Using Excel spreadsheet:

1. 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:

   	Institution A	Institution B
   Tier I leverage ratio (%)	9.80	8.45
   Net income before taxes/risk-weighted assets (%)	2.00	1.65
   Nonperforming loans and leases/gross assets (%)	0.35	0.90
   Other real estateowned/gross assets (%)	0.42	0.90
   Brokered deposits/total assets (%)	2.20	0.75
   One year asset growth	4.35	6.80
   Loans as a Percentage of Total Assets:
   Construction and Development	0.00	0.00
   Commercial and Industrial	10.56	18.68
   Leases	0.65	2.15
   Other Consumer	17.55	18.95
   Loans to Foreign Government	0.00	0.60
   Real Estate Loans Residual	0.00	0.00
   Multifamily Residential	0.00	1.10
   Nonfarm Nonresidential	0.00	0.00
   14 Family Residential	41.10	33.54
   Loans to Depository Banks	0.00	0.50
   Agricultural Real Estate	1.10	0.35
   Agricultural	0.40	0.40
   page 442 CAMELS Components:
   C	1	2
   A	1	1
   M	1	1
   E	2	1
   L	1	3
   S	2	3

   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 work in excel with the formula