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a. Calculate the dollar value of MHMs earning assets. b. Calculate the dollar value of MHMs interest-bearing liabilities. c. Calculate MHMs spread. d. Calculate MHM's
a. Calculate the dollar value of MHMs earning assets.
b. Calculate the dollar value of MHMs interest-bearing liabilities.
c. Calculate MHMs spread.
d. Calculate MHM's interest expense ratio.
The financial statements for MHM Bank (MHM) are shown below: Balance Sheet MHM Bank Assets Liabilities and Equity Cash and due from banks Demand deposits at other Fls 10,750 2,050 Demand deposits 10,480 2.400 Small time deposits 7,800 Investments 6,340 Jumbo CDs 3,120 Federal funds purchased Federal funds sold 600 Loans (less reserve for loan losses of 3, 20,320 Other liabilities 3,580 3,420 Premises 2,400 Equity 36,630 Total assets 36,630 Total liabilities/equity Income Statement MHM Bank 4,318 Interest income 2,284 Interest expense 1,400 Provision for loan losses Noninterest income 830 1,105 Noninterest expense Taxes 365Step by Step Solution
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