Executive Summary - Fourth Quarter 2023
The attached report highlights the FDIC’s financial activities and results for the quarter ended December 31, 2023.
- During the fourth quarter of 2023, the Deposit Insurance Fund (DIF) balance increased to $121.8 billion as of December 31, 2023, up $2.5 billion from the September 30, 2023 balance of $119.3 billion. The quarterly increase was primarily due to a $23.5 billion increase in assessment revenue, offset by a $21.3 billion increase in provision for insurance losses. The majority of the quarterly increase in provision for insurance losses represents estimated losses of $20.4 billion 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 a special assessment. As a result, the $23.5 billion increase in assessment revenue was primarily related to the $20.4 billion of special assessments associated with the protection of uninsured depositors.
- The reserve ratio—the fund balance relative to insured deposits—increased by two basis points in the fourth quarter to 1.15 percent.
- During the fourth quarter of 2023, the FDIC was named receiver for one failed institution, Citizens Bank. The assets at inception for Citizens totaled approximately $60 million with an estimated loss of $15 million. The corporate cash outlay during the fourth quarter for this institution was $14 million.
- Overall FDIC Operating Budget expenditures for 2023 were $359.3 million (11 percent) below the full-year budget. In the Ongoing Operations budget component, expenditures were approximately $216.7 million (9 percent) below budget, primarily as a result of vacancies in budgeted positions, less-than-anticipated travel for examinations, and delays in some IT and facilities modernization projects. Expenditures in the Receivership Funding budget component were below budget by $141.4 million (17 percent) because costs were lower than initially estimated for the resolution of three large regional bank failures in the first half of the year.