.5521

{3 

FOFI USE ONLY

 

 

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 07f11l2008
Statement of Operations (unaudited) For Period Ending: 12t31f2012
{Rounded in Dollars) Run Date Time: 05l15t2018 
Year-to-Date lnoeption-to-Date
Commercial Loans 95 0 0
Fieal Estate Mortgages {3,130,476} {195,493,499}
Other Asseterudgments (9,433,334) {372,311 
Owned Assets (4533,32?) {152,026,305}
Net anestments in Subsidiaries 2 
Structured and Securitized Assets (83,159,134) {543,142,514}
Total - GainKLoss} on Disposition of Assets {$114,059,665} ,443,018,839}
Net IncomerrLoss) of the Liquidation ($490,639,961) ($2,329,399,940)

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April, 2018 (Period 04}

Page 203

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deterred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transterred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Aeoutring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss AIIQWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is recognized when receivadj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisailowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andior an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the clalmts) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncerlainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 204

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fixed and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY

INDYMAC FEDERAL BANK FSB
Fund Number: 1000?

Statement of Operations (unaudited)
{Rounded in Dollars)

Liquidation Revenues
Interest on Cash and Int/estments
interest and Other Operating Income on Assets
Securities
Consumer Loans
Commercial Loans
Heal Estate Mortgages
Other Assets and Judgments
Owned Assets
Structured and Securilized Assets
Recoveries from Charged-Off Assets

Subtotal - Interest and Other Operating Income
Non-Recurring Income

Professional Liability i Litigation Recoveries

Federal and State Income Tax Fiefunds

Other Miscellaneous Income

Subtotal - Non?Recurring Income
Total - Liquidation Revenues

Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses
Asset Management and Other Contractual Expenses
Asset Sales Expenses
Owned Asset Expenses
Legal and Other Professional Fees
Pro-closing Administrative Expenses
Travel and Other Liquidation Expenses

Subtotal - Operating and Liquidation Expenses

Non-Recurring Expenses
Penalties Interest and Termination Fees
Litigation Losses

Subtotal - Non-Recurring Expenses
Total Liquidation Expenses

Net lncomei(Loss) from Operations

Net Change on Equityr Investments
Investments in Subsidiaries
LLC Equity Interests

Total Net Change on Equity Investments

Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims
Recoveries on Loss Share Claims

Total Net Activity on Loss Share and Other Asset Claims

Gaini(Loss) on Disposition of Assets
Securities
Consumer Loans

Yea r-to-Date

PASADENA, CA
Inception Date: 
For Period Ending: 12i31f2013

Run Date 8: Time: 051?1 51"2018 

lnception-to-Date

 

 

 

 

 

 

 

 

 

 

 

3.347.022 3 25.053234
10.333.223 103347235

0 0

0 0

303.303 53.303.037
4.333 47.353

3.135 4.257.043
7.334.401 51.730.402
433.133 5.354.357

3 13,372,350 5 224,434,732
5.327.374 33.275341

0 13,075,312

535.345 13.531214

3 5.313.313 117,342,133
3 23,533,732 3 337,435,223
15.307741 43.313344
7.377333 133.373.315
115.333 433.323

41.073 13.337.570
5.330.353 73.322.733

0 41,310.274

333.033 32,427,371

3 30,135,133 3 375,307,502
3.034.170 203,731,215

0 245373173

5 3,034,170 31 455,704,333
3 33,230,302 331,011,335
{33,723,510} (3453513572)
11303337 171.314.5041
403.133 2,433,573

3 11,715,030 (333,314,327)
{203.353.7331 {555.134.3441
13.130523 13.305543
{$133,333,270} ($535,223,201)
(5.410.403) 173,354,331)

0 0

FOFI USE ONLY

 

 

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 07:1?2008
Statement of Operations (unaudited) For Period Ending: 12r31f2013
{Rounded in Dollars) Run Date 8. Time: 05152018 
Year-to-Date lnoeption-to-Date
Commercial Loans 95 0
Fieal Estate Mortgages {196.172.2545}
Other Asseterudgments (18,137,343) {390.499.2101
Owned Assets (93.012) (152719.31?)
Net aneslments in Subsidiaries [l 
Structured and Securitized Assets (47,334,622) 
Total - GainitLoss} on Disposition of Assets 
Net IncomerrLoss) of the Liquidation (52514333332) 

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 (Period 04}

Page 207

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time lrames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deterred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transterred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWanoes: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is reoognized when receivadj: the foreclosed
value of real andior personai property or the book value of assets {cost less depreciation or amortization through
data of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Ari Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quaiity and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisailowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise ti provon or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law governing the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that liter-e

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has Deceme probable. A
receivership may be subject to significant losses from cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the clalmts) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 203

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY

INDYMAC FEDERAL BANK FSB
Fund Number: 1000?

Statement of Operations (unaudited)
{Rounded in Dollars)

Liquidation Revenues
Interest on Cash and Investments
interest and Other Operating Income on Assets
Securities
Consumer Loans
Commercial Loans
Heal Estate Mortgages
Other Assets and Judgments
Owned Assets
Structured and Securilized Assets
Recoveries from Charged-Off Assets

Subtotal - Interest and Other Operating Income
Non-Recurring Income

Professional Liability i Litigation Recoveries

Federal and State Income Tax Fiefunds

Other Miscellaneous Income

Subtotal - Non?Recurring Income
Total - Liquidation Revenues

Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses
Asset Management and Other Contractual Expenses
Asset Sales Expenses
Owned Asset Expenses
Legal and Other Professional Fees
Pro-closing Administrative Expenses
Travel and Other Liquidation Expenses

Subtotal - Operating and Liquidation Expenses

Non-Recurring Expenses
Penalties Interest and Termination Fees
Litigation Losses

Subtotal - Non-Recurring Expenses
Total Liquidation Expenses

Net lncomei(Loss) from Operations

Net Change on Equityr Investments
Investments in Subsidiaries
LLC Equity Interests

Total Net Change on Equity Investments

Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims
Recoveries on Loss Share Claims

Total Net Activity on Loss Share and Other Asset Claims

Gaini(Loss) on Disposition of Assets
Securities
Consumer Loans

Yea r-to-Date

PASADENA, CA
Inception Date: 07:11i2008
For Period Ending: 12i31i2014

Run Date 81 Time: 051?1 51"2018 

lnception-to-Date

 

 

 

 

 

 

 

 

 

 

 

3 2,340,545 3 27,393,303
(5.755.773; 103.031.457

0 0

0 0

234.153 53.342249
3,451,135 3,493,542

435 4.257.523
23,332,750 30,453,152
543,173 3500.330

5 27,143,953 3 251,543.750
42,330,094 123,155,435
0 15,075,512

(1 337,409) 13,303,303

3 41,092,535 159,034,352
3 70,532,193 31 433,077,420
7,443,932 54,030,925
9.499.354 142,373,439
203,219 339,349
15,257 13.532323
2,195,991 75,015,739

0 41,910.274

3,132,130 53,539,301

3 25,523,432 3 400,330,934
2,432,440 212,193,355

0 245,973,173

3 2,432,440 453,155,333
5 27,935,372 15 353,997,737
5 42,595,325 ($420,920,347)
21,309,523 (50,004.930)
211,330 2,710,953

3 21,520,903 {347,294,025}
(135.714.3241 (740.349.4331
13,301,235 33,703,923
{$153,913,339} ($702,142,540)
3,335,307 (70,939,353)

0 0

FOFI INFEW USE ONLY

 

 

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 07:1?2008
Statement of Operations (unaudited) For Period Ending: 12r31r2014
{Rounded in Dollars) Run Date 8. Time: 
Year-to-Date lnoeption-to-Date
Commercial Loans 95 0 0
Fleet Estate Mortgages {913,095} {197,085,389}
Other Asseterudgments (151:33?) 
Owned Assets (92.032) (152.811.3149)
Net theslments in Subsidiaries 0 
Structured and Securitized Assets [23,350,735] 
Total - GainKLoss} on Disposition of Assets ($20,631,391) 
Net IncomerrLoss) of the Liquidation {$123,428,001} 

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 (Period 04}

Page 211

Notes- to Financial Statements:

1. Basis of Accounting: The Hill Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"i. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets oi the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude. At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include loos allowances; partial write downs: prepaid. deferred or accrued expenses
having no recovery value; and accrued or deterred income. Restated balances are shown undtar the inception
Balance heading of the Statement at Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: its appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may 

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect oi the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satisfied when a
receivership receives cash from Corporate or when a receivership declares a dividend and oilsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satistied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss Alloyvances: Assets of a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued alter failure but is rocognized when receivadj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date or the institution's failure}; and the historical cost or the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a recalvership?s ponion oi the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when antibipated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} ior similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsldisallowsj claims and distributes
proceeds derived from the disposition oi the failed institution?s assets according to applicable state and tederai

law governing the payment of creditor claims. Recorded liabilities comprise t} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preterence or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded tor probable litigation

liabilities. the Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses diifIr from those which are probable in that there

is a lesser likelihood oi loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses irorn cases where uncertainties prevent a reasonable assessment
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimls} held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. alter a receiver is appointed. Uncerlainiies exist as to the universe oi creditors
whose claims will ultimately be allowed and whether creditors will receive the iull principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 212

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated Interact on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Oi?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pro-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. It a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behait. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI INTEWB USE ONLY

INDYMAC FEDERAL BANK FSB PASADENA, CA

Fund Number: 10007 Inception Date: 0771172003

Statement of Operations (unaudited) For Period Ending: 1273172015

{Rounded in Dollars) Run Date 8. Time: 0571572013 12:31 
Year-to-Date lnception-to-Date

 

Liquidation Revenues

 

 

Interest on Cash and IHVestrnents 4,009,750 31,403,553
interest and Other Operating Income on Assets
Securities 6.026.427 109,107.334
Consumer Loans 0 0
Commercial Loans 0 0
Heal Estate Mortgages 161,101 54,003,351
Other Assets and Judgments 519.162 4.017.704
Owned Assets 109,221 4,366,749
Structured and Securitized Assets 11,036,735 91,549,933
Recoveries from Charged-Off Assets 1.699.631 3.200.462
Subtotal - Interest and Other Operating Income 19,602,323 271,246,033
Non-Recurring Income
Professional Liability 7 Litigation Recoveries 5,436,573 131,642,007
Federal and State Income Tax Flefunds 49,597 16,125,210
Other Miscellaneous Income 221,353 17,025,663
Subtotal - Non?Recurring Income 5,753,023 164,792,330
Total - Liquidation Revenues 29,370,106 467,447,526

Liquidation Expenses
Operating and Liquidation Expenses

 

FDIC Billed Expenses 6,350,360 60,411,736
Asset Management and Other Contractual Expenses 6.147.917 149.026.336
Asset Sales Expenses 102.503 792.352
Owned Asset Expenses 400 16,633,226
Legal and Other Professional Fees 4,457,245 30,476,034
Pre-closing Administrative Expenses 0 41 ,910.274
Travel and Other Liquidation Expenses 125,026 63,714,327
Subtotal - Operating and Liquidation Expenses 17,133,951 413,014,335

Non-Recurring Expenses

 

 

 

 

 

 

Penalties Interest and Termination Fees 1,320,933 213,514,639
Litigation Losses 0 245,973,178
Subtotal - Non-Recurring Expenses 1,320,933 459,437,316
Total Liquidation Expenses 13,504,935 377,502,702
Net Incomer'tLoss) from Operations 5 10,365,171 (5410,0551 73)
Net Change on Equityr Investments
Investments in Subsidiaries {13,539,635} [613.594.6651
LLC Equity Interests 230,332 2,991,333
Total Net Change on Equity Investments ($13,303,303) ($60,602,327)
Net Activity on Less Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims (122,407,423) {363,256,396}
Recoveries on Less Share Claims 13,361,551 52,063,479
Total Net Activity on Loss Share and Other Asset Claims ($109,045,377) ($311,133,417)

 

Gaini(Loss) on Disposition of Assets
Securities (5,547,327) (76,517,430)
Consumer Loans 0 0

FOFI INFEW USE ONLY

 

 

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 07f11l2008
Statement of Operations (unaudited) For Period Ending: 12t31f2015
{Rounded in Dollars) Run Date 8. Time: 051151'2018 12:31 
Year-to-Date lnoeption-to-Date
Commercial Loans 96 0 0
Fieal Estate Mortgages (23,935} {197,109,325}
Other Asseterudgments (336,683) {3511.431230]
Owned Assets 0 (152,811.349]
Net aneslments in Subsidiaries 0 
Structured and Seouritized Assets (3,831,505) 
Total - Gain?Loss} on Disposition of Assets ($15,239,950) $55,644,863)
Net lnoometrLoss) of the Liquidation {$126,729,459} 

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April, 2018 (Period 04}

Page 215

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subregated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss Allovvances: Assets of a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is rocognized when receitredj: the foreclosed
value of real andror personal property or the book value of assets {cost less depreciation or amortization through
data of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerlt
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the tull principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 216

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fixed and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI INFEME USE ONLY

INDYMAC FEDERAL BANK FSB PASADENA, CA

Fund Number: 10007 Inception Date: 0771112005

Statement of Operations (unaudited) For Period Ending: 1273172015

{Rounded in Dollars) Run Date 8. Time: 0511572018 
Year-to-Date lnception-to?Date

 

Liquidation Revenues

 

 

 

 

 

 

 

 

 

Interest on Cash and Intrastrnents 4,195,255 35,504,525
Interest and Other Operating Income on Assets
Securities 7,460,775 115.555.5150
Consumer Loans 0 0
Commercial Loans 0 0
Heal Estate Mortgages 125,435 54,131 ,755
Other Assets and Judgments 452,749 4,500,453
Owned Assets 3,500 4,370,249
Structured and Securitized Assets 11,555,753 103,415,591
Recoveries from Charged-Off Assets 1,270,535 9,471,000
Subtotal - Interest and Other Operating Income 21,214,750 5 292,450,535
Non-Recurring Income
Professional Liability 7 Litigation Recoveries 41,410,027 173,052,035
Federal and State Income Tax Flefunds 4,527,245 20,552,457
Other Miscellaneous Income {5,433,717} 5,591,945
Subtotal - Non?Recurring Income 5 37,503,555 202,295,435
Total - Liquidation Revenues 52,914,575 530,352,103
Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses 4,750,559 55,152,445
Asset Management and Other Contractual Expenses 4,370,905 153,397,294
Asset Sales Expenses 113,949 905,301
Owned Asset Expenses 0 15,553,225
Legal and Other Professional Fees 794,055 51,270,102
Pro-closing Administrative Expenses 155,904 42,059,175
Travel and Other Liquidation Expenses 30,923 55,745,750
Subtotal - Operating and Liquidation Expenses 10,219,411 425,234,295
Non-Recurring Expenses
Penalties Interest and Termination Fees 11,552,112 225,195,750
Litigation Losses 0 245,973,175
Subtotal - Non-Recurring Expenses 11,552,112 471 ,159,923
Total Liquidation Expenses 21,901,522 599,404,224
Net lncomeitLoss) from Operations 5 41,013,054 {5369,0421 21)
Net Change on Equityr Investments
Investments in Subsidiaries 15,557,295 (47,027,372)
LLC Equity Interests (407,435) 2,554,400
Total Net Change on Equity Investments 5 15,159,555 ($44,442,972)
Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims (103,565,545) (957,122,442)
Recoveries on Loss Share Claims 11,755,545 53,527,027
Total Net Activity on Loss Share and Other Asset Claims ($92,105,995) ($903,295,415)

 

Gainl(Loss) on Disposition of Assets
Securities (45,054,537) (124,572,315)
Consumer Loans 0 0

FOFI USE ONLY

 

 

 

INDYMAC FEDERAL BANK FSB PASADENA, CA
Fund Number: 10007 Inception Date: 07:1?2008
Statement of Operations (unaudited) For Period Ending: 12i31f2016
{Rounded in Dollars) Run Date 8. Time: 05l15l2tt18 
Year-to-Date lnception-to?Date
Commercial Loans 95 
Fieal Estate Mortgages (191,146) (191300.471)
Other Assetleudgments 
Owned Assets 0 (162.811.3419)
Net lnvaslments in Subsidiaries 
Structured and Seouritized Assets {9,280,195} (?33.999.572)
Total - Gain?Loss) on Disposition of Assets ($59,595,549) 
Net lneomet(Loss) of the Liquidation ($94,530,538) 62.932.021.920)

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 (Period 04)

Page 219

Notes- to Financial Statements:

1. Basis of Accounting: The Hill Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets of the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude. At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expenses
having no recovery value; and accrued or deferred income. Restated balances are shown undtar the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more iuliy in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may 

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transterred exceeds the amount of assets sold to an acquiring institution. This receivable is satisfied when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivarship and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss Allowances: Assets of a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is racognized when receivadj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as wall as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisaliowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise t} provan or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss paymInts
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses diifIr from those which are probable in that liters

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses irom cases where uncertainties prevent a reasonable assessment
of the ultimate outcome andior an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis} held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 220

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI INFEW USE ONLY

INDYMAC FEDERAL BANK FSB PASADENA, CA

Fund Number: 10007 Inception Date: 0771112003

Statement of Operations (unaudited) For Period Ending: 1213172017

{Rounded in Dollars) Run Date 8. Time: 0511512013 
Year-to-Date lnception-to-Date

 

Liquidation Revenues

 

 

Interest on Cash and IHVestrnents 11,439,949 47,994,775
interest and Other Operating Income on Assets
Securities 5.321.423 121,390,033
Consumer Loans 9 0
Commercial Loans 0 0
Heal Estate Mortgages 111.373 54.243.653
Other Assets and Judgments 612,129 5,112,532
Owned Assets 0 4,370,249
Structured and Securitized Assets 9.999.652 113,413,353
Recoveries from Charged-Off Assets 21,773 9.492.773
Subtotal - Interest and Other Operating Income 16,066,365 3 303.527.704
Non-Recurring Income
Professional Liability 7 Litigation Recoveries 2.343.529 175,395,564
Federal and State Income Tax Flefunds 0 20,352,457
Other Miscellaneous Income (73,793,741) (70,203,795)
Subtotal - Non?Recurring Income ($76,455,212) 125,341,225
Total - Liquidation Revenues ($43,393,397) 431,463,705

Liquidation Expenses
Operating and Liquidation Expenses

 

FDIC Billed Expenses 3.972.299 69,134,744
Asset Management and Other Contractual Expenses 3.733.907 157,133.201
Asset Sales Expenses 20.947 927,243
Owned Asset Expenses 0 13,633,223
Legal and Other Professional Fees 1,015,024 32,235,125
Pre-closing Administrative Expenses 0 42,039,173
Travel and Other Liquidation Expenses 12,913 63,753,369
Subtotal - Operating and Liquidation Expenses 3,310,095 437,044,391

Non-Recurring Expenses

 

 

 

 

 

 

Penalties Interest and Termination Fees 35,427,741 261,624,491
Litigation Losses 3 245,973,178
Subtotal - Non-Recurring Expenses 33,427,741 507,597,369
Total Liquidation Expenses 45,237,333 944,342,030
Net lncomeitLoss) from Operations {$94,136,233} ($463,173,355)
Net Change on Equityr Investments
Investments in Subsidiaries 575.640 (43,451,733)
LLC Equity Interests (55.355) 2,523,044
Total Net Change on Equity Investments 3 519,234 ($43,923,633)
Net Activity on Less Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims [53,709,379] [1,023,332,321]
Recoveries on Less Share Claims 9.040.339 72,337,355
Total Net Activity on Loss Share and Other Asset Claims {$47,669,540} ($950,964,955)

 

Gaini(Loss) on Disposition of Assets
Securities [12.531 .1331 {137.103.4551
Consumer Loans 0 0

INDYMAC FEDERAL BANK FSB
Fund Number: 10007

Statement ot Operations (unaudited)
(Rounded in Dollars)

Commercial Loans

Real Estate Mortgages

Other Assetstudgments

Owned Assets

Net investments in Subsidiaries
Structured and Securitized Assets

Total - Gainileoss} on Disposition of Assets

Net Incomei(Loss) of the Liquidation

FOFI USE ONLY
PASADENA, CA
Inception Date: 07i'11i2008
For Period Ending: 12r31r2017
Ftun Date Time: 05i15r201812:33:19PM

 

 

 

Year-to-Date lnception-to-Date

0 0
(3.365] {191303336}

0 {393,557,600}

0 (162.811.3149)

0 


($33,433,110) 
($3.11 1,191,520)

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 223

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time lrames to conclude- Fit the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deterred income. Restated balances are shown undtar the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: its appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subregated deposit liability claim.

The line item Due from Acquiring Institution and Other Receivabll typically includes the net effect of post?closing

asset and liability adjustments between the and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AllIoWances: Assets of a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is rocognized when receitredj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date or the institution's failure}; and the historical cost or the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when anticipated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise prevent or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses diff-r from those which are probable in that liters

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has Deceme probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable ascessmerii
of the ultimate outcome andior an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 224

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fixed and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR IN 59155 USE (ZlNLi?r
LA JOLLA BANK, FSB 155
Fund Number: 10185
Statement of Assets 31 Liabilities in Liquidation (unaudited)
{Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorfCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven Depositon?Creditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception 5 Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsl?ineticit)
Net Assets 7? {Deficit} At Inception
Premiums Fleceived i (Paid) at Flesolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net income;i (Loss) of the Liquidation Since Inception

Total Net AssetsfiDeticit)

Total Liabilities and Net AssetsHDeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

Current Balance

LA JOLLA, CA
Inception Date: 02i19!2010

For Period Ending: December 31, 2010
Run Date a Time: 05H 51'2013 

Inception Balance

 

3.533.215
435.035.1213
1143.747)

0

10.030371
4T.681.591
209.632.006
14,649,520
3.153.453

[l

0

0




73,594,926
143,455,104
91.266.270.680
512505.750
44,583.82?

0

Ci

 

235.24T.E41
179369376

4.220.074.1398


 

599,349,453

3: 4,220,074,033

 

 

 

 

 

 

 

304.522 0
533.354 533.570.1351 0

535,445,327 111 0
1.042.310.213 0

0 0

31,707,327 0

0 0

1,104,523,340 0
0 0

0 0

0 3.342.507.5113

0 3,342,507,313
at 1.334.039.1157 3,342,507,913
377336.135 377533.135
(433,310,000) 0
(170,333,773) 3
(534.725.2321 0
(201.530.3351 0

 

(151.004.713.703)

3?7,566,135

 

599,349,453



 

 

0

 INFEW USE ONLY

 

 

LA JOLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: O2f19f2010
Statement at Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2010
(Rounded in Dollars) Hun Date 8: Time: 05f15f2018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 0

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 22?

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subregated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is rocognized when receivadj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when anticipated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses irom cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on prevail creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 223

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during Fire-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expenses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR IN 54% USE 
LA JOLLA BANK, FSB 155
Fund Number: 10185
Statement of Assets 31 Liabilities in Liquidation (unaudited)
(Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositoriCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven DepositoriCreditor Claims
Other Claims

Other Contingent Creditor Claims (Note 

Other Subordinated Obligations

Liabilities at inception - Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsl?ineticit)
Net Assets 7? {Deficit} At Inception
Premiums Fleceived i (Paid) at Flesolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net incomeai (Loss) of the Liquidation Since Inception

Total Net AssetsiiDeticit)

Total Liabilities and Net Assetsiibeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

Current Balance

LA JOLLA, CA
Inception Date: 0271972010

For Period Ending: December 31, 2011
Run Date 8. Time: 057151'2018 

Inception Balance

 


404.802.2531
269.235

0

5,934,791
1,493,530
55.921008
19.441337


71.040323

0




73,594,936
143,455,104
BEE-6.270530
512505.750
44,583.82?

0

0

 

1 57.555353
1 04.93234?

11.220.074.098


 

463,393,693

3: 4,220,074,093

 

 

 

 

 

 

 

230.310 0
333.534 0
1,143,334 0

0 0

0 0

455.733.3333 0

3 437,577,320 3 0
1050333333 0

0 0

32115332 0

0 0

1,112,733,431 3.342.307.3113

0 3 3,342,507,313
1,570,373,051 :11 3,342,507,313
377333.135 377333.135
(433.310.0001 0
{333472521 0
(432,073,353) 0
(4313123341 0

 



3?7,566,135

 

468,393,633



 

 

0

FOH USE ONLY

 

 

LA JDLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 02i19f2010
Statement of Assets Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2011
(Rounded in Dollars) Run Date Time: 051152018 
Current Balance lnceptlen Balance
Estimated tax refund (Note 11) 0

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 231

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown undtar the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount buried by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transterred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is racognized when receitredj: the foreclosed
value of real andror personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss paymInts
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerii
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the clalmts) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 232

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during Fire-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expenses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR IN USE 
LA JOLLA BANK, FSB FE
Fund Number: 10185
Statement of Assets 31 Liabilities in Liquidation (unaudited)
(Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositoriCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven DepositoriCreditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception 5 Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsl?ineticit)
Net Assets 7? {Deficit} At Inception
Premiums Fleceived i (Paid) at Flesolution
Asset - Flelated Etiuiiq,r Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net income;i (Loss) of the Liquidation Since Inception

Total Net AssetsiiDeticit)

Total Liabilities and Net Assetsiibeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

LA JOLLA, CA

Inception Date: O2i19i2010

For Period Ending: December 31, 2012
Run Date 8. Time: 05(151'2018 

Current Balance

Inception Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 2.723492 3 0

370302231 0

373 0

0 173131511

0 73,594,925

0 143,455,104

41.333507 3,255,270,530

33.474155 512505750

545,329 44,533,327

0 0

45.703041 0

121,552,552 3 4,220,074,093

92,422,402 0

402,771,307 3 4,220,074,093

44,443 0

137.354 0

455,994 0

0 0

0 0

190,309,015 0

191,457,310 3 0

1.050.333359 0

0 0

32170,755 0

0 0

1,112,354,125 3343507513

3 0 5 3,342,507,913

1,304,311,435 11 3,342,507,913

377533135 377,555,135

(495,510,000) 0

(74,453,322) 0

(1971502751 0

(51 0.33771 71 0

($901,540,123) 3 377,555,135

402,771,307 3 4,220,074,093
0

 INFEW USE ONLY

 

 

LA JOLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 02f19f2010
Statement at Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2012
(Rounded in Dollars) Ftun Date 8: Time: 05(1512018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 1,102,157

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 235

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership-'5 average
lifespan is three to nine years. some may require longer time lrames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenais. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expenses
having no recovery value; and accrued or deterred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more luily in the paragraphs that follow. are adopted for all
assets and liabilities. in general. transactions are recorded when cash is received or disbursed. Accruais may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other Receivable typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss AlloWances: Assets ot a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is reoognized when receitredj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when anticipated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines lallowsidisaliowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} provon or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses diff-r from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrorn cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andior an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the ciaimls) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toil principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 236

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR IN USE 
LA JOLLA BANK, FSB FE
Fund Number: 10185
Statement of Assets 31 Liabilities in Liquidation (unaudited)
(Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositoriCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven DepositoriCreditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception 3 Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsl?ineticit)
Net Assets 7? {Deficit} At Inception
Premiums Fleceived i (Paid) at Flesolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net income;i (Loss) of the Liquidation Since Inception

Total Net AssetsiiDeticit)

Total Liabilities and Net Assetsiibeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

LA JOLLA, CA

Inception Date: 0211912010

For Period Ending: December 31, 2013
Run Date 8. Time: 05(151'2018 

Current Balance

Inception Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 2.374332 3 0

153342.353 0

13.171 0

0 173131311

0 73,504,325

30,500,000 143,455,104

4,401,304 3,235,270,330

44034702 512305750

0 44,333,327

0 0

23313021 0

105,374,027 3 4,220,074,003

77.557314 0

137,443,332 3 4,220,074,003

35.371 0

25 0

53,305 0

0 0

0 0

33,000,053 0

3 33,130,753 3 0

343333350 0

0 0

52170755 0

0 0

003,354,125 3,342,507,513

0 3 3,342,507,013

337,034,331 3 3,342,507,313

377535.135 377535.135

(433,310,000) 0

(53,533,334) 0

{04,350,312} 0

(523.337.0331 0

($730,535,040) 3 377,535,155

137,440,332 3 4,220,074,033
0

FOH INFEM USE ONLY

 

 

LA JDLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 02192010
Statement of Assets Liabilities in Liquidation {unaudited} Fer Period Ending: December 31, 2013
(Rounded in Dollars) Run Date Time: 051152018 
Current Balance Balance
Estimated tax refund (Note 11) 1,110.11?

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 239

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
i"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time lrames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis at accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deterred income. Restated balances are shown undtar the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receiv'ership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is reoognized when receivadj: the foreclosed
value of real andior personai property or the book value of assets {cost less depreciation or amortization through
data of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Ari Estimated Loss on Assets is provided when antioipated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} ior similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisailowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law governing the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has Deceme probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable ascessmerit
of the ultimate outcome andior an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimts) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 240

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated Interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR IN 53% USE (ZlNLi?r
LA JOLLA BANK, FSB FE
Fund Number: 10185
Statement of Assets 31 Liabilities in Liquidation (unaudited)
{Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorfCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven Depositon?Creditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception 4 Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsl?ineticit)
Net Assets 7? {Deficit} At Inception
Premiums Fleceived i (Paid) at Flesolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net incomeii (Loss) of the Liquidation Since Inception

Total Net AssetsfiDeticit)

Total Liabilities and Net AssetsHDeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

LA JOLLA, CA

Inception Date: 0211912010

For Period Ending: December 31, 2014
Run Date 8. Time: 05(151'2018 

Current Balance

Inception Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 13,974,334 3 0

133733503 0

13,111 0

0 173131311

0 73,534,323

30,500,000 143,453,104

0 3233270330

23.303020 512.303750

0 44,333,327

0 0

13.204333 0

3 72,510,419 3 4,220,074,093

53,422,331 0

194,317,372 3 4,220,074,093

333,111 0

0 0

195,310 0

0 0

0 0

3,117 0

534,537 3 0

343333333 0

0 0

32170753 0

0 0

303,354,125 3,342,507,313

0 3 3,342,507,913

909,443,333 3 3,342,507,313

377,533,135 377,533,135

(433,310,000) 0

(40,453,251) 0

(3,344,373) 0

(543,734,350) 0

($714,331,291) 3 377,533,135

194,317,372 3 4,220,074,093
3,514,037

 INFEQENMZ USE ONLY

 

 

LA JOLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 02f19f2010
Statement at Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2014
(Rounded in Dollars) Ftun Date 8: Time: 05(1512018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 1,00?,950

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 243

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deterred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transterred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss AIIQWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is racognized when receivadj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has Deceme probable. A
receivership may be subject to significant losses lrorn cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andior an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the clalmts) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncerlainiies exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 244

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during tore-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fixed and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR IN Mg USE (ZlNLi?r
LA JOLLA BANK, FSB FE
Fund Number: 10185
Statement of Assets 31 Liabilities in Liquidation (unaudited)
{Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorfCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven Depositon?Creditor Claims
Other Claims

Other Contingent Creditor Claims (Note 

Other Subordinated Obligations

Liabilities at inception 5 Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsl?ineticit)
Net Assets 7? {Deficit} At Inception
Premiums Fleceived i (Paid) at Flesolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net income;i (Loss) of the Liquidation Since Inception

Total Net AssetsfiDeticit)

Total Liabilities and Net AssetsHDeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

LA JOLLA, CA

Inception Date: 

For Period Ending: December 31, 2015
Run Date 8. Time: 05(151'2018 

Current Balance

Inception Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 37,333,232 0
71413533 3
43.333.534 3

3 173131311

3 73,534,323

25,333,152 143,453,134

3 3,233,273,333

4.431.334 512333.753

3 44,333,327

3 3

15.724351 3

45,332,437 4,223,374,333
31,344,325 3

171,347,324 3 4,223,374,333
133.333 3

3 3

141,163 0

3 3

3 3

11311708 0

3 12,122,253 3 3

751323235 3
3 3

33,545,313 3

3 3

733,433,354 3 3
3 3

25325.13? 3

3 3,342,537,313

25,325,137 3 3,342,537,313
323,213,244 3 3,342,537,313
377333.135 377,533,135
(433,313,333) 3
{13,373,343} 3
31.233.333 3
(552,375,223) 3

($354,333,321) 13 377,533,135

171,347,324 3 4,223,374,333

3.514.337

 INFEW USE ONLY

 

 

LA JOLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: O2f19f2010
Statement at Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2015
(Rounded in Dollars) Ftun Date 8: Time: 05(1512018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 1,00?,950

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 24?

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is rocognized when receitredj: the foreclosed
value of real andror personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses irom cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% of the principal of proven
creditor claims has been aid.

Page 243

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Ol?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tart law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pro-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. ot the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. ii a receivership ?les for a refund from federal or

state tart agencies. the potential tart retund estimate is disclosed. Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behall. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation such as receivership-specific direct expenses. assets In liquidation and
administrators liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR IN 54% USE 
LA JOLLA BANK, FSB 155
Fund Number: 10185
Statement of Assets 31 Liabilities in Liquidation (unaudited)
(Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositoriCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven DepositoriCreditor Claims
Other Claims

Other Contingent Creditor Claims (Note 

Other Subordinated Obligations

Liabilities at inception 5 Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsl?ineticit)
Net Assets 7? {Deficit} At Inception
Premiums Fleceived i (Paid) at Flesolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net incomeii (Loss) of the Liquidation Since Inception

Total Net AssetsiiDeticit)

Total Liabilities and Net Assetsiibeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

LA JOLLA, CA

Inception Date: 9201 

For Period Ending: December 31, 2016
Run Date 8. Time: 05(151'2018 

Current Balance

Inception Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3 43.732330 3 0
413,754 0
54,317,032 0

0 173131311
0 73,534,323
0 143,453,104
0 3,233,270,530
0 512303750
0 44,333,327
0 0
3,152,554 0

5 3.132554 3 4.220.074.0133
4531,277 0

3 103,345,023 3 4,220,074,033

4,713 0
0 0
30,127 
34,345 3 0

330323235 0
0 0

33,545,313 0

0 0

717,433,354 3 0
0 0

25,325,137 0

0 3,342,507,313

3 25,325,137 3 3,342,507,313

3 743,123,333 3 3,342,507,313
377533.135 377,533,135

(433,310,000) 0
13332302 0
43,575,773 0
(532,333,574) 0

($333,433,314) 3 377,533,135

3 103,345,023 3 4,220,074,033

0

FOH USE ONLY

 

 

LA JDLLA BANK, FSB LA JDLLA, CA
Fund Number: 10185 Inception Date: 02? 912010
Statement of Assets Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2016
(Rounded in Dollars) Run Date Time: 051152018 
Current Balance lnceptlen Balance
Estimated tax refund (Note 11) 0

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 251

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time trames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subregated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is racognized when receitredj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerlt
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 252

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Oi?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during tore-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share cl aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOR IN USE (ZlNLi?r
LA JOLLA BANK, FSB FE
Fund Number: 10185
Statement of Assets 31 Liabilities in Liquidation (unaudited)
{Rounded in Dollars)

Assets

Cash and investments

Receivable Due from FDIC (Note 3}

Due from Acquiring Institution and Other Receivables [Note 3}
Assets in Liquidation

Securities

Consumer Loans

Commercial Loans

Real Estate Mortgages

Other Assets/Judgments

Owned Assets

Net investments in Subsidiaries

Structured and Securitized Assets

Subtotal - Assets in Liquidation
Less: Estimated Loss on Assets in Liquidation {Note 4}

Total Assets

Liabilities (Note 5}
Administrative Liabilities
AccountsiNotes Payable
SuspensefEscrow Accounts
Due to FDIC for Billed Expenses
Due to for Borrowed Funds
Estimated Litigation Losses - Probable [Note 7}
Estimated Loss Share and Other Reserves (Note Bl

Subtotal - Administrative Liabilities
Proven DepositorfCreditor Claims

Due to FDIC for Subrogated Deposit Claims

Uninsured Deposit Claims Due Others

Other Creditor Claims

Estimated interest on Claims {Note 3}

Subtotal - Proven Depositon?Creditor Claims
Other Claims

Other Contingent Creditor Claims (Note 7)

Other Subordinated Obligations

Liabilities at inception 5 Unproven

Subtotal Other Claims
Total Liabilities

Net Assetsfineticit)
Net Assets 7? {Deficit} At Inception
Premiums Fleceived i (Paid) at Flesolution
Asset - Flelated Equityr Adjustments (Note 9)
Liabilitinlaims?Fielated Equity Adjustments (Note 9)
Net income;i (Loss) of the Liquidation Since Inception

Total Net AssetsfiDeticit)

Total Liabilities and Net AssetsHDeficit)

Estimated additional litigation losses considered reasonably possible: (Note 7)

LA JOLLA, CA

Inception Date: 

For Period Ending: December 31, 201?
Run Date 8. Time: 05(151'2018 

Current Balance

Inception Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5 15,437,553 5

5 5

54,293,755 5

5 173151511

5 73,594,925

5 143,455,154

5 3,255,275,555

5 512,955,755

5 44,553,527

5 5

1.749523 5

1.749.523 5 4,225,574,595

599.549 5

65,?31 ,157 4,220,074,093

172 5,151,395 5

5 5,227,559 3 5

541555412 5

5 5

35,545,319 5

5 5

575,454,532 3 5

5 5

25,525,137 5

5 3,542,557,913

25,525,137 3 3,542,557,913

715,355,737 11 3,542,557,913

377.555,155 377,555,155

(495,515,555) 5

17,254,235 5

41,791,131 5

(554,537,127) 5

($544,525,555) :11 377,555,155

5 55,751,157 3 4,225,574,555
0

 INFEW USE ONLY

 

 

LA JOLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: O2f19f2010
Statement at Assets 8. Liabilities in Liquidation {unaudited} For Period Ending: December 31, 2017
(Rounded in Dollars) Ftun Date 8: Time: 05(1512018 
Current Balance Inception Balance
Estimated tax refund (Note 11) 0

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 255

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deterred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transterred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Aooutring Institution and Other Receivable typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss AllIoWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is racognized when receitredj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisailowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andior an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the clalmts) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncerlainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 256

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY
LA JOLLA BANK, FSB
Fund Number: 10185
Statement ot Operations (unaudited)
(Rounded in Dollars)

LA JOLLA, CA

Inception Date: 021?19i2010

For Period Ending: 

Run Date 8. Time: 051151?2018 

Year-to-Date lnception-to-Date

 

Liquidation Revenues

 

 

 

 

 

 

 

Interest on Cash and Investments 33 9,697 9,897
Interest and Other Operating Income on Assets
Securities 0 0
Consumer Loans 0 0
Commercial Loans 167,592 167,592
Fieal Estate Mortgages 1,642,380 1,642,380
Other Assets and Judgments 0 
Owned Assets 89,?48 89,748
Structured and Securitized Assets 0 0
Recoveries from Charged-Off Assets 0 0
Subtotal - Interest and Other Operating Income 1,899,?20 1,899,720
Non-Recurring Income
Professional Liability 1' Litigation Recoveries 0 0
Federal and State Income Tax Refunds 2,248,400 2,248,400
Other Miscellaneous Income 48,268 48,268
Subtotal Non~FIecurring Income 2,296,668 8 2,296,668
Total Liquidation Revenues 4,206,086 4,206,086
Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses 2,1?1,013 2,171,013
Asset Management and Other Contractual Expenses 4,207,181 4,977,181
Asset Sales Expenses 263,?32 263,?32
Owned Asset Expenses 62?,819 62?,819
Legal and Other Professional Fees 219,?62 219,162
Pre-closing Administrative Expenses 402,303 402,303
Travel and Other Liquidation Expenses 630,878 630,878
Subtotal - Operating and Liquidation Expenses 55 9,792,688 9,?92,688
Non?Recurring Expenses
Penalties Interest and Termination Fees 2,226 2,226
Litigation Losses 0 0
Subtotal - Non-Recurring Expenses 2,226 2,228
Total Liquidation Expenses 9,794,914 9,?94,914
Net Income?Loss) from Operations {$5,588,828} ($6,588,828)
Net Change on Equityr Investments
Investments In Subsidiaries 0 0
LLC Equity Interests 0 0
Total Net Change on Equityr Investments 0 8 0

Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims

 

(190,416,863)

{190,416,863}

 

 

Recoveries on Loss Share Claims 324,207 324,207

Total Net Activity on Loss Share and Other Asset Claims ($190,092,656) ($190,092,656)
GainI(Loss) on Disposition of Assets

Securities 0 0

Consumer Loans 0 0

FOFI USE ONLY

 

 

 

LA JOLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 02f19f2010
Statement at Operations (unaudited) For Period Ending: 12l31f2010
(Rounded in Dollars) Ftun Date 8. Time: 05? 5:2018 
Year-to-Date lnception-to-Date
Commercial Loans 0 0
Fieal Estate Mortgages {5,300,000} {5,300,000}
Other Assetsfdudgments 0 0
Owned Assets (599.401) (599.401)
Net investments in Subsidiaries 0 0
Structured and Seouritized Assets 0 0
Total - Gainileoss} on Disposition of Assets {$5,899,401} ($5,899,401)
Net Incomet(Loss) of the Liquidation {$201,580,885} ($201,530,835)

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2018 {Period 04}

Page 259

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deterred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transterred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Aeoutring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is recognized when receivadj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisailowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andior an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the clalmts) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncerlainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 260

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI NEW USE ONLY

LA JOLLA BANK, FSB

Fund Number: 10185

Statement of Operations (unaudited)
{Rounded in Dollars)

Liquidation Revenues
Interest on Cash and Investments
interest and Other Operating Income on Assets
Securities
Consumer Loans
Commercial Loans
Heal Estate Mortgages
Other Assets and Judgments
Owned Assets
Structured and Securitized Assets
Recoveries from Charged-Off Assets

Subtotal - Interest and Other Operating Income
Non-Recurring Income

Professional Liability i Litigation Recoveries

Federal and State Income Tax Fleiunds

Other Miscellaneous Income

Subtotal - Non?Recurring income
Total - Liquidation Revenues

Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses
Asset Management and Other Contractual Expenses
Asset Sales Expenses
Owned Asset Expenses
Legal and Other Professional Fees
Pre-closing Administrative Expenses
Travel and Other Liquidation Expenses

Subtotal - Operating and Liquidation Expenses

Non-Recurring Expenses
Penalties Interest and Termination Fees
Litigation Losses

Subtotal - Non-Recurring Expenses
Total Liquidation Expenses

Net lncomei(Loss) from Operations

Net Change on Equityr Investments
Investments in Subsidiaries
LLC Equity Interests

Total Net Change on Equity Investments

Net Activity on Loss Share and Other Asset Claims
Payments on Less Share and Other Asset Claims
Recoveries on Loss Share Claims

Total Net Activity on Loss Share and Other Asset Claims

Gaini(Loss) on Disposition of Assets
Securities
Consumer Loans

Yea r-to-Date

LA JOLLA, CA

Inception Date: 021?191?2010

For Period Ending: 12l31f2011

Run Date 8. Time: 0515:2018 

lnception-to-Date

 

 

 

 

 

 

 

 

 

 

 

3 37.440 3 77,133
0 0

0 3

0 137.532

1.073.254 2.720.334

0 0

(30.335) 53.733

0 0

0 0

1,047,233 2,347,003
37.755 37.755

0 2,243,400

13.735 37.033

5 105,543 3 2,403,213
3 1,221,273 3 5,427,334
1.435.232 3.333.235
3.333.203 3.335.333
2?5,?14 539.445
453.333 1.031.312
2.337.340 3.037.703
23.111 430.414

232.733 333.373

3 3,372,047 3 13,334,735
4,064 6,290

[i 

4,034 5 5,230
3 3,373,111 3 13,371,025
{$7,354,333} (313,243,351(143,570,414) {333,337,277}
13.330.532 20,134,733
{$123,733,322} ($313,332,473)
0 0

(574.323) (574.323)

LA JOLLA BANK, FSB

Fund Number: 10185

Statement ot Operations (unaudited)
(Rounded in Dollars)

Commercial Loans

Real Estate Mortgages

Other Assetstudgments

Owned Assets

Net investments in Subsidiaries
Structured and Securitized Assets

Total - Gainileoss} on Disposition of Assets

Net Incomei(Loss) of the Liquidation

FOFI USE ONLY
LA JOLLA, CA
Inception Date: 02i19i2010
For Period Ending: 12r31r2011
Run Date 8. Time: 05r15r2018 

 

 

 

Year-to-Date lnception-to-Date

0 0
{30,776,588} {36,076,583}
(3,709,348) {3,?09,348)
(3.490.182) {4.089.582}

0

(57,395,851) {572385351}
($95,936,794) ($101 ?36,195)
{$230,331,449} ($43131 2, 334)

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April, 2018 {Period 04}

Page 253

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"i. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensr?
having no recovery value; and accrued or deferred income. Restated balances are shown undtar the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is rocognized when receitredj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date or the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when anticipated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines lallowsldisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andior an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimls) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 264

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI INFEM USE ONLY

LA JOLLA BANK, FSB LA JOLLA, CA

Fund Number: 10185 Inception Date: 0211912010

Statement of Operations (unaudited) For Period Ending: 1213172012

(Rounded in Dollars) Hun Date 8. Time: 0571572018 
Year-to-Date lnception-to-Date

 

Liquidation Revenues

 

 

 

 

 

 

 

 

 

Interest on Cash and Intrestrnents 20.710 97.847
interest and Other Operating Income on Assets
Securities 0 0
Consumer Loans 84.844 84.944
Commercial Loans 0 187.582
Heal Estate Mortgages 228.388 2.848.833
Other Assets and Judgments 
Owned Assets 10.135 88.818
Structured and Securitized Assets 0 
Recoveries from Charged-Off Assets 0 0
Subtotal - Interest and Other Operating Income 304.078 3,251,088
Non-Recurring Income
Professional Liability 7 Litigation Recoveries 0 87.755
Federal and State Income Tax Flefunds 0 2.248.400
Other Miscellaneous Income 177.222 244.285
Subtotal - Non?Recurring Income 3 177,222 2,580,440
Total - Liquidation Revenues 502,010 5,929,374
Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses 585.357 4.252.852
Asset Management and Other Contractual Expenses 1.788.145 10.731.534
Asset Sales Expenses 35.200 574.845
Owned Asset Expenses 827.758 1.709.570
Legal and Other Professional Fees 1.558.788 4.847.488
Pre-closing Administrative Expenses 0 430.414
Travel and Other Liquidation Expenses 44.228 837.804
Subtotal - Operating and Liquidation Expenses 4,819,473 23,284,208
Non-Recurring Expenses
Penalties Interest and Termination Fees 0 8.290
Litigation Losses 0 0
Subtotal - Non-Recurring Expenses 0 8,290
Total Liquidation Expenses 4,819,473 23,290,498
Net from Operations ($4,117,483) ($17,381,124)
Net Change on Equityr Investments
Investments in Subsidiaries 0 0
LLC Equity Interests (1.288.342) (1.288.342)
Total Net Change on Equity Investments ($1,288,342) ($1,288,342)
Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims (423,551,874)
Recoveries on Loss Share Claims 38.032.428 58.187.225
Total Net Activity on Less Share and Other Asset Claims ($48,532,271) ($385,384,740)

 

Gaini(Loss) on Disposition of Assets
Securities 0 0
Consumer Loans 0 (574.828)

FOFI USE ONLY

 

 

 

LA JOLLA BANK. FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 03192010
Statement at Operations (unaudited) For Period Ending: 12r31r2012
(Rounded in Dollars) Ftun Date 8. Time: 0511512018 
Vear-to-Date lnceptlon-to-Date
Commercial Loans (2.495.221) (2. 435 .221)
Fieal Estate Mortgages 0 {36 0TB .538)
Other Assetsfdudgments NE .348)
Owned Assets (416.283) (.4 505 .835)
Net investments in Subsidiaries 
Structured and Seouritized Assets (22.121801) 
Total - Gainrleoss} on Disposition of Assets ($25,039,305) 
Net Income?Loss) of the Liquidation 

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April. 2013 {Period 04)

Page 267

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time lrames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deterred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsiLoss AlloWances: Assets of a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is reoognized when receiiredj: the foreclosed
value of real andior personai property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Ari Estimated Loss on Assets is provided when antioipated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisailowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise ti proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law governing the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has Deceme probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimts) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% of the principal of proven
creditor claims has been aid.

Page 253

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Resets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tart law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. ot the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. if a receivership ?les for a refund from federal or

state tart agencies. the potential tart retund estimate is disclosed. Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behall. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation such as receivership-specific direct expenses. assets In liquidation and
administrators liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY
LA JOLLA BANK, FSB
Fund Number: 10155
Statement of Operations (unaudited)
{Rounded in Dollars)

LA JOLLA, CA

Inception Date: 0211912010

For Period Ending: 1253112013

Ftun Date 8. Time: 0511512018 

Year-to-Date lnception-to-Date

 

Liquidation Revenues

 

 

 

 

 

 

 

 

 

 

Interest on Cash and Intrestrnents 2.703 100.550
interest and Other Operating Income on Assets
Securities 0 0
Consumer Loans 0 54.944
Commercial Loans 0 15?.592
Heal Estate Mortgages 1.107.125 4.055.757
Other Assets and Judgments 9343.114 9.743.114
Owned Assets 0 55.915
Structured and Securitized Assets 0 0
Recoveries from Charged-Off Assets 0 0
Subtotal - Interest and Other Operating Income 10,850,235 14.101.325
Non-Recurring Income
Professional Liability i Litigation Recoveries 100.000 132.?55
Federal and State Income Tax Flefunds 0 2.245.400
Other Miscellaneous Income 140.020 334.305
Subtotal - Non?Recurring Income 240.020 2,320,451
Total - Liquidation Revenues 11,092,952 12,022,335
Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses 2.092.554 5.345.205
Asset Management and Other Contractual Expenses 555.070 11.387.504
Asset Sales Expenses 2.121 535.757
Owned Asset Expenses 22.559 1.732.139
Legal and Other Professional Fees 1,174,320 5,321,309
Pre-closing Administrative Expenses 0 430.414
Travel and Other Liquidation Expenses 15.243 954.152
Subtotal - Operating and Liquidation Expenses 3,953,553 27,245,091
Non-Recurring Expenses
Penalties Interest and Termination Fees 0 5,290
Litigation Losses 0 0
Subtotal - Non-Recurring Expenses 0 5.290
Total Liquidation Expenses 3.953.383 27,254,391
Net lncomei(Loss) from Operations 7,129,079 (510.232.045)
Net Change on Equityr Investments
Investments In Subsidiaries 0 0
LLC Equity Interests {1.831559} (3.124.002)
Total Net Change on Equity Investments (51.53.1559) (53,124,002)
Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims (44?.950.?29)
Recoveries on Loss Share Claims 25.515.404 53,703.529
Total Net Activity on Loss Share and Other Asset Claims 5 1,107,549 ($354,252,100)
GainI(Loss) on Disposition of Assets
Securities 0 0
Consumer Loans 0 (574.325)

 USE ONLY

 

 

 

LA JDLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 02l19r2010
Statement of Operations (unaudited) For Period Ending: 12l31f2013
{Rounded in Dollars) Ftun Date 8. Time: 05f1 5r2018 
Year-to-Date lnception-to-Date
Commercial Loans (645,329) (3,142,050)
Fieal Estate Mortgages (5,994,791) {42,0?1,3?9)
Other Asseterudgments 0 (3,709,348)
Owned Assets 0 (4.505.865)
Net lnvaslments in Subsidiaries 
Structured and Seourilized Assets {15,455,319} (94,980,472)
Total - GainKLoss} on Disposition of Assets {$22,103,440} {$148,983,940}
Net IncomerrLoss) of the Liquidation {$15,709,371} 

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April, 2MB (Period 04}

Page 271

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets at the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time trames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount ovved by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is recognized when receitredj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s ponion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} provon or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable accessmerli
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 272

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interact on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Oi?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. lederal income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. it a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behait. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expanses. assets In liquidation and
administrators liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY

LA JOLLA BANK, FSB

Fund Number: 10185

Statement ot Operations (unaudited)
(Rounded in Dollars)

Liquidation Revenues

Vear-to-Date

LA JOLLA, CA
Inception Date: 02719;?2010
For Period Ending: 12731;?2014

Run Date 8: Time: 

lnception-to-Date

 

 

 

 

 

 

 

 

 

 

 

Interest on Cash and Investments 5 10,559 111,219
Interest and Other Operating Income on Assets
Securities 0 0
Consumer Loans 0 54,944
Commercial Loans 0 157,592
Fieal Estate Mortgages 0 4,055,757
Other Assets and Judgments 0 9,743,114
Owned Assets 201 59,120
Structured and Securitized Assets 0 0
Recoveries from Charged-Off Assets 0 [1
Subtotal - Interest and Other Operating Income 201 14,101,525
Non-Recurring Income
Professional Liability 7 Litigation Recoveries 0 187,755
Federal and State Income Tax Refunds 0 2,248,400
Other Miscellaneous Income 55,075 440,381
Subtotal Non~FIecurring Income 55,075 2,875,535
Total Liquidation Revenues 55,945 17,089,281
Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses 1,245,722 1591.928
Asset Management and Other Contractual Expenses 1,392,853 12,780,457
Asset Sales Expenses 1,105 577,872
Owned Asset Expenses 43,020 1,775,150
Legal and Other Professional Fees 1,881,005 7,702,815
Pre-closing Administrative Expenses 0 430,414
Travel and Other Liquidation Expenses 17,907 972,059
Subtotal - Operating and Liquidation Expenses 55 4,582,524 31,330,715
Non?Recurring Expenses
Penalties Interest and Termination Fees 0 5,290
Litigation Losses 0 0
Subtotal - Non-Recurring Expenses 0 6,290
Total Liquidation Expenses 4,582,524 31,837,005
Net Income?Loss) from Operations ($4,515,579) ($14,747,725)
Net Change on Equity Investments
Investments In Subsidiaries 0 0
LLC Equity Interests (815,898) (3,940,900)
Total Net Change on Equity Investments ($815,898) ($3,940,900)
Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims (9,351,052) (457,321,781)
Recoveries on Less Share Claims 21 ,551 ,405 105,355,034
Total Net Activity on Loss Share and Other Asset Ciaims 12,300,353 ($351,955,747)
GainI(Loss) on Disposition of Assets
Securities 0 0
Consumer Loans 0 (574,825)

FOFI USE ONLY

 

 

 

LA JOLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 02f19f2010
Statement at Operations (unaudited) For Period Ending: 12l31f2014
(Rounded in Dollars) Ftun Date 8. Time: 05f15!2018 
Vear-to-Date lnceptlon-to-Date
Commercial Loans 0 (3,142,050)
Fieal Estate Mortgages 0 {42,0?1,378)
Other Assetsfdudgments (23,685,294) 3?4, 841)
Owned Assets (42,000) (.4 54? 885)
Net investments in Subsidiaries 
Structured and Seouritized Assets {5,448,244} (100,428,?15)
Total - Gainileoss} on Disposition of Assets ($29,155,538) 
Net Incomet(Loss) of the Liquidation ($548,784,850)

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April, 2018 {Period 04}

Page 2T5

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and an acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss Allovvances: Assets of a receivarship are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is rocognized when receitredj: the foreclosed
value of real andror personet property or the book value of assets {cost less depreciation or amortization through
data of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when anticrpated future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses lrom cases where uncertainties prevent a reasonable assassmerlt
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the tull principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount at post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 2T6

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pro-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC receiverships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY

LA JOLLA BANK, FSB LA JOLLA, CA

Fund Number: 10185 Inception Date: 0271972010

Statement at Operations (unaudited) For Period Ending: 1273172015

(Rounded in Dollars) Ftun Date 8. Time: 0571572018 
Vear-to-Date lnception-to-Date

 

Liquidation Revenues

 

 

 

 

 

 

 

 

 

Interest on Cash and Investments 33 12,579 123,799
Interest and Other Operating Income on Assets
Securities 0 0
Consumer Loans 0 64,944
Commercial Loans 0 167,592
Fleal Estate Mortgages 0 4,058,757
Other Assets and Judgments 0 9,743,114
Owned Assets 0 69,120
Structured and Securitized Assets 0 0
Recoveries from Charged-Off Assets 104,479 104,479
Subtotal - Interest and Other Operating Income 104,479 14,206,005
Non-Recurring Income
Professional Liability 7 Litigation Recoveries 1,200,063 1,387,818
Federal and State Income Tax Refunds 0 2,248,400
Other Miscellaneous Income 55,413 495,794
Subtotal Non~FIecurring Income 1,255,476 4,132,012
Total Liquidation Revenues 1,372,535 18,461,815
Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses 1,418,389 9,010,298
Asset Management and Other Contractual Expenses 714,003 13,494,470
Asset Sales Expenses 0 577,872
Owned Asset Expenses 878 1,775,838
Legal and Other Professional Fees 1,976,372 9,879,188
Pre-closing Administrative Expenses 0 430,414
Travel and Other Liquidation Expenses 1,839 973,898
Subtotal - Operating and Liquidation Expenses 55 4,111,060 35,941,776
Non?Recurring Expenses
Penalties Interest and Termination Fees 0 6,290
Litigation Losses 0 0
Subtotal - Non-Recurring Expenses 0 6,290
Total Liquidation Expenses 4,111,060 35,948,066
Net Income?Loss) from Operations ($2,738,525) ($17,486,251)
Net Change on Equityr Investments
Investments in Subsidiaries 0 0
LLC Equity Interests (680,891) (4,621,590)
Total Net Change on Equityr Investments ($880,691) ($4,621,590)
Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims (2,048,457) (459,370,238)
Recoveries on Loss Share Claims 21,429,238 128,794,270
Total Net Activity on Loss Share and Other Asset Ciaims 19,380,779 ($332,575,968)

 

Gain7(Loss) on Disposition of Assets
Securities 0 0
Consumer Loans 0 (574,828)

FOFI USE ONLY

 

 

 

LA JOLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 02f19f2010
Statement at Operations (unaudited) For Period Ending: 12l31f2015
(Rounded in Dollars) Ftun Date 8. Time: 05f15!2018 
Vear-to-Date lnceptlon-to-Date
Commercial Loans 0 (3,142,050)
Fieal Estate Mortgages 0 {42,0?1,379)
Other Assetsfdudgments (19,000,069) {46 SM 710)
Owned Assets 0 (.4 54? 865)
Net investments in Subsidiaries 
Structured and Seouritized Assets {1,051,871} 
Total - Gainileoss} on Disposition of Assets ($20,051,940) ($198,191,413)
Net Incomet(Loss) of the Liquidation ($552,875,227)

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April, 2018 {Period 04}

Page 279

Notes- to Financial Statements:

1. Basis of Accounting: The Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors over time as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time frames to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
defenals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception, liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued atter failure but is racognized when receivadj: the foreclosed
value of real andior personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

Arr Estimated Loss on Assets is provided when future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsi claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law governing the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has baseme probable. A
receivership may be subject to significant losses lrorn cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimts) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the full principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 280

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pas-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once is appointed as receiver. if a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the F016 in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

FOFI USE ONLY

LA JOLLA BANK, FSB LA JOLLA, CA

Fund Number: 10185 Inception Date: 0271912010

Statement of Operations (unaudited) For Period Ending: 1273172018

(Rounded in Dollars) Hun Date 8. Time: 0571572018 
Year-to-Date lnception-to-Date

 

Liquidation Revenues

 

 

 

 

 

 

 

 

 

Interest on Cash and IHVestrnents 149,883 273,481
interest and Other Operating Income on Assets
Securities 0 0
Consumer Loans 0 84,944
Commercial Loans 0 187,592
Heal Estate Mortgages 0 4,058,757
Other Assets and Judgments 0 9,743,1 14
Owned Assets 0 89,120
Structured and Securitized Assets 0 0
Recoveries from Charged-Off Assets 0 104,479
Subtotal - Interest and Other Operating Income 8 0 8 14,208,005
Non-Recurring Income
Professional Liability 7 Litigation Recoveries 0 1,387,818
Federal and State Income Tax Flefunds 709,329 2,957,729
Other Miscellaneous Income (15,282} 480,532
Subtotal - Non?Recurring Income 8 894,087 4,828,079
Total - Liquidation Revenues 843,750 19,305,585
Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses 957,481 9,987,777
Asset Management and Other Contractual Expenses 319,902 18,814,372
Asset Sales Expenses 0 577,872
Owned Asset Expenses 0 1,775,838
Legal and Other Professional Fees 382,951 10,042,139
Pre-closing Administrative Expenses 0 430,414
Travel and Other Liquidation Expenses 541 ,220 1,514,918
Subtotal - Operating and Liquidation Expenses 31 2,181,554 33,123,330
Non-Recurring Expenses
Penalties Interest and Termination Fees 0 8,290
Litigation Losses 0 0
Subtotal - Non-Recurring Expenses 0 8,290
Total Liquidation Expenses 2,181,554 38,129,820
Net Income-moss) from Operations ($1,337,804) ($18,824,055)
Net Change on Equityr Investments
Investments in Subsidiaries 0 0
LLC Equity Interests (955,498) (5,577,087)
Total Net Change on Equity Investments ($955,498) ($5,577,087)
Net Activity on Loss Share and Other Asset Claims
Payments on Loss Share and Other Asset Claims 8,532,431 (450,837,807)
Recoveries on Loss Share Claims (2,425,585) 124,388,705
Total Net Activity on Less Share and Other Asset Claims 8 8,108,888 ($328,489,102)

 

Gainl(Loss) on Disposition of Assets
Securities 0 0
Consumer Loans 0 (574,828)

FOFI USE ONLY

 

 

 

LA JOLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 02i?19f2010
Statement at Operations (unaudited) For Period Ending: 12l31f2016
(Rounded in Dollars) Ftun Date 8. Time: 0515:2018 
Vear-to-Date lnceptlon-to-Date
Commercial Loans 0 (3,142,050)
Fieal Estate Mortgages 0 {42,0?1,379)
Other Assetsfdudgments (29571456) 952 165)
Owned Assets 0 (.4 54? 865)
Net investments in Subsidiaries 0 
Structured and Seouritized Assets (3,?59,457} (105,240,044)
Total - Gainileoss} on Disposition of Assets ($33,335,211 3) ($231,528,331)
Net Incomet(Loss) of the Liquidation ($29,523,347) ($532,393,574)

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April, 2018 {Period 04}

Page 283

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is rocognized when receitredj: the foreclosed
value of real andror personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses irom cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 284

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution?s failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovarias: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not fitted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share or aggregate liquidation
costs based on allocation such as receivership-specific direct expanses. assets In liquidation and
administrative liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.

LA JOLLA BANK, FSB

Fund Number: 10185

Statement of Operations (unaudited)
{Rounded in Dollars)

Liquidation Revenues
Interest on Cash and Int/estrnents
interest and Other Operating Income on Assets
Securities
Consumer Loans
Commercial Loans
Heal Estate Mortgages
Other Assets and Judgments
Owned Assets
Structured and Securitized Assets
Recoveries from Charged-Off Assets

Subtotal - Interest and Other Operating Income
Non-Recurring Income

Professional Liability 1 Litigation Recoveries

Federal and State Income Tax Fiefunds

Other Miscellaneous Income

Subtotal - Non?Recurring income
Total - Liquidation Revenues

Liquidation Expenses
Operating and Liquidation Expenses
FDIC Billed Expenses
Asset Management and Other Contractual Expenses
Asset Sales Expenses
Owned Asset Expenses
Legal and Other Professional Fees
Pro-closing Administrative Expenses
Travel and Other Liquidation Expenses

Subtotal - Operating and Liquidation Expenses

Non-Recurring Expenses
Penalties Interest and Termination Fees
Litigation Losses

Subtotal - Non-Recurring Expenses
Total Liquidation Expenses

FOFI USE ONLY
LA JOLLA, CA
Inception Date: 02i19t2010
For Period Ending: 1263172017
Flun Date 8. Time: 05H 51'2018 

 

 

Year-to-Date lnception-to-Date
33,202 361 .833
0 0
0 64.044
0 167.592
0 4,056,757
0 14
0 69,120
0 0
0 104.479
5 0 14,206.005
3.646 1.391.464
0 2,957,729
366.364 647.526
370,641 5,196,720
453,843 19,764,403
361.966 10.323763
237.234 14.051606
0 577,672
0 1 ,775.333
217,487 10,259,626
0 430.414
1.631 1,516,543

 

313,333 33,941 ,333

 

6.290
0 
0 6,290

31 3,3 33 33,947,353

 

 

 

 

 

 

Net lncomeiiLoss) from Operations ($353,465) ($19,163,550)
Net Change on Equityr Investments

Investments In Subsidiaries 0 0

LLC Equity Interests {616,447} {6.135.534}

Total Net Change on Equity Investments ($613,447) ($6,195,534)
Net Activity on Loss Share and Other Asset Claims

Payments on Loss Share and Other Asset Claims {66.551} (450,904,356)

Recoveries on Loss Share Claims 1,724.361 126,093,036

Total Net Activity on Loss Share and Other Asset Claims 5 1,657,330 ($324,311,272)
Gaint(Loss) on Disposition of Assets

Securities 0 0

Consumer Loans

0 {574.325}

FOFI USE ONLY

 

 

LA JOLLA BANK, FSB LA JOLLA, CA
Fund Number: 10185 Inception Date: 02f19f2010
Statement at Operations (unaudited) For Period Ending: 12l31f2017
(Rounded in Dollars) Ftun Date 8. Time: 05f15!2018 
Year-to-Date lnception-to-Date
Commercial Loans 0 {3,142,050}
Fieal Estate Mortgages 0 (42,071,379)
Other Assetsfdudgments 0 05,952,156}
Owned Assets 0 {4,547,855}
Net investments in Subsidiaries 
Structured and Seouritized Assets (2.813.440) (108,058,484)
Total - Gainileoss} on Disposition of Assets ($2,818,440) ($234,346,771)
Net Incomet(Loss) of the Liquidation ($2,133,553) 

 

 

The accompanying notes are an integral part of these financial statements.

Last Month Closed: April, 2018 {Period 04}

Page 28?

Notes- to Financial Statements:

1. Basis of Accounting: The FBI Act authorizes the FDIC. as receiver for a failed insured depository institution
t"receivership"j. to administer and conclude the affairs of such institution. Financial statement presentations
are based on the premise that the assets ol the receivership will be liquidated and proceeds distributed to the
institution's creditors overtime as provided by applicable laws and regulations. While a receivership's average
lifespan is three to nine years. some may require longer time homes to conclude- At the onset of a receivership.
the failed institution's financial records are reviewed and restated to establish a new basis of accounting. The
assets and liabilities of the failed institution are adjusted to remove all estimated losses. accruals. and
deferrals. These adjustments include less allowances; partial write downs: prepaid. deferred or accrued expensea
having no recovery value; and accrued or deferred income. Restated balances are shown under the inception
Balance heading of the Statement of Assets and Liabilities in Liquidation. After inception. liquidation
valuation and measurement practices, as described more fully in the paragraphs that follow. are adopted for all
assets and liabilities. In general. transactions are recorded when cash is received or disbursed. Accruals may
be used when prospective cash flows are probable and reasonably estimated.

2. Use of Estimates: As appropriate. estimates of asset values. liabilities. revenues. and expenses are reflected
in the financial statements. These amounts are updated over time to compensate for uncertainties inherent in the
estimation process. As with the use of all estimates. actual results may differ.

3. Receivables: The line item Receivable Due from FDIC reflects the amount owed by FDIC Corporate to a
receivership as a result of the net effect of the initial resolution transactions where the amount of deposits
transferred exceeds the amount of assets sold to an acquiring institution. This receivable is satis?ed when a
receivership receives cash from Corporate or when a receivership declares a dividend and offsets the receivable
against the subrogated deposit liability claim.

The line item Due from Acquiring Institution and Other ReceivablI typically includes the net effect of post?closing

asset and liability adjustments between the receivership and the acquiring institution. This receivable

is satisfied between a receivership and on acquiring institution in accordance with the settlement and shared?loss

arrangement provisions within the purchase and assumption agreement and accompanying shared-loss agreement. respectively.

4. Valuation of AssetsrLoss AlloWances: Assets of a are shown at values representing cash on deposit
or the book value of amounts invested: the principal balance of loans. notes. other debt instruments or receivables
{note that interest on these assets is not accrued after failure but is rocognized when receitredj: the foreclosed
value of real andror personal property or the book value of assets {cost less depreciation or amortization through
date of the institution's failure}; and the historical cost of the net investment in subsidiaries. partnerships or

joint ventures. adjusted where appropriate to reflect a receivership?s portion of the underlying net earnings or
losses.

An Estimated Loss on Assets is provided when future asset disposition proceeds. including associated
expenses. are less than recorded amounts. Future asset disposition proceeds are generally estimated by applying
current book values against estimated recovery rates [based on available valuation projections or liquidation
experience} for similar receivership asset categories. Actual recovery rates for a receivership may differ

according to the quality and type of individual asset. as well as over time with changing market conditions.
Accordingly. the gains or losses ultimately realized by a receivership will likely vary from amounts estimated.

5. Actual and Estimated Liabilities: The FDIC. as receiver. determines {allowsidisallowsj claims and distributes
proceeds derived from the disposition of the failed institution?s assets according to applicable state and federal

law governing the payment of creditor claims. Recorded liabilities comprise l} proven or pending {unproven} claims
against a receivership estate. 2) various operating liabilities. and 3} estimates of other probable losses such as
pending defensive litigation. Applicable law govarning the payment priority of distributions may vary depending on
the inception date of a receivership. Therefore. liabilities of a receivership estate are not ranked in order of
preference or payment priority on the Statement of Assets and Liabilities in Liquidation.

6. Estimated Loss Share Reserves: A receivership records an estimated liability tor shared-loss payments
relative to assets purchased under a shared-loss agreement with an acquiring institution. which may span a
period of eight to ten years. This estimated shared-loss liability is adjusted for actual loss 
made and recoveries obtained. as well as periodic valuation updates.

Reasonably Possible Litigation Losses: In addition to the amounts recorded for probable litigation

liabilities. the FDIC Legal Division has determined that a receivership may be subject to reasonably possible
losses from unresolved litigation. Reasonably possible losses dilfIr from those which are probable in that there

is a lesser likelihood of loss and payment from a receivership. As such. reasonably possible losses are not
accrued until the FDIC. through periodic review. determines that the likelihood of loss has became probable. A
receivership may be subject to significant losses irom cases where uncertainties prevent a reasonable assassmerit
of the ultimate outcome andror an estimate of the amount of loss which could result.

8. Estimated interest on Claims: Applicable law governs or directs the payment of post-insolvency interest to
creditors holding proven claims against the receivership estate. including the claimis) held by the FDIC in its
Corporate capacity. Post-insolvency interest is the interest calculated and paid on proven creditor claims.
under certain circumstances. after a receiver is appointed. Uncertainties exist as to the universe of creditors
whose claims will ultimately be allowed and whether creditors will receive the toll principal amount of proven
claims against the receivership estate or any post-insolvency interest. No distribution will be made to holders
of equity interests until allowed creditor claims have been paid principal and any post-insolvency interest in

tull. Generally. the estimated liability tor the total amount oi post-insolvency interest payable respective to
creditor claims is recognized in these financial statements when at least 95% or the principal of proven
creditor claims has been aid.

Page 288

9. Non?Cash Adjustments: Unreconded assets and claims determined to have existed as of the institution's failure
are deemed discovered assets and liabilities. respectively. and are recorded as norrcash equity adjustments.
Other non?cash equity adjustments Include the Estimated Loss on Assets in Liquidation. the Estimated Interest on
Claims. as well as the write?oil of remaining unpaid liabilities prior to the inactivation of a receivership.

Note that cenain non?cash adjustments such as the estimated loss on assets and probable litigation are reversed
when they are recognized as liquidation transactions in the Statement of Operations.

10. Contingent Recovaries: Assets of a receivership generally exclude potential collections irom activities such
as professional liability or other types of pending legal actions. Significant uncertainties prevent reasonable
EStif?l?lEil'Of?l Of the ultimately collectible. instead. these are generally recognized when cash
is received. or when the collection is probable and the amount collectible can be reasonably estimated.

11. Income Taxes: Federal tax law requires that receivers oi corporations. including depository Institutions for
which the FDIC serves as receiver. continue to tile federal income tax returns tor the receiverships they
manage. A receivership may therefore incur a federal income tax liability from activities that occur during  the
life of the receivership. as well as during pre-receivership periods. Payment of federal income taxes is

deferred until higher priority claims are satis?ed. but prior to any payment made to equity holders. oi the

tailed institution. Because of the contingent nature of these tax claims. ledsral income tax liabilities are
generally not recognized in these financial statements unless circumstances indicate that there is a high
probability that they will be paid. Federal law provides an exemption from income taxes imposed by any State or
local taxing authority once FDIC is appointed as receiver. If a receivership ?les for a refund from federal or

state tax agencies. the potential tail reiund estimate is disclosed. Since such refunds are not titted and
determinable and may be subject to audit by tart agencies. these refunds are generally not recognized until they
are received.

12. FDIC Billed Expenses (Statement of Operations}: FDIC personnel, who are employed by the FDIC in its
Corporate capacity, are responsible for conducting all liquidation-related activities for FDIC reoeivarships.

The FDIC in its Corporate capacity bills the receiverships for various liquidation services provided on their
behail. Since 2015 FDIC billed expenses represent a receivership's proportional share at aggregate liquidation
costs based on allocation iactors. such as receivership-specific direct expanses. assets In liquidation and
administrators liability balances. Prior to 2015. FDIC billed expenses were based on each individual
receivership's actual workload volume and corresponding benchmark rate for each type of liquidation service
provided.