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2012 Annual Report

II. 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 funds, and discuss the corporate operating budget and investment spending.

Deposit Insurance Fund Performance

The FDIC administers the Deposit Insurance Fund (DIF) and the FSLIC Resolution Fund (FRF), which fulfills the obligations of the former Federal Savings and Loan Insurance Corporation (FSLIC) and the former Resolution Trust Corporation (RTC). The following summarizes the condition of the DIF. (See the accompanying graphs on FDIC-Insured Deposits and Insurance Fund Reserve Ratios on the following page.)

For 2012, the DIF’s comprehensive income totaled $21.1 billion compared to comprehensive income of $19.2 billion during 2011. This $1.9 billion year-over-year increase was primarily due to a $3.3 billion increase in revenue from excess Debt Guarantee Program (DGP) fees previously held as systemic risk deferred revenue, partially offset by a $1.1 billion decrease in assessments and a $191 million increase in the provision for insurance losses.

As the TLGP expired at year-end, the DIF recognized revenue of $5.9 billion in 2012, representing the remaining deferred revenue not absorbed by the TLGP for losses. Through the end of the debt issuance period, the FDIC collected $10.4 billion in fees and surcharges under the DGP. In addition, the FDIC collected Transaction Account Guarantee Program (TAG) fees of $1.2 billion for unlimited coverage for noninterest-bearing transaction accounts held by IDIs on all deposit amounts exceeding the fully insured limit of $250,000. Since inception of the program, the TLGP incurred estimated losses of $153 million and $2.1 billion on DGP and TAG Program claims, respectively. Over the duration of the TLGP, $8.5 billion in TLGP assets were transferred to the DIF. In addition, during 2009, surcharges of $872 million were collected and deposited into the DIF.

Assessment revenue was $12.4 billion for 2012. The decrease of $1.1 billion, from $13.5 billion in 2011, was primarily due to lower average assessment rates in 2012, resulting from improvement in the financial condition of the banking industry.

The provision for insurance losses was negative $4.2 billion for 2012, compared to negative $4.4 billion for 2011. The negative provision for 2012 primarily resulted from a reduction in the contingent loss reserve due to the improvement in the financial condition of institutions that were previously identified to fail, and a reduction in the estimated losses for institutions that have failed in the current and prior years.

ESTIMATED DIF INSURED DEPOSITS

Bar Chart for Estimated DIF Insured Deposits

SOURCE: Commercial Bank Call and Thrift Financial Reports

Note: Beginning in the fourth quarter of 2010, estimated insured deposits include the entire balance of noninterest-bearing transaction accounts.

DEPOSIT INSURANCE FUND RESERVE RATIOS

Bar Chart for Deposit Insurance Fund Reserve Ratios

 

 Deposit Insurance Fund Selected Statistics
Dollars in Millions

 

For the years ended December 31

2012

2011

2010

Financial Results

Revenue

$18,522

$16,342

$13,380

Operating Expenses

1,778

1,625

1,593

Insurance and Other Expenses (includes provision for loss)

(4,377)

(4,541)

(1,518)

Net Income (Loss)

21,121

19,257

13,305

Comprehensive Income (Loss)

21,131

19,179

13,510

Insurance Fund Balance

$32,958

$11,827

$(7,352)

Fund as a Percentage of Insured Deposits (reserve ratio)

0.35%*

0.17%

(0.12)%

Selected Statistics

Total DIF-Member Institutions1

7,181*

7,357

7,657

Problem Institutions

651

813

884

Total Assets of Problem Institutions

$232,701

$319,432

$390,017

Institution Failures

51

92

157

Total Assets of Failed Institutions in Year2

$11,617

$34,923

$92,085

Number of Active Failed Institution Receiverships

463

426

336

* Figures are as of September 30, 2012.

1Includes commercial banks and savings institutions, but does not include U.S. insured branches of foreign banks.

2Total asset data are based upon the last Call Report filed by the institution prior to failure.


Last Updated 07/09/2013 communications@fdic.gov