1. A depository institution that has the following assets with weights as indicated:

$875 million in commercial loans with one to three years maturity (100%);

$105 million in long term treasuries (0%);

$635 million loans secured by 1-4 family first mortgages (35%);

$12 million cash items in collection (20%);

$200 million in cash and reserves (0%);

$500 million in mortgage backed securities guaranteed by US government agencies (20%);

$285 million in multifamily mortgages (50%);

$250 million in consumer loans (100%);

$65 million in state and local governments bonds (20%); and

$25 million in loans that are 90 days or more past due (150%).

a. How much Common Equity Tier 1 capital must the depository institution have to be considered adequately capitalized?