Problems: 1. (5 points) Stark County Bank is looking to increase its net interest income by growing the loan portfolio, but management realizes that it will need to reduce interest rates in order to increase loan balances. To help them decide on Calculate the projected net interest income for the bank (detailed in problem \# 1 from the supporting PDF), assuming they will reduce loan interest rates by 25 basis points from their current level (for example, 5.00% would go to 4.75% ), leading to an increase of 5% in loan balances. Deposit rates will remain unchanged, and equity balances will also not change, but deposit balances will make up the difference in the balance sheet. 2. (6 points) If a bank had a beginning loan loss reserve for 2022 of $16,000,000, recognized loan loss provision expense of $3,000,000 during the year, recognized recoveries of $1,200,000 and ended the year with assets of $1.35 billion and a reserve-to-assets ratio of 1.25%, what amount of loan chargeoffs were realized in 2022? 3. (8 points) If Smith Bank has $3.1 billion in total assets and a 1.30% ROA target, complete the table to determine the average loan interest rate needed to reach the bank's profitability target. Additional Questions (Exam \# 28-\#31): 4. If Smith Bank was to double its non-interest income, what would the new average loan rate required to meet its ROA target? 5. (2 points) Calculate the weighted average earning rate on assets for Smith Bank for the original scenario. 6. (2 points) Calculate the weighted average cost of funds for Smith Bank for the original scenario. 7. (2 points) Calculate the efficiency ratio for Smith Bank for the original scenario. Problems: 1. (5 points) Stark County Bank is looking to increase its net interest income by growing the loan portfolio, but management realizes that it will need to reduce interest rates in order to increase loan balances. To help them decide on Calculate the projected net interest income for the bank (detailed in problem \# 1 from the supporting PDF), assuming they will reduce loan interest rates by 25 basis points from their current level (for example, 5.00% would go to 4.75% ), leading to an increase of 5% in loan balances. Deposit rates will remain unchanged, and equity balances will also not change, but deposit balances will make up the difference in the balance sheet. 2. (6 points) If a bank had a beginning loan loss reserve for 2022 of $16,000,000, recognized loan loss provision expense of $3,000,000 during the year, recognized recoveries of $1,200,000 and ended the year with assets of $1.35 billion and a reserve-to-assets ratio of 1.25%, what amount of loan chargeoffs were realized in 2022? 3. (8 points) If Smith Bank has $3.1 billion in total assets and a 1.30% ROA target, complete the table to determine the average loan interest rate needed to reach the bank's profitability target. Additional Questions (Exam \# 28-\#31): 4. If Smith Bank was to double its non-interest income, what would the new average loan rate required to meet its ROA target? 5. (2 points) Calculate the weighted average earning rate on assets for Smith Bank for the original scenario. 6. (2 points) Calculate the weighted average cost of funds for Smith Bank for the original scenario. 7. (2 points) Calculate the efficiency ratio for Smith Bank for the original scenario