Two depository institutions have composite CAMELS ratings of 1 or 2 and are well capitalized. Thus, each

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. Further, the institutions have the following financial ratios and CAMELS ratings:

Calculate the initial deposit insurance assessment for eachinstitution.

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Institution A 0.25 0.60 0.45 0.08 Institution B Tier 1 leverage ratio (%) Loans past due 30-89 Nonperforming Net loan charge-offs/ Net income before days/gross assets (%) assets/gross assets (%) gross assets (%) taxes/risk-weighted 7.00 0.82 0.90 0.25 1.65 25.89 2 assets (%) 2.40 Adjusted brokered deposits ratio (%) 0.00 CAMELS components: 3