Chief Financial Officer's (CFO) Report to the Board
Executive Summary - Fourth Quarter 2016
The attached report highlights the Corporation’s financial activities and results for the quarter ended December 31, 2016.
- During the fourth quarter of 2016, the Deposit Insurance Fund (DIF) balance increased by $2.5 billion, from $80.7 billion to $83.2 billion. The quarterly increase was primarily due to $2.7 billion of assessment revenue and a $332 million decrease in the provision for insurance losses, partially offset by $437 million of operating expenses and an unrealized loss on U.S. Treasury securities of $325 million.
- The reserve ratio, which is the ratio of the DIF balance to estimated insured deposits, was 1.20 percent for the fourth quarter 2016, compared to the third quarter 2016 reserve ratio of 1.18 percent.
- There were no financial institution failures during the fourth quarter of 2016.
- Overall FDIC Operating Budget expenditures through December 31, 2016, were below budget by 12 percent ($261 million). Spending in the Ongoing Operations component was $121 million, or 7 percent, under budget, largely due to underspending for salaries and compensation and contractual services. Spending in the Receivership Funding component was $140 million, or 35 percent, under budget, primarily due to lower-than-budgeted spending for contractual services related to financial institution failures.
On the pages following is an assessment of each of the three major finance areas: financial statements, investments, and budget.