ANNUAL REPORT 2013 11

I am pleased to present 

the Federal Deposit 

Insurance Corporation’s 

(FDIC) 2013 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 22 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 executing sound 

financial management and in providing reliable financial 

data. 

During 2013, the FDIC continued to make significant 

progress in rebuilding the DIF. Since year-end 2009, the 

DIF balance increased by $68.1 billion to $47.2 billion as 

of year-end 2013. This increase in the DIF balance was 

primarily due to cumulative assessment revenue of $49.2 

billion and a decrease in the estimated losses for both 

actual and anticipated bank failures of $15.1 billion. 

FINANCIAL RESULTS FOR 2013

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 the provision for 

insurance losses and a $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 risk-based 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.

Only 24 banks failed in 2013, the fewest since the beginning 

of the crisis in 2008 when 25 banks failed. Failures during 

the crisis peaked at 157 in 2010. Even though the banking 

crisis has subsided, the FDIC will still emphasize effectively 

managing risks to the DIF, as we rebuild the Fund in the 

post-banking crisis environment. Financial operations 

will continue to be based on sound financial management 

techniques, which will include a strong enterprise-wide risk 

management and internal control program.

Sincerely,

Steven O. App

MESSAGE FROM THE CHIEF FINANCIAL OFFICER 11

Message from the Chief Financial Officer