FDIC Quarterly Banking Profile
DEPOSIT INSURANCE FUND TRENDS
THIRD QUARTER 2015
DIF Reserve Ratio Rises 3 Basis Points to 1.09 Percent Insured Deposits Increase by 1.1 Percent One Institution Failed During Third Quarter
Total assets of the 6,270 FDIC-insured institutions increased by 0.3 percent ($46.5 billion) during the third quarter of 2015. Total deposits increased by 0.5 percent ($58.0 billion), domestic office deposits increased by 0.6 percent ($62.7 billion), and foreign office deposits decreased by 0.3 percent ($4.7 billion). Domestic interest-bearing deposits increased by 1.1 percent ($85.4 billion), and noninterest-bearing deposits decreased by 0.8 percent ($22.7 billion). For the twelve months ending September 30, total domestic deposits grew by 4.7 percent ($476.4 billion), with interest-bearing deposits increasing by 4.4 percent ($321.7 billion) and noninterest-bearing deposits rising by 5.5 percent ($154.7 billion).1 Other borrowed money increased by 6.0 percent, securities sold under agreements to repurchase declined by 9.9 percent and foreign office deposits declined by 5.8 percent over the same twelve-month period.2
Total estimated insured deposits increased by 1.1 percent in the third 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 2,929 institutions (47 percent), decreased at 3,318 institutions (53 percent), and remained unchanged at 29 institutions. Estimated insured deposits increased by 4.5 percent over the 12 months ending September 30, 2015.
The DIF increased by $2.5 billion during the third quarter of 2015 to $70.1 billion (unaudited). Assessment income of $2.2 billion and a negative provision for insurance losses of $578 million were the main drivers behind the fund balance increase. Interest on investments, unrealized gains on available for sale securities, and other miscellaneous income added another $188 million to the fund. Third quarter operating expenses reduced the fund balance by $410 million. For the first nine months of 2015, six insured institutions failed, with combined assets of $6.4 billion, at a current estimated cost to the DIF of $0.8 billion. 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 The DIF’s reserve ratio was 1.09 percent on September 30, up from 1.06 percent at June 30, 2015, and 0.88 percent four quarters ago.
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 September 30, by institution asset size category.
Distribution of the Assessment Base for FDIC-Insured Institutions*
by Asset Size
Data as of September 30, 2015
|Asset Size||Number of Institutions||Percent of Total Institutions||Assessment Base**
|Percent of Base|
|Less Than $1 Billion||5,564||88.7||$1,147.2||8.4|
|$1 - $10 Billion||596||9.5||1,457.7||10.7|
|$10 - $50 Billion||72||1.1||1,430.3||10.5|
|$50 - $100 Billion||14||0.2||913.8||6.7|
|Over $100 Billion||24||0.4||8,674.0||63.7|
* 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 of September 30, 2015, the FDIC reserve ratio would have been 0.51 percent using the new assessment base (compared to 1.09 percent using estimated insured deposits), and the 2 percent DRR using estimated insured deposits would have been 0.94 percent using the new assessment base.
TABLE II-C. Problem Institutions and Failed Institutions