Chief Financial Officer's (CFO) Report to the Board
I. Corporate Fund Financial Results - First Quarter 2016
Deposit Insurance Fund (DIF)
- For the first quarter of 2016, the DIF’s comprehensive income totaled $2.5 billion, equivalent to the amount reported in the same period last year. Although assessment revenue and earnings (interest and net unrealized gains) on U.S. Treasury obligations were higher in 2016 than 2015 ($139 million and $268 million, respectively), there were smaller negative provision for losses in 2016 compared to last year (negative $43 million in 2016 vs. negative $426 million in 2015).
- The provision for insurance losses was a negative $43 million for the first quarter of 2016. The negative provision primarily resulted from a $97 million decrease in the estimated losses for institutions that failed in current and prior years, partially offset by a $48 million increase in the estimated losses for future failures.
- During March, the DIF recognized assessment revenue of $2.3 billion. Of this amount, $2.2 billion represented the estimate for first quarter 2016 insurance coverage. Additionally, the DIF recognized an adjustment of $90 million that increased assessment revenue. This adjustment consisted of $36 million primarily due to prior period amendments from compliance review activity and a $54 million increase to the estimate for fourth quarter 2015 insurance coverage recorded at December 31, 2015. The latter adjustment was primarily due to higher than estimated assessment base and rates for large banks.
- On March 30, 2016, the FDIC collected $2.3 billion in DIF assessments for fourth quarter 2015 insurance coverage.