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Executive
Summary - Second Quarter 2013
The
attached report highlights the Corporation’s financial activities
and results for the quarter ended June 30, 2013.
- During the second quarter of 2013, the Deposit Insurance Fund (DIF) balance increased by $2.2 billion, from $35.7 billion to $37.9 billion. This quarterly increase was primarily due to $2.5 billion of assessment revenue and a decrease in the provision for insurance losses of $33 million, partially offset by $439 million of operating expenses
- On June 28, 2013, the DIF refunded $5.9 billion in prepaid assessments to the 5,625 insured depository institutions that had remaining prepaid assessment balances. This final repayment marked the end of the prepaid assessment initiative, which began with the collection of $45.7 billion in prepaid assessments on December 30, 2009.
- During the second quarter of 2013, the FDIC was named receiver for 12 failed institutions. The combined assets at inception for these institutions totaled approximately $1.4 billion with a total estimated loss of $270 million. The corporate cash outlay during the second quarter for these failures was approximately $296 million.
- Through June 30, 2013, overall Corporate Operating Budget expenditures were below budget by 15 percent ($189 million). Approximately half of this variance was the result of lower-than-budgeted spending for contractual services and operations at the site of failed financial institutions in the Receivership Funding budget component. Vacancies in budgeted positions in both the Ongoing Operations and Receivership Funding budget components were also a major contributor to the variance.
On
the pages following is an assessment of each of the three major finance
areas: financial statements, investments, and budget.
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