Q#1

TMC Bank has the following balance sheet, rates earned on its assets and rates paid on its liabilities:

Balance sheet (in thousands)
Assets		Rate earned (%)
Cash and due from banks	$32,400	0
Investment securities	82,800	8
Repurchase agreements	7,200	5
Loans less allowance for losses	201,600	10
Fixed assets	14,400	0
Other earning assets	21,600	7
Total assets	$360,000
Liabilities & Equity		Rate paid (%)
Demand deposits	$90,000	0
NOW accounts	126,000	1
Retail CDs	64,800	4
Sub-ordinated dentures	43,200	9
Total liabilities	324,000
Common stock	12,000
Paid-in-capital surplus	6,800
Retained earnings	17,200
Total liabilities & equity	360,000

If the bank earns $420,000 in non-interest income, incurs $382,000 in non-interest expense, and pays $296,000 in taxes, what is its net income? (notice that the numbers on the balance sheet are in thousand dollars while non-interest income, non-interest expense and taxes are the actual amounts.) (6 points)