In its role as deposit insurer of 

fi nancial institutions, the FDIC 

promotes the safety and soundness of 

insured depository institutions (IDIs). 

The following fi nancial 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 

fulfi lls 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 FDICInsured Deposits and Insurance Fund 

Reserve Ratios on the following page.)

For 2012, the DIF’s comprehensive 

income totaled $21.1 billion compared 

to comprehensive income of $19.2 

billion during 2011. This $1.9 billion 

year-over-year increase was primarily 

due to a $3.3 billion increase in 

revenue from excess Debt Guarantee 

Program (DGP) fees previously held 

as systemic risk deferred revenue, 

partially offset by a $1.1 billion 

decrease in assessments and a $191 

million increase in the provision for 

insurance losses.

As the TLGP expired at year-end, the 

DIF recognized revenue of $5.9 billion 

in 2012, representing the remaining 

deferred revenue not absorbed by 

the TLGP for losses. Through the 

end of the debt issuance period, 

the FDIC collected $10.4 billion 

in fees and surcharges under the 

DGP. In addition, the FDIC collected 

Transaction Account Guarantee 

Program (TAG) fees of $1.2 billion for 

unlimited coverage for noninterestbearing transaction accounts held 

by IDIs on all deposit amounts 

exceeding the fully insured limit 

of $250,000. Since inception of the 

program, the TLGP incurred estimated 

losses of $153 million and $2.1 billion 

on DGP and TAG Program claims, 

respectively. Over the duration of the 

TLGP, $8.5 billion in TLGP assets were 

transferred to the DIF. In addition, 

during 2009, surcharges of $872 

million were collected and deposited 

into the DIF.

Assessment revenue was $12.4 

billion for 2012. The decrease of $1.1 

billion, from $13.5 billion in 2011, 

was primarily due to lower average 

assessment rates in 2012, resulting 

from improvement in the fi nancial 

condition of the banking industry.

The provision for insurance losses 

was negative $4.2 billion for 2012, 

compared to negative $4.4 billion for 

2011. The negative provision for 2012 

primarily resulted from a reduction in 

the contingent loss reserve due to the 

improvement in the fi nancial condition 

of institutions that were previously 

identifi ed to fail, and a reduction in 

the estimated losses for institutions 

that have failed in the current and 

prior years.

Financial II. Highlights

FINANCIAL HIGHLIGHTS 41
ANNUAL REPORT 2012

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

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

ESTIMATED DIF INSURED DEPOSITS

SOURCE: Commercial Bank Call and Thrift Financial Reports

Note: Beginning in the fourth quarter of 2010, estimated insured deposits include the entire balance of noninterest-bearing 

transaction accounts.

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

0.3

0.4

0.2

0.1

0.0

-0.1

-0.2

-0.3

-0.4

DEPOSIT INSURANCE FUND RESERVE RATIOS

42 FINANCIAL HIGHLIGHTS
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 

fi nancial 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 

$2.5 billion in 2012, including $1.6 

billion in ongoing operations and 

$0.9 billion in receivership funding. 

This represented approximately 92 

percent of the approved budget for 

ongoing operations and 57 percent of 

the approved budget for receivership 

funding for the year.3

The FDIC Board of Directors approved 

a 2013 Corporate Operating Budget of 

approximately $2.7 billion, consisting 

of $1.8 billion for ongoing operations 

and $0.9 billion for receivership 

funding. The level of approved 

ongoing operations budget for 2013 

is approximately $2.0 million (0.1 

percent) higher than the actual 2012 

ongoing operations budget, while the 

approved receivership funding budget 

is roughly $600 million (40 percent) 

lower than the 2012 receivership 

funding budget. 

As in prior years, the 2013 budget was 

formulated primarily on the basis of 

an analysis of projected workload 

for each of the Corporation’s three 

major business lines and its major 

program support functions. The most 

signifi cant 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 2013 receivership funding budget 

allows for resources for contractor 

support as well as nonpermanent 

staffi ng for the Division of Resolutions 

and Receiverships, the Legal Division, 

and other organizations, should 

workload in these areas require 

an immediate response.

DEPOSIT INSURANCE FUND SELECTED STATISTICS 

 Dollars in Millions

For the years ended December 31

2012  2011  2010

Financial Results

Revenue $18,522 $16,342 $13,380 

Operating Expenses 1,778 1,625 1,593 

Insurance and Other Expenses (includes provision for loss) (4,377) (4,541) (1,518) 

Net Income (Loss) 21,121 19,257 13,305 

Comprehensive Income (Loss) 21,131 19,179 13,510 

Insurance Fund Balance $32,958 $11,827 $(7,352) 

Fund as a Percentage of Insured Deposits (reserve ratio) 0.35 %* 0.17 % (0.12) %

Selected Statistics

Total DIF-Member Institutions1 7,181* 7,357 7,657 

Problem Institutions 651 813 884 

Total Assets of Problem Institutions $232,701 $319,432 $390,017 

Institution Failures 51 92 157 

Total Assets of Failed Institutions in Year2 $11,617 $34,923 $92,085 

Number of Active Failed Institution Receiverships 463 426 336 

* Figures are as of September 30, 2012.

1 Includes commercial banks and savings institutions, but does not include U.S. insured branches of foreign banks.

2 Total asset data are based upon the last Call Report fi led by the institution prior to failure.

3 The numbers in this paragraph will not agree with the DIF and FRF fi nancial statements due to differences in how items 

are classifi ed.

FINANCIAL HIGHLIGHTS 43
ANNUAL REPORT 2012

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 made signifi cant capital 

investments during the 2003–2012 

period, the largest of which was the 

expansion of its Virginia Square offi ce 

facility. Most other projects involved 

the development and implementation 

of major IT systems. Investment 

spending totaled $288 million during 

this period, peaking at $108 million 

in 2004. Spending for investment 

projects in 2012 totaled approximately 

$14 million. For 2013, investment 

spending is estimated at $28 million. 

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$120

$100

$80

$60

$40

$20

$0

INVESTMENT SPENDING 2003–2012

Dollars in Millions

44 FINANCIAL HIGHLIGHTS