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 (%) 10.25 7.00 Loans past due 30–89 days/
gross assets (%)
0.60 0.82 Nonperforming assets/gross assets (%)
0.45 0.90 Net loan charge-offs/gross assets (%)
0.08 0.25 Net income before taxes/
risk-weighted assets (%)
2.40 1.65 CAMELS Components:
C 1 2 A 1 1 M 1 1 E 2 1 L 1 3 S 2 3