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Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. Rate Earned (%) 0 8 6 10
Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. Rate Earned (%) 0 8 6 10 0 9 Balance Sheet (in thousands) Assets Cash and due from banks $ 8,000 Investment securities 42,000 Repurchase agreements 32,000 Loans less allowance for losses 100,000 Fixed assets 30,000 Other earning assets 5,000 Total assets $217,000 Liabilities and Equity Demand deposits $ 18,000 NOW accounts 89,000 Retail CDs 38,000 Subordinated debentures 34,000 Total liabilities 179,000 Common stock 23,000 Paid-in capital surplus 5,000 Retained earnings 10,000 Total liabilities and equity $217,000 Rate Paid (%) 0 5 7 8 If the bank earns $140,000 in noninterest income, incurs $100,000 in noninterest expenses, and pays $2,700,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.) Net income
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