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The following information is for Rainbow National Bank: Interest income Interest expense Total assets. Securities losses or gains. Earning assets 40,000.00 Total liabilities 38,000.00

The following information is for Rainbow National Bank: Interest income Interest expense Total assets. Securities losses or gains. Earning assets 40,000.00 Total liabilities 38,000.00 Taxes paid 16.00 Shares of common stock outstanding 5,000 Noninterest income $800.00 Noninterest expense 900.00 Provision for loan losses 250.00 a. Please calculate: ROE ROA Net interest margin Earnings per share $2,250.00 1,500.00 45,000.00 21.00 Net noninterest margin Net operating margin b. Suppose interest income, interest expenses, noninterest income, and noninterest expenses each increase by 3 percent while all other revenue and expense items shown in the preceding table remain unchanged. What will happen to Rainbow ROE, ROA, and earnings per share?

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