Instructions

To download the financial statements, 1) go to www.citizensbank.com Links to an external site.. Click on About Us and then on Investor Relations. Next on the left you will see Annual Report. Click on Down load the latest Annual Report, Scroll to the Consolidated Balance Sheet and Consolidated Statement of Operations.

Questions

In your report, answer the following questions. Use the information from the most recent year on the financial statements unless otherwise noted. Support all answers. Be concise and precise.

What are Citizens two largest asset categories? What is its largest liability category? What do these assets and liabilities indicate about the major services offered by Citizens?

What are the largest income and expense categories for Citizens? Is this consistent with your results from the balance sheet? Explain.

a) What is the Net Interest Margin for Citizens for the last two reporting years? Show all calculations and interpret. b) Assume that Citizens liabilities are more rate sensitive than its assets. What will be the impact on Net Interest Margin if interest rates increase? Explain.

What role does capital play for a depository financial institution? Calculate the level of capital held by Citizens for the last two reporting years. Was the firm stronger or weaker on this measure in the last year? Explain.

Go to the Balance Sheet. Under Liabilities, note the Federal Funds Purchased and Repurchase Agreements items. Explain the purpose of these two financial instruments used by Citizens. Your answer should include a definition of each money market security.

Question 1,2 and 5. Are simply "look-up" questions. This assignment requires you to look at "real" financial statement data. Be careful how you read the statements to get your answers. Questions 3 and 4 require good calculations and then good managerial analysis. Take your time in answering the questions.