Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Machine Learning In Quantitative Finance An Advanced Textbooks In Mathematics

Authors: Hao Ni, Xin Dong, Jinsong Zheng, Guangxi Yu

1st Edition

1786349361, 9781786349361

More Books

Students also viewed these Finance questions