Executive Summary - First Quarter 2021
The attached report highlights the FDIC’s financial activities and results for the quarter ended March 31, 2021.
- During the first quarter of 2021, the Deposit Insurance Fund (DIF) balance rose to a record $119.4 billion as of March 31, 2021, up $1.5 billion from the December 31, 2020 balance of $117.9 billion. The quarterly increase was primarily due to $1.9 billion in assessment revenue, partially offset by $454 million in operating expenses.
- The reserve ratio, which is the ratio of the DIF balance to estimated insured deposits, was 1.25 percent at March 31, 2020. Strong estimated insured deposit growth caused the reserve ratio to decrease by our basis points from December 31, 2020.
- There were no financial institution failures during the first quarter of 2021; the last failure occurred on October 23, 2020.
- Through March 31, 2021, overall FDIC Operating Budget expenditures were below the year-to-date budget by about $58.6 million, or 11 percent. This variance was primarily the result of underspending of $54.1 million in the Ongoing Operations budget component. The largest variances were in the Salaries and Compensation expense category ($24.3 million, or 7 percent) due to unfilled vacancies in authorized positions and the Travel expense category ($11.8 million, or 85 percent) due to travel restrictions during the COVID-19 pandemic. To ensure preparedness to address the possible emergence of problems within the banking industry, FDIC divisions and offices will give priority during the second quarter to filling authorized vacancies.