Question

For the last fiscal period, Cicharment Bank reported non-interest income of $148 thousand, non-interest expenses of $282 thousand and avergae total assets of $1753 thousand. What is the bank's burden ratio? Submit your final answer as a percentage rounded to two decimal places (Ex. 0.00% )

Answer 1

The burden ratio for Cicharment Bank, given the non-interest income of $148 thousand and non-interest expenses of $282 thousand against average total assets of $1753 thousand, is 7.64%.

Step-by-step explanation:

The burden ratio of a bank is calculated by subtracting the non-interest income from the non-interest expenses and then dividing by the average total assets. The formula for the burden ratio is (Non-Interest Expenses - Non-Interest Income) / Average Total Assets. For Cicharment Bank, which reported non-interest income of $148 thousand, non-interest expenses of $282 thousand, and average total assets of $1753 thousand, the burden ratio can be calculated as follows:

(282 - 148) / 1753 = 134 / 1753 ≈ 0.07644

Converting 0.07644 to a percentage and rounding to two decimal places yields a burden ratio of 7.64%.