The attached report highlights the Corporation’s financial activities and results for the quarter ended December 31, 2014.

• During the fourth quarter of 2014, the DIF balance increased by $8.5 billion, from $54.3 billion at September 30, 2014 to an all-time high of $62.8 billion.  The quarterly increase was primarily due to a $6.8 billion decrease in the provision for insurance losses and $2.0 billion of assessment revenue, partially offset by $408 million of operating expenses.  

• Based on the 4th Quarter 2014 estimated insured deposits and year-end fund balance, the DIF reserve ratio rose to 1.01 percent, from 0.88 percent as of September 30, 2014.  A year ago, the DIF reserve ratio was 0.79 percent. 

• During the fourth quarter of 2014, the FDIC was named receiver for 4 failed institutions.  The combined assets at inception for these institutions totaled $1.2 billion with a total estimated loss of $147 million.  The corporate cash outlay during the fourth quarter for these failures was approximately $354 million.

• Overall Corporate Operating Budget expenditures through December 31, 2014, were below budget by 10 percent ($244 million).  Spending in the Ongoing Operations component was $160 million, or 9 percent, under budget, largely due to underspending in the salaries and compensation, contractual services, and travel categories.  The variance in the Receivership Funding component was $83 million, or 14 percent, under budget, primarily due to lower-than-budgeted contract expenses for failed bank resolutions, and lower-than-anticipated asset management and marketing costs.

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