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Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. Rate Earned (8) 9 7 11 0
Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. Rate Earned (8) 9 7 11 0 10 Balance Sheet (in thousands) Assets Cash and due from banks $ 6,300 Investment securities 25,000 Repurchase agreements 15,000 Loans less allowance for losses 83,000 Fixed assets 13,000 Other earning assets 4,700 Total assets $ 147,000 Liabilities and Equity Demand deposits $ 12,000 NOW accounts 72,000 Retail CDs 21,000 Subordinated debentures 17,000 Total liabilities 122,000 Common stock 13,000 Paid-in capital surplus 3,300 Retained earnings 8,700 Total liabilities and equity $ 147,000 Rate Paid ($) 0 6 B 9 f the bank earns $123,000 in noninterest income, incurs $83,000 in noninterest expenses, and pays $2,530,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.) Net income $ 5,410,000
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