The financial statements for First National Bank (FNB) are shown below:

Balance Sheet First National Bank

Assets

Liabilities and Equity

Cash

$450

Demand Deposits

$5,510

Demand Deposits from Other FIs

$1,350

Small Time Deposits

$10,800

Investments

$4,050

Jumbo CDs

$3,200

Federal Funds Sold

$2,025

Federal Funds Purchased

$2,250

Loans

$15,525

Equity

$2,200

Reserve for Loan Losses

-$1,125

Premises

$1,685

Total Assets

$23,960

Total Liabilities / Equity

$23,960

Income Statement First National Bank

Interest Income

$2,600

Interest Expense

$1,650

Provision for Loan Losses

$180

Noninterest Income

$140

Noninterest Expense

$420

Taxes

$90

a. Calculate the dollar value of FNB's earning assets.

b. Calculate FNB's ROA.

c. Calculate FNB's asset utilization ratio.

d. Calculate FNB's spread.

a. Earning assets = investment securities + net loans = $4,050 + $2,025 + $15,525 - $1,125 = $20,475

b. ROA = ($2,600 - $1,650 - $180 + $140 - $420 - $90)/$23,960 = 1.67%

c. Asset utilization = ($2,600 + $140)/$23,960 = 11.44%

d. Spread = ($2,600/$20,475) - ($1,650/($10,800 + $3,200 + $2,250)) = 2.54%

Problem 4

The financial statements for BSW National Bank (BSWNB) are shown below:

I having difficulty with the spread /Problem D , how do i calculate it the Numbers are there but i don't know where they are extracted from . Need help asap