The financial statements for First National Bank (FNB) are shown below. Balance Sheet First National Bank Assets Cash $ 540 Liabilities and Equity Demand deposits $ 5,570 Demand deposits from other FIS 1,800 Small time deposits 11,100 Investments 4,500 Jumbo CDs 3,650 Federal funds sold 2,295 Federal funds purchased 2,700 Loans 16,425 Equity 2,650 Reserve for loan losses (2,025) Premises 2,135 Total assets $25,670 Total liabilities/equity $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 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)) a. FNB's earning assets b. FNB's ROA c. FNB's asset utilization ratio d. FNB's spread % % %
The financial statements for First National Bank (FNB) are shown below. Balance Sheet First National Bank Assets Cash $ 540 Liabilities and Equity Demand deposits $ 5,570 Demand deposits from other FIS 1,800 Small time deposits 11,100 Investments 4,500 Jumbo CDs 3,650 Federal funds sold 2,295 Federal funds purchased 2,700 Loans 16,425 Equity 2,650 Reserve for loan losses (2,025) Premises 2,135 Total assets $25,670 Total liabilities/equity $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 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)) a. FNB's earning assets b. FNB's ROA c. FNB's asset utilization ratio d. FNB's spread % % %
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
Problem 1PS
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Transcribed Image Text:The financial statements for First National Bank (FNB) are shown below.
Balance Sheet First National Bank
Assets
Cash
$
540
Liabilities and Equity
Demand deposits
$ 5,570
Demand deposits from other FIS
1,800
Small time deposits
11,100
Investments
4,500
Jumbo CDs
3,650
Federal funds sold
2,295
Federal funds purchased
2,700
Loans
16,425
Equity
2,650
Reserve for loan losses
(2,025)
Premises
2,135
Total assets
$25,670
Total liabilities/equity
$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
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))
a. FNB's earning assets
b.
FNB's ROA
c.
FNB's asset utilization ratio
d. FNB's spread
%
%
%
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