BRIEFLY: FDIC’s DIF reserve ratio dropped in first quarter (so did bank net interest margins); New date for NASCUS 101; Happy Memorial Day holiday

(May 28, 2021) The reserves-to-deposits-insured ratio of the FDIC’s Deposit Insurance Fund (DIF) slipped four points in the first quarter, to 1.25%, the lowest point in nearly four years. The minimum required level of the DIF is 1.35%; in September of last year, the FDIC published a restoration plan for the fund that provided for continued monitoring, but no change in assessment rates. The designated reserve ratio (DRR) for the fund is 2%, which the agency defines as the “the minimum level needed to withstand future crises of the magnitude of past crises.” The FDIC attributed the first quarter 2021 DIF reserve ratio drop to strong deposit growth (even though the fund’s reserves grew by $1.5 billion, to a total of $119.4 billion) … Also this week, the FDIC announced that bank net interest margins (a key profitability indicator) dropped to record lows in the first quarter – driven mostly by larger institutions … The first NASCUS 101 for 2021 will be June 24 – a change from the date published in last week’s NASCUS Report (June 10); mark your calendars accordingly! … Have a terrific (and safe) Memorial Day Holiday! (NASCUS’ offices will be closed that day)

FDIC-Insured Institutions Reported Net Income of $76.8 Billion In First Quarter 2021

NASCUS 101 (via the NASCUS Member Portal)