The Stanford Bank Game, Version XI, International
1
Bank no. 1 — Period 2.1, Page
Bank1 — Statements of Financial Condition
Balance Sheet
Income Statement
Resources
2.1
1.4
Operating Income
2.1
1.4
Cash and due from banks
Libor funds sold
Investment securities
90day Govt. notes
359.398
.000
359.254
.000
167.896
260.000
Interest income
Loans and mortgages
Securities
Libor funds sold
90.390
16.819
.000
87.529
18.511
.000
Government notes
State securities
Total securities
379.560
404.849
952.305
384.892
406.290
1051.182
107.209
106.040
Loans and mortgages
3530.633
3472.557
4.553
21.869
133.631
4.619
21.224
131.882
23.152
22.951
27.689
10.261
26.921
10.457
17.029
16.777
4857.134
4897.419
58.178
.894
1.833
60.905
56.849
.909
1.147
58.905
1535.712
2890.701
4426.413
1551.705
2951.798
4503.503
85.420
54.933
7.265
4.155
3.200
22.772
7.279
4.044
3.100
22.503
.000
3.300
7.333
38.326
4560.792
.000
3.300
7.791
39.570
4609.097
115.326
112.608
18.305
5.806
19.274
6.268
.363
12.862
.378
13.384
3.300
3.300
9.562
10.084
Net earnings per share
$4.29
$4.46
Adjust to Ret. Earnings
-0.92
-0.49
11.941
12.894
$3.98
$4.30
(less provision for loan losses)
Bank premises
less depreciation (27.566 & 26.030)
Other assets
Total resources
Liabilities and equities
Demand deposits
Time deposits
Total deposits
Libor funds purchased
Central Bank borrowing
Dividend payable
Accrued taxes
Other liabilities
Total liabilities
Capital notes and equity funds
Capital notes
Common stock ($10.00 par shares,
Issued:3.000 & 3.000 million)
Surplus
Retained Earnings
37.837
38.457
30.000
30.000
48.519
179.986
48.519
171.346
258.505
249.865
4857.134
4897.419
307.918
299.797
.992
.967
Total interest income
Service charge income
Fees and other income
Gross operating income
Operating Expenses
Salaries and benefits
Interest expenses
Interest on deposits
Interest on capital notes
Libor and C.B. Borrowing
Total interest paid
Provision for loan losses
Occupancy expense
Business development
Other expenses
Total operating expenses
Income before taxes and securities
Applicable taxes
Gain on securities/loans
Old Loans
Current Loans
Default Loss
Fees
.000
.000
(.390)
.000
Futures
1.089
(after taxes of .335 & .349)
Net income
Dividend declared
Total equity *
Total liability & capital
* Total qualifying capital
Capital adequacy ratio
Increase in equity
Adjusted Net Income
Adjusted Net EPS
All figures except Net Earnings Per Share in millions
The explanatory notes on Pages 2-6 form an integral part of this statement.
The Stanford Bank Game, Version XI, International
2
Bank no. 1 — Period 2.1, Page
Footnotes to financial statements of Bank1
7. Interest accounts
Time deposit interest
(Public
5.901)
(C.D.'s
18.343)
1. Accounting Policies.
Standard accrual accounting, as set out
in the players manual, has been used in
preparation of these reports.
(Savings
2. Demand deposit accounts
Commercial
Regular checking
State DD's
Due-to-banks
Total DD'S
3. Time deposit accounts
Money market savings
State
C.D.'s (private)
Total TD's
.000
1.833
Capital notes interest
Total interest paid
509.410
196.934
137.566
1535.712
.894
60.905
8. Capital notes account
Matures in
Rate
20.1
9.45
1740.220
295.061
855.420
Syndicated loan interest
Prime loan interest
High loan interest
20.219
15.937
20.992
Medium loan interest
Real estate loan interest
Consumer loan interest
Credit card loan interest
16.907
6.234
5.771
4.330
90day Govt. notes
Government notes
State bonds
Libor sales
Total interest income
3.028
7.582
6.209
.000
107.209
Amount Outstanding
37.837
Amount Issued
49.620
9. Service charge income
2890.701
Commercial DD's service charge income
Regular DD's service charge income
DD processing costs
Net service charge income
4. Reserves and pledging requirements
Required reserves
(Actual reserves
Pledged securities
Government
State
33.934)
C.B. Borrowing
Libor purchases
691.803
58.178
194.164
194.164)
10. CD portfolio
Matures
in
2.2
2.3
549.896
375.750
3 Month
rate amount
8.49
185.
2.956
3.185
1.588
4.553
6 Month
rate amount
8.38
200.
8.82
50.
1 Year
rate amount
8.47
120.
8.45
120.
2.4
3.1
5. Cash accounts
Cash and reserves
Float
194.164
79.684
Due-from-banks
Total cash
85.550
359.398
Plus new loans
Ending balance
Matures in 11.3
0.400 million defaulted
Commercial grades
Real
Credit
Synd.
874.438
109.725
.275
Prime
635.478
431.720
.985
High
781.237
529.473
1.929
Medium
560.104
381.322
2.164
Estate
248.636
2.264
.244
.000
Consumer
206.713
44.503
.683
Cards
165.951
202.407
.785
100.000
864.438
437.591
640.363
545.225
795.059
397.852
574.471
30.708
276.836
47.440
208.967
207.739
170.498
.000
.000
.000
.000
.000
435.318
540.184
390.890
(** Assuming competitive rates maintained)
2.413
44.905
Loans refused
Principal payments
next quarter. **
105.
75.
11. Default losses:
Losses due to default were experienced in the following municipals.
6. Loan account activity
Beginning balance
Less payments
Less charge offs
Less loans sold
8.78
9.23
114.713
Provision for loan losses:
Beginning balance
2.783
2.917
5.769
6.392
.768
2.055
2.267
Additions this quarter
Less charge offs
Ending balance
.275
.275
2.783
1.023
.985
2.955
1.946
1.929
5.787
2.263
2.164
6.491
.207
.244
.731
.678
.683
2.050
.872
.785
2.355
7.042
12.535
14.151
1.285
4.055
4.309
Non-accruing loans—memo
The Stanford Bank Game, Version XI, International
3
Bank no. 1 — Period 2.1, Page
Footnotes to financial statements of Bank1
18. Fees and other income
12. Pension Activities
Pension assets managed
Pension assets held in TD's
Pension assets held in DD's
Pension fee income
Pledging requirements
Direct pension expenses
1071.531
87.866
130.727
2.069
240.451
1.406
13. Real estate loans
Total real estate loans serviced
Servicing income
Cost of servicing
Loan initiation fees
Cost of loan initiation
2.069
Real estate servicing income
Real estate loan initiation fees
Credit card fees
Financial services fees
.142
.384
12.508
2.978
Letter of credit fees
Loan commitments fees
Other fee income
Total
.409
2.540
.840
21.869
113.714
.142
.057
.384
.307
14. Credit card income
Credit card fee income
Credit card processing costs
Pension fees
12.508
12.567
19. Other expense
Direct pension
Servicing real estate loans
Real estate loan initiation cost
1.406
.057
.307
Credit card processing
Direct financial services
Direct letter of credit
Temporary employees & other
12.567
2.213
.152
6.069
Total
22.772
15. Financial services
20. Effect of branch activity
Fee income
Direct expenses
2.978
2.213
16. Letters of credit
Beginning balance
Less lapsed LOC's
657.227
140.750
Less new drawdowns
Plus new guarantees
Ending balance
26.810
164.015
653.682
Fee income from letters of credit
Direct letter of credit expenses
LOC's increase to non-accruing loans
.409
.152
1.995
Closing a branch
Money market savings/branch lost
Regular DD/branch lost
Commercial DD/branch lost
Premises disposed of/branch
Severance pay expense incurred
45.795
13.406
1.821
.729
(only if more than one branch closed)
Opening a branch
New premises bought/branch
.448
1.093
Current number of branches
34
17. Loan commitments
Unused lines of credit:
Beginning balance
Less lapsed commitments
Less commitments utilized
Plus new loan commitments
Ending balance
Fee income from commitments
Deposits securing commitments
Total
4023.459
965.630
1380.668
Prime
1320.092
316.822
437.591
High
1582.402
379.776
545.225
Medium
1120.966
269.032
397.852
2386.160
4063.321
767.593
1333.272
942.426
1599.826
676.141
1130.222
2.540
60.950
The Stanford Bank Game, Version XI, International
4
Bank no. 1 — Period 2.1, Page
Footnotes to financial statements of Bank1
21. Commercial loan payments (projected and actual) and outstandings
Projected to mature in 2.2
from
1.3
1.4
2.1
PRIME
Spread
Amount
0.00%
52.69
HIGH
Spread
Amount
0.00%
63.27
MEDIUM
Spread
Amount
0.00%
45.94
0.00%
0.00%
98.20
284.43
435.32
-0.05%
-0.05%
122.52
354.40
540.18
0.01%
-0.07%
86.35
258.60
390.89
Spread
---%
0.00%
0.00%
Amount
51.51
98.75
281.46
Spread
---%
0.00%
-0.05%
Amount
61.73
119.28
348.46
Spread
---%
0.00%
0.01%
Amount
44.96
87.29
249.07
Total
Actually matured in 2.1
from
1.2
1.3
1.4
Total
431.72
529.47
381.32
Currently outstanding in 2.1
from
1.3
1.4
2.1
Less charge offs
Spread
0.00%
0.00%
0.00%
Amount
52.69
151.07
437.59
0.99
Total
Spread
0.00%
-0.05%
-0.05%
640.36
Amount
63.27
188.50
545.22
1.93
Spread
0.00%
0.01%
-0.07%
Amount
45.94
132.85
397.85
2.16
795.06
574.47
22. Real estate & consumer loans: Selected data
Total real estate portfolio
Saleable real estate portfolio
Market Value
277.674
Book Value
276.836
219.350
220.716
Market / Book for saleable real estate loans
Interest from saleable real estate loans
Consumer loan portfolio
99.38%
5.518
Real estate loan portfolio
Syndicated loan portfolio
Matures
at start
Consumer
loan
Unpaid
Mortgage
Unpaid
Interest
Loan
of period
2.3
2.4
3.1
3.2
rate
11.25
12.11
12.11
11.50
principal
5.843
11.533
20.006
25.343
rate
10.54
10.46
10.50
10.59
principal
.033
.063
.125
.158
Rate
9.15
9.35
9.75
9.20
Amount
114.713
109.725
115.000
100.000
3.3
3.4
4.1
4.2
11.45
11.45
11.97
11.97
29.172
33.137
36.493
47.440
10.37
10.50
10.46
10.33
.188
.215
.292
.335
9.15
9.15
9.35
9.75
110.000
105.000
110.000
100.000
The Stanford Bank Game, Version XI, International
5
Bank no. 1 — Period 2.1, Page
Static Gap Analysis — Bank1
1-90
91-180
181-270
271-1Yr
1Yr-3Yrs
Over 3Yrs
Total
Rate Sensitive Assets
Government
State Bonds
Libor funds sold
Syndicated loans
547.46
404.85
0.00
114.71
109.72
115.00
100.00
425.00
Commercial loans
Real estate loans
Consumer loans
Credit card loans
Total RSAs
2009.89
276.84
44.91
170.50
3569.16
0.00
0.00
44.91
0.00
154.63
0.00
0.00
44.91
0.00
159.91
0.00
0.00
44.91
0.00
144.91
0.00
0.00
29.33
0.00
454.33
0.00
0.00
0.00
0.00
0.00
2009.89
276.84
208.97
170.50
4482.95
Rate sensitive liabilities
Money market savings
State time
1740.22
295.06
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1740.22
295.06
Demand deposits
CDs
Libor funds purchased
C.B. Borrowing
153.57
505.42
85.42
0.00
0.00
170.00
0.00
0.00
0.00
105.00
0.00
0.00
0.00
75.00
0.00
0.00
153.57
0.00
0.00
0.00
1228.57
0.00
0.00
0.00
1535.71
855.42
85.42
0.00
0.62
2780.31
0.62
170.62
0.62
105.62
0.62
75.62
4.96
158.53
30.40
1258.97
37.84
4549.67
788.85
(15.99)
54.29
69.29
295.80
(1258.97)
Capital notes
Total RSLs
Balance sheet gap
IRR Cap. requirement
Years
547.46
404.85
0.00
864.44
(66.72)
15.78
Current Securities Data (excluding 90 day Govt. Notes & Maturities)
State & Muni
Government Securities
Sum of
Duration
Sum of
Duration
To
Maturity
1
2
Market
Value
22.95
28.84
Weighted
Value
5.48
13.46
Duration
Factor
0.24
0.47
3
4
5
6
7
71.98
11.41
22.39
16.43
53.26
53.34
9.47
22.99
19.23
76.44
0.74
0.83
1.03
1.17
1.44
8
9
10
Total
43.25
53.75
74.94
399.17
66.93
92.53
144.89
504.76
1.55
1.72
1.93
Market
Value
117.77
49.90
Weighted
Value
58.11
40.53
24.77
49.59
103.53
27.17
74.53
213.21
345.58
413.55
Duration
Factor
0.49
0.81
1.10
1.50
2.06
Futures Policy Data for Next Quarter
DW Value of securities
DW Value of sales
918.31
- ________
Duration weighted value of purchases
Total
+ ________
= ________
Quarter
MV of securities exposed to rates
Current MV of securities exposed to rates
Adjustment to retained earnings (after tax)
Pre-tax adjustment to retained earnings
Profit/Loss on futures
Speculation capital requirement
1.4
776.18
2.1
786.18
744.75
-0.92
-1.77
1.09
0.00
The Stanford Bank Game, Version XI, International
6
Bank no. 1 — Period 2.1, Page
Trading and Available for Sale — Securities Portfolio Breakdown
Bank1
State Bonds
Series A
State Bonds
Series B
State Bonds
Series B
Matures
In
2.2
2.3
Par
Value
5.000
0.000
Coupon
Rate
5.90
5.90
Market
Value
5.000
0.000
Par
Value
0.667
0.833
Coupon
Rate
3.40
3.50
Market
Value
0.667
0.826
2.4
3.1
3.2
3.3
3.4
10.000
10.000
0.000
5.000
0.000
7.87
6.00
6.10
6.30
6.40
10.054
9.944
0.000
4.972
0.000
1.333
0.833
0.833
1.250
0.833
3.60
3.60
3.70
3.70
4.20
4.1
4.2
4.3
4.4
5.1
20.000
18.000
27.000
24.000
0.000
6.06
6.00
6.06
6.30
6.36
19.769
17.744
26.605
23.744
0.000
1.333
2.083
1.250
0.750
0.000
5.2
5.3
5.4
6.1
6.2
6.3
6.4
7.1
Totals
119.000
117.831
Matures
In
2.2
Par
Value
28.000
One Year Gov. Bonds
Coupon
Market
Rate
Value
7.48
28.000
2.3
2.4
3.1
3.2
45.000
40.000
5.000
Coupon
Rate
4.00
4.40
Market
Value
4.417
4.481
1.312
0.814
0.808
1.204
0.803
7.4
8.1
8.2
8.3
8.4
3.333
5.000
15.000
15.000
25.000
4.70
4.70
6.10
6.10
6.20
3.019
4.511
14.510
14.493
24.259
4.30
4.40
4.50
3.90
3.90
1.279
1.991
1.191
0.701
0.000
9.1
9.2
9.3
9.4
10.1
0.000
15.000
0.000
15.000
14.700
6.20
5.90
6.00
6.40
6.30
0.000
14.279
0.000
14.678
14.288
0.417
1.250
2.500
8.333
4.00
4.00
4.20
4.00
0.386
1.150
2.301
7.575
10.2
10.3
10.4
11.1
25.000
5.000
0.000
25.000
6.40
6.60
6.70
6.38
24.436
4.947
0.000
24.363
0.000
16.667
8.333
0.000
4.00
4.00
3.90
3.60
0.000
14.976
7.413
0.000
11.2
11.3
11.4
12.1
19.600
30.000
27.000
0.000
299.131
6.32
6.38
6.62
6.68
19.012
29.205
26.719
0.000
287.018
Par
Value
6.000
Five Year Govt. Bonds
Coupon
Market
Rate
Value
5.30
6.000
6.20
7.20
6.50
8.20
5.979
6.976
14.829
14.997
3.3
3.4
4.1
4.2
4.3
15.000
10.000
10.000
5.000
0.000
8.20
8.20
8.20
7.90
8.00
14.978
9.971
9.956
4.943
0.000
4.4
5.1
5.2
5.3
5.4
10.000
10.000
10.000
15.000
5.000
8.30
8.20
8.30
8.60
8.70
9.934
9.896
9.908
14.969
5.001
6.1
6.2
6.3
6.4
20.000
30.000
40.000
30.000
8.26
8.18
8.26
8.58
19.711
29.445
39.312
29.796
5.000
264.000
8.66
4.977
261.579
118.000
44.989
39.997
4.996
Par
Value
5.000
5.000
6.000
7.000
15.000
15.000
7.1
Totals
7.56
7.88
7.96
Matures
In
7.2
7.3
117.982
Par value of treasury bills held 167.896 (Yield 7.21)
Securities maturing next period 207.563
The Stanford Bank Game, Version XI, International
7
Bank no. 1 — Period 2.1, Page
Economic and Statistical Information — Bank1
Market and competitive conditions
All banks in
economy at
start of qtr.
Loan Interest Rates
Syndicated
Prime
High
Medium
9.75
10.05
10.75
12.07
Bank
number
1
Average for
banks playing
SBG XI
10.05
10.70
12.00
10.05
10.70
12.00
10.10
11.97
10.10
11.97
Economic indices at end of period 2.1
All banks in
economy at
present
10.01
10.31
11.24
12.35
Real estate
Consumer
Credit card
10.40
12.55
16.50
Commit. fee
.50
.50
LOC fee
.25
.25
9.60
9.85
Prime rate
Time deposit rates
MM savings
CD's—3 mo
CD's—6 mo
CD's—1 yr
State
Service charges
Comm C/I
CR/100
Reg C/C
CR/100
Cr. card fee
10.65
12.85
16.50
Gross Domestic Product
Index of industrial production
2172.
125.0
Index of housing starts
Consumer price index
Net reserves in banks (millions)
110.5
115.9
140.
Forecast economic conditions
High Medium
2250.
2226.
2301.
2256.
GDP next qtr
GDP next year
C.B. Regulations
Central Bank rate
DD reserve rqmt.
Start of qtr
7.50
14.50
Libor Funds available
CD's available
7.75
7.80
8.49
8.82
7.80
8.49
8.82
9.23
9.23
At present
7.75
14.50
758.
2564.
7.90
Syndicated loans available
128
4.50
4.50
4.50
4.50
Yield on Government Securities
Maturing
90 days
180 days
1 year
35.0
6.00
17.0
3.20
35.0
6.00
18.0
3.20
35.0
6.00
18.0
3.20
35.0
6.00
18.0
3.20
5 years
10 years
10 years
3 years
8.00
8.15
State
7.33
7.66
8.08
8.78
9.05
6.77
6.45
Average bank stock P/E ratio in economy
Libor Rates
Borrowing
Lending
8.65
8.20
Beta
1.08
Low
2125.
2210.
7.8
8.52
8.25
CD Rates (this bank)
1.11
1.11
WACC
14.37
14.37
Corporate Return
16.69
16.69
Capital notes rates
1.08
3 month
6 month
1 year
8.28
8.62
9.03
Economic Average
for bank 1
5 million
10 million
10.05
25 million
11.06
10.92
10.92
Performance Measures — This Bank and Average for All Banks
Return
Net Interest Margin
Profit Margin
Asset Utilization
Avg
Bank 1
0.0415
0.0415
8.94%
8.94%
0.1100
0.1100
Risk
Liquid Assets / Total Assets
Net Volatile Assets / Total Assets
Capital Risk (Tot Equity / Tot Assets)
Return on Assets
Equity Multiplier
Return on Equity
Price / Earnings
0.98%
18.79
18.48%
7.0
IRR (1yr RSA / 1yr RSL)
Credit Risk (Loan Reserves / Loans)
0.98%
18.79
18.48%
7.0
Avg
Bank 1
18.67% 18.67%
-3.34%
-3.34%
0.0532
0.0532
1.2862
0.66%
1.2862
0.66%
The Stanford Bank Game, Version XI, International
8
Information common to all banks — Period 2.1, Page
Information on competing banks for Bank1
Prime
Bank
No.
Rate
Diff
Mkt.
Rate
1
10.05
.00
Bank
No.
1
Total
CD's
855.42
High
Total
Comts
Percent
Change
Comts
1333.3
1.0
New
CD's
310.42
Rate
Diff
Mkt.
Rate
10.70
-.05
Total
Nonaccrual
Loans
43.376
Matured
CD's
404.93
Medium
Total
Comts
Percent
Change
Comts
1599.8
1.1
Additions to
Loan loss
Reserves
7.265
Bank
Net
Interest
Total
Other
Total
Operating
Net
S/C
Net
C.C.
No.
1
Income
46.304
Income
26.422
Expense
47.156
Income
4.553
Income
(.059)
Bank
No.
1
Net
Pension
Income
.663
Net
F/S
Income
.764
Net
LOC
Income
.256
Net
R.E.
Income
.162
Loan
Fee
Income
2.540
Rate
Diff
Mkt.
Rate
Total
Comts
12.00
-.07
1130.2
LOC's
Additions to
Non-accruals
1.995
Total
LOC's
653.68
Percent
Change
Comts
.8
The Stanford Bank Game, Version XI, International
9
Information common to all banks — Period 2.1, Page
Information on competing banks for Bank1
Bank
No.
Earnings
EPS
Non
Op.
EPS
Adj.
Retained
Earnings
4.29
.12
-0.31
1
12.86
Bank
No.
Credit
Flag
LOC
Flag
1
0
2
Synd.
9.15
24.6%
Prime
10.05
18.3%
Loan interest rates over
Percent of loan portfolio in each class
High
Medium Real Est. Consumer
10.70
22.7%
12.00
16.4%
10.10
7.9%
Service charges
Comm
C/I CR
4.5
Reg
C/I CR
35. 6.0
18.
Salaries
Total
Flag
17.029
0
Adv
Expense
3.200
Futures
Contracts
-96
11.97
6.0%
Div
Price
Per
Share
Per
Share
1.10
111.4
CC Fee
3.20
4.9%
The Stanford Bank Game, Version XI, International
10
Information common to all banks — Period 2.1, Page
Bank positions at end of period for Bank1
Bank
No.
Total
Cash
Government
Securities
State
and
Local
Commercial
Loans
Other
Loans
Net
Premises
Total
Assets
1
359.4
547.5
404.8
2009.9
1497.6
27.7
4857.1
Average
359.4
547.5
404.8
2009.9
1497.6
27.7
4857.1
509.4
Other
DD's
334.5
M.M.
Time
Deposits
1740.2
509.4
334.5
1740.2
Next
Bank
No.
1
Average
Bank
No.
1
Average
Commercial
Demand
Deposits
691.8
691.8
Libor
Funds
Bought
Reg.
DD's
C.B.
Borrowing
85.4
0.0
Capital
Securities
37.8
85.4
0.0
37.8
Total
Equity
258.5
258.5
Rate
on
MM's
6 Mo
CD
Rate
7.80
8.62
Other
TD's
1150.5
7.80
8.62
1150.5
The Stanford Bank Game, Version XI, International
11
Bank no. 1 — Period 2.1, Page
Decision Data for Bank1
Commercial Loan Interest Rates
Prime Loans Interest Rate
10.05
High Loans Interest Rate
Medium Loans Interest Rate
Consumer Loan Interest Rate
10.70
12.00
11.97
Real Estate Loans
Interest Rate
Sell Old Loans
Sell Current Loans
10.10
0
0
Loan Policies
General Credit Policy
Letter of Credit Policy
Service Charges, Fees and Credits
Credit Card Fee
Commercial Checking
Charge per Item
Credit each $100 average balance
Regular Checking
Charge per Item
Credit each $100 minimum balance
Certificates of Deposit
90 Day CD's
180 Day CD's
One Year CD's
0
2
3.20
4.5
35.0
6.0
18.0
Salary Policy
Percent Effort New Business
Allocation of Officer Effort
Pension
Financial Services
Commercial Deposits
Regular Deposits
State DDA's
Due to Banks
State Time Deposits
CD's
1.10
Stock
Flag
Amount
Notes
0
0
Flag
Amount
0
0
Securities Purchases
Government
90 Day
1 Year
5 Year
0
5
5
State Bonds
3 Year, Series 'A'
10 Year, Series 'B'
0
0
Maximum Limits
Liabilities
Maximum C.B. Borrowing
999
999
999
100
50
Maximum Libor Funds Purchased
Maximum New State TD's
Loans
Maximum New Prime Loans
Maximum New High Loans
75
Maximum New Medium Loans
999
999
999
Securities Sales
Expenses and Allocations
Money Market Savings Rate
Business Development Budget
Branches
Close
Open
Capital Structure
Per Share Dividend
7.8
3.200
0
0
0
50
2
2
15
8
3
3
6
4
Savings
Prime
High
Medium
9
14
12
8
Real Estate
Consumer Loans
Credit Card Outstanding
10
2
2
Syndicated Loans
Bought
100
Futures Contracts
Bought
Sold
0
96
Sale 1
Maturity Year and Quarter
Amount
Type
Sale 2
0.0
0
0
Maturity Year and Quarter
Amount
Type
Sale 3
0.0
0
0
Maturity Year and Quarter
Amount
Type
Sale 4
Maturity Year and Quarter
0.0
0
0
Amount
Type
Sale 5
Maturity Year and Quarter
Amount
0
0
Type
Sale 6
Maturity Year and Quarter
Amount
0.0
0.0
0
0
0.0
0
Type
Sale 7
Maturity Year and Quarter
Amount
Type
0
0.0
0
0
Sale 8
Maturity Year and Quarter
Amount
Type
0.0
0
0
The Stanford Bank Game, Version XI, International
1
Bank number
1
SBG
111.4
111.4
Percent change
-2.7
-2.7
Price/earnings
7.0
7.0
Earnings per share
4.29
4.29
Stock price
-3.9
-3.9
-3.3
-3.3
Commercial loans
6.7
6.7
Demand deposits
-4.1
-4.1
Time deposits
-8.3
-8.3
Percent change EPS
Annualized growth rates %
Total assets
Pertinent ratios
Capital adequacy
0.99
0.99
Libor + CB / T.A.
0.02
0.02
Capital notes / equity
0.15
0.15
State loans / assets
0.08
0.08
Operating income
12.499
12.499
Net interest income
46.304
46.304
Loans
90.390
90.390
Loan port. avg %
10.31
10.31
Securities
16.819
16.819
Security port. avg %
7.06
7.06
Libor Funds
0.000
0.000
MM TDs
33.934
33.934
CDs
18.343
18.343
Cap. notes
0.894
0.894
C.B. + Libor
1.833
1.833
% Chg interest income
1.10
1.10
% Chg interest expense
3.40
3.40
Interest income
Interest expense
Instructor's report — Period 2.1, Page
The Stanford Bank Game, Version XI, International
2
Bank number
1
SBG
22.772
22.772
1.20
1.20
21.869
21.869
% Change tot. fee. inc.
1.03
1.03
Net service charge inc.
4.553
4.553
% Chg. net S/C inc.
0.99
0.99
Pre-Tax earn/grs int exp
0.25
0.25
31.72
31.72
Total other expense
% Change tot. oth. exp.
Total fee income
Tax rate percent
Net change
8.601
8.601
Regular DDs
-24.280
-24.280
Regular TDs
14.839
14.839
-94.513
-94.513
Commercial DDs
CDs
Stock pricing factors
Capital adequacy
-0.004
Capital leverage
0.014
Non accruing loans
0.012
Asset growth
-0.003
WOEPS growth
-0.025
Liquidity
0.033
Business development
0.002
Libor Borrowing
0.015
C.B. Borrowing
0.000
Dividend payout ratio
0.004
Dividend cut
0.000
Interest rate risk
0.000
K-factor
1.049
WANOEPS
0.121
WAOEPS
3.695
Stock EPS
3.980
Stock price
Minimum price
111.412
21.727
Instructor's report — Period 2.1, Page
The Stanford Bank Game, Version XI, International
3
Instructor's report — Period 2.1, Page
Decomposition Analysis of Bank Profitability
Bank number
1
SBG
Performance Ratios
Return on Equity
18.48%
18.48%
Return on Assets
1.14%
1.14%
Equity Multiplier
18.79
18.79
Profit Margin
10.31%
10.31%
Asset Utilization
0.1100
0.1100
Net Interest Margin
0.0415
0.0415
Earnings Base
0.9182
0.9182
Spread
0.0036
0.0036
-0.0171
-0.0171
0.5603
0.5603
Burden/Total Assets
Non Int Inc/ Ovrhd Exp
Expense Control: PM Components
Int Exp / Total Rev.
45.58%
45.58%
Average Interest cost of liabilities:
Public Funds
8.00%
8.00%
CD's
8.58%
8.58%
Savings Deposits
7.80%
7.80%
Libor Funds Purchased
8.59%
8.59%
C.B. Borrowing
0.00%
0.00%
Capital Notes
9.45%
9.45%
Liabilities (Percent of Total Assets)
31.62%
31.62%
Commercial
17.08%
17.08%
Consumer
10.49%
10.49%
4.05%
4.05%
59.51%
59.51%
Money Market Savings
35.83%
35.83%
Certificates of Deposit
17.61%
17.61%
Public Funds
31.62%
31.62%
Libor Funds Purchased
1.76%
1.76%
C.B. Borrowing
0.00%
0.00%
Capital Notes
0.78%
0.78%
Other Borrowing
0.79%
0.79%
Int. Bearing Liabs
61.27%
61.27%
5.32%
5.32%
Demand Deposit Accts:
Public Funds
Time Deposit Accts:
Stockholders' Equity
The Stanford Bank Game, Version XI, International
4
Instructor's report — Period 2.1, Page
Decomposition Analysis of Bank Profitability
Bank number
1
SBG
Overhead Expenses (Percent of Total Revenue)
12.74%
12.74%
Occupancy Expenses
3.11%
3.11%
Business Dev. Expense
2.39%
2.39%
Other Oper. Expenses
17.04%
17.04%
Total Oper. Exp.
35.29%
35.29%
5.44%
5.44%
4.34%
4.34%
0.27%
0.27%
Personnel Expense
Current Loan Loss Provision
/ Total Revenue
Income Taxes
/ Total Revenue
Extraordinary gains
/ Total Revenue
Gross Income: AU Components
Interest Income
8.83%
8.83%
9.25%
9.25%
Prime Loans
10.03%
10.03%
High Grade Loans
10.75%
10.75%
Medium Grade Loans
12.07%
12.07%
Real Estate Loans
10.03%
10.03%
Consumer Loans
11.17%
11.17%
Credit Card Rcvbls
10.44%
10.44%
Libor funds sold
0.00%
0.00%
90day Govts.
7.21%
7.21%
Government Notes
7.99%
7.99%
State & Muni bonds
6.13%
6.13%
/ Total Assets
Gross yields on assets:
Syndicated Loans
Noninterest Income (Percent of Total Assets)
2.18%
2.18%
Service Charge Income
0.37%
0.37%
Fees and Other Income
1.80%
1.80%
Pension Income
0.17%
0.17%
Real Estate Income
0.04%
0.04%
Credit Card Income
1.03%
1.03%
Comm. loan fee inc.
0.49%
0.49%
Other Fee Income
1.80%
1.80%
Total Nonint. Inc.
The Stanford Bank Game, Version XI, International
5
Instructor's report — Period 2.1, Page
Decomposition Analysis of Bank Profitability
Bank number
1
SBG
Assets (Percent of Total Assets)
Gross Loans & Mort.
72.69%
72.69%
Syndicated Loans
17.80%
17.80%
Prime Loans
13.18%
13.18%
High Grade Loans
16.37%
16.37%
Medium Loans
11.83%
11.83%
Real Estate Loans
5.70%
5.70%
Consumer Loans
4.30%
4.30%
Credit Card Rcvbls
3.51%
3.51%
Loan Loss Reserve
0.48%
0.48%
Total Inv. Secs.
19.61%
19.61%
90day Govts.
3.46%
3.46%
Govt. Notes
7.81%
7.81%
State & Muni Secs.
8.34%
8.34%
Cash and Due from Banks
7.40%
7.40%
Bank Premises
7.40%
7.40%
Other Assets
0.21%
0.21%
The Stanford Bank Game, Version XI, International
6
Instructor's report — Period 2.1, Page
Decomposition Analysis of Bank Profitability
Bank number
1
SBG
Credit Risk Ratios
Net Loan charge-offs
/ Gross Loans & Mort.
0.80%
0.80%
0.08%
0.08%
53.37%
53.37%
Loan loss reserves
/ Gross Loans & Mort.
Loan loss reserves
/ Nonaccrual loans
Current provision for loan losses
/ Gross Loans & Mort.
0.82%
0.82%
0.00%
0.00%
6.41%
6.41%
3.49%
3.49%
60.87%
60.87%
30.26%
30.26%
18.67%
18.67%
-3.34%
-3.34%
Loans refused
/ Gross Loans & Mort.
Annualized growth in
Gross Loans & Mort.
Annualized growth in
Prov. for loan losses
Liquidity Risk Ratios
Core deposits
/ Total Assets
Volatile liabilities
/ Total Assets
Liquid Assets
/ Total Assets
Net Volatile Assets
/ Total Assets
Securities maturing within one year
/ Total Assets
3.71%
3.71%
72.21%
72.21%
79.24%
79.24%
Net loans and mortgages
/ Total Assets
Net loans and mortgages
/ Total Deposits
The Stanford Bank Game, Version XI, International
7
Instructor's report — Period 2.1, Page
Decomposition Analysis of Bank Profitability
Bank number
1
SBG
Interest Rate Risk
Repriceable Assets / Total Assets:
Within three months
73.48%
73.48%
Within one year
82.94%
82.94%
Repriceable liabilities / Total Assets
Within three months
57.24%
57.24%
Within one year
64.49%
64.49%
Repriceable Gap / Total Assets
Within three months
16.24%
16.24%
Within one year
18.46%
18.46%
5.32%
5.32%
6.34%
6.34%
0.78%
0.78%
25.66%
25.66%
13.83%
13.83%
2.64%
2.64%
1.40%
1.40%
0.34%
0.34%
Capital Risk
Total Equity
/ Total Assets
Total Qualifying Capital
/ Total Assets
Capital Notes
/ Total Assets
Cash Dividends
/ Net Income
Annualized growth
in Total Equity
Annualized growth
in Tot Qual Capital
Operational Risk
Personnel Expense
/ Total Assets
Occupancy Expense
/ Total Assets
Business Development Expense
/ Total Assets
0.26%
0.26%
Total Assets
/ Number of branches
142.857
142.857
130.189
130.189
103.161
103.161
Total Deposits
/ Number of branches
Total Loans
/ Number of branches