Bank Assets

Cash $2500

Repurchase $1000

Municipal bonds $1500

Single Family Mortgage $2700

Commercial Loans $4000

Agriculture $1500

Allowance for Loan Loss (350)

Bank Buildings $2000

Goodwill $150

Total:15,000

Bank Liabilities

Deposit is $13800

Subordinated Debt $250

Cumulative Preferred Stock $200

Common Stock $100

Common Stock Surplus $300

Retained Earnings $350

Total $15,000

1) How much Tier 1 capital does the bank have?

2) How much Tier 2 capital does the bank have?

3) How much total capital does the bank have?

4) How much risk weight assets does the bank have?Use 20% weighting for Repurchase agreements & Munis, 50% for home mortgages and 100%for the remaining loans and tangible assets.

5) Does bank have adequate capital ratio?