Executive Summary - Third Quarter 2023
The attached report highlights the FDIC’s financial activities and results for the quarter ended September 30, 2023.
- During the third quarter of 2023, the Deposit Insurance Fund (DIF) balance increased to $119.3 billion as of September 30, 2023, up $2.4 billion from the June 30, 2023 balance of $117.0 billion. The quarterly increase was primarily due to assessment revenue of $3.2 billion partially offset by an increase in the provision for insurance losses of $1.2 billion and an impairment loss on U.S. Treasury (UST) securities of $272 million. The increase in the provision for insurance losses was due to a $620 million net increase to the estimated losses for the 2023 bank failures and a $581 million increase in the contingent liability for anticipated failures. The $620 million net increase in estimated losses for the 2023 bank failures reflects updated asset recovery estimates, shared-loss payment estimates and higher costs of liabilities assumed by the receiverships.
- The reserve ratio increased by two basis points to 1.13 percent (from a restated reserve ratio of 1.11 percent as of June 30), as insured deposits increased by just 0.1 percent during the quarter.
- During the third quarter of 2023, the FDIC was named receiver for one failed institution, Heartland Tri-State Bank. The assets at inception for Heartland Tri-State totaled approximately $122 million with an estimated loss of $54 million. The corporate cash outlay during the third quarter for this institution was $46 million.
- Through September 30, 2023, overall FDIC Operating Budget expenditures were below the year-to-date (YTD) budget by about $244.4 million, or 11 percent. This variance was primarily the result of underspending of $180.7 million (11 percent) in the Ongoing Operations budget component and $63.5 million (13 percent) in the Receivership Funding component. Ongoing Operations expenditures were at or below 87 percent of YTD budget in every non-salary expense category. Receivership expenditures continue to be under the YTD budget primarily due to delays in the payment of settlement expenses associated with the three large bank failures earlier this year.