Problems: In order to earn full credit all your work including the complete formula must be shown. (Total: 55 points)

1. The following information is available to you on the banks statements ($ millions)

Total bank assets = $200,000

Total equity capital = 25,000

Interest income on loans = 4,000

Interest expense paid on deposits = 1,000

Noninterest income = 1,500

Total noninterest expenses = 1,750

Provision for loan losses = 500

Security losses = 200

Income taxes = 50

Calculate the following ratios.

1. Net income after taxes - show complete income statement structure as discussed in lecture (10 points)
2. Net non-interest margin (5 points)
3. Net interest margin (2 points)
4. Equity multiplier (3 points)
5. Return on equity (8 points)
6. Net operating margin (7 points)