54 Desert Bank Balance Sheet Liabilities & Equity Assets (millions) (millions) Demand Cash 26 Deposits Now Securities 38 Accounts Loans 90 CDs Reserve for Loan Loss (2) Capital Total Total Assets Liabilities & 152 Equity 38 37 23 152 Desert Bank Income Statement (millions) Interest Income 6.88 Interest Expense 2.19 Provision for Loan Loss 1.15 Non Interest Income 3.44 Non Interest Expense 4.48 Taxes 0.75 Net Income 1.75 Desert Bank Income Statement (millions) Interest Income 6.88 Interest Expense 2.19 Provision for Loan Loss 1.15 Non Interest Income 3.44 Non Interest Expense 4.48 Taxes 0.75 Net Income 1.75 What is the net interest margin for Desert Bank? 0 3.72% O 5.46% O 2.81% O 3.09%