Federal Deposit Insurance Corporation

55017th Street, N.W., Washington, D.C. 20429-9990 Deputy to the Chairman and CFO

March 14, 2014

MEMORANDUM TO: The Board of Directors

FROM: Steven O. Appi6~

De p ut Y to the Chairman and C/

Chief Financial Officer

Craig R. JarvillL~'~~

Director, Division of Finance

SUBJECT: Fourth Quarter 2013 CFO Report to the Board

The attached report highlights the Corporation's financial activities and results for the quarter ended

December 31, 2013.

Executive Summary

• 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.
I. Corporate Fund Financial Results (See pages 8 - 9 for detailed data and charts.)

Deposit Insurance Fund

• For 2013, the DIF's comprehensive income totaled $14.2 billion compared to comprehensive

income of $21.1 billion during 2012. This $6.9 billion year-over-year decrease was primarily

due to a $6.0 billion decrease in other revenue and a $2.7 billion decrease in assessments,

partially offset by a $1.4 billion decrease in provision for insurance losses.

• The year-over-year decrease of $6.0 billion in other revenue primarily resulted from the

recognition of $5.9 billion in revenue in 2012 for the Debt Guarantee Program fees that were

previously held as systemic risk deferred revenue.

• The provision for insurance losses was negative $5.7 billion for 2013, compared to negative

$4.2 billion for 2012. The negative provision primarily resulted from a $1.0 billion decrease in

the contingent liability for anticipated failures due to the improvement in the financial condition

of troubled institutions and a $4.8 billion decrease in the estimated losses for institutions that

have failed in prior years.

Assessments

• During the fourth quarter of 2013, the DIF recognized $2.2 billion in assessment revenue for

the estimated fourth quarter 2013 insurance coverage. On December 30, 2013, the FDIC

collected $2.4 billion in DIF assessments for third quarter 2013 insurance coverage.

• Continued improvements in banks' CAMELS ratings and financial condition have reduced

banks' risk-based assessment rates, resulting in a decline in DIF assessment revenue.

3.5

3

2.5

'm Z

c

to

1.5

1

0.5

0

Quarterly DIF Assessment Revenue

Mar '12 Jun'12 Sep '12 Dec '12 Mar'13 Jun'13 Sep '13 Dec '13

2
II. Investment Results (See pages 10 - 11 for detailed data and charts.)

DIF Investment Portfolio

• On December 31, 2013, the total liquidity (also total market value) of the DIF investment

portfolio stood at $42.5 billion, higher than its December 31, 2012, balance of $38.2 billion.

During the year, interest revenue, receivership dividends, deposit insurance assessment

collections, and proceeds from the disposition of the Citigroup TruPS exceeded resolutionrelated outlays and operating expenses.

On December 31, 2013, the DIF investment portfolio's yield was 0.45 percent, up nine basis

points from its December 31, 2012, yield of 0.36 percent. During the year, newly purchased

Treasury securities generally had higher yields than maturing securities, primarily contributing

to the increase in portfolio yield.

In accordance with the approved fourth quarter 2013 DIF portfolio investment strategy, staff

purchased a total of 13 short- to intermediate-maturity conventional Treasury securities. The

13 securities had a total par value of $12.1 billion, a weighted average yield of 0.51 percent,

and a weighted average maturity (WAM) of 1.91 years.

III. Budget Results (See pages 12 - 13 for detailed data.)

Approved Budget Modifications

The 2013 Budget Resolution delegated to the Chief Financial Officer (CFO) and selected other

officials the authority to reallocate funds within the 2013 Corporate Operating Budget, provided

that such reallocations did not increase the total amount approved for either the Ongoing

Operations or Receivership Funding budget components. The following budget reallocations

were approved during the fourth quarter in accordance with the authority delegated by the Board

of Directors. None of these modifications changed total approved budgets for either the 2013

Ongoing Operations or Receivership Funding budget components or the overall 2013 Corporate

Operating Budget approved by the Board.

In November 2013, the CFO approved a reallocation of $32,000,000 in budget authority

within the Receivership Funding budget component from the Corporate Unassigned

contingency reserve ($14,343,746) and the Division of Resolutions and Receiverships

(DRR) budget ($17,656,254) to the Legal Division budget. This reallocation increased the

Outside Services —Personnel budget of the Legal Division from $118,984,773 to

$150,984,773 to ensure that sufficient funds were available to cover outside counsel

expenses resulting from the increased number of professional liability cases that are being

presented to and approved by the Board (approximately $12.6 million of this amount was

not spent by year-end). In addition, the CFO approved the reallocation of $1,300,000 in

budget authority within the Ongoing Operations component from the Corporate

Unassigned contingency reserve to the Salary and Compensation budgets of the Division

of Administration (DOA) ($600,000), Corporate University (CU) ($350,000), Information

Security and Privacy Staff (ISPS) ($150,000), Office of Communication (OCOM)

($100,000), and the Office of the Chief Information Officer (CIO) ($100,000) for salary and

fringe benefit costs that were greater than previously projected.

• In December 2013, the CFO approved the reallocation of $103,500 in budget authority

within the Ongoing Operations budget of the Executive Offices to provide additional funds

3
for the Chairman's Office and the Office of the CIO travel budgets to cover regular duty

travel expenses planned by those offices.

Following these budget reallocations, the unused amounts remaining within the Corporate

Unassigned contingency reserve for the Ongoing Operations budget component was

$24,406,393. The November reallocation fully utilized the remaining Receivership Funding

contingency reserve.

Spending Variances

Significant spending variances by major expense category and division/office are discussed

below. Significant spending variances for the year ending December 31, 2013, are defined as

those that either (a) exceed the annual budget for a major expense category or total

division/office budget by any amount, or (b) are under the annual budget for a major expense

category or division/office by an amount that exceeds $1 million and represents more than three

percent of the major expense category or total division/office budget.

Significant Spending Variances by Major Expense Category

Ongoing Operations

There were significant spending variances in all major expense categories in the Ongoing

Operations component of the 2013 Corporate Operating Budget.

Salaries and Compensation expenditures were approximately $70 million, or 6 percent,

less than budgeted. The Division of Risk Management Supervision (RMS) ($19 million),

the Legal Division ($12 million), the Division of Consumer Protection (DCP) ($6 million),

the Division of Insurance and Research (DIR) ($6 million), the Division of Information

Technology (DIT) ($6 million), and DRR ($5 million) all spent less than budgeted in this

expense category, primarily due to vacancies in budgeted positions. Most of the variances

were related to authorized non-permanent positions.

Outside Services —Personnel expenditures were approximately $57 million, or 20 percent,

less than budgeted. Approximately $16 million of this variance was attributable to unused

budget authority in the Corporate Unassigned contingency reserve. The CIO Council

spent $12 million less than budgeted, largely due to lower-than-planned spending on

discretionary systems development projects, and the Information Management and

Compliance (IMAC) project. The Office of Complex Financial Institutions (OCFI) spent $4

million less than budgeted due to the cancellation of one planned project and the

termination of another existing project. DOA spent $4 million less than budgeted, primarily

due to significant savings from a new Acquisition Services contract with decreased hourly

rates charged; lower-than-anticipated contract expenses for services associated with the

Student Residence Center; a decline in administrative support requirements performed by

the contractors; significant savings from using FDIC staff instead of contractors to prepare

pre-retirement estimates and updates to the FDIC Human Capital plan; and the

cancellation of training seminars due to low attendance. In addition, DRR spent $3 million

less than budgeted, primarily due to delays in initiating projects in its Complex Financial

Institutions Branch, and DIT spent $3 million less than budgeted because expected

expenses were not incurred for transition to new Information Technology Application

Services (ITAS) contracts due to delays in awarding those contracts.

• Travel expenditures were approximately $19 million, or 18 percent, less than budgeted.

RMS spent $7 million less than budgeted and DCP spent $2 million less than budgeted,
primarily due to vacancies in field examination positions that resulted in lower regular duty

and relocation travel expenses. The Corporate Employee Program in Corporate University

(CU-CEP) spent $2 million less than budgeted for regular travel for Financial Institution

Specialists. In addition, DRR spent $2 million less than anticipated for regular duty travel

and relocation costs, and OCFI spent nearly $2 million less than budgeted for relocation

costs during the year.

Building expenditures were approximately $11 million, or 11 percent, less than budgeted.

This variance was largely due to unanticipated contractor delays in the Student Residence

Center pipe replacement project; delays in awarding a contract for the Building

Management System (BMS) project in the San Francisco Regional Office; a change in

approach to the design process for the 550 Building HVAC replacement project; lowerthan-projected utilities consumption; and successful negotiations with landlords to pay for

field office build-outs and architecture and engineering (A&E) expenses as part of the

lease agreement.

Equipment expenditures were approximately $6 million, or 7 percent, less than budgeted.

DOA spent $5 million less than budgeted due to delays in the deployment of the new

Personal Identification Verification (PIV) Card access control system; decisions to repair

and refurbish existing furniture, fixture and equipment (FF&E), whenever possible, rather

than replace it; and reduced lease costs due to the conversion of a large number of copiers

from lease to purchase.

• Outside Services —Other expenditures were approximately $3 million, or 15 percent, less

than budgeted because of lower-than-expected mail-related services; a reduction in

catering expenses for meetings and conferences; increased use of in-house printing

services; and successful efforts to reduce the quantities of printed materials ordered.

• Other Expenses were approximately $4 million, or 27 percent, less than budgeted. The

variance reflected substantial underutilization by employees of the funds budgeted for

Professional Learning Accounts and lower-than-projected expenses for the purchase of

corporate office supplies by DOA.

Receivership Funding

The Receivership Funding component of the 2013 Corporate Operating Budget includes funding

for expenses that are incurred in conjunction with institution failures and the management and

disposition of the assets and liabilities of the ensuing receiverships, except for salaries, benefits,

and related expenses for permanent employees assigned to the receivership management

function.

There were significant spending variances in all major expense categories in the Receivership

Funding component of the 2013 Corporate Operating Budget:

• Salaries and Compensation ($19 million, or 10 percent, less than budgeted). This variance

was attributable to vacancies in budgeted non-permanent positions, primarily in the

temporary satellite offices.

• Outside Services-Personnel ($160 million, or 27 percent, less than budgeted). This

variance was attributable to less costly resolutions and lower-than-anticipated expenses for

asset management and marketing costs under Receivership Assistance Contracts (RACs),

contractual support for the review of loss share agreements, and due diligence, owned real

estate (ORE), loan servicing, and securitization services.

5
• Travel ($13 million, or 57 percent, less than budgeted). The variance in the Travel

category was due to fewer closings than anticipated and fewer trips needed for loss share

agreement oversight and FDIC-managed loans.

• Buildings ($8 million, or 22 percent, less than budgeted). This variance occurred as a

result ofshorter-than-expected operations at the site of failed banks.

• Equipment ($5 million, or 45 percent, less than budgeted). This variance was due to

lower-than-anticipated costs for online information services, software purchases, and

software maintenance costs.

• Outside Services —Other ($2 million, or 25 percent, less than budgeted). The variance in

the Outside Service —Other category was due to lower than anticipated costs for

insurance, advertising, mail, and bank service fees.

• Other Expenses ($21 million, or 51 percent, less than budgeted). The variance in the

Other Expenses category was attributable to the disposition of failed bank assets and the

transfer of banking operations to DRR's Dallas office faster than expected at many failed

bank sites.

Significant Spending Variances by Division/Office'

All divisions and offices had significant spending variances from their 2013 budgets.

• DRR spent $197 million, or 26 percent, less than budgeted. Approximately $186 million of

this under spending was in the Receivership Funding budget component due to lowerthan-anticipated resolutions and receivership workload.

The Legal Division spent $38 million, or 12 percent, less than budgeted. Approximately

half of this variance ($19 million) was due to under spending in the Salaries and

Compensation expense category ($12 million in the Ongoing Operations budget

component and $7 million in the Receivership Funding budget component), largely due to

vacancies in budgeted non-permanent positions and slower-than-projected hiring to fill

those vacancies. Most of the remainder of the variance reflected under spending for

outside legal services in the Receivership Funding budget component.

• RMS spent $29 million, or 5 percent, less than budgeted. This variance was largely

attributable to vacancies in budgeted non-permanent examination positions and lowerthan-budgeted examination travel expenses resulting from those vacancies.

• DOA spent $27 million, or 10 percent, less than budgeted. In its Ongoing Operations

budget, this variance was largely attributable to lower-than-budgeted spending for facilities

expenses, equipment, and contractor support. In its Receivership Funding budget, the

variance was attributable to lower-than-projected contract expenses to support bank

closings and related activities.

• DIT spent $27 million, or 10 percent, less than budgeted. This variance was largely

attributable to lower-than-projected expenses to support failed bank closings and

vacancies in budgeted positions.

Information on division/office variances reflects variances in both the Corporate Operating and Investment

Budgets.

L^'
• The CIO Council spent $10 million, or 14 percent, less than budgeted. This variance was

largely due to lower-than-expected spending on discretionary systems development

projects and the IMAC project.

• DCP spent $9 million, or 5 percent, less than budgeted. This variance was primarily

attributable to vacancies in budgeted non-permanent examination positions and lowerthan-budgeted examination travel expenses resulting from those vacancies.

• OCFI spent $8 million, or 21 percent, less than budgeted. This variance was attributable to

lower-than-budgeted spending for contractor services, vacancies in budgeted positions

and lower-than-expected spending for relocation expenses.

• DIR spent $7 million, or 15 percent, less than budgeted, primarily attributable to vacancies

in budgeted positions and slower-than-projected hiring to fill those vacancies.

• CU spent $6 million, or 14 percent, less than budgeted, including under spending of $4

million in its CEP budget (CU-CEP) and $2 million in its regular organizational budget (CUCorporate). The CU-CEP variance was primarily due to lower-than-budgeted travel

expenses for FISs in the CEP and the cancellation of one scheduled CEP class that

reduced spending for both Salaries and Compensation (including overtime) and Travel.

The CU-Corporate variance was primarily due to lower-than-projected expenditures for

budgeted projects in the Dallas Learning Center and the Schools of Supervision,

Insurance, Leadership Development, and Corporate Operations.

• The combined Executive Support Offices spent approximately $6 million, or 14 percent,

less than budgeted. This variance was mostly attributable to lower-than-budgeted

spending for contract services by the Office of Corporate Risk Management and the Office

of Minority and Women Inclusion and slower-than-projected hiring to fill budgeted

positions.

• The Division of Finance (DOF) spent $5 million, or 12 percent, less than budgeted. This

variance was attributable to vacancies in budgeted positions, slower-than-projected hiring

to fill those vacancies, and lower-than-budgeted spending for contractor accounting and

auditing services.

• The Office of Inspector General spent $4 million, or 11 percent, less than budgeted

because of vacancies in budgeted positions and lower-than-projected travel expenses.

• The Executive Offices spent $1 million, or 9 percent, less than budgeted due largely to

lower-than-projected hiring to fill vacant authorized positions.

• The Corporate Unassigned contingency reserve had $24 million in unused budget

authority remaining at the end of the year. That unused budget authority lapsed on

December 31, 2013.

7
FDIC CFO REPORT TO THE BOARD -Fourth Quarter 2013

Investment in U.S. Treasu obli ations, net 38,511 32,729 5,782 34,869 3,642

Trust referred securities 2,264 2,264)

Assessments receivable, net 2,228 2,391 163) 1,007 1,221

Interest receivable on investments and other assets, net 511 409 102 433 78

Receivables from resolutions, net 16,345 16,938 (593) 23,120 (6,775)

Pro e and e ui ment, net 377 373 4 393 16)

Total Assets 61,515 58,170 3,345 65,186 (3,671)

Accounts pa able and other liabilities 300 265 35 350 (50)

Unearned revenue repaid assessments 1,576 (1,576)

Refunds of re aid assessments 5,675 (5,675)

Liabilities due to resolutions 12,626 15,754 3,128) 21,174 (8,548)

Postretirement benefit liabilit 194 224 30) 224 (30)

Contin ent liabilit for anticipated failures 1,199 1,164 35 3,221 (2,022)

Contin ent liabilit for liti ation losses 5 5 8 (3)

Total Liabilities 14,324 17,412 3,088 32,228 17,904

FYI: Unrealized ain loss) on U.S. Treasu investments, net 20 39 19 34 (14)

FYI: Unrealized ain loss on trust referred securities 302 (302)

FYI: Unrealized postretirement benefit loss) ain 16 (61) 45 (61) 45

Fund Balance 47,191 40,758 6,433 32,958 14,233

Income Statement Trend Schedule

in Billions 2008 2009 2010 2011 2012 2013 Cumulative

Assessments 3.0 17.7 13.6 13.5 12.4 9.7 69.9

Earnings on UST Invmts 4.7 0.1 0.1 0.1 0.1 5.2

Guarantee-Related

Revenue:

Citi-term feelearnings 2.2 0.5 0.1 0.2 0.3 3.3

TLGP (net oflosses) 2.6 5.9 8.5

Other

------------------

Operating Expenses

-----

1.0

1.0

------

1.3

0.04

------

1.6

0.1

-----

1.6

0.1

-------

1.8

0.03

-------

1.6

1.2

-------

8.9

rovision or ns osses

------------------

Comprehensive Income

41.8

-----

(35.1)

57.7

------

(38.1)

(0.8)

------

13.5

(4.4)

-----

192

(42)

-------

21 1

(5.7)

-------

14.2

84.4

-------

(52)

Fund Balance 17.3 (20.9) (7.4) 11.8 33.0 47.2

Since year-end 2007, the

DIF's balance has declined

from $52.4 billion to $47.2

billion, a total drop of $5.2

billion. However over this

same time period, the DIF

has absorbed $84.6 billion

in estimated losses for both

actual and anticipated bank

failures ($83.4 billion and

$1.2 billion, respectively).
S stemic risk revenue - - (161) 161

Interest on U.S. Treasu obli ations 104 79 25 159 (55)

Realized ain on sale of TruPS 458 458 458

Other revenue 163 156 7 6,127 (5,964)

Total Revenue $ 10,459 $ 7,901 $ 2,558 $ 18,522 $ (8,063)

Operatin e enses 1,609 1,173 436 1,778 (169)

S stemic risk expenses - - - (161 161

Provision for insurance losses 5,659) 1,071) (4,588) (4,223) (1,436)

Insurance and othere enses 4 4 7 (3)

Total Ex enses and Losses $ (4,046) $ 106 $ (4,152) $ (2,599) $ (1,447)

Net Income 14,505 7,795 6,710 21,121 (6,616)

Unrealized ain loss on U.S. Treasu investments, net 14) 5 19) (14)

Unreali~d ain (loss) on trust preferred securities (302) (302) 51 (353)

Unrealized ostretirement benefit ain (loss) 44 - 44 27) 71

Com rehensive Income $ 14,233 $ 7,800 $ 6,433 $ 21,131 $ (6,898)

-~ ~..

Cash and cash e uivalents $ 871 $ 871 $ - $ 3,594 $ 2,723

Accumulated deficit 124,460 124,459 1 124,460 -

Total resolution e ui 872 874 2 3,597 2,725)

Total revenue 3 2 1 5 2

0 eratin ex enses 2 1 1 4 2

Goodwill liti ation ex enses 1 1 181 180

Recove of tax benefits - - - -

NetIncome Loss $ 1

$ in millions ~

Dec-13 Dec-12 Change Dec-13

$ 1 $ 2 $ 179 $ 178

~

Dec-12 Change Dec-13 Dec-12 Change

Total Receiverships 479 463 16 1 3 (2) 480 466 14

Assets in Li uidation $ 11,299 $ 16,989 $ (5,690 $ 5 $ 7 $ 2 $ 11,304 $ 16,996 $ 5,692)

YTD Collections $ 8,835 $ 8,381 $ 454 $ 4 $ 18 $ 14 $ 8,839 $ 8,399 $ 440

YTD Dividend/Other Pymts -Cash $ 5,690 $ 4,978 $ 712 $ - $ - $ - $ 5,690 $ 4,978 $ 712

DIF Cash Receipts and Disbursements -Key Activities

2013 2012

Cash Inflows

Assessments $ 7,112 $ 1,525

Interest on UST obligations 1,080 1,089

Recoveries from resolutions 5,696 4,938

Sale of trust preferred securities 2,420 0

Cash Outflows

Operating expenses

Disbursements for resolutions

Refunds of prepaid assessments

Net (purchase)/maturity of UST

obligations

$ (1,558) $ (1,703)

(3,857) (8,999)

(5,850) 0

4,760) (1,256)

E
~.

12/31/13 12/31/12 Chan e

Par Value $40,682 $37,086 $3,596

Amortized Cost $42,025 $37,927 $4,098

Total Market Value (including accrued interest) $42,461 $38,249 $4,212

Primary Reserve' I $42,461 $38,249 $4,212

Primary Reserve % of Total Portfolio 100.0% 100.0% 0.0%

Yield-to-Maturity 2 0.45% 0.36% 0.09%

Weighted Average Maturity (in years) 1.41 0.68 0.73

Effective Duration (in years)

Total Portfolio 1.36 0.66 0.70

Available-for-Sale Securities 1.49 0.72 0.77

Held-to-Maturity Securities 3 not applicable not applicable not applicable

~ Primary Reserve is the total market value (including accrued interest) of overnight investments, all available-for-sale securities, and heldto-maturity securities maturing within three months.

z The Yield-to-Maturity includes the potential yield of Treasury Inflation-Protected Securities (TIPS), which presently assumes an average

2.0% annual increase in the CPI over the remaining life of each TIPS.

3 In early August 2008, management reclassified all of the DIF portfolio's HTM securities as AFS securities effective as of June 30, 2008,

because the FDIC could no longer assert it had the positive intent and ability to hold its HTM securities until their maturity dates.

5 Due to the current short-term nature of this portfolio, its respective Par, Book, and Market Values are identical for reporting purposes.

5 Due to the short-term nature of the NLF, the portfolio's Book and Market Values are identical for reporting purposes.

10
DEPOSIT INSURANCE FUND Strategy for the 4th Quarter 2013

Purchase up to $14 billion (par value) of Treasury securities with maturity dates between

March 31, 2014, and December 31, 2018, subject to the following additional provisions: all

newly purchased securities will be designated as available-for-sale (AFS); and no more than

$3 billion (adjusted par value) of such securities shall consist of Treasury Inflation-Protected

Securities (TIPS).

Strategy Changes for 1st Quarter 2014

Purchase up to $10 billion (par value) of Treasury securities with maturity dates between June

30, 2014, and March 31, 2019, subject to the following additional provisions: all newly

purchased securities will be designated as available-for-sale (AFS); and no more than $3

billion (adjusted par value) of such securities shall consist of Treasury Inflation-Protected

Securities (TIPS).

NATIONAL LIQUIDATION FUND Strategy for 4th Quarter 2013

Maintain an overnight deposit target floor balance within a range of $100 million to $300

million.

Strategically invest the remaining funds in the zero- to 12-month maturity sector.

Strategy Changes for 1st Quarter 2014

No strategy changes for the first quarter of 2014.

11
~ • •- -~•

~ ~ 1- - •- 1

t• ~ •

Annual YTD YTD % of YTD YTD

Major Expense Category Budget Budget Expenditures Budget Used Variance

Corporate Operating Budget

Ongoing Operations

Salaries &Compensation $1,184,356 $1,184,356 $1,114,708 94% ($69,648)

Outside Services -Personnel 279,135 279,135 222,578 80% (56,557)

Travel 109,351 109,351 90,112 82% (19,239)

Buildings 91,634 91,634 81,134 89% (10,500)

Equipment 83,490 83,490 77,629 93% (5,861)

Outside Services -Other 18,029 18,029 15,269 85% (2,760)

Other Expenses 16,644 16,644 12,184 73% (4,460)

Total On oin 0 erations $1 782 639 $1 782 639 $1 613 614 91°~ $169,025

Receivership Funding

Salaries &Compensation $187,572 $187,572 $168,795 90% ($18,777)

Outside Services -Personnel 594,213 594,213 434,518 73% (159,695)

Travel 22,079 22,079 9,537 43% (12,542)

Buildings 37,049 37,049 28,919 78% (8,130)

Equipment 10,635 10,635 5,832 55% (4,803)

Outside Services -Other 6,386 6,386 4,788 75°/a (1,598)

Other Expenses 42,066 42,066 20,779 49% (21,287)

Total Receivershi Fundin $900 000 $900 000 $673,168 75% $226,832

Total Cor orate 0 eratin Bud et $2 682 639 $2 682 639 $2 286 782 85% $395,857

Investment Budget ~ $22 031 $22,031 $18 959 86°~ $3,072

Grand Total $2 704 670 $2 704 670 $2 305 741 85% $398,929

1) Budgets for investment projects are approved on a multi-year basis; the year-to-date budget amount reflects the 2013 spending estimates

for approved projects.

12
- ~ ..- .- -

..- .. - ~ •

. ~- .- ~

~.

Annual YTD YTD % of YTD YTD

Division/Office Budget Budget Expenditures Budget Used Variance

Corporate Operating Budget

Resolutions &Receiverships $761,469 $761,469 $564,393 74% ($197,076)

Risk Management Supervision 548,331 548,331 519,859 95% (28,472)

Legal 329,921 329,921 291,856 88% (38,065)

Administration 267,490 267,490 240,999 90% (26,491)

Information Technology 258,507 258,507 233,525 90°/a (24,982)

Depositor &Consumer Protection 167,398 167,398 158,415 95% (8,983)

CIO Council 72,236 72,236 61,775 86% (10,461)

Insurance &Research. 45,414 45,414 38,503 85% (6,911)

Finance 41,581 41,581 36,619 88% (4,962)

Executive Support' 41,016 41,016 35,285 86% (5,731)

Complex Financial Institutions 35,639 35,639 .28,096 79% (7,543)

Inspector General 33,722 33,722 30,079 89% (3,643)

Corporate University -Corporate 23,856 23,856 21,968 92% (1,888)

Corporate University -CEP 19,173 19,173 14,974 78% (4,199)

Executive Offices Z 11 ,480 11 ,480 10,436 91 % (1 ,044)

Government Litigation 1,000 1,000 0 0% (1,000)

Corporate Unassigned 24,406 24,406 0 0% (24,406)

Total, Corporate Operating Budget $2,682,639 $2,682,639 $2,286,782 85% ($395,857

Investment Budget 3

Information Technology $12,288 $12,288 $10,392 85% ($1,896)

Administration 8,723 8,723 7,965 91 % (758)

Corporate University -Corporate 605 605 366 60% (239)

Risk Management Supervision 348 348 175 50°/a (173)

Depositor &Consumer Protection 35 35 30 86% (5)

Resolutions & Receivershi s 32 32 31 97% 1

Total, Investment Budget 3 $22,031 $22,031 $18,959 86% 53,072

Combined Division/Office Budgets

Resolutions &Receiverships $761 ,501 $761 ,501 $564,424 74% ($197,077)

Risk Management Supervision 548,679 545,679 520,034 95% (28,645)

Legal 329,921 329,921 291,856 88% (38,065)

Administration 276,213 276,213 248,964 90% (27,249)

Information Technology 27o,7s5 27o,7s5 243,617 90% (26,878)

Depositor &Consumer Protection 167,433 167,433 158,445 95% (8,988)

CIO Council 72,236 72,236 61,775 86% (10,461)

Insurance &Research 45,414 45,414 38,503 85% (6,911)

Finance 41,581 41,581 36,619 88% (4,962)

ExecutiveSupport~ 41,016 41,016 35,285 86% (5,731)

Complex Financial Institutions 35,639 35,639 28,096 79% (7,543)

Inspector General 33,722 33,722 30,079 89% (3,643)

Corporate University- Corporate 24,461 24,461 22,334 91% (2,127)

Corporate University -CEP 19,173 19,173 14,974 78% (4,199)

Executive Offices Z 11,480 1 1,480 10,436 91 % (1,044)

Government Litigation 1,000 1,000 0 0% (1,000)

Corporate Unassigned 24,406 24,406 0 0% (24,406)

Grand Total $2,704,670 $2,704,670 $2,305,741 85% $398,929)

1) Executive Support includes the Offices of Minority and Women Inclusion, Communications, Ombudsman, Legislative Affairs,

Corporate Risk Management, and Information Security and Privacy Staff.

2) Executive Offices include the offices of the Chairman, Vice Chairman, Independent Director, Deputy to the Chairman and Chief

Operating Officer, Deputy to the Chairman and Chief Financial Officer, Chief Information Officer, and Deputy to the Chairman for

External Affairs.

3) Budgets for investment projects are approved on a multi-year basis; the year-to-date budget amount reflects the 2013 spending estimates

for approved projects.

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