Refer to Table 13-20, Table 13-21. Table 13-23 and Table 13-24. 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. Weights for the CAMELS components to calculate the weighted average CAMELS rating are 25 percent, 20 percent, 25 percent, 10 percent, 10 percent, and 10 percent for the C, A, M, E, L, and S components, respectively. Further, the institutions have the following financial ratios and CAMELS ratings: Institution A Institution 8 Financial Ratios: Leverage Ratio. 8.70 7.83 Nonperforming Loans and Leases/Gross 0.43 Assets 0.58 Other Real Estate Owned/Gross Assets 0.80 0.82 Net Income Before Taxes/Total Assets 2.23 2.05 Brokered Deposit Ratio 2.25 2.55 One-Year Asset Growth 6.80 6.15 Loans as a Percent of Total Assets: Construction & Development Commercial & Industrial Leases Other Consumer Loans to Foreign Government Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 0.45 0.38 14.36 13.80 1.55 0.65 18.35 18.05 0.40 0.20 0.00 0.00 0.90 0.85 0.00 0.00 1-4 Family Residential 39.48 36.05 Loans to Depository Banks 1.20 1.60 Agricultural Real Estate 2.55) 4.00 Agriculture 4.20 3.20 CAMELS components: 1 3 3 3 2 2 Calculate the initial deposit insurance assessment rate for each institution (Do not round Intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) Initial assessment rate Institution A Institution B
Refer to Table 13-20, Table 13-21. Table 13-23 and Table 13-24. 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. Weights for the CAMELS components to calculate the weighted average CAMELS rating are 25 percent, 20 percent, 25 percent, 10 percent, 10 percent, and 10 percent for the C, A, M, E, L, and S components, respectively. Further, the institutions have the following financial ratios and CAMELS ratings: Institution A Institution 8 Financial Ratios: Leverage Ratio. 8.70 7.83 Nonperforming Loans and Leases/Gross 0.43 Assets 0.58 Other Real Estate Owned/Gross Assets 0.80 0.82 Net Income Before Taxes/Total Assets 2.23 2.05 Brokered Deposit Ratio 2.25 2.55 One-Year Asset Growth 6.80 6.15 Loans as a Percent of Total Assets: Construction & Development Commercial & Industrial Leases Other Consumer Loans to Foreign Government Real Estate Loans Residual Multifamily Residential Nonfarm Nonresidential 0.45 0.38 14.36 13.80 1.55 0.65 18.35 18.05 0.40 0.20 0.00 0.00 0.90 0.85 0.00 0.00 1-4 Family Residential 39.48 36.05 Loans to Depository Banks 1.20 1.60 Agricultural Real Estate 2.55) 4.00 Agriculture 4.20 3.20 CAMELS components: 1 3 3 3 2 2 Calculate the initial deposit insurance assessment rate for each institution (Do not round Intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) Initial assessment rate Institution A Institution B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Refer to Table 13-20, Table 13-21. Table 13-23 and Table 13-24.
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. Weights for the CAMELS components to calculate the weighted average
CAMELS rating are 25 percent, 20 percent, 25 percent, 10 percent, 10 percent, and 10 percent for the C, A, M, E, L, and S components,
respectively. Further, the institutions have the following financial ratios and CAMELS ratings:
Institution A
Institution 8
Financial Ratios:
Leverage Ratio.
8.70
7.83
Nonperforming Loans and Leases/Gross
0.43
Assets
0.58
Other Real Estate Owned/Gross Assets
0.80
0.82
Net Income Before Taxes/Total Assets
2.23
2.05
Brokered Deposit Ratio
2.25
2.55
One-Year Asset Growth
6.80
6.15
Loans as a Percent of Total Assets:
Construction & Development
Commercial & Industrial
Leases
Other Consumer
Loans to Foreign Government
Real Estate Loans Residual
Multifamily Residential
Nonfarm Nonresidential
0.45
0.38
14.36
13.80
1.55
0.65
18.35
18.05
0.40
0.20
0.00
0.00
0.90
0.85
0.00
0.00
1-4 Family Residential
39.48
36.05
Loans to Depository Banks
1.20
1.60
Agricultural Real Estate
2.55)
4.00
Agriculture
4.20
3.20
CAMELS components:
1
3
3
3
2
2
Calculate the initial deposit insurance assessment rate for each institution (Do not round Intermediate calculations. Round your
answers to 3 decimal places. (e.g., 32.161))
Initial assessment rate
Institution A
Institution B
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