Question
The financial statements for MHM Bank (MHM) are shown below: Balance Sheet MHM Bank Assets Liabilities and Equity Cash and due from banks $?1,920 Demand
The financial statements for MHM Bank (MHM) are shown below:
Balance Sheet MHM Bank
Assets | Liabilities and Equity | ||
Cash and due from banks | $?1,920 | Demand deposits | $10,620 |
Demand deposits at other FIs | 1,100 | Small time deposits | 10,350 |
Investments | 6,080 | Jumbo CDs | 7,670 |
Federal funds sold | 2,990 | Federal funds purchased | 470 |
Loans (less reserve for loan losses of 2,400) | 20,040 | Other liabilities | 2,000 |
|
| Equity | 3,290 |
Premises | 2,270 |
|
|
| ???? | Total | ???? |
Total assets | $34,400 | liabilities/equity | $34,400 |
Income Statement MHM Bank
Interest income | $4,048 |
Interest expense | 2,024 |
Provision for loan losses | 100 |
Noninterest income | 700 |
Noninterest expense | 975 |
Taxes | 235 |
|
|
| a. Calculate the dollar value of MHM's earning assets.
|
| b. Calculate the dollar value of MHM's interest-bearing liabilities.
|
| c. Calculate MHM's spread. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started