I. Financial Results - Fourth Quarter 2021
Deposit Insurance Fund (DIF)
- The DIF’s comprehensive income totaled $5.2 billion for 2021 compared to $7.5 billion during 2020, a decrease of $2.3 billion. This year-over-year decrease resulted from a decline in interest revenue on UST securities of $730 million and a decline in market value adjustments on UST securities of $1.7 billion.
- The DIF’s interest revenue on UST securities for 2021 was nearly $1.0 billion, compared to $1.7 billion in 2020. The $730 million year-over-year decrease occurred despite the $4.1 billion increase in the investment portfolio, as maturities continue to be reinvested into lower yielding securities.
- During 2021, the DIF recognized an unrealized loss on UST securities of $1.2 billion, down from a $483 million unrealized gain in 2020. This decrease was primarily due to yields rising, as market participants priced in the withdrawal of economic support from the Federal Reserve and potential rate hikes for 2022.
Assessments
- During December, the DIF recognized assessment revenue of $1.7 billion for the estimate of fourth quarter 2021 insurance coverage. Additionally, the DIF recognized a $257 million adjustment for prior period amendments and higher-than-estimated collections for the third quarter 2021 insurance coverage, which increased assessment revenue.
- On December 30, 2021, the FDIC collected $1.9 billion in DIF assessments for third quarter 2021 insurance coverage.