Federal Deposit Insurance Corporation 

550 17th Street, N.W., Washington, D.C. 20429-9990 Deputy to the Chairman and CFO

 

 May 18, 2012 

MEMORANDUM TO: The Board of Directors 

FROM: Steven O. App 

Deputy to the Chairman and 

Chief Financial Officer 

Craig Jarvill 

Director, Division of Finance 

SUBJECT: First Quarter 2012 CFO Report to the Board 

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

March 31, 2012. 

Executive Summary

 During the first quarter of 2012, the Deposit Insurance Fund (DIF) balance increased by $3.5 

billion, from $11.8 billion to $15.3 billion. This quarterly increase was primarily due to $3.7 

billion in assessment revenue, a $160 million unrealized gain on available-for-sale securities 

(U.S. Treasury obligations and trust preferred securities), and $64 million in other revenue, 

partially offset by $460 million in operating expenses. Over the nine consecutive quarters 

since the beginning of 2010, the fund balance has increased a total of $36.2 billion. 

 During the first quarter of 2012, the FDIC was named receiver for 16 failed institutions. The 

combined assets at inception for these institutions totaled approximately $4.9 billion with a 

total estimated loss of $1.3 billion. The corporate cash outlay during the first quarter for these 

failures was approximately $2.0 billion. 

 Through March 31, 2012, overall Corporate Operating Budget expenditures were below 

budget by 17 percent ($126 million). This variance was primarily the result of lower-thanbudgeted spending in the Receivership Funding component for contractual services and 

operations at the sites of failed financial institutions. 

 

 
2

I. Corporate Fund Financial Results (See pages 7- 8 for detailed data and charts.) 

Deposit Insurance Fund 

 For the three months ended March 31, 2012, the DIF’s comprehensive income totaled $3.5 

billion compared to comprehensive income of $6.3 billion for the same period last year. This 

$2.9 billion decrease was mostly due to a $3.1 billion year-to-year increase in loss provisions 

(a nominal $12 million at the end of the first quarter 2012 vs. a negative $3.1 billion at the 

same time in 2011), partially offset by a $210 million increase in assessment revenue and a 

$103 million increase in unrealized gains on available-for-sale securities (U.S. Treasury 

obligations and trust preferred securities). 

 

 The provision for insurance losses was $12 million for the first quarter of 2012, primarily the 

result of a $113 million increase to the contingent loss reserve offset by an $82 million 

reduction in the estimated losses for banks that had previously failed. 

FSLIC Resolution Fund (FRF) 

 During the first quarter, the FRF’s cash and cash equivalents increased by $46 million to $3.6 

billion primarily due to the collection of $44 million in tax benefits arising from a former FSLIC 

assistance agreement. 

Assessments 

 The DIF recognized $3.7 billion in estimated assessment revenue for first quarter 2012 

insurance coverage. Of this amount, $3.4 billion represented the estimate for first quarter 2012 

insurance coverage—$3.1 billion was recognized for those institutions that prepaid 

assessments and $318 million was recorded as a receivable from those institutions that did 

not have any prepaid assessments available for offset. An adjustment of $285 million was 

recognized for prior period amendments of $225 million and a $60 million increase to the 

estimate for fourth quarter 2011 insurance coverage that was recorded at year-end 2011. The 

latter adjustment was due to higher than estimated growth in average assessment rates. 

 

Quarterly Assessments Premiums

(based on insurance coverage period) 

$3,407

$3,385

$3,196

$1,087

$2,593

$8,622

$3,461

$3,302

$3,262

$3,397

$3,432

$3,450

$3,404

$3,298

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

$ in Millions

Estimated

Includes $5.5 billion 

Special Assessment 
3

 On March 30, 2012, the FDIC collected $273 million in DIF assessments for fourth quarter 2011 

insurance coverage. DIF Unearned Revenue (remaining prepaid assessments) totaled $14.0 

billion at March 31, 2012. 

II. Investment Results (See pages 9 -10 for detailed data and charts.)

Total DIF Portfolio Liquidity 

 Although managed as two separate investment portfolios, the total liquidity available to the DIF 

is the sum of the DIF investment portfolio ($35.2 billion) and the DGP investment portfolio 

($4.7 billion). Consequently, the total liquidity (total market value including accrued interest) of 

both DIF-related investment portfolios stood at $39.9 billion on March 31, 2012, down $2.5 

billion from $42.4 billion on December 31, 2011, led by the decline in the DIF investment 

portfolio as discussed below. 

 

 

Total DIF - Related Investment Portfolio Liquidity (End-of-Quarter)

$31.7

$66.1

$44.0 $39.9 $42.9 $42.4 $43.7 $46.2 $45.5 $45.0

$63.3

$23.4

$29.7 $33.0

$0

$10

$20

$30

$40

$50

$60

$70

4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

$ in Billions

DIF Investment Portfolio 

 The DIF investment portfolio’s total market value decreased by $2.4 billion during the first 

quarter of 2012, and totaled $35.2 billion on March 31, 2012. The decrease was primarily the 

result of having to fund 16 bank failures during the first quarter of 2012. Although seven of 

these failures were resolved using cash-conserving shared-loss transactions requiring 

substantially lower initial resolution payments, there were a few resolution transactions, 

including two deposit payout transactions, which required relatively large initial resolution 

payments. During the first quarter of 2012, the DIF received $1.3 billion in dividends and other 

payments from its receiverships, thus mitigating the DIF portfolio’s decline. 

 On March 31, 2012, the DIF investment portfolio’s yield was 0.37 percent, down four basis 

points from its December 31, 2011, yield of 0.41 percent. The maturity of $7.5 billion in 

Treasury securities with a relatively high average yield of 0.64 percent was the primary cause 

for the decline in yield during the period. 

 In accordance with the approved first quarter 2012 investment strategy, staff purchased a total 

of seven short-maturity conventional Treasury securities on two occasions during the quarter. 
4

The seven securities had a total par value of $5.8 billion, a weighted average yield-to-maturity 

of 0.28 percent, and a weighted average maturity (WAM) of 1.21 years. 

DGP Investment Portfolio 

 On March 31, 2012, the Debt Guarantee Program (DGP) investment portfolio stood at $4.7 

billion (total market value), down modestly from its December 31, 2011, balance of $4.8 billion. 

At quarter end, the DGP portfolio had a yield of 0.18 percent and a WAM of 0.55 years. In 

accordance with the approved first quarter 2012 investment strategy for the DGP portfolio, 

staff purchased seven short-maturity conventional Treasury securities during the quarter. The 

securities had a total par value of $2.0 billion, a weighted average yield-to-maturity of 0.27 

percent, and a WAM of 1.16 years. 

III. Budget Results (See pages 11-13 for detailed data.) 

Approved Budget Modifications 

The 2012 Budget Resolution delegated to the Chief Financial Officer (CFO) and selected other 

officials the authority to make certain modifications to the 2012 Corporate Operating Budget. The 

following budget reallocations were approved during the first quarter in accordance with the 

authority delegated by the Board of Directors. 

 In January 2012, the CFO approved the reallocation of $75,000 of budget authority from 

the Ongoing Operations budget of the Division of Administration (DOA) to the Corporate 

Unassigned budget. These funds were budgeted for a planned conference and were 

inadvertently left in the DOA budget rather than being placed in the Corporate Unassigned 

budget, in accordance with new conference approval procedures, prior to final approval of 

the 2012 Corporate Operating Budget. 

 In March 2012, the CFO approved the reallocation of $126,037 in budget authority in the 

Ongoing Operations component from the Corporate Unassigned budget to the Salaries 

and Compensation budget component of the Office of International Affairs to fund the 

expenses for a newly-approved “overhire” position. 

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

Unassigned budgets for the Ongoing Operations and the Receivership Funding budget 

components were $23,948,963 and $113,079,673 respectively. 

Approved Staffing Modifications 

The 2012 Budget Resolution delegated to the CFO the authority to modify approved 2012 

staffing authorizations for divisions and offices, as long as those modifications did not increase 

the total approved 2012 Corporate Operating Budget. The CFO approved one change during 

the quarter, increasing the Legal Division’s 2012 non-permanent staffing authorization in three 

positions to address an increase in supervisory enforcement workload (see page 11). 

Spending Variances 

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

below. Significant spending variances for the three months ended March 31, 2012, are 

defined as those that either (1) exceed the YTD budget by $3 million and represent more than 

five percent for a major expense category or total division/office budget; or (2) are under the 
5

YTD budget for a major expense category or division/office by an amount that exceeds $5 

million and represents more than ten percent of the major expense category or total 

division/office budget. 

Significant Spending Variances by Major Expense Category 

Ongoing Operations

There was a significant spending variance in only one major expense category during the first 

quarter in the Ongoing Operations component of the 2012 Corporate Operating Budget: 

 Outside Services - Personnel expenditures were $8.3 million, or 13 percent, less than 

budgeted. The Office of Complex Financial Institutions (CFI) spent $2.5 million less than 

budgeted as they continued to refine contract requirements. The CIO Council spent $2.0 

million less than budgeted due to timing differences between planned and actual 

expenditures for client discretionary funds and project work. Corporate University spent 

$1.0 million less than budgeted, largely due to lower expenses for training and 

development projects than projected. The Office of Inspector General spent $1.9 million 

less than budgeted because it had to delay various projects while operating under a 

continuing resolution during the fourth quarter of 2011. Those delays were carried over 

into the first quarter of 2012. In addition, fewer Material Loss Reviews were conducted 

than planned. 

Receivership Funding

The Receivership Funding component of the 2012 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 salary and benefits expenses for permanent employees assigned to the receivership 

management function. 

There were significant spending variances in four of the seven major expense categories 

during the first quarter in the Receivership Funding component of the 2012 Corporate 

Operating Budget: 

 Salaries and Compensation ($15 million or 22 percent, less than budgeted). 

 Outside Services-Personnel ($78 million or 34 percent, less than budgeted). 

 Buildings ($13 million or 53 percent, less than budgeted). 

 Other Expenses ($8 million or 55 percent, more than budgeted). 

The variance in the Salaries and Compensation category was attributable to vacancies in 

budgeted positions. The variance in the Outside Services – Personnel expense category was 

attributable to lower-than-budgeted expenses during the first quarter of 2012 due to less costly 

resolutions and lower-than-anticipated asset management and marketing costs incurred under 

Receivership Assistance Contracts and contracts for Due Diligence, Owned Real Estate, Loan 

Servicing, Shared-Loss, and Business Information Systems. Lower spending occurred in the 

Buildings category as a result of shorter-than-expected operations at failed financial institution 

sites. The variance in the Other Expenses category included approximately $12 million for 

escrow payments and other advances. These expenses should not have been charged to this 

expense category and the error will be corrected during the second quarter. 
6

Significant Spending Variances by Division/Office1

Two organizations had significant spending variances through the end of the first quarter 2012: 

 The Division of Resolutions and Receiverships spent $88 million, or 28 percent, less than 

budgeted, mostly due to less-than-budgeted spending for resolution and receivership 

management activities. Over recent quarters, the number and size of financial institution 

failures has been below levels anticipated during the 2012 budget formulation process. 

 The Legal Division spent $13 million, or 17 percent, less than budgeted. Approximately 

$11 million of this variance was in the Receivership Funding budget component and was 

largely attributable to lower-than-budgeted spending for legal services contracting and 

slower-than-projected hiring to fill budgeted positions. 

 

1

 Information on division/office variances reflects variances in both the Corporate Operating and Investment Budgets. 
FDIC CFO REPORT TO THE BOARD – First Quarter 2012

Fund Financial Results ($ in Millions) 

7

Primary Contributors to the Change in the Fund Balance

3,694

3,163

3,498 3,484

3,642 3,209

(12)

2,095

3,089

(2,446)

763

(1,533)

3,465

6,329

3,897 4,014

4,939

657

($3,000)

($2,000)

($1,000)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

4Q10 1Q11 2Q11 3Q11 4Q11 1Q12

$ in Millions

Assessments Provision for Losses Change in Fund Balance

Actual Fund Balance $(7,352) $(1,023) $3,916 $7,813 $11,827 $15,292

Balance Sheet

Unaudited Audited Quarterly Unaudited Year-Over-Year

Mar-12 Dec-11 Change Mar-11 Change

Cash and cash equivalents 741 $ 3,278 $ (2,537) $ 23,496 $ (22,755) $ 

Cash and investments - restricted - systemic risk 4,723 4,828 (105) 6,996 (2,273) 

Investment in U.S. Treasury obligations, net 33,937 33,863 74 14,894 19,043 

Trust preferred securities 2,329 2,213 116 2,345 (16) 

Assessments receivable, net 318 282 36 206 112 

Receivables and other assets - systemic risk 1,974 1,948 26 2,243 (269) 

Interest receivable on investments and other assets, net 505 488 17 264 241 

Receivables from resolutions, net 28,963 28,549 414 29,748 (785) 

Property and equipment, net 389 402 (13) 407 (18) 

Total Assets $ 75,851 73,879 $ (1,972) $ 80,599 $ (6,720) $ 

Accounts payable and other liabilities 364 374 (10) 480 (116) 

Unearned revenue - prepaid assessments 14,002 17,400 (3,398) 26,766 (12,764) 

Liabilities due to resolutions 32,000 32,791 (791) 30,883 1,117 

Debt Guarantee Program liabilities - systemic risk - 117 (117) 11 (11) 

Deferred revenue - systemic risk 6,698 6,640 58 9,088 (2,390) 

Postretirement benefit liability 188 188 - 166 22 

Contingent liability for anticipated failures 5,330 6,511 (1,181) 13,788 (8,458) 

Contingent liability for systemic risk - 2 (2) 140 (140) 

Contingent liability for litigation losses 5 1 4 300 (295) 

Total Liabilities $ 64,024 58,587 $ (5,437) $ 81,622 $ (23,035) $ 

FYI: Unrealized gain (loss) on U.S. Treasury investments, net 92 48 44 37 55 

FYI: Unrealized gain (loss) on trust preferred securities 367 251 116 383 (16) 

FYI: Unrealized postretirement benefit (loss) gain (34) (34) - (19) (15) 

Fund Balance $ 11,827 15,292 $ 3,465 $ (1,023) $ 16,315 $ 

Deposit Insurance Fund
8

Fund Financial Results - continued ($ in Millions) 

Selected Financial Data

Unaudited Audited Quarterly Unaudited Year-Over-Year

Mar-12 Dec-11 Change Mar-11 Change

Cash and cash equivalents 3,579 $ 3,533 $ 46 $ 3,548 $ 31 $ 

Accumulated deficit (124,281) (124,281) - (124,224) (57) 

Total resolution equity 3,595 3,595 - 3,568 27 

Total revenue 1 5 2 (1) 

Operating expenses 1 5 2 (1) 

Goodwill litigation expenses - 83 - - 

Recovery of tax benefits - (18) - - 

Net Income (Loss) - $ (56) $ - $ - $ 

FSLIC Resolution Fund

 Receivership Selected Statistics March 2012 vs. March 2011

$ in millions

Mar-12 Mar-11 Change Mar-12 Mar-11 Change Mar-12 Mar-11 Change

Total Receiverships 442 362 80 5 8 (3) 447 370 77 

Assets in Liquidation 21,015 $ 26,476 $ (5,461) $ 20 $ 25 $ (5) $ 21,035 $ 26,501 $ (5,466) $ 

YTD Collections 2,592 $ 2,276 $ 316 $ 4 $ 1 $ 3 $ 2,596 $ 2,277 $ 319 $ 

YTD Dividend/Other Pymts - Cash 1,337 $ 3,279 $ (1,942) $ - $ - $ - $ 1,337 $ 3,279 $ (1,942) $ 

DIF FRF ALL FUNDS

* Excludes WAMU with total assets of $299 billion and no estimated loss to the DIF.

Income Statement (year-to-date)

Unaudited Audited Unaudited Year-Over-Year

Mar-12 Dec-11 Mar-11 Change

Assessments earned 3,694 $ 13,498 $ 3,484 $ 210 $ 

Systemic risk revenue 10 (131) 5 5 

Interest on U.S. Treasury obligations 20 128 28 (8) 

Other revenue 64 2,847 66 (2) 

Total Revenue $ 16,342 3,788 $ 3,583 $ 205 $ 

Operating expenses 460 1,625 395 65 

Systemic risk expenses 10 (131) 5 5 

Provision for insurance losses 12 (4,414) (3,089) 3,101 

Insurance and other expenses 1 4 - 1 

Total Expenses and Losses $ (2,916) 483 $ (2,689) $ 3,172 $ 

Net Income 19,258 3,305 6,272 (2,967) 

Unrealized gain (loss) on U.S. Treasury investments, net 44 21 10 34 

Unrealized gain (loss) on trust preferred securities 116 (85) 47 69 

Unrealized postretirement benefit gain (loss) - (15) - - 

Comprehensive Income $ 19,179 3,465 $ 6,329 $ (2,864) $ 

Deposit Insurance Fund

Assets at Inception and Estimated Losses to the DIF

Mar-2012 16 $4.9 $1.3 27%

2011 92 $36.6 $8.0 22%

2010 157 $93.2 $22.4 24%

2009 140 $171.2 $37.1 22%

2008* 24 $62.5 $20.1 32%

Average Estimated 

Losses as a % of 

Average Assets

Total Estimated 

Losses 

(in billions)

Total Assets 

(in billions)

Bank 

Failures

Year of 

Failure
9

3/31/12 12/31/11 Change

Par Value $34,278 $36,784 ($2,506)

Amortized Cost $34,846 $37,337 ($2,491)

Total Market Value (including accrued interest) $35,178 $37,580 ($2,402)

Primary Reserve 1 $35,178 $37,580 ($2,402)

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

Yield-to-Maturity 2 0.37% 0.41% (0.04%)

Weighted Average Maturity (in years) 0.69 0.66 0.03

Effective Duration (in years) 3 

 Total Portfolio 0.64 0.62 0.02

 Available-for-Sale Securities 0.74 0.73 0.01

 Held-to-Maturity Securities 4 not applicable not applicable not applicable

3/31/12 12/31/11 Change

Debt Guarantee Program

 Par Value $4,603 $4,764 ($161)

 Book Value $4,694 $4,807 ($113)

 Total Market Value (including accrued interest) $4,723 $4,827 ($104)

 Yield-to-Maturity 0.18% 0.11% 0.07%

 Weighted Average Maturity 0.55 0.21 0.34

FRF-FSLIC

 Book Value 5 $3,422 $3,377 $45

 Yield-to-Maturity 0.02% 0.00% 0.02%

 Weighted Average Maturity overnight overnight no change

3/31/12 12/31/11 Change

Book Value 6 $17,090 $17,052 $38

Effective Annual Yield 0.11% 0.10% 0.01%

Weighted Average Maturity (in days) 26 9 17

2

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

average 1.8% annual increase in the CPI over the remaining life of each TIPS.

3

 For each TIPS, an estimated 80 percent "yield beta" factor is applied to its real yield duration to arrive at an estimated effective 

duration.

Deposit Insurance Fund Portfolio Summary

(Dollar Values in Millions)

1

 Primary Reserve is the total market value (including accrued interest) of overnight investments, available-for-sale securities, and 

held-to-maturity securities maturing within three months.

National Liquidation Fund (NLF) Investment Portfolio Summary

(Dollar Values in Millions)

4

 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.

6

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

Summary of Other Corporate Investment Portfolios

(Dollar Values in Millions)

5

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

purposes.
10

Deposit Insurance Fund

Purchase up to $6 billion (par value) of available-for-sale (AFS) securities with maturity 

dates between June 30, 2012, and December 31, 2014, subject to the following additional 

restrictions: no more than $4 billion (par value) of such securities shall have maturity dates 

beyond December 31, 2012; no more than $2 billion (par value) of such securities shall 

have maturity dates beyond December 31, 2013; and no more than $3 billion of such 

securities shall consist of Treasury Inflation-Protected Securities.

Purchase up to $7 billion (par value) of AFS securities with maturity dates between 

September 30, 2012, and March 31, 2015, subject to the following additional restrictions: 

no more than $5 billion (par value) of such securities shall have maturity dates beyond 

March 31, 2013; no more than $3 billion (par value) of such securities shall have maturity 

dates beyond March 30, 2014; and no more than $3 billion of such securities shall consist 

of Treasury Inflation-Protected Securities.

Debt Guarantee Program

Purchase up to $2 billion (par value) of AFS securities with maturity dates between June 

30, 2012, and December 31, 2014.

Overnight investments only.

National Liquidation Fund

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.

No strategy changes for the second quarter of 2012.

Strategy Changes for 2nd Quarter 2012

Investment Strategies

Strategy for 1st Quarter 2012

Strategy for the 1st Quarter 2012

Strategy Changes for 2nd Quarter 2012

Strategy for 1st Quarter 2012

Strategy Changes for 2nd Quarter 2012
11

Division/Office Permanent Non- Total

Permanent

Authorized Staffing @ 1/1/12 5,831 2,873 8,704

Legal 0 3 3

Subtotal of changes 033

Authorized Staffing @ 3/31/12 5,831 2,876 8,707

Description

 Approved Staffing Modifications

by Division/Office

January 1 through March 31, 2012

The CFO approved an increase of three non-permanent 

positions (2 attorneys and 1 paralegal) in the Supervision 

Branch's Enforcement Section to address an increase in 

enforcement matters and to provide assistance to the 

Regional Offices.
12

1) Budgets for investment projects are approved on a multi-year basis; the year-to-date budget amount reflects the 2012 spending estimates 

for approved projects. 

Annual YTD YTD % of YTD YTD

Major Expense Category Budget Budget Expenditures Budget Used Variance

Corporate Operating Budget 

Ongoing Operations

Salaries & Compensation $1,145,943 $274,643 $262,683 96% ($11,960)

Outside Services - Personnel 309,993 62,658 54,312 87% (8,346)

Travel 106,654 25,518 24,764 97% (754)

Buildings 92,102 19,852 19,406 98% (446)

Equipment 86,349 8,844 7,193 81% (1,651)

Outside Services - Other 20,703 4,632 3,374 73% (1,258)

Other Expenses 19,033 3,699 2,810 76% (889)

Total Ongoing Operations $1,780,779 $399,846 $374,542 94% ($25,304)

Receivership Funding

Salaries & Compensation $248,856 $66,055 $51,275 78% ($14,780)

Outside Services - Personnel 1,039,832 230,667 152,471 66% (78,196)

Travel 33,306 8,600 6,274 73% (2,326)

Buildings 93,967 24,574 11,661 47% (12,913)

Equipment 12,795 1,282 1,761 137% 479

Outside Services - Other 11,001 2,882 1,719 60% (1,163)

Other Expenses 60,245 15,238 23,543 155% 8,305

Total Receivership Funding $1,500,000 $349,299 $248,704 71% ($100,595)

Total Corporate Operating Budget $3,280,779 $749,145 $623,246 83% ($125,899)

Investment Budget 1 $12,657 $3,571 $3,182 89% ($389)

Grand Total $3,293,436 $752,716 $626,428 83% ($126,288)

(Dollars in Thousands)

Executive Summary of 2012 Budget and Expenditures

by Major Expense Category

Through March 31, 2012
13

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

Risk Management, and International Affairs.

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, 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 2012 spending estimates 

for approved projects. 

Annual YTD YTD % of YTD YTD

Division/Office Budget Budget Expenditures Budget Used Variance

 Corporate Operating Budget 

 Resolutions & Receiverships $1,229,212 $310,765 $222,888 72% ($87,877)

 Risk Management Supervision 534,663 128,492 123,509 96% (4,983)

 Legal 304,139 75,275 62,775 83% (12,500)

 Administration 274,094 63,075 58,095 92% (4,980)

 Information Technology 278,531 49,275 50,141 102% 866

 Depositor & Consumer Protection 159,638 38,112 36,658 96% (1,454)

 CIO Council 84,521 19,339 15,240 79% (4,099)

 Complex Financial Institutions 60,611 13,463 11,850 88% (1,613)

 Insurance & Research 47,227 11,021 8,919 81% (2,102)

 Finance 42,789 10,487 8,876 85% (1,611)

 Inspector General 41,743 10,299 6,990 68% (3,309)

 Executive Support 1 31,007 6,451 5,956 92% (495)

 Corporate University - Corporate 23,051 5,524 4,882 88% (642)

 Corporate University - CEP 20,598 4,428 3,617 82% (811)

 Executive Offices 2 9,226 3,139 2,851 91% (288)

 Government Litigation 2,700 0 0 N/A 0

 Corporate Unassigned 137,029 0 0 N/A 0

 Total, Corporate Operating Budget $3,280,779 $749,145 $623,246 83% ($125,898)

 Investment Budget 3

 Information Technology $11,824 $3,420 $3,139 92% ($281)

 Corporate University - Corporate 345 97 26 27% (71)

 Risk Management Supervision 238 54 17 31% (37)

 Administration 250 0 0 N/A 0

 Total, Investment Budget 3 $12,657 $3,571 $3,182 89% ($389)

 Combined Division/Office Budgets

 Resolutions & Receiverships $1,229,212 $310,765 $222,888 72% ($87,877)

 Risk Management Supervision 534,901 128,546 123,526 96% (5,020)

 Legal 304,139 75,275 62,775 83% (12,500)

 Administration 274,344 63,075 58,095 92% (4,980)

 Information Technology 290,355 52,695 53,280 101% 585

 Depositor & Consumer Protection 159,638 38,112 36,658 96% (1,454)

 CIO Council 84,521 19,339 15,240 79% (4,099)

 Complex Financial Institutions 60,611 13,463 11,850 88% (1,613)

 Insurance & Research 47,227 11,021 8,919 81% (2,102)

 Finance 42,789 10,487 8,876 85% (1,612)

 Inspector General 41,743 10,299 6,990 68% (3,309)

 Executive Support 1 31,007 6,451 5,956 92% (495)

 Corporate University - Corporate 23,396 5,621 4,908 87% (713)

 Corporate University - CEP 20,598 4,428 3,617 82% (811)

 Executive Offices 2 9,226 3,139 2,851 91% (288)

 Government Litigation 2,700 0 0 N/A 0

 Corporate Unassigned 137,029 0 0 N/A 0

 Grand Total $3,293,436 $752,716 $626,428 83% ($126,288)

(Dollars in Thousands)

Executive Summary of 2012 Budget and Expenditures

by Budget Component and Division/Office

Through March 31, 2012