Question No. 1: Given Data Solve for Net Income After Taxes Net interest income 540 Total Assets Provision for loan loss 60 Total Int. Expenses Total non-interest expenses 560 Total interest income 2,040 Provision Loan Loss Income taxes 40 Noninterest Income Increase in bank's undivided profits 56 | Noninterest expenses Total non-interest income 240 | Pretax Securities gain (losses) (20) Securities losses Extraordinary items (10)| Pretax net Tax Before Extraordinary Net Income after Taxes Using the above data please calculate the following items: No. Item Calculation Net Income after Taxes 2 Total Operating Revenues 3 Total Operating Expenses Dividends Paid to Common Stockholders. 5 Net Noninterest Income OO 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 10,000 calculations Cash and due from depository institutions 3:48 Securities 912 Federal finds sold 180 1. Gross loans Lean loss allowance (ALL) NOKO Net loans Trading accounts assets NO 2. Bank premises and fixed assets Kioodwill and other intangibles NO Other real estate owned All other assets hoo Total liabilities and capital 1. Total liabilities 5. Total deposits Pederal funds purchased 320 Trading liabilities Other borrowed funds 200 Subordinated debt 1920 All other liabilities 16 6. Total equity capital Perpetual preferred stock Common stock 196 Surplus 576 Undivided fits 280 40 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 Amount Rate Rate sensitive $15,200 6% Rate sensitive $14,400 4% Fixed-rate 16,000 9% Fixed-rate 15,2007% Nonearning 3,200 Nonpaying liabilities 4,800 Total $34,400 Total $34,400 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 Average Duration (years) Dollar Amount (Millions) Investment grade bonds 36 1,200 Deposits 2.8 6,400 Consumer loans 12 2,400 Commercial loans 7 8,000 Non-deposit borrowings 12 400 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. D. 3. The gap: 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 Off-balance-sheet items Amounts Loans to corporations 150,000 Long-term unused commitments 170,000 U.S. treasury securities 70,000 SLCs 160,000 Deposits due from banks 60,000 Total off-balance-sheet item 350,000 Secured loans 140,000 Tier I capital 11,000 Cash 20,000 Tier II capital 10,000