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5. The latest report of condition and income and expense statement for Smiling Merchants National Bank are as shown in the following tables: Income and

5. The latest report of condition and income and expense statement for Smiling Merchants National Bank are as shown in the following tables:
Income and Expense Statement Amount
Interest and Fees on Loans 50.00
Interest Dividends on Securities 6.00
Total Interest Income 56.00
Interest Paid on Deposits 40.00
Interest on Non-Deposit Borrowings 6.00
Total Interest Expense 46.00
Net Interest Income 10.00
Provision for Loan Losses 5.00
Noninterest Income and Fees 20.00
Noninterest Expenses: Salaries and Employee Benefits 10.00
Overhead Expenses 5.00
Other Noninterest Expenses 2.00
Total Noninterest Expenses 17.00
Pretax operating income 8.00
Securities Gains (or Losses) 2.00
Pretax net operating income 10.00
Taxes 2.00
Net Operating Income 8.00
Net Extraordinary items (1.00)
Net Income 7.00
Report of Condition
Assets Amounts Liabilities Amount
Cash and Deposits due from banks 100 Demand deposits 190
Investment Securities 150 Savings deposits 180
Federal Funds Sold 10 Time deposits 470
Net Loans 700 Federal funds purchased 80
Allowance for loan losses 25 Total liabilities 920
Unearned income on loans 5 Equity Capital
Net Fixed Assets 50 Common stock 20
Total Assets 1010 Surplus 35
Retained earnings 35
Total capital 90
Total earning assets 860 Interest bearing deposits 650
Find below ratios using above information from Income statement and balance sheet:
Ratios Answer
ROE
ROA
Net interest margin
Net noninterest margin
Net operating margin
Earnings spread
Net profit margin
Asset utilization
Equity multiplier
Tax management efficiency
Expense control efficiency
Asset management efficiency
Funds management efficiency
Operating efficiency ratio

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