MESSAGE FROM THE CHIEF FINANCIAL OFFICER

FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2023 21 

February 22, 2024

I am pleased to present the FDIC’s 2023 Annual Report, which 

covers financial and program performance information and 

summarizes our successes for the year.

For 32 consecutive years, the U.S. Government Accountability 

Office has issued unmodified 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 accomplishments 

and continue to consistently demonstrate discipline and 

accountability as stewards of these funds. We remain proactive 

in the execution of sound financial management by providing reliable and timely financial data 

to enhance decision-making and employing tools and strategies to improve the effectiveness 

and efficiency of our financial management operations and reporting.

2023 Financial and Program Results

During the first half of 2023, the FDIC resolved three of the largest bank failures in U.S. history. 

In total, five institutions failed over the course of the year. Total estimated losses affecting 

the DIF from the 2023 failures were $20.0 billion. Despite this significant failure activity, 

and continued economic and geopolitical uncertainties, the banking industry continues to 

demonstrate resilience.

The DIF balance declined from a record high of $128.2 billion as of December 31, 2022 to 

$121.8 billion at December 31, 2023. The $6.4 billion decrease was primarily a result of the 

losses associated with the 2023 failures and losses on the sale of the DIF investment portfolio, 

offset by increased assessment and interest revenue. The contingent liability for anticipated 

failures increased to $726 million as of December 31, 2023 compared to $31 million as of 

December 31, 2022.

The impact of these three large failures on the DIF’s liquidity was significant due to advancing 

funds to repay receivership liabilities. The DIF’s cash, cash equivalents, and U.S. Treasury 

investment portfolio balances decreased by $101.2 billion during 2023 to $23.8 billion at 

year-end 2023, from $125.0 billion at year-end 2022. Absent significant bank failure activity 

in 2024, we anticipate the DIF’s liquidity to increase substantially with the collection of both 

regular and special assessments, as well as dividend payments from ongoing receivership 

asset liquidation efforts. Interest revenue totaled $2.7 billion for 2023, compared to $1.2 

billion for 2022 – a $1.5 billion increase resulting from rising interest rates. Additionally, the DIF 

MESSAGE FROM THE 

CHIEF FINANCIAL OFFICER
MESSAGE FROM THE CHIEF FINANCIAL OFFICER

FEDERAL DEPOSIT INSURANCE CORPORATION ANNUAL REPORT 2023 22 

balance reflects realized losses of $2.3 billion for 2023, and an unrealized gain on U.S. Treasury 

securities of nearly $3.0 billion in 2023, compared to an unrealized loss of $2.8 billion in 2022.

In 2023, FDIC operating expenditures totaled $2.8 billion, an increase of $877 million, or 45.6 

percent, over 2022 expenditures. The year-over-year increase in spending was primarily 

driven by expenditures incurred in connection with the resolution of three large regional 

bank failures in early 2023 and rising compensation for FDIC employees. The FDIC Board of 

Directors approved in May 2023 a mid-year budget increase of $750 million in the Receivership 

Funding component of the annual operating budget to address the anticipated expenses 

associated with those bank failures, increasing the total 2023 FDIC Operating Budget to $3.2 

billion. Actual 2023 expenditures were $359 million, or 11.4 percent, below the adjusted 

budget, in part because expenditures for the three large bank failures were lower-thanprojected. Underspending in 2023 was also driven by vacancies in budgeted positions, lowerthan-anticipated travel costs, and delays in some IT and facilities modernization projects. The 

FDIC Board of Directors recently approved a 2024 FDIC Operating Budget totaling $3.0 billion, 

down $198 million (or 6.3 percent) from the 2023 Budget, largely due to lower projected costs 

in the Receivership Funding budget component, partially offset by higher compensation costs 

and increased staffing in the Ongoing Operations budget component. Actual FDIC staffing 

rose from 5,612 full time equivalents (FTEs) in 2022 to 5,952 in 2023, a 6.1 percent increase. 

Authorized staffing for 2024 is 6,817 FTEs. This is an increase of 189 positions (or 2.9 percent) 

from the number of authorized positions in 2023 and 865 positions from the number of 

employees on board at the end of 2023.

During 2023, the FDIC continued to mature the Enterprise Risk Management (ERM) and Model 

Risk Management programs. The FDIC also made enhancements to the Assurance Statement 

process and implemented an agency-wide supply chain risk management program. The FDIC 

continued to make improvements in our contract invoice processes, including independent 

testing and ensuring compliance with FDIC acquisition policies, which contributed to removing 

the prior years’ significant deficiency finding in internal controls in this area. In 2024, the 

FDIC will continue to mature the fraud risk awareness program and project risk management 

program and implement an agency-wide enterprise change management program. 

I have been honored to serve the FDIC in various capacities to help carry out our essential 

mission for the last 35-plus years. As I conclude my tenure here, I wish to share how much I 

appreciate the dedication of the talented FDIC professionals who plan, execute, and account 

for the agency’s resources. Their commitment to ensuring sound financial management 

provides the foundation for our strong stewardship and ensures that reliable and timely 

financial information is available to our stakeholders.

Sincerely,

Bret D. Edwards