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Problem 12-7 (LG 12-5) The financial statements for THE Bank are...

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Finance

Problem 12-7 (LG 12-5)

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 Banks earning assets.

THE Banks earning assets $

b.

Calculate THE Banks ROA. (Round your answer to 3 decimal places. (e.g., 32.161))

THE Banks ROA %

c.

Calculate THE Banks total operating income.

THE Banks total operating income $

d.

Calculate THE Banks spread. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

THE Banks spread %

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