Community Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. (LG 12-4)

Balance Sheet (in thousands)

Assets Rate Earned

(%)

Cash and due from banks $ 7,900 0 Investment securities 29,600 1.50 Repurchase agreements 15,960 1.15 Loans less allowance for losses 106,400 7.25 Fixed assets 13,500 0 Other assets 5,320 0 Total assets $178,680 Liabilities and Equity Rate Paid

(%)

Demand deposits $ 27,490 0 NOW accounts 90,700 0.50 Retail CDs 23,940 1.20 Subordinated debentures 15,000 5.50 Total liabilities 157,130 Common stock 5,000 Paid-in capital surplus 5,000 Retained earnings 11,550 Total liabilities and equity $178,680 If the bank earns $159,000 in noninterest income, incurs $306,000 in noninterest expenses, and pays $3,320,000 in taxes, what is its net income?

AppendixLO1