The attached report highlights the Corporation’s financial activities and results for the quarter ended September 30, 2014.

• During the third quarter of 2014, the DIF balance increased by $3.2 billion, from $51.1 billion at June 30, 2014 to an all-time high of $54.3 billion.  The previous high point of the DIF was at the end of the first quarter 2008 with a balance of $52.8 billion.  The quarterly increase was primarily due to $2.0 billion of assessment revenue and a $1.7 billion decrease in the provision for insurance losses, partially offset by $406 million of operating expenses. 

• During the third quarter of 2014, the FDIC was named receiver for 2 failed institutions.  The combined assets at inception for these institutions totaled $238 million with a total estimated loss of $48 million.  The corporate cash outlay during the third quarter for these failures was approximately $86 million.

• Through September 30, 2014, overall Corporate Operating Budget expenditures were below budget by 10 percent ($170 million).  Spending in the Ongoing Operations component was $119 million, or 9 percent, under budget, largely due to underspending in the salaries and compensation, contractual services, and equipment categories.  The variance in the Receivership Funding component was $51 million, or 11 percent, under budget, primarily due to lower-than-budgeted contract expenses attributable to less costly 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.