What are Citizens' two largest asset categories? What is its largest liability category? What do these assets and liabilities indicate about the major services offered by Citizens? What are the largest income and expense categories for Citizens? Is this consistent with your results from the balance sheet? Explain. a) What is the Net Interest Margin for Citizens for the last two reporting years? Show all calculations and interpret. b) Assume that Citizens' liabilities are more rate sensitive than its assets. What will be the impact on Net Interest Margin if interest rates increase? Explain. What role does capital play for a depository financial institution? Calculate the level of capital held by Citizens for the last two

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(in millions, except share data) ICE SHEETS December 31, 2022 2021 ASSETS: Cash and due from banks $1,489 $1,155 Interest-bearing cash and due from banks 9,058 8,003 Interest-bearing deposits in banks 303 316 Debt securities available for sale, at fair value (including $270 and $640 pledged to creditors, respectively) 24,007 26,067 Debt securities held to maturity (fair value of $9,042 and $2,289, respectively, and including $110 and $77 pledged to creditors, respectively)" Loans held for sale, at fair value Other loans held for sale Loans and leases Less: Allowance for loan and lease losses Net loans and leases Derivative assets Premises and equipment, net Bank-owned life insurance 9,834 2,242 774 2,733 208 735 156,662 128,163 (1,983) (1,758) 154,679 126,405 842 1,216 844 768 3,236 2,843 Goodwill Other intangible assets Other assets TOTAL ASSETS 8,173 7,116 197 64 13,089 8,746 $226,733 $188,409 LIABILITIES AND STOCKHOLDERS' EQUITY: LIABILITIES: Deposits: Noninterest-bearing Interest-bearing Total deposits Short-term borrowed funds Derivative liabilities Long-term borrowed funds Other liabilities TOTAL LIABILITIES Commitments and Contingencies (refer to Note 19) STOCKHOLDERS' EQUITY: Preferred Stock: $25.00 par value,100,000,000 shares authorized; 2,050,000 shares issued and outstanding at December 31, 2022 and 2021 $49,283 131,441 $49,443 104,918 180,724 154,361 3 74 1,909 197 15,887 6,932 4,520 3,425 203,043 164,989 2,014 2,014 Common stock: $0.01 par value, 1,000,000,000 shares authorized; 645,220,018 shares issued and 492,282,158 shares outstanding at December 31, 2022 and 571,259,135 shares issued and 422,137,197 shares outstanding at December 31, 2021 6 6 Additional paid-in capital 22,142 19,005 Retained earnings 9,159 7,978 Treasury stock, at cost, 152,937,860 and 149,121,938 shares at December 31, 2022 and 2021, respectively Accumulated other comprehensive income (loss) (5,071) (4,560) (4,918) (665) TOTAL STOCKHOLDERS' EQUITY 23,690 23,420 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $226,733 $188,409 Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. Excludes MSRs, which are reported in Other assets. The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. (in millions, except share data) ICE SHEETS December 31, 2022 2021 ASSETS: Cash and due from banks $1,489 $1,155 Interest-bearing cash and due from banks 9,058 8,003 Interest-bearing deposits in banks 303 316 Debt securities available for sale, at fair value (including $270 and $640 pledged to creditors, respectively) 24,007 26,067 Debt securities held to maturity (fair value of $9,042 and $2,289, respectively, and including $110 and $77 pledged to creditors, respectively)" Loans held for sale, at fair value Other loans held for sale Loans and leases Less: Allowance for loan and lease losses Net loans and leases Derivative assets Premises and equipment, net Bank-owned life insurance 9,834 2,242 774 2,733 208 735 156,662 128,163 (1,983) (1,758) 154,679 126,405 842 1,216 844 768 3,236 2,843 Goodwill Other intangible assets Other assets TOTAL ASSETS 8,173 7,116 197 64 13,089 8,746 $226,733 $188,409 LIABILITIES AND STOCKHOLDERS' EQUITY: LIABILITIES: Deposits: Noninterest-bearing Interest-bearing Total deposits Short-term borrowed funds Derivative liabilities Long-term borrowed funds Other liabilities TOTAL LIABILITIES Commitments and Contingencies (refer to Note 19) STOCKHOLDERS' EQUITY: Preferred Stock: $25.00 par value,100,000,000 shares authorized; 2,050,000 shares issued and outstanding at December 31, 2022 and 2021 $49,283 131,441 $49,443 104,918 180,724 154,361 3 74 1,909 197 15,887 6,932 4,520 3,425 203,043 164,989 2,014 2,014 Common stock: $0.01 par value, 1,000,000,000 shares authorized; 645,220,018 shares issued and 492,282,158 shares outstanding at December 31, 2022 and 571,259,135 shares issued and 422,137,197 shares outstanding at December 31, 2021 6 6 Additional paid-in capital 22,142 19,005 Retained earnings 9,159 7,978 Treasury stock, at cost, 152,937,860 and 149,121,938 shares at December 31, 2022 and 2021, respectively Accumulated other comprehensive income (loss) (5,071) (4,560) (4,918) (665) TOTAL STOCKHOLDERS' EQUITY 23,690 23,420 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $226,733 $188,409 Includes only collateral pledged by the Company where counterparties have the right to sell or pledge the collateral. Excludes MSRs, which are reported in Other assets. The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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To answer your questions lets analyze the provided financial statements Largest Asset Categories The two largest asset categories for Citizens are a Debt securities available for sale at fair value 24... View the full answer