Chief Financial Officer's (CFO) Report to the Board
I. Corporate Fund Financial Results - First Quarter 2017
Deposit Insurance Fund (DIF)
- For the first quarter of 2017, the DIF’s comprehensive income totaled $1.8 billion compared to comprehensive income of $2.5 billion for the same period last year. This $754 million decline was primarily the result of an $808 million increase in provision for insurance losses and $405 million lower unrealized gain on U.S. Treasury securities, partially offset by a $409 million increase in assessment revenue and an $80 million increase in interest revenue.
- The provision for insurance losses was $765 million for the first quarter of 2017 primarily resulting from a $976 million increase in the contingent liability for anticipated failures, partially offset by a $182 million decrease in the estimated losses for actual failures. The latter adjustment was primarily attributable to unanticipated recoveries of $46 million in professional liability claims and tax refunds by the receiverships, a $50 million decrease in the receiverships’ shared-loss liabilities, and settlement of receivership representation and warranty indemnifications for $80 million less than estimated.
- During March, the DIF recognized a total of $2.7 billion in assessment revenue. Of this amount, $1.5 billion represented the estimate for first quarter 2017 insurance coverage. Also, the DIF recognized $1.2 billion in estimated large bank surcharges for the first quarter 2017.
- On March 30, 2017, the FDIC collected $1.5 billion in DIF assessments and $1.2 billion in surcharge assessments for fourth quarter 2016 insurance coverage.