The financial statements for First National Bank (FNB) are shown below: Balance Sheet First National Bank Assets Cash Demand deposits from other FIS Investments Federal funds sold Loans Reserve for loan losses. Premises Total assets $ 540 1,800 4,500 2,295 16,425 (2,025) 2,135 $25,670 Income Statement First National Bank Interest income Interest expense Provision for loan losses Noninterest income. Noninterest expense Taxes. $3,050 2,020 270 230 510 90 Liabilities and Equity Demand deposits Small time deposits Jumbo CDs Federal funds purchased Equity Total liabilities/equity $ 5,570 11,100 3,650 2,700 2,650 $25,670 a. Calculate the dollar value of FNB's earning assets. b. Calculate FNB'S ROA. (Round your answer to 2 decimal places. (e.g., 32.16)) c. Calculate FNB's asset utilization ratio. (Round your answer to 2 decimal places. (e.g., 32.16)) d. Calculate FNB's spread. (Round your answer to 2 decimal places, (e.g.. 32.16))

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The financial statements for First National Bank (FNB) are shown below:
Balance Sheet First National Bank
Assets
Cash
Demand deposits from other FIS
Investments
Federal funds sold
Loans
Reserve for loan losses.
Premises
Total assets
$ 540
1,800
4,500
2,295
16,425
(2,025)
2,135
$25,670
Income Statement First National Bank.
Interest income
Interest expense
Provision for loan losses
Noninterest income
Noninterest expense
Taxes
a. FNB's earning assets
b. FNB's ROA
c. FNB's asset utilization ratio
d.
FNB's spread
$3,050
2,020
270
230
510
90
Liabilities and Equity
Demand deposits
Small time deposits.
Jumbo CDs
Federal funds purchased
Equity
Total liabilities/equity
%
%
%
$ 5,570
11,100
3,650
2,700
2,650
a. Calculate the dollar value of FNB's earning assets.
b. Calculate FNB's ROA. (Round your answer to 2 decimal places. (e.g., 32.16))
c. Calculate FNB's asset utilization ratio. (Round your answer to 2 decimal places. (e.g., 32.16))
d. Calculate FNB's spread. (Round your answer to 2 decimal places. (e.g., 32.16))
$25,670
Transcribed Image Text:The financial statements for First National Bank (FNB) are shown below: Balance Sheet First National Bank Assets Cash Demand deposits from other FIS Investments Federal funds sold Loans Reserve for loan losses. Premises Total assets $ 540 1,800 4,500 2,295 16,425 (2,025) 2,135 $25,670 Income Statement First National Bank. Interest income Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes a. FNB's earning assets b. FNB's ROA c. FNB's asset utilization ratio d. FNB's spread $3,050 2,020 270 230 510 90 Liabilities and Equity Demand deposits Small time deposits. Jumbo CDs Federal funds purchased Equity Total liabilities/equity % % % $ 5,570 11,100 3,650 2,700 2,650 a. Calculate the dollar value of FNB's earning assets. b. Calculate FNB's ROA. (Round your answer to 2 decimal places. (e.g., 32.16)) c. Calculate FNB's asset utilization ratio. (Round your answer to 2 decimal places. (e.g., 32.16)) d. Calculate FNB's spread. (Round your answer to 2 decimal places. (e.g., 32.16)) $25,670
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