Chief Financial Officer's (CFO) Report to the Board
I. Executive Summary - First Quarter 2017
The attached report highlights the Corporation’s financial activities and results for the quarter ended March 31, 2017.
- During the first quarter of 2017, the Deposit Insurance Fund (DIF) balance was $84.9 billion, up $1.8 billion from year-end 2016. The quarterly increase was primarily due to $2.7 billion of assessment revenue and $227 million of interest on U.S. Treasury securities, partially offset by $765 million in provision for insurance losses and $442 million of operating expenses.
- The reserve ratio, which is the ratio of the DIF balance to estimated insured deposits, was 1.20 percent for the first quarter 2017, unchanged from the fourth quarter 2016, due in part to strong growth in estimated insured deposits.
- During the first quarter of 2017, the FDIC was named receiver for three failed institutions. The combined assets at inception for these failed institutions were $469 million with estimated losses of $91 million. The corporate cash outlay during the first quarter for these failures was approximately $101 million.
- Through March 31, 2017, overall FDIC Operating Budget expenditures were below budget by 7 percent ($36 million). This variance was primarily the result of vacancies in budgeted positions in the Ongoing Operations component of the budget and lower-than-budgeted usage of contractual services in the Receivership Funding component of the budget.
On the pages following is an assessment of each of the three major finance areas: financial statements, investments, and budget.