Exam 12: Commercial Banks Financial Statements and Analysis

At almost all banks noninterest expense is greater than noninterest income; hence,the overhead efficiency ratio is usually greater than 100 percent.

Fernando Bank has interest expense of $150 million,earning assets of $1,400 million and a NIM of 5.00 percent. The bank also has interest-bearing liabilities of $1,100 million. Fernando Bank's spread is

Rate-sensitive funding sources at a bank are termed core deposits.

Which one of the following is the definition of the NIM?

A wholesale bank is one that focuses its business activities on commercial banking relationships.

All but which one of the following is an example of noninterest income or noninterest expense?

The largest source of income at a typical bank is

Investment securities plus ____________________ is equal to a bank's earning assets.

Oceanside Bank converts a dollar of equity into 10 cents of net income and has $9.50 in assets per dollar of equity capital. Oceanside also has a profit margin of 15 percent. What is Oceanside's AU ratio?

Uniform principles,standards,and report forms for depository institutions are prescribed by the

Wholesale CDs obtained from an investment house rather than directly from a customer are referred to as brokered deposits.

a(n.__________________ is a contra asset account.

Banks generally pay higher interest rates on NOW accounts than on MMDAs.

The allowance for loan and lease losses is bank management's estimate of the amount of gross loans and leases that will not be repaid to the bank.

A bank has interest income to total assets ratio of 5.45 percent and has noninterest income of $45 million and total assets of $700 million. What is the bank's asset utilization ratio?

C&I loans are loans to businesses used to finance capital needs,equipment purchases,and plant expansions.

If a bank has more purchased funds than the average bank,you would not be surprised to see a higher than average ____________________ ratio.

MMDAs are a type of savings account that has some limited checking features. These accounts were designed to help banks compete with MMMFs.

Blue Ridge Bank has a PM of 12 percent,an interest income to total assets ratio of 6.00 percent,and a noninterest income to assets ratio of 1.50 percent. Blue Ridge also has $9 in assets per dollar in equity capital. Blue Ridge's ROE is

Interest-bearing retail accounts with limited checking features designed to compete with money market mutual fund investments are called ________________.