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- National Bank has the following
balance sheet (in millions) and has no off-balance-sheet activities.
- What is the Tier I leverage ratio?
- In what capital risk category would National Bank be placed?
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- The latest statement of financial position for Malorie Limited is summarized below: GH¢'000 GHc '000 GH 000 Non-current assets (NBV) 5.700 Current assets Inventory 3.500 Receivables 1.800 5.300 Current liabilities Unsecured payables 4.000 Unsecured Bank overdraft 1.600 5.600 (300) Total assets less current liabilities 5.400 Non-Current Liabilities 10% secured debentures (13.000 Net assets 2,400 Financed by: Stated capital Income Surplus 4.000 (1.600) 2.400 Malorie's stated capital consists of 4.000.000 ordinary shares issued at GHel.00 and fully paid. The non-current assets comprise freehold property with a book value of GH¢3.000.000 and plant and machinery with a book value of GHc2,700,000. The debentures are secured on the freehold property In recent years the company has suffered a series of trading losses which have brought it to the point of liquidation. The directors estimate that in a forced sale the assets will realize the following amounts. GHSFreehold premises Plant and…The financial statements for MHM Bank (MHM) are shown below: Assets Cash and due from banks Demand deposits at other FIS Investments Federal funds sold Loans (less reserve for loan losses of 3,400) Premises Total assets Income Statement MHM Bank Interest income Interest expense Provision for loan losses Noninterest income Noninterest expense Taxes a. MHM's earning assets b. MHM's interest-bearing liabilities Balance Sheet MHM Bank $ 2,020 2,100 6,280 3,090 20,260 2,370 $36, 120 C. MHM's spread d. MHM's interest expense ratio $ 4,258 2,224 1,100 800 1,075 335 Liabilities and Equity a. Calculate the dollar value of MHM's earning assets. b. Calculate the dollar value of MHM's interest-bearing liabilities. c. Calculate MHM's spread. (Do not round intermediate calculations. Round your percentage answer to 3 decimal places. (e.g., 32.161)) d. Calculate MHM's interest expense ratio. (Round your percentage answer to 3 decimal places. (e.g., 32.161)) % % Demand deposits Small time deposits…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…
- Key information from the balance sheet of Transurban Bank is given below (all numbers are in millions of dollars). Cash Loans Total Assets 40 160 200 a. $0.3600 million O b. $0.2100 million O c. $0.1700 million O d. $0.1400 million e. None of the other options is correct Liabilities and equity 156 24 20 Deposits Long-term debt Equity Total 200 Due to increasing competition, the bank expects its deposits to decrease by $24 million. The average interest earned on the loans is 5 percent and the average cost of deposits is 3.5 percent. Borrowing more debt will cost the bank 4.5 percent in the short term. The bank intends to keep $30 million in cash to meet its liquidity needs and then compensate any shortfall to fund its loans by purchasing liquidity. What will be the cost of using this strategy to meet the expected decline in deposits?1. Norfolk has prepared a Report of Condition for the FDIC. Please fill in the missing items from its statement shown below (all figures in millions of dollars): Gross loans Allowance for loan losses Investment securities Common stock Surplus Total equity capital Cash and due from banks Miscellaneous assets $310 15 36 5 Bank premises and equipment, gross Trading-account securities Other real estate owned Goodwill and other intangibles Total liabilities 15 30 Preferred stock 10 Nondeposit borrowings 25 Bank premises and equipment, net Please calculate these items and show your process: Total assets Net loans Undivided profit Depreciation Total deposits 23 $2 4 3 385 3 40 2012. The Bank of Greater Pittsburg has the balance sheet listed on the right if it has to write off $26 million in loans is it solvent or insolvent (please explain your answer). Reserves Loans Securities Assets $200M Depostis $500M Debt $200M Capital Liabilities $750M $125M $25M
- Examine the balance sheet of commercial banks in the following table. Liabilities and Net Assets S Billion 96 Total $ Billion 9% Total Worth Real assets Liabilities Equipment and premises 193.7 13 9% Deposits s 10,277.3 67.1 96 Other real Debt and other 48.9 0.3 990.0 6.5 estate borrowed funds Federal funds and Total real assets 2426 16 | % repurchase agreements 942.0 6.2 Other 929.0 6.1 Total liabilities $| 13,138.3 85.8 9% Financial assets Cash 890.3 5.8 % Investment 5,032.1 32.9 securities Loans and 6,711.3 43.8 leases Other financial 1,215.2 7.9 assets Total financial S 13,848.9 90.5 9% assetsExamine the balance sheet of commercial banks in the tollowing tabie. Assete S Blion Total Liabilities and Net Horth SBAllion Total Liabilities Real anseta Equipment and premisen Other real estate $ 10,281.3 1,206.0 156.2 0.9 Deposita Debt and other borroved funda Federal funda and repurehase 56.0 8.9 0.4 1.0 Total real assets 225.1 1.2 1,967.0 10.7 agreements Other 1,523.0 S 15,057.3 8.3 82.0 Total liabilities Tinaneial aeta Cash 898.3 4.9 43.7 34. 1,223.2 6.? 92.1 8,032.1 6,759.3 Investment securities Loans and leaees Other finaneial asseta Total financial asseta 16,912.9 Other assets Intangible asseta other Total other asseta 421.4 2.3 1,230.1 1.4 6.7 $ 3,310. 18,368.1 100.0 Net vorth 18.0 $ 18,368.1 100.0 Total Balance sheet of FDIC-insured commercial banks and savings institutions Note: Column sums may differ from total because of rounding error. Source: Federal Deposit Insurance Corporation, www.fdic.gov, March 2016. a. What is the ratio of real assets to total assets? (Round…2. Mean Green Bank started its first day of operations with $10 million in capital. $100 million in checkable deposits is received. The bank issues a $30 million commercial loan and another $30 million in mortgages. The required reserves are 8%.
- The following data are provided by Coach Sarah Company:Assets at book valueP750,000Assets at net realizable value525,000Fully secured mortgage300,000Unsecured accounts and notes payable350,000Unrecorded liabilities:Interest on bank notes2,500Estimated cost of administering estate30,000What is the estimated deficiency?Miracle Bank's balance sheet is the following. Assets Reserves Loans Short-term securities a. 70 Miracle Bank's leverage ratio is Ob. 0.0857 c. 8.57 Miracle Bank Od. 80 Liabilities & Owners' Equity $600 Deposits 6,400 Debt 1000 Capital (owners' equity) $7,000 990 10Assets Cash Securities Loans Other Total Non-interest Income Non-Interest Expense Provision for Loan Loss Taxes Net Income (NI) Interest Income on Loans Interest Income on Securities Interest Expense 58.04% 6.12% $850 1,925 5,400 The bank's asset utlilization ratio (AU) is 5.46% 975 3.74% $9,150 18.60% Liability and Equity Deposits Other Borrowing Equity Total Income Statement $450 95 246 78 Use the following formula for the operating income: Operating income = Interest revenue + Noninterest income - Interest expense - Loan loss provisions 112 35 115 $115 $6,475 1,645 1,030 $9.150