On an overall basis, total assets increased from a projected balance of $115MM on January 1, 2002 to $159MM on December 31, 2002.
The investment securities portfolio is anticipated to be $19MM as of December 31, 2002.
Projected loan volume increase during 2002 is from $92MM to $127MM.
Cash and Cash Equivalents
Due From Banks – With the loan portfolio increasing by nearly $35MM and total deposits projected to increase by $27MM, a larger cash letter is anticipated.
Due From Banks – Int Bearing – These funds are primarily FHLB deposits. The budget reflects a decrease in the balance by $100M per month during the entire year. The decrease is due to servicing interest on the advances netted against security interest payments.
Fed Funds Sold – Plug.
Pending Loan Disbursements – With the increase in loan production for 2002, the % of PLD to total cash and cash equivalents is anticipated to double from 14% at 1/1/02 to 28% at 12/31/02.
Investment Securities
With the exception of Equity Securities, each security type retains its pro rata share of the entire portfolio at both the beginning of the year and at year end. No assumptions are made for called securities. Each security type reflects the maturing schedule as provided by HFW. Securities are added to the portfolio randomly.
Equity Securities are increased when a new FHLB advance is added.
Loans
Commercial Loans – The total C/L portfolio reflects new loan volume of $23.5 million during 2002. This growth is reduced by an anticipated prepayment rate of 21.28%.
Consumer/H.E. Loans – Growth in this area parallels the growth in total assets (39.13%).
Mortgage Loans – The total M/L portfolio reflects new loan volume of $42MM during 2002. Again, this growth is reduced by an anticipated prepayment rate of 21.28%.
Mortgage Loan Pools – One new pool ($300,000 per pool) is added to the portfolio from April through December. In addition, the prepayment rate of 21.28% applies.
Other Loans and Overdrafts – Growth in this category parallels the growth in total assets (39.13%).
Reserve for Loan Losses – Computed at 1.5% of Gross Loans.
Fixed Assets & Other Assets
Bank Premises & Equipment – Monthly activity reflects a $40,000 increase reflecting beginning of year purchases. Subsequent purchases are slated in April, June, September, and December at $10,000 for each quarter. Monthly depreciation is estimated at approximately $15,000 per month.
ORE – Other Real Estate is calculated at 2% of net loans.
Interest Earned not Collected – The monthly balance is a percentage of gross loans.
every 100 contracts the company buys 2 will default on the loan. There is a 2% chance of default
As of December 26, 2004, our liquid assets totaled $10,924,000. These assets consisted of cash and cash equivalents in the amount of $10,642,000 and short-term investments in the amount of $282,000. The working capital deficit increased slightly from $50,359,000 as of December 28, 2003 to $51,041,000 as of December 26, 2004. This increase was due primarily to increases in the loss reserve and unearned premiums related to the captive insurance subsidiary and accounts payable and was partially offset by increases in inventories and receivables.
As a means to assist small businesses during the recession, the current US administration proposed to increase the loan size cap for standard CDC/504 and 7(a) loans to $5 million. A similar proposal ...
The ceiling of $399,000 in borrowing ability placed on the company by the Suburban National Bank is consistently insufficient to meet their growing needs. Sales have increased from $2,921,000 in 1993 to $4,519,000 in 1995. This is an increase of 54%. In addition Clarkson has demonstrated an ability to stay within Suburban's $400,000 limit only by relying heavily on trade credit.
Hickman, K. A., Byrd, J. W., & McPherson, M. (2013).Essentials of finance. San Diego, CA: Bridgepoint Education Inc.
... middle of paper ... ... 1. What is the difference between a. and a. What are MCI's needs for future external funds likely to be?
Current Ratio – For the last three years was growing from 3.56 in 2001 to 3.81 in 2002 to 4.22 in 2003. The reason of grow is increased in Assets. Even though Liability was growing, Asset grow was more significant.
Butler Lumber Company is looking for more cash due to a fast-paced lumber market and a shortage of funding. Their regular bank, Suburban National Bank, is not willing to expand their exiting loan to an amount greater than $250,000 without securing the loan with real property. Another loan is being offered by a second bank, Northrup National Bank, for $465,000, with the understanding that the previous loan would be rolled into the second. The interest on the new loan would be prime + 2%.
As higher investors generally expect higher returns for a more leveraged firm (Arnold 2013 p 697) there would appear to be very little scope for the RM to increase its debt capital unless it can convince investors profits are likely to profit significantly. Unfortunately the annual report does not suggest such growth is likely short term, due to increased parcel competition and falling letter sales (RM 2015).
Bhardwaj, G. & Sengupta R. (2012). Subprime mortgage design. Journal of Banking & Finance, 36, 1503-1519
1.0bn working capital line (“Revolving Credit Facility” or “RCL”). While they had learned from their most
... middle of paper ... ... It is now currently 5.24%, which is a big jump for only four weeks. Mortgages are through banks, so that is money they are losing since it is so low right now.
This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Cybrary, the Internet, and course resources to write a 2-page essay which you will use with new clients of your financial planning business which addresses the following issues and/or practices:
Net working capital, is a key figure to watch only if you have several years worth of reports to compare.
The basic earnings per ordinary share in 2016 is RM19.14 and RM14.30 in 2015. This shows that the ordinary share had been increased RM4.84 compare to 2016 based on 2015. In the other hand, this company had declared a first interim single-tier dividend of 10 sen per ordinary share amounting to RM22.88 million in respect of the financial year ended 31 December 2016. They sold their ordinary shares of RM400,000,000 units of RM0.50 per each in 2016 and RM200,000,000 units of RM0.50 per each in 2015 to their shareholders. It is increased from 2015 to 2016 with 200,000,000 units. The other investments that available for sale is RM1000 same as in 2015 and 2016.