In Chapter 7 we work with understanding the use of Gap Analysis. I would like you to do a Rate Sensitivity Analysis for Union Bank of Beulah, ND. You will find an example of the format in the content of D2L under Chapter 7 (Rate Sensitivity Analysis) or on page 259 (Exhibit 7.5) of your text. I would like you to do buckets for the following time periods: 1-30 days, 31-90 days, 91-180 days, 181-365 days, 1 year–2 years, Over 2 years. I have put files for Union Bank of Beulah showing the Balance Sheet, the Loans, the Securities, and the Deposits.
Please submit your analysis in D2L under Chapter 7 Assignment in the Content section.
On the Asset Side we find the following loans maturing by percentage:
Cash and due from depository institutions is Non-rate sensitive less the Interest-bearing balances
Interest-bearing balances 100% in 1-30 days
Securities
U.S. Government securities
Non-mortgage backed: 10% in 1-30 days 20% in 31-90 days 30% in 91-180 days
40% in 181- 365 days
Mortgage-backed securities
Pass-through securities 2% in 1-30 days 4% in 31-90 days 6% in 91-180 days
10% in 181- 365 days 18% in 1-2 years 60% in Over 2 years
Pass-through securities issued or guaranteed
by FNMA, FHLMC, OR GNMA 1% in 1-30 days 2% in 31-90 days 2% in 91-180 days
3% in 181- 365 days 7% in 1-2 years 85% in Over 2 years
Securities issued by states
& Political subdivisions. 1% in 1-30 days 2% in 31-90 days 3% in 91-180 days
6% in 181- 365 days 8% in 1-2 years 80% in Over 2 years
Federal funds sold and reverse
repurchase agreements 100% in 1-30 days
Loans
1-4 family residential construction 50% in 31-90 days 50% in 91-180 days
Other construction, all land development
and other land 20% in 1-30 days 80% in 31-90 days
Secured by owner-occupied properties 1% in 1-30 days 2% in 31-90 days 3% in 91-180 days
6% in 181- 365 days 12% in 1-2 years 76% in Over 2 years
Other non-farm non-residential 25% in 1-30 days 25% in 31-90 days 50% in 91-180 days
Multifamily residential real estate 1% in 1-30 days 2% in 31-90 days 2% in 91-180 days
5% in 181- 365 days 10% in 1-2 years 80% in Over 2 years
1-4 family residential 1% in 1-30 days 2% in 31-90 days 2% in 91-180 days
5% in 181- 365 days 10% in 1-2 years 80% in Over 2 years
Farmland 1% in 1-30 days 4% in 31-90 days 5% in 91-180 days
10% in 181- 365 days 20% in 1-2 years 60% in Over 2 years
Farm loans 5% in 31-90 days 15% in 91-180 days 20% in 181- 365 days
25% in 1-2 years 35% in Over 2 years
Commercial and industrial loans 5% in 1-30 days 10% in 31-90 days 15% in 91-180 days
20% in 181- 365 days 30% in 1-2 years 20% in Over 2 years
Credit cards 100% in 1-30 days
Other revolving credit plans 100% in 1-30 days
Automobile loans 2% in 1-30 days 4% in 31-90 days 6% in 91-180 days
12% in 181- 365 days 24% in 1-2 years 52% in Over 2 years
Other loans to individuals 5% in 31-90 days 10% in 91-180 days 15% in 181- 365 days
20% in 1-2 years 50% in Over 2 years
Total other loans and leases * 5% in 31-90 days 10% in 91-180 days 15% in 181- 365 days
20% in 1-2 years 50% in Over 2 years
Bank premises and fixed assets Non-rate sensitive
Other real estate owned Non-rate sensitive
Goodwill and other intangibles Non-rate sensitive
All other assets Non-rate sensitive
On the Liabilities and Equity Side we find the following loans maturing by percentage:
Other transaction deposits 100% in 91-180 days
Money market deposit accounts (MMDAs) 30% in 31-90 days 70% in 91-180 days
Other transaction deposits 100% in 91-180 days
Other savings deposits (excluding MMDAs) 100% in 1-2 years
Total time deposits 1% in 1-30 days 2% in 31-90 days 3% in 91-180 days
6% in 181- 365 days 12% in 1-2 years 76% in Over 2 years
Demand deposits Non-rate sensitive
All other liabilities Non-rate sensitive
Total equity capital Non-rate sensitive