Hi there - I've gone through questions 1 - 4, but feeling stuck on questions 5-9. Thank you!

c. [2] Total bank assets (in USD; please remember to indicate units). a. 461,256,000 WAS, USD d. [2] Name of your BHC's U.S. commercial bank subsidiary. a. MBank e. [1] Date established of the commercial bank subsidiary. a. 01f01f1872 f. [1] Number of domestic bank branches (\"offices") of the bank subsidiary. a. 2,127 g. [1] Number of U.S. statesfterritories in which the bank subsidiary operates. a. 18 states, 0 territories h. [1] Number of foreign branches of the bank subsidiary, if any. a. 0 foreign locations Question 3 [16 points] Provide, in a table with four columns of data, a copy of your bank's balance sheet for 2006 and 2019. Present these data both as ratios (as a % of total assets) w in thousands of US. dollars. Do not include in your table anyr items below the line "Memoranda" from the balance sheet. Please utilize the Excel template provided with this assignment: and cut and paste the table from the corresponding tab of your Excel template onto the next page of this document. Please format the table so that your presentation is clear, professional, and easy to read. Table 1: Balance Sheet This page is reserved for your bank's Balance Sheet. Please see directions for Question 3. BHC NAME: US Bank National Association BHC CITY, BHC STATE Minneapolis Minesota BHC ID#: 1119794 31-Dec-19 31-Dec-06 000s USD % assets 000s USD % assets 1 Number of institutions reporting ts and Liabilities 2 Total employees (full-time equivalent) 68,375 N/A 48,155 N/A 3 Total assets 486,004,220 N/A 217,802,326 N/A 4 Cash and due from depository institutions 22,256,667 4.58% 8,644,951 3.97% 5 Interest-bearing balances 16,793,325 3.46% 6,300 0.00% Securities 120,982,766 24.89% 39,699,269 18.23% ral funds sold and reverse repurchase agreements 881,341 0.18% 3,512,083 1.16% 8 Net loans and leases 297,660,359 61.25% 141,159,825 64.81% 9 Allowance for loan and lease losses ** 4,019,695 0.83% 1,889,317 0.87% 10 Trading account assets 2,053,995 0.42% 257,253 0.12% 11 Bank premises and fixed assets 3,694,494 0.76% 1,758,813 0.81% 12 Other real estate owned 77,775 D.02% 175,686 0.08% 13 Goodwill 12,915,451 2.66% 12,048,875 5.53% 14 All other assets 25,481,372 0.05% 10,545,571 4.84% 15 Total liabilities and capital 486,004,220 100.00% 217,802,326 100.00% 16 Total liabilities 436,611,717 89.84% 197,184,201 90.53% 17 Total deposits 374,303,872 77.02% 135,903,121 $2.40% 18 Interest-bearing deposits 271,008,932 5.76% 85,633,824 7.97% 19 Deposits held in domestic offices 346,975,331 71.39% 118,536,179 54.42% 43.79% N/A N/A N/A 20 % insured 21 Federal funds purchased & repurchase agreements 1,094,396 0.23% 12,316,778 5.56% 22 Trading liabilities 769,40 .16% 139,984 0.06% 23 Other borrowed funds 41,653,916 8.57% $3,217,524 15.25% 24 Subordinated debt 50,000 N/A 7,384,026 N/A 25 All other liabilities 14,940,126 3.07% 8,222,768 3.78% 26 Total equity capital 49,392,503 10.16% 20,618,125 9.47%% 27 Total bank equity capital 48,591,876 10.00% 20,618,125 9.47% 28 Perpetual preferred stock 0.00% 0 29 Common stock 18,200 0.00% 18,200 0.01% 30 Surplus 14,266,915 2.94% 11,976,937 5.509% 31 Undivided profits 34,306,761 7.069% 8,622,988 3.96% 32 Noncontrolling interests in consolidated subsidiaries N/A N/ATable 2: Income Statement This page is reserved for your bank's Income Statement. Please see directions for Question 4. BHC NAME: US Bank National Association BHC Mineapolis Minesota BHC ID#: 1119794 31-Dec-19 31-Dec-06 000s USD % avg assets 000s USD % avg assets 1 Number of institutions reporting Income and Expense 2 Total interest income 17,374,890 3.68% 12,142,751 5.71% 3 Total interest expense 4,110,884 0.87% 5,376,288 2.53% 4 Net interest income 13,264,006 2.81% 6,766,463 3.18% 5 Provision for credit losses * 1,500,502 0.32% 510,446 0.24% 6 Total noninterest income 9,428,914 1.99% 6,332,169 2.98% 7 Fiduciary activities 1,372,163 0.29% 1,057,944 50.00% 8 Service charges on deposit accounts 1,338,670 0.28% 1,439,065 68.00% 9 Trading account gains & fees 163,743 0.03% 104,007 0.05% 10 Additional noninterest income 6,554,338 1.39% 3,731,153 1.75% 11 Total noninterest expense 12,510,932 2.65% 6,028,503 2.83% 12 Salaries and employee benefits 7,349,093 1.55% 2,815,966 1.32% 13 Premises and equipment expense 1,108,359 0.23% 653,552 0.31% 14 Additional noninterest expense 4,053,480 0.86% 2,558,985 1.20% 15 Pre-tax net operating income 8,681,486 1.84% 6,559,683 3.08% 16 Securities gains (losses) 73,214 0.02% 10,417 0.00% 17 Applicable income taxes 1,741,217 0.37% 2,111,887 0.99% 18 Income before extraordinary items 7,013,483 1.48% 4,458,213 2.09% 19 Discontinued operations (Extraordinary gains - net)* * 0.00% 0.00% 20 Net income attributable to bank and noncontrolling interests 7,013,483 1.48% N/A N/A 21 Net income attributable to noncontrolling interests 37,774 0.01% N/A N/A 22 Net income attributable to bank 6,975,709 1.48% 4,458,213 2.09% 23 Net charge-offs 1,453,932 0.31% 508,758 0.24% 24 Cash dividends 7,100,000 1.50% 3,915,000 1.84% 25 Sale, conversion, retirement of capital stock, net 26 Net operating income 6,954,912 1.47% 4,451,129 2.09%Question 5 [18 points] Based on the 2019 data and expressing your answers in relative terms (as percentage of bank's total assets}, unless requested otherwise: a. b. [4] From the balance sheet, what are your bank's most important (largest) source of funds and most important use of funds (investment)? Please explain. [2] Is commercial and industrial lending or real estate lending a larger component of the loan portfolio? Please explain. . [2] Would your answer to part (b) change if you considered only residential (family) real estate lending? Please explain. . [2] How much of your bank's domestic deposits are held in transaction accounts? Express your answer as a percentage of bank's assets. . [2] Does your bank have signicant trading assets? If so, then how much (as percentage of bank's assets)? [2] Off balance sheet, does your bank have any exposure to unused credit card commitments? If so, then how much (as percentage of bank's assets)? . [2] From the income statement, what is the ratio of noninterest income to total income (i.e., total income = interest income plus noninterest income)? . [2] What is your bank's largest source of noninterest income and its magnitude (as percentage of bank's assets)? Question 6 [10 points] The \"traditional business model\" of a commercial bank is to take in deposits from customers and grant loans to households and businesses. Does your bank conform with this traditional model? Or could it be considered to rely on a mix of traditional and non-traditional models? Explain your reasoning in detail based on your answers to all (or most) parts of Question 5. Question 7 [16 points] Look up your bank's end-of-year dollar data for 2006 and 2019 for the following five balance sheet items: (1) Total assets, (2) cash, (3) securities, (4) deposits, and (5) equity capital. a. [6] Based on the data for 2006 and 2019, calculate the following ratios: "liquid assets ratio" (the sum of cash plus securities divided by total assets), the "deposits ratio\" (total deposits divided by total assets), and \"bank capital ratio" (equity capital divided by total assets). You should calculate six ratios altogether. [6] Briefly explain the connection between each of these three ratios and bank liquidity risk andfor insolvency risk. For example, you may want to explain what would happen to the related risk(s) as the given ratio increases and why. [4] Was your bank better or worse prepared for the 2020 COVID-'I 9 shock as compared with the 2007-2009 episode of Great Financial Crisis? Explain your thinking. Question 8 [12 points] On March 3, 2020, the Board of Governors of the Federal Reserve System unexpectedly decided to cut interest rates (the Federal Funds Rate) by 50 basis points to a target range of 1-1.25%. At the same time, the stock price of many U.S. banks fell. For example, between February 28, 2020 and March 6, 2020, the stock price of Morgan Stanley (NYSEMS) fell by 7% and the stock price of Bank of America (NISEBAQ) fell by 10%. Here are the ticker symbols for our BHCs: SmallRe- ional -m First' m_ FirstMidwest = a. [4] What was the stock price reaction of your bank and its peer bank in % terms? Do this for the February 28, 2020, to March 6, 2020, time frame\". b. [4] What might these stock price reactions tell us about the relative interest rate risk exposures of your bank and its peer bank compared to each other? c. [4] An alternative explanation is that this surprise rate cut provided a signal about the economic impacts of COVID-'IQ. What could these stock price reactions tell us about one other risk exposure of your bank as compared with its peer bank? Question 9 [26 points] Based on the most recent end-ofyear \"Performance and Condition Ratios\" data from the FDIC website, answer the following: a. [4] Provide your bank's return-on-equity (ROE) and return-on-assets (RDA). b. [2] What is the connection between these two ratios? Write down a formula and briey explain the connection and its importance. c. [4] Provide ROE and ROA (a) for your peer bank. d. [2] Which of these two banks was more profitable in the past year? e. [6] Which bank's stock would you buy (i.e.. your bank or its peer)? Explain why. f. [8] Whatt additional pieces of information would you like before making your investment decision? Please explain