II. Financial Highlights
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.
For 2010, the DIF’s comprehensive income was
$13.5 billion compared to a comprehensive loss
of $38.1 billion during 2009. This year-over-year
change of $51.6 billion was primarily due
to a $58.6 billion decline in the provision for
insurance losses, partially offset by a $4.1 billion
decrease in assessments earned (largely attributable
to the 2009 special assessment).
The provision for insurance losses was negative
$848 million for 2010, compared to positive
$57.7 billion for 2009. The 2009 provision
reflected the significant losses estimated to be
incurred by the DIF from the 2009 and future
failures. In contrast, the 2010 negative provision
is primarily impacted by a reduction in the
contingent loss reserve due to the improvement
in the financial condition of institutions that were
previously identified to fail and adjustments to the
estimated losses for banks that have failed.
The DIF’s total liquidity declined by $19.9
billion, or 30 percent, to $46.2 billion during
2010. The decrease was primarily the result
of disbursing $28.8 billion to fund 157 bank
failures during 2010, although it should be noted
that 130 of these failures were resolved as cash-conserving
loss-share transactions (in which the
acquirers purchased substantially all of the failed
institutions’ assets and the FDIC and the acquirers
entered into loss-share agreements) requiring
lower initial resolution funding. Moreover, during
2010, the DIF received $13.6 billion in dividends
and other payments from its receiverships, which
helped to mitigate the DIF liquidity’s decline.
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 |
|
Deposit Insurance Fund Selected Statistics
|
For the years ended December 31 |
Dollars in Millions |
|
2010 |
2009 |
2008 |
Financial Results |
Revenue |
$13,380 |
$24,706 |
$7,306 |
Operating Expenses |
1,593 |
1,271 |
1,033 |
Insurance and Other Expenses (includes provision for loss) |
(1,518) |
59,438 |
43,306 |
Net Income (Loss) |
13,305 |
(36,003) |
(37,033) |
Comprehensive Income (Loss) |
13,510 |
(38,138) |
(35,137) |
Fund Balance |
$(7,352) |
$(20,862) |
$17,276 |
Reserve Ratio |
(0.12) % |
(0.39) % |
0.36 % |
Selected Statistics |
Total DIF-Member Institutions¹ |
7,657 |
8,012 |
8,305 |
Problem Institutions |
884 |
702 |
252 |
Total Assets of Problem Institutions |
$390,017 |
$402,782 |
$159,405 |
Institution Failures |
157 |
140 |
25 |
Total Assets of Failed Institutions in Year² |
$92,085 |
$169,709 |
$371,945 |
Number of Active Failed Institution Receiverships |
336 |
179 |
41 |
|