- Compute the INTEREST EXPENSE RATIO, PROVISION FOR LOAN LOSSESRATIO, NON INTEREST EXPENSE RATIO,and the TAX RATIOfor 2018. Which of these ratios most negatively affected the profit margin in 2018?
BANK OF AMERICA CORPORATION Income and Expense Dollar figures in thousands 31-Dec-18 31-Dec-17 3 Total interest income 57,533,000 50,570,000 4 Total interest expense 3,170,000 6.891.000 50,642,000 47,400,000 5 Net interest income 25,874,000 26,501,000 6 Total noninterest income 1,990,000 7 Fiduciary activities 1,853,000 Service charges on deposit accounts Trading account gains & fees Additional noninterest income Securities gains (losses) 5,511,000 5,598,000 3,974,000 3,238,000 10 14,979,000 14,983,000 11 47,000 202,000 36,605,000 36,851,000 12 Total noninterest expense Salaries and employee benefits Premises and equipment expense Additional noninterest expense 13 17,438,000 17,683,000 14 4,667,000 4,600,000 14,568,000 15 14,500,000 16 Provision for loan and lease losses 3,257,000 3,319,000 37,281,000 33,104,000 17 Pre-tax net operating income 18 Applicable income taxes 19 Income before extraordinary items 20 Discontinued operations (Extraordinary gains- net 21 Net income attributable to noncontrolling interest 22 Net income attributable to bank and noncontrollin 29,566,000 24 Cash dividends 25 Sale, conversion, retirement of capital stock, net 7,715,000 11,628,000 29,566,000 21,476,000 C 0 0 21,476,000 26,445,000 22,475,000 0 Note: Accounting change as of September 2016, Extraordinary Gains,Net now only includes Discontinued Operations Expense. A B C E F Dollar figures in thousands 1 Bank of America, National Association 2 3 31-Dec-18 31-Dec-17 Assets and Liabilities 4 5 1,751,524,000 1,782,639,000 1 Total assets 6 7 2 Cash and due from depository institutions 159,983,000 149,215,000 8 3 Securities 418,582,000 423,242,000 4 Federal funds sold & repos 50,686,000 31,441,000 5 Net loans & leases 930,337,000 10 915,367,000 87,316,000 11 6 Trading account assets 77,357,000 7 Bank premises and fixed assets 9,418,000 12 8,737,000 8 Other real estate owned 285,000 13 357,000 9 Goodwill and other intangibles 14 59,148,000 59,495,000 10 All other assets 15 76,771,000 76,426,000 16 1,782,639,000 1,751,524,000 11 Total liabilities and capital 17 18 12 Total liabilities 1,574,911,000 1,543,740,000 13 Total deposits 1,386,761,000 19 1,456,846,000 14 Federal funds purchased & repos 35,619,000 20 18,405,000 39,393,000 21 15 Trading liabilities 26,773,000 16 Other borrowed funds 22 46,609,000 56,080,000 17 Subordinated debt 23 1,618,000 1,680,000 18 All other liabilities 24 24,660,000 24,207,000 19 Total equity capital 25 207,728,000 207,784,000 20 Total bank equity capital 26 207,718,000 207,775,000 27 21 Perpetual preferred stock 22 Common stock 28 3,020,000 3,020,000 23 Surplus 29 174,233,000 173,198,000 30 24 Undivided profits 30,465,000 31,557,000 31 25 Noncontrolling interests in consolidated subsidiaries 10,000 9,000 O Foot Notes and additional infromation 1 Total employees (full-time equivalent) 142,412 136,502 2 Deposits held in domestic offices 1,374,069,000 1,301,404,000 3 % of deposits insured 39.09% 40.05% 4 Interest-bearing deposits 909,094,000 985,186,000 9,522,000 5 Loan loss allowance 10,237,000 6 Interest-bearing balances 135,527,000 123,834,000 7 Noncurrent loans and leases 8,406,000 11,484,000 8 Noncurrent loans that are wholly or partially guarante 2,126,000 3,677,000 9 Income earned, not collected on loans 4,233,000 4,038,000 10 Earning assets 1,587,886,000 1,560,840,000 11 Long-term assets (5+years) 567,125,000 557,972,000 12 Average Assets, year-to-date 1,771,363,200 1,713,474,400 13 Average Assets, quarterly 1,790,260,000 1,738,369,500 14 Total risk weighted assets 1,194,874,000 1,200,991,000 15 Adjusted average assets for leverage capital purposes 1,719,098,000 1,672,190,000 16 Life insurance assets 22,113,000 21,923,000 17 General account life insurance assets 2,884,000 2,890,000 18 Separate account life insurance assets 19,229,000 19,033,000 19 Hybrid life insurance assets 0 0 20 Volatile liabilities 162,809,000 208,158,000 21 Insider loans 13,000 13,000 22 FHLB advances 19,881,000 21,146,000 23 Loans and leases held for sale 10,065,000 11,192,000 24 Unused loan commitments 817,904,000 799,635,000 25 Common equity Tier I capital 26 Additional Tier I capital 27 Tier 2 risk-based capital 149,824,000 150,552,000 0 0 11,936,000 12,691,000 28 Total unused commitments 817,904,000 799,635,000 29 Derivatives 18,028,718,000 18,401,323,000 I need the calculations BANK OF AMERICA CORPORATION Income and Expense Dollar figures in thousands 31-Dec-18 31-Dec-17 3 Total interest income 57,533,000 50,570,000 4 Total interest expense 3,170,000 6.891.000 50,642,000 47,400,000 5 Net interest income 25,874,000 26,501,000 6 Total noninterest income 1,990,000 7 Fiduciary activities 1,853,000 Service charges on deposit accounts Trading account gains & fees Additional noninterest income Securities gains (losses) 5,511,000 5,598,000 3,974,000 3,238,000 10 14,979,000 14,983,000 11 47,000 202,000 36,605,000 36,851,000 12 Total noninterest expense Salaries and employee benefits Premises and equipment expense Additional noninterest expense 13 17,438,000 17,683,000 14 4,667,000 4,600,000 14,568,000 15 14,500,000 16 Provision for loan and lease losses 3,257,000 3,319,000 37,281,000 33,104,000 17 Pre-tax net operating income 18 Applicable income taxes 19 Income before extraordinary items 20 Discontinued operations (Extraordinary gains- net 21 Net income attributable to noncontrolling interest 22 Net income attributable to bank and noncontrollin 29,566,000 24 Cash dividends 25 Sale, conversion, retirement of capital stock, net 7,715,000 11,628,000 29,566,000 21,476,000 C 0 0 21,476,000 26,445,000 22,475,000 0 Note: Accounting change as of September 2016, Extraordinary Gains,Net now only includes Discontinued Operations Expense. A B C E F Dollar figures in thousands 1 Bank of America, National Association 2 3 31-Dec-18 31-Dec-17 Assets and Liabilities 4 5 1,751,524,000 1,782,639,000 1 Total assets 6 7 2 Cash and due from depository institutions 159,983,000 149,215,000 8 3 Securities 418,582,000 423,242,000 4 Federal funds sold & repos 50,686,000 31,441,000 5 Net loans & leases 930,337,000 10 915,367,000 87,316,000 11 6 Trading account assets 77,357,000 7 Bank premises and fixed assets 9,418,000 12 8,737,000 8 Other real estate owned 285,000 13 357,000 9 Goodwill and other intangibles 14 59,148,000 59,495,000 10 All other assets 15 76,771,000 76,426,000 16 1,782,639,000 1,751,524,000 11 Total liabilities and capital 17 18 12 Total liabilities 1,574,911,000 1,543,740,000 13 Total deposits 1,386,761,000 19 1,456,846,000 14 Federal funds purchased & repos 35,619,000 20 18,405,000 39,393,000 21 15 Trading liabilities 26,773,000 16 Other borrowed funds 22 46,609,000 56,080,000 17 Subordinated debt 23 1,618,000 1,680,000 18 All other liabilities 24 24,660,000 24,207,000 19 Total equity capital 25 207,728,000 207,784,000 20 Total bank equity capital 26 207,718,000 207,775,000 27 21 Perpetual preferred stock 22 Common stock 28 3,020,000 3,020,000 23 Surplus 29 174,233,000 173,198,000 30 24 Undivided profits 30,465,000 31,557,000 31 25 Noncontrolling interests in consolidated subsidiaries 10,000 9,000 O Foot Notes and additional infromation 1 Total employees (full-time equivalent) 142,412 136,502 2 Deposits held in domestic offices 1,374,069,000 1,301,404,000 3 % of deposits insured 39.09% 40.05% 4 Interest-bearing deposits 909,094,000 985,186,000 9,522,000 5 Loan loss allowance 10,237,000 6 Interest-bearing balances 135,527,000 123,834,000 7 Noncurrent loans and leases 8,406,000 11,484,000 8 Noncurrent loans that are wholly or partially guarante 2,126,000 3,677,000 9 Income earned, not collected on loans 4,233,000 4,038,000 10 Earning assets 1,587,886,000 1,560,840,000 11 Long-term assets (5+years) 567,125,000 557,972,000 12 Average Assets, year-to-date 1,771,363,200 1,713,474,400 13 Average Assets, quarterly 1,790,260,000 1,738,369,500 14 Total risk weighted assets 1,194,874,000 1,200,991,000 15 Adjusted average assets for leverage capital purposes 1,719,098,000 1,672,190,000 16 Life insurance assets 22,113,000 21,923,000 17 General account life insurance assets 2,884,000 2,890,000 18 Separate account life insurance assets 19,229,000 19,033,000 19 Hybrid life insurance assets 0 0 20 Volatile liabilities 162,809,000 208,158,000 21 Insider loans 13,000 13,000 22 FHLB advances 19,881,000 21,146,000 23 Loans and leases held for sale 10,065,000 11,192,000 24 Unused loan commitments 817,904,000 799,635,000 25 Common equity Tier I capital 26 Additional Tier I capital 27 Tier 2 risk-based capital 149,824,000 150,552,000 0 0 11,936,000 12,691,000 28 Total unused commitments 817,904,000 799,635,000 29 Derivatives 18,028,718,000 18,401,323,000 I need the calculations
