Using the attached worksheet to answer:

1. What is the ROA and ROE for SIFI Bank?
2. How would you characterize the performance of the bank vis--vis what you see from recent QBP trends for banks? Who would a representative peer bank be in your opinion?
3. What is the difference between HFI and AFS assets?
4. How would you describe the composition of liabilities? What might be some of the considerations for this composition?
5. What is the purpose of the banks loan loss reserve?

Assets Cash Duration Liabilities and Equity $ Duration $20,000,000 0.00 Retail Demand Deposits $250,000,000 0.25 $400,000,000 $100,000,000 US Treasuries CDs Bank Reserves $80,000,000 $50,000,000 $150,000,000 0.05 Brokered Deposits 2 GSE Bonds $90,000,000 3.00 Fed Funds Purchased 0 Municipal General Obligation Bonds $140,000,000 2.50 Subordinate Bonds $20,000,000 $50,000,000 Corporate Bonds Rated Better than A Corporate Bonds Rated Less than A Prime Residential Mortgage Loans 65% L Other Consumer Loans $30,000,000 2.50 Preferred Stock $30,000,000 3.00 Retained Earnings $20,000,000 $30,000,000 $190,000,000 Common Stock $100,000,000 Noncumulative Perpetual Preferred Stock (Qualif $10,000,000 $110,000,000 $1,000,000,000 Total Capital $250,000,000 Commercial Loans Loan Loss Reserves $(10,000,000.00) $1,000,000,000 Total Signifies Trading Book Assets Table 2 Term (Yrs) Rate (%) US Treasury (UST) Residential Loans 2.75 30 4 Other Consumer Loans 5 3 fer to written discussion Commercial Loans Table 3 (%) 0.10 US Treasuries GSE Bonds 0.13 Municipal General Obligation Bonds 0.15 0.20 Corporate Bonds Rated Better than A Corporate Bonds Rated Less than A 0.30 Assets Cash Duration Liabilities and Equity $ Duration $20,000,000 0.00 Retail Demand Deposits $250,000,000 0.25 $400,000,000 $100,000,000 US Treasuries CDs Bank Reserves $80,000,000 $50,000,000 $150,000,000 0.05 Brokered Deposits 2 GSE Bonds $90,000,000 3.00 Fed Funds Purchased 0 Municipal General Obligation Bonds $140,000,000 2.50 Subordinate Bonds $20,000,000 $50,000,000 Corporate Bonds Rated Better than A Corporate Bonds Rated Less than A Prime Residential Mortgage Loans 65% L Other Consumer Loans $30,000,000 2.50 Preferred Stock $30,000,000 3.00 Retained Earnings $20,000,000 $30,000,000 $190,000,000 Common Stock $100,000,000 Noncumulative Perpetual Preferred Stock (Qualif $10,000,000 $110,000,000 $1,000,000,000 Total Capital $250,000,000 Commercial Loans Loan Loss Reserves $(10,000,000.00) $1,000,000,000 Total Signifies Trading Book Assets Table 2 Term (Yrs) Rate (%) US Treasury (UST) Residential Loans 2.75 30 4 Other Consumer Loans 5 3 fer to written discussion Commercial Loans Table 3 (%) 0.10 US Treasuries GSE Bonds 0.13 Municipal General Obligation Bonds 0.15 0.20 Corporate Bonds Rated Better than A Corporate Bonds Rated Less than A 0.30