MESSAGE FROM THE CHIEF FINANCIAL OFFICER 9 

2020

 

MESSAGE FROM THE 

CHIEF FINANCIAL OFFICER 

I am pleased to present the 

FDIC’s 2020 Annual Report, 

which covers financial and 

program performance 

information and summarizes 

our successes for the year. 

For 29 consecutive years, 

the U.S. Government 

Accountability Ofice 

has issued unmodified 

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 accomplishments and continue to 

consistently demonstrate discipline and accountability 

as stewards of these funds. We remain proactive in 

the execution of sound financial management and in 

providing reliable and timely financial data to enhance 

decision-making. 

2020 FINANCIAL AND 

PROGRAM RESULTS 

The DIF balance rose to a record $117.9 billion as of 

December 31, 2020, compared to the year-end 2019 

balance of $110.3 billion. The Fund balance increase 

was primarily due to assessment revenue. Four insured 

financial institutions failed in 2020, with total assets of 

$455 million. 

The DIF U.S. Treasury securities investment portfolio 

balance was $110.5 billion as of December 31, 2020, an 

increase of $10.4 billion over the year-end 2019 portfolio 

balance of $100.1 billion. Interest revenue on DIF 

investments was $1.7 billion for 2020, compared to 

$2.1 billion for 2019. 

FDIC expenditures remained relatively unchanged in 

2020 compared to 2019. Spending totaled approximately 

$1.87 billion—$148 million (or 7.3 percent) less than the 

2020 FDIC Operating Budget of $2.02 billion and just $6 

million (or 0.3 percent) more than 2019 actual spending 

of $1.86 billion. The FDIC Board of Directors recently 

approved a 2021 FDIC Operating Budget totaling $2.28 

billion, up $261 million (or 12.9 percent) from the 2020 

budget.  This annual operating budget increase, which 

reverses the trend of ten consecutive years of decline, is 

largely due to the establishment of contingency reserves 

designed to ensure agency readiness to address any 

potential increase in supervision or resolution workload 

resulting from the ongoing pandemic. 

The FDIC’s authorized full-time equivalent stafing 

dropped from 5,915 in 2019 to 5,728 in 2020, a 3.2 percent 

reduction. Authorized stafing for 2021 is 5,793 full-time 

equivalent positons, 65 positions (or 1.1 percent) higher 

than 2020. 

During 2020, the FDIC used its enterprise risk 

management (ERM) risk profile and risk inventory to 

measure and monitor risks and updated these tools to 

reflect the operational efects of the COVID-19 pandemic.  

The FDIC also conducted risk reviews, obtained regional 

ofice risk perspectives, enhanced ERM reporting 

capabilities, and provided ERM training. In 2021, we 

will continue to enhance the ERM program with active 

collaboration among all FDIC divisions and ofices. 

I appreciate the FDIC professionals who plan, execute, 

and account for the agency’s resources. Their 

commitment to ensuring sound financial management 

provides the foundation for our strong stewardship and 

ensures reliable financial information is available to our 

stakeholders. 

Sincerely, 

Bret D. Edwards