I. Financial Results - First Quarter 2023
Deposit Insurance Fund (DIF)
- For the first quarter of 2023, the DIF’s comprehensive loss totaled $12.1 billion compared to a comprehensive loss of $102 million for the same period last year. This year-over-year change was primarily due to a $16.4 billion increase in provision for insurance losses and a $1.7 billion realized loss on the sale of U. S. Treasury (UST) securities, partially offset by a $1.4 billion increase in assessment revenue and a $2.5 billion unrealized gain on UST securities.
- The provision for insurance losses was $16.4 billion for the first quarter of 2023 primarily resulting from a $13.7 billion increase in the contingent liability for anticipated failures and the $2.7 billion initial estimated losses for Silicon Valley Bank (SVB) and Signature Bank failures.
- The year-over-year increase in assessment revenue was largely attributable to a 2 basis point increase in assessment rates beginning with first quarter 2023 insurance coverage as mandated by the amended restoration plan.
- The DIF recognized a realized loss of $1.7 billion in March as a result of the sale of UST securities to support resolution efforts. Additionally, the $2.5 billion unrealized gain on UST securities in the first quarter 2023 is reflective of an increase in the market value of the remaining investment portfolio as a result of a decrease in yields in the longer end of the curve.
- The DIF recorded a special assessments receivable totaling $15.8 billion for a systemic risk exception covering the uninsured deposits for the SVB and Signature Bank failures.
Assessments
- During March, the DIF recognized assessment revenue of $3.2 billion for the estimate of first quarter 2023 insurance coverage. Additionally, the DIF recognized a $109 million adjustment for higher-than-estimated collections for the fourth quarter 2022 insurance coverage, which increased assessment revenue.
- On March 30, 2023, the FDIC collected $2.3 billion in DIF assessments for fourth quarter 2022 insurance coverage.