Question

The financial statements for First National Bank (FNB) are shown below:

Balance Sheet First National Bank

Assets		Liabilities and Equity
Cash	$ ?450	Demand deposits	$?5,510
Demand deposits from other FIs	1,350	Small time deposits	10,800
Investments	4,050	Jumbo CDs	3,200
Federal funds sold	2,025	Federal funds purchased	2,250
Loans	15,525	Equity	2,200
Reserve for loan losses	(1,125)
Premises	1,685
	????	Total	????
Total assets	$23,960	liabilities/equity	$23,960

Income Statement First National Bank

-Interest income		$2,600
-Interest expense		1,650
-Provision for loan losses		180
-Noninterest income		140
-Noninterest expense		420
-Taxes		90
	a. Calculate the dollar value of FNB's earning assets.
	b. Calculate FNB's ROA.
	c. Calculate FNB's asset utilization ratio.
	d. Calculate FNB's spread.

Answer 1