Onshore Bank has $38 million in assets, with risk-adjusted assets of $28 million. Core Equity Tier 1 (CET1) capital is $1,300,000, additional Tier I capital is $520,000, and Tier II capital is $436,000. The current value of the CET1 ratio is 4.64 percent, the Tier I ratio is 6.5 percent, and the total capital ratio is 8.06 percent.

Calculate the new value of CET1, Tier I, and total capital ratios for the following transactions:

b.	The bank issues $3.8 million of CDs and uses the proceeds to issue category 1 mortgage loans with a loan-to-value ratio of 80 percent. (Round your answers to 2 decimal places. (e.g., 32.16))

CET1 ratio

%

Tier I ratio

%

Total capital ratio

%

c.	The bank receives $518,000 in deposits and invests them in T-bills. (Round your answers to 2 decimal places. (e.g., 32.16))

CET1 ratio	%
Tier I ratio	%
Total capital ratio	%

d.	The bank issues $818,000 in common stock and lends it to help finance a new shopping mall. The developer has an A+ credit rating. (Round your answers to 2 decimal places. (e.g., 32.16))

CET1 ratio

%

Tier I ratio

%

Total capital ratio

%

e.	The bank issues $2.8 million in nonqualifying perpetual preferred stock and purchases general obligation municipal bonds. (Round your answers to 2 decimal places. (e.g., 32.16))

CET1 ratio	%
Tier I ratio	%
Total capital ratio	%

f.	Homeowners pay back $5.8 million of mortgages with loan-to-value ratios of 40 percent and the bank uses the proceeds to build new ATMs. (Round your answers to 2 decimal places. (e.g., 32.16))

CET1 ratio	%
Tier I ratio	%
Total capital ratio	%