Mission

The Federal Deposit Insurance Corporation

(FDIC) is an independent agency created by

the Congress that maintains the stability 

and public confidence in the nation’s financial

system by insuring deposits, examining 

and supervising financial institutions, and

managing receiverships.

In its unique role as deposit insurer of banks

and savings associations, and in cooperation

with the other state and federal regulatory

agencies, the Federal Deposit Insurance

Corporation (FDIC) promotes the safety 

and soundness of the U.S. financial system

and the insured depository institutions by

identifying, monitoring and addressing risks 

to the deposit insurance funds.

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 banks and savings associations. It 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.

2005
Vision

The FDIC is a leader in developing and 

implementing sound public policies, identifying

and addressing new and existing risks in 

the nation’s financial system, and effectively 

carrying out its insurance, supervisory, and

receivership management responsibilities.

Integrity 

FDIC employees adhere to the highest ethical

standards in the performance of their duties

and responsibilities.

Competence

The FDIC maintains a highly skilled, dedicated

and diverse workforce.

Teamwork 

FDIC employees work cooperatively with 

one another and with employees in other 

regulatory agencies to accomplish the

Corporation’s mission.

Effectiveness 

The FDIC responds quickly and successfully to

identified risks in insured financial institutions

and in the broader financial system.

Financial Stewardship

The FDIC acts as a responsible fiduciary, 

consistently operating in an efficient and

cost-effective manner on behalf of insured

financial institutions and other stakeholders.

Fairness

The FDIC treats all employees, insured 

financial institutions, and other stakeholders

with impartiality and mutual respect.

●

●

●

Values

The FDIC and its employees have a long and continuing tradition of distinguished public service.

Six core values guide FDIC employees as they strive to fulfill the Corporation’s mission and vision:

●

●

●
March 2, 2006

Sirs,

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,

● 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 is pleased to submit its 2005 

Annual Report (also referred to as the Performance and Accountability 

Report), which includes the audited financial statements of the Bank Insurance 

Fund, the Savings Association Insurance Fund, and the Federal Savings 

and Loan Insurance Corporation Resolution Fund.

In accordance with the Reports Consolidation Act of 2000, the FDIC completed 

an assessment of 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 the FDIC has no material weaknesses. 

The Government Accountability Office did, however, identify a number of 

information technology issues that aggregate to a reportable condition. All 

such issues will receive appropriate attention during 2006.

Sincerely,

Martin J. Gruenberg

Acting Chairman

The President of the United States

The President of the United States Senate

The Speaker of the United States House of Representatives

Federal Deposit Insurance Corporation

550 17th St. NW Washington, DC 20429 Office of the Chairman
Message from the Acting Chairman 4

Message from the Chief Financial Officer 6

I. Management’s Discussion and Analysis 8

The Year in Review 8

Insurance 8

Supervision and Consumer Protection 12

Receivership Management 19

Effective Management of Strategic Resources 20

II. Financial Highlights 24

Deposit Insurance Fund Performance 24

Operating Expenses 25

Investment Spending 25

III. Performance Results Summary 28

Summary of 2005 Performance Results by Program 28

2005 Budget and Expenditures by Program (Excluding Investments) 30

Performance Results by Program and Strategic Goal 31

Multi-Year Performance Trend 37

Program Evaluation 41

IV. Financial Statements and Notes 42

Bank Insurance Fund (BIF) 42

Savings Association Insurance Fund (SAIF) 60

FSLIC Resolution Fund (FRF) 80

GAO’s Audit Opinion 94

Management’s Response 99

Overview of the Industry 100

V. Management Control 102

Enterprise Risk Management 102

Material Weaknesses 103

Management Report on Final Action 103

VI. Appendixes 106

A. Key Statistics 106

B. More About the FDIC 118

C. Office of Inspector General’s Assessment of the 

Management and Performance Challenges Facing the FDIC 126