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

Assets Liabilities

Cash 10,000 Checking deposits 25,000

Due from banks 2,000 Saving deposits 50,000

Net loans 90,000 Time deposits 65,000

Investment securities 30,000 Federal funds purchased 5,000

Fixed assets 15,000 Total equity capital 15.000

Income Statement

Interest income on loans $7,200

Interest paid on deposits 4,800

Noninterest income 2,000

Total noninterest expense 3,500

Calculate the following:

Earnings spread (20 points)