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.

PLEASE SHOW EXCEL WORK

Institution A 9.80 2.00 0.35 0.42 2.20 4.35 Institution B 8.45 1.65 0.90 0.90 0.75 6.80 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 Loans as a Percentage of Total Assets: Construction and Development Commercial and Industrial Leases Other Consumer Loans to Foreign Government Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 1-4 Family Residential Loans to Depository Banks Agricultural Real Estate Agricultural CAMELS Components: 0.00 10.56 0.65 17.55 0.00 0.00 0.00 0.00 41.10 0.00 1.10 0.40 0.00 18.68 2.15 18.95 0.60 0.00 1.10 0.00 33.54 0.50 0.35 0.40 A M E L 1 1 1 2 1 2 2 1 1 1 3 3 S Institution A 9.80 2.00 0.35 0.42 2.20 4.35 Institution B 8.45 1.65 0.90 0.90 0.75 6.80 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 Loans as a Percentage of Total Assets: Construction and Development Commercial and Industrial Leases Other Consumer Loans to Foreign Government Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 1-4 Family Residential Loans to Depository Banks Agricultural Real Estate Agricultural CAMELS Components: 0.00 10.56 0.65 17.55 0.00 0.00 0.00 0.00 41.10 0.00 1.10 0.40 0.00 18.68 2.15 18.95 0.60 0.00 1.10 0.00 33.54 0.50 0.35 0.40 A M E L 1 1 1 2 1 2 2 1 1 1 3 3 S