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Federal Deposit
Insurance Corporation

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

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

DIF Balance Sheet - First Quarter 2016

Fund Financial Results ($ in millions)
Balance Sheet
 
Unaudited
Mar-16
Audited
Dec-
15
Quarterly
Change
Unaudited
Mar-15
Year-Over-Year
Change
Cash and cash equivalents $3,519 $877 $2,642 $3,729 ($210)
Investment in U.S. Treasury obligations, net 63,833 62,497 1,336 50,591 13,242
Assessments receivable, net 2,238 2,172 66 2,051 187
Interest receivable on investments and other assets, net 474 418 56 373 101
Receivables from resolutions, net 9,638 11,578 (1,940) 17,258 (7,620)
Property and equipment, net 370 378 (8) 365 5
Total Assets $80,072 $77,920 $2,152 $74,367 $5,705
Accounts payable and other liabilities 217 273 (56) 243 (26)
Liabilities due to resolutions 4,059 4,419 (360) 7,868 (3,809)
Postretirement benefit liability 233 233 - 243 (10)
Contingent liability for anticipated failures 443 395 48 717 (274)
Contingent liability for litigation losses - - - - -
Total Liabilities $4,952 $5,320 ($368) $9,071 $(4,119)
FYI: Unrealized gain (loss) on U.S. Treasury investments, net 403 (9) 412 282 121
FYI: Unrealized postretirement benefit (loss) gain (34) (34) - (58) 24
Fund Balance $75,120 $72,600 $2,520 $65,296 $9,824
 
 

Positive Impact on the Fund Balance from the 1st Qtr 2016 Adjustments to Estimated Losses for Actual and Future Failure (dollars in millions)

DIF Fund Balance
 
Dollars in millions

Professional liability claims, litigation settlements, and tax refunds received by receiverships

$126

Greater-than-anticipated collections from receivership assets

$23

Receivership share-loss liability

($46)

Estimated losses for future failures

($48)

Adjustments to receivership contingent liabilities

($6)

Total net adjustments to the DIF

$49

The estimated recoveries from assets held by receiverships and estimated payments related to shared-loss covered assets and other liabilities are used to derive the loss allowance on the receivables from resolutions.

The $23 million adjustment resulted from greater-than-anticipated collections from a receivership’s investment in a structured transaction.

The $46 million net adjustment to the receiverships’ shared-loss liability primarily resulted  from higher than estimated final payments on commercial shared-loss agreements (SLA) where loss coverage expired, net of savings on early SLA terminations.

The $6 million adjustment resulted from a $9 million increase in estimated rep & warranty liabilities, net of a $3 million decline in estimated litigation liabilities.

 

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