I. Financial Results - Fourth Quarter 2023
Deposit Insurance Fund (DIF)
- In 2023, the DIF’s comprehensive loss totaled $6.4 billion compared to comprehensive income of $5.1 billion in 2022. The year-over-year change of $11.5 billion was primarily due to a $41.0 billion increase in provision for insurance losses and a $2.3 billion realized loss on the sale of U.S. Treasury (UST) securities, partially offset by a $24.9 billion increase in assessment revenue, a $5.8 billion increase in UST securities market valuation adjustments, and a $1.5 billion increase in interest revenue from UST securities.
- The provision for insurance losses was $41.0 billion for 2023, primarily resulting from approximately $40.4 billion in estimated losses for the five failures that occurred in 2023. Of the $40.4 billion, $20.4 billion represents estimated losses resulting from the coverage of uninsured deposits pursuant to two separate systemic risk determinations for Silicon Valley Bank and Signature Bank, which by law must be recovered through one or more special assessments.
- Assessment revenue was $33.2 billion for 2023, compared to $8.3 billion for 2022. The $24.9 billion year-over-year increase was primarily related to the $20.4 billion of special assessments associated with the protection of uninsured depositors along with a 2 basis point increase in assessment rates beginning with the first quarter 2023 insurance coverage as mandated by the amended Restoration Plan.
- In 2023, the FDIC sold UST securities for total proceeds of $79.8 billion resulting in a total net realized loss of $2.3 billion.
- The DIF’s interest revenue on UST securities for 2023 was $2.7 billion, compared to $1.2 billion in 2022. The $1.5 billion year-over-year increase resulted from maturities being reinvested in higher yielding securities.
Assessments
- During December, the DIF recognized assessment revenue of $3.2 billion for the estimate of fourth quarter 2023 insurance coverage. Additionally, the DIF recognized a $129 million adjustment for lower-than-estimated collections for the third quarter 2023 insurance coverage, which decreased assessment revenue.
- On December 29, 2023, the FDIC collected $3.1 billion in DIF assessments for third quarter 2023 insurance coverage.