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

• During the first quarter of 2014, the DIF balance increased by $1.7 billion, from $47.2 billion to $48.9 billion.  This quarterly increase was primarily due to $2.4 billion of assessment revenue, partially offset by $422 million of operating expenses and a $348 million increase in the provision for insurance losses. 

• During the first quarter of 2014, the FDIC was named receiver for 5 failed institutions.  The combined assets at inception for these institutions totaled $643 million with a total estimated loss of $92 million.  The corporate cash outlay during the first quarter for these failures was approximately $151 million.

• Through March 31, 2014, overall Corporate Operating Budget expenditures were below budget by 10 percent ($58 million).  This variance was primarily the result of lower-than-budgeted spending for contractual services, largely in the Receivership Funding component of the budget; and, vacancies in budgeted positions, largely in the Ongoing Operations component of the budget.

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