Valley Bank has an average interest rate of 10% on %500 million of loans and securities,...
Valley Bank has an average interest rate of 10% on %500 million of loans and securities, an average interest rate of 5% on $400 million of deposits and other borrowed funds, noninterest revenue of $12 million, noninterest expense of $17 million, and a provision for loan losses of $10 million. total shareholders equity is $50 million, total assets are $500 million and the tax rate is 30%. Prepare Valley's income statement in order to answer:
A. the net interest income
B. net income
C. return on asset
Homework Answers
a.
Net Interest Income = 0.10*500 - 0.05*400 = 30 million
b.
Net Income = (30 + 12 - 17 - 10)(1 - 0.30)
Net Income = 10.5 million
c.
ROA = 10.5/500
ROA = 2.1%
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Valley Bank has an average interest rate of 10% on %500 million
of loans and securities,...
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Dudley Bank has the following balance sheet and income
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page 412
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Interest on other investment securities 1,705
Interest on deposits in banks 60
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Interest on debentures 1,140
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Dudley Bank has the following balance sheet and income
statement.
page 412
Income Statement
Interest on fees and loans $6,715
Interest on repurchase agreements 143
Interest on other investment securities 1,705
Interest on deposits in banks 60
Total interest income $8,623
Interest on deposits 3,018
Interest on debentures 1,140
Total interest expense $4,158
Net interest income $4,465
Provision for loan losses 200
Noninterest income. 950
Noninterest expenses 1,720
Income before taxes $3,495
Taxes 1,220
Net income 2275. For Dudley Bank,...
Megalopolis Bank has the following balance sheet and income
statement.
For Megalopolis, calculate:
Return on equity
Return on assets
Asset utilization
Equity multiplier
Profit margin
Interest expense ratio
Provision for loan loss ratio
Noninterest expense ratio
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interest earning assets includes securities and Loan,is it
right?row 4,5,6?
When calculate Interest paying asset,row 19,20,22,23?
To
calculate bank spread, what data is needed
1 Balance Sheet 2 Assets 3 Cash 4 Short term securities with interest purchased 5 Investment securities with interests 6 Loans 7 Allowance for loans and lease losses 8 Net loans 9 Premises and Equipment 10 Trading account securities 11 Time deposits placed 12 Intangible assets 13 other assets 14 Total Assets 15 17 Liabilities 18....
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