Question
The financial statements for BSW National Bank (BSWNB) are shown below: Balance Sheet BSW National Bank Assets Liabilities and Equity Cash and due from banks
The financial statements for BSW National Bank (BSWNB) are shown below:
Balance Sheet BSW National Bank
| Assets | Liabilities and Equity | ||
| Cash and due from banks | $ ?936 | Demand deposits | $?5,040 |
| Investments | 3,100 | Small time deposits | 4,020 |
| Federal funds sold | 1,664 | Jumbo CDs | 4,680 |
| Loans (less reserve for loan losses of 2,400) | 9,120 | Federal funds purchased | 312 |
| Premises | 780 | Equity | 1,548 |
| Total assets | $15,600 | Total liabilities/equity | $15,600 |
Income Statement BSW National Bank
| Interest income | $1,150 |
| Interest expense | 475 |
| Provision for loan losses | 150 |
| Noninterest income | 260 |
| Noninterest expense | 525 |
| Taxes | 60 |
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| a. What is the dollar value of earning assets held by BSWNB? (Please show work)
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| b. What is the dollar value of interest-bearing liabilities held by BSWNB? (Please show work)
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| c. What is BSWNB's total operating income? (Please show work)
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| d. Calculate BSWNB's asset utilization ratio. (Please show work)
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| e. Calculate BSWNB's net interest margin. (Please show work) |
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Introduction To Financial Management
Authors: Sudanshu Pandeya
1st Edition
1774695316, 978-1774695319
