Question No. 1: Given Data Net interest income 810 Provision for loan loss 90 Total non-interest expenses 840 Total interest income 3060 Income taxes 60 Increase in bank's undivided profits 84 360 Total non-interest income Securities gain (losses) Extraordinary items (30) (15) Using the above data please calculate the following items: No. Item 1 Net Income after Taxes 2 Total Operating Revenues Total Operating Expenses 3 Dividends Paid to Common Stockholders. Net Noninterest Income 5 Solve for Net Income After Taxes Total Interest Income Total Int. Expenses Provision Loan Loss Noninterest Income Noninterest expenses Pretax Securities losses Pretax net Tax Before Extraordinary Extraordinary Net Income after Taxes Calculation Question No. 2: Please fill in the missing items (numbered from 1 to 6) from the below report of condition for Jasper National Bank. Report of Condition Total assets 15,000 Calculations Cash and due from depository 522 institutions Securities 1,398 Federal funds sold 270 1. Gross loans Loan loss allowance (ALL) 1,200 Net loans 10,200 Trading accounts assets 120 2. Bank premises and fixed assets Goodwill and other intangibles 1.200 Other real estate owned 90 All other assets 1,050 3.Total liabilities and capital 4.Total liabilities 5. Total deposits Federal funds purchased 480 Trading liabilities 60 Other borrowed funds 300 Subordinated debt 2,880 All other liabilities 240 6. Total equity capital Perpetual preferred stock 12 Common stock 144 Surplus 864 Undivided profits 420 Question No. 3: Consider the following bank balance sheet and associated average interest rates. The time frame for rate sensitivity is one year. Assets Amount Rate Liabilities & equity Rate Amount $21,600 Rate sensitive $22,800 6% Rate sensitive 4% Fixed-rate Plo 9% Fixed-rate 24,000 4,800 Nonpaying liabilities Nonearning Total 22,800 7,200 $51,600 $51,600 Total 1. Calculate the Bank's GAP, expected Net Interest Income, and Net Interest Margin if interest rates and portfolio composition remain constant during the year. This bank is positioned to profit if interest rates move in which direction? 1. Bank's GAP: 2. Net Interest Income: 3. Net Interest Margin: Question No. 4: Clinton National Bank holds assets and liabilities whose average durations and dollar amounts are shown in this table: Asset and Liability Items Dollar Amount (Millions) Average Duration (years) 18 Investment grade bonds 600 Deposits 1.4 3.200 Consumer loans 6 1,200 Commercial loans 3.5 4,000 Non-deposit borrowings 6 200 1. What is the weighted-average duration of Clinton bank's assets portfolio and liability portfolio? What is its leverage-adjusted duration gap? 1. DA 2. DL. Question No. 5: Using the following information for New River National Bank, calculate that bank's ratios of Tier I-capital-to-risk-weighted assets and total-capital-to-risk-weighted assets under the terms of the Basel I agreement. Does the bank have sufficient capital? 1. On-balance-sheet items (Assets) Amounts S Off-balance-sheet items Long-term unused commitments Amounts $ 170,000 150,000 70,000 SLC's 160,000 Loans to corporations U.S. treasury securities Deposits due from banks Secured loans 60,000 Total off-balance-sheet item 350,000 140,000 Tier I capital 11,000 Cash 20.000 Tier II capital 10,000