I. Corporate Fund Financial Results - Second Quarter 2011

Deposit Insurance Fund (DIF)

• For the six months ended June 30, 2011, the DIF’s comprehensive income totaled $11.3 billion compared to comprehensive income of $5.6 billion for the same period last year.  This $5.7 billion year-over-year increase was mostly due to the decrease in the provision for insurance losses.

• The provision for insurance losses was negative $5.2 billion for the first half of 2011.  The negative provision primarily resulted from a $2.7 billion reduction in the contingent loss reserve due to the improvement in the financial condition of institutions that were previously identified to fail; a $1.7 billion reduction in the estimated losses for banks that have failed where recent liquidation activity yielded recoveries higher than previously estimated; and a $0.7 billion adjustment for lower-than-anticipated loss estimates at time of failure for banks that failed in 2010.

• During the second quarter of 2011, the DIF recognized $3.2 billion in estimated assessment revenue for second quarter 2011 insurance coverage.  Of this amount, $3.0 billion was recognized for those institutions that prepaid assessments and $205 million was recorded as a receivable from those institutions that did not prepay assessments.

• On June 30, 2011, the FDIC collected $191 million in DIF assessments for first quarter 2011 insurance coverage from those institutions that had not prepaid their assessments. 

• The assessment base computed by the FDIC used deposit data reported by each insured institution through the March 31, 2011 report date.  Beginning April 1, 2011, the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) requires that the base on which deposit insurance assessments are charged be revised from domestic deposits to assets.  The assessment collection date of September 30, 2011, will utilize an assessment base of average consolidated total assets minus average tangible equity (defined as Tier 1 Capital).