The financial statements for MHM Bank (MHM) are shown below Balance Sheet MHM Bank Assets Liabilities and Equity Cash and due from banks $ 1,960 Demand deposits $ 10,660 Demand deposits at other FIs 1,500 Small time deposits 10,390 Investments 6,150 Jumbo CDs 7,710 Federal funds sold 3,030 Federal funds purchased 510 Loans (less reserve for loan losses of 2,800) 20,130 Other liabilities 2,480 Premises 2,310 Equity 3,330 Total assets $ 35,080 Total liabilities equity $ 35,080 Income Statement MHM Bank Interest income $ 4,128 Interest expense 2,104 Provision for loan losses 500 Noninterest income 740 Noninterest expense 1,015 Taxes 275 a Calculate the dollar value of MHMs earning assets b Calculate the dollar value of MHMs interest bearing liabilities c Calculate MHMs spread (Do not round intermediate calculations Round your answer to 3 decimal places (e g , 32 161)) d Calculate MHMs interest expense ratio (Round your answer to 3 decimal places (e g , 32 161))

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Posted on Oct 07, 2024

The financial statements for MHM Bank (MHM) are shown below: Balance Sheet MHM Bank Assets Liabilities and Equity Cash and due from banks $ 1,960

The financial statements for MHM Bank (MHM) are shown below:

Balance Sheet MHM Bank
Assets			Liabilities and Equity
Cash and due from banks	$	1,960	Demand deposits	$	10,660
Demand deposits at other FIs		1,500	Small time deposits		10,390
Investments		6,150	Jumbo CDs		7,710
Federal funds sold		3,030	Federal funds purchased		510
Loans (less reserve for loan losses of 2,800)		20,130	Other liabilities		2,480
Premises		2,310	Equity		3,330
Total assets	$	35,080	Total liabilities/equity	$	35,080

Income Statement MHM Bank
Interest income	$	4,128
Interest expense		2,104
Provision for loan losses		500
Noninterest income		740
Noninterest expense		1,015
Taxes		275

a. Calculate the dollar value of MHMs earning assets. b. Calculate the dollar value of MHMs interest-bearing liabilities. c. Calculate MHMs spread. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) d. Calculate MHMs interest expense ratio. (Round your answer to 3 decimal places. (e.g., 32.161))