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I.
Corporate Fund Financial Results - Fourth Quarter 2014
Deposit Insurance Fund (DIF)
- For 2014, the DIF’s comprehensive income totaled $15.6 billion compared to comprehensive income of $14.2 billion for 2013. This $1.4 billion year-over-year increase was primarily due to a $2.6 billion decrease in the provision for insurance losses, which was partially offset by a $1.1 billion decrease in assessment revenue and a $136 million decrease in other revenue.
- The provision for insurance losses was negative $8.3 billion for 2014, compared to negative $5.7 billion for 2013. The negative provision for 2014 primarily resulted from a decrease of $9.1 billion in the estimated losses for institutions that failed in current and prior years, partially offset by an increase of $850 million in the contingent liability for anticipated failures due to the deterioration in the financial condition of certain troubled institutions. The $9.1 billion reduction in the estimated losses from failures was primarily attributable to: (1) unanticipated recoveries of $1.8 billion in litigation settlements, professional liability claims, and tax refunds by the receiverships and (2) a $6.7 billion decrease in the receiverships’ shared-loss liability that resulted from decreases in covered asset balances, lower future loss rate estimates, and unanticipated recoveries on shared-loss agreement losses.
Assessments
- During December, the DIF recognized a total of $2.0 billion in assessment revenue. The estimate for fourth quarter 2014 insurance coverage also totaled $2.0 billion. Additionally, the DIF recognized a net adjustment of $29 million that increased assessment revenue. This adjustment consisted of a $6 million increase from prior period amendments and a $23 million increase to the estimate for third quarter 2014 insurance coverage recorded at September 30, 2014. The latter adjustment was primarily due to higher than estimated rates and assessment base.
- On December 30, 2014, the FDIC collected $2.1 billion in DIF assessments for third quarter 2014 insurance coverage.
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