m. Occupancy expense for bank building $22,000 n. Taxes at 34% of taxable income are paid o. Trust department income equals $15,000 5
9.Suppose a bank has an allowance for loan losses of $1.25 million at the beginningof the year, charges current income for a $250,000 provision for loan losses, charges off worthless loans of $150,000, and recovers $50,000 on loans previously charged off. What will be the balance in the allowance for loan losses at year-end?10. Norfolk National Bank has just submitted its Report of Condition to the FDIC. Please fill in the missing items from its statement shown below (all figures in millions of dollars):Report of ConditionTotal assets$4,000.00 Cash and due from depository institutions 90.00Securities535.00Federal funds sold and reverse repurchase agreements45.00Gross loans and leasesLoan loss allowance200.00 Net loans and leases2,700.00 Trading account assets20.00 Bank premises and fixed assetsOther real estate owned15.00 Goodwill and other intangibles200.00 All other assets175.00 Total liabilities and capitalTotal liabilitiesTotal depositsFederal funds purchased and repurchase agreements.80.00 Trading liabilities10.00 Other borrowed funds50.00 Subordinated debt480.00 All other liabilities40.00 Total equity capitalPerpetual preferred stock5.00 Common stock25.00 Surplus320.00 Undivided profits70.00 6
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- Fall '11
- Balance Sheet, Generally Accepted Accounting Principles, Dudley Bank