For the quarter ending Dec. 31, the nation’s top six banks reported charges totaling $9.4 billion related to the Federal Deposit Insurance Corp.’s special assessment aimed at replenishing the agency’s deposit insurance fund after several bank failures last year.
The fund was drained of roughly $16.3 billion after the agency agreed to backstop the uninsured deposits of Silicon Valley Bank and Signature Bank after bank runs led to their collapses last March.
The agency announced in November that the largest banks would pay the majority of the fee. Lenders with less than $5 billion in assets are excluded from paying the special assessment.
JPMorgan Chase — which, along with Bank of America, Wells Fargo and Citi — reported earnings Friday, paid the highest portion of the FDIC assessment, doling out $2.9 billion.
Despite garnering the highest special assessment fee of the top lenders, the New York City-based bank reported a record $49.6 billion in annual net income.
Bank of America’s fee to help the FDIC replenish the funds came in at $2.1 billion.
Net income at the Charlotte, North Carolina-based bank was $3.1 billion for the quarter, down more than 50% from the $7.1 billion it reported in last year’s comparable quarter.
Wells Fargo reported a special FDIC assessment charge of $1.9 billion last week.
The San Francisco-based lender reported net income of $3.45 billion Friday, up slightly from the $3.16 billion the firm reported during 2022’s fourth quarter.
Citi reported a $1.7 billion charge related to the FDIC’s special assessment. The bank, which is undergoing a reorganization, reported a $1.8 billion loss Friday as a series of charges and reserves totaling $3.8 billion hit the bank’s profit.
Goldman Sachs, which reported earnings Tuesday, said its special assessment fee totaled $529 million.
Despite the charge, the New York City-based investment bank had a strong quarter, reporting earnings of $2.01 billion, up 51% from 2022’s comparable quarter.
Morgan Stanley, which also posted its fourth quarter results Tuesday, said it was charged $286 million related to the FDIC’s special fee.
Net income at the bank was $1.5 billion for the quarter, compared with $2.2 billion it reported in last year’s comparable period.
