On a bank's income statement $($Report of Income$)$ deposit costs are financial inputs. $()2.$ Net loans on a bank's balance sheet are derived by deducting the allowance for loan losses andunearned discounts from gross loans. $()3.$ Most banks report securities gains as a component of their total noninterest income. $()4.$ Loan$-$loss reserves set aside to cover a particular loan or loans expected to be a problem or loans that represent above$-$average risk are known as specific reserves. $()5.$ The experience method of accounting for future loan loss reserves allows a bank to deduct fromtheir income statement up to $0\mathrm{.}6$ percent of their eligible loans. $()$