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8

The Federal Reserve’s rate hike cycle, 

beginning in March of 2022, resulted in 

yields rising quickly, elevating unrealized 

losses within the investment 

portfolio. With another rate hike expected 

in December, and perhaps more for 

2023, market participants are expecting 

the yield curve to continue seeing 

upward pressure. Over 60% of the 

portfolio is expected to mature by the 

end of 2023, and these securities will 

pull-to-par as the maturity dates 

approach. With a weighted average yield 

of 0.776% for the remainder of the 2022 

maturities and 0.667% for the 2023 

maturities, the reinvestment into 

significantly higher yielding securities will 

rapidly push the weighted average yield 

of the entire portfolio higher. Excludes Overnight investments 
9

The lease liability 

increased significantly 

in the 3rd quarter of 

2022 as compared to 

the 2nd quarter. The 

majority of the 

increase was due to 

new leases for the 

Atlanta and Dallas 

Regional Offices, $16 

million and $25 

million, respectively.
10

9/30/22 6/30/22 Change

Par Value $125,471 $122,284 $3,187

Amortized Cost $125,777 $123,615 $2,162

Total Market Value (including accrued interest) $123,054 $122,016 $1,038

Primary Reserve 1$123,054 $122,016 $1,038

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

Yield-to-Maturity 1.351% 0.821% 0.530%

Weighted Average Maturity (in years) 1.14 1.03 0.11

Effective Duration (in years)

 Total Portfolio 1.09 1.00 0.09

 Available-for-Sale Securities 21.15 1.06 0.09

2

 Excludes any overnight investments.

9/30/22 6/30/22 Change

FRF-FSLIC

 Book Value 4 $888 $883 $5

 Yield-to-Maturity 2.72% 1.08% 1.64%

 Weighted Average Maturity overnight overnight no change

9/30/22 6/30/22 Change

Book Value 5 $1,013 $1,293 ($280)

Effective Annual Yield 2.51% 1.48% 1.03%

Weighted Average Maturity (in days) 45 58 (13)

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

Invest up to $28 billion (par value) in AFS securities with maturities between December 

31, 2022 and July 1, 2027. 

Invest up to $23 billion (par value) in AFS securities with maturities between March 31, 

2023 and October 1, 2027. 

NATIONAL LIQUIDATION FUND

Maintain an overnight deposit target floor balance within a range of $10 million to $100 

million.

Strategically invest the remaining funds in the zero- to 12-month maturity sector.

Maintain a minimum of $200 million in the Government MMMFs and a maximum of $600 

million in Agency Discount Notes

Investment Strategies

Strategy Changes for the 4th Quarter 2022

Strategy for the 3rd Quarter 2022

Strategy for the 3rd Quarter 2022

Strategy Changes for the 4th Quarter 2022
12

Annual YTD YTD % of YTD YTD

Major Expense Category Budget Budget Expenditures Budget Used Variance

FDIC Operating Budget 

Ongoing Operations

Salaries & Compensation 1,382,125 1,027,441 951,332 93% (76,109)

Outside Services - Personnel 371,563 239,834 201,090 84% (38,744)

Travel 64,101 45,563 9,091 20% (36,472)

Buildings 147,412 114,528 82,525 72% (32,003)

Equipment 142,392 105,080 91,062 87% (14,018)

Outside Services - Other 18,135 13,973 9,249 66% (4,724)

Other Expenses 14,636 11,274 8,005 71% (3,269)

 Total Ongoing Operations * 2,140,363 1,557,694 1,352,354 87% (205,340)

Receivership Funding

Salaries & Compensation 543 408 4 1% (403)

Outside Services - Personnel 70,419 32,459 18,123 56% (14,336)

Travel 448 338 63 19% (275)

Buildings 177 133 57 43% (76)

Equipment 2,174 1,695 1,322 78% (372)

Outside Services - Other 181 130 74 57% (56)

Other Expenses 1,057 793 8 1% (785)

 Total Receivership Funding * 75,000 35,956 19,652 55% (16,304)

Office of Inspector General

Salaries & Compensation 38,447 28,627 28,222 99% (405)

Outside Services - Personnel 3,541 2,655 1,192 45% (1,464)

Travel 1,420 1,065 684 64% (381)

Buildings 0 0 0 0% 0

Equipment 2,807 2,313 1,486 64% (827)

Outside Services - Other 5 4 1 13% (3)

Other Expenses 757 568 426 75% (142)

 Total Office of Inspector General * 46,976 35,232 32,010 91% (3,223)

Total FDIC Operating Budget * 2,262,339 1,628,882 1,404,016 86% (224,866)

Executive Summary of 2022 Budget and Expenditures

by Budget Component and Major Expense Category

Through September 30, 2022

(Dollars in Thousands)

* Totals may not foot due to rounding.
13

Annual YTD YTD % of YTD YTD

Division/Office Budget Budget Expenditures Budget Used Variance

 FDIC Operating Budget 

 Risk Management Supervision $ 584,069 $ 433,604 $ 384,338 89% $ (49,266)

 Information Technology 388,614 283,957 248,016 87% (35,941)

 Administration 360,601 271,372 217,463 80% (53,909)

 Depositor & Consumer Protection 187,339 140,303 122,894 88% (17,409)

 Legal 163,765 116,988 103,683 89% (13,305)

 Resolutions & Receiverships 132,310 98,839 82,393 83% (16,446)

 Complex Institution Supervision & Resolution 104,849 77,113 64,686 84% (12,427)

 Insurance & Research 64,615 48,055 42,252 88% (5,803)

 Inspector General 46,976 35,232 32,010 91% (3,222)

 Chief Information Security Officer 49,007 33,914 31,637 93% (2,277)

 Executive Support 1

 37,327 27,093 22,906 85% (4,187)

 Finance 38,267 28,153 24,916 89% (3,237)

 Corporate University 25,283 18,904 15,526 82% (3,378)

 Executive Offices 2

 12,940 9,174 6,715 73% (2,459)

 Risk Management & Internal Controls 8,447 6,181 4,580 74% (1,601)

 Corporate Unassigned 3

 57,930 0 0 0% 0

 Total FDIC Operating Budget 4

$ 2,262,339 $ 1,628,882 $ 1,404,016 86% $ (224,866)

Executive Summary of 2022 Budget and Expenditures

by Division/Office

Through September 30, 2022

(Dollars in Thousands)

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

Legislative Affairs, and Financial Institution Adjudication. 

2) 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.

3) This includes a $36.7 million contingency reserve in the Ongoing Operations budget component and a 

$21.2 million contingency reserve in the Receivership Funding budget component to meet unanticipated 

budget requirements that may arise during the year.

4) Totals may not foot due to rounding.