Federal Deposit
Insurance Corporation

The attached report highlights the Corporation’s financial activities and results for the quarter ended March 31, 2015.

• During the first quarter of 2015, the Deposit Insurance Fund (DIF) balance increased by $2.5 billion, from $62.8 billion to $65.3 billion.  This quarterly increase was primarily due to $2.2 billion of assessment revenue and a $426 million decrease in the provision for insurance losses, partially offset by $396 million in operating expenses.

• During the first quarter of 2015, the FDIC was named receiver for 4 failed institutions. Doral Bank, which failed on February 27, 2015 and had assets at time of failure of $4.9 billion, was the largest bank failure since April 2010. The combined assets at inception for all four failed institutions totaled $5.3 billion with a total estimated loss of $848 million.  The corporate cash outlay during the first quarter for these failures was approximately $1.7 billion.

• Through March 31, 2015, overall Corporate Operating Budget expenditures were below budget by 12 percent ($64 million).  This variance was primarily the result of vacancies in budgeted positions, lower spending in the Equipment and Outside Services – Personnel categories in the Ongoing Operations component of the budget, and lower-than-budgeted spending for contractual services in the Receivership Funding component of the budget.

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