I. Financial Results - Third Quarter 2023
Deposit Insurance Fund (DIF)
- For the nine months ending September 30, 2023, the DIF’s comprehensive loss totaled $8.9 billion compared to comprehensive income of $2.3 billion for the same period last year. This $11.2 billion year-over-year change was primarily due to a $19.7 billion increase in provision for insurance losses, partially offset by a $3.5 billion increase in assessment revenue and a $5.6 billion increase in market valuation adjustments on UST securities.
- Total realized losses on the sale/impairment of UST securities totaled $1.8 billion for the first nine months of 2023.
- The provision for insurance losses was $19.7 billion for the first nine months of 2023, primarily resulting from approximately $19 billion in estimated losses (attributable to the DIF) for the four failures that occurred in 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 increasing the likelihood that the reserve ratio would reach 1.35 basis points by the statutory deadline, consistent with the amended DIF restoration plan.
Assessments
- During September, the DIF recognized assessment revenue of $3.3 billion for the estimate of third quarter 2023 insurance coverage. Additionally, the DIF recognized a $48 million adjustment for lower-than-estimated collections for the second quarter 2023 insurance coverage, which decreased assessment revenue.
- On September 29, 2023, the FDIC collected $3.2 billion in DIF assessments for second quarter 2023 insurance coverage.