FDIC Quarterly Banking Profile Q4'24
The Federal Deposit Insurance Corporation released its latest "FDIC Quarterly Banking Profile," which says, "The [chart] shows that domestic deposits increased $214.4 billion, or 1.2 percent, during the fourth quarter. Transaction deposits increased from the prior quarter by $230.7 billion while time deposits declined $122.4 billion. Brokered deposits decreased for the fourth straight quarter, down $46.0 billion (3.6 percent) from the prior quarter. Estimated uninsured domestic deposits increased $218.5 billion, or 3.0 percent, during the quarter. Growth in estimated uninsured deposits was widespread; banks in all QBP asset size groups that report estimated uninsured deposits reported an increase in uninsured deposits from the previous quarter. The industry's insured deposits also increased, but at a slower pace. Insured deposits increased $39.1 billion quarter over quarter, or 0.4 percent." It explains, "[Another] chart shows that the DIF balance was $137.1 billion on December 31, 2024, up $4.0 billion from the third quarter. Assessment revenue continued to be the primary driver of the increase, adding $3.2 billion to the DIF balance. Interest earned on investment securities, negative provisions for insurance losses, and unrealized gains on securities also contributed a combined $1.5 billion to the fund, partially offset by operating expenses of $666 million." The FDIC adds, "`Insured deposits increased approximately 0.4 percent during the fourth quarter, while year-over-year insured deposit growth was 0.5 percent. The reserve ratio increased by 3 basis points in the fourth quarter to 1.28 percent as of December 31, 2024, and was 13 basis points higher than a year ago. The FDIC adopted a DIF Restoration Plan on September 15, 2020, to return the reserve ratio to the statutory minimum of 1.35 percent by September 30, 2028, as required by law. Based on FDIC projections, the reserve ratio remains on track to reach 1.35 percent by the statutory deadline. The FDIC will continue to monitor factors affecting the reserve ratio, including but not limited to, insured deposit growth and potential losses due to bank failures and related reserves."
