Federal Deposit Insurance Corporation

550 17th Street, N.W., Washington, D.C. 20429-9990 Deputy to the Chairman and CFO

 March 1, 2017

MEMORANDUM TO: The Board of Directors

FROM: Steven O. App

Deputy to the Chairman and

Chief Financial Officer

Craig R. Jarvill

Director, Division of Finance

SUBJECT: Fourth Quarter 2016 CFO Report to the Board 

The attached report highlights the FDIC’s financial activities and results for the quarter ended

December 31, 2016. 

Executive Summary

 During the fourth quarter of 2016, the Deposit Insurance Fund (DIF) balance increased by $2.5

billion, from $80.7 billion to $83.2 billion. The quarterly increase was primarily due to $2.7

billion of assessment revenue and a $332 million decrease in the provision for insurance 

losses, partially offset by $437 million of operating expenses and an unrealized loss on U.S. 

Treasury securities of $325 million.

 The reserve ratio, which is the ratio of the DIF balance to estimated insured deposits, was 1.20 

percent for the fourth quarter 2016, compared to the third quarter 2016 reserve ratio of 1.18 

percent. 

 There were no financial institution failures during the fourth quarter of 2016.

 Overall FDIC Operating Budget expenditures through December 31, 2016, were below budget 

by 12 percent ($261 million). Spending in the Ongoing Operations component was $121 

million, or 7 percent, under budget, largely due to underspending for salaries and 

compensation and contractual services. Spending in the Receivership Funding component 

was $140 million, or 35 percent, under budget, primarily due to lower-than-budgeted spending 

for contractual services related to financial institution failures.
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I. Financial Results (See pages 8 - 9 for detailed data and charts.)

Deposit Insurance Fund 

 The DIF balance was $83.2 billion at year-end 2016, an increase of $10.6 billion from $72.6 

billion at year-end 2015. The DIF’s comprehensive income totaled $10.6 billion for 2016 

compared to comprehensive income of $9.8 billion during 2015. This $742 million year-overyear increase was primarily due to a $1.1 billion increase in assessment revenue and a $249 

million increase in interest revenue, partially offset by $683 million lower negative provision for 

insurance losses. 

 The provision for insurance losses was negative $1.6 billion for 2016, compared to negative 

$2.3 billion for 2015. The negative provision for 2016 primarily resulted from a decrease of 

$1.7 billion in the estimated losses for institutions that failed in current and prior years, partially 

offset by a $97 million increase in the contingent liability for anticipated failures. The $1.7 

billion decrease in the estimated losses from failures was primarily attributable to (1) 

unanticipated recoveries of $545 million in litigation settlements, professional liability claims, 

and tax refunds by the receiverships; (2) a $584 million decrease in the receiverships’ sharedloss liability; (3) a $406 million decrease in projected future receivership expenses and 

receivership legal and representation and warranty liabilities; and (4) a $231 million decrease 

resulting from greater-than-anticipated collections from receiverships’ asset sales and updated 

estimated recovery rates applied to the remaining assets in liquidation. 

Assessments

 During December, the DIF recognized a total of $2.7 billion in assessment revenue. Of this 

amount, $1.5 billion represented the estimate for fourth quarter 2016 insurance coverage. 

Also, the DIF recognized $1.2 billion in estimated large bank surcharges for the fourth quarter 

2016. Additionally, the DIF recognized an adjustment of $20 million that increased assessment 

revenue. This adjustment consisted of a $45 million increase from prior period amendments 

and a $25 million decrease to the estimate for third quarter 2016 insurance coverage recorded 

at September 30, 2016. The latter adjustment was primarily due to lower than estimated 

assessment rates for several large banks. 

 On December 30, 2016, the FDIC collected $1.5 billion in DIF regular assessments and $1.2

billion in surcharge assessments for third quarter 2016 insurance coverage. 

II. Investment Results (See pages 10 - 11 for detailed data and charts.)

DIF Investment Portfolio

 On December 31, 2016, the total liquidity (also total market value) of the DIF investment 

portfolio stood at $75.3 billion, up $11.6 billion from its December 31, 2015, balance of $63.7 

billion. During the year, interest revenue, receivership dividends, and deposit insurance 

assessment collections exceeded resolution-related outlays and operating expenses.

 On December 31, 2016, the DIF investment portfolio’s yield was 1.12 percent, up 18 basis 

points from its December 31, 2015, yield of 0.94 percent. The new Treasury securities 

purchased during the year generally had higher yields than the maturing securities’ yields, 

some considerably higher.

 In accordance with the approved fourth quarter 2016 DIF portfolio investment strategy, staff 

purchased a total of 21 short- to intermediate-maturity conventional Treasury securities, all 
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designated as available-for-sale. The 21 securities purchased during the fourth quarter had a 

total par value of $13.7 billion, a weighted average yield of 1.53 percent, and a weighted 

average maturity of 3.76 years.

III. Budget Results (See pages 12 - 13 for detailed data.)

Approved Budget Modifications

The 2016 Budget Resolution delegated to the Chief Financial Officer (CFO) and selected other 

officials the authority to make certain modifications to the 2016 FDIC Operating Budget. The following 

budget reallocations were made during the fourth quarter in accordance with the authority delegated 

by the Board of Directors. None of these modifications changed the total 2016 FDIC Operating 

Budget as approved by the Board in December 2015.

 In November 2016, the CFO approved multiple budget modifications within the Ongoing 

Operations budget components of the Division of Information Technology (DIT) and the 

Information Security and Privacy Staff (ISPS), as follows:

o At DIT’s request, the hardware/software “technical refresh” allowance in its budget was 

reduced by $5,205,926 and that amount reallocated to the Corporate Unassigned 

contingency reserve. DIT elected not to use a substantial portion of the allowance 

provided to it for update and replacement of its installed base of hardware and software 

until it completed an evaluation of the impact of its IT transformation strategy on DIT’s

future hardware/software needs.

o The DIT budget was increased by $3,272,932, with a corresponding reduction in the 

Corporate Unassigned contingency reserve, to address a projected operational shortfall 

in the infrastructure services area. Additional budget authority was also reprogrammed

internally within the DIT budget to address this shortfall.

o The DIT budget was increased by $3,112,641, with a corresponding reduction in the 

Corporate Unassigned contingency reserve, to support several major initiatives. These 

included funding for continuity of operations planning ($1.2 million), planning for the 

transition of e-mail services to a shared services environment ($676,000), and various 

security-related initiatives.

The net effect of these changes was to increase the DIT Ongoing Operations budget by a net 

of $1,179,647, with the following changes by major expense category: Outside Services –

Personnel ($1,729,651), Equipment (-$290,124), Outside Services – Other (-$690,000), Travel 

($255,120), and Other Expenses ($175,000).

In addition, ISPS’s Ongoing Operations budget was increased by $250,000 to address a 

shortfall in ISPS’s “technical refresh” allowance, with additional funds for that purpose provided 

through internal reallocations within the ISPS budget. These changes increased ISPS’s 

Equipment budget by $2.3 million, while reducing its Outside Services – Personnel budget by 

$2,050,000.

 In December 2016, the CFO approved a reallocation of $16,000 from the Outside Services –

Personnel expense category to the Travel expense category within the Ongoing Operations 

budget of the Executive Offices.

 In December 2016, DIT realigned its Ongoing Operations budget to increase its budget 

resources for Buildings by $1,585,045, and Outside Services – Other by $12,335, with an 
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offsetting reduction to its Outside Services – Personnel expense category. This reallocation 

was made primarily to better align its budget with costs for the Manassas Data Center. DIT 

also realigned $386,500 of its Receivership Funding budget from the Outside Services –

Personnel expense category to various other expense categories to better align its budget 

resources with projected expenses.

 The amounts remaining within the Corporate Unassigned contingency reserves for the 

Ongoing Operations and Receivership Funding budget components were $13,285,893 and 

$27,536,513, respectively, following these reallocations. This unused budget authority lapsed 

at the end of the year.

Spending Variances

Significant spending variances by major expense category and division/office are discussed below. 

Significant spending variances for the year ending December 31, 2016, are defined as those that 

either (a) exceed by any amount the annual budget for a major expense category or the total budget 

for a division or office, or (b) are under the annual budget for a major expense category or the budget 

for a division/office by an amount that exceeds $1 million and represents more than three percent of 

the major expense category or total division/office budget.

Significant Spending Variances by Major Expense Category

Ongoing Operations

There was a significant spending variance in all major expense categories in the Ongoing Operations 

component of the 2016 FDIC Operating Budget:

 Salaries and Compensation expenditures were approximately $70 million, or 6 percent, less 

than budgeted. The Division of Risk Management Supervision (RMS) ($29 million), the Legal 

Division ($8 million), and the Division of Depositor and Consumer Protection (DCP) ($7 million) 

all spent less than budgeted in this expense category, primarily due to higher-than-projected 

vacancies in budgeted positions during the year. Most of the variances were related to 

authorized non-permanent positions.

 Outside Services-Personnel expenditures were $25 million, or 11 percent, less than budgeted. 

o The Division of Administration (DOA) spent $8 million less than budgeted, largely due to 

lower-than-budgeted spending for several security-related initiatives, including finger 

printing services, background investigations, and the Access Control Program; and 

delays and reduced contractor support requirements for several HR initiatives, including 

the PMR and Salary Structure review, development of a Corporate Workforce Planning 

Model, administration of student programs, and the revision of position descriptions for 

positions subject to the Federal Labor Standards Act.

o The CIO Council spent almost $4 million less than budgeted due to lower spending on 

application maintenance and operations, small enhancements and development, and 

remediation of technical obsolescence. No funds were spent from the Technical 

Obsolescence Remediation Fund established by the Council for 2016.

o The Division of Depositor and Consumer Protection spent $2 million less than budgeted 

due primarily to delays in planned Money Smart projects, the Small Dollar Savings 

project, and the biennial FDIC Survey of Unbanked and Underbanked Households as 
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well as lower-than-expected spending for maintenance of the Economicinclusion.gov 

website.

o The Corporate Unassigned contingency reserve had approximately $8 million in unused 

budget authority remaining at the end of the year in this expense category. That unused 

budget authority lapsed on December 31, 2016.

 Travel expenditures were approximately $9 million, or 9 percent, lower than budgeted. RMS 

spent $7 million less than budgeted for travel due largely to the reduced number of exams 

conducted and lower examination-related travel costs as a result of the improved condition of 

FDIC-supervised banks and the change in exam frequency for favorably-rated banks having 

assets less than $1 billion. Spending was also lower than anticipated for relocation-related 

travel costs.

 Buildings expenditures were approximately $6 million, or 6 percent, less than budgeted. This 

was largely attributable to delays in the start and/or completion of the Virginia Square Loading 

Dock Repair project and the San Francisco Regional Office plumbing upgrade. Spending for 

general building operating costs, utilities, cleaning, and several repair/maintenance project 

expenses were also less than budgeted.

 Equipment expenditures were approximately $6 million, or 6 percent, less than budgeted. DOA

spent $3 million less than budgeted, largely due to the delay in the purchase and installation of 

the Electronic Security System hardware in the remaining field offices and the slower-thanexpected installation of one of the two SCIF communication systems that was planned to be 

completed in 2016. DIT spent $3 million less than budgeted because of a decision to defer 

hardware technical refresh purchases until it can assess the impact of the use of shared 

services.

 Outside Services – Other expenditures were $1 million, or 8 percent, less than budgeted. This 

was primarily attributable to underspending by DOA which spent nearly $1 million less than 

budgeted, largely due to lower insurance premiums, a decline in nationwide mail volume, and 

lower demand for various support services, including printing, advertising and catering.

 Other Expenses were approximately $3 million, or 20 percent, less than budgeted. This was 

primarily attributable to substantial underutilization by employees of the funds budgeted for 

Professional Learning Accounts and lower-than-projected expenses for the purchase of 

corporate office supplies by DOA.

Receivership Funding

The Receivership Funding component of the 2016 FDIC Operating Budget includes funding for 

expenses that are incurred in conjunction with institution failures and the management and disposition 

of the assets and liabilities of the ensuing receiverships, except for salary and benefits expenses for 

permanent employees assigned to the receivership management function. There were significant 

spending variances in five of the seven major expense categories in the Receivership Funding 

component of the 2016 FDIC Operating Budget:

 Salaries and Compensation expenditures were $15 million, or 24 percent, less than budgeted. 

This variance was mostly attributable to vacancies in budgeted non-permanent positions in the 

Division of Resolutions and Receiverships (DRR) and the Legal Division. 

 Outside Services-Personnel expenditures were $109 million, or 37 percent, less than budgeted. 

DRR spent $68 million less than budgeted, primarily because there were only five small bank 
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failures during the year. This resulted in lower-than-budgeted expenses for contracts 

supporting owned real estate, loan servicing, bank closings, securitizations, oversight of loss 

share agreements, and asset valuation. The Legal Division spent $11 million less than 

budgeted, primarily due to lower-than-anticipated costs for outside legal counsel for 

receivership and resolution activities. The Corporate Unassigned contingency reserve had $27 

million in unused budget authority remaining at the end of the year in this expense category. 

That unused budget authority lapsed on December 31, 2016.

 Travel expenditures were approximately $5 million, or 61 percent, less than budgeted. This 

was primarily attributable to the low number and small size of bank failures during the year.

 Buildings expenditures were approximately $1 million, or 8 percent, more than budgeted. This 

was primarily attributable to environmental remediation costs incurred under a 2014 settlement 

agreement on an asset sold in 1993 by the Resolution Trust Corporation.

 Other Expenses were approximately $11 million, or 71 percent, less than budgeted. This 

variance was attributable to the transfer of banking operations and the disposition of failed 

banks’ assets more quickly than expected, because there were fewer-than-usual receivership 

claims or settlement costs associated with actual failed bank resolutions.

Significant Spending Variances by Division/Office

Fourteen organizations had significant spending variances from their 2016 budgets:

 DRR spent $93 million, or 26 percent, less than budgeted. Approximately $90 million of 

this variance was in the Receivership Funding budget component and was largely due to 

less-than-budgeted spending for resolution and receivership management workload for the 

reasons described above. 

 RMS spent $37 million, or 6 percent, less than budgeted. This variance was largely 

attributable to vacancies in budgeted positions and the reduction in exam-related travel.

 

 The Legal Division spent $27 million, or 11 percent, less than budgeted. This variance 

was largely due to underspending of more than $14 million in the Salaries and 

Compensation expense category ($8 million in the Ongoing Operations and $7 million in 

the Receivership Funding budget components) due to vacancies in budgeted nonpermanent positions and slower-than-projected hiring to fill those vacancies. In addition, it 

spent $11 million less than budgeted in the Receivership Funding budget component for 

outside counsel costs relating to resolution and receivership management activities.

 DOA spent $25 million, or 9 percent, less than budgeted. This variance was largely due to 

lower spending on contractor supported projects and functions explained earlier in the 

Outside Services – Personnel and Buildings expense categories of the Ongoing 

Operations budget component.

 DCP spent $9 million, or 5 percent, less than budgeted. This variance was largely 

attributable to vacancies in budgeted positions throughout the year.

 The CIO Council spent $4 million, or 8 percent, less than budgeted. This variance was 

largely attributable to lower spending on application maintenance and operations, system 

development and small enhancement projects, and remediation of technical obsolescence.
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 The Office of Complex Financial Institutions spent $3 million, or 16 percent, less than 

budgeted. This variance was largely due to vacancies in budgeted positions throughout 

the year.

 The combined Executive Support Offices spent $3 million, or 12 percent, less than 

budgeted. This variance was largely due to vacancies in budgeted positions in the Offices 

of Legislative Affairs, Corporate Risk Management (OCRM), and Minority and Women 

Inclusion. Contract spending was also below budget in the Office of Communications and 

OCRM for public relations advisory services and the independent validation of FDIC 

models, respectively.

 The Division of Finance spent $2 million, or 5 percent, less than budgeted. This variance 

was largely attributable to vacancies in budgeted positions during the year.

 The Executive Offices spent $2 million, or 17 percent, less than budgeted. This variance 

was largely due to lower-than-budgeted spending on the annual financial statement audit 

by GAO and vacancies in budgeted positions during the year.

 The Office of the Inspector General spent $2 million, or 5 percent, less than budgeted. 

This variance was largely attributable to vacancies in budgeted positions throughout the 

year.

 ISPS spent $2 million, or 5 percent, less than budgeted. This variance was largely due to 

utilization of software solutions that reduced the need for contractor services, delays in 

getting contractors on board, and vacancies in budgeted positions during the year.

 Corporate University spent $2 million, or 9 percent, less than budgeted in its budget for the 

Corporate Employee Program (CU-CEP), and $152,000, or 1 percent, more than budgeted 

in its regular organizational budget (CU-Corporate). The CU-CEP variance was largely 

due to vacancies in budgeted positions during the year and lower-than-budgeted travel for 

participants in the program. The CU-Corporate variance was primarily due to higher-thanbudgeted relocation expenses for qualifying employees. These costs can vary 

substantially from employee to employee and are not subject to management control. CUCorporate’s 2016 budget for relocation travel was based on recent past history.

 The Corporate Unassigned contingency reserve had approximately $41 million in unused 

budget authority remaining at the end of the year. That unused budget authority lapsed on 

December 31, 2016.
FDIC CFO REPORT TO THE BOARD – Fourth Quarter 2016 

Fund Financial Results ($ in Millions) 

8

Balance Sheet

Quarterly Year-Over-Year

Dec-16 Sep-16 Change Dec-15 Change

Cash and cash equivalents $ 1,333 $ 4,273 $ (2,940) $ 877 $ 456

Investment in U.S. Treasury securities 73,512 68,124 5,388 62,497 11,015

Assessments receivable, net 2,666 2,686 (20) 2,172 494

Interest receivable on investments and other assets, net 526 565 (39) 418 108

Receivables from resolutions, net 7,790 9,044 (1,254) 11,578 (3,788)

Property and equipment, net 358 360 (2) 378 (20)

Total Assets $ 86,185 $ 85,052 $ 1,133 $ 77,920 $ 8,265

Accounts payable and other liabilities 238 218 20 273 (35)

Liabilities due to resolutions 2,073 3,538 (1,465) 4,419 (2,346)

Postretirement benefit liability 232 233 (1) 233 (1)

Contingent liability for anticipated failures 477 359 118 395 82

Contingent liability for litigation losses 3 0 3 0 3

Total Liabilities $ 3,023 $ 4,348 $ (1,325) $ 5,320 $ (2,297)

FYI: Unrealized gain (loss) on U.S. Treasury securities, net 21 346 (325) (9) 30

FYI: Unrealized postretirement benefit (loss) gain (26) (34) 8 (34) 8

Fund Balance $ 83,162 $ 80,704 $ 2,458 $ 72,600 $ 10,562

Deposit Insurance Fund

Actual Regular Assessment 

Collections $2.3

Actual Regular Assessment 

Collections $2.2

Actual Regular 

Assessment

Collections $1.5

Actual 

Surcharge 

Assessment 

Collections $1.2

Estimated 

Surcharge

Assessment 

Revenue $1.2

Estimated Regular 

Assessment Revenue 

$1.5

The third quarter 

decline in actual 

assessment 

collections is due to a 

decline in the effective 

assessment rate, from 

6.2 bps to 4.1 bps due 

to the lower 

assessment rate 

schedule now that the 

Deposit Insurance 

Fund has reached 

1.15 percent.
9

Fund Financial Results - continued ($ in Millions) 

Income Statement (year-to-date)

Quarterly Year-Over-Year

Dec-16 Sep-16 Change Dec-15 Change

Assessments $ 9,987 $ 7,299 $ 2,688 $ 8,847 $ 1,140

Interest on U.S. Treasury securities 671 482 189 422 249

Other revenue 16 13 3 34 (18)

Total Revenue $ 10,674 $ 7,794 $ 2,880 $ 9,303 $ 1,371

Operating expenses 1,715 1,278 437 1,687 28

Provision for insurance losses (1,568) (1,236) (332) (2,251) 683

Insurance and other expenses 3 3 - 11 (8)

Total Expenses and Losses $ 150 $ 45 $ 105 $ (553) $ 703

Net Income 10,524 7,749 2,775 9,856 668

Unrealized gain (loss) on U.S. Treasury securities, net 30 355 (325) (60) 90

Unrealized postretirement benefit gain (loss) 8 - 8 24 (16)

Comprehensive Income $ 10,562 $ 8,104 $ 2,458 $ 9,820 $ 742

Deposit Insurance Fund Selected Financial Data

Quarterly Year-Over-Year

Dec-16 Sep-16 Change Dec-15 Change

Cash and cash equivalents $ 874 $ 873 $ 1 $ 871 $ 3

Accumulated deficit (124,611) (124,616) 5 (124,618) 7

Total resolution equity 878 873 5 871 7

Total revenue 5 4 1 3 2

Operating expenses 3 3 - 3 -

Losses related to thrift resolutions (1) (1) - - (1)

Goodwill litigation expenses - - - 157 (157)

Net Income (Loss) $ 7 $ 2 5 $ (157) $ 164

FSLIC Resolution Fund $ in millions

Dec-16 Dec-15 Change Dec-16 Dec-15 Change Dec-16 Dec-15 Change

Total Receiverships 378 446 (68) 0 0 0 378 446 (68)

Assets in Liquidation $ 3,315 $ 4,802 $ (1,487) $ 2 $ 5 $ (3) $ 3,317 $ 4,807 $ (1,490)

YTD Collections $ 1,757 $ 3,421 $ (1,664) $ 2 $ 3 $ (1) $ 1,759 $ 3,424 $ (1,665)

YTD Dividend/Other Pymts - Cash $ 3,601 $ 6,324 $ (2,723) 0 0 0 $ 3,601 $ 6,324 $ (2,723)

DIF FRF ALL FUNDS
10

12/31/16 12/31/15 Change

Par Value $74,430 $62,973 $11,457

Amortized Cost $74,947 $63,368 $11,579

Total Market Value (including accrued interest) $75,335 $63,737 $11,598

Primary Reserve 1 $75,335 $63,737 $11,598

Primary Reserve % of Total Portfolio 100.0% 100.0% 0.0%

Yield-to-Maturity 2 1.12% 0.94% 0.18%

Weighted Average Maturity (in years) 1.60 1.65 -0.05

Effective Duration (in years)

 Total Portfolio 1.55 1.62 -0.07

 Available-for-Sale Securities 1.66 1.64 0.02

 Held-to-Maturity Securities 3not applicable not applicable not applicable

12/31/16 12/31/15 Change

FRF-FSLIC

 Book Value 4 $831 $828 $3

 Yield-to-Maturity 0.40% 0.08% 0.32%

 Weighted Average Maturity overnight overnight no change

12/31/16 12/31/15 Change

Book Value 5 $8,746 $10,508 ($1,762)

Effective Annual Yield 0.58% 0.30% 0.28%

Weighted Average Maturity (in days) 78 90 (12)

Deposit Insurance Fund Portfolio Summary

(Dollar Values in Millions)

1

 Primary Reserve is the total market value (including accrued interest) of overnight investments, all available-for-sale (AFS) 

securities, and held-to-maturity (HTM) securities maturing within three months.

National Liquidation Fund (NLF) Investment Portfolio Summary

(Dollar Values in Millions)

3

 In early August 2008, management reclassified all of the DIF portfolio's HTM securities as AFS securities effective as of 

June 30, 2008, because the FDIC could no longer assert it had the positive intent and ability to hold its HTM securities until 

their maturity dates.

5

 Due to the short-term nature of the NLF portfolio, its Book and Market Values are identical for reporting purposes.

Summary of Other Corporate Investment Portfolios

(Dollar Values in Millions)

4

 Due to the current short-term nature of this portfolio, its respective Par, Book, and Market Values are identical for reporting 

purposes.

2

 The Yield-to-Maturity includes the potential yield of Treasury Inflation-Protected Securities (TIPS), which presently assumes 

an average 2.0% annual increase in the CPI over the remaining life of each TIPS.
11

DEPOSIT INSURANCE FUND

Purchase up to $19 billion (par value) of Treasury securities with maturity dates 

between March 31, 2017, and December 31, 2021, subject to the following 

additional provisions: all newly purchased securities will be designated as availablefor-sale; no more than $2 billion (adjusted par value) of such securities shall 

consist of Treasury Inflation-Protected Securities; and target at least $3 billion (par 

value) of newly purchased securities maturing in 2020 or 2021.

Purchase up to $14 billion (par value) of Treasury securities with maturity dates 

between June 30, 2017, and June 30, 2022, subject to the following additional 

provisions: all newly purchased securities will be designated as available-for-sale; 

no more than $2 billion (adjusted par value) of such securities shall consist of 

Treasury Inflation-Protected Securities; and target at least $5 billion (par value) of 

newly purchased securities maturing between January 1, 2020, and June 30, 2022.

NATIONAL LIQUIDATION FUND

Maintain an overnight deposit target floor balance within a range of $100 million to 

$300 million.

Strategically invest the remaining funds in the zero- to 12-month maturity sector.

No strategy changes for the first quarter of 2017.

Strategy Changes for the 1st Quarter 2017

Investment Strategies

Strategy for the 4th Quarter 2016

Strategy for the 4th Quarter 2016

Strategy Changes for the 1st Quarter 2017
12

Annual YTD YTD % of YTD YTD

Major Expense Category Budget Budget Expenditures Budget Used Variance

FDIC Operating Budget 

Ongoing Operations

Salaries & Compensation $1,254,695 $1,254,695 $1,184,570 94% ($70,125)

Outside Services - Personnel 240,380 240,380 214,927 89% (25,453)

Travel 99,168 99,168 89,778 91% (9,390)

Buildings 98,384 98,384 92,081 94% (6,303)

Equipment 87,992 87,992 82,312 94% (5,680)

Outside Services - Other 15,038 15,038 13,889 92% (1,149)

Other Expenses 15,044 15,044 12,108 80% (2,936)

Total Ongoing Operations $1,810,701 $1,810,701 $1,689,665 93% ($121,036)

Receivership Funding

Salaries & Compensation $61,080 $61,080 $46,333 76% ($14,747)

Outside Services - Personnel 296,569 296,569 187,206 63% (109,363)

Travel 8,207 8,207 3,236 39% (4,971)

Buildings 14,658 14,658 15,781 108% 1,123

Equipment 1,782 1,782 1,542 87% (240)

Outside Services - Other 1,900 1,900 1,221 64% (679)

Other Expenses 15,804 15,804 4,617 29% (11,187)

Total Receivership Funding $400,000 $400,000 $259,936 65% ($140,064)

Total FDIC Operating Budget $2,210,701 $2,210,701 $1,949,601 88% ($261,100)

Executive Summary of 2016 Budget and Expenditures

by Major Expense Category

Through December 31, 2016

(Dollars in Thousands)
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1) Executive Support includes the Offices of Minority and Women Inclusion, Communications, Ombudsman, 

Legislative Affairs, Corporate Risk Management, and Financial Institution Adjudication. 

2) Executive Offices include the offices of the Chairman, Vice Chairman, Independent Director, Deputy to the 

Chairman and Chief Operating Officer, Deputy to the Chairman and Chief Financial Officer, and Chief Information 

Officer.

Annual YTD YTD % of YTD YTD

Division/Office Budget Budget Expenditures Budget Used Variance

 FDIC Operating Budget 

 Risk Management Supervision $591,295 $591,295 $553,851 94% ($37,444)

 Depositor & Consumer Protection 178,813 178,813 169,670 95% (9,143)

 Information Technology 223,904 223,904 216,208 97% (7,696)

 Administration 274,243 274,243 249,580 91% (24,663)

 Resolutions & Receiverships 357,366 357,366 264,089 74% (93,277)

 Legal 237,054 237,054 210,111 89% (26,943)

 Insurance & Research 49,781 49,781 48,121 97% (1,660)

 Finance 39,827 39,827 37,680 95% (2,147)

 Inspector General 34,153 34,153 32,382 95% (1,771)

 Information Security & Privacy Staff 35,888 35,888 34,149 95% (1,739)

 Corporate University - CEP 18,254 18,254 16,581 91% (1,673)

 Corporate University - Corporate 24,478 24,478 24,630 101% 152

 Executive Support 126,174 26,174 22,964 88% (3,210)

 Executive Offices 211,381 11,381 9,432 83% (1,949)

 Complex Financial Institutions 20,976 20,976 17,610 84% (3,366)

 CIO Council 46,291 46,291 42,543 92% (3,748)

 Corporate Unassigned 40,823 40,823 0 0% (40,823)

 Total FDIC Operating Budget $2,210,701 $2,210,701 $1,949,601 88% ($261,100)

Executive Summary of 2016 Budget and Expenditures

by Budget Component and Division/Office

Through December 31, 2016

(Dollars in Thousands)