Question 21 (4 points)

What is the yield on earning assets for the bank? Amount ($millions) Amount ($millions) Cash 60 Interest Income Inv. Securities 190 Securities 5.377 Net Loans Business Loans 20.096 Business Loans 320 Mortgages 5.258 Mortgages 110 Installment Loans 11.568 Installment Loans 160 Credit Cards 7.399 Credit Cards 70 Interest Expense Loan Loss Reserve 13 Demand Deposits 3.058 Other Assets 50 Savings Accounts 2.862 Total Assets 960 Time Deposits 6.405 Purchased Funds 5.824 Demand Deposits Loan Loss Provision 3.211 Non-Int Bearing 110 Non-Interest Income 16.848 Interest Bearing 220 Non-Interest Expense 34.707 Savings Accounts 180 Capital Gains/Losses -0.197 Time Deposits 210 Before Tax Income 10.282 Purchased Funds 140 Taxes 3.496 Equity 100 Net Income 6.786 Total Liab and Equity 960

Question 21 options:

1)

5.85%

2)

5.18%

3)

6.72%

4)

5.21%

5)

7.53%