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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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