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I.
Corporate Fund Financial Results - Second Quarter 2013
Deposit Insurance Fund (DIF)
- For the six months ending June 30, 2013, the DIF’s comprehensive income totaled $4.9 billion compared to comprehensive income of $10.9 billion for the same period last year. This $6.0 billion decrease was mostly due to a decrease in other revenue of $4.1 billion, a $1.5 billion decrease in assessment revenue, and an increase in provision for insurance losses of $263 million.
- The year-over-year decrease of $4.1 billion in other revenue was primarily due to the recognition of $4.0 billion in revenue in June 2012 for the Debt Guarantee Program fees that were previously held as systemic risk deferred revenue.
- The year-over-year decrease of $1.5 billion in assessment revenue was attributable to lower effective assessment rates. For the first six months of 2013, the average effective assessment rate was 8.978 basis points compared to the same period in 2012 where it was 10.782 basis points.
- The provision for insurance losses was negative $532 million for the first half of 2013. The negative provision primarily resulted from a $470 million decrease in the contingent loss reserve due to lower estimated losses from anticipated future failures and a $54 million reduction in the estimated losses for institutions that have failed in the current and prior years.
Assessments
- During the second quarter of 2013, the DIF recognized a total of $2.5 billion in assessment revenue. The estimate for second quarter 2013 insurance coverage totaled $2.6 billion. Additionally, the DIF recognized a net adjustment of $67 million that reduced assessment revenue. This adjustment consisted of $1 million in prior period amendments and a $68 million decrease to the estimate for first quarter 2013 insurance coverage recorded at March 31, 2013. The latter adjustment was due to lower than estimated growth in the assessment base and lower average assessment rates.
- On June 28, 2013, the FDIC collected $1.2 billion in DIF assessments for first quarter 2013 insurance coverage. On the same date, the FDIC refunded $5.9 billion of prepaid assessments to 5,625 financial institutions, bringing the “Refunds of prepaid assessments” line item to a zero balance at June 30, 2013.
June 2013 Prepaid Assessment Refund to Institutions |
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Dollars in billions |
Percentage |
Number of Institutions |
| Institutions Over $100B |
$1.31 |
22% |
10 |
| Institutions between $10 - $100B |
$1.98 |
34% |
55 |
| Institutions Under $10B |
$2.56 |
44% |
5,560 |
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