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Part 2. Managing interest rate risk: Maturity Gap analysis and Duration Gap analysis. (A) Use the balance sheet shown below for United First Bank (UFB)

Part 2. Managing interest rate risk: Maturity Gap analysis and Duration Gap analysis. (A) Use the balance sheet shown below for United First Bank (UFB) to answer the following questions:

Balance Sheet of United First Bank as of December 31, 2016 (thousands of dollars)

Assets

Liabilities & Capital

Required reserves

$90

Demand deposits

$35

Federal funds sold

$30

NOW accounts

$210

90-day T-bills

$75

MMDAs

$340

180-day T-notes

$120

3-month CDs

$250

5-year T-bonds

$480

5-year CDs

$795

Fixed-rate consumer loans

$150

6-month commercial paper

$40

Floating-rate commercial loans

$170

Fixed-rate bonds

$430

Fixed-rate commercial loans

$325

Equity capital

$900

Floating-rate mortgages

$125

Total Liabilities & Capital

$3,000

Fixed-rate mortgages

$735

Other fixed assets

$700

Total Assets

$3,000

2. Identify by name the individual rate-sensitive liabilities (RSLs) for UFB. What is the total dollar amount for the RSLs?

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