Calculate the bank spread and earning assets

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Reference no: EM132037198

The financial statements for THE Bank are shown below: Balance Sheet THE Bank Assets Liabilities and Equity Cash $ 290 Demand deposits $ 2,540 Demand deposits from other FIs 690 Small time deposits 4,890 Investments 1,890 Jumbo CDs 1,515 Federal funds sold 990 Federal funds purchased 1,090 Loans 6,990 Equity 955 Reserve for loan losses (700) Premises 840 Total assets $ 10,990 Total liabilities/equity $ 10,990 Income Statement THE Bank Interest income $ 2,500 Interest expense 1,720 Provision for loan losses 80 Noninterest income 330 Noninterest expense 500 Taxes 70 a. Calculate THE Bank’s earning assets. THE Bank’s earning assets $ b. Calculate THE Bank’s ROA. (Round your answer to 3 decimal places. (e.g., 32.161)) THE Bank’s ROA % c. Calculate THE Bank’s total operating income. THE Bank’s total operating income $ d. Calculate THE Bank’s spread. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) THE Bank’s spread

Reference no: EM132037198

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