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The financial statements for THE Bank are shown below: Balance Sheet THE Bank Assets Liabilities and Equity Cash $ 380 Demand deposits $ 2,630 Demand
The financial statements for THE Bank are shown below: |
Balance Sheet THE Bank | |||||
Assets | Liabilities and Equity | ||||
Cash | $ | 380 | Demand deposits | $ | 2,630 |
Demand deposits from other FIs | 780 | Small time deposits | 4,980 | ||
Investments | 1,980 | Jumbo CDs | 1,605 | ||
Federal funds sold | 1,080 | Federal funds purchased | 1,180 | ||
Loans | 6,580 | Equity | 835 | ||
Reserve for loan losses | (500) | ||||
Premises | 930 | ||||
Total assets | $ | 11,230 | Total liabilities/equity | $ | 11,230 |
Income Statement THE Bank | |
Interest income | $ 2,540 |
Interest expense | 1,810 |
Provision for loan losses | 100 |
Noninterest income | 420 |
Noninterest expense | 510 |
Taxes | 40 |
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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