Chief Financial Officer's (CFO) Report to the Board
I. Executive Summary - Third Quarter 2018
The attached report highlights the Corporation's financial activities and results for the quarter ended September 30, 2018.
- During the third quarter of 2018, the Deposit Insurance Fund (DIF) balance increased by $2.6 billion, from $97.6 billion at June 30, 2018, to $100.2 billion at September 30, 2018. The quarterly increase was primarily due to $2.7 billion of assessment revenue.
- The reserve ratio reached 1.36 percent as of September 30, 2018, exceeding the statutorily required minimum reserve ratio of 1.35 percent ahead of the September 30, 2020, deadline required under the Dodd-Frank Wall Street Reform and Consumer Protection Act. As a result, FDIC regulations provide for two changes to deposit insurance assessments upon reaching the minimum: (1) surcharges on insured depository institutions with total consolidated assets of $10 billion or more (large banks) will cease; and (2) small banks will receive assessment credits for the portion of their assessments that contributed to the growth in the reserve ratio from 1.15 percent to 1.35 percent, to be applied in any quarter that the reserve ratio is at or above 1.38 percent.
- There were no financial institution failures during the third quarter of 2018; the last failure occurred on December 15, 2017.
- Through September 30, 2018, overall FDIC Operating Budget expenditures were approximately 8 percent ($124.5 million) below budget. This variance was primarily the result of vacancies in budgeted positions, delays in purchasing equipment for the new backup data center, lower-than-budgeted spending for contractual services and outside legal counsel, and delays in building improvement projects.