ANNUAL REPORT

2

FEDERAL DEPOSIT INSURANCE CORPORATION

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

February 15, 2017

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, 

♦ the Reports Consolidation Act of 2000, and

♦ the provisions of the Fraud Reduction and Data Analytics Act of 2015,

the Federal Deposit Insurance Corporation (FDIC) is pleased to submit its 2016 Annual Report (also referred 

to as the Performance and Accountability Report), which includes the audited financial statements of the Deposit 

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

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. However, the U.S. Government Accountability Office did identify 

information technology issues that aggregate to a significant deficiency. The FDIC has efforts underway to address 

this deficiency. We are committed to maintaining effective internal controls corporate-wide in 2017. 

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
2016

ANNUAL REPORT 2016 3

TABLE OF CONTENTS

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

Message from the Chief Financial Officer .......................................................................................................15

I. Management’s Discussion and Analysis................................................................................................17

The Year in Review..................................................................................................................................19

Overview...........................................................................................................................................19

Implementation of Key Regulations .................................................................................................19

Deposit Insurance..............................................................................................................................22

Supervision .......................................................................................................................................24

Community Banking Initiative..........................................................................................................33

Activities Related to Systemically Important Financial Institutions ....................................................37

Depositor and Consumer Protection .................................................................................................43

Receivership Management .................................................................................................................51

Minority and Women Inclusion ........................................................................................................53

International Outreach .....................................................................................................................55

Effective Management of Strategic Resources.....................................................................................58

II. Performance Results Summary.............................................................................................................63

Summary of 2016 Performance Results by Program ..........................................................................65

Performance Results by Program and Strategic Goal ..........................................................................67

Prior Years’ Performance Results ........................................................................................................73

III. Financial Highlights ................................................................................................................................81

Deposit Insurance Fund Performance................................................................................................83

IV. Budget and Spending..............................................................................................................................87

FDIC Operating Budget....................................................................................................................89

2016 Budget and Expenditures by Program.......................................................................................90

Investment Spending .........................................................................................................................91

V. Financial Section.....................................................................................................................................93

Deposit Insurance Fund (DIF) ..........................................................................................................94

FSLIC Resolution Fund (FRF)........................................................................................................111

Government Accountability Office Auditor’s Report........................................................................119

Management’s Report on Internal Control Over Financial Reporting..............................................126

Management’s Response to the Auditor’s Report..............................................................................127

VI. Corporate Management Control ...........................................................................................................129

Fraud Reduction and Data Analytics Act of 2015............................................................................131

Management Report on Final Actions .............................................................................................132

VII. Appendices............................................................................................................................................137

A. Key Statistics..............................................................................................................................139

B. More About the FDIC...............................................................................................................152

C. Office of Inspector General’s Assessment of the Management and Performance 

Challenges Facing the FDIC......................................................................................................161

D. Acronyms ..................................................................................................................................172
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.

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 assures 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.

INSURING DEPOSITS ♦ EXAMINING AND SUPERVISING INSTITUTIONS ♦

MAKING LARGE AND COMPLEX FINANCIAL INSTITUTIONS RESOLVABLE ♦

MANAGING RECEIVERSHIPS ♦ EDUCATING CONSUMERS