1717

2017

I am pleased to present 

the FDIC’s 2017 Annual 

Report (also referred to 

as the Performance and 

Accountability Report). 

The report covers financial 

and program performance 

information, and 

summarizes our successes 

for the year. The FDIC 

takes pride in providing timely, reliable, and 

meaningful information to its many stakeholders. 

For 26 consecutive years, the U.S. Government 

Accountability Office (GAO) has issued unmodified 

(unqualified) audit opinions for the two funds 

administered by the FDIC: the Deposit Insurance 

Fund (DIF) and the Federal Savings and Loan 

Insurance Corporation (FSLIC) Resolution Fund 

(FRF). We take pride in our responsibility and 

demonstrate discipline and accountability as stewards 

of these funds. We remain proactive in the execution 

of sound financial management and in providing 

reliable financial data.

FINANCIAL AND PROGRAM 

RESULTS FOR 2017

The DIF balance (the net worth of the Fund) rose 

to a record $92.7 billion as of December 31, 2017, 

compared to the year-end 2016 balance of $83.2 

billion.  The Fund balance increase was primarily due 

to assessment revenue. 

For 2017, DIF comprehensive income was 

$9.6 billion, or $975 million lower than 2016 

comprehensive income of $10.6 billion.  While 

assessment revenue in 2017 of $10.6 billion was $608 

million higher than 2016 assessment revenue of $10.0 

billion, the lower negative provision for insurance 

losses of $1.4 billion year-over-year (negative $183 

million in 2017 as compared to negative $1.6 billion 

in 2016) more than offset the effect of the revenue 

increase. 

The DIF U.S. Treasury securities investment portfolio 

balance was $83.3 billion as of December 31, 2017, 

an increase of $9.8 billion over the year-end 2016 

portfolio balance of $73.5 billion. Interest revenue on 

DIF investments was $1.1 billion for 2017, compared 

to $671 million for 2016. 

In 2017, the FDIC continued its efforts to reduce 

operating costs and prudently manage the funds 

that it administers. The FDIC Operating Budget 

for 2017 totaled approximately $2.16 billion, 

which represented a decrease of $53 million (2.4 

percent) from 2016. Actual 2017 spending totaled 

approximately $1.93 billion. On December 19, 

2017, the FDIC Board of Directors approved a 2018 

FDIC Operating Budget totaling $2.09 billion, down 

$66 million (3.0 percent) from the 2017 budget. 

Including 2018, the annual operating budget has 

declined for eight consecutive years, consistent with a 

steadily declining workload.

The FDIC continues to reduce staffing levels, as 

conditions in the banking industry improve and 

the FDIC requires fewer resources. The FDIC’s 

authorized full-time equivalent staffing dropped in 

2017 from 6,363 to 6,076, a 4.5 percent reduction. 

In 2018, we project further reductions in the overall 

workforce. However, we will maintain a workforce 

capable of handling our supervision, insurance, and 

bank failure functions.

MESSAGE FROM THE 

CHIEF FINANCIAL OFFICER

MESSAGE FROM THE CHIEF FINANCIAL OFFICER
18

ANNUAL REPORT

In 2017, eight banks failed, up from five in 2016. 

Even though the number of bank failures is relatively 

low, we will continue to prudently manage the risks 

to the DIF, including interest rate, fiscal, and global 

economic risks. We will remain focused on sound 

financial management techniques, and maintain 

our enterprise-wide risk management and internal 

control program.

Sincerely,

Steven O. App

MESSAGE FROM THE CHIEF FINANCIAL OFFICER
2017

FDIC SENIOR LEADERS 19

FDIC SENIOR LEADERS

Seated (left to right): Vice Chairman Thomas M. Hoenig and Chairman Martin J. Gruenberg.

Standing 1st Row (left to right): Jay N. Lerner, Barbara A. Ryan, Steven Primrose, Craig R. Jarvill, Arleas Upton Kea, Mark E. Pearce, 

Barbara Hagenbaugh, Doreen R. Eberley. 2nd Row (left to right): Howard G. Whyte, Suzannah L. Susser, Lawrence Gross, Jr., Charles Yi, 

Russell G. Pittman, Steven O. App, Bret D. Edwards, Lee Price, Arthur J. Murton, Kymberly K. Copa, and Diane Ellis.

Not pictured: Robert D. Harris, Noreen Padilla, C. Richard Miserendino, Saul Schwartz, Andy Jiminez, M. Anthony Lowe, and Ricardo Delfin.