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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Home > About FDIC > Financial Reports > Chief Financial Officer's (CFO) Report to the Board

Chief Financial Officer's (CFO) Report to the Board

301 Moved Permanently

301 Moved Permanently


I. Corporate Fund Financial Results - Third Quarter 2013

Deposit Insurance Fund (DIF)

  • For the nine months ending September 30, 2013, the DIF’s comprehensive income totaled $7.8 billion compared to comprehensive income of $13.4 billion for the same period last year.  This $5.6 billion decrease was mostly due to a decrease in other revenue of $4.1 billion and a $2.0 billion decrease in assessment revenue, partially offset by a decrease in provision for insurance losses of $192 million and a $136 million decrease in operating expenses.
  • The year-over-year decrease of $4.1 billion in other revenue was primarily due to the recognition of $4.0 billion in revenue in June 2012 for the Debt Guarantee Program fees that were previously held as systemic risk deferred revenue.
  • The provision for insurance losses was negative $539 million for the third quarter of 2013.  The negative provision primarily resulted from a $440 million decrease in the contingent loss reserve due to lower estimated losses from anticipated future failures.
  • On September 9, 2013, the FDIC exchanged the Citigroup TruPs with a par value of $2.225 billion held by the Corporation for subordinated notes with a par value of $2.420 billion from Citigroup.  The carrying book value of the TruPs was $1.962 billion resulting in a gain on the exchange of $458 million, which was offset by a reclassification of accumulated unrealized gain of $302 million.  Thus, the effect to the DIF fund balance was a net realized gain of $156 million.  Subsequently, on September 10, 2013, the subordinated notes were sold at par to the institutional fixed income market for $2.420 billion.

FSLIC Resolution Fund (FRF)

  • After evaluating FRF’s remaining assets and liabilities, the FDIC returned $2.6 billion to the U.S. Treasury on behalf of the FRF- FSLIC and paid $125 million to REFCORP on behalf of FRF-RTC in the third quarter 2013.
  • During September, FRF paid $501 thousand to a plaintiff in a goodwill case, representing reimbursement for a tax liability incurred on a $181 million settlement that occurred in 2012.


  • During the third quarter of 2013, the DIF recognized a total of $2.3 billion in assessment revenue. The estimate for third quarter 2013 insurance coverage totaled $2.4 billion.  Additionally, the DIF recognized a net adjustment of $56 million that reduced assessment revenue. This adjustment consisted of $7 million in prior period amendments and a $49 million decrease to the estimate for second quarter 2013 insurance coverage recorded at June 30, 2013. The latter adjustment was due to lower average assessment rates for large banks.
  • On September 30, 2013, the FDIC collected $2.5 billion in DIF assessments for second quarter 2013 insurance coverage.  For the first time since the collection date of March 30, 2010, there were no prepaid assessments reducing the quarterly collection amount.

Last Updated 06/03/2013

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