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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

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Executive Summary - Fourth Quarter 2009

The attached report highlights the Corporation’s financial activities and results for the period ending December 31, 2009.

  • The year-end financial results presented in this report are unaudited. We expect our external auditor, the U. S. Government Accountability Office, to conclude their audits of the FDIC financial statements in April.
  • For the fourth quarter of 2009, the Deposit Insurance Fund (DIF) balance decreased by $12.6 billion (153 percent) to negative $20.9 billion. This decrease was primarily due to a $17.8 billion increase in the provision for insurance losses, which was partially offset by a $3.1 billion increase in assessment revenue. Although the fund balance decreased in the fourth quarter, the unrestricted cash and cash equivalents increased by $45.5 billion, primarily due to the collection of prepaid assessments.
  • During the fourth quarter of 2009, the FDIC was named receiver for 45 failed institutions. The combined assets at inception for these institutions totaled approximately $64.9 billion with a total estimated loss of $10.0 billion. The corporate cash outlay during the fourth quarter for these failures was $7.8 billion. The FDIC entered into loss-share agreements with the acquiring institution for 34 of these receiverships, with expected loss-share payments due to the acquirers of approximately $6.4 billion over the length of the agreements.
  • For the year ending December 31, 2009, expenditures from the Corporate Operating Budget and the Investment Budget ran below budget by 9 percent ($226.8 million) and 2 percent ($0.1 million), respectively. The variance with respect to the Corporate Operating Budget was primarily the result of lower spending for contractual services in the Receivership Funding component of the budget. For the information technology projects that make up the Investment Budget, detailed quarterly reports are provided separately to the Board by the Capital Investment Review Committee.

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

Last Updated 04/13/2010

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