83

FINANCIAL 

HIGHLIGHTS

III.
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8585

2017

FINANCIAL HIGHLIGHTS

In its role as deposit insurer of financial institutions, 

the FDIC promotes the safety and soundness of 

insured depository institutions (IDIs). The following 

financial highlights address the performance of the 

Deposit Insurance Fund.

DEPOSIT INSURANCE FUND 

PERFORMANCE

The DIF balance was $92.7 billion at December 31, 

2017, compared to $83.2 billion at year-end 2016. 

Assessment revenue, including assessment surcharges 

on large banks, drove the growth in the DIF. 

Comprehensive income totaled $9.6 billion for 2017, 

compared to comprehensive income of $10.6 billion 

during 2016, a $975 million year-over-year decrease.

Assessment revenue was $10.6 billion for 2017, 

compared to $10.0 billion for 2016. The 

combination of a higher assessment base, assessment 

surcharges on larger institutions, and lower regular 

assessment rates for all IDIs resulted in the net 

increase in assessment revenue of $608 million.

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

for 2017 was $1.1 billion, compared to interest 

revenue of $671 million in 2016. The $386 million 

year-over-year increase resulted from a combination 

of factors: (1) the Federal Reserve increased the 

federal funds target rate, resulting in an increase in the 

average overnight investment interest rate; (2) higher 

yields on new long-term investments purchased as 

older long-term investments matured; and (3) steady 

growth in the investment portfolio balance. 

The provision for insurance losses was negative 

$183 million for 2017, compared to negative $1.6 

billion for 2016. The negative provision for 2017 

primarily resulted from a $969 million decrease to 

the estimated losses for prior year failures offset by 

a $718 million increase for higher-than-anticipated 

estimated losses for current year failures, as compared 

to the contingent liability at year-end 2016. The 

2016 negative provision was almost fully attributable 

to reductions in estimated losses for prior year failures. 

The $969 million decrease in the estimated losses 

for prior year failures was primarily attributable to 

(1) a decrease in receivership shared-loss liability 

cost estimates of $420 million primarily due to 

lower-than-anticipated losses on covered assets, 

reductions in shared-loss cost estimates from the early 

termination of shared-loss agreements (SLAs) during 

the year, and unanticipated recoveries from SLAs 

where the commercial loss coverage has expired but 

the recovery period remains active; (2) $383 million 

of unanticipated recoveries received, or expected to be 

received, by receiverships from tax refunds, litigation 

settlements, and professional liability claims; and (3) a 

$124 million decrease in receivership contingent legal 

and representation and warranty liabilities, as well as 

projected future receivership expenses. 

During 2017, the DIF recognized an unrealized loss 

on U.S. Treasury securities of $500 million, while in 

2016 there was an unrealized gain of $29 million. 

The unrealized loss in 2017 was the result of yields 

rising dramatically across all maturity sectors of the 

Treasury yield curve, resulting in declines in the 

securities’ market values relative to their book values. 

The DIF’s cash, cash equivalents, and U.S. Treasury 

investment portfolio balance was $85.1 billion at 

year-end 2017, an increase of $10.3 billion from the 

year-end 2016 balance of $74.8 billion. This increase 

was primarily due to assessment collections of $10.6 

billion and recoveries from resolutions of $4.0 billion, 

less operating expenses paid of $1.8 billion and 

resolution disbursements of $3.0 billion. 
ANNUAL REPORT

86 FINANCIAL HIGHLIGHTS

ESTIMATED DIF INSURED DEPOSITS

SOURCE: Call Reports

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

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 12-16 3-17 6-17 9-17

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 9-176-173-1712-16

Fund Balance as a Percent of Estimated Insured Deposits 0.4

0.6

0.8

1.2

1.4

1.0

0.2

0.0

-0.2
2017

FINANCIAL HIGHLIGHTS 87

DEPOSIT INSURANCE FUND SELECTED STATISTICS

Dollars in Millions

For the years ended December 31

2017 2016 2015

Financial Results

Revenue $11,664 $10,674 $9,304 

Operating Expenses 1,739 1,715 1,687 

Insurance and Other Expenses (includes provision for losses) (181) (1,564) (2,240)

Net Income 10,105 10,524 9,857 

Comprehensive Income 9,586 10,561 9,820 

Insurance Fund Balance $92,747 $83,162 $72,600 

Fund as a Percentage of Insured Deposits (reserve ratio) 1.28%3 1.20% 1.11%

Selected Statistics

Total DIF-Member Institutions1 5,7383 5,913 6,182 

Problem Institutions 1043 123 183 

Total Assets of Problem Institutions $16,0443 $27,624 $46,780 

Institution Failures 8 5 8 

Total Assets of Failed Institutions in Year2 $5,082 $277 $6,706

Number of Active Failed Institution Receiverships 338 378 446 

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, 2017.