Bank Analysis School eBook

Internal Use Only

Tier 1 Capital = 28

LOW RISK ASSET BANK & TRUST

AVG. BOOK BALANCE

RISK FACTOR

WEIGHTED VALUE

Cash

50

0%

0

FHLB Bonds

500

20% 50%

100

1-4 Family RE Loans Commercial Loans

0 0

0 0

100%

AVG. TOTAL ASSETS = 550

R-W Assets = 100

TIER 1 CAPITAL

28

TIER 1 CAPITAL

28

AVG. TOTAL ASSETS

550

TOTAL RISK-WEIGHTED ASSETS

100

TIER 1 LEVERAGE RATIO

5.10%

TIER 1 CAPITAL RATIO

28.00%

Internal Use Only

Tier 1 Capital = 28

HIGH RISK ASSET BANK & TRUST

AVG. BOOK BALANCE

RISK FACTOR

WEIGHTED VALUE

Cash

10 10 46

0%

0 2

FHLB Bonds

20% 50%

1-4 Family RE Loans Commercial Loans

23

484

100%

484

AVG. TOTAL ASSETS = 550

R-W Assets = 509

TIER 1 CAPITAL

28

TIER 1 CAPITAL

28

AVG. TOTAL ASSETS

550

TOTAL RISK-WEIGHTED ASSETS

509

TIER 1 LEVERAGE RATIO

5.10%

TIER 1 CAPITAL RATIO

5.50%