Starting Bank - A Blank Slate

We’re starting with a newly formed bank.  The balance sheet is simple and very liquid, with $2,000 in assets, mostly sitting in investments.  We haven’t made any loans yet, so there’s no credit risk and no real earnings.  As a result, the bank is currently unprofitable, with net income at negative $44.

Capital is high, liquidity is extremely high, and rate risk is minimal.

At this stage, the bank is safe—but it’s not really operating as a bank yet.  The opportunity is to start putting this balance sheet to work.