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In addition to the bank balance sheet information shown below, the bank also has an Allowance for Loan Losses (ALL) of $20. The preferred stock

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In addition to the bank balance sheet information shown below, the bank also has an Allowance for Loan Losses (ALL) of $20. The preferred stock shown is qualifying noncummulative perpetual preferred stock. Perform all the necessary calculations (risk weighted assets and all three vital ratios) in order to determine the following: under U.S. Prompt Corrective Action or PCA policy, which exact PCA capitalization classification does this bank currently possess and why? Show all calculations in order to receive credit. Assets Amount Liabilities and Equity Cash 140 Non-interest deposits 300 Securities NOW checking U.S. Treasures MMDA Fannie Mae (FNMA) MBS CDs Loans (net) Fed Funds purchased Home mortgage loans 380 Subordinated debt capital Commercial loans 1000 Preferred stock, perpetual Fed funds sold Common cquity $2,000 $2,000 In addition to the bank balance sheet information shown below, the bank also has an Allowance for Loan Losses (ALL) of $20. The preferred stock shown is qualifying noncummulative perpetual preferred stock. Perform all the necessary calculations (risk weighted assets and all three vital ratios) in order to determine the following: under U.S. Prompt Corrective Action or PCA policy, which exact PCA capitalization classification does this bank currently possess and why? Show all calculations in order to receive credit. Assets Amount Liabilities and Equity Cash 140 Non-interest deposits 300 Securities NOW checking U.S. Treasures MMDA Fannie Mae (FNMA) MBS CDs Loans (net) Fed Funds purchased Home mortgage loans 380 Subordinated debt capital Commercial loans 1000 Preferred stock, perpetual Fed funds sold Common cquity $2,000 $2,000

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