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

301 Moved Permanently

301 Moved Permanently


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I. Corporate Fund Financial Results - Third Quarter 2014

Deposit Insurance Fund (DIF)

  • For the nine months ending September 30, 2014, the DIF’s comprehensive income totaled $7.129 billion compared to comprehensive income of $7.800 billion for the same period last year.  This $671 million decrease was mostly due to an $884 million decrease in assessment revenue and an $83 million increase in operating expenses that was partially offset by a $448 million decrease in the provision for insurance losses.
  • The provision for insurance losses was a negative $1.5 billion for 2014.  The negative provision for 2014 primarily resulted from a decrease of $2.5 billion in the estimated losses for institutions that failed in prior years, partially offset by an increase of $918 million in the contingent liability for anticipated failures.

The $2.5 billion reduction in the estimated losses from failures was primarily attributable to two components.  The first component was unanticipated recoveries of $1.6 billion in litigation settlements, professional liability claims, and tax refunds by the receiverships, which are not recognized until the cash is received since significant uncertainties surround their recovery.  The second component was asset recoveries that exceeded projections and higher valuations on remaining receivership assets totaling $1.1 billion.

Assessments

  • During September, the DIF recognized a total of $2.0 billion in assessment revenue.  Of this amount, the estimate for third quarter 2014 insurance coverage totaled $2.1 billion.  Additionally, the DIF recognized a net adjustment of $63 million that decreased assessment revenue. This adjustment consisted of an $18 million decrease from prior period amendments and a $45 million decrease to the estimate for second quarter 2014 insurance coverage recorded at June 30, 2014. The latter adjustment was primarily due to lower than estimated rates for large institutions.
  • On September 30, 2014, the FDIC collected $2.1 billion in DIF assessments for second quarter 2014 insurance coverage.

 

 



Last Updated 12/12/2014 dofbusinesscenter@fdic.gov

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