Federal Deposit Insurance Corporation

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

 February 21, 2018

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 2017 CFO Report to the Board 

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

December 31, 2017.

Executive Summary

• During the fourth quarter of 2017, the Deposit Insurance Fund (DIF) balance increased by $2.2

billion, from $90.5 billion at September 30, 2017 to $92.7 billion at December 31, 2017. The 

quarterly increase was primarily due to $2.7 billion of assessment revenue, partially offset by $444 

million of operating expenses.

• The reserve ratio, which is the ratio of the DIF balance to estimated insured deposits, was 1.30

percent for the fourth quarter 2017, compared to the third quarter 2017 reserve ratio of 1.28

percent. 

• During the fourth quarter of 2017, the FDIC was named receiver for two failed institutions. The 

combined assets at inception for these failed institutions were $150 million with estimated losses of 

$63 million. The corporate cash outlay during the fourth quarter for these failures was 

approximately $117 million.

• Through December 31, 2017, overall FDIC Operating Budget expenditures were below budget by 

11 percent ($227 million). About a third of this variance ($78.5 million) was attributable to 

underspending in the Receivership Funding budget component due to lower-than-budgeted

resolutions and receivership management workload. Most of the remainder of the underspending 

was in the Ongoing Operations budget component ($147 million) and was primarily the result of 

higher-than-expected vacancies in budgeted positions during the year. In addition, lower-thananticipated expenses for facilities, outside counsel, security services (including background 

checks), and other outside services contributed to the Ongoing Operations variance.
I. Financial Results (See pages 7 — 8 for detailed data and charts.)

Deposit Insurance Fund

• The DIF's comprehensive income totaled $9.6 billion for 2017, compared to comprehensive income

of $10.6 billion during 2016, a $977 million year-over-year decrease. Although assessment

revenue in 2017 of $10.6 billion was $608 million higher than 2016 assessment revenue of $10.0

billion, the lower negative provision for insurance losses of $1.4 billion year-over-year (negative

$183 million in 2017 as compared to negative $1.6 billion in 2016) more than offset the effect of the

revenue increase.

The provision for insurance losses was a negative $183 million for 2017, compared to negative

$1.6 billion for 2016. The negative provision for 2017 primarily resulted from a $969 million

decrease to the estimated losses for prior year failures offset by a $718 million increase for higherthan-anticipated estimated losses for current year failures. The 2016 negative provision was

almost fully attributable to reductions in estimated losses for prior year failures. The $969 million

decrease in the estimated losses for prior year failures was primarily attributable to (1) a decrease

in receivership shared-loss liability cost estimates of $420 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)

$383 million of unanticipated recoveries received, or expected to be received, by receiverships

from tax refunds, litigation settlements, and professional liability claims; and (3) a $124 million

decrease in receivership contingent legal and representation and warranty liabilities, as well as

projected future receivership expenses.

Assessments

During December, the DIF recognized assessment revenue of $2.7 billion. Of this amount, $1.4

billion represented the estimate for the fourth quarter 2017 insurance coverage and $1.3 billion

represented estimated surcharges on banks with $10 billion or more in assets.

• On December 29, 2017, the FDIC collected $1.4 billion in DIF assessments and $1.2 billion in

surcharge assessments for third quarter 2017 insurance coverage.

II. Investment Results (See pages 9 - 10 for detailed data and charts.)

DIF Investment Portfolio

• On December 31, 2017, the total liquidity (also total market value) of the DIF investment portfolio

stood at $85.6 billion, up $10.3 billion from its December 31, 2016, balance of $75.3 billion. During

the year, interest revenue, receivership dividends, and deposit insurance assessment collections

far exceeded resolution-related outlays and operating expenses.

• On December 31, 2017, the DIF investment portfolio's yield was 1.52 percent, up 40 basis points

from its 1.12 percent yield on December 31, 2016. 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 2017 DIF portfolio investment strategy, staff

purchased a total of 29 short- to intermediate-maturity conventional Treasury securities, all

designated as available-for-sale. The 29 securities had a total par value of $10.8 billion, a

weighted average yield of 1.92 percent, and a weighted average maturity of 3.41 years.
II. Budget Results (See pages 11 - 12 for detailed data.)

Approved Budget Modifications

The 2017 Budget Resolution delegated to the Chief Financial Officer (CFO) and selected other officials

the authority to make certain modifications to the 2017 FDIC Operating Budget. The following budget

reallocations were approved during the fourth quarter in accordance with the authority delegated by the

Board of Directors.

• In October 2017, the following budget realignments were approved:

➢ In conjunction with the Board's decision to integrate the functions of the Office of Corporate

Risk Management (OCRM) into anewly-constituted Risk Management and Internal Controls

Branch (RMIC) within the Division of Finance (DOF), the CFO reallocated OCRM's 4t" quarter

budget to DOF. A total of $874,155 in budget authority was realigned in the Salaries and

Compensation, Outside Services -Personnel, Travel, and Other Expenses expense categories

in the Ongoing Operations budget component.

➢ The CIO Council realigned $810,000 from its Outside Services —Personnel expense category

to Equipment to acquire additional subscriptions for the Salesforce platform and support of the

implementation of the Enterprise Public Inquiries and Complaints System.

• In November 2017, the CFO approved the following budget increases and realignments:

➢ An increase of $920,000 to the Equipment expense category of the Ongoing Operation budget

of the Division of Information Technology (DIT) to replace equipment nearing the end of its

useful life. This increase was funded from the funds earmarked for IT technology refreshment

in the Corporate Unassigned contingency reserve.

➢ Based on a corporate-wide review of actual expenses in the Salaries and Compensation

expense category through the end of the 3`d Quarter, there was an increase of $150,000 in the

Salaries and Compensation budget of the Office of Communications (OCOM) and a

realignment of Salaries and Compensation budget authority among organizational entities

within the Executive Offices. The additional budget authority for OCOM was realigned from the

Corporate Unassigned contingency reserve in the Ongoing Operations budget component.

In December 2017, the CFO approved separate increases of $455,033 and $560,000, respectively,

in the Equipment expense category of DIT's Ongoing Operations budget. The first increase was

provided from the funds earmarked for IT technology refreshment in the Corporate Unassigned

contingency reserve to replace obsolete equipment used for bank closings. The second was

provided from the non-earmarked portion of the Corporate Unassigned contingency reserve to

purchase additional Virtual Desktop licenses to enhance security and address the source of recent

service outages.

Following all fourth quarter budget modifications, the balances in the Corporate Unassigned

contingency reserves were $23,679,768 in the Ongoing Operations budget component (including

$1,375,003 reserved for IT technology refreshment that was not spent) and $30,524,390 in the

Receivership Funding budget component.

Approved Staffing Modifications

The 2017 Budget Resolution delegated to the CFO the authority to modify approved 2017 staffing

authorizations for divisions and offices, as long as those modifications did not increase the total

approved 2017 FDIC Operating Budget.

3
In October, the CFO approved the transfer of 11 authorized permanent positions from OCRM to

DOF in conjunction with the integration of OCRM into DOF's RMIC. After an assessment by DOF

of the transferred risk management workload and the OCRM responsibilities being assumed by

individual divisions, the CFO subsequently approved the transfer of six of those 11 authorized

positions from DOF to other divisions as follows: two permanent positions to the Legal Division,

two permanent positions to the Division of Resolutions and Receiverships (DRR), one permanent

position to the Division of Risk Management Supervision (RMS), and one permanent position to the

Division of Consumer Protection (DCP).

Spending Variances

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

Significant spending variances for the year ending December 31, 2017, are defined as those that either

(1) exceed the YTD budget; or (2) are under the YTD budget for a major expense category or

division/office by an amount that exceeds $5 million and represents more than five percent of the major

expense category or total division/office budget.

Significant Spending Variances by Major Expense Category

Ongoing Operations

There were four significant spending variances in major expense categories in the Ongoing Operations

budget component for 2017:

• Salaries and Compensation expenditures were $89 million, or 7 percent, less than budgeted. RMS

($32 million), the Legal Division ($11 million), and all other divisions (from $3 million to $6 million)

each spent less than budgeted in the category. These budget variances were predominately due

to vacancies in budgeted staff positions. In addition, the Corporate Unassigned contingency

reserve had approximately $9 million in unused budget authority remaining at the end of the year in

this expense category. That unused budget authority lapsed on December 31, 2017.

• Outside Services —Personnel expenditures were $29 million, or 11 percent, less than budgeted

➢ The Division of Administration (DOA) spent $5 million less than budgeted, largely due to lowerthan-budgeted spending for several security-related services, including background

investigations.

➢ The CIO Council spent $3 million less than budgeted due to lower discretionary spending by

divisions and lower-than-estimated maintenance costs for new investment applications.

➢ The Office of the Chief Information Security Officer spent nearly $3 million less than budgeted

due to lower than anticipated expenses for credit monitoring services, reduced spending for

security assessments, and delays in onboarding new contractors.

➢ DIT spent $2 million less than budgeted due to targeted reductions in spending during the year

by organizational entities other than the Infrastructure Services Branch as well as lower-thanbudgeted spending for several approved initiatives.

➢ The Corporate Unassigned contingency reserve had approximately $12 million in unused

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

authority lapsed on December 31, 2017.

• Travel expenditures were $10 million, or 11 percent, under budget. This was mostly due to

underspending of $7 million by RMS for regional and field office regular duty and reassignment

4
travel. DCP spent almost $2 million less than budgeted due to the conduct of fewer examinations

than in 2016 and less-than-anticipated travel for conferences and meetings.

• Buildings and Leased Space spending was $11 million, or 11 percent, under budget, mostly due to

underspending by the DOA. DOA spent $10 million less than budgeted due to the extension of

some project timelines beyond 2017, work cancellations, delays in building improvement projects,

and lower building services expenses than in prior years.

Receivership Funding

The Receivership Funding component 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 2017 FDIC Operating Budget:

• Salaries and Compensation expenditures were $9 million, or 25 percent, less than budgeted. This

variance was mostly attributable to vacancies in budgeted non-permanent positions in DRR and

the Legal Division.

Outside Services-Personnel expenditures were $62 million, or 27 percent, less than

budgeted. This variance was largely attributable to lower-than-budgeted spending for outside

counsel services by the Legal Division ($27 million, or 32 percent, less than budgeted), because a

significant amount of litigation was on hold awaiting court rulings on motions. In addition, the

Corporate Unassigned contingency reserve had approximately $30 million in unused budget

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

lapsed on December 31, 2017.

• Travel expenditures were approximately $768,000, or 23 percent, more than budgeted. This

variance resulted from the deployment of more staff and longer travel durations than planned for

bank closings during 2017.

• Buildings expenditures were $8 million, or 44 percent, less than budgeted. This was primarily

attributable to lower-than-projected environmental remediation costs and lower residual facility

expenses from liquidation activities.

• Outside Service —Other expenditures were approximately $56,000, or 4 percent, more than

budgeted. This was due to higher than planned filing and court costs and insurance expenses

associated with closings.

Office of Inspector General

The Office of Inspector General (OIG) budget component had a significant spending variance in only

one of the seven major expense categories. Equipment expenditures were approximately $742,000, or

152 percent, more than budgeted. This variance was due to the purchase of storage, server, and other

equipment and services in connection with an initiative to expand and upgrade the OIG's Electronic

Crimes Unit's laboratory (which also contributed to an increase in the OIG's 2018 operating budget).

5
Significant Spending Variances by Division/Office

Five organizations had significant spending variances through the end of the fourth quarter:

• The Legal Division spent $41 million, or 17 percent, less than budgeted, due to vacancies in

budgeted positions in the Ongoing Operations budget component and slower-than-projected hiring

to fill those vacancies. It also had a significant variance in the Outside Services —Personnel

expense category in the Receivership Funding budget component, where expenditures were less

than budgeted for outside counsel because significant litigation was on hold waiting for a court to

rule on motions.

• RMS spent $40 million, or 7 percent, less than budgeted due to vacancies in budgeted positions

and underspending for regular duty and reassignment travel in the Ongoing Operations budget

component.

• DOA spent $25 million, or 9 percent, less than budgeted, due to vacancies in budgeted positions;

lower-than-budgeted spending for security services, including background checks; lower-thanbudgeted spending on building operating costs, maintenance and repairs; delays in or deferral of

planned construction projects; and lower-than-budgeted spending for human resources contract

support services.

• DRR spent $20 million, or 8 percent, less than budgeted, largely due to lower-than-budgeted

Salaries and Compensation expenses in both the Ongoing Operations and Receivership Funding

budget components due to vacancies in budgeted positions and less-than-anticipated spending in

the Buildings expense category of the Receivership Funding budget component.

• The Corporate Unassigned contingency reserve had approximately $54 million in unused budget

authority remaining at the end of the year. That unused budget authority lapsed on December 31,

2017.

'Information on division/office variances reflects variances in the FDIC Operating Budget.

C^
FDIC CFO REPORT TO THE BOARD —Fourth Quarter 2017

('.ach and each aniii~ralantc $ 1829 $ 1237 $ 592 $ 1333 $

In~stment in U,S. Treasury securities 83,303 ~ 79,439

Assessments receivable, net ~ 2,634 2,635

Interest receivable on investments and other assets, net 506 I 517

Receivables from resolutions, net ~~ 5,973 9,317

Property and equipment, net 334 333 ~

Total Assets ~ 94,579 I $ 93,478

Accounts payable and other liabilities ~ 237 198

Liabilities due to resolutions ~_ 1,203 ~ 2,421 !~

Postretirement benefit liability I 259~ 232

Contingent liability for anticipated failures 98 86

Contingent liability for guarantee payments and litigation losses 35 35

Total Liabilities

FYI: Unrealized gain (loss) on U.S. Treasury securities, net -

; FYI: Unrealized postretirement benefit (loss) gain _ --- -- —

Fund Balance

$ 1,832 $ 2,972

~ (479) (17)

(46)~ (26)

$ 92,747 $ 90,506

3,864 73,512

(1) 2,666

(11)' -- 526

(3, 344) 7, 790

1 358

$ 1,101 $ 86,185 $

39 ~ 238

(1,218) 2,073

27 232

12 i 477

0 3

$ (1,140) $ 3,023 $

(462) — -- 21

(20) (26)

$ 2,241 $ 83,162 $

Highlights of Comprehensive Income for the Years 2013 through 2017

(Dollars in Billions)

O Assessments

_i Operating Expenses

$1S.G

$tA.! u Negative Provision for Insurance Losses

u Comprehensive Income

510.0 

SIo.G 510.6

$9.! ~ I.K g w $9.G

Ss.7 5a.3 SR.B i 

E

i o-

$5.7 I p

1

$J.3

s~.~ M

r

j so.z

2013 _ 2014 _ 2015 ~ 2076 2017

i;~t.i~

496

9,791

(20)

(1,817)

(24)

8,394

(870)

27

(379)

32

(1,191)

(500)

(20)

9,585

7
• 0 7~~,itni~,~r~v~l (((~S riini l~ad~"ll~xiiis;l)

• •. ~-..

1~ •

t- -• •- t- . •-

Assessments $ 10 595 $ 7,939 $ 2,656 $ 9 987j $ 6(

Interest on U.S. Treasu securities 1,057 752 305 671; 3Z

Other revenue 12 8 4~ 16_

Total Revenue $ 11,664 $ 8699 $ 2,965 $ 10,674 $ 9S

O eratin ex enses 1 740 1 296 444 1,715;

Provision for insurance losses 183 20 (203) (1,568 1,3E

Insurance and other ex enses 2 1 1 3

Total Ex enses and Losses $ 1 559 $ 1,317 $ 242 $ 150 $ 1,4(

Net Income 10 105 7,382 $ 2,723 10,524 (41

Unrealized ain loss on U.S. Treasu securities, net 500 38 (462) 30 (53

Unrealized ostretirement benefit ain loss 20 - (20)~ 8 (2

Comprehensive Income $ 9.585 $ 7.344 ~ 2.2411 $ 10.562 $ (97

mash and cash e uivalents $ 885 $ 883 $ 2 $ 874 $ 11

4ccumulated deficit 124,604 124 606 2 124,611 7

Total resolution e ui 886 884 2 878 8

Total revenue 8 5 3 5 3

Dperating expenses 1 0 1 3 (2J

Losses related to thrift resolutions 0 0 0 1 1

Net Income (Loss) _ _ $ 7 $ 5 2, $ 7 C

$ in millions ~ ~~ ~ ~ ~

Dec-17 Dec-16 Change Dec-17 Dec-16 Change Dec-17 Dec-16 Change

Total Receiverships 338 378 (40) 0 0 - 338 378 (40)

Assets in Liquidation $ 2,269 $ 3,315 $ (1,046) $ 2 $ 2 $ - $ 2,271 $ 3,317 $ (1,046)

YTD Collections $ 2,762 $ 1,757 $ 1,005 $ 1 $ 2 $ (1) $ 2,763 $ 1,759 $ 1,004

YTD Dividend/Other Pymts -Cash $ 3,957 $ 3,601 $ 356 $ - $ - $ - $ 3,957 $ 3,601 $ 356

DIF's Portfolio Performance Compared to U.S. Treasury Benchmark

(Year-to-Date Return)

i.zoov~ -

—DIF —Merrill Lynch 0.2 Yeah U5T

1.095Yo

1.000% ____._.. __._ _. —__.__' —_ —.__..

0.800% __._. - -- ---_.......------

0.746%

d 0.666%

0.611%

0.784%

y 0.600%

g

o.ssz%

o.as~%

0.40096 -

0.280%

--

0.426% --

0.200% .. ._ . .--- --~--- ----- 0.197% _.-- --~-~- -

0.000%

December 2013 December 2014 December 2015 December 2016 December 2017

Variance (basis paints) -66ps 23 bps 19 bps 316ps 19 bps

8
Par Value $85,376 $74,430 $10,946

Amortized Cost $85,707 $74,947 $10,760

Total Market Value (including accrued interest) $85,590 $75,335 $10,255

Primary Reser~ ~ $85,590 $75,335 $10,255

Primary Reser~ % of Total Portfolio 100.0% 100.0% 0.0%

Yield-to-Maturity Z 1.52% 1.12% 0.40%

Weighted A~rage Maturity (in years) 2.05 1.60 0.45

Effecti~ Duration (in years)

Total Portfolio 1.97 1.55 0.42

Available-for-Sale Securities 2.07 1.66 0.41

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

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

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

Z The Yeld-to-Maturity includes the potential yield of Treasurylnflation-Protected Securities (TIPS), which assumes an

average 2.0%annual increase in the CPI o~rthe remaining life of each TIPS.

31n early August 2008, rnanagementreclassified all ofthe 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 m aturity dates.

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

purposes.

5 Due to the short-term nature of the NLF portfolio, its Book and Market Values are identical for reporting purposes.
DEPOSIT INSURANCE FUND Strategy for the 4th Quarter 2017

Purchase up to $11 billion (par value) of Treasurysecurities with maturitydates

between March 31, 2018, and December 31, 2022, subjectto the following

additional provisions: all newly purchased securities will be designated as AFS; no

more than $2 billion (adjusted par value) ofsuch securities shall consist ofTIPS;

and target at least $4 billion (par value) of newly purchased securities maturing in

2021 or 2022.

Strategy Changes for the 1st Quarter 2018

Purchase up to $11 billion (par value) of Treasury securities with maturitydates

between June 30, 2018, and June 30, 2023, subject to the following additional

provisions: all newlypurchasedsecurities will be designated as AFS; no more than

$2 billion (adjusted parvalue) ofsuch securities shall consist ofTlPS; and target at

least $3 billion (par value) of newly purchased securities maturing between July 1,

2021, and June 30, 2023.

NATIONAL LIQUIDATION FUND Strategy for the 4th Quarter 2017

Maintain an o~nrnightdeposittargetfloorbalance within a range of$100 million to

$300 million.

Strategicallyin~estthe remaining funds in the zero-to 12-month maturitysector.

Strategy Changes for the 1st Quarter 2018

No strategy changes forthe firstquarterof2018.

10
t- •- 1

1• e 

Annual YTD YTD % ofYTD YTD

Major Expense Category Budget Budget Expenditures Budget Used Variance

FDIC Operating Budget

Ongoing Operations

Salaries &Compensation $1,247,608 $1,247,608 $1,158,537 93% ($89,071)

Outside Services -Personnel $251,831 $251,831 $223,280 89% ($28,551)

Travel $95,448 $95,448 $85,306 89% ($10,142)

Buildings $103,054 $103,054 $91,667 89% ($11,387)

Equipment $92,503 $92,503 $89,697 97% ($2,806)

Outside Services -Other $16,545 $16,545 $14,365 87% ($2,180)

Other Expenses $14,081 $14,081 $11,547 82% ($2,534)

Total Ongoing Operations $1,821,070 $1,821,070 $1,674,399 92% ($146,671)

Receivership Funding

Salaries &Compensation $37,356 $37,356 $28,159 75% ($9,197)

Outside Services -Personnel $230,152 $230,152 $168,427 73% ($61,725)

Travel $3,284 $3,284 $4,052 123% $768

Buildings $17,700 $17,700 $9,843 56% ($7,857)

Equipment $1,431 $1,431 $1,353 95% ($78)

Outside Services -Other $1,273 $1,273 $1,329 104% $56

Other Expenses $8,804 $8,804 $8,328 95% ($476)

Total Receivership Funding $300,000 $300,000 $221,491 74°/a ($78,509)

Office of Inspector General

Salaries &Compensation $32,770 $32,770 $31,048 95% ($1,722)

Outside Services -Personnel $1,418 $1,418 $1,229 87% ($189)

Travel $1,486 $1,486 $1,229 83% ($257)

Buildings $o $o $o $o

Equipment $487 $487 $1,229 252% $742

Outside Services -Other $169 $169 $7 4% ($162)

Other Expenses $423 $423 $341 81% ($82)

Total Office of Inspector General $36,753 $36,753 $35,083 95% ($1,670)

Total FDIC Operating Budget $2,157,823 $2,157,823 $1,930,973 89% ($226,850)

11
Division/Office

• t • •

~ • t- - ~- 1

t• • •

Annual YTD YTD

Budget Budget Expenditures

% of YTD

Budget Used

YTD

Variance

FDIC Operating Budget

Risk Management Supervision $591,544 $591,544 $551,436 93°/a ($40,108)

Depositor &Consumer Protection $181,141 $181,141 $172,135 95°/a ($9,006)

Information Technology $227,496 $227,496 $217,407 96°/o ($10,089)

Administration $273,360 $273,360 $248,457 91% ($24,903)

Resolutions &Receiverships $271,786 $271,786 $251,330 92°/a ($20,456)

Legal $233,804 $233,804 $192,997 83% ($40,807)

Insurance &Research $53,106 $53,106 $48,242 91% ($4,864)

Finance' $44,066 $44,066 X40,076 91% ($3,990)

Inspector General $36,753 $36,753 $35,083 95% ($1,670)

Chief Information Security Officer 2 $41,969 $41,969 $37,498 89% ($4,471)

Corporate University -CEP $19,082 $19,082 $18,879 99% ($203)

Corporate University- Corporate $25,133 $25,133 $24,512 98% ($621)

Executive Support 3 $22,838 $22,838 $19,741 86% ($3,097)

Executive Offices 4 $11,023 $11,023 $10,118 92% ($905)

Complex Financial Institutions $20,156 $20,156 $17,074 85% ($3,082)

CIO Council $50,362 $50,362 $45,988 91% ($4,374)

Corporate Unassigned $54,204 $54,204 $0 0% ($54,204)

Total FDIC Operating Budget I $2,157,823 $2,157,823 $1,930,973 I 89% ($226,850)

1) Budget and expenditures for the Division of Finance (DOF) includes the annual budget and all expenditures for

the former Office of Corporate Risk Management (OCRM). The FDIC Board of Directors has approved the

integration of the functions of OCRM into anewly-constituted Risk Management and Controls Branch (RMIC) within

DOF in October 2017.

2) The Information Security &Privacy Staff was renamed the Office of the Chief Information Security Officer during

2017.

3) Executive Support includes the Offices of Minority and Women Inclusion, Communications, Ombudsman,

Legislative Affairs, and Financial Institution Adjudication.

4) 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.

12