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 13-11 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/gross assets (%) Brokered deposits/total assets (%) One year asset growth 8.74 2.27 7.87 1.85 0.47 0.62 0.70 0.72 1.95 5.55 2.85 7.40 Loans as Percentage of Total Assets: 0.00 15.96 0.00 12.80 Construction & Development Commercial & Industrial Leases 1.75 0.45 Other Consumer 18.55 18.25 Loans to Foreign Government Real Estate Loans Residual 0.60 0.00 0.00 0.65 0.00 0.00 Multifamily Residential Nonfarm Nonresidential 1.10 0.00 37.32 1.80 1-4 Family Residential Loans to Depository Banks Agricultural Real Estate Agricultural 33.81 1.00 4.35 4.80 1.55 2.60 CAMELS components: C A M E 1 L 2 2 2 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)) 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 13-11 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/gross assets (%) Brokered deposits/total assets (%) One year asset growth 8.74 2.27 7.87 1.85 0.47 0.62 0.70 0.72 1.95 5.55 2.85 7.40 Loans as Percentage of Total Assets: 0.00 15.96 0.00 12.80 Construction & Development Commercial & Industrial Leases 1.75 0.45 Other Consumer 18.55 18.25 Loans to Foreign Government Real Estate Loans Residual 0.60 0.00 0.00 0.65 0.00 0.00 Multifamily Residential Nonfarm Nonresidential 1.10 0.00 37.32 1.80 1-4 Family Residential Loans to Depository Banks Agricultural Real Estate Agricultural 33.81 1.00 4.35 4.80 1.55 2.60 CAMELS components: C A M E 1 L 2 2 2 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))
