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The financial statements for THE Bank are shown below: |
| Balance Sheet THE Bank | |||||
| Assets | Liabilities and Equity | ||||
| Cash | $ | 200 | Demand deposits | $ | 2,450 |
| Demand deposits from other FIs | 600 | Small time deposits | 4,800 | ||
| Investments | 1,800 | Jumbo CDs | 1,425 | ||
| Federal funds sold | 900 | Federal funds purchased | 1,000 | ||
| Loans | 6,900 | Equity | 975 | ||
| Reserve for loan losses | (500) | ||||
| Premises | 750 | ||||
| Total assets | $ | 10,650 | Total liabilities/equity | $ | 10,650 |
| Income Statement THE Bank | |
| Interest income | $ 2,450 |
| Interest expense | 1,630 |
| Provision for loan losses | 80 |
| Noninterest income | 240 |
| Noninterest expense | 410 |
| Taxes | 40 |
| 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 | % |
