1. What are Citizens' two largest asset categories? Loans and leases and Net loans and leases. What is its largest liability category? What do these assets and liabilities indicate about the major services offered by Citizens? 2. What are the largest interest income and interest expense categories for Citizens? Is this consistent with your results from the balance sheet (question 1)? EXPLAIN. 3. a) Calculate the Net Interest Margin (defined here as Net Interest Income/Interest Earning Assets) for Citizens for 2021 and 2020 ? SHOW ALL CALCULATIONS AND INTERPRET. (Hint: Use page 42 to find the inputs). MUST SHOW CALCULATIONS!!! b) Assume that Citizens' assets are more rate sensitive than its liabilities. What will the impact be on Net Interest Margin if interest rates increase? EXPLAIN. 4. What role does capital play for a depository financial institution? Explain. CALCULATE the level of capital held by Citizens for 2021 and 2020 (SHOW ALL CALCULATIONS!!!). Was the firm stronger or weaker on this measure in 2021 ? EXPLAIN WHY. (Hint: Compare the level of Capital to Total Assets each year-calculate ratios). 5. The Federal Funds Purchased and Securities sold Under Agreements to Repurchase items may appear under Liabilities for a given bank. Explain the purpose of each of these two financial instruments. Your answer should include a definition of each money market security and an explanation as to how each can be used by Citizens bank, for example. CONSOUDATED DALMCE SHEETS (in mllions, except thare data) Cach and due from bsils Interestobearing cath and due from banks: interestobearing deposts th barks Debt securtis avallable for sale, at fair value finctuding 566 and $5.7 pledged to creditors, Decamber 31, Dacember 31, 2021 respectivetyin Debe securfties held to maturity (fair yalue of 52759 and 53,357 , respectholy, and inctuding $7 and $144 pledgod to creditors, respecthvelyh? Losis heid for mle, at falr value Other loans held for sale LWBILMES AND STOOCHOLDERS EQUIT: LHBEITIES: Yaur Ended Dhcambar 31, (in millions, except thare and per thare data) Interest and foes on loans and teases Interest and foes on loans hatd for rale, at falr vatue Interent and foes on other loans held for sale Ifvertment securtites Interestbearing deporits in banks Total interest income \begin{tabular}{rrr|} \hline 2021 & \multicolumn{1}{r}{2020} & \multicolumn{1}{r}{2019} \\ \hline 54,253 & 54,719 & 55,411 \\ \hline 87 & 75 & 63 \\ 13 & 33 & 13 \\ \hline 457 & 519 & 602 \\ 16 & 11 & 30 \\ \hline 4,651 & 5,157 & 6,123 \\ \hline \end{tabular} BTERIT DCPEME: NONENTEREST INCOMSY Welghted-average common thares outstanding? Bask 425,669,451427,062,537449,731,453 Dluted. 427,415,812428,157,720451,213,701 Per common share information: Bastc earnings Dituted earnines \begin{tabular}{rrr} 55.18 & 52.22 & 53.82 \\ 5.16 & 2.22 & 3.81 \\ \hline \end{tabular} The ascumparyine tioten to comdidated finwicial Statersonts we an nitewal part of there Matements. 1. What are Citizens' two largest asset categories? Loans and leases and Net loans and leases. What is its largest liability category? What do these assets and liabilities indicate about the major services offered by Citizens? 2. What are the largest interest income and interest expense categories for Citizens? Is this consistent with your results from the balance sheet (question 1)? EXPLAIN. 3. a) Calculate the Net Interest Margin (defined here as Net Interest Income/Interest Earning Assets) for Citizens for 2021 and 2020 ? SHOW ALL CALCULATIONS AND INTERPRET. (Hint: Use page 42 to find the inputs). MUST SHOW CALCULATIONS!!! b) Assume that Citizens' assets are more rate sensitive than its liabilities. What will the impact be on Net Interest Margin if interest rates increase? EXPLAIN. 4. What role does capital play for a depository financial institution? Explain. CALCULATE the level of capital held by Citizens for 2021 and 2020 (SHOW ALL CALCULATIONS!!!). Was the firm stronger or weaker on this measure in 2021 ? EXPLAIN WHY. (Hint: Compare the level of Capital to Total Assets each year-calculate ratios). 5. The Federal Funds Purchased and Securities sold Under Agreements to Repurchase items may appear under Liabilities for a given bank. Explain the purpose of each of these two financial instruments. Your answer should include a definition of each money market security and an explanation as to how each can be used by Citizens bank, for example. CONSOUDATED DALMCE SHEETS (in mllions, except thare data) Cach and due from bsils Interestobearing cath and due from banks: interestobearing deposts th barks Debt securtis avallable for sale, at fair value finctuding 566 and $5.7 pledged to creditors, Decamber 31, Dacember 31, 2021 respectivetyin Debe securfties held to maturity (fair yalue of 52759 and 53,357 , respectholy, and inctuding $7 and $144 pledgod to creditors, respecthvelyh? Losis heid for mle, at falr value Other loans held for sale LWBILMES AND STOOCHOLDERS EQUIT: LHBEITIES: Yaur Ended Dhcambar 31, (in millions, except thare and per thare data) Interest and foes on loans and teases Interest and foes on loans hatd for rale, at falr vatue Interent and foes on other loans held for sale Ifvertment securtites Interestbearing deporits in banks Total interest income \begin{tabular}{rrr|} \hline 2021 & \multicolumn{1}{r}{2020} & \multicolumn{1}{r}{2019} \\ \hline 54,253 & 54,719 & 55,411 \\ \hline 87 & 75 & 63 \\ 13 & 33 & 13 \\ \hline 457 & 519 & 602 \\ 16 & 11 & 30 \\ \hline 4,651 & 5,157 & 6,123 \\ \hline \end{tabular} BTERIT DCPEME: NONENTEREST INCOMSY Welghted-average common thares outstanding? Bask 425,669,451427,062,537449,731,453 Dluted. 427,415,812428,157,720451,213,701 Per common share information: Bastc earnings Dituted earnines \begin{tabular}{rrr} 55.18 & 52.22 & 53.82 \\ 5.16 & 2.22 & 3.81 \\ \hline \end{tabular} The ascumparyine tioten to comdidated finwicial Statersonts we an nitewal part of there Matements