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Executive
Summary - Fourth Quarter 2013
The
attached report highlights the Corporation’s financial activities
and results for the quarter ended December 31, 2013.
- During the fourth quarter of 2013, the DIF balance increased by $6.4 billion, from $40.8 billion to $47.2 billion (audited). This quarterly increase was primarily due to $2.2 billion of assessment revenue and a $4.6 billion decrease in the provision for insurance losses, partially offset by $436 million of operating expenses.
- During 2013, the FDIC continued to make significant progress in rebuilding the DIF. Since year-end 2009 when the fund balance fell to a low point of negative $20.9 billion, the DIF balance has increased by $68.1 billion to $47.2 billion as of year-end 2013. This increase in the DIF balance was primarily due to cumulative assessment revenue of $49.2 billion and a decrease of $15.1 billion in the estimated losses for actual and anticipated bank failures.
- During the fourth quarter of 2013, the FDIC was named receiver for 2 failed institutions. The combined assets at inception for these institutions totaled approximately $159 million with a total estimated loss of $16 million. The corporate cash outlay during the fourth quarter for these failures was approximately $21 million.
- Overall Corporate Operating Budget expenditures through December 31, 2013, were 15 percent ($396 million) below budget, largely due to substantial under spending in the Receivership Funding budget component. Spending in that component was $227 million, or 25 percent, under budget, primarily due to lower-than-budgeted spending for contractual services and operations at the site of failed financial institutions. Spending in the Ongoing Operations component was $169 million, or 9 percent, under budget, largely due to under spending for salaries and compensation, contractual services, and travel.
On
the pages following is an assessment of each of the three major finance
areas: financial statements, investments, and budget.
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