With tiered deposit pricing, Higher deposit balances are paid higher interest rates Lower deposit balances are paid higher interest rates For the bank, brokered CDs and have a size. risk of non-renewal at maturity, compared with retail CDs of the same High Low Below are data for ABC Bank, which has 3,000 in total assets and 2.000 in risk-weighted assets. All items are on the Liabilities and Stockholder's Equity side of the balance sheet unless otherwise indicated. Cumulative perpetual preferred stock 20 Common stock 230 Allowance for loan losses (contra-asset) 45 Goodwill asset) 25 Cash (asset) 50 Subordinated unsecured debt, 10-year remaining maturity Tier 1 common equity capital equals 40 155 225 175 135 205 Below are data for ABC Bank, which has 3,000 in total assets and 2.000 in risk-weighted assets. All items are on the Liabilities and Stockholder's Equity side of the balance sheet unless otherwise indicated. Cumulative perpetual preferred stock 20 Common stock 230 Allowance for loan losses (contra-asset) 45 Goodwill asset) 25 Cash (asset) 50 Subordinated unsecured debt, 10-year remaining maturity 40 Tier 2 capital equals 65 75 105 135 85 If a bank has the following ratios, it is Tier 1 leverage = 5.5% Tier 1 common equity risk-based = 7% Tier 1 risk-based = 7% Total capital risk-based = 11% Undercapitalized Significantly undercapitalized Well capitalized Adequately capitalized