Chief Financial Officer's (CFO) Report to the Board
I. Financial Results - First Quarter 2020
Deposit Insurance Fund (DIF)
- For the first quarter of 2020, the DIF’s comprehensive income totaled $2.9 billion, compared to comprehensive income of $2.3 billion for the same period last year. The increase of $598 million was primarily due to a $1.0 billion increase in unrealized gains on U.S. Treasury securities partially offset by a $408 million increase in the provision for insurance losses.
- The $1.5 billion unrealized gain on U.S. Treasury securities for the first quarter 2020 was a result of yields declining considerably across most maturity sectors of the Treasury yield curve, resulting in increases in the securities’ market values relative to their book values.
- During March, the DIF recognized assessment revenue of $1.4 billion for the estimate of first quarter 2020 insurance coverage. Gross assessment revenue of $1.408 billion was reduced by $51 million for expected small bank assessment credit usage. Additionally, the DIF recognized a $15 million adjustment for higher-than-estimated collections for the fourth quarter 2019 insurance coverage, which increased assessment revenue.
- Of the total $765 million small bank assessment credits awarded, $707.4 million have been applied over the past three quarters to reduce assessments paid by small banks. After applying an estimated $51 million in credits against the June 2020 assessment collection, over $5 million will remain for remittance to those institutions with unused credits.
- On March 30, 2020, the FDIC collected $1.3 billion in DIF assessments for fourth quarter 2019 insurance coverage.