Formulas_Exam_2 - Net Interest Margin =(interest income –...

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Formulas These are the formulas you will receive with your exam. If there are other numerical calculations in course pack examples, you will need to remember what goes into those calculations. Beginning ALL + provision for loan losses - charge offs of worthless loans + recoveries of previously charged off loans = Ending ALL Efficiency Ratio = Non-interest expense/(Net interest income + Non-interest income)
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Unformatted text preview: Net Interest Margin = (interest income – interest expense)/average earning assets ROE = net income/equity capital ROA = net income/total assets ROE = ROA×EM (1+k) = (1+ r + s – f + p)/[(1-d) + dv] ) ( 2 2 1 1 1 1 X b X b a e d + +-+ =...
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