The financial statements for MHM Bank (MHM) are shown below:
a. Calculate MHMâs total operating income (3 points).
b. Calculate MHMâs asset utilization ratio (3 points).
c. Calculate MHMâs ROA (3 points).
d. Calculate the dollar value of MHMâs earning assets (3 points).
e. Calculate the dollar value of MHMâs interest-bearing liabilities (3 points).
f. Calculate MHMâs spread (3 points).
g. Calculate MHMâs net interest margin (3 points).
h. Calculate MHMâs interest expense ratio (3 points).
Please show all work adn explantions, thank you
Balance Sheet MHM Bank
Assets
Liabilities and Equity
Cash and due from banks
$
8,200
Demand deposits
$
35,600
Demand deposits at other FIs
9,100
Small time deposits
32,900
Investments
9,600
Jumbo CDs
12,000
Federal funds sold
9,400
Federal funds purchased
3,300
Loans (less reserve for loan losses of 10,400)
74,800
Other liabilities
16,200
Premises
8,900
Equity
20,000
Total assets
$
120,000
Total liabilities/equity
$
120,000
Income Items for MHM Bank
Interest income
$ 9,380
Interest expense
3,856
Provision for loan losses
7,800
Noninterest income
6,044
Noninterest expense
4,300
Taxes (credit)
- 132
The financial statements for MHM Bank (MHM) are shown below:
a. Calculate MHMâs total operating income (3 points).
b. Calculate MHMâs asset utilization ratio (3 points).
c. Calculate MHMâs ROA (3 points).
d. Calculate the dollar value of MHMâs earning assets (3 points).
e. Calculate the dollar value of MHMâs interest-bearing liabilities (3 points).
f. Calculate MHMâs spread (3 points).
g. Calculate MHMâs net interest margin (3 points).
h. Calculate MHMâs interest expense ratio (3 points).
Please show all work adn explantions, thank you
Balance Sheet MHM Bank | |||||||||
Assets | Liabilities and Equity | ||||||||
Cash and due from banks | $ | 8,200 | Demand deposits | $ | 35,600 | ||||
Demand deposits at other FIs | 9,100 | Small time deposits | 32,900 | ||||||
Investments | 9,600 | Jumbo CDs | 12,000 | ||||||
Federal funds sold | 9,400 | Federal funds purchased | 3,300 | ||||||
Loans (less reserve for loan losses of 10,400) | 74,800 | Other liabilities | 16,200 | ||||||
Premises | 8,900 | Equity | 20,000 | ||||||
Total assets | $ | 120,000 | Total liabilities/equity | $ | 120,000 |
Income Items for MHM Bank | |
Interest income | $ 9,380 |
Interest expense | 3,856 |
Provision for loan losses | 7,800 |
Noninterest income | 6,044 |
Noninterest expense | 4,300 |
Taxes (credit) | - 132 |