III. 

FINANCIAL 

HIGHLIGHTS 
FINANCIAL HIGHLIGHTS 83 

2020

In its role as insurer of bank and savings association 

deposits, the FDIC promotes the public’s trust in the 

safety and soundness of IDIs. The following financial 

highlights address the performance of the Deposit 

Insurance Fund. 

DEPOSIT INSURANCE 

FUND PERFORMANCE 

The DIF balance was $117.9 billion at December 31, 

2020, an increase of $7.5 billion from the year-end 2019 

balance. The DIF’s comprehensive income totaled 

$7.5 billion for 2020 compared to comprehensive 

income of $7.7 billion during 2019. While assessment 

revenue increased year-over-year by $2.2 billion, this 

was fully ofset by a year-over-year reduction in the 

negative provision for insurance losses of $1.1 billion 

and a decrease in interest and unrealized gains on U.S. 

Treasury securities of $1.2 billion. 

Assessment revenue was $7.1 billion for 2020, compared 

to $4.9 billion for 2019. The $2.2 billion year-over-year 

increase was primarily due to the combination of 

assessment base growth, higher assessment rates, and 

the wind-down of small bank assessment credit usage. 

The DIF’s interest revenue on U.S. Treasury securities 

for 2020 was $1.7 billion, compared to $2.1 billion in 

2019. The $0.4 billion year-over-year decrease resulted 

from record low yields even though the investment 

portfolio was $10.4 billion larger at year-end 2020 than 

year-end 2019. 

The provision for insurance losses was a negative $157 

million for 2020, compared to negative $1.3 billion for 

2019. The negative provision of $157 million in 2020 

reflected adjustments to loss estimates for prior year 

failures largely as a result of unanticipated recoveries 

from professional liability claims and litigation 

settlements by receiverships, as well as reductions 

to receivership future liquidation expense estimates. 

The provision balance for 2019 reflected much larger 

decreases in loss estimates for prior year bank failures 

primarily arising from shared-loss liability reductions 

as well as unanticipated recoveries from litigation 

settlements and professional liability claims by 

receiverships. 

During 2020, the DIF recognized an unrealized gain on 

U.S. Treasury securities of $483 million, down from a 

$1.2 billion unrealized gain in 2019. This decline is due 

to the fact that a significant portion of the securities 

in the portfolio with unrealized gains matured during 

2020 (or will do so in the first quarter of 2021). As each 

U.S. Treasury security reaches or nears its maturity, 

the market value approaches the par value, and the 

unrealized gain reduces to zero. 

The DIF’s cash, cash equivalents, and U.S. Treasury 

investment portfolio balances increased by $7.7 billion 

during 2020 to $113.8 billion at year-end 2020, from 

$106.1 billion at year-end 2019. This increase was 

primarily due to assessment collections of $6.4 billion, 

interest received on U.S. Treasury securities of $3.7 

billion, and recoveries from resolutions of $1.4 billion, 

less operating expenses paid of $1.7 billion. 
84 FINANCIAL HIGHLIGHTS

ANNUAL 

REPORT

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ESTIMATED DIF INSURED DEPOSITS 

Dollars in Billions 

$10000

$8000

$9000

$7000

$6000

$5000

$4000

$3000

$2000

$1000

0

SOURCE: Commercial Bank Call and Thrif Financial Reports 

Note: Beginning in fourth quarter 2010 through fourth quarter 2012, estimated insured deposits include the entire balance of noninterest-bearing 

transaction accounts. 

DEPOSIT INSURANCE FUND RESERVE RATIOS 

1.6

Fund Balance as a Percent 

of Estimated Insured Deposits 0.4

0.6

0.8

1.2

1.4

1.0

0.2

0.0

-0.2
DEPOSIT INSURANCE FUND SELECTED STATISTICS 

Dollars in Millions 

For the years ended December 31 

2020 2019 2018 

Financial Results 

Revenue $8,796 $7,095 $11,171 

Operating Expenses 1,846 1,796 1,765 

Insurance and Other Expenses (includes provision for losses) (155) (1,282) (560) 

Net Income 7,105 6,582 9,966 

Comprehensive Income 7,550 7,738 9,861 

Insurance Fund Balance $117,897 $110,347 $102,609 

Fund as a Percentage of Insured Deposits (reserve ratio) 1.30%1 1.41% 1.36% 

Selected Statistics 

Total DIF-Member Institutions2 5,0331 5,177 5,406 

Problem Institutions 561 51 

Total Assets of Problem Institutions $53,8841 $46,190 $48,489 

Institution Failures 4 4 

60 

0 

Total Assets of Failed Institutions in Year3 $455 $209 $0 

Number of Active Failed Institution Receiverships 234 248 

1 As of September 30, 2020. 

2 Commercial banks and savings institutions. Does not include U.S. insured branches of foreign banks. 

3 Total Assets data are based upon the last Call Report filed by the institution prior to failure. 

272 

FINANCIAL HIGHLIGHTS 85 

2020