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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
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: Use Table 1311.
Institution A | Institution B | |||||
Tier I leverage ratio (%) | 8.69 | 7.82 | ||||
Net income before taxes/risk-weighted assets (%) | 2.22 | 2.10 | ||||
Nonperforming loans and leases/gross assets (%) | 0.42 | 0.57 | ||||
Other real estate owned/gross assets (%) | 0.75 | 0.74 | ||||
Brokered deposits/total assets (%) | 2.10 | 2.70 | ||||
One year asset growth | 6.65 | 6.30 | ||||
Loans as a Percentage of Total Assets: | ||||||
Construction & Development | 0.00 | 0.00 | ||||
Commercial & Industrial | 13.96 | 14.05 | ||||
Leases | 1.50 | 0.70 | ||||
Other Consumer | 18.30 | 18.00 | ||||
Loans to Foreign Government | 0.35 | 0.25 | ||||
Real Estate Loans Residual | 0.00 | 0.00 | ||||
Multifamily Residential | 0.85 | 0.90 | ||||
Nonfarm Nonresidential | 0.00 | 0.00 | ||||
14 Family Residential | 40.02 | 36.61 | ||||
Loans to Depository Banks | 1.05 | 1.75 | ||||
Agricultural Real Estate | 2.80 | 3.50 | ||||
Agricultural | 4.60 | 2.80 | ||||
CAMELS components: | ||||||
C | 2 | 1 | ||||
A | 3 | 3 | ||||
M | 1 | 2 | ||||
E | 1 | 2 | ||||
L | 1 | 3 | ||||
S | 2 | 1 | ||||
The DIF reserve ratio is currently 1.30 percent. Calculate the initial deposit insurance assessment rate for each institution. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.161))
Institution A | Institution B | ||
Initial Assessment Rate |
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