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Two depository institutions have composite CAMELS ratings of 1 or 2 and are well capitalized. Thus, each instituion falls into the FDIC Risk Category 1

Two depository institutions have composite CAMELS ratings of 1 or 2 and are "well capitalized." Thus, each instituion falls into the FDIC Risk Category 1 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 Further, the institutions have the following financial rations and CAMELS ratings:

Instituion 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
Adjusted brokered deposits ratio (%) 0.00 25.89
CAMELS components:
C 1 2
A 1 1
M 1 1
E 2 1
L 1 3
S 2 3

Calculate the initial deposit insurance assessment for each instituttion.

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