1. The following balance sheet items and income statement information is provided to you for a different bank ($ millions)

Assets Liabilities

Cash 8,000 Checking deposits 25,000

Deposits due from banks 1,000 Saving deposits 40,000

Net loans 75,000 Time deposits 50,000

Investment securities 25,000 Total equity 12.000

Federal funds purchased 2,500

Income Statement

Interest income on loans $7,175

Interest paid on deposits 4,950

Noninterest income 1,500

Total noninterest expense 3,000

Calculate the following:

Earnings spread (20 points)