The management at Sage National Bank located in Key West, Florida, is calculating the key capital adequacy

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The management at Sage National Bank located in Key West, Florida, is calculating the key capital adequacy ratios for its third-quarter reports. At quarter-end, the bank’s total assets are $95 million and its total risk-weighted assets including off-balance-sheet items are $75 million. Tier 1 capital items sum to $4 million, while Tier 2 capital items total $2.5 million. Calculate Sage National’s leverage ratio, total capital-to-total assets, core capital-to-total risk-weighted assets, and total capital-to-total risk-weighted assets. Does Sage National meet the requirement stipulated for a bank to qualify as adequately capitalized? In which of the five capital adequacy categories created by U.S. federal regulators for PCA purposes does Sage National fall? Is Sage National subject to any regulatory restrictions given its capital adequacy category?

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