Determining the net income

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Reference no: EM133074176

A Small Bank has the following Balance Sheet, rates earned on assets, and rates paid on its liabilities.

Rates earned %

Assets

Amount

Liabilities and Equity

Amount

Rates paid %

0

Cash and Due from Banks

6,000,000

Demand Deposits

9,000,000

0

8

Investment Securities

22,000,000

NOW Accounts

69,000,000

5

6

Repurchase Agreements

12,000,000

Retail CDs

18,000,000

7

10

Loans less Allowance for Losses

80,000,000

Subordinated Debentures

14,000,000

8

0

Fixed Assets

10,000,000

Total Liabilities

110,000,000

 

9

Other Earning Assets

4,000,000

Common Stock

10,000,000

 

 

 

 

Paid in Capital Surplus

3,000,000

 

 

 

 

Retained Earnings

11,000,000

 

 

 

 

 

 

 

 

Total Assets

$134,000,000

Total Liabilities & Equity

134,000,000

 

If the bank earns $120,000 in non-interest income, incurs $80,000 in non-interest expense, and pays $2,500,000 in taxes, what is its net income?

Reference no: EM133074176

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