Federal Deposit
Insurance Corporation

The attached report highlights the Corporation’s financial activities and results for the quarter ending June 30, 2012.

• During the second quarter of 2012, the Deposit Insurance Fund (DIF) balance increased by $7.4 billion, from $15.3 billion to $22.7 billion.  This quarterly increase was primarily due to $4.0 billion in revenue from excess Debt Guarantee Program (DGP) fees previously held as systemic risk deferred revenue, $2.9 billion in assessment revenue, and a decrease in the provision for insurance losses of $807 million, partially offset by $407 million in operating expenses.  Over the ten consecutive quarters since the beginning of 2010, the fund balance has increased a total of $43.6 billion.

• During the second quarter of 2012, the FDIC was named receiver for 15 failed institutions.  The combined assets at inception for these institutions totaled approximately $2.8 billion with a total estimated loss of $520 million.  The corporate cash outlay during the second quarter for these failures was approximately $463 million.

• Through June 30, 2012, overall Corporate Operating Budget expenditures were below budget by 19 percent ($299 million).  This variance was primarily the result of lower-than-budgeted spending for contractual services and operations at the site of failed financial institutions in the Receivership Funding component.

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