Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid...
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Finance
Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities.
| Balance Sheet (in thousands) | |||||||
| Assets | Rate Earned (%) | ||||||
| Cash and due from banks | $ | 6,300 | 0 | ||||
| Investment securities | 25,000 | 9 | |||||
| Repurchase agreements | 15,000 | 7 | |||||
| Loans less allowance for losses | 83,000 | 11 | |||||
| Fixed assets | 13,000 | 0 | |||||
| Other earning assets | 4,700 | 10 | |||||
| Total assets | $ | 147,000 | |||||
| Liabilities and Equity | Rate Paid (%) | ||||||
| Demand deposits | $ | 12,000 | 0 | ||||
| NOW accounts | 72,000 | 6 | |||||
| Retail CDs | 21,000 | 8 | |||||
| Subordinated debentures | 17,000 | 9 | |||||
| Total liabilities | 122,000 | ||||||
| Common stock | 13,000 | ||||||
| Paid-in capital surplus | 3,300 | ||||||
| Retained earnings | 8,700 | ||||||
| Total liabilities and equity | $ | 147,000 | |||||
If the bank earns $123,000 in noninterest income, incurs $83,000 in noninterest expenses, and pays $2,530,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.)
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