What is the one-year repricing gap


Problem

Assets

$25 million C&I loans interest rate = base-rate = short-term treasury (currently 0%) + 1% credit spread
$75 million of 30-year treasuries yielding 2%.

Liabilities

$10 million equity capital + $80 million 1-year insured CDs paying 0% + $10 million 2 year uninsured CDs paying 1%

What is the 1-year repricing gap?

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Finance Basics: What is the one-year repricing gap
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