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The financial statements for THE Bank are shown below: Balance Sheet THE Bank Assets Liabilities and Equity Cash $ 220 Demand deposits $ 2,470 Demand
The financial statements for THE Bank are shown below:
Balance Sheet THE Bank | |||||
Assets | Liabilities and Equity | ||||
Cash | $ | 220 | Demand deposits | $ | 2,470 |
Demand deposits from other FIs | 620 | Small time deposits | 4,820 | ||
Investments | 1,820 | Jumbo CDs | 1,445 | ||
Federal funds sold | 920 | Federal funds purchased | 1,020 | ||
Loans | 6,920 | Equity | 815 | ||
Reserve for loan losses | (700) | ||||
Premises | 770 | ||||
Total assets | $ | 10,570 | Total liabilities/equity | $ | 10,570 |
Income Statement THE Bank | |
Interest income | $ 2,470 |
Interest expense | 1,650 |
Provision for loan losses | 100 |
Noninterest income | 260 |
Noninterest expense | 430 |
Taxes | 60 |
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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