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

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

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I. Corporate Fund Financial Results - Fourth Quarter 2012

Deposit Insurance Fund (DIF)

  • For 2012, the DIF’s comprehensive income totaled $21.1 billion compared to comprehensive income of $19.2 billion during 2011.  This $1.9 billion year-over-year increase was primarily due to a $3.3 billion increase in revenue from excess DGP fees previously held as systemic risk deferred revenue, partially offset by a $1.1 billion decrease in assessments and a $191 million increase in the provision for insurance losses.
  • In October 2008, in an effort to counter the system-wide crisis in the nation’s financial sector, the FDIC established the Temporary Liquidity Guarantee Program (TLGP).  The TLGP consisted of two components:  the Transaction Account Guarantee Program (TAG) and the DGP.  The TLGP TAG program expired on 12/31/2010; however, the provisions from the Dodd-Frank Act extended coverage for non-interest bearing transaction accounts through year-end 2012.  The DGP, which at its peak guaranteed $345.8 billion in outstanding debt, expired on December 31, 2012.  In 2012, the DIF recognized revenue of $5.9 billion, representing the remaining deferred revenue not absorbed by the TLGP for program losses.  In total, the DIF increased by $9.3 billion as a result of funds received from the TLGP from guarantee fees and surcharges, net of losses.
  • The provision for insurance losses was negative $4.2 billion for 2012, compared to negative $4.4 billion for 2011.  The negative provision for 2012 primarily resulted from a reduction of $1.4 billion in the contingent loss reserve due to the improvement in the financial condition of institutions that were previously identified to fail and a decrease of $2.8 billion in the estimated losses for institutions that have failed in the current and prior years.


  • During the fourth quarter of 2012, the DIF recognized a total of $2.9 billion in assessment revenue. The estimate for fourth quarter 2012 insurance coverage totaled $3.0 billion—$2.0 billion was recognized for those institutions that prepaid assessments and $1.0 billion was recorded as a receivable from those institutions that did not have prepaid assessments available for offset.  Additionally, the DIF recognized a net adjustment of $59 million that reduced assessment revenue. This adjustment consisted of $1 million in prior period amendments and a $60 million decrease to the estimate for third quarter 2012 insurance coverage recorded at September 30, 2012. The latter adjustment was due to lower average assessment rates.
  • On December 28, 2012, the FDIC collected $623 million in DIF assessments for third quarter 2012 insurance coverage. Unearned revenue (prepaid assessments) totaled $1.6 billion on December 31, 2012; this amount excludes the projected June 2013 refund to institutions of $5.7 billion.  By regulation, any remaining prepaid assessments must be refunded to the institutions after collection of the amount due on June 30, 2013.  The final prepaid offset will occur in June 2013 for the assessment period ending March 31, 2013.  Therefore, at December 31, 2012, the “Unearned revenue – prepaid assessments” line item on the Balance Sheet represents the final estimated prepaid offset and the “Refunds of prepaid assessments” line item reflects the estimate that will be returned to the institutions in June 2013.  Though the combined total for both the prepaid offset and refunds will remain unchanged, the estimated amount for each component may vary considerably because of the uncertainty inherent in projecting the assessment rate and base for insured depository institutions beyond the customary 90-day period.

Unearned Revenue (prepaid assessments) at Quarter-End

4th Quarter 2012 Unearned Assessments (prepaid assessments) at Quarter-End
Dollars in billions
December 2009
March 2010
June 2010
September 2010
December 2011
March 2011
June 2011
Septemer 2011
December 2011
March 2012
June 2012
September 2012
December 2012


Last Updated 04/24/2013

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