Question
what Net profit margin and Asset utilization is he latest report of condition and income and expense statement for Smiling Merchants National Bank are as
what Net profit margin and Asset utilization is
he latest report of condition and income and expense statement for Smiling Merchants National Bank are as shown in the following tables:
Smiling Merchants National Bank (complete)
Income and Expense Statement (Report of Income)
Interest and fees on loans
$50
Interest and dividends on securities
6
Total interest income
56
Interest paid on deposits
40
Interest on nondeposit borrowings
6
Total interest expense
46
Net interest income
10
Provision for loan losses
5
Noninterest income and fees
20
Noninterest expenses:
Salaries and employee benefits
10*
Overhead expenses
5
Other noninterest expenses
2
Total noninterest expenses
17
Net noninterest income
-2
Pretax operating income
8
Securities gains (or losses)
2
Pretax net operating income
10
Taxes
2
Net operating income
8
Net extraordinary income
-1
Net income
7
*Note: the bank currently has 40 FTE employees.
Smiling Merchants National Bank
Report of Condition
Assets
Liabilities
Cash and deposits due from banks
$100
Demand deposits
$190
Investment securities
150
Savings deposits
180
Federal funds sold
10
Time deposits
470
Net loans
700
Federal funds purchased
80
(Allowance for loan losses = 25)
Total liabilities
920
(Unearned income on loans = 5)
Equity capital
Net Fixed Assets
50
Common stock
20
Surplus
35
Total assets
980
Retained earnings
35
Total Capital
80
Total earnings assets
860
Interest-bearing deposits
650
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Multinational Financial Management
Authors: Alan C Shapiro, Paul Hanouna
11th Edition
1119559901, 9781119559900
