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

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

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.

	Institution 1		Institution 2
Tier I leverage ratio (%)		8.74		7.87
Loans past due 30–89 days/gross assets (%)		0.57		0.68
Nonperforming assets/gross assets (%)		0.47		0.62
Net loan charge-offs/gross assets (%)		0.40		0.44
Net income before taxes/risk-weighted assets (%)		2.27		1.98
Adjusted brokered deposits ratio (%)		0.00		15.68
CAMELS components:
C		1		1
A		1		3
M		2		1
E		2		1
L		2		2
S		2		2

	Pricing Multiplier
Uniform Amount	4.861
Tier I leverage ratio (%)	(0.056)
Loans past due 30-89 days/gross assets (%)	0.575
Nonperforming assets/gross assets (%)	1.074
Net loan charge-offs/gross assets (%)	1.210
Net income before taxes/risk-weighted assets (%)	(0.764)
Adjusted brokered deposits ratio (%)	0.065
Weighted average CAMELS component ratings	1.095

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 1	Institution 2
Initial assessment rate

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

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