Sources and Uses:Sources and Uses:(Historical)(Historical)

Sources and UsesSources and Uses Stmts End Yr. 1 Qtr. 4

Basics of Sources and UsesBasics of Sources and UsesS ( + ) U ( - )

A

L

A

L

Bank Sources and UsesBank Sources and Uses Sources: Sell Securities, Loans Sources: Sell Securities, Loans

Repaid, Repaid, Close Branches, Get Close Branches, Get Deposits, Deposits, Issue CapitalIssue Capital

Uses: Buy Securities, Make Loans, Uses: Buy Securities, Make Loans, Build Build Branches, Lose Deposits, Branches, Lose Deposits, Payoff CapitalPayoff Capital

Historical Sources and Uses:Historical Sources and Uses:What Happened?What Happened?

Take this period’s balance sheet and Take this period’s balance sheet and subtract last period’s balance sheet, subtract last period’s balance sheet, account by account.account by account.

Sign Sources (+), Uses (-)Sign Sources (+), Uses (-) Catalog:Catalog:

Supply of Funds accounts (Deposits, Supply of Funds accounts (Deposits, Security Sales and Maturity, Loans by Security Sales and Maturity, Loans by Bank…)Bank…)

Usage of Funds accounts (Loans, Usage of Funds accounts (Loans, Investments, New Buildings)Investments, New Buildings)

Asset DifferencesAsset Differences

1.4 1.3 Change S/U

Cash 359.254 375.696 -16.442 16.442

FF Sold 0 88.776 -88.776 88.776

T-Bills 260 204.345 55.655 -55.655

T-Notes 384.892 320.024 64.868 -64.868

Muni's 406.29 356.099 50.191 -50.191

Total securities 1051.182 880.468 170.714 -170.714

Asset DifferencesAsset Differences

Resources 1.4 1.3 Change S/U

Loans 3472.557 3444.479 28.078 -28.078

Prov for LL 22.951 22.683 0.268 ***0.268

Premises - Dep 26.921 26.185 0.736 -0.736

Other assets 10.457 10.77 -0.313 0.313

Total resources 4897.419 4803.693 93.726 -93.726

Liab & O/E DifferencesLiab & O/E DifferencesResources 1.4 1.3 Change S/UDemand deposits 1551.705 1588.917 -37.212 -37.212Time deposits 2951.798 2883.289 68.509 +68.509Total deposits 4503.503 4472.206 31.297 +31.297Federal funds purchased 54.933 0 54.933 +54.933Funds from FRB 0 0 0 0Dividend payable 3.3 3.3 0 0Accrued taxes 7.791 9.399 -1.608 -1.608Other liabilities 39.57 39.44 0.13 0.13Total liabilities 4609.097 4524.345 84.752 +84.752

Liab & O/E DifferencesLiab & O/E DifferencesResources 1.4 1.3 Change S/UCapital notes 38.457 39.077 -0.62 -0.62Common stock 30 30 0 0Surplus 48.519 48.519 0 0Retained Earnings 171.346 161.752 9.594 +9.594Total equity * 249.865 240.271 9.594 +9.594Total Liab & Cap 4897.419 4803.693 93.726 +93.726

Aggregated Aggregated S&US&U S (+) U ( - )

Actual Actual

QTR.#_1.4_ Results Results

Supply of Funds Usage of FundsNet Securities

Change -170.714Deposits -37.212 Loans -28.078Savings +68.509 Prov for LL 0.268Subtotal +31.297 Subtotal -198.524FF Purch +54.933 FF Sold +88.776Dividend payable 0 Premises -0.736Accrued taxes -1.608 Other Assets +0.313Other liabilities +0.130 Cash +16.442Capital Notes -0.620Retained Earnings +9.594 Total +93.726 Total -93.729

Y1Q4 InterpretationY1Q4 Interpretation(Look for the BIG numbers!)(Look for the BIG numbers!)

Funds came from larger Savings Funds came from larger Savings increases over Demand Deposit increases over Demand Deposit losses, along with Loans from other losses, along with Loans from other Banks (FF Purch) and past EarningsBanks (FF Purch) and past Earnings

Funds went to net increases in Funds went to net increases in securities and Loans over decreases securities and Loans over decreases in Loans to other Banks (FF Sold) and in Loans to other Banks (FF Sold) and a decrease in the Cash account.a decrease in the Cash account.

Your AssignmentYour Assignment(Assignment #1)(Assignment #1)

Produce an Aggregated Supply and Produce an Aggregated Supply and Usage for Y2Q1Usage for Y2Q1 Y2Q1Output.pdf (Cut and Paste to

Excel !!!) Class Webpage; April 16th Entry

Write a short commentary Write a short commentary concerning where funds are coming concerning where funds are coming from and going to.from and going to.