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 Financial Ratios:
Leverage Ratio 8.25 7.58 Nonperforming Loans and Leases/Gross Assets 0.25 4.55 Other Real Estate Owned/
Gross Assets 0.54 0.75 Net Income Before Taxes/
Total Assets 2.15 1.85 Brokered Deposit Ratio 84.56 79.68 One-Year Asset Growth 5.66 7.75 Loans as a Percent of Total Assets:
Construction &
Development 0.40 0.30 Commercial & Industrial 11.35 15.66 Leases 0.45 1.05 Other Consumer 16.50 16.80 Loans to Foreign Government 0.00 0.60 Real Estate Loans Residual 0.00 0.00 Multifamily Residential 0.50 1.25 Nonfarm Nonresidential 0.00 0.00 1-4 Family Residential 38.85 40.15 Loans to Depository Banks 0.00 2.80 Agricultural Real Estate 4.55 0.00 Agriculture 7.40 0.00 CAMELS Components:
C 1 1 A 2 2 M 1 2 E 2 3 L 1 1 S 2 1 Calculate the initial deposit insurance assessment for each institution.

AppendixLO1