Question
Use the following information to answer questions 3 through 6. Farmers State Bank of Mumford is currently assessing interest rate risk. The information compiled includes
Use the following information to answer questions 3 through 6.
Farmers State Bank of Mumford is currently assessing interest rate risk. The information compiled includes the following items:
Fixed-rate loans maturing in 6 months 5,000,000
Fixed-rate loans maturing in 12 months 12,000,000
All other fixed-rate loans 75,000,000
Fixed rate securities maturing in 6 months 15,000,000
Fixed rate securities maturing in 12 months 12,000,000
All other fixed-rate securities 5,000,000
Variable rate loans maturing in 6 months 12,500,000
Variable rate loans maturing in 12 months 32,500,000
All other variable-rate loans 45,000,000
Federal funds sold 66,000,000
NOW accounts 35,000,000
Money Market Deposit Accounts (MMDA) 15,000,000
Federal funds purchased 10,000,000
Passbook savings accounts 750,000
3 month certificates of deposit (CDs) 46,000,000
6 month certificates of deposit (CDs) 69,000,000
1 year certificates of deposit (CDs) 27,600,000
5 year certificates of deposit (CDs) 41,400,000
All variable rate loans at Farmers State Bank are repriced at the beginning of each month. Federal funds sold and purchased are repriced daily. Interest rates on passbook savings accounts can change once a year. Interest rates on NOW and MMDA accounts change daily.
- Categorize each of the items from Farmers State Bank into assets and liabilities. Circle the assets.
- Next, categorize assets into:
RSA 0 to 6 month repricing, $____________
RSA 7 to 12 month repricing $____________
All other assets. $____________
Categorize liabilities into:
RSL 0 to 6 month repricing $___________
RSL 7 to 12 month repricing $___________
All other liabilities. $___________
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