Chief Financial Officer's (CFO) Report to the Board
I. Executive Summary - Second Quarter 2019
The attached report highlights the FDIC’s financial activities and results for the quarter ended June 30, 2019.
- During the second quarter of 2019, the Deposit Insurance Fund (DIF) balance rose to $107.4 billion, up $2.6 billion from March 31, 2019. The quarterly increase was primarily due to $1.2 billion in assessment revenue, $1.2 billion in interest and unrealized gains on U.S. Treasury securities, and a $610 million increase in negative provision for insurance losses, partially offset by $459 million in operating expenses.
- The reserve ratio, which is the ratio of the DIF balance to estimated insured deposits, was 1.40 percent as of June 30, 2019. The reserve ratio was four basis points higher than March 31, 2019; growth to the DIF was strong while insured deposit growth stayed flat.
- During the second quarter of 2019, the FDIC was named receiver for one failed financial institution. The assets at inception for this failed institution was $37 million with an estimated loss of $28 million. The corporate cash outlay during the second quarter for this failure was approximately $30 million.
- Through June 30, 2019, overall FDIC Operating Budget expenditures were below the year-to-date budget by nine percent ($90 million). This variance was primarily the result of underspending in the Salaries and Compensation, Outside Services – Personnel, and Equipment expense categories in the Ongoing Operations budget component and the Outside Services – Personnel expense category in the Receivership Funding budget component.