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FDIC Quarterly Banking Profile

DEPOSIT INSURANCE FUND TRENDS
FOURTH QUARTER 2015

Notes to Users

  • DIF Reserve Ratio Rises 2 Basis Points to 1.11 Percent
  • Insured Deposits Increase by 1.8 Percent
  • Two Institutions Failed During Fourth Quarter
  • Total assets of the 6,182 FDIC-insured institutions increased by 1.1 percent ($167.8 billion) during the fourth quarter of 2015. Total deposits increased by 1.7 percent ($199.4 billion), domestic office deposits increased by 2.4 percent ($255.9 billion), and foreign office deposits decreased by 4.2 percent ($56.5 billion). Domestic interest-bearing deposits increased by 2.8 percent ($215.1 billion), and noninterest-bearing deposits increased by 1.4 percent ($40.7 billion). For the 12 months ending December 31, total domestic deposits grew by 5.2 percent ($536.9 billion), with interest-bearing deposits and non-interest-bearing deposits each increasing by 5.2 percent ($388.8 billion and $148.1 billion, respectively).1 Other borrowed money increased by 5.1 percent, securities sold under agreements to repurchase declined by 16.4 percent, and foreign office deposits declined by 8 percent over the same 12-month period.2

    Total estimated insured deposits increased by 1.8 percent in the fourth quarter of 2015.3 For institutions existing at the start and the end of the most recent quarter, insured deposits increased during the quarter at 4,311 institutions (70 percent), decreased at 1,846 institutions (30 percent), and remained unchanged at only 32 institutions. Estimated insured deposits increased by 5.3 percent over the 12 months ending December 31, 2015.

    The DIF increased by $2.5 billion during the fourth quarter of 2015 to $72.6 billion (unaudited). Assessment income of $2.2 billion and a negative provision for insurance losses of $930 million were the main drivers behind the fund balance increase. Interest on investments and other miscellaneous income added another $140 million to the fund. Fourth quarter operating expenses and unrealized losses on available for sale securities reduced the fund balance by $745 million. For all of 2015, eight insured institutions failed, with combined assets of $6.7 billion, at a current estimated cost to the DIF of $0.8 billion. The DIF’s reserve ratio was 1.11 percent on December 31, up from 1.09 percent at September 30, 2015, and 1.01 percent four quarters ago. In 2011, as part of the FDIC’s long-term fund management plan, the FDIC Board of Directors adopted a lower rate schedule for regular risk-based assessments that will go into effect the quarter after the DIF reserve ratio first meets or exceeds 1.15 percent.4

    Effective April 1, 2011, the deposit insurance assessment base changed to average consolidated total assets minus average tangible equity.5 Revisions to insurance assessment rates and risk-based pricing rules for large banks (banks with assets greater than $10 billion) also became effective on that date.6 Table 1 shows the distribution of the assessment base as of December 31, by institution asset size category.

    Table 1
    Distribution of the Assessment Base for FDIC-Insured Institutions*
    by Asset Size
    Data as of December 31, 2015
    Asset Size Number of Institutions Percent of Total Institutions Assessment Base**
    ($ Billion)
    Percent of Base
    Less Than $1 Billion 5,480 88.6 $1,144.3 8.3
    $1 - $10 Billion 595 9.6 1,485.9 10.8
    $10 - $50 Billion 67 1.1 1,348.2 9.8
    $50 - $100 Billion 14 0.2 861.2 6.2
    Over $100 Billion 26 0.4 8,939.7 64.9
    Total 6,182 100.0 13,779.4 100.0

    * Excludes insured U.S. branches of foreign banks.

    ** Average consolidated total assets minus average tangible equity, with adjustments for banker's banks and custodial banks.

    Dodd-Frank requires that, for at least five years, the FDIC must make available to the public the reserve ratio and the DRR using both estimated insured deposits and the new assessment base as the denominator. As of December 31, 2015, the FDIC reserve ratio would have been 0.53 percent using the new assessment base (compared to 1.11 percent using estimated insured deposits), and the 2 percent DRR using estimated insured deposits would have been 0.95 percent using the new assessment base.

    TABLE I-C. Insurance Fund Balances and Selected Indicators

    DIF Reserve Ratios

    Deposit Insurance Fund Balance and Insured Deposits

    TABLE II-C. Problem Institutions and Failed Institutions

    TABLE III-C. Estimated FDIC-Insured Deposits by Type of Institution

    TABLE IV-C. Distribution of Institutions and Assessment Base by Assessment Rate Range

    Number of FDIC-Insured 'Problem' Institutions

    Assets of FDIC-Insured 'Problem' Institutions


    Footnotes

    1Throughout the insurance fund discussion, FDIC-insured institutions include insured commercial banks and savings associations and, except where noted, exclude insured branches of foreign banks.

    2Other borrowed money includes FHLB advances, term federal funds, mortgage indebtedness, and other borrowings.

    3Figures for estimated insured deposits in this discussion include insured branches of foreign banks, in addition to insured commercial banks and savings institutions.

    4Adoption of Federal Deposit Insurance Corporation Restoration Plan, 75 Fed. Reg. 66293 (Oct. 27, 2010).

    5There is an additional adjustment to the assessment base for banker’s banks and custodial banks, as permitted under Dodd-Frank.

    6The Fourth Quarter 2010 Quarterly Banking Profile includes a more detailed explanation of these changes.