81

2016

FINANCIAL 

HIGHLIGHTS

III.
THIS PAGE INTENTIONALLY LEFT BLANK
2016

 83

In its role as deposit insurer of financial institutions, 

the FDIC promotes the safety and soundness of 

IDIs. The following financial highlights address the 

performance of the Deposit Insurance Fund.

DEPOSIT INSURANCE FUND 

PERFORMANCE

The DIF balance was $83.2 billion at year-end 2016, 

an increase of $10.6 billion from $72.6 billion at yearend 2015. The DIF’s comprehensive income totaled 

$10.6 billion for 2016 compared to comprehensive 

income of $9.8 billion during 2015. The $741 

million year-over-year increase was primarily due 

to a $1.2 billion increase in assessment revenue and 

a $248 million increase in interest revenue, partially 

offset by a $683 million lower negative provision for 

insurance losses.

Assessment revenue was $10.0 billion for 2016, as 

compared to $8.8 billion for 2015. The combination 

of assessment surcharges on larger institutions and 

lower regular assessment rates for all IDIs resulted in 

the net increase in assessment revenue of $1.2 billion.

The DIF’s interest revenue on U.S. Treasury securities 

for 2016 was $671 million compared to interest 

revenue of $423 million in 2015. The $248 million 

year-over-year increase reflects not only a larger 

investment portfolio balance, but also new, higheryielding investments. The DIF’s cash and U.S. 

Treasury investment portfolio balance was $74.8 

billion at year-end 2016, an increase of $11.4 billion 

from the year-end 2015 balance of $63.4 billion that 

was primarily due to assessment collections of $9.5 

billion and recoveries from resolutions of $3.6 billion, 

less operating expenses paid of $1.7 billion and 

resolution disbursements of $503 million.

The provision for insurance losses was negative 

$1.6 billion for 2016, compared to negative $2.3 

billion for 2015. The negative provision for 2016 

primarily resulted from a decrease of $1.7 billion 

in the estimated losses for institutions that failed 

in current and prior years, partially offset by an 

increase of $97 million in the contingent liability 

for anticipated failures. The $1.7 billion decrease 

in the estimated losses from failures was primarily 

attributable to (1) unanticipated recoveries of $545 

million in litigation settlements, professional liability 

claims, and tax refunds by the receiverships; (2) a 

$584 million decrease in the receiverships’ sharedloss liability; (3) a $406 million decrease in projected 

future receivership expenses and receivership legal 

and representation and warranty liabilities; and 

(4) a $231 million decrease resulting from greaterthan-anticipated collections from receiverships’ asset 

sales and updated estimated recovery rates applied 

to the remaining assets in liquidation. For the 

receiverships’ shared-loss liability, the decrease in 2016 

was primarily due to both the early termination of 

numerous shared-loss agreements (SLAs) during the 

period, which resulted in lower-than-anticipated losses 

on covered assets, and the unanticipated recoveries 

from SLAs where the commercial loss coverage has 

expired but the recovery period remains active.

FINANCIAL HIGHLIGHTS
ANNUAL REPORT

84 FINANCIAL HIGHLIGHTS

ESTIMATED DIF INSURED DEPOSITS

DEPOSIT INSURANCE FUND RESERVE RATIOS

Dollars in Billions

3-11 6-11 9-11 12-11 3-12 6-12 9-12 12-12 3-13 6-13 9-13 12-13 3-14 6-14 9-14 12-14 3-15 6-15 9-15 12-15 3-16 6-16 9-16

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

3-11 6-11 9-11 12-11 3-12 6-12 9-12 12-12 6-133-13 9-13 12-13 6-143-14 12-149-14 6-153-15 9-15 12-15 9-166-163-16

Fund Balance as a Percent of Estimated Insured Deposits

0.4

0.6

0.8

1.2

1.0

0.2

0.0

-0.2

SOURCE: Commercial Bank Call and Thrift Financial Reports

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

noninterest-bearing transaction accounts.
2016

FINANCIAL HIGHLIGHTS 85

 DEPOSIT INSURANCE FUND SELECTED STATISTICS

Dollars in Millions

For the years ended December 31

2016 2015 2014

Financial Results

Revenue $10,674 $9,304 $8,965 

Operating Expenses 1,715 1,687 1,664 

Insurance and Other Expenses (includes provision for losses) (1,564) (2,240) (8,299)

Net Income 10,524 9,857 15,600 

Comprehensive Income 10,561 9,820 15,589 

Insurance Fund Balance $83,162 $72,600 $62,780 

Fund as a Percentage of Insured Deposits (reserve ratio) 1.18%3 1.11% 1.01%

Selected Statistics

Total DIF-Member Institutions1 5,9803 6,182 6,509 

Problem Institutions 1323 183 291 

Total Assets of Problem Institutions $24,9173 $46,780 $86,712 

Institution Failures 5 8 18 

Total Assets of Failed Institutions in Year2 $277 $6,706 $2,914 

Number of Active Failed Institution Receiverships 378 446 481 

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 filed by the institution prior to failure.

3 As of September 30, 2016.
THIS PAGE INTENTIONALLY LEFT BLANK