Finance NB bank earns 1% on its assets and has a 20% tax rate. It earns 8% on loans, and 6% on investments. It pays 4% on time deposits, and 3% on federal funds purchased. Demand deposits pay no...

Finance<br>NB bank earns 1% on its assets and has a 20% tax<br>rate. It earns 8% on loans, and 6% on investments.<br>It pays 4% on time deposits, and 3% on federal<br>funds purchased. Demand deposits pay no<br>interest.<br>Balance Sheet for NB (in $M)<br>Assets<br>Equity<br>Liabilities &<br>Demand deposits<br>Investments<br>Cash and due from banks<br>$40<br>$20<br>200<br>Time deposits<br>150<br>Loans<br>Federal funds purchased<br>Premises<br>120<br>120<br>20<br>Equity<br>50<br>360<br>$360<br>a. Construct an Income Statement for NB bank<br>(assume a 20% tax rate and zero loan loss<br>provision).<br>a. With this information construct as many ratios of<br>bank performance as you can with the data<br>available.<br>

Extracted text: Finance NB bank earns 1% on its assets and has a 20% tax rate. It earns 8% on loans, and 6% on investments. It pays 4% on time deposits, and 3% on federal funds purchased. Demand deposits pay no interest. Balance Sheet for NB (in $M) Assets Equity Liabilities & Demand deposits Investments Cash and due from banks $40 $20 200 Time deposits 150 Loans Federal funds purchased Premises 120 120 20 Equity 50 360 $360 a. Construct an Income Statement for NB bank (assume a 20% tax rate and zero loan loss provision). a. With this information construct as many ratios of bank performance as you can with the data available.

Jun 04, 2022

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Finance NB bank earns 1% on its assets and has a 20% tax rate. It earns 8% on loans, and 6% on investments. It pays 4% on time deposits, and 3% on federal funds purchased. Demand deposits pay no...

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