The attached report highlights the Corporation’s financial activities and results for the quarter ended June 30, 2015.

• During the second quarter of 2015, the Deposit Insurance Fund (DIF) balance increased by $2.3 billion, from $65.3 billion to $67.6 billion.  This quarterly increase was primarily due to $2.3 billion of assessment revenue and a $317 million decrease in the provision for insurance losses, partially offset by $434 million of operating expenses.

• During the second quarter of 2015, the FDIC was named receiver for 1 failed institution.  The assets at inception for this failed institution were $94 million with an estimated loss of $17 million.  The corporate cash outlay during the second quarter for this failure was approximately $29 million.

• Through June 30, 2015, overall Corporate Operating Budget expenditures were below budget by 7 percent ($74 million).  Spending in the Ongoing Operations component was $36 million, or 4 percent, under budget, largely due to underspending for salaries and compensation, equipment, and contractual services.  Spending in the Receivership Funding component was $37 million, or 16 percent, under budget, primarily due to lower-than-budgeted spending for contractual services related to failed financial institutions.

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