83 83

FINANCIAL III.HIGHLIGHTS
THIS PAGE INTENTIONALLY LEFT BLANK
2018

FINANCIAL HIGHLIGHTS 85

In its role as insurer of bank and savings association 

deposits, the FDIC promotes the safety and soundness 

of insured depository institutions. The following 

financial highlights address the performance of the 

Deposit Insurance Fund. 

DEPOSIT INSURANCE 

FUND PERFORMANCE

The DIF balance was $102.6 billion at December 31, 

2018, compared to $92.7 billion at year-end 2017. 

Assessment revenue, including assessment surcharges 

on large banks, drove the growth in the DIF. 

Comprehensive income totaled $9.9 billion for 2018, 

compared to comprehensive income of $9.6 billion 

during 2017, a $275 million year-over-year increase. 

Assessment revenue was $9.5 billion for 2018, 

compared to $10.6 billion for 2017. The $1.1 

billion year-over-year decrease was primarily due to 

the cessation of the surcharge assessment on large 

institutions effective October 1, 2018, as a result of 

the reserve ratio exceeding the required minimum of 

1.35 percent as of September 30, 2018.

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

for 2018 was $1.6 billion, compared to interest 

revenue of $1.1 billion in 2017. The $576 million 

year-over-year increase resulted from a combination of 

factors: (1) the Federal Reserve increased the federal 

funds target rate, resulting in an increase in the 

average overnight investment interest rate; (2) higher 

yields on new long-term investments purchased as 

older long-term investments matured; and (3) steady 

growth in the investment portfolio balance. 

The provision for insurance losses was a negative 

$563 million for 2018, compared to negative $183 

million for 2017. The negative provision for 2018 

primarily resulted from a $570 million decrease to the 

estimated losses for prior year failures, attributable to: 

(1) a decrease in receivership shared-loss liability cost 

estimates of $186 million primarily due to lower-thananticipated losses on covered assets, reductions in 

shared-loss cost estimates from the early termination 

of shared-loss agreements (SLAs) during the year, 

and unanticipated recoveries from SLAs where 

the commercial loss coverage has expired but the 

recovery period remains active; (2) $172 million of 

estimated recoveries from residual certificates retained 

by receiverships for structured transactions; and (3) 

$130 million of unanticipated recoveries received by 

receiverships from tax refunds, litigation settlements, 

and professional liability claims. 

During 2018, the DIF recognized an unrealized 

loss on U.S. Treasury securities of $136 million, 

down from a $500 million unrealized loss in 2017. 

The unrealized loss in 2018 was the result of yields 

rising dramatically across all maturity sectors of the 

Treasury yield curve, resulting in declines in the 

securities’ market values relative to their book values. 

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

investment portfolio balances increased by $13.4 

billion during 2018 to $98.5 billion at year-end 2018, 

from $85.1 billion at year-end 2017. This increase 

was primarily due to assessment collections of $10.8 

billion, recoveries from resolutions of $3.3 billion, and 

interest received on U.S. Treasury securities of $1.8 

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

ANNUAL REPORT 

86

ESTIMATED DIF INSURED DEPOSITS

SOURCE: Commercial Bank Call and Thrift 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

Dollars in Billions

3-11 6-11 9-11 12-11 3-12 6-12 9-12 12-12 3-13 6-13 9-13 12-13 3-14 6-14 9-14 12-14 3-15 6-15 9-15 12-15 3-16 6-16 9-16 12-16 3-17 6-17 9-17 12-17 3-18 6-18 9-18

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

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

3-11 6-11 9-11 12-11 3-12 6-12 9-12 12-12 3-13 6-13 9-13 12-13 3-14 6-14 9-14 12-14 3-15 6-15 9-15 12-15 3-16 6-16 9-16 12-16 3-17 6-17 9-17 12-17 3-18 6-18 9-18
FINANCIAL HIGHLIGHTS

2018

87

DEPOSIT INSURANCE FUND SELECTED STATISTICS

Dollars in Millions

For the years ended December 31

2018 2017 2016

Financial Results

Revenue $11,171 $11,664 $10,674 

Operating Expenses 1,765 1,739 1,715

Insurance and Other Expenses (includes provision for losses) (560) (181) (1,564)

Net Income 9,966 10,105 10,524 

Comprehensive Income 9,861 9,586 10,561 

Insurance Fund Balance $102,609 $92,747 $83,162 

Fund as a Percentage of Insured Deposits (reserve ratio) 1.36%3 1.30% 1.20%

Selected Statistics

Total DIF-Member Institutions1 5,4773 5,670 5,913 

Problem Institutions 713 95 123 

Total Assets of Problem Institutions $53,2893 $13,939 $27,624 

Institution Failures 0 8 5 

Total Assets of Failed Institutions in Year2 $0 $5,082 $277 

Number of Active Failed Institution Receiverships 272 338 378

1

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

2

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

3 As of September 30, 2018.