Executive Summary - Second Quarter 2021
The attached report highlights the FDIC’s financial activities and results for the quarter ended June 30, 2021.
- During the second quarter of 2021, the Deposit Insurance Fund (DIF) balance rose to a record $120.5 billion as of June 30, 2021, up $1.2 billion from the March 31, 2021 balance of $119.4 billion. The quarterly increase was primarily due to a $1.6 billion increase in assessment revenue, partially offset by a $466 million increase in operating expenses.
- The reserve ratio, which is the ratio of the DIF balance to estimated insured deposits, was 1.27 percent at June 30, 2021. Estimated insured deposits declined which caused the reserve ratio to increase by two basis points from March 31, 2021.
- There were no FDIC-insured financial institution failures during the second quarter of 2021; the last failure occurred on October 23, 2020.
- Through June 30, 2021, overall FDIC Operating Budget expenditures were below the year-to-date budget by about $109.2 million, or 10 percent. This variance was primarily the result of underspending of $102.3 million in the Ongoing Operations budget component. The largest variances were in three expense categories:
- Salaries and Compensation ($30.3 million, or 5 percent) due to unfilled vacancies in authorized positions
- Travel ($24.4 million, or 86 percent) due to the continuation of travel restrictions during the COVID-19 pandemic and,
- Outside Services – Personnel ($24.3 million, or 15 percent) due to reduced or delayed utilization of contract services in various organizations.