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. Institution A has average total assets of $750 million and average Tier I equity of $75 million. Institution B has average total assets of $1 billion and average Tier I equity of $110 million. Institution A has no unsecured debt or brokered deposits. Institution B has no unsecured debt and an asset growth rate over the last four years of 8 percent. Further, the institutions have the following financial ratios and CAMELS ratings:

The DIF reserve ratio is currently 1.30 percent. Calculate the deposit insurance assessment and the dollar value of the deposit insurance premium for each institution.

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Institution A Institution B Tier I leverage ratio (%) Net Income before taxes/risk-weighted assets (%) Nonperforming loans and leases/gross assets (%) Other real estate owned 8.55 8.25 1.65 2.00 0.35 0.90 /gross assets (%) Core deposits/total assets (%) One year asset growth 0.90 0.42 82.20 76.50 4.35 6.80 Loans as a Percent of Total Assets: Construction & Development Commercial & Industrial 0.00 0.00 10.56 0.65 18.68 Leases 2.15 Other Consumer 18.95 17.55 Loans to Foreign Government Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 0.00 0.60 0.00 0.00 0.00 1.10 0.00 0.00 33.54 1-4 Family Residential Loans to Depository Banks Agricultural Real Estate Agricultural 41.10 0.00 0.50 0.35 1.10 0.40 0.40 CAMELS Components: 1 2 A M 3 3.