Calculate the risk based capital ratios. Be sure to show all your calculations. Loan loss reserves up to the limit of 1.25% of risk weighted assets are allowed as Tier 2 Capital.

FIRE 487/587A Bank Capital Homework Royalty National Bank (RNB)(Dollars in Thousands) 2011 Risk Weight Assets Cash Treasuries Agency securities Federal funds sold 1-4 dwelling mortgages Other mortgages Loan loss reserves Commercial mortgages, Consumer loans 0% 0% 20% 20% 50% 100% $ 13,259 28,400 33,078 43,100 437,346 224,227 (66,234) 58,217 37,018 32,446 28,900 9,030 28,017 $906,804 100% 100% 100% 100% Fixed assets Other real estate owned Goodwill Intangibles TOTAL ASSETS Liabilities and Net Worth NOW accounts Passbook savings accts. Money market dep. accts. Time deposits Advances-FHLB Borrowed from banks Reverse repos Other borrowings Accounts payable Other liabilities Stockholders' equity LIAB. & EQUITY $ 86,542 16,847 139,129 465,411 98,000 8,700 12,850 7,351 2,717 4,547 64.710 $906,804 FIRE 487/587A Bank Capital Homework Royalty National Bank (RNB)(Dollars in Thousands) 2011 Risk Weight Assets Cash Treasuries Agency securities Federal funds sold 1-4 dwelling mortgages Other mortgages Loan loss reserves Commercial mortgages, Consumer loans 0% 0% 20% 20% 50% 100% $ 13,259 28,400 33,078 43,100 437,346 224,227 (66,234) 58,217 37,018 32,446 28,900 9,030 28,017 $906,804 100% 100% 100% 100% Fixed assets Other real estate owned Goodwill Intangibles TOTAL ASSETS Liabilities and Net Worth NOW accounts Passbook savings accts. Money market dep. accts. Time deposits Advances-FHLB Borrowed from banks Reverse repos Other borrowings Accounts payable Other liabilities Stockholders' equity LIAB. & EQUITY $ 86,542 16,847 139,129 465,411 98,000 8,700 12,850 7,351 2,717 4,547 64.710 $906,804