Farmers State Bank of Mumford is currently assessing interest rate risk. The information compiled includes the following items:

Fixed-rate loans maturing in 6 months 5,000,000

Fixed-rate loans maturing in 12 months 12,000,000

All other fixed-rate loans 75,000,000

Fixed rate securities maturing in 6 months 15,000,000

Fixed rate securities maturing in 12 months12,000,000

All other fixed-rate securities 5,000,000

Variable rate loans maturing in 6 months 12,500,000

Variable rate loans maturing in 12 months 32,500,000

All other variable-rate loans 45,000,000

Federal funds sold 66,000,000

NOW accounts 35,000,000

Money Market Deposit Accounts (MMDA) 15,000,000

Federal funds purchased 10,000,000

Passbook savings accounts 750,000

3 month certificates of deposit (CDs) 46,000,000

6 month certificates of deposit (CDs) 69,000,000

1 year certificates of deposit (CDs) 27,600,000

5 year certificates of deposit (CDs)41,400,000

All variable rate loans at Farmers State Bank are repriced at the beginning of each month. Federal funds sold and purchased are repriced daily. Interest rates on passbook savings accounts can change once a year. Interest rates on NOW and MMDA accounts change daily.

1.Categorize each of the items from Farmers State Bank into assets and liabilities. Circle the assets.

2.Next, categorize assets into:

RSA 0 to 6 month repricing,$____________

RSA 7 to 12 month repricing$____________

All other assets. $____________

Categorize liabilities into:

RSL 0 to 6 month repricing $___________

RSL 7 to 12 month repricing$___________

All other liabilities. $___________

3.Determine the 6 month and 12 month dollar gap at Farmers State Bank.

4.Determine the 6 month and 12 month gap ratio at Farmers State Bank.