
2

I. Financial Results (See pages 8 –9 for detailed data and charts.)

Deposit Insurance Fund 

• For the nine months ending September 30, 2023, the DIF’s comprehensive loss totaled $8.9 billion compared 

to comprehensive income of $2.3 billion for the same period last year. This $11.2 billion year-over-year 

change was primarily due to a $19.7 billion increase in provision for insurance losses, partially offset by a $3.5 

billion increase in assessment revenue and a $5.6 billion increase in market valuation adjustments on UST 

securities. 

• Total realized losses on the sale/impairment of UST securities totaled $1.8 billion for the first nine months of 

2023. 

• The provision for insurance losses was $19.7 billion for the first nine months of 2023, primarily resulting from 

approximately $19 billion in estimated losses (attributable to the DIF) for the four failures that occurred in 

2023.

• The year-over-year increase in assessment revenue was largely attributable to a 2 basis point increase in 

assessment rates beginning with first quarter 2023 insurance coverage increasing the likelihood that the 

reserve ratio would reach 1.35 basis points by the statutory deadline, consistent with the amended DIF 

restoration plan. 

Assessments 

• During September, the DIF recognized assessment revenue of $3.3 billion for the estimate of third quarter 

2023 insurance coverage. Additionally, the DIF recognized a $48 million adjustment for lower-than-estimated 

collections for the second quarter 2023 insurance coverage, which decreased assessment revenue.

• On September 29, 2023, the FDIC collected $3.2 billion in DIF assessments for second quarter 2023 insurance 

coverage.

II. Investment Results (See pages 10 – 11 for detailed data and charts.)

DIF Investment Portfolio

• On September 30, 2023, the total liquidity (also total market value) of the DIF investment portfolio stood at 

$82.76 billion, up $3.71 billion from its June 30, 2023, balance of $79.05 billion. During the quarter, deposit 

insurance assessment collections, interest revenue and receivership dividends exceeded resolution-related 

outlays and operating expenses.

• On September 30, 2023, the DIF investment portfolio’s yield was 4.689 percent, up 64 basis points from its 

4.046 percent yield on June 30, 2023. 

• In accordance with the approved third quarter 2023 DIF portfolio investment strategy, staff invested in 

overnight securities only.






o

o

o
oo

(

ooooo



oo


o

o

o

o

o
















 

8

The portfolio’s yield 

has experienced a 

dramatic shift with 

rising interest rates 

over the last 

year. This quarter’s 

increase can be 

attributed to both 

the Federal Open 

Market Committee’s 

last rate hike, a 

heavy concentration 

of funds in the 

overnight portfolio, 

and taking an 

impairment on 

certain securities in 

the conventional 

portfolio.
9

During the 3rd quarter 

2023, the provision for 

insurance losses increased 

by $1.2 billion to $19.7 

billion at 9/30/23. The total 

estimated losses for the 

three large regional bank 

failures in 2023 rose by 

$1.1 billion to $35.2 billion 

as of quarter-end. The 

portion of the estimated 

losses that are attributable 

to uninsured deposits 

($16.3 billion) will be 

recovered from the 

banking industry through a 

special assessment.
10

9/30/23 6/30/23 Change

Par Value $84,380 $80,909 $3,471

Amortized Cost $83,434 $79,776 $3,658

Total Market Value (including accrued interest) $82,759 $79,046 $3,713

Primary Reserve 1$82,759 $79,046 $3,713

Primary Reserve % of Total Portfolio 100.0% 100.0% 0.0%

Yield-to-Maturity 4.689% 4.046% 0.643%

Weighted Average Maturity (in years) 0.80 1.00 -0.20

Effective Duration (in years)

 Total Portfolio 0.76 0.96 -0.20

 Available-for-Sale Securities 21.21 1.40 -0.19

2

 Excludes any overnight investments.

9/30/23 6/30/23 Change

FRF-FSLIC

 Book Value 4 $931 $918 $13

 Yield-to-Maturity 5.40% 5.19% 0.21%

 Weighted Average Maturity overnight overnight no change

9/30/23 6/30/23 Change

Book Value 5 $4,438 $6,377 ($1,939)

Effective Annual Yield 5.43% 5.16% 0.27%

Weighted Average Maturity (in days) 2 4 (2)

5

 Due to the short-term nature of the NLF portfolio, its Book and Market Values are identical for reporting purposes.

Summary of Other Corporate Investment Portfolios

(Dollar Values in Millions)

4

 Due to the current short-term nature of this portfolio, its respective Par, Book, and Market Values are identical for reporting purposes.

Deposit Insurance Fund Portfolio Summary

(Dollar Values in Millions)

1

 Primary Reserve is the total market value (including accrued interest) of overnight investments, all available-for-sale securities, and 

held-to-maturity securities maturing within three months.

National Liquidation Fund (NLF) Investment Portfolio Summary

(Dollar Values in Millions)
11

DEPOSIT INSURANCE FUND

Maintain a minimum balance of $8 billion in the overnight account. Excess funds will be 

used to purchase overnight securities only.

Purchase overnight securities only. Sell, if needed, with regard to the shape and slope of 

the yield curve.

NATIONAL LIQUIDATION FUND

Maintain a minimum balance of $0.25 billion in the FHLBNY overnight account. Invest 

excess funds in Government MMFs and agency discount notes of less than 6-month 

maturities.

Investment Strategies

Strategy for the 4th Quarter 2023

Strategy for the 3rd Quarter 2023

Strategy for the 3rd Quarter 2023

Strategy changes for the 4th Quarter 2023

Maintain a minimum balance of $0.25 billion in the FHLBNY overnight account. Invest 

excess funds in Government MMFs and agency discount notes of less than 6-month 

maturities.
12

* Totals may not foot due to rounding.

1) The OIG year-to-date expenses have been reduced by approximately $1.8 million to reflect expenses that 

were incurred in 2022.
13

1) The OIG year- to- date expenses have been reduced by approximately $1.8 million to reflect expenses that 

were incurred in 2022.

2) Executive Support includes the Offices of Minority and Women Inclusion, Communications, Ombudsman, 

Legislative Affairs, and Financial Institution Adjudication. 

3) Executive Offices include the offices of the Chairman, Vice Chairman, Independent Director, Deputy to the 

Chairman and Chief Operating Officer, Deputy to the Chairman and Chief Financial Officer, Deputy to the 

Chairman for Policy, Deputy to the Chairman for External Affairs, Deputy to the Chairman for Financial Stability, 

and Chief Information Officer/Chief Privacy Officer.

4) This reflects a contingency reserve in the Ongoing Operations budget component to meet unanticipated 

budget requirements that may arise during the year.

5) Totals may not foot due to rounding.