Smallville Bank has the following balance sheet, rates earned on its ossets, and rates paid on its liabilities Rate Earned (%) 8 6 10 9 Balance Sheet (in thousands) Assets Cash and due from banks $ 6,500 Investment securities 27,000 Repurchase agreements 17,900 Loans less allowance for losses 85,000 Fixed assets 15,000 Other earning assets 5,000 Total assets $155,500 Liabilities and Equity Demand deposits $ 14,000 NOW accounts 74,000 Retail cos 23,000 Subordinated debentures 19,000 Total liabilities 130,000 Common stock 15,000 Paid in capital surplus 3,500 Retained earnings 7.000 Total liabilities and equity $155,500 Rate Paid (2) 5 If the bank earns $125,000 in noninterest income, Incurs $85.000 in noninterest expenses, and pays $2,550 000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.) Net Income