Overall Basis :: essays research papers

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.