I. Financial Results - Third Quarter 2019
Deposit Insurance Fund (DIF)
- For the nine months ending September 30, 2019, the DIF's comprehensive income totaled $6.3 billion, compared to comprehensive income of $7.5 billion for the same period last year. This decline was primarily the result of a $4.5 billion decrease in assessment revenue, partially offset by an $871 million increase in negative provision for insurance losses and a $2.5 billion increase in interest and fair value adjustments on U.S. Treasury securities.
- Assessment revenue was $3.7 billion for the first three quarters of 2019, compared to $8.2 billion for the same period last year. The $4.5 billion year-over-year decrease was primarily due to the cessation of the surcharge assessment on large institutions effective October 1, 2018, as a result of the reserve ratio exceeding the required minimum of 1.35 percent as of September 30, 2018.
- The provision for insurance losses was a negative $1.2 billion for the first nine months of 2019, compared to a negative $327 million for the same period last year. The negative provision for 2019 primarily resulted from a $574 million reduction of receiverships’ shared-loss liability estimates, $443 million in unanticipated recoveries from litigation settlements and professional liability claims by receiverships, and a $103 million reduction in future receivership expense estimates.
Assessments
- During September, the DIF recognized $1.1 billion of assessment revenue for the estimate of third quarter 2019 insurance coverage. Gross assessment revenue of $1.35 billion was reduced by $237 million for expected small bank assessment credit usage. Additionally, the DIF recognized a $3.8 million reduction in assessment revenue for the estimated versus actual 2nd quarter 2019 assessment collection.
- On September 30, 2019, the FDIC collected $1.1 billion in DIF assessments for second quarter 2019 insurance coverage.