The management at Sage National Bank located in Key West,
Florida, is calculating the key capital adequacy ratios for its
third-quarter reports. At quarter-end, the bank’s total assets are
$90 million and its total risk-weighted assets including
off-balance-sheet items are $80 million. Tier 1 capital items sum
to $4 million, while Tier 2 capital items total $2.5 million.
Calculate Sage National’s leverage ratio, total capital-to-total
assets, core capital-to-total risk-weighted assets, and total
capital-to-total risk-weighted assets. Does Sage National meet the...