ANNUAL REPORT 2014

2 FEDERAL DEPOSIT INSURANCE CORPORATION

FEDERAL DEPOSIT INSURANCE CORPORATION

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

March 4, 2015

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 2014 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 2014. We are committed to maintaining effective internal controls corporate-wide in 2015. 

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 2014 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

Implementation of Key Regulations................................................................................................................................. 13

Insurance ............................................................................................................................................................................. 18

Activities Related to Systemically Important Financial Institutions ........................................................................... 19

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

Receivership Management ................................................................................................................................................ 38

International Outreach....................................................................................................................................................... 41

Minority and Women Inclusion......................................................................................................................................... 43

Effective Management of Strategic Resources ............................................................................................................... 44

II. Performance Results Summary...........................................................................................49

Summary of 2014 Performance Results by Program ............................................................................................................ 49

Performance Results by Program and Strategic Goal .......................................................................................................... 51

Prior Years’ Performance Results............................................................................................................................................ 57

III. Financial Highlights............................................................................................................65

Deposit Insurance Fund Performance ................................................................................................................................... 65

IV. FDIC Budget and Spending ...............................................................................................69

Corporate Operating Budget.................................................................................................................................................... 69

2014 Budget and Expenditures by Program........................................................................................................................... 70

Investment Spending................................................................................................................................................................. 71

V. Financial Section ................................................................................................................73

Deposit Insurance Fund (DIF)................................................................................................................................................. 74

FSLIC Resolution Fund (FRF)................................................................................................................................................. 93

Government Accountability Office Auditor’s Report.......................................................................................................... 102

Management’s Report on Internal Control Over Financial Reporting .............................................................................. 109

Management’s Response to the Auditor’s Report................................................................................................................ 110

VI. Corporate Management Control......................................................................................111

Management Report on Final Actions .................................................................................................................................. 112

VII. Appendices ......................................................................................................................113

A. Key Statistics ....................................................................................................................................................................... 114

B. More About the FDIC ......................................................................................................................................................... 128

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

Facing the FDIC ............................................................................................................................................................... 137

D. Acronyms............................................................................................................................................................................. 143
INSURING DEPOSITS • EXAMINING AND 

SUPERVISING 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 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.