construct a traditional Profit/(Loss) statement for the Bank and also provide the answers to the following ratios: ? What is the Net Interest Margin? ? What is the Earnings Before Taxes as a percent of Assets? ? What is the Earnings After Taxes as a percent of Assets? ? What is the Return on Equity?

As a Treasurer of NKU Bank, you have the following information provided to you: Loan loss reserves at end of year = 1% of assets Gross interest income over the next year = 9% of assets Noninterest expenses over the next year = 3% of assets . Noninterest income over the next year: 1% of assets Gross interest expenses over the next year-5% of assets Tax rate on income = 30% Capital ratio (Capital/Assets) at end of year = 5% Leverage Ratio (Assets/Capital) at end of year 20