Information for Cardiff National Bank is shown below Use thi

Information for Cardiff National Bank is shown below. Use this information to 7/5/2018 Final Exam (Comprehensive) answer the six questions. Checkable $ deposits CD\'s and time deposits Debt outstanding 181,622,727 Cash and deposits 197,554,545 with other 95,590,909 1,180,547,726 banks FED deposit US Treasury 165,690,909 Total liabilities securities 433,982,727 1,559,725,000 Finance Chegg tutors wh

Solution

a.

Net Interest margin = Net Income / interest earned

= $3,536,364 / $12,769,818

= 27.69%

Net Interest Margin is 27.69%.

b.

Return on assets = Net Income / Total assets

= $3,536,364 / $1,752,500,000

= 0.20%

Return on assets is 0.20%.

c.

Return on Equity = Net Income / Total assets

= $3,536,364 / $192,775,000

= 1.83%

Return on equity is 1.83%.