ANNUAL REPORT 2013

2 FEDERAL DEPOSIT INSURANCE CORPORATION

FEDERAL DEPOSIT INSURANCE CORPORATION

550 17th Street NW, Washington, DC 20429 OFFICE OF THE CHAIRMAN

March 14, 2014

Dear Sir,

In accordance with:

♦ the provisions of section 17(a) of the Federal Deposit Insurance Act,

♦ the Chief Financial Officers Act of 1990, Public Law 101-576, 

♦ the Government Performance and Results Act of 1993 (as amended) and the GPRA Modernization Act of 2010,

♦ the provisions of Section 5 (as amended) of the Inspector General Act of 1978, and

♦ the Reports Consolidation Act of 2000,

the Federal Deposit Insurance Corporation (FDIC) is pleased to submit its 2013 Annual Report (also referred to as the 

Performance and Accountability Report), which includes the audited financial statements of the Deposit Insurance Fund 

(DIF) and the Federal Savings and Loan Insurance Corporation (FSLIC) Resolution Fund (FRF). 

In accordance with the Reports Consolidation Act of 2000, the FDIC assessed the reliability of the performance data 

contained in this report. No material inadequacies were found, and the data are considered to be complete and reliable.

Based on internal management evaluations, and in conjunction with the results of independent financial statement audits, 

the FDIC can provide reasonable assurance that the objectives of Section 2 (internal controls) and Section 4 (financial 

management systems) of the Federal Managers’ Financial Integrity Act of 1982 have been achieved, and that the FDIC has no 

material weaknesses. Additionally, the U.S. Government Accountability Office did not identify any significant deficiencies in 

the FDIC’s internal controls for 2013. We are committed to maintaining effective internal controls corporate-wide in 2014.

Sincerely,

Martin J. Gruenberg

Chairman

The President of the United States

The President of the United States Senate

The Speaker of the United States House of Representatives
ANNUAL REPORT 2013 3

Table of Contents

Message from the Chairman........................................................................................................5

Message from the Chief Financial Officer..................................................................................11

I. Management’s Discussion and Analysis ................................................................................13

The Year in Review ............................................................................................................................................13

Overview.................................................................................................................................................................................... 13

Insurance ................................................................................................................................................................................... 13

Activities Related to Systemically Important Financial Institutions.................................................................................. 15

Supervision and Consumer Protection .................................................................................................................................. 19

Resolutions and Receiverships ............................................................................................................................................... 37

Effective Management of Strategic Resources ..................................................................................................................... 43

II. Financial Highlights...............................................................................................................47

Deposit Insurance Fund Performance ....................................................................................................................................... 47

Corporate Operating Budget......................................................................................................................................................... 49

Investment Spending ..................................................................................................................................................................... 50

III. Performance Results Summary......................................................................................................51

Summary of 2013 Performance Results by Program................................................................................................................. 51

2013 Budget and Expenditures by Program .............................................................................................................................. 53

Performance Results by Program and Strategic Goal............................................................................................................... 54

Prior Years’ Performance Results ................................................................................................................................................ 59

IV. Financial Section...................................................................................................................67

Deposit Insurance Fund (DIF) ..................................................................................................................................................... 68

FSLIC Resolution Fund (FRF)...................................................................................................................................................... 89

Government Accountability Office Auditor’s Report................................................................................................................. 99

Management’s Response ............................................................................................................................................................. 106

V. Corporate Management Control ........................................................................................109

Management Report on Final Actions ....................................................................................................................................... 109

VI. Appendices.........................................................................................................................113

A. Key Statistics............................................................................................................................................................................ 113

B. Overview of the Industry........................................................................................................................................................ 129

C. More About the FDIC.............................................................................................................................................................. 131

D. Office of Inspector General’s Assessment of the Management and Performance Challenges Facing the FDIC ....... 140
INSURING DEPOSITS • EXAMINING INSTITUTIONS • 

MANAGING RECEIVERSHIPS • EDUCATING CONSUMERS

In its unique role as deposit insurer of banks and savings associations, and 

in cooperation with the other state and federal regulatory agencies, the 

FDIC promotes the safety and soundness of the U.S. financial system and 

insured depository institutions by identifying, monitoring, and addressing 

risks to the Deposit Insurance Fund (DIF).

The FDIC promotes public understanding and the development of sound 

public policy by providing timely and accurate financial and economic 

information and analyses. It minimizes disruptive effects from the failure 

of financial institutions and promotes fairness in the sale of financial 

products and the provision of financial services.

The FDIC’s long and continuing tradition of excellence in public service 

is supported and sustained by a highly skilled and diverse workforce that 

continuously monitors and responds rapidly and successfully to changes in 

the financial environment. 

At the FDIC, we are working together to be the best.