A. KEY STATISTICS

The FDIC’s Strategic Plan and Annual Performance Plan 

provide the basis for annual planning and budgeting 

for needed resources. The 2013 aggregate budget (for 

corporate, receivership, and investment spending) was $2.7 

billion, while actual expenditures for the year were $2.3 

billion, about $0.2 billion less than 2012 expenditures.

Over the past decade the FDIC’s expenditures have varied in 

response to workload. Earlier in the decade, expenditures 

rose, largely due to increasing resolution and receivership 

activity. To a lesser extent increased expenses resulted 

from supervision-related costs associated with the oversight 

of more troubled institutions. More recently, these 

increases have been subsiding.

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$0

FDIC EXPENDITURES 2004–2013

Dollars in Millions

Appendices V I.

APPENDICES 113
ANNUAL REPORT 2013

114 APPENDICES

FDIC ACTIONS ON FINANCIAL INSTITUTIONS APPLICATIONS 2011–2013

2013 2012 2011

Deposit Insurance 10 6 10

Approved1 10 6 10

Denied 0 0 0

New Branches 499 570 442

Approved 499 570 442

Denied 0 0 0

Mergers 256 238 206

Approved 256 238 206

Denied 0 0 0

Requests for Consent to Serve2 474 674 876

Approved 474 671 875

Section 19 4 10 24

Section 32 470 661 851

Denied 0 3 1

Section 19 0 1 0

Section 32 0 2 1

Notices of Change in Control 22 26 21

Letters of Intent Not to Disapprove 22 26 21

Disapproved 0 0 0

Brokered Deposit Waivers 81 97 84

Approved 81 95 83

Denied 0 2 1

Savings Association Activities3 8 21 30

Approved 8 21 30

Denied 0 0 0

State Bank Activities/Investments4 10 7 9

Approved 10 7 9

Denied 0 0 0

Conversion of Mutual Institutions 7 8 6

Non-Objection 7 8 6

Objection 0 0 0

1 Includes deposit insurance application filed on behalf of (1) newly organized institutions, (2) existing uninsured financial services companies seeking 

establishment as an insured institution, and (3) interim institutions established to facilitate merger or conversion transactions, and applications to 

facilitate the establishment of thrift holding companies.

2 Under Section 19 of the Federal Deposit Insurance (FDI) Act, an insured institution must receive FDIC approval before employing a person 

convicted of dishonesty or breach of trust. Under Section 32, the FDIC must approve any change of directors or senior executive officers at a state 

nonmember bank that is not in compliance with capital requirements or is otherwise in troubled condition. 

3 Amendments to Part 303 of the FDIC Rules and Regulations changed FDIC oversight responsibility in October 1998. In 1998, Part 303 changed 

the Delegations of Authority to act upon applications. 

4 Section 24 of the FDI Act, in general, precludes a federally insured state bank from engaging in an activity not permissible for a national bank and 

requires notices to be filed with the FDIC.
APPENDICES 115

COMPLIANCE, ENFORCEMENT, AND OTHER RELATED LEGAL ACTIONS 2011–2013

2013 2012 2011

Total Number of Actions Initiated by the FDIC 414 557 557

Termination of Insurance

Involuntary Termination

Sec. 8a For Violations, Unsafe/Unsound Practices or Conditions 0 0 0

Voluntary Termination

Sec. 8a By Order Upon Request 0 0 0

Sec. 8p No Deposits 7 3 7

Sec. 8q Deposits Assumed 4 4 2

Sec. 8b Cease-and-Desist Actions

Notices of Charges Issued 2 0 7

Orders to Pay Restitution 11 9 N/A

Consent Orders 70 120 183

Sec. 8e Removal/Prohibition of Director or Officer

Notices of Intention to Remove/Prohibit 14 8 11

Consent Orders 99 108 100

Sec. 8g Suspension/Removal When Charged With Crime 0 0 1

Civil Money Penalties Issued

Sec. 7a Call Report Penalties 0 1 0

Sec. 8i Civil Money Penalties 81 164 193

Sec. 8i Civil Money Penalty Notices of Assessment 13 5 5

Sec. 10c Orders of Investigation 16 16 29

Sec. 19 Waiver Orders

Approved Section 19 Waiver Orders 86 119 10

Denied Section 19 Waiver Orders 2 0 1

Sec. 32 Notices Disapproving Officer/Director’s Request for Review 0 0 0

Truth-in-Lending Act Reimbursement Actions

Denials of Requests for Relief 0 0 0

Grants of Relief 0 0 0

 Banks Making Reimbursement1 98 126 84

Suspicious Activity Reports (open and closed institutions)1 123,134 139,102 125,460

Other Actions Not Listed 9 0 8

1 These actions do not constitute the initiation of a formal enforcement action and, therefore, are not included in the total number of actions 

initiated.
ANNUAL REPORT 2013

116 APPENDICES

ESTIMATED INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 

DECEMBER 31, 1934, THROUGH DECEMBER 31, 20131 

Dollars in Millions (except Insurance Coverage)

Deposits in Insured 

Institutions2

Insurance Fund as 

a Percentage of

Year

Insurance 

Coverage2

Total Domestic 

Deposits

Est. Insured

Deposits

Percentage 

of Insured 

Deposits

Deposit 

Insurance

Fund

Total

Domestic 

Deposits

Est. Insured

Deposits

2013 $250,000 $9,825,300 $6,011,310 61.2 $47,190.8 0.48 0.79 

2012 250,000 9,474,582 7,406,522 78.2 32,957.8 0.35 0.44 

2011 250,000 8,782,134 6,974,690 79.4 11,826.5 0.13 0.17 

2010 250,000 7,887,733 6,302,329 79.9 (7,352.2) (0.09) (0.12)

2009 250,000 7,705,353 5,407,773 70.2 (20,861.8) (0.27) (0.39)

2008 100,000 7,505,408 4,750,783 63.3 17,276.3 0.23 0.36 

2007 100,000 6,921,678 4,292,211 62.0 52,413.0 0.76 1.22 

2006 100,000 6,640,097 4,153,808 62.6 50,165.3 0.76 1.21 

2005 100,000 6,229,823 3,891,000 62.5 48,596.6 0.78 1.25 

2004 100,000 5,724,775 3,622,213 63.3 47,506.8 0.83 1.31 

2003 100,000 5,224,030 3,452,606 66.1 46,022.3 0.88 1.33 

2002 100,000 4,916,200 3,383,720 68.8 43,797.0 0.89 1.29 

2001 100,000 4,565,068 3,216,585 70.5 41,373.8 0.91 1.29 

2000 100,000 4,211,895 3,055,108 72.5 41,733.8 0.99 1.37 

1999 100,000 3,885,826 2,869,208 73.8 39,694.9 1.02 1.38 

1998 100,000 3,817,150 2,850,452 74.7 39,452.1 1.03 1.38 

1997 100,000 3,602,189 2,746,477 76.2 37,660.8 1.05 1.37 

1996 100,000 3,454,556 2,690,439 77.9 35,742.8 1.03 1.33 

1995 100,000 3,318,595 2,663,873 80.3 28,811.5 0.87 1.08 

1994 100,000 3,184,410 2,588,619 81.3 23,784.5 0.75 0.92 

1993 100,000 3,220,302 2,602,781 80.8 14,277.3 0.44 0.55 

1992 100,000 3,275,530 2,677,709 81.7 178.4 0.01 0.01 

1991 100,000 3,331,312 2,733,387 82.1 (6,934.0) (0.21) (0.25)

1990 100,000 3,415,464 2,784,838 81.5 4,062.7 0.12 0.15 

1989 100,000 3,412,503 2,755,471 80.7 13,209.5 0.39 0.48 

1988 100,000 2,337,080 1,756,771 75.2 14,061.1 0.60 0.80 

1987 100,000 2,198,648 1,657,291 75.4 18,301.8 0.83 1.10 

1986 100,000 2,162,687 1,636,915 75.7 18,253.3 0.84 1.12 

1985 100,000 1,975,030 1,510,496 76.5 17,956.9 0.91 1.19 

1984 100,000 1,805,334 1,393,421 77.2 16,529.4 0.92 1.19 

1983 100,000 1,690,576 1,268,332 75.0 15,429.1 0.91 1.22 

1982 100,000 1,544,697 1,134,221 73.4 13,770.9 0.89 1.21 

1981 100,000 1,409,322 988,898 70.2 12,246.1 0.87 1.24 

1980 100,000 1,324,463 948,717 71.6 11,019.5 0.83 1.16 

1979 40,000 1,226,943 808,555 65.9 9,792.7 0.80 1.21 
APPENDICES 117

ESTIMATED INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 

DECEMBER 31, 1934, THROUGH DECEMBER 31, 20131 (continued)

Dollars in Millions (except Insurance Coverage)

Deposits in Insured 

Institutions2

Insurance Fund as 

a Percentage of

Year

Insurance 

Coverage2

Total Domestic 

Deposits

Est. Insured

Deposits

Percentage 

of Insured 

Deposits

Deposit 

Insurance

Fund

Total

Domestic 

Deposits

Est. Insured

Deposits

1978 40,000 1,145,835 760,706 66.4 8,796.0 0.77 1.16 

1977 40,000 1,050,435 692,533 65.9 7,992.8 0.76 1.15 

1976 40,000 941,923 628,263 66.7 7,268.8 0.77 1.16 

1975 40,000 875,985 569,101 65.0 6,716.0 0.77 1.18 

1974 40,000 833,277 520,309 62.4 6,124.2 0.73 1.18 

1973 20,000 766,509 465,600 60.7 5,615.3 0.73 1.21 

1972 20,000 697,480 419,756 60.2 5,158.7 0.74 1.23 

1971 20,000 610,685 374,568 61.3 4,739.9 0.78 1.27 

1970 20,000 545,198 349,581 64.1 4,379.6 0.80 1.25 

1969 20,000 495,858 313,085 63.1 4,051.1 0.82 1.29 

1968 15,000 491,513 296,701 60.4 3,749.2 0.76 1.26 

1967 15,000 448,709 261,149 58.2 3,485.5 0.78 1.33 

1966 15,000 401,096 234,150 58.4 3,252.0 0.81 1.39 

1965 10,000 377,400 209,690 55.6 3,036.3 0.80 1.45 

1964 10,000 348,981 191,787 55.0 2,844.7 0.82 1.48 

1963 10,000 313,304 177,381 56.6 2,667.9 0.85 1.50 

1962 10,000 297,548 170,210 57.2 2,502.0 0.84 1.47 

1961 10,000 281,304 160,309 57.0 2,353.8 0.84 1.47 

1960 10,000 260,495 149,684 57.5 2,222.2 0.85 1.48 

1959 10,000 247,589 142,131 57.4 2,089.8 0.84 1.47 

1958 10,000 242,445 137,698 56.8 1,965.4 0.81 1.43 

1957 10,000 225,507 127,055 56.3 1,850.5 0.82 1.46 

1956 10,000 219,393 121,008 55.2 1,742.1 0.79 1.44 

1955 10,000 212,226 116,380 54.8 1,639.6 0.77 1.41 

1954 10,000 203,195 110,973 54.6 1,542.7 0.76 1.39 

1953 10,000 193,466 105,610 54.6 1,450.7 0.75 1.37 

1952 10,000 188,142 101,841 54.1 1,363.5 0.72 1.34 

1951 10,000 178,540 96,713 54.2 1,282.2 0.72 1.33 

1950 10,000 167,818 91,359 54.4 1,243.9 0.74 1.36 

1949 5,000 156,786 76,589 48.8 1,203.9 0.77 1.57 

1948 5,000 153,454 75,320 49.1 1,065.9 0.69 1.42 

1947 5,000 154,096 76,254 49.5 1,006.1 0.65 1.32 

1946 5,000 148,458 73,759 49.7 1,058.5 0.71 1.44 

1945 5,000 157,174 67,021 42.6 929.2 0.59 1.39 

1944 5,000 134,662 56,398 41.9 804.3 0.60 1.43 
ANNUAL REPORT 2013

118 APPENDICES

ESTIMATED INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 

DECEMBER 31, 1934, THROUGH DECEMBER 31, 20131 (continued)

Dollars in Millions (except Insurance Coverage)

Deposits in Insured 

Institutions2

Insurance Fund as 

a Percentage of

Year

Insurance 

Coverage2

Total Domestic 

Deposits

Est. Insured

Deposits

Percentage 

of Insured 

Deposits

Deposit 

Insurance

Fund

Total

Domestic 

Deposits

Est. Insured

Deposits

1943 5,000 111,650 48,440 43.4 703.1 0.63 1.45 

1942 5,000 89,869 32,837 36.5 616.9 0.69 1.88 

1941 5,000 71,209 28,249 39.7 553.5 0.78 1.96 

1940 5,000 65,288 26,638 40.8 496.0 0.76 1.86 

1939 5,000 57,485 24,650 42.9 452.7 0.79 1.84 

1938 5,000 50,791 23,121 45.5 420.5 0.83 1.82 

1937 5,000 48,228 22,557 46.8 383.1 0.79 1.70 

1936 5,000 50,281 22,330 44.4 343.4 0.68 1.54 

1935 5,000 45,125 20,158 44.7 306.0 0.68 1.52 

1934 5,000 40,060 18,075 45.1 291.7 0.73 1.61 

1

Prior to 1989, figures are for the Bank Insurance Fund (BIF) only and exclude insured branches of foreign banks. For 1989 to 2005, figures represent 

sum of the BIF and Savings Association Insurance Fund (SAIF) amounts; for 2006 to 2013, figures are for DIF. Amounts for 1989-2013 include 

insured branches of foreign banks. Prior to year-end 1991, insured deposits were estimated using percentages determined from June Call and 

Thrift Financial Reports.

2

The year-end 2008 coverage limit and estimated insured deposits do not reflect the temporary increase to $250,000 then in effect under the 

Emergency Economic Stabilization Act of 2008. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) made this 

coverage limit permanent. The year-end 2009 coverage limit and estimated insured deposits reflect the $250,000 coverage limit. The DoddFrank Act also temporarily provided unlimited coverage for non-interest bearing transaction accounts for two years beginning December 31, 2010. 

Coverage for certain retirement accounts increased to $250,000 in 2006. Initial coverage limit was $2,500 from January 1 to June 30, 1934.
APPENDICES 119

INCOME AND EXPENSES, DEPOSIT INSURANCE FUND, FROM BEGINNING OF OPERATIONS, 

SEPTEMBER 11, 1933, THROUGH DECEMBER 31, 2013 

Dollars in Millions

Income Expenses and Losses

Year Total

Assessment 

Income

Assessment 

Credits

Investment 

and Other

Effective

Assessment 

Rate1 Total

Provision 

for 

Ins. Losses

Admin.

and 

Operating 

Expenses2

Interest

& Other Ins. 

Expenses

Funding 

Transfer

from the 

FSLIC 

Resolution 

Fund

Net 

Income/

(Loss)

Total $201,686.7 $137,510.7 $11,392.9 $75,568.9 $154,785.2 $120,599.0 $24,743.1 $9,443.1 $139.5 $47,041.0 

2013 10,458.9 9,734.2 0.0 724.7 0.0776% (4,045.9) (5,659.4) 1,608.7 4.8 0 14,504.8 

2012 18,522.3 12,397.2 0.2 6,125.3 0.1012 (2,599.0) (4,222.6) 1,777.5 (153.9) 0 21,121.3 

2011 16,342.0 13,499.5 0.9 2,843.4 0.1115 (2,915.4) (4,413.6) 1,625.4 (127.2) 0 19,257.4 

2010 13,379.9 13,611.2 0.8 (230.5) 0.1772 75.0 (847.8) 1,592.6 (669.8) 0 13,304.9 

2009 24,706.4 17,865.4 148.0 6,989.0 0.2330 60,709.0 57,711.8 1,271.1 1,726.1 0 (36,002.6)

2008 7,306.3 4,410.4 1,445.9 4,341.8 0.0418 44,339.5 41,838.8 1,033.5 1,467.2 0 (37,033.2)

2007 3,196.2 3,730.9 3,088.0 2,553.3 0.0093 1,090.9 95.0 992.6 3.3 0 2,105.3 

2006 2,643.5 31.9 0.0 2,611.6 0.0005 904.3 (52.1) 950.6 5.8 0 1,739.2 

2005 2,420.5 60.9 0.0 2,359.6 0.0010 809.3 (160.2) 965.7 3.8 0 1,611.2 

2004 2,240.3 104.2 0.0 2,136.1 0.0019 607.6 (353.4) 941.3 19.7 0 1,632.7 

2003 2,173.6 94.8 0.0 2,078.8 0.0019 (67.7) (1,010.5) 935.5 7.3 0 2,241.3 

2002 2,384.7 107.8 0.0 2,276.9 0.0023 719.6 (243.0) 945.1 17.5 0 1,665.1 

2001 2,730.1 83.2 0.0 2,646.9 0.0019 3,123.4 2,199.3 887.9 36.2 0 (393.3)

2000 2,570.1 64.3 0.0 2,505.8 0.0016 945.2 28.0 883.9 33.3 0 1,624.9 

1999 2,416.7 48.4 0.0 2,368.3 0.0013 2,047.0 1,199.7 823.4 23.9 0 369.7 

1998 2,584.6 37.0 0.0 2,547.6 0.0010 817.5 (5.7) 782.6 40.6 0 1,767.1 

1997 2,165.5 38.6 0.0 2,126.9 0.0011 247.3 (505.7) 677.2 75.8 0 1,918.2 

1996 7,156.8 5,294.2 0.0 1,862.6 0.1622 353.6 (417.2) 568.3 202.5 0 6,803.2 

1995 5,229.2 3,877.0 0.0 1,352.2 0.1238 202.2 (354.2) 510.6 45.8 0 5,027.0 

1994 7,682.1 6,722.7 0.0 959.4 0.2192 (1,825.1) (2,459.4) 443.2 191.1 0 9,507.2 

1993 7,354.5 6,682.0 0.0 672.5 0.2157 (6,744.4) (7,660.4) 418.5 497.5 0 14,098.9 

1992 6,479.3 5,758.6 0.0 720.7 0.1815 (596.8) (2,274.7) 614.83 1,063.1 35.4 7,111.5 

1991 5,886.5 5,254.0 0.0 632.5 0.1613 16,925.3 15,496.2 326.1 1,103.0 42.4 (10,996.4)

1990 3,855.3 2,872.3 0.0 983.0 0.0868 13,059.3 12,133.1 275.6 650.6 56.1 (9,147.9)

1989 3,494.8 1,885.0 0.0 1,609.8 0.0816 4,352.2 3,811.3 219.9 321.0 5.6 (851.8)

1988 3,347.7 1,773.0 0.0 1,574.7 0.0825 7,588.4 6,298.3 223.9 1,066.2 0 (4,240.7)

1987 3,319.4 1,696.0 0.0 1,623.4 0.0833 3,270.9 2,996.9 204.9 69.1 0 48.5 

1986 3,260.1 1,516.9 0.0 1,743.2 0.0787 2,963.7 2,827.7 180.3 (44.3) 0 296.4 

1985 3,385.5 1,433.5 0.0 1,952.0 0.0815 1,957.9 1,569.0 179.2 209.7 0 1,427.6 

1984 3,099.5 1,321.5 0.0 1,778.0 0.0800 1,999.2 1,633.4 151.2 214.6 0 1,100.3 

1983 2,628.1 1,214.9 164.0 1,577.2 0.0714 969.9 675.1 135.7 159.1 0 1,658.2 

1982 2,524.6 1,108.9 96.2 1,511.9 0.0769 999.8 126.4 129.9 743.5 0 1,524.8 

1981 2,074.7 1,039.0 117.1 1,152.8 0.0714 848.1 320.4 127.2 400.5 0 1,226.6 
ANNUAL REPORT 2013

120 APPENDICES

INCOME AND EXPENSES, DEPOSIT INSURANCE FUND, FROM BEGINNING OF OPERATIONS, 

SEPTEMBER 11, 1933, THROUGH DECEMBER 31, 2013 (continued)

Dollars in Millions

Income Expenses and Losses

Year Total

Assessment 

Income

Assessment 

Credits

Investment 

and Other

Effective

Assessment 

Rate1 Total

Provision 

for 

Ins. Losses

Admin.

and 

Operating 

Expenses2

Interest

& Other Ins. 

Expenses

Funding 

Transfer

from the 

FSLIC 

Resolution 

Fund

Net 

Income/

(Loss)

1980 1,310.4 951.9 521.1 879.6 0.0370 83.6 (38.1) 118.2 3.5 0 1,226.8 

1979 1,090.4 881.0 524.6 734.0 0.0333 93.7 (17.2) 106.8 4.1 0 996.7 

1978 952.1 810.1 443.1 585.1 0.0385 148.9 36.5 103.3 9.1 0 803.2 

1977 837.8 731.3 411.9 518.4 0.0370 113.6 20.8 89.3 3.5 0 724.2 

1976 764.9 676.1 379.6 468.4 0.0370 212.3 28.0 180.44 3.9 0 552.6 

1975 689.3 641.3 362.4 410.4 0.0357 97.5 27.6 67.7 2.2 0 591.8 

1974 668.1 587.4 285.4 366.1 0.0435 159.2 97.9 59.2 2.1 0 508.9 

1973 561.0 529.4 283.4 315.0 0.0385 108.2 52.5 54.4 1.3 0 452.8 

1972 467.0 468.8 280.3 278.5 0.0333 65.7 10.1 49.6 6.05 0 401.3 

1971 415.3 417.2 241.4 239.5 0.0345 60.3 13.4 46.9 0.0 0 355.0 

1970 382.7 369.3 210.0 223.4 0.0357 46.0 3.8 42.2 0.0 0 336.7 

1969 335.8 364.2 220.2 191.8 0.0333 34.5 1.0 33.5 0.0 0 301.3 

1968 295.0 334.5 202.1 162.6 0.0333 29.1 0.1 29.0 0.0 0 265.9 

1967 263.0 303.1 182.4 142.3 0.0333 27.3 2.9 24.4 0.0 0 235.7 

1966 241.0 284.3 172.6 129.3 0.0323 19.9 0.1 19.8 0.0 0 221.1 

1965 214.6 260.5 158.3 112.4 0.0323 22.9 5.2 17.7 0.0 0 191.7 

1964 197.1 238.2 145.2 104.1 0.0323 18.4 2.9 15.5 0.0 0 178.7 

1963 181.9 220.6 136.4 97.7 0.0313 15.1 0.7 14.4 0.0 0 166.8 

1962 161.1 203.4 126.9 84.6 0.0313 13.8 0.1 13.7 0.0 0 147.3 

1961 147.3 188.9 115.5 73.9 0.0323 14.8 1.6 13.2 0.0 0 132.5 

1960 144.6 180.4 100.8 65.0 0.0370 12.5 0.1 12.4 0.0 0 132.1 

1959 136.5 178.2 99.6 57.9 0.0370 12.1 0.2 11.9 0.0 0 124.4 

1958 126.8 166.8 93.0 53.0 0.0370 11.6 0.0 11.6 0.0 0 115.2 

1957 117.3 159.3 90.2 48.2 0.0357 9.7 0.1 9.6 0.0 0 107.6 

1956 111.9 155.5 87.3 43.7 0.0370 9.4 0.3 9.1 0.0 0 102.5 

1955 105.8 151.5 85.4 39.7 0.0370 9.0 0.3 8.7 0.0 0 96.8 

1954 99.7 144.2 81.8 37.3 0.0357 7.8 0.1 7.7 0.0 0 91.9 

1953 94.2 138.7 78.5 34.0 0.0357 7.3 0.1 7.2 0.0 0 86.9 

1952 88.6 131.0 73.7 31.3 0.0370 7.8 0.8 7.0 0.0 0 80.8 

1951 83.5 124.3 70.0 29.2 0.0370 6.6 0.0 6.6 0.0 0 76.9 

1950 84.8 122.9 68.7 30.6 0.0370 7.8 1.4 6.4 0.0 0 77.0 

1949 151.1 122.7 0.0 28.4 0.0833 6.4 0.3 6.1 0.0 0 144.7 

1948 145.6 119.3 0.0 26.3 0.0833 7.0 0.7 6.36 0.0 0 138.6 

1947 157.5 114.4 0.0 43.1 0.0833 9.9 0.1 9.8 0.0 0 147.6 
APPENDICES 121

INCOME AND EXPENSES, DEPOSIT INSURANCE FUND, FROM BEGINNING OF OPERATIONS, 

SEPTEMBER 11, 1933, THROUGH DECEMBER 31, 2013 (continued)

Dollars in Millions

Income Expenses and Losses

Year Total

Assessment 

Income

Assessment 

Credits

Investment 

and Other

Effective

Assessment 

Rate1 Total

Provision 

for 

Ins. Losses

Admin.

and 

Operating 

Expenses2

Interest

& Other Ins. 

Expenses

Funding 

Transfer

from the 

FSLIC 

Resolution 

Fund

Net 

Income/

(Loss)

1946 130.7 107.0 0.0 23.7 0.0833 10.0 0.1 9.9 0.0 0 120.7 

1945 121.0 93.7 0.0 27.3 0.0833 9.4 0.1 9.3 0.0 0 111.6 

1944 99.3 80.9 0.0 18.4 0.0833 9.3 0.1 9.2 0.0 0 90.0 

1943 86.6 70.0 0.0 16.6 0.0833 9.8 0.2 9.6 0.0 0 76.8 

1942 69.1 56.5 0.0 12.6 0.0833 10.1 0.5 9.6 0.0 0 59.0 

1941 62.0 51.4 0.0 10.6 0.0833 10.1 0.6 9.5 0.0 0 51.9 

1940 55.9 46.2 0.0 9.7 0.0833 12.9 3.5 9.4 0.0 0 43.0 

1939 51.2 40.7 0.0 10.5 0.0833 16.4 7.2 9.2 0.0 0 34.8 

1938 47.7 38.3 0.0 9.4 0.0833 11.3 2.5 8.8 0.0 0 36.4 

1937 48.2 38.8 0.0 9.4 0.0833 12.2 3.7 8.5 0.0 0 36.0 

1936 43.8 35.6 0.0 8.2 0.0833 10.9 2.6 8.3 0.0 0 32.9 

1935 20.8 11.5 0.0 9.3 0.0833 11.3 2.8 8.5 0.0 0 9.5 

1933-34 7.0 0.0 0.0 7.0 N/A 10.0 0.2 9.8 0.0 0 (3.0)

1 Figures represent only BIF-insured institutions prior to 1990, BIF- and SAIF-insured institutions from 1990 through 2005, and DIF-insured institutions 

beginning in 2006. After 1995, all thrift closings became the responsibility of the FDIC and amounts are reflected in the SAIF. The effective 

assessment rate is calculated from annual assessment income (net of assessment credits), excluding transfers to the Financing Corporation (FICO), 

Resolution Funding Corporation (REFCORP) and FSLIC Resolution Fund, divided by the four quarter average assessment base. The effective 

rates from 1950 through 1984 varied from the statutory rate of 0.0833 percent due to assessment credits provided in those years. The statutory 

rate increased to 0.12 percent in 1990 and to a minimum of 0.15 percent in 1991. The effective rates in 1991 and 1992 varied because the FDIC 

exercised new authority to increase assessments above the statutory minimum rate when needed. Beginning in 1993, the effective rate was based 

on a risk-related premium system under which institutions paid assessments in the range of 0.23 percent to 0.31 percent. In May 1995, the BIF 

reached the mandatory recapitalization level of 1.25 percent. As a result, BIF assessment rates were reduced to a range of 0.04 percent to 0.31 

percent of assessable deposits, effective June 1995, and assessments totaling $1.5 billion were refunded in September 1995. Assessment rates 

for the BIF were lowered again to a range of 0 to 0.27 percent of assessable deposits, effective the start of 1996. In 1996, the SAIF collected a 

one-time special assessment of $4.5 billion. Subsequently, assessment rates for the SAIF were lowered to the same range as the BIF, effective 

October 1996. This range of rates remained unchanged for both funds through 2006. As part of the implementation of the Federal Deposit 

Insurance Reform Act of 2005, assessment rates were increased to a range of 0.05 percent to 0.43 percent of assessable deposits effective at the 

start of 2007, but many institutions received a one-time assessment credit ($4.7 billion in total) to offset the new assessments. For the first quarter 

of 2009, assessment rates were increased to a range of 0.12 to 0.50 percent of assessable deposits. From the second quarter of 2009 through 

the first quarter of 2011, initial assessment rates ranged between 0.12 and 0.45 percent of assessable deposits. Initial rates are subject to further 

adjustments. Beginning in the second quarter of 2011, the assessment base changed to average total consolidated assets less average tangible 

equity (with certain adjustments for banker’s banks and custodial banks), as required by the Dodd-Frank Act. The FDIC implemented a new 

assessment rate schedule at the same time to conform to the larger assessment base. Initial assessment rates were lowered to a range of 0.05 to 

0.35 percent of the new base. The annualized assessment rates averaged approximately 17.6 cents per $100 of assessable deposits for the first 

quarter of 2011 and 11.1 cents per $100 of the new base for the last three quarters of 2011 (which is the figure shown in the table). The effective 

assessment rate for 2012 and 2013 is based on full year accrued assessment income divided by a four-quarter average of the new assessment base. 

On June 30, 2009, a special assessment was imposed on all insured banks and thrifts, which amounted in aggregate to approximately $5.4 billion. 

For 8,106 institutions, with $9.3 trillion in assets, the special assessment was 5 basis points of each institution’s assets minus tier one capital; 89 

other institutions, with assets of $4.0 trillion, had their special assessment capped at 10 basis points of their second quarter assessment base.

2 These expenses, which are presented as operating expenses in the Statement of Income and Fund Balance, pertain to the FDIC in its corporate 

capacity only and do not include costs that are charged to the failed bank receiverships that are managed by the FDIC. The receivership expenses 

are presented as part of the “Receivables from Resolutions, net” line on the Balance Sheet. The narrative and graph presented on page 113 of this 

report shows the aggregate (corporate and receivership) expenditures of the FDIC.

3 Includes $210 million for the cumulative effect of an accounting change for certain postretirement benefits.

4 Includes a $106 million net loss on government securities.

5 This amount represents interest and other insurance expenses from 1933 to 1972.

6 Includes the aggregate amount of $81 million of interest paid on capital stock between 1933 and 1948.
ANNUAL REPORT 2013

122 APPENDICES

NUMBER, ASSETS, DEPOSITS, LOSSES, AND LOSS TO FUNDS OF INSURED THRIFTS 

TAKEN OVER OR CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1989 THROUGH 19951

Dollars in Thousands

Year

Number 

of 

Thrifts Assets Deposits

Estimated 

Receivership 

Loss2

Loss to 

Funds3

Total 748 $393,986,574 $317,501,978 $75,977,713 $81,580,200 

1995 2 423,819 414,692 28,192 27,750 

1994 2 136,815 127,508 11,472 14,599 

1993 10 6,147,962 4,881,461 267,595 65,212 

1992 59 44,196,946 34,773,224 3,286,907 3,832,145 

1991 144 78,898,904 65,173,122 9,235,967 9,734,263 

1990 213 129,662,498 98,963,962 16,062,552 19,257,446 

19894 318 134,519,630 113,168,009 47,085,028 48,648,785 

1

Beginning in 1989 through July 1, 1995, all thrift closings were the responsibility of the Resolution Trust Corporation (RTC). Since the RTC was 

terminated on December 31, 1995, and all assets and liabilities transferred to the FSLIC Resolution Fund (FRF), all the results of the thrift closing 

activity from 1989 through 1995 are now reflected on FRF’s books. Year is the year of failure, not the year of resolution.

2

The estimated losses represent the projected loss at the fund level from receiverships for unreimbursed subrogated claims of the FRF and unpaid 

advances to receiverships from the FRF.

3

The Loss to Funds represents the total resolution cost of the failed thrifts in the FRF-RTC fund, which includes corporate revenue and expense items 

such as interest expense on Federal Financing Bank debt, interest expense on escrowed funds, and interest revenue on advances to receiverships, 

in addition to the estimated losses for receiverships.

4

Total for 1989 excludes nine failures of the former FSLIC.
APPENDICES 123

FDIC- INSURED INSTITUTIONS CLOSED DURING 2013

Dollars in Thousands

Codes for Bank Class:

NM = State-chartered bank that is not a member 

of the Federal Reserve System

N = National Bank

SB = Savings Bank

SI = Stock and Mutual 

Savings Bank

SM = State-chartered bank that is a 

member of the Federal Reserve 

System

SA = Savings Association

Name and Location

Bank 

Class

Number

of 

Deposit 

Accounts

Total 

Assets1

Total 

Deposits1

Insured 

Deposit Funding 

and Other 

Disbursements

Estimated 

Loss to 

the DIF2

Date of 

Closing 

or 

Acquisition

Receiver/Assuming 

Bank and Location

Purchase and Assumption - All Deposits

Sunrise Bank

Valdosta, GA

NM 2,469 $60,793 $57,775 $60,695 $16,119 05/10/13 Synovus Bank

Columbus, GA

Community 

South Bank

Parsons, TN

NM 18,041 $386,908 $377,672 $367,166 $72,494 08/23/13 CB&S Bank, Inc.

Russellville, AL

Whole Bank Purchase and Assumption - All Deposits

Westside 

Community Bank

University Place, WA

NM 3,258 $91,935 $91,879 $94,131 $26,534 01/11/13 Sunwest Bank

Irvine, CA

1st Regents Bank

Andover, MN

NM 1,376 $49,626 $49,147 $48,853 $16,466 01/18/13 First Minnesota 

Bank

Minnetoka, MN

Covenant Bank

Chicago, IL

NM 3,673 $58,422 $54,202 $55,140 $21,756 02/15/13 Liberty Bank and 

Trust Company

New Orleans, LA

Frontier Bank

LaGrange, GA

NM 13,271 $258,840 $224,108 $215,689 $58,265 03/08/13 HeritageBank 

of the South

Albany, GA

Gold Canyon Bank

Gold Canyon, AZ

SM 1,370 $42,125 $41,728 $43,172 $11,080 04/05/13 First Scottsdale 

Bank, National 

Association

Scottsdale, AZ

Chipola Community 

Bank

Marianna, FL

NM 1,567 $37,471 $37,067 $37,490 $10,348 04/19/13 First Federal 

Bank of Florida

Lake City, FL

First Federal Bank

Lexington, KY

SA 5,017 $92,982 $87,196 $89,003 $10,477 04/19/13 Your Community 

Bank

New Albany, IN

Heritage Bank 

of North Florida

Orange Park, FL

NM 2,692 $103,960 $106,348 $105,923 $26,495 04/19/13 FirstAtlantic Bank

Jacksonville, FL

Douglas County 

Bank

Douglasville, GA

NM 15,310 $317,288 $315,326 $308,912 $91,392 04/26/13 Hamilton State Bank

Hoschton, GA
ANNUAL REPORT 2013

124 APPENDICES

FDIC- INSURED INSTITUTIONS CLOSED DURING 2013 (continued)

Dollars in Thousands

Codes for Bank Class:

NM = State-chartered bank that is not a member 

of the Federal Reserve System

N = National Bank

SB = Savings Bank

SI = Stock and Mutual 

Savings Bank

SM = State-chartered bank that is a 

member of the Federal Reserve 

System

SA = Savings Association

Name and Location

Bank 

Class

Number

of 

Deposit 

Accounts

Total 

Assets1

Total 

Deposits1

Insured 

Deposit Funding 

and Other 

Disbursements

Estimated 

Loss to 

the DIF2

Date of 

Closing 

or 

Acquisition

Receiver/Assuming 

Bank and Location

Parkway Bank

Lenoir, NC

NM 6,035 $109,642 $104,709 $108,519 $18,623 04/26/13 CertusBank, 

National 

Association

Easley, SC

Pisgah Community 

Bank

Asheville, NC

NM 587 $21,880 $21,246 $22,975 $9,708 05/10/13 Capital Bank, 

National 

Association

Rockville, MD

Central Arizona Bank

Scottsdale, AZ

NM 1,006 $31,550 $30,822 $28,922 $8,645 05/14/13 Western 

State Bank

Devils Lake, ND

Banks of Wisconsin 

d/b/a 

Bank of Kenosha

Kenosha, WI

NM 7,008 $134,024 $127,590 $127,946 $19,763 05/31/13 North Shore 

Bank, FSB

Brookfield, WI

1st Commerce Bank

North Las Vegas, NV

NM 242 $20,152 $19,579 $21,891 $9,880 06/06/13 Plaza Bank

Irvine, CA

Mountain 

National Bank

Sevierville, TN

N 16,725 $437,282 $373,366 $376,858 $27,106 06/07/13 First Tennessee 

Bank, National 

Association

Memphis, TN

First Community 

Bank of 

Southwest Florida

Fort Myers, FL

NM 9,715 $247,315 $243,618 $239,309 $27,077 08/02/13 C1 Bank

Saint Petersburg, FL

Bank of Wausau

Wausau, WI

NM 1,465 $43,564 $40,663 $44,292 $13,500 08/09/13 Nicolet 

National Bank

Green Bay, WI

Sunrise Bank 

of Arizona

Phoenix, AZ

NM 5,430 $202,179 $196,924 $188,521 $17,049 08/23/13 First Fidelity 

Bank, National 

Association

Oklahoma City, OK

First National Bank

Edinburg, TX

N 89,508 $3,085,764 $2,338,335 $2,225,494 $637,523 09/13/13 PlainsCapital Bank

Dallas, TX

Bank of Jackson 

County

Graceville, FL

NM 2,491 $24,724 $24,591 $25,405 $5,074 10/30/13 First Federal 

Bank of Florida

Lake City, FL
APPENDICES 125

FDIC- INSURED INSTITUTIONS CLOSED DURING 2013 (continued)

Dollars in Thousands

Codes for Bank Class:

NM = State-chartered bank that is not a member 

of the Federal Reserve System

N = National Bank

SB = Savings Bank

SI = Stock and Mutual 

Savings Bank

SM = State-chartered bank that is a 

member of the Federal Reserve 

System

SA = Savings Association

Name and Location

Bank 

Class

Number

of 

Deposit 

Accounts

Total 

Assets1

Total 

Deposits1

Insured 

Deposit Funding 

and Other 

Disbursements

Estimated 

Loss to 

the DIF2

Date of 

Closing 

or 

Acquisition

Receiver/Assuming 

Bank and Location

Texas Community 

Bank, National 

Association

The Woodlands, TX

N 2,160 $159,257 $142,640 $118,657 $10,765 12/13/13 Spirit of Texas 

Bank, SSB

College Station, TX

Insured Deposit Payoff

The Community’s 

Bank

Bridgeport, CT

NM 1,049 $26,368 $25,715 $38,002 $7,800 9/13/13 Federal Deposit 

Insurance 

Corporation

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

2 Estimated losses are as of 12/31/13. Estimated losses are routinely adjusted with updated information from new appraisals and asset sales, 

which ultimately affect the asset values and projected recoveries. Represents the estimated loss to the DIF from deposit insurance obligations. 
ANNUAL REPORT 2013

126 APPENDICES

RECOVERIES AND LOSSES BY THE DEPOSIT INSURANCE FUND ON DISBURSEMENTS 

FOR THE PROTECTION OF DEPOSITORS, 1934 - 2013

Dollars in Thousands

Bank and Thrift Failures1

Year2

Number 

of Banks/

Thrifts

Total 

Assets3

Total 

Deposits3

Insured Deposit 

Funding 

and Other 

Disbursements Recoveries

Estimated 

Additional 

Recoveries

Estimated 

Losses

2,584 $931,664,951 $700,668,975 $577,938,885 $399,685,827 $59,761,118 $118,491,940

2013 24 6,044,051 5,132,246 4,992,965 0 3,819,026 1,173,939 

2012 51 11,617,348 11,009,630 11,074,800 1,201,587 7,069,516 2,803,697 

2011 92 34,922,997 31,071,862 31,782,065 2,617,454 21,479,949 7,571,752 

20104 157 92,084,987 78,290,185 82,240,983 51,181,613 10,097,143 20,962,227 

20094 140 169,709,160 137,783,121 136,331,221 88,529,446 14,462,095 33,339,680 

20084 25 371,945,480 234,321,715 205,495,557 183,834,032 2,229,312 19,432,213 

2007 3 2,614,928 2,424,187 1,918,810 1,369,413 380,982 168,415 

2006 0 0 0 0 0 0 0 

2005 0 0 0 0 0 0 0 

2004 4 170,099 156,733 138,971 134,978 76 3,917 

2003 3 947,317 901,978 883,772 812,933 8,192 62,647 

2002 11 2,872,720 2,512,834 2,127,249 1,704,030 7,655 415,564 

2001 4 1,821,760 1,661,214 1,605,612 1,128,577 184,384 292,651 

2000 7 410,160 342,584 297,313 265,175 0 32,138 

1999 8 1,592,189 1,320,573 1,307,442 711,758 5,674 590,010 

1998 3 290,238 260,675 292,691 58,248 11,752 222,691 

1997 1 27,923 27,511 25,546 20,520 0 5,026 

1996 6 232,634 230,390 201,533 140,918 0 60,615 

1995 6 802,124 776,387 609,043 524,571 0 84,472 

1994 13 1,463,874 1,397,018 1,224,769 1,045,718 0 179,051 

1993 41 3,828,939 3,509,341 3,841,658 3,209,012 0 632,646 

1992 120 45,357,237 39,921,310 14,541,316 10,866,760 543 3,674,013 

1991 124 64,556,512 52,972,034 21,499,567 15,500,130 4,819 5,994,618 

1990 168 16,923,462 15,124,454 10,812,484 8,040,995 0 2,771,489 

1989 206 28,930,572 24,152,468 11,443,281 5,247,995 0 6,195,286 

1988 200 38,402,475 26,524,014 10,432,655 5,055,158 0 5,377,497 

1987 184 6,928,889 6,599,180 4,876,994 3,014,502 0 1,862,492 

1986 138 7,356,544 6,638,903 4,632,121 2,949,583 0 1,682,538 

1985 116 3,090,897 2,889,801 2,154,955 1,506,776 0 648,179 

1984 78 2,962,179 2,665,797 2,165,036 1,641,157 0 523,879 

1983 44 3,580,132 2,832,184 3,042,392 1,973,037 0 1,069,355 

1982 32 1,213,316 1,056,483 545,612 419,825 0 125,787 

1981 7 108,749 100,154 114,944 105,956 0 8,988 

1980 10 239,316 219,890 152,355 121,675 0 30,680 

1934 - 1979 558 8,615,743 5,842,119 5,133,173 4,752,295 0 380,878 
APPENDICES 127

RECOVERIES AND LOSSES BY THE DEPOSIT INSURANCE FUND ON DISBURSEMENTS 

FOR THE PROTECTION OF DEPOSITORS, 1934 - 2013 (continued)

Dollars in Thousands

Assistance Transactions

Year2

Number 

of Banks/

Thrifts

Total 

Assets3

Total 

Deposits3

Insured Deposit 

Funding 

and Other 

Disbursements Recoveries

Estimated 

Additional 

Recoveries

Estimated 

Losses

154 $3,317,099,253 $1,442,173,417 $11,630,356 $6,199,875 $0 $5,430,481 

2013 0 0 0 0 0 0 0 

2012 0 0 0 0 0 0 0 

2011 0 0 0 0 0 0 0 

2010 0 0 0 0 0 0 0 

20095 8 1,917,482,183 1,090,318,282 0 0 0 0 

20085 5 1,306,041,994 280,806,966 0 0 0 0 

2007 0 0 0 0 0 0 0 

2006 0 0 0 0 0 0 0 

2005 0 0 0 0 0 0 0 

2004 0 0 0 0 0 0 0 

2003 0 0 0 0 0 0 0 

2002 0 0 0 0 0 0 0 

2001 0 0 0 0 0 0 0 

2000 0 0 0 0 0 0 0 

1999 0 0 0 0 0 0 0 

1998 0 0 0 0 0 0 0 

1997 0 0 0 0 0 0 0 

1996 0 0 0 0 0 0 0 

1995 0 0 0 0 0 0 0 

1994 0 0 0 0 0 0 0 

1993 0 0 0 0 0 0 0 

1992 2 33,831 33,117 1,486 1,236 0 250 

1991 3 78,524 75,720 6,117 3,093 0 3,024 

1990 1 14,206 14,628 4,935 2,597 0 2,338 

1989 1 4,438 6,396 2,548 252 0 2,296 

1988 80 15,493,939 11,793,702 1,730,351 189,709 0 1,540,642 

1987 19 2,478,124 2,275,642 160,877 713 0 160,164 

1986 7 712,558 585,248 158,848 65,669 0 93,179 

1985 4 5,886,381 5,580,359 765,732 406,676 0 359,056 

1984 2 40,470,332 29,088,247 5,531,179 4,414,904 0 1,116,275 

1983 4 3,611,549 3,011,406 764,690 427,007 0 337,683 
ANNUAL REPORT 2013

128 APPENDICES

RECOVERIES AND LOSSES BY THE DEPOSIT INSURANCE FUND ON DISBURSEMENTS 

FOR THE PROTECTION OF DEPOSITORS, 1934 - 2013 (continued)

Dollars in Thousands

Assistance Transactions

Year2

Number 

of Banks/

Thrifts

Total 

Assets3

Total 

Deposits3

Insured Deposit 

Funding 

and Other 

Disbursements Recoveries

Estimated 

Additional 

Recoveries

Estimated 

Losses

1982 10 10,509,286 9,118,382 1,729,538 686,754 0 1,042,784 

1981 3 4,838,612 3,914,268 774,055 1,265 0 772,790 

1980 1 7,953,042 5,001,755 0 0 0 0 

1934 - 1979 4 1,490,254 549,299 0 0 0 0

1 Institutions for which the FDIC is appointed receiver, including deposit payoff, insured deposit transfer, and deposit assumption cases.

2 For 1990 through 2005, amounts represent the sum of BIF and SAIF failures (excluding those handled by the RTC); prior to 1990, figures are only 

for the BIF. After 1995, all thrift closings became the responsibility of the FDIC and amounts are reflected in the SAIF. For 2006 to 2013, figures are 

for the DIF.

3 Assets and deposit data are based on the last Call Report or TFR filed before failure.

4 Includes amounts related to transaction account coverage under the Transaction Account Guarantee Program (TAG). The estimated losses as of 

12/31/13 for TAG accounts in 2010, 2009, and 2008 are $490 million, $1,408 million, and $15 million, respectively.

5 Includes institutions where assistance was provided under a systemic risk determination. Any costs that exceed the amounts estimated under the 

least cost resolution requirement would be recovered through a special assessment on all FDIC-insured institutions.
APPENDICES 129

B. OVERVIEW OF THE INDUSTRY

The 6,812 FDIC-insured commercial banks and savings 

institutions that filed financial results for full year 2013 

reported net income of $154.7 billion, an increase of 9.6 

percent compared to 2012. This is the fourth consecutive 

year that industry earnings have registered a year-overyear increase. The improvement in earnings was primarily 

attributable to lower expenses for loan-loss provisions, 

reduced noninterest expenses, and increased noninterest 

income. More than half of all institutions—54.2 percent—

reported year-over-year increases in net income, and the 

percentage of institutions with negative net income for the 

year fell to 7.8 percent, down from 11 percent a year earlier.

The average return on assets (ROA) was 1.07 percent, up 

from 1.00 percent in 2012. This is the highest annual ROA 

for the industry since 2006. However, fewer than half of 

insured institutions—45.3 percent—had higher ROAs in 

2013 than in 2012. Insured institutions set aside $32.1 

billion in provisions for loan and lease losses during 2013, 

a decline of $25.7 billion (44.4 percent) compared to 2012. 

This is the smallest annual loss provision since 2006. The 

industry’s total noninterest expenses fell by $4.5 billion 

(1.1 percent), as itemized litigation expenses declined by 

$4.5 billion. Noninterest income rose by $3.2 billion (1.3 

percent), as trading revenue was $4.3 billion (23.7 percent) 

higher, servicing fee income was up by $3.9 billion (27.5 

percent), and income from trust activities rose by $2.2 

billion (7.7 percent). Noninterest income from changes in 

the fair values of financial instruments accounted for under 

a fair value option was $6.5 billion lower than in 2012. 

Realized gains on securities were $5.2 billion (53.7 percent) 

lower, as higher interest rates in 2013 reduced the market 

values of banks’ securities portfolios.

 A challenging interest-rate environment contributed to a 

decline in the industry’s net interest income in 2013. Net 

interest income registered a third consecutive annual 

decline, falling by $3.7 billion (0.9 percent), as interest 

income declined more rapidly than interest expense. Total 

interest income was $16 billion (3.3 percent) lower than in 

2012, even though average interest-earning asset balances 

were $487.3 billion (4 percent) higher, as older, higher-yield 

assets matured and were replaced by lower-yielding current 

investments. The average net interest margin fell from 3.42 

percent in 2012 to 3.26 percent, the lowest annual average 

since 2008. 

Indicators of asset quality continued to improve in 

2013. In the twelve months ended December 31, total 

noncurrent loans and leases—those that were 90 days 

or more past due or in nonaccrual status—declined 

by $69.7 billion (25.2 percent). Loans secured by real 

estate properties accounted for the largest share of the 

reduction in noncurrent loans ($64.9 billion). Noncurrent 

1-4 family residential real estate loans fell by $44.5 billion 

(23.2 percent), noncurrent nonfarm nonresidential real 

estate loans declined by $9.5 billion (31.1 percent), and 

noncurrent real estate construction loans fell by $8.6 

billion (50.6 percent). Noncurrent balances in all other 

major loan categories declined, led by loans to commercial 

and industrial (C&I) borrowers (down $3.3 billion, or 24.8 

percent). 

Net charge-offs of loans and leases (NCOs) totaled $53.2 

billion in 2013, a decline of $29 billion (35.3 percent) 

compared to 2012. Real estate loans secured by 1-4 family 

residential properties registered the largest year-over-year 

decline, with NCOs falling by $15.9 billion (51.7 percent). 

Net charge-offs of credit card loans were $3.2 billion 

(12.5 percent) lower, while net charge-offs of nonfarm 

nonresidential real estate loans declined by $3 billion 

(51.4 percent), and NCOs of real estate construction and 

development loans were $2.8 billion (73 percent) lower than 

in 2012. NCOs in all other major loan categories also posted 

significant declines. At the end of 2013, there were 467 

institutions on the FDIC’s “Problem List,” down from 651 

“problem” institutions a year earlier.

Asset growth remained modest in 2013. During the 

12 months ended December 31, total assets of insured 

institutions increased by $272.1 billion (1.9 percent). Loans 

and leases accounted for more than half of the increase 

in total assets, rising by $197.3 billion (2.6 percent). C&I 

loans increased by $101.5 billion (6.8 percent), nonfarm 

nonresidential real estate loans rose by $36.1 billion 

(3.4 percent), and auto loans increased by $33.2 billion 
ANNUAL REPORT 2013

130 APPENDICES

(10.4 percent). In contrast, home equity lines of credit fell 

by $44 billion (7.9 percent), and other real estate loans 

secured by 1-4 family residential properties declined by 

$63.5 billion (3.4 percent). 

Growth in deposits outpaced the increase in total assets. In 

the 12 months ended December 31, total deposits of insured 

institutions increased by $374.7 billion (3.5 percent). 

Deposits in domestic offices rose by $343.9 billion, 

(3.6 percent), while foreign office deposits increased by 

$30.7 billion (2.2 percent). Much of the increase in 

domestic deposits occurred in balances in largedenomination accounts. Deposits in accounts with 

denominations greater than $250,000 increased by 

$269.4 billion, (5.9 percent). Nondeposit liabilities declined 

by $128.2 billion (6.4 percent), while equity capital rose by 

$29.8 billion (1.8 percent).
APPENDICES 131

C. MORE ABOUT THE FDIC

FDIC BOARD OF DIRECTORS

Martin J. Gruenberg

Martin J. Gruenberg is the 20th Chairman of the FDIC, 

receiving Senate confirmation on November 15, 2012, for 

a five-year term. Mr. Gruenberg has served on the FDIC 

Board of Directors since August 22, 2005, including as 

Acting Chairman from July 9, 2011, to November 15, 2012, 

and also from November 16, 2005, to June 26, 2006.

Mr. Gruenberg joined the FDIC Board after broad 

congressional experience in the financial services and 

regulatory areas. He served as Senior Counsel to Senator 

Paul S. Sarbanes (D-MD) on the staff of the Senate 

Committee on Banking, Housing, and Urban Affairs from 

1993 to 2005. Mr. Gruenberg advised the Senator on issues 

of domestic and international financial regulation, monetary 

policy, and trade. He also served as Staff Director of the 

Banking Committee’s Subcommittee on International 

Finance and Monetary Policy from 1987 to 1992. Major 

legislation in which Mr. Gruenberg played an active role 

during his service on the Committee includes the Financial 

Institutions Reform, Recovery, and Enforcement Act of 

1989 (FIRREA); the Federal Deposit Insurance Corporation 

Improvement Act of 1991 (FDICIA); the Gramm-LeachBliley Act; and the Sarbanes-Oxley Act of 2002.

Mr. Gruenberg served as Chairman of the Executive Council 

and President of the International Association of Deposit 

Insurers (IADI) from November 2007 to November 2012.

Seated (left to right): Thomas M. Hoenig, Martin J. Gruenberg, Jeremiah O. Norton 

Standing (left to right): Thomas J. Curry, Richard Cordray
ANNUAL REPORT 2013

132 APPENDICES

Mr. Gruenberg holds a J.D. from Case Western Reserve Law 

School and an A.B. from Princeton University, Woodrow 

Wilson School of Public and International Affairs. 

Thomas M. Hoenig

Thomas M. Hoenig was confirmed by the Senate as Vice 

Chairman of the FDIC on November 15, 2012. He joined 

the FDIC on April 16, 2012, as a member of the Board 

of Directors of the FDIC for a six-year term. He is also 

a member of the Executive Board of the International 

Association of Deposit Insurers.

Prior to serving on the FDIC Board, Mr. Hoenig was the 

President of the Federal Reserve Bank of Kansas City and 

a member of the Federal Reserve System’s Federal Open 

Market Committee from 1991 to 2011.

Mr. Hoenig was with the Federal Reserve for 38 years, 

beginning as an economist, and then as a senior officer in 

banking supervision during the U.S. banking crisis of the 

1980s. In 1986, he led the Kansas City Federal Reserve 

Bank’s Division of Bank Supervision and Structure, 

directing the oversight of more than 1,000 banks and bank 

holding companies with assets ranging from less than $100 

million to $20 billion. He became President of the Kansas 

City Federal Reserve Bank on October 1, 1991.

Mr. Hoenig is a native of Fort Madison, Iowa, and received a 

doctorate in economics from Iowa State University.

Jeremiah O. Norton

Jeremiah O. Norton was sworn in on April 16, 2012, as a 

member of the FDIC Board of Directors for the remainder 

of a term expiring July 15, 2013.

Prior to joining the FDIC’s Board, Mr. Norton was an 

Executive Director at J.P. Morgan Securities LLC, in New 

York, New York.

Mr. Norton was in government for a number of years 

before joining the FDIC Board, most recently as the Deputy 

Assistant Secretary for Financial Institutions Policy at 

the U.S. Treasury Department. Mr. Norton also was a 

Legislative Assistant and professional staff member for U.S. 

Representative Edward R. Royce.

Mr. Norton received a J.D. from the Georgetown University 

Law Center and an A.B. in economics from Duke University.

Thomas J. Curry

Thomas J. Curry was sworn in as the 30th Comptroller of 

the Currency on April 9, 2012.

The Comptroller of the Currency is the administrator of 

national banks and federal savings associations, and chief 

officer of the Office of the Comptroller of the Currency 

(OCC). The OCC supervises more than 2,000 national 

banks and federal savings associations and about 50 federal 

branches and agencies of foreign banks in the United States. 

These institutions comprise nearly two-thirds of the assets 

of the commercial banking system. The Comptroller also is 

a Director of NeighborWorks® America.

On April 1, 2013, Mr. Curry was named Chairman of the 

Federal Financial Institutions Examination Council (FFIEC) 

for a two-year term. Comptroller Curry is the 21st FFIEC 

Chairman.

Prior to becoming Comptroller of the Currency, Mr. Curry 

served as a Director of the FDIC Board since January 2004, 

and as the Chairman of the NeighborWorks® America 

Board of Directors.

Prior to joining the FDIC’s Board of Directors, Mr. 

Curry served five Massachusetts Governors as the 

Commonwealth’s Commissioner of Banks from 1990 to 1991 

and from 1995 to 2003. He served as Acting Commissioner 

from February 1994 to June 1995. He previously served 

as First Deputy Commissioner and Assistant General 

Counsel within the Massachusetts Division of Banks. He 

entered state government in 1982 as an attorney with the 

Massachusetts’ Secretary of State’s Office.

Mr. Curry served as the Chairman of the Conference of State 

Bank Supervisors from 2000 to 2001, and served two terms 

on the State Liaison Committee of the Federal Financial 

Institutions Examination Council, including a term as 

Committee Chairman.

He is a graduate of Manhattan College (summa cum laude), 

where he was elected to Phi Beta Kappa. He received his 

law degree from the New England School of Law. 
APPENDICES 133

Richard Cordray 

Richard Cordray serves as the first Director of the 

Consumer Financial Protection Bureau. He previously led 

the Bureau’s Enforcement Division.

Prior to joining the Bureau, Mr. Cordray served on the 

front lines of consumer protection as Ohio’s Attorney 

General. Mr. Cordray recovered more than $2 billion for 

Ohio’s retirees, investors, and business owners, and took 

major steps to help protect its consumers from fraudulent 

foreclosures and financial predators. In 2010, his office 

responded to a record number of consumer complaints, but 

Mr. Cordray went further and opened that process for the 

first time to small businesses and nonprofit organizations 

to ensure protections for even more Ohioans. To recognize 

his work on behalf of consumers as Attorney General, the 

Better Business Bureau presented Mr. Cordray with an 

award for promoting an ethical marketplace.

Mr. Cordray also served as Ohio Treasurer and Franklin 

County Treasurer, two elected positions in which he led 

state and county banking, investment, debt, and financing 

activities. As Ohio Treasurer, he resurrected a defunct 

economic development program that provides low-interest 

loan assistance to small businesses to create jobs, 

re-launched the original concept as GrowNOW, and pumped 

hundreds of millions of dollars into access for credit to 

small businesses. Mr. Cordray simultaneously created a 

Bankers Advisory Council to share ideas about the program 

with community bankers across Ohio.

Earlier in his career, Mr. Cordray was an adjunct professor 

at the Ohio State University College of Law, served as a 

State Representative for the 33rd Ohio House District, was 

the first Solicitor General in Ohio’s history, and was a sole 

practitioner and Counsel to Kirkland & Ellis. Mr. Cordray 

has argued seven cases before the United States Supreme 

Court, by special appointment of both the Clinton and 

Bush Justice Departments. He is a graduate of Michigan 

State University, Oxford University, and the University of 

Chicago Law School. Mr. Cordray was Editor-in-Chief of the 

University of Chicago Law Review and later clerked for U.S. 

Supreme Court Justices Byron White and Anthony Kennedy.

Mr. Cordray lives in Grove City, Ohio, with his wife 

Peggy—a Professor at Capital University Law School in 

Columbus—and twin children Danny and Holly.
ANNUAL REPORT 2013

134 APPENDICES FDIC ORGANIZATION CHART/OFFICIALS BOARD OF DIRECTORS FEDERAL DEPOSIT INSURANCE CORPORATION Martin J. Gruenberg FDIC

Chairman

Jeremiah O. Norton

FDIC

Board Member

Thomas M. Hoenig

FDIC

Vice Chairman, Board Member

Thomas J. Curry

OCC

Board Member

Richard Cordray

CFPB

Board Member

DEPUTY TO THE CHAIRMAN 

AND CHIEF OPERATING OFFICER,

CHIEF OF STAFF

Barbara A. Ryan

DEPUTY TO THE CHAIRMAN 

AND CHIEF FINANCIAL OFFICER

Steven O. App

SENIOR ADVISOR

INTERNATIONAL 

RESOLUTION POLICY

David S. Hoelscher

OFFICE OF 

COMMUNICATIONS

CHIEF RISK OFFICER

Stephen A. Quick

SPECIAL ADVISOR FOR

SUPERVISORY MATTERS

Jason C. Cave

OFFICE OF MINORITY AND 

WOMEN INCLUSION

E. Melodee Brooks

Acting Director

OFFICE OF 

LEGISLATIVE AFFAIRS

Eric J. Spitler

Director

OFFICE OF 

THE OMBUDSMAN

Cottrell L. Webster

Ombudsman

OFFICE OF INSPECTOR GENERAL

Fred W. Gibson

Acting Inspector General

DEPUTY TO THE CHAIRMAN

FOR COMMUNICATIONS

Andrew S. Gray

DEPUTY TO THE CHAIRMAN

Kymberly K. Copa

DIVISION OF INFORMATION 

TECHOLOGY

CHIEF INFORMATION OFFICER 

AND CHIEF PRIVACY OFFICER

Martin D. Henning

Acting Chief Information 

and Privacy Officer

DIVISION OF RESOLUTION 

AND RECEIVERSHIPS

Bret D. Edwards

Director

LEGAL DIVISION

Richard J. Osterman, Jr.

Acting General Counsel

DIVISION OF INSURANCE 

AND RESEARCH

Diane Ellis

Director

DIVISION OF DEPOSITOR 

AND CONSUMER PROTECTION

Mark E. Pearce

Director

OFFICE OF COMPLEX

FINANCIAL INSTITUTIONS

Arthur J. Murton

Director

DIVISION OF RISK 

MANAGEMENT SUPERVISION

Doreen R. Eberley

Director

DIVISION OF 

ADMINISTRATION

Arleas Upton Kea

Director

DIVISION OF FINANCE

Craig R. Jarvill

Director

Russell G. Pittman

Director

INFORMATION SECURITY

AND PRIVACY STAFF

Christopher J. Farrow

Chief Information 

Security Officer

CORPORATE UNIVERSITY

Suzannah L. Susser

Acting Director

INTERNAL OMBUDSMAN

Robert D. Harris

WRITER-EDITOR

Michele A. Heller
APPENDICES 135

5,078 4,514 4,476 4,532 4,988 6,557 8,150 7,973 7,476

FDIC Year–End Staffing

7,254

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

9,000

6,000

3,000

0

CORPORATE STAFFING 

STAFFING TRENDS 2004-2013

Note: 2008-2013 staffing totals reflect year-end full time equivalent staff. Prior to 2008, staffing totals reflect total employees on-board. 
ANNUAL REPORT 2013

136 APPENDICES

NUMBER OF EMPLOYEES BY DIVISION/OFFICE 2013 AND 2012 (YEAR-END)1

Total Washington Regional/Field

Division or Office: 2013 2012 2013 2012 2013 2012

Division of Risk Management Supervision2 2,814 2,763 207 169 2,608 2,593

Division of Depositor and Consumer Protection 858 848 126 119 732 729

Division of Resolutions and Receiverships 1,284 1,428 166 165 1,118 1,263

Legal Division 678 716 388 384 290 332

Division of Administration 396 403 247 248 149 156

Division of Information Technology3 340 358 264 280 76 78

Corporate University 195 194 184 176 11 18

Division of Insurance and Research3 187 195 143 145 44 51

Division of Finance 176 176 174 174 2 2

Office of Inspector General 117 126 75 81 42 46

Office of Complex Financial Institutions2 74 148 62 87 12 61

Executive Offices4 20 20 20 20 0 0

Executive Support Offices3,5 117 102 107 89 10 13

Total 7,254 7,476 2,161 2,135 5,093 5,341

1 The FDIC reports staffing totals using a full-time equivalent methodology, which is based on an employee’s scheduled work hours. 

Division/Office staffing has been rounded to the nearest whole FTE. Totals may not foot due to rounding.

2 In March 2013, 99 positions were moved from the Office of Complex Financial Institutions to the Division of Risk Management 

Supervision.

3 In September 2013, the Office of the International Agency was merged into the Division of Insurance and Research and the Office of the 

Information Security Privacy Staff (ISPS) was split from the Division of Information Technology.

4 Includes the Offices of the Chairman, Vice Chairman, Director (Appointive), Chief Operating Officer, Chief Financial Officer, Chief 

Information Officer, and External Affairs. 

5 Includes the Offices of the Legislative Affairs, Communications, Ombudsman, Information Security and Privacy Staff, Minority and 

Women Inclusion, and Corporate Risk Management.
APPENDICES 137

SOURCES OF INFORMATION

FDIC Website

www.fdic.gov

A wide range of banking, consumer, and financial 

information is available on the FDIC’s Website. This 

includes the FDIC’s Electronic Deposit Insurance Estimator 

(EDIE), which estimates an individual’s deposit insurance 

coverage; the Institution Directory, which contains 

financial profiles of FDIC-insured institutions; Community 

Reinvestment Act evaluations and ratings for institutions 

supervised by the FDIC; Call Reports, which are banks’ 

reports of condition and income; and Money Smart, a 

training program to help individuals outside the financial 

mainstream enhance their money management skills 

and create positive banking relationships. Readers also 

can access a variety of consumer pamphlets, FDIC press 

releases, speeches, and other updates on the agency’s 

activities, as well as corporate databases and customized 

reports of FDIC and banking industry information. 

FDIC Call Center

Phone: 877-275-3342 (877-ASK-FDIC) 

703-562-2222

Hearing Impaired: 800-925-4618 

 703-562-2289

The FDIC Call Center in Washington, DC, is the primary 

telephone point of contact for general questions from the 

banking community, the public, and FDIC employees. 

The Call Center directly, or in concert with other FDIC 

subject-matter experts, responds to questions about deposit 

insurance and other consumer issues and concerns, as well 

as questions about FDIC programs and activities. The Call 

Center also refers callers to other federal and state agencies 

as needed. Hours of operation are 8:00 a.m. to 8:00 p.m., 

Eastern Time, Monday – Friday, and 9:00 a.m. to 5:00 p.m., 

Saturday – Sunday. Recorded information about deposit 

insurance and other topics is available 24 hours a day at the 

same telephone number.

As a customer service, the FDIC Call Center has many 

bilingual Spanish agents on staff and has access to a 

translation service able to assist with over 40 different 

languages.

Public Information Center

3501 Fairfax Drive

Room E-1021

Arlington, VA 22226

Phone: 877-275-3342 (877-ASK-FDIC),

703-562-2200

Fax: 703-562-2296

FDIC Online Catalog: https://vcart.velocitypayment.com/

fdic/

E-mail: publicinfo@fdic.gov

Publications such as FDIC Quarterly and Consumer News, 

and a variety of deposit insurance and consumer pamphlets 

are available at www.fdic.gov or may be ordered in hard 

copy through the FDIC online catalog. Other information, 

press releases, speeches and congressional testimony, 

directives to financial institutions, policy manuals, and FDIC 

documents are available on request through the Public 

Information Center. Hours of operation are 9:00 a.m. to 4:00 

p.m., Eastern Time, Monday – Friday.

Office of the Ombudsman

3501 Fairfax Drive

Room E-2022

Arlington, VA 22226

Phone: 877-275-3342 (877-ASK-FDIC)

Fax: 703-562-6057

E-mail: ombudsman@fdic.gov

The Office of the Ombudsman (OO) is an independent, 

neutral, and confidential resource and liaison for the 

banking industry and the general public. The OO responds 

to inquiries about the FDIC in a fair, impartial, and timely 

manner. It researches questions and fields complaints 

from bankers and bank customers. OO representatives are 

present at all bank closings to provide accurate information 

to bank customers, the media, bank employees, and the 

general public. The OO also recommends ways to improve 

FDIC operations, regulations, and customer service.
ANNUAL REPORT 2013

138 APPENDICES

REGIONAL AND AREA OFFICES

Atlanta Regional Office Chicago Regional Office

10 Tenth Street, NE 300 South Riverside Plaza

Suite 800 Suite 1700

Atlanta, Georgia 30309 Chicago, Illinois 60606

(678) 916-2200 (312) 382-6000

Alabama Illinois

Florida Indiana

Georgia Kentucky

North Carolina Michigan

South Carolina Ohio

Virginia Wisconsin

West Virginia

Dallas Regional Office Memphis Area Office

1601 Bryan Street 6060 Primacy Parkway

Dallas, Texas 75201 Suite 300

(214) 754-0098 Memphis, Tennessee 38119

(901) 685-1603

Colorado Arkansas

New Mexico Louisiana

Oklahoma Mississippi

Texas Tennessee

Kansas City Regional Office New York Regional Office

1100 Walnut Street 350 Fifth Avenue

Suite 2100 Suite 1200

Kansas City, Missouri 64106 New York, New York 10118

(816) 234-8000 (917) 320-2500

Iowa Delaware

Kansas District of Columbia

Minnesota Maryland

Missouri New Jersey

Nebraska New York

North Dakota Pennsylvania

South Dakota Puerto Rico

Virgin Islands
APPENDICES 139

Boston Area Office San Francisco Regional Office

15 Braintree Hill Office Park 25 Jessie Street at Ecker Square

Suite 100 Suite 2300

Braintree, Massachusetts 02184 San Francisco, California 94105

(781) 794-5500 (415) 546-0160

Connecticut Alaska

Maine Arizona

Massachusetts California

New Hampshire Guam

Rhode Island Hawaii

Vermont Idaho

Montana

Nevada

Oregon

Utah

Washington

Wyoming
ANNUAL REPORT 2013

140 APPENDICES

D. OFFICE OF INSPECTOR GENERAL’S 

ASSESSMENT OF THE MANAGEMENT 

AND PERFORMANCE CHALLENGES 

FACING THE FDIC 

Under the Reports Consolidation Act of 2000, the Office 

of Inspector General (OIG) identifies the management and 

performance challenges facing the FDIC and provides its 

assessment to the FDIC for inclusion in the FDIC’s annual 

performance and accountability report. In doing so, we 

keep in mind the FDIC’s overall program and operational 

responsibilities; financial industry, economic, and 

technological conditions and trends; areas of congressional 

interest and concern; relevant laws and regulations; the 

Chairman’s priorities and corresponding corporate goals; 

and ongoing activities to address the issues involved. The 

OIG believes that the FDIC faces challenges in the areas 

listed below, as it continues to operate in a post-crisis 

environment. 

Carrying Out Systemic Resolution Responsibilities

The Dodd-Frank Wall Street Reform and Consumer 

Protection Act (the Dodd-Frank Act) created a 

comprehensive new regulatory and resolution framework 

designed to avoid the severe consequences of financial 

instability. Title I of the Dodd-Frank Act provides tools for 

regulators to impose enhanced supervision and prudential 

standards on systemically important financial institutions 

(SIFIs). Title II provides the FDIC with a new orderly 

liquidation authority for SIFIs, subject to a systemic risk 

determination by statutorily-designated regulators. 

The FDIC has made significant progress over the past 

three years toward implementing its systemic resolution 

authorities under the Dodd-Frank Act. Among other things, 

the FDIC has issued a joint regulation and met established 

time frames for completing reviews of resolution plans 

submitted by covered financial companies, entered into 

agreements with certain foreign regulatory authorities to 

promote cross-border cooperation, and developed a singlepoint-of-entry resolution strategy as a preferred approach 

for the orderly liquidation of covered financial companies 

under certain circumstances.

While these accomplishments are notable, challenges 

remain in establishing a robust corporate-wide capability 

for this critical responsibility. In the coming months, the 

FDIC will be working to enhance its strategic planning 

efforts, strengthen coordination among the various FDIC 

divisions involved in the resolution activities, and build out 

the Office of Complex Financial Institutions’ infrastructure 

to support systemic resolution activities. 

Strengthening IT Security and Governance

Key to achieving the FDIC’s mission of maintaining stability 

and public confidence in the nation’s financial system is 

safeguarding the sensitive information, including personally 

identifiable information that the FDIC collects and manages 

in its role as federal deposit insurer and regulator of 

state non-member financial institutions. Further, as an 

employer, an acquirer of services, and a receiver for failed 

institutions, the FDIC obtains considerable amounts of 

sensitive information from its employees, contractors, 

and failed institutions. Increasingly sophisticated security 

risks and global connectivity have resulted in both internal 

and external risks to that sensitive information. Internal 

risks include errors and fraudulent or malevolent acts by 

employees or contractors working within the organization. 

External threats include a growing number of cyber-based 

attacks that can come from a variety of sources, such as 

hackers, criminals, foreign nations, terrorists, and other 

adversarial groups. Such threats underscore the importance 

of a strong, enterprise-wide information security program.

During 2013, the FDIC Chairman announced significant 

changes to the FDIC’s information security governance 

structure. These changes were intended to address current 

and emerging risks in the IT and information security 

environments. Among these changes, in April, the FDIC 

established the IT/Cyber Security Oversight Group to 

provide a senior-level forum for assessing cybersecurity 

threats and developments impacting the FDIC and the 

banking industry. In July 2013, the Chairman separated the 

roles and responsibilities of the Chief Information Officer 

(CIO) and Director, Division of Information Technology. 

Both positions had previously been held by the same 

individual. The position of CIO now reports directly to the 

FDIC Chairman. The CIO has broad strategic responsibility 

of IT governance, investments, program management, and 

information security. The CIO also serves as the FDIC’s 

Chief Privacy Officer. Finally, the Chief Information 

Security Officer (CISO) and related staff, who had formerly 
APPENDICES 141

reported to the Director of the Division of Information 

Technology, now report to the CIO. The purpose of this 

realignment was to ensure that the CISO has the ability to 

provide an independent perspective on security matters 

to the CIO and that the CIO has the authority and primary 

responsibility to implement an agency-wide information 

security program. 

During 2014, a challenging priority for the FDIC will be 

to continue to adapt to these organizational changes 

as the new roles and responsibilities become ingrained 

in a changing environment and to ensure effective 

communication and collaboration among all parties 

involved in ensuring a robust and secure IT operating 

environment.

Maintaining Effective Supervision and 

Preserving Community Banking

The FDIC’s supervision program promotes the safety 

and soundness of FDIC-supervised IDIs. The FDIC is the 

primary federal regulator for 4,316 FDIC-insured, statechartered institutions that are not members of the Federal 

Reserve Board. As such, the FDIC is the lead federal 

regulator for the majority of community banks. As the 

FDIC continues to operate in a post-crisis environment, 

it must continue to apply lessons learned over the past 

years of turmoil. One key lesson is the need for earlier 

regulatory response when risks are building. For example, 

banks may be tempted to take additional risks or to loosen 

underwriting standards. Some banks are also introducing 

new products or lines of business or seeking new sources 

for non-interest income, all of which can lead to interest 

rate risk, credit risk, operational risk, and reputational risk. 

Additionally, with technological changes, increased use of 

technology service providers, new delivery channels, and 

cyber-threats, the FDIC’s IT examination program needs to 

be proactive and bankers need to ensure a strong control 

environment and sound governance practices in their 

institutions. If the FDIC determines that an institution’s 

condition is less than satisfactory, it may take a variety 

of supervisory actions, including informal and formal 

enforcement actions against the institution or its directors 

and officers and others associated with the institution, 

to address identified deficiencies and, in some cases, 

ultimately ban individuals from banking. 

The Chairman has made it clear that one of the FDIC’s 

most important priorities is the future of community 

banks and the critical role they play in the financial system 

and the U.S. economy as a whole. The FDIC undertook 

a comprehensive review of the U.S. community banking 

sector covering 27 years of data. Additionally, the FDIC 

has reviewed its examination, rulemaking, and guidance 

processes with a goal of identifying ways to make the 

supervisory process more efficient, consistent, and 

transparent—while maintaining safe and sound banking 

practices. Supplementing these activities were roundtable 

discussions with community bankers from around the 

country, and ongoing discussions with the FDIC’s Advisory 

Committee on Community Banking. In response to 

concerns raised, the FDIC implemented a number of 

enhancements to its supervisory and rulemaking processes. 

For example, it restructured the pre-exam process. It is 

taking steps to improve communication with banks under 

its supervision by using Web-based tools. Finally, it has 

instituted a number of outreach and technical assistance 

initiatives for community bankers, which it expects 

to continue. 

A strong examination program, vigilant supervisory 

activities, effective enforcement actions and lessons learned 

in light of the recent crisis will be critical to the future 

of community banks. These actions will also ensure 

stability and continued confidence in the financial system 

going forward. 

Carrying Out Ongoing Resolution 

and Receivership Workload

In the recent financial crisis, the FDIC made extensive use 

of loss-share agreements (LSA) to facilitate the prompt 

transfer of failed bank assets to private management. In 

a loss share transaction, the FDIC as receiver agrees to 

share losses on certain assets with the acquirer. Under a 

typical LSA structure, the FDIC would assume 80 percent 

of future losses on troubled assets, with the acquiring 

institution assuming the remaining 20 percent. This partial 

indemnification against loss would induce risk-averse 

acquirers to take on these troubled assets under private 

management, and thus keep them out of a governmentcontrolled receivership. It also provided an incentive for 

the acquirer to maximize net recoveries on those assets, 
ANNUAL REPORT 2013

142 APPENDICES

– consistent with the fiduciary responsibility of the FDIC. 

Almost 65 percent of the bank failures since the beginning 

of 2008 through 2012 were resolved through whole-bank 

purchase and assumption transactions with LSAs. 

As another resolution strategy, the FDIC employed 

structured transactions to minimize the FDIC’s holding and 

asset management expenses for the assets by transferring 

the management responsibility to private-sector asset 

management experts. As receiver, the FDIC had completed 

34 structured transactions through August 2013 involving 

42,900 assets with a total unpaid principal balance of $26 

billion. To ensure the FDIC receives the highest return on 

the assets and the managing members treat failed bank 

borrowers fairly, the FDIC must continue to monitor the 

managing member’s compliance with the transaction 

agreements by reviewing regular reports, measuring 

actual performance against performance projections in 

the consolidated business plans, conducting regular site 

visitations, and thoroughly investigating borrower or 

guarantor complaints with regard to the servicing and 

dispositions of their loans by the managing members.

As the crisis continues to diminish, some of these 

agreements will be winding down. We have recommended 

that the FDIC develop a strategy for mitigating the impact 

of impending portfolio sales and LSA terminations on 

the Deposit Insurance Fund (DIF) and that it ensure that 

procedures, processes, and resources are sufficient to 

address the volume of terminations and potential requests 

for asset sales. Given the dollar value and risks associated 

with the structured transactions, the FDIC needs to ensure 

continuous monitoring and effective oversight in the 

interest of receiving a high return on assets. 

Ensuring the Continued Strength of 

the Insurance Fund

Insuring deposits remains at the heart of the FDIC’s 

commitment to maintain stability and public confidence 

in the nation’s financial system. To maintain sufficient 

DIF balances, the FDIC collects risk-based insurance 

premiums from insured institutions and invests deposit 

insurance funds. 

In the aftermath of the financial crisis, FDIC-insured 

institutions continue to make gradual but steady progress. 

Continuing to replenish the DIF in a post-crisis environment 

is a critical activity for the FDIC. The DIF balance had 

dropped below negative $20 billion during the worst time of 

the crisis. At year-end 2013, the balance was $47.2 billion, 

reflecting 16 consecutive quarters of positive growth. 

Assessment revenue and a decline in loss provisions for 

anticipated bank failures have been the impetus for the 

increase in the fund balance.

While the fund is considerably stronger than it has been, 

the FDIC must continue to monitor the emerging risks that 

can threaten fund solvency in the interest of continuing to 

provide the insurance coverage that depositors have come 

to rely upon. Given the volatility of the global markets and 

financial systems, new risks can emerge without warning 

and threaten the safety and soundness of U.S. financial 

institutions and the viability of the DIF. The FDIC must be 

prepared for such a possibility. 

Promoting Consumer Protections 

and Economic Inclusion

The FDIC carries out its consumer protection role by 

providing consumers with access to information about 

their rights and disclosures that are required by federal 

laws and regulations. Importantly, it also examines the 

banks where the FDIC is the primary federal regulator 

to determine the institutions’ compliance with laws and 

regulations governing consumer protection, fair lending, 

and community investment. The FDIC also coordinates 

with the Consumer Financial Protection Board (CFPB), 

created under the Dodd-Frank Act, on consumer issues of 

mutual interest. 

The FDIC continues to work with the Congress and 

others to ensure that the banking system remains sound 

and that the broader financial system is positioned to 

meet the credit needs of consumers and the economy, 

especially the needs of creditworthy households that may 

experience distress. A challenging priority articulated by 

the Chairman is to continue to increase access to financial 

services for the unbanked and underbanked in the United 

States. Efforts in this regard include the FDIC’s biennial 

survey conducted jointly with the Census Bureau to assess 

the overall population’s access to insured institutions. 

Additionally, the FDIC’s Advisory Committee on Economic 

Inclusion, composed of bankers, community and consumer 

organizations, and academics, explores strategies to 
APPENDICES 143

bring the unbanked into the financial mainstream. The 

FDIC’s Alliance for Economic Inclusion initiative seeks 

to collaborate with financial institutions; community 

organizations; local, state, and federal agencies; and other 

partners to form broad-based coalitions to bring unbanked 

and underbanked consumers and small businesses into the 

financial mainstream. 

Successful activities in pursuit of this priority will continue 

to require effort on the part of the FDIC going forward. 

The FDIC will need to sustain ongoing efforts to carry 

out required compliance and community reinvestment 

examinations, coordinate with CFPB on regulatory matters 

involving financial products and services, and pursue 

economic inclusion initiatives to the benefit of the 

American public. 

Implementing Workforce Changes and 

Budget Reductions 

As the number of financial institution failures continues to 

decline, the FDIC is reshaping its workforce and adjusting 

its budget and human resources as it seeks a balanced 

approach to managing costs while achieving mission 

responsibilities. The FDIC closed two temporary offices 

charged with managing receivership activities and asset 

sales: the West Coast Office and the Midwest Office in 

January 2012, and September 2012, respectively. It plans to 

close the East Coast Office in April 2014.

The Board of Directors approved a $2.4 billion Corporate 

Operating Budget for 2014, 11 percent lower than the 2013 

budget. In conjunction with its approval of the 2014 budget, 

the Board also approved an authorized 2014 staffing level 

of 7,199 positions, down from 8,053 currently authorized, a 

net reduction of 854 positions. This is the third consecutive 

reduction in the FDIC’s annual operating budget, and the 

2014 budget is the lowest annual budget since 2008. 

As conditions improve throughout the industry and the 

economy, the FDIC and staff are adjusting to a new work 

environment and workplace. For all employees, in light of 

a post-crisis, transitioning workplace, the FDIC will seek to 

sustain its emphasis on fostering employee engagement and 

morale. Its diversity and inclusion initiatives, along with its 

new Workplace Excellence Program are positive steps in 

that direction and should continue to yield positive results. 

Ensuring Effective Enterprise Risk Management

A key component of corporate governance at the FDIC 

is the Board of Directors. The Board will likely face 

challenges in leading the organization, accomplishing the 

Chairman’s priority initiatives, and coordinating with the 

other regulatory agencies on issues of mutual concern and 

shared responsibility. Enterprise risk management is a 

related aspect of governance at the FDIC. Notwithstanding 

a stronger economy and financial services industry, the 

FDIC’s enterprise risk management framework and related 

activities need to be attuned to emerging risks, both internal 

and external to the FDIC that can threaten corporate 

success. Individuals at every working level throughout 

the FDIC need to understand current and emerging risks 

and be ready to take necessary steps to mitigate those 

risks as changes occur and challenging scenarios present 

themselves.