1. Sources and Uses: (Historical)

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

3. Basics of Sources and Uses S ( + ) U ( - ) A L A L

4. Bank Sources and Uses Sources: Sell Securities, Loans Repaid, Close Branches, Get Deposits, Issue Capital Sources: Sell Securities, Loans Repaid, Close Branches, Get Deposits, Issue Capital Uses: Buy Securities, Make Loans, Build Branches, Lose Deposits, Payoff Capital Uses: Buy Securities, Make Loans, Build Branches, Lose Deposits, Payoff Capital

5. Historical Sources and Uses: What Happened? Take this period’s balance sheet and subtract last period’s balance sheet, account by account. Take this period’s balance sheet and subtract last period’s balance sheet, account by account. Sign Sources (+), Uses (-) Sign Sources (+), Uses (-) Catalog: Catalog: Supply of Funds accounts (Deposits, Security Sales and Maturity, Loans by Bank…) Supply of Funds accounts (Deposits, Security Sales and Maturity, Loans by Bank…) Usage of Funds accounts (Loans, Investments, New Buildings) Usage of Funds accounts (Loans, Investments, New Buildings)

6. Asset Differences 1.41.3ChangeS/U Cash359.254375.696-16.44216.442 FF Sold088.776-88.77688.776 T-Bills260204.34555.655-55.655 T-Notes384.892320.02464.868-64.868 Muni's406.29356.09950.191-50.191 Total securities1051.182880.468170.714-170.714

7. Asset Differences Resources1.41.3ChangeS/U Loans3472.5573444.47928.078-28.078 Prov for LL22.95122.6830.268***0.268 Premises - Dep26.92126.1850.736-0.736 Other assets10.45710.77-0.3130.313 Total resources4897.4194803.69393.726-93.726

8. Liab & O/E Differences Resources1.41.3ChangeS/U Demand deposits1551.7051588.917-37.212 Time deposits2951.7982883.28968.509+68.509 Total deposits4503.5034472.20631.297+31.297 Federal funds purchased54.9330 +54.933 Funds from FRB0000 Dividend payable3.3 00 Accrued taxes7.7919.399-1.608 Other liabilities39.5739.440.13 Total liabilities4609.0974524.34584.752+84.752

9. Liab & O/E Differences Resources1.41.3ChangeS/U Capital notes38.45739.077-0.62 Common stock30 00 Surplus48.519 00 Retained Earnings171.346161.7529.594+9.594 Total equity *249.865240.2719.594+9.594 Total Liab & Cap4897.4194803.69393.726+93.726

10. Aggregated S&U S (+)U ( - ) Actual QTR.#_1.4_ Results Supply of FundsUsage of Funds Net Securities Change-170.714 Deposits -37.212Loans-28.078 Savings +68.509Prov for LL 0.268 Subtotal +31.297Subtotal-198.524 FF Purch+54.933FF Sold+88.776 Dividend payable0Premises-0.736 Accrued taxes-1.608Other Assets+0.313 Other liabilities+0.130Cash+16.442 Capital Notes-0.620 Retained Earnings+9.594 Total+93.726Total-93.729

11. Y1Q4 Interpretation (Look for the BIG numbers!) Funds came from larger Savings increases over Demand Deposit losses, along with Loans from other Banks (FF Purch) and past Earnings Funds came from larger Savings increases over Demand Deposit losses, along with Loans from other Banks (FF Purch) and past Earnings Funds went to net increases in securities and Loans over decreases in Loans to other Banks (FF Sold) and a decrease in the Cash account. Funds went to net increases in securities and Loans over decreases in Loans to other Banks (FF Sold) and a decrease in the Cash account.

12. Your Assignment (Assignment #1) Produce an Aggregated Supply and Usage for Y2Q1 Produce an Aggregated Supply and Usage for Y2Q1 Y2Q1Output.pdf (Cut and Paste to Excel !!!) Class Webpage; April 16 th Entry Write a short commentary concerning where funds are coming from and going to. Write a short commentary concerning where funds are coming from and going to.