The financial statements for THE Bank are shown below:

(LG 12-5)

Balance Sheet THE Bank Assets Liabilities and Equity Cash $ 200 Demand deposits $ 2,450 Demand deposits from other FIs 600 Small time deposits 4,800 Investments 1,800 Jumbo CDs 1,425 Federal funds sold 900 Federal funds purchased 1,000 Loans 6,900 Equity 975 Reserve for loan losses (500)

Premises 750 Total Total assets $10,650 liabilities/equity $10,650 Income Statement THE Bank Interest income $2,450 Interest expense 1,630 Provision for loan losses 80 Noninterest income 240 Noninterest expense 410 Taxes 40

a. Calculate THE Bank’s earning assets.

b. Calculate THE Bank’s ROA.

c. Calculate THE Bank’s total operating income.

d. Calculate THE Bank’s spread.

AppendixLO1