Question
The financial statements for THE Bank are shown below: Balance Sheet THE Bank Assets Liabilities and Equity Cash $ 350 Demand deposits $ 2,600 Demand
The financial statements for THE Bank are shown below: Balance Sheet THE Bank Assets Liabilities and Equity Cash $ 350 Demand deposits $ 2,600 Demand deposits from other FIs 750 Small time deposits 4,950 Investments 1,950 Jumbo CDs 1,575 Federal funds sold 1,050 Federal funds purchased 1,150 Loans 7,050 Equity 875 Reserve for loan losses (900) Premises 900 Total assets $ 11,150 Total liabilities/equity $ 11,150 Income Statement THE Bank Interest income $ 2,560 Interest expense 1,780 Provision for loan losses 140 Noninterest income 390 Noninterest expense 480 Taxes 70 a. Calculate THE Banks earning assets. THE Banks earning assets $ b. Calculate THE Banks ROA. (Round your answer to 3 decimal places. (e.g., 32.161)) THE Banks ROA % c. Calculate THE Banks total operating income. THE Banks total operating income $ d. Calculate THE Banks spread. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) THE Banks spread %
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