I. Financial Results - Second Quarter 2023
Deposit Insurance Fund (DIF)
- For the first half of 2023, the DIF’s comprehensive loss totaled $11.3 billion compared to comprehensive income of $1.3 billion for the same period last year. This $12.6 billion year-over-year change was primarily due to an $18.4 billion increase in provision for insurance losses, partially offset by a $2.4 billion increase in assessment revenue and a $4.2 billion increase in market valuation adjustments on U.S. Treasury (UST) securities. Because of securities sales that took place in the first half of 2023, the DIF recognized net realized losses of $1.6 billion. As a result of these sales and the removal of those realized losses, the DIF carried a $2.0 billion unrealized gain on its investment portfolio as of June 30, 2023.
- The provision for insurance losses totaled $18.4 billion for the first six months of 2023, primarily resulting from the $18.3 billion estimated losses to the DIF recorded for the three failures that occurred in the first half of 2023.
- 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.
- In March 2023, the DIF recorded a special assessments receivable totaling $15.8 billion for a systemic risk exception covering the uninsured deposits for the Silicon Valley Bank and Signature Bank failures. Per a notice of proposed rulemaking (NPR) issued in May 2023, the assessment base for the special assessments will be equal to an insured depository institution’s (IDI) estimated uninsured deposits, reported as of December 31, 2022, adjusted to exclude the first $5 billion in estimated uninsured deposits from the IDI. The NPR also proposes that this special assessment will be collected at an annual rate of approximately 12.5 basis points, over eight quarterly assessment periods beginning with the first quarterly assessment period of 2024. A final rule on this special assessment is expected later this year.
Assessments
- During June, the DIF recognized assessment revenue of $3.2 billion for the estimate of second quarter 2023 insurance coverage. Additionally, the DIF recognized a $104 million adjustment for lower-than-estimated collections for the first quarter 2023 insurance coverage, which decreased assessment revenue.
- On June 30, 2023, the FDIC collected $3.1 billion in DIF assessments for first quarter 2023 insurance coverage.