Problem 12-8 (LG 12-5) Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. Balance Sheet (in thousands) Rate Earned (%) Assets $ 6,900 Cash and due from banks Investment securities 31,000 9 Repurchase agreements 21,000 7 Loans less allowance for losses 89,000 11 Fixed assets 19,000 0 5,100 Other earning assets 10 $172,000 Total assets Liabilities and Equity Rate Paid (%) $ 18,000 Demand deposits 78,000 27,000 6 NOW accounts Retail CDs 8 Subordinated debentures 23,000 Total liabilities 146,000 Common stock 19,000 Paid-in capital surplus Retained earnings 3,900 3,100 Total liabilities and equity $172,000 If the bank earns $129,000 in noninterest income, incurs $89,000 in noninterest expenses, and pays $2,590,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.) Net income