Chief Financial Officer's (CFO) Report to the Board
Executive Summary - First Quarter 2016
The attached report highlights the Corporation’s financial activities and results for the quarter ended March 31, 2016.
- During the first quarter of 2016, the Deposit Insurance Fund (DIF) balance increased by $2.5 billion, from $72.6 billion to $75.1 billion. This quarterly increase was primarily due to $2.3 billion of assessment revenue, a $412 million unrealized gain on U.S. Treasury investments, and $147 million of interest on U.S. Treasury obligations, partially offset by $415 million in operating expenses.
- During the first quarter of 2016, the FDIC was named receiver for 1 failed institution. North Milwaukee State Bank, which failed on March 11, 2016, had assets at time of failure of $64 million with an estimated loss to the DIF of $10 million. The corporate cash outlay during the first quarter for this failure was approximately $10 million.
- Through March 31, 2016, overall FDIC Operating Budget expenditures were below budget by 11 percent ($57 million). This variance was primarily the result of vacancies in budgeted positions and lower-than-budgeted spending for equipment and contractual services in the Ongoing Operations component of the budget and 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.