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The financial statements for THE Bank are shown below: Balance Sheet THE Bank Assets Liabilities and Equity Cash $ 360 Demand deposits $ 2,610 Demand
The financial statements for THE Bank are shown below:
Balance Sheet THE Bank | |||||
Assets | Liabilities and Equity | ||||
Cash | $ | 360 | Demand deposits | $ | 2,610 |
Demand deposits from other FIs | 760 | Small time deposits | 4,960 | ||
Investments | 1,960 | Jumbo CDs | 1,585 | ||
Federal funds sold | 1,060 | Federal funds purchased | 1,160 | ||
Loans | 6,960 | Equity | 695 | ||
Reserve for loan losses | (1,000) | ||||
Premises | 910 | ||||
Total assets | $ | 11,010 | Total liabilities/equity | $ | 11,010 |
Income Statement THE Bank | |
Interest income | $ 2,520 |
Interest expense | 1,790 |
Provision for loan losses | 100 |
Noninterest income | 400 |
Noninterest expense | 490 |
Taxes | 80 |
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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