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Use the attached bank balance sheet and income statement to answer the following questions. 1 . Analyze the bank s financial performance by answering the

Use the attached bank balance sheet and income statement to answer the following questions.
1. Analyze the banks financial performance by answering the following questions.
a. What is the total dollar value of earning assets for each year (2022 and 2023)? How has the
banks earning assets changed from 2022 to 2023? What does this indicate for the bank?
b. What is the dollar amount of total operating income each year (2022 and 2023)? How has the
banks total operating income changed from 2022 to 2023? What does this indicate for the
bank?
c. What is the banks net interest margin (NIM) for each year (2022 and 2023)? How has the banks
NIM changed from 2022 to 2023? What does this indicate for the bank?
2. Calculate the following ratios for the bank for each year (2022 and 2023).(5 points each)
a. Asset utilization ratio
b. Equity multiplier (EM)
c. Interest expense ratio
d. Interest income ratio
e. Noninterest expense ratio
f. Noninterest income ratio
g. Profit margin (PM)
h. Provision for loan loss ratio
i. Return on assets (ROA)
j. Return on equity (ROE)
k. Spread
l. Tax ratio
3. Using the ratios in 2., analyze the banks performance over the year from 2022 to 2023 in each of
the following areas.
a. Profitability
b. Asset utilization
c. Interest income versus interest expense

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