The Windy Pass Bank $($WPB$)$ has the following common size income statement where each item is as a $\%$ of total average assets from its Uniform Bank Performance Report Earnings & Profitability Analysis $(\%$ Ave. Total Assets$)$ for the Current Year and Previous Year as shown below compared to its Peer Banks of Similar Size $($PG$)$

All figures as $\%$ of Average Assets

Current Yr$.$ Previous Yr$.$

Bank PG Bank PG

Total Interest Income $($IR$\%)3\mathrm{.}243\mathrm{.}343\mathrm{.}363\mathrm{.}50$

Total Interest Expense$($IE$\%)0\mathrm{.}320\mathrm{.}280\mathrm{.}280\mathrm{.}32$

Net Interest Income $($NIM$)2\mathrm{.}923\mathrm{.}063\mathrm{.}083\mathrm{.}18$

Total Non$-$interest Revenues $($NIR$\%)0\mathrm{.}690\mathrm{.}380\mathrm{.}720\mathrm{.}39$

Total Non$-$Interest Expense $($NIE$\%)2\mathrm{.}262\mathrm{.}362\mathrm{.}332\mathrm{.}42$

Burden $\%1\mathrm{.}571\mathrm{.}981\mathrm{.}612\mathrm{.}03$

Provision for Loan Losses $($PLL$\%)0\mathrm{.}100\mathrm{.}040\mathrm{.}530\mathrm{.}05$

Pretax Operating Income $($OROA$\%)1\mathrm{.}25\%1\mathrm{.}04\%0\mathrm{.}94\%1\mathrm{.}10\%$

Tier $1$ Leverage Ratio $($Equity to Assets$)8\mathrm{.}24\%11\mathrm{.}66\%8\mathrm{.}05\%11\mathrm{.}77\%$

a$.$ Calculate the following ratios for the Bank $($WPB$)$ and PG$2$ for each year.

Current Yr$.$ Prev. Yr$.$

Bank PG Bank PG

Equity Multipliers $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$($EM $=(1/$ Tier $1$ equity ratios as a fraction, i$.$e$,$ as EM $=(1/\mathrm{.}0824)$ for bank current year $=12\mathrm{.}14)$

Operating Return on Assets $($ROA$)\_1\mathrm{.}25\%\_\_1\mathrm{.}04\%\_0\mathrm{.}94\%1\mathrm{.}10\%$

$($given above$)$

Operating Return on Equity $($OROE$)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$($Note: OROE $=$ OROA x EM$)$

Asset Utilization $($AU$)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$($Note: AU $=$ IR$\%+$ NIR$\%)$

Net Profit Margin $($NPM$)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$($NPM$=$ OROA $/($AU as a fraction$),($i$.$e$.$ NPM Bk Cur. Yr$.=1\mathrm{.}25/\mathrm{.}0393=31\mathrm{.}81\%)$

b$.$ Using a Dupont Analysis $($where OROE differences are a function of three factors: NPM x AU x EM$),$ explain why WPB$$s OROE for the current year differs from the PG in the current year.

c$.$ Using a Dupont Analysis $($where OROE trends are a function of three factors: NPM x AU x EM$),$ explain why WPB$$s OROE changed in the current year from the previous year.

d$.$ Using a Peer OROA analysis, explain why WPB$$s OROA differs from the Peer$$s OROA in the current year: $($where OROA differences are a function of differences for $(1)$ the NIM $($based on differences in the IR$\%$ and the IE$\%),(2)$ differences in the Burden $\%($based on differences in the NIE$\%$ and NIR$\%),$ and $(3)$ differences in the PLL$\%.$ What strengths & weaknesses are revealed for WPB versus the PG$?$

e$.$ Do a Trend OROA analysis to explain why WPB$$s OROA changed in the current year based on differences in the current year versus the previous year for $(1)$ NIM $($IR$\%$ & IE$\%),(2)$ Burden$\%($NIE$\%$ & NIR$\%)$ and $(3)$ PLL$\%.$ Given the relative changes for WPB$$s IR$\%$ versus its IE$\%,$ what type of funding gap $($positive or negative$)$ does this implies for WPB$?$