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I.
Corporate Fund Financial Results - Third Quarter 2011
Deposit Insurance Fund (DIF)
- For the nine months ended September 30, 2011, the DIF’s comprehensive income totaled $15.2 billion compared to comprehensive income of $12.9 billion for the same period last year. This $2.3 billion year-over-year increase was primarily due to a $2.7 billion decrease in the provision for insurance losses and a $177 million increase in assessments earned, partially offset by a $471 million unrealized loss on trust preferred securities, and a $150 million increase in operating expenses.
- The provision for insurance losses was negative $5.9 billion for the nine months ended September 30, 2011. The negative provision primarily resulted from a reduction in the contingent loss reserve due to the improvement in the financial condition of institutions that were previously identified to fail and a reduction in the estimated losses for prior year failures where recent liquidation activity yielded recoveries higher than previously estimated.
.Assessments
- During the third quarter 2011, the DIF recognized $3.6 billion in assessment revenue. For third quarter 2011 insurance coverage, $3.2 billion was recognized for those institutions that prepaid assessments, and $231 million was recorded as a receivable from those institutions that did not prepay assessments. An additional $226 million in assessment revenue was recognized for the difference between the actual amount of assessments for second quarter 2011 coverage versus the estimated amount that was recognized at June 30, 2011.
Quarterly Assessments Permiums based on insurance coverage period ($
in millions) |
Quarter |
Quarterly Assessments Premiums |
| 4th Qtr 2008 |
$1,087 |
| 1st Qtr 2009 |
$2,593 |
| 2nd Qtr 2009 |
$3,196 |
| 3rd Qtr 2009 |
$8,622 |
| 4th Qtr 2009 |
$3,262 |
| 1st Qtr 2010 |
$3,302 |
| 2nd Qtr 2010 |
$3,461 |
| 3rd Qtr 2010 |
$3,397 |
| 4th Qtr 2010 |
$3,432 |
| 1st Qtr 2011 |
$3,450 |
| 2nd Qtr 2011 |
$3,404 |
| 3rd Qtr 2011 |
$3,411 |
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On September 30, 2011, the FDIC collected $198 million in DIF assessments for second quarter 2011 insurance coverage. Through the third quarter 2011, the DIF has recognized $10.3 billion in assessment revenue. DIF Unearned Revenue (remaining prepaid assessments) totals $20.4 billion at September 30, 2011.
- Effective April 1, 2011, the FDIC redefined the assessment base used for calculating deposit insurance assessments from estimated insured deposits (adjusted domestic deposits) to average consolidated total assets minus average tangible equity (measured as Tier 1 capital).
- The assessment collection made on September 30, 2011, was based on the revised calculation.
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