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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

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Chief Financial Officer's (CFO) Report to the Board

301 Moved Permanently

301 Moved Permanently


Executive Summary - Third Quarter 2009

This report highlights the Corporation’s financial activities and results for the period ending September 30, 2009.

  • The Deposit Insurance Fund (DIF) balance decreased by $18.6 billion (180 percent) to negative $8.2 billion during the third quarter of 2009. The third quarter 2009 decrease was primarily due to a $21.7 billion increase in the provision for insurance losses, which was partially offset by a $3.0 billion increase in assessment revenue.
  • During the third quarter of 2009, the FDIC was named receiver for 50 failed institutions. The combined assets at inception for these institutions totaled approximately $70.2 billion with an estimated loss totaling $14.3 billion. The corporate cash outlay during the third quarter for these failures was $16.5 billion. Thirty-six receiverships entered into loss-share agreements with the acquiring institutions and are expected to pay approximately $7.6 billion to acquirers over the length of the agreements.
  • For the nine months ending September 30, 2009, Corporate Operating and Investment Budget related expenditures ran 6 percent ($92.1 million) below budget and 3 percent ($0.1 million) over budget,1 respectively. The variance with respect to the Corporate Operating Budget was primarily in the Receivership Funding budget component, where spending in all except one expense category was below budget through the third quarter. This Ongoing Operations Budget surplus is expected to be consumed as expenses increase during the fourth quarter due to accelerating resolution activity. Detailed quarterly reports are provided separately to the Board by the Capital Investment Review Committee for those information technology projects that are included in the Investment Budget.

On the pages following is an assessment of each of the three major finance areas: financial statements, investments, and budget.

1Budgets for investment projects are approved on a multi-year basis; the year-to-date budget amount reflects the 2009 spending estimates for approved projects. Both IT projects with investment budget funding remain within their approved investment budget amounts.

Last Updated 12/10/2009

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