MESSAGE FROM THE CHIEF FINANCIAL OFFICER 11

I am pleased to present 

the FDIC’s 2015 Annual 

Report (also referred to 

as the Performance and 

Accountability Report). 

The report covers financial 

and program performance 

information, and 

summarizes our successes 

for the year. The FDIC 

takes pride in providing 

timely, reliable, and meaningful information to its 

many stakeholders.

For 24 consecutive years, the U.S. Government 

Accountability Office (GAO) has issued unmodified 

(unqualified) audit opinions for the two funds 

administered by the FDIC: the Deposit Insurance 

Fund (DIF) and the Federal Savings and Loan 

Insurance Corporation (FSLIC) Resolution Fund 

(FRF). We take pride in our responsibility and 

demonstrate discipline and accountability as stewards 

of these funds. We remain proactive in the execution 

of sound financial management and in providing 

reliable financial data.

The DIF balance (the net worth of the Fund) 

rose to a record $72.6 billion as of December 31, 

2015, an increase of $9.8 billion over the year-end 

2014 balance of $62.8 billion. The Fund balance 

increase was primarily due to assessment revenue and 

reductions in estimated losses for current and prior 

year bank failures.

FINANCIAL AND PROGRAM 

RESULTS FOR 2015

For 2015, DIF comprehensive income totaled $9.8 

billion, a decrease of $5.8 billion over the 2014 

comprehensive income of $15.6 billion. This decrease 

was primarily due to a $6.0 billion difference in the 

provision for insurance losses -- a negative $2.3 billion 

in 2015 compared to a negative $8.3 billion in 2014. 

Assessment revenue was $8.8 billion in 2015 and $8.7 

billion in 2014. Interest on U.S. Treasury obligations 

totaled $423 million as compared to $282 million in 

2014; at the end of 2015, the yield to maturity on the 

DIF portfolio was 0.94 percent.

In 2015, the FDIC continued its efforts to reduce 

operating costs and prudently manage the funds that 

it administers. The FDIC Operating Budget for 2015 

totaled approximately $2.3 billion, which represented 

a decrease of $73 million (3 percent) from 2014. 

Actual 2015 spending totaled approximately $2.1 

billion. On December 15, 2015, the FDIC Board 

of Directors approved a 2016 Corporate Operating 

Budget totaling $2.2 billion, down $108 million 

(5 percent) from the 2015 budget. Including 2016, 

the annual operating budget has declined for six 

consecutive years, consistent with a steadily 

declining workload.

The FDIC continues to reduce staffing levels, as 

conditions in the banking industry improve and 

the FDIC requires fewer resources. The FDIC’s 

authorized full-time equivalent staffing dropped in 

2015 from 7,200 to 6,886, a 4 percent reduction. 

In 2016, we project further reductions in the overall 

workforce. However, we will maintain a workforce 

capable of handling our supervision, insurance, and 

resolution functions.

In 2015, eight banks failed, down from 18 in 2014. 

Even though the number of bank failures is relatively 

low, we will continue to prudently manage the risks 

to the DIF, including interest rate, fiscal, and global 

economic risks. We will remain focused on sound 

financial management techniques, and maintain our 

enterprise-wide risk management and internal control 

program.

Sincerely,

Steven O. App

MESSAGE FROM 

THE CHIEF FINANCIAL OFFICER