I. Corporate Fund Financial Results - Third Quarter 2009

Deposit Insurance Fund (DIF)

• For the nine months ending September 30, 2009, DIF’s comprehensive loss totaled $25.5 billion compared with a comprehensive loss of $17.8 billion for the same period last year. This $7.7 billion increase in the year-over-year loss was primarily due to a $17.3 billion increase in the provision for insurance losses and a $3.4 billion decrease in the unrealized gain on available-for-sale securities (AFS) partially offset by a $12.7 billion increase in assessment revenue and a $681.3 million increase in other revenue (largely attributable to the collection of debt issuance surcharges under the TLGP).

• Assessment revenue was $14.7 billion as of September 30, 2009, compared with only $2.0 billion for the comparable nine-month period in 2008. This $12.7 billion increase was due to the collection of a $5.5 billion special assessment on September 30, 2009 and significantly higher regular assessment revenue. With respect to regular assessment activity, DIF earned approximately $5.8 billion for first and second quarter 2009 insurance coverage and recognized a $3.4 billion receivable for third quarter insurance coverage (which will be collected on December 31, 2009). Major factors contributing to this increase in regular assessment revenue year-over-year include changes to the risk-based assessment regulations, ratings downgrades of many institutions (which pushed them into higher assessment rate categories), the decline of the one-time assessment credit made available with the enactment of deposit insurance reform, and a larger assessment base.

• The provision for insurance losses was $39.9 billion for the nine months ending September 30, 2009, compared with $22.7 billion for the same period in 2008. The total provision consists mainly of the loss provisions for future failures (approximately $28.7 billion) and estimated losses on the 95 failures that occurred in first nine months of 2009 (approximately $11.2 billion). The loss provision of $11.2 billion represents the difference between the estimated losses recorded at resolution for the 95 failures and their contingent loss reserve at December 31, 2008.