Chief Financial Officer's (CFO) Report to the Board
I. Executive Summary - First Quarter 2018
The attached report highlights the Corporation’s financial activities and results for the quarter ended March 31, 2018.
- During the first quarter of 2018, the Deposit Insurance Fund (DIF) balance was $95.1 billion, up $2.3 billion from year-end 2017. The quarterly increase was primarily due to $2.9 billion of assessment revenue, partially offset by a $496 million unrealized loss on U.S. Treasury securities.
- The reserve ratio, which is the ratio of the DIF balance to estimated insured deposits, was 1.30 percent for first quarter 2018, unchanged from fourth quarter 2017, due primarily to strong growth in estimated insured deposits.
- There were no financial institution failures during the first quarter of 2018.
- Through March 31, 2018, overall FDIC Operating Budget expenditures were below budget by 7 percent ($35 million). This variance was primarily the result of vacancies in budgeted positions and less than expected contractual services in both the Ongoing Operations and Receivership Funding components of the budget.
On the pages following is an assessment of each of the three major finance areas: financial statements, investments, and budget.