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) Assets Rate Earned (%) 8 Cash and due from banks Investment securities $ 7,900 41,000 7 Repurchase agreements 31,000 5 Loans less allowance for losses 99,000 9 Fixed assets 29,000 8 Other earning assets 5,000 8 Total assets $ 212,900 Liabilities and Equity Rate Paid (%) Demand deposits $ 17,000 8 NOW accounts 88,000 4 Retail CDs 37,000 6 Subordinated debentures 33,000 7 Total liabilities 175,000 Common stock 22,000 Paid-in capital surplus 4,900 Retained earnings 11,000 Total liabilities and equity $ 212,900 If the bank earns $139,000 in noninterest income, incurs $99,000 in noninterest expenses, and pays $2,690,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.) Net income