Chief Financial Officer's (CFO) Report to the Board
301 Moved Permanently
Executive Summary - Third Quarter 2016
The attached report highlights the Corporation’s financial activities and results for the quarter ended September 30, 2016.
- During the third quarter of 2016, the Deposit Insurance Fund (DIF) balance increased by $2.8 billion, from $77.9 billion to $80.7 billion. This quarterly increase was primarily due to $2.6 billion of assessment revenue, $171 million of interest on U.S. Treasury securities, and a $566 million decrease in provision for insurance losses, partially offset by $422 million in operating expenses and a $167 million unrealized loss on U.S. Treasury securities.
- The reserve ratio, which is the ratio of the DIF balance to estimated insured deposits, was 1.18 percent for the third quarter 2016, compared to the second quarter 2016 reserve ratio of 1.17 percent.
- During the third quarter of 2016, the FDIC was named receiver for 2 failed institutions. The assets at inception for these failed institutions were $85 million with estimated losses of $12 million. The corporate cash outlay during the third quarter for these failures was approximately $10 million.
- Through September 30, 2016, overall FDIC Operating Budget expenditures were below budget by 10 percent ($154 million). Spending in the Ongoing Operations component was $73 million, or 5 percent, under budget, largely due to underspending for salaries and compensation and contractual services. Spending in the Receivership Funding component was $81 million, or 29 percent, under budget, primarily due to lower-than-budgeted spending for contractual services related to failed financial institutions.
On the pages following is an assessment of each of the three major finance areas: financial statements, investments, and budget.