I. Corporate Fund Financial Results - First Quarter 2013

Deposit Insurance Fund (DIF)

• For the three months ending March 31, 2013, the DIF’s comprehensive income totaled $2.8 billion compared to comprehensive income of $3.5 billion for the same period last year.  This $700 million decrease was mostly due to a $1.0 billion decrease in assessment revenue and a $124 million lower contribution to year-to-date comprehensive income from unrealized gains/losses on trust preferred securities, partially offset by a $511 million decrease in provision for insurance losses.

• The provision for insurance losses was negative $499 million for the first quarter of 2013, compared to $12 million for the same period in 2012.  The negative provision for 2013 resulted from a $434 million decrease in the contingent loss reserve due to lower estimated losses from anticipated future failures and a $66 million reduction in the estimated losses for institutions that have failed in the current and prior years.

Assessments

• During the first quarter of 2013, the DIF recognized a total of $2.6 billion in assessment revenue. The estimate for first quarter 2013 insurance coverage totaled $2.8 billion—$1.5 billion was recognized for those institutions that prepaid assessments and $1.3 billion was recorded as a receivable from those institutions that did not have prepaid assessments available for offset.  Additionally, the DIF recognized a net adjustment of $126 million that reduced assessment revenue. This adjustment consisted of $11 million in prior period amendments and a $115 million decrease to the estimate for fourth quarter 2012 insurance coverage recorded at December 31, 2012. The latter adjustment was due to lower average assessment rates.

• On March 29, 2013, the FDIC collected $951 million in DIF assessments for fourth quarter 2012 insurance coverage.  At March 31, 2013, the “Unearned revenue – prepaid assessments” line item on the Balance Sheet was zero; the “Refunds of prepaid assessments” line item reflects the estimated $5.8 billion that will be returned to the institutions in June 2013. 

Quarterly DIF Assessment Revenue
Quarter	Dollars in billions	Institutions over $100B	Institutions Between $10 - $100B	Institutions under $10B
March 2012	$3.7	60%	20%	20%
June 2012	$2.9	57%	22%	21%
September 2012	$2.8	58%	21%	21%
December 2012	$2.9	58%	22%	20%
March 2013	$2.6	58%	22%	20%