1. Two depository institutions have composite CAMELS ratings of 1 or 2 and are

“well capitalized.” Thus, each institution falls into the FDIC Risk Category I deposit insurance assessment scheme. Further, the institutions have the following financial ratios and CAMELS ratings:

Institution A Institution B Tier I leverage ratio (%) 8.62 7.75 Loans past due 30–89 days/

gross assets (%)

0.45 0.56 Nonperforming assets/gross assets (%)

0.35 0.50 Net loan charge-offs/gross assets (%)

0.28 0.32 Net income before taxes/riskweighted assets (%)

2.15 1.86 CAMELS Components:

C 1 1 A 2 2 M 1 2 E 2 3 L 1 1 S 2 1 Calculate the deposit insurance assessment for each institution.