Chief Financial Officer's (CFO) Report to the Board
I. Executive Summary - Third Quarter 2017
The attached report highlights the Corporation’s financial activities and results for the quarter ended September 30, 2017.
- During the third quarter of 2017, the Deposit Insurance Fund (DIF) balance increased by $2.9 billion, from $87.6 billion at June 30, 2017 to $90.5 billion at September 30, 2017. The quarterly increase was primarily due to $2.6 billion of assessment revenue, $274 million of interest on U.S. Treasury securities, and a $512 million decrease in provision for insurance losses, partially offset by $404 million of operating expenses.
- The reserve ratio, which is the ratio of the DIF balance to estimated insured deposits, was 1.28 percent for the third quarter 2017, compared to the second quarter 2017 reserve ratio of 1.24 percent.
- There were no financial institution failures during the third quarter of 2017.
- Through September 30, 2017, overall FDIC Operating Budget expenditures were below budget by 8 percent ($119 million). This variance was primarily the result of higher than expected vacancies in budgeted positions during the year. In addition, lower-than-anticipated expenses for facilities, outside legal counsel, and other outside services contributed to the variance.
On the pages following is an assessment of each of the three major finance areas: financial statements, investments, and budget.