Calculate the bank total operating income

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Reference no: EM131993994

The financial statements for THE Bank are shown below:

Balance Sheet THE Bank

Assets Liabilities and Equity

Cash $ 340 Demand deposits $ 2,590

Demand deposits from other FIs 740 Small time deposits 4,940

Investments 1,940 Jumbo CDs 1,565

Federal funds sold 1,040 Federal funds purchased 1,140

Loans 7,040 Equity 955

Reserve for loan losses (800)

Premises 890

Total assets $ 11,190 Total liabilities/equity $ 11,190

Income Statement THE Bank

Interest income $ 2,550

Interest expense 1,770

Provision for loan losses 130

Noninterest income 380

Noninterest expense 470

Taxes 60

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: EM131993994

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