4. The latest report of condition and income and expense statement for Smiling Mer- chants National Bank are as shown in the following tables: Smiling Merchants National Bank Income and Expense Statement (Report of Income) $50 Interest and fees on loans Interest and dividends on securities Total interest income 6 40 6. 5 20 10* 5 Interest paid on deposits Interest paid on nondeposit borrowings Total interest expense Net interest income Provision for loan losses Noninterest income and fees Noninterest expenses: Salaries and employee benefits Overhead expenses Other noninterest expenses Total noninterest expenses Pretax operating income Securities gains (or losses) Pretax net operating income Taxes Net operating income Net extraordinary items Net income 2 2 2 (-1) *Note: the bank currently has 40 FTE employees. Smiling Merchants National Bank Report of Condition Assets Cash and deposits due from banks Investment securities Federal funds sold Net loans (Allowance for loan losses = 25) (Unearned income on loans = 5) Net Fixed Assets Total assets $100 150 10 700 $190 180 470 80 920 Liabilities Demand deposits Savings deposits Time deposits Federal funds purchased Total liabilities Equity capital Common stock Surplus Retained earnings Total capital Interest-bearing deposits 50 980 20 35 35 90 650 Total earning assets 860 Fill in the missing items on the income and expense statement. Using these state- ments, calculate the following performance measures: ROE Asset utilization ROA Net interest margin Net noninterest margin Net operating margin Earnings spread Net profit margin Equity multiplier Tax management efficiency Expense control efficiency Asset management efficiency Funds management efficiency Operating efficiency ratio What strengths and weaknesses are you able to detect in Happy Merchants' performance