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Question
Castle State Bank has the following financial information.
| Balance Sheet | Income Statement | ||
| Cash | $100 | Interest Income | $400 |
| Securities Investments | $600 | Interest Expenses | ($150) |
| Net Loans | $1200 | Non-Interest Income | $50 |
| Net Premises and Equip. | $300 | Non-Interest Expenses | ($100) |
| Total Assets | $2200 | Provision for Loan Losses | ($60) |
| Deposits | $1100 | Pre Tax Net Operating Income | $140 |
| Non-Deposit Borrowings * | $800 | Securities Gains (Losses) | ($40) |
| Equity Capital | $300 | Taxes | ($45) |
| Total Liabilities and Equity | $2200 | Net Income | $55 |
| * All Purchased Funds |
Use this information to calculate Castle State Banks net profit margin
A) 20.45%
B) 18.33%
C) 12.22%
D) 7.33%
E) 2.5%
Answer
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Interest Income
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