ANNUAL REPORT 

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FEDERAL DEPOSIT INSURANCE CORPORATION

550 17th Street NW, Washington, DC 20429 OFFICE OF THE CHAIRMAN

February 14, 2019

Dear Sir/Madam,

The Federal Deposit Insurance Corporation (FDIC) is pleased to submit its 2018 Annual Report

(also referred to as the Performance and Accountability Report), which includes the audited financial 

statements of the Deposit Insurance Fund and the Federal Savings and Loan Insurance Corporation 

(FSLIC) Resolution Fund. This report is produced in accordance with:

♦ Section 17(a) of the Federal Deposit Insurance Act,

♦ the Chief Financial Officers Act of 1990, Public Law 101-576, 

♦ the Government Performance and Results Act of 1993 (as amended) and the GPRA Modernization 

Act of 2010,

♦ Section 5 (as amended) of the Inspector General Act of 1978, 

♦ the Reports Consolidation Act of 2000, and

♦ the Fraud Reduction and Data Analytics Act of 2015.

In accordance with the Reports Consolidation Act of 2000, the FDIC assessed the reliability of the 

performance data contained in this report. We found no material inadequacies, and the data are 

considered to be complete and reliable. 

Based on internal management evaluations, and in conjunction with the results of independent financial 

statement audits, we can provide reasonable assurance that the objectives of Section 2 (internal controls) 

and Section 4 (financial management systems) of the Federal Managers’ Financial Integrity Act of 1982 

have been achieved, and that the FDIC has no material weaknesses. We are committed to maintaining 

effective internal controls corporate-wide in 2019. 

Sincerely,

Jelena McWilliams

Chairman

The President of the United States

The President of the United States Senate

The Speaker of the United States House of Representatives
ANNUAL REPORT 2018

2018

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TABLE OF CONTENTS

Mission, Vision, and Values...............................................................................................................................................4

Message from the Chairman.............................................................................................................................................5

Message from the Chief Financial Officer...........................................................................................................................9

FDIC Senior Leaders........................................................................................................................................................10

I. Management’s Discussion and Analysis.................................................................................................................11

The Year in Review................................................................................................................................................13

Overview............................................................................................................................................................... 13

Deposit Insurance.................................................................................................................................................. 13

Supervision ........................................................................................................................................................... 14

Supervision Policy.................................................................................................................................................. 20

Financial Technology ............................................................................................................................................ 26

Community Banking Initiatives............................................................................................................................. 28

Activities Related to Systemically Important Financial Institutions ........................................................................ 34

Depositor and Consumer Protection...................................................................................................................... 39

Receivership Management ..................................................................................................................................... 46

Enhancing the FDIC’s IT Security......................................................................................................................... 49

Minority and Women Inclusion............................................................................................................................. 51

International Outreach ......................................................................................................................................... 54

Effective Management of Strategic Resources......................................................................................................... 55

II. Performance Results Summary.............................................................................................................................59

Summary of 2018 Performance Results by Program............................................................................................... 61

Performance Results by Program and Strategic Goal .............................................................................................. 63

Prior Years’ Performance Results ............................................................................................................................ 69

III. Financial Highlights..............................................................................................................................................83

Deposit Insurance Fund Performance.................................................................................................................... 85

IV. Budget and Spending...........................................................................................................................................89

FDIC Operating Budget........................................................................................................................................ 91

2018 Budget and Expenditures by Program .......................................................................................................... 92

Investment Spending ............................................................................................................................................. 93

V. Financial Section ..................................................................................................................................................95

Deposit Insurance Fund......................................................................................................................................... 96

FSLIC Resolution Fund....................................................................................................................................... 112

Government Accountability Office Auditor’s Report............................................................................................ 119

Management’s Report on Internal Control Over Financial Reporting .................................................................. 124

Management’s Response to the Auditor’s Report.................................................................................................. 125

VI. Risk Management and Internal Controls..............................................................................................................127

Fraud Reduction and Data Analytics Act of 2015 ................................................................................................ 129

Management Report on Final Actions.................................................................................................................. 130

VII. Appendices ........................................................................................................................................................133

A. Key Statistics ................................................................................................................................................. 135

B. More About the FDIC .................................................................................................................................. 148

C. Office of Inspector General’s Assessment of the Management and Performance 

Challenges Facing the FDIC.......................................................................................................................... 157

D. Acronyms and Initialisms .............................................................................................................................. 189
MISSION, VISION, AND VALUES

MISSION

The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress 

to maintain stability and public confidence in the nation’s financial system by:

♦ Insuring deposits,

♦ Examining and supervising financial institutions for safety and soundness and 

consumer protection,

♦ Making large and complex financial institutions resolvable, and

♦ Managing receiverships.

VISION

The FDIC is a recognized leader in promoting sound public policies; addressing risks in the nation’s 

financial system; and carrying out its insurance, supervisory, consumer protection, resolution planning, 

and receivership management responsibilities.

VALUES

The FDIC and its employees have a tradition of distinguished public service. Six core values guide us 

in accomplishing our mission:

Integrity We adhere to the highest ethical and professional standards.

Competence We are a highly skilled, dedicated, and diverse workforce that is empowered to 

achieve outstanding results.

Teamwork We communicate and collaborate effectively with one another and with other 

regulatory agencies.

Effectiveness We respond quickly and successfully to risks in insured depository institutions 

and the financial system.

Accountability We are accountable to each other and to our stakeholders to operate in a 

financially responsible and operationally effective manner.

Fairness We respect individual viewpoints and treat one another and our stakeholders 

with impartiality, dignity, and trust.

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