In its role as deposit insurer of financial institutions, 

the FDIC promotes the safety and soundness of insured 

depository institutions (IDIs). The following financial 

highlights address the performance of the deposit insurance 

funds, and discuss the corporate operating budget and 

investment spending.

DEPOSIT INSURANCE FUND 

PERFORMANCE 

The FDIC administers the Deposit Insurance Fund (DIF) 

and the FSLIC Resolution Fund (FRF), which fulfills 

the obligations of the former Federal Savings and Loan 

Insurance Corporation (FSLIC) and the former Resolution 

Trust Corporation (RTC). The following summarizes the 

condition of the DIF. (See the accompanying graphs on 

FDIC-Insured Deposits and Insurance Fund Reserve Ratios 

on the following page.)

For 2013, the DIF’s comprehensive income totaled $14.2 

billion compared to comprehensive income of $21.1 billion 

during 2012. This $6.9 billion year-over-year decrease was 

primarily due to a $6.0 billion decrease in other revenue 

(which is attributable to the 2012 transfer of fees from 

TLGP) and a $2.7 billion decrease in assessments; partially 

offset by a $1.5 billion decrease in provision for insurance 

losses and $156 million net increase from the sale of 

Citigroup trust preferred securities (TruPS). 

Assessment revenue was $9.7 billion for 2013. The decrease 

of $2.7 billion, from $12.4 billion in 2012, was primarily 

due to lower assessment rates, resulting from continued 

improvements in banks’ CAMELS ratings and financial 

condition. In addition, in 2013, the DIF refunded $5.9 billion 

in prepaid assessments to the 5,625 insured depository 

institutions that had remaining balances. This final payment 

marked the end of the prepaid assessment program, 

which began with the collection of $45.7 billion in prepaid 

assessments on December 30, 2009. 

The provision for insurance losses was negative $5.7 

billion for 2013, compared to negative $4.2 billion for 2012. 

The negative provision for 2013 primarily resulted from 

a reduction of $1.0 billion in the contingent liability for 

anticipated failures due to the improvement in the financial 

condition of troubled institutions and a decrease of $4.8 

billion in the estimated losses for institutions that failed in 

prior years.

During 2013, to facilitate a sale of the TruPS, the FDIC 

exchanged the Citigroup TruPS for $2.420 billion (principal 

amount) of Citigroup subordinated notes. The exchange 

resulted in an increase of $156 million to the DIF’s 2013 

comprehensive income. Subsequently, the subordinated 

notes were sold to the institutional fixed income market for 

the principal amount of $2.420 billion.

Financial II. Highlights

FINANCIAL HIGHLIGHTS 47
ANNUAL REPORT 2013

48 FINANCIAL HIGHLIGHTS

ESTIMATED DIF INSURED DEPOSITS

DEPOSIT INSURANCE FUND RESERVE RATIOS

SOURCE: Commercial Bank Call and Thrift Financial Reports

Note: Beginning in the fourth quarter of 2010 through the fourth quarter of 2012, estimated insured deposits include the entire balance of 

noninterest-bearing transaction accounts.

3-09

Dollars in Billions

6-09 9-09 12-09 3-10 6-10 9-10 12-10 3-11 6-11 9-11 12-11 3-12 6-12 9-12 12-12 3-13 6-13 9-13 12-13 9-13

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

3-09

Fund Balances as a Percent of Insured Deposits

6-09 9-09 12-09 3-10 6-10 9-10 12-10 3-11 6-11 9-11 12-11 3-12 6-12 9-12 12-12 3-13 6-13 9-13 12-13

0.4

0.6

0.8

0.2

0.0

-0.2

-0.4
FINANCIAL HIGHLIGHTS 49

DEPOSIT INSURANCE FUND SELECTED STATISTICS 

 Dollars in Millions

For the years ended December 31

2013  2012 2011

Financial Results

Revenue $10,459 $18,522 $16,342

Operating Expenses 1,609 1,778 1,625

Insurance and Other Expenses (includes provision for loss) (5,655) (4,377) (4,541)

Net Income 14,505 21,121 19,257

Comprehensive Income 14,233 21,131 19,179

Insurance Fund Balance $47,191 $32,958 $11,827

Fund as a Percentage of Insured Deposits (reserve ratio) 0.79 % 0.44 % 0.17 %

Selected Statistics

Total DIF-Member Institutions1 6,812 7,183 7,357

Problem Institutions 467 651 813

Total Assets of Problem Institutions $152,687 $232,701 $319,432

Institution Failures 24 51 92

Total Assets of Failed Institutions in Year2 $6,044 $11,617 $34,923

Number of Active Failed Institution Receiverships 479 463 426

CORPORATE OPERATING BUDGET

The FDIC segregates its corporate operating budget and 

expenses into two discrete components: ongoing operations 

and receivership funding. The receivership funding 

component represents expenses resulting from financial 

institution failures and is, therefore, largely driven by 

external forces, while the ongoing operations component 

accounts for all other operating expenses and tends to be 

more controllable and estimable. Corporate operating 

expenses totaled $2.3 billion in 2013, including $1.6 billion 

in ongoing operations and $0.7 billion in receivership 

funding. This represented approximately 91 percent of the 

approved budget for ongoing operations and 75 percent of 

the approved budget for receivership funding for the year.6

The Board of Directors approved a 2014 Corporate 

Operating Budget of approximately $2.4 billion, consisting 

of $1.8 billion for ongoing operations and $0.6 billion 

for receivership funding. The level of approved ongoing 

operations budget for 2014 is approximately $9 million (0.5 

percent) higher than the 2013 ongoing operations budget, 

while the approved receivership funding budget is roughly 

$300 million (33 percent) lower than the 2013 receivership 

funding budget.

As in prior years, the 2014 budget was formulated primarily 

on the basis of an analysis of projected workload for each of 

the FDIC’s three major business lines and its major program 

support functions. The most significant factor contributing 

to the decrease in the Corporate Operating Budget is the 

improving health of the industry and the resultant reduction 

in failure-related workload. Although savings in this area 

are being realized, the 2014 receivership funding budget 

allows for resources for contractor support as well as 

6 The numbers in this paragraph will not agree with the DIF and FRF financial statements due to differences in how items are 

classified.

1 Commercial banks and savings institutions. Does not include U.S. insured branches of foreign banks.

2 Total Assets data are based upon the last Call Report or TFR filed by the institution prior to failure.
ANNUAL REPORT 2013

non-permanent staffing for DRR, the Legal Division, and 

other organizations, should workload in these areas require 

an immediate response.

INVESTMENT SPENDING

The FDIC instituted a separate Investment Budget in 

2003. It has a disciplined process for reviewing proposed 

new investment projects and managing the construction 

and implementation of approved projects. Proposed IT 

projects are carefully reviewed to ensure that they are 

consistent with the FDIC’s enterprise architecture. The 

project approval and monitoring processes also enable the 

FDIC to be aware of risks to the major capital investment 

projects and facilitate appropriate, timely intervention to 

address these risks throughout the development process. 

An investment portfolio performance review is provided to 

the FDIC’s Board of Directors quarterly.

The FDIC undertook significant capital investments 

during the 2004-2013 period, the largest of which was the 

expansion of its Virginia Square office facility. Most other 

projects involved the development and implementation 

of major IT systems. Investment spending totaled $280 

million during this period, peaking at $108 million in 

2004. Spending for investment projects in 2013 totaled 

approximately $19 million. For 2014, investment spending 

is estimated at $23 million.

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

$120

$100

$80

$60

$40

$20

$0

50 FINANCIAL HIGHLIGHTS

INVESTMENT SPENDING 2004–2013

Dollars in Millions