FDIC Quarterly Banking Profile
DEPOSIT INSURANCE FUND TRENDS
FOURTH QUARTER 2015
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.
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**
|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|
* 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 II-C. Problem Institutions and Failed Institutions