Executive Summary - Fourth Quarter 2021
The attached report highlights the FDIC’s financial activities and results for the quarter ended December 31, 2021.
- During the fourth quarter of 2021, the Deposit Insurance Fund (DIF) balance rose to a record $123.1 billion as of December 31, 2021, up $1.2 billion from the September 30, 2021 balance of $121.9 billion. The quarterly increase was primarily due to a $2.0 billion increase in assessment revenue, partially offset by an unrealized loss of $536 million on U.S. Treasury (UST) securities.
- The DIF Reserve Ratio (DRR) remained at 1.27 percent as of December 31, 2021 as growth in insured deposits remained strong this quarter.
- There were no FDIC-insured financial institution failures during the fourth quarter of 2021; the last failure occurred on October 23, 2020.
- Through December 31, 2021, overall FDIC Operating Budget expenditures were below budget by about $409.9 million, or 18 percent. This variance was the result of underspending of $271.3 million in the Ongoing Operations budget component and $134.1 million in the Receivership Funding budget component. Underspending in the Ongoing Operations budget component occurred primarily in three major expense categories: Salaries and Compensation, Outside Services – Personnel, and Travel. Underspending in the Receivership Funding budget component was mostly in the Outside Services – Personnel expense category, largely reflecting the absence of any bank failures in 2021. These spending variances are explained in more detail below.