Change in value unrealized gains or losses ARE reflected on the Balance Sheet

Change in value unrealized gains or losses are

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Change in value (unrealized gains or losses) ARE reflected on the Balance Sheet (Change to Shareholder’s Equity)§May be a current or long-term asset, depending on maturity14
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Commercial Bank Financial StatementsnBank AssetsnNon-Interest Cash and Due From BanksnVault CashnDeposits held at the Federal ReservenCash Items in Process of Collection (CIPC)§Largest component of this category15
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Commercial Bank Financial StatementsnBank AssetsnOther AssetsnBank PremisesnOREO§Often foreclosed propertynBanker’s Acceptances16
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Commercial Bank Financial StatementsnBank Liabilities and Stockholder’s EquitynTransaction AccountsnDemand Deposits§Pays no interest§Available to all customersnNOW Accounts§Pays “market” interest rate§Not available to for-profit corporationsnATS Accounts§Pays “market” interest rate§Not available to for-profit corporations19
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Commercial Bank Financial StatementsnBank Liabilities and Stockholder’s EquitynTransaction AccountsnMMDAs§Pays market interest rate§Limited to six checks per month§Available to all customers20
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Commercial Bank Financial StatementsnBank Liabilities and Stockholder’s EquitynSavings and Time DepositsnSavings Deposits§No MaturitynTime Deposits (CDs)§“Large” or Jumbo CDs§Negotiable§“Small” CDs21
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Commercial Bank Financial StatementsnBank Liabilities and Stockholder’s EquitynOther BorrowingsnFed Funds Purchased Repurchase AgreementsnBrokered DepositsnDeposits Held in Foreign Offices§Issued by a bank subsidiary outside the U.S.nFederal Home Loan Bank BorrowingsnSubordinated Notes and Debentures22
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Commercial Bank Financial StatementsnBank Liabilities and Stockholder’s EquitynCore DepositsnDeposits that are NOT very interest rate sensitivenRepresent permanent funding basenMade up of:§Demand Deposits§NOW and ATS accounts§MMDAs§Savings Accounts§“Small” Time Deposits23
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Commercial Bank Financial StatementsnBank Liabilities and Stockholder’s EquitynNon-Core DepositsnDeposits that are very interest rate sensitivenAKA§Volatile Liabilities§Hot Money§Purchased Liabilities§Short-Term Non-Core Funding24
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Commercial Bank Financial StatementsnBank Liabilities and Stockholder’s EquitynNon-Core DepositsnConsist of:§Federal Funds Purchased§Repos§“Large” Time Deposits§Brokered Time Deposits25
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Commercial Bank Financial StatementsnBank Liabilities and Stockholder’s EquitynAll Common and Preferred EquitynPreferred StocknCommon Stock26
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Commercial Bank Financial StatementsnIncome StatementnInterest Income (II)nIncludes interest and fees from:§Loans§Deposits at other institutions§Trading Account Securities§Municipal Securities§Estimated Tax Benefit = §Municipal Interest Rate/(1 – Marginal Tax Rate) = Tax-Equivalent Municipal Interest Income30
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Commercial Bank Financial StatementsnIncome Statementn
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