Chief Financial Officer's (CFO) Report to the Board
I. Corporate Fund Financial Results - Second Quarter 2017
Deposit Insurance Fund (DIF)
- For the six months ending June 30, 2017, the DIF’s comprehensive income totaled $4.4 billion compared to comprehensive income of $5.3 billion for the same period last year. This $884 million decline was primarily the result of a $1.2 billion increase in provision for insurance losses (year-to-date 2017 positive $532 million versus year-to-date 2016 negative $670 million) and a $527 million lower contribution to year-to-date comprehensive income from unrealized (loss)/gain on U.S. Treasury securities (year-to-date 2017 unrealized loss of $5 million versus year-to-date 2016 unrealized gain of $522 million), partially offset by a $715 million increase in assessment revenue and a $167 million increase in interest revenue.
- The provision for insurance losses was $532 million for the first half of 2017, largely attributable to a $683 million adjustment for higher-than-anticipated losses for the current year failures, partially offset by a $103 million reduction to the receivership’s representation and warranty liabilities and $63 million in unanticipated recoveries by receiverships.
Assessments
- During June, the DIF recognized assessment revenue of $2.6 billion. Of this amount, $1.4 billion represented the estimate for second quarter 2017 insurance coverage and $1.2 billion represented estimated surcharges on banks with $10 billion or more in assets. Additionally, the DIF recognized a $43 million adjustment for lower-than-estimated collections for first quarter 2017 insurance coverage (regular assessments: $37 million and surcharges: $6 million), which decreased assessment revenue.
- On June 30, 2017, the FDIC collected $1.4 billion in DIF assessments and $1.2 billion in surcharge assessments for first quarter 2017 insurance coverage.