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 $ 6,400 0 Investment securities 26, 000 9 Repurchase agreements 16,000 7 Loans less allowance for losses 84,000 11 Fixed assets 14,000 0 Other earning assets 4, 600 10 Total assets $ 151,000 Liabilities and Equity Rate Paid (%) Demand deposits $13,000 0 NOW accounts 73,000 6 Retail CDs 22,000 8 Subordinated debentures 18, 000 9 Total liabilities 126,000 Common stock 14,000 Paid - in capital surplus 3,400 Retained earnings 7,600 Total liabilities and equity $ 151,000 If the bank earns $124,000 in noninterest income, incurs $84,000 in noninterest expenses, and pays $2,540,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.)
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 $ 6,400 0 Investment securities 26, 000 9 Repurchase agreements 16,000 7 Loans less allowance for losses 84,000 11 Fixed assets 14,000 0 Other earning assets 4, 600 10 Total assets $ 151,000 Liabilities and Equity Rate Paid (%) Demand deposits $13,000 0 NOW accounts 73,000 6 Retail CDs 22,000 8 Subordinated debentures 18, 000 9 Total liabilities 126,000 Common stock 14,000 Paid - in capital surplus 3,400 Retained earnings 7,600 Total liabilities and equity $ 151,000 If the bank earns $124,000 in noninterest income, incurs $84,000 in noninterest expenses, and pays $2,540,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Transcribed Image Text: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, 400 0
Investment securities 26, 000 9 Repurchase agreements 16,000 7 Loans less allowance for losses 84,000 11 Fixed assets 14, 000 0 Other earning assets 4, 600 10 Total assets $ 151,000 Liabilities and
Equity Rate Paid (%) Demand deposits $ 13,000 0 NOW accounts 73, 000 6 Retail CDs 22,000 8 Subordinated debentures 18, 000 9 Total liabilities 126,000 Common stock 14, 000 Paid - in capital
surplus 3,400 Retained earnings 7,600 Total liabilities and equity $ 151, 000 If the bank earns $124,000 in noninterest income, incurs $84,000 in noninterest expenses, and pays $2,540,000 in taxes,
what is its net income? (Enter your answer in dollars, not thousands of dollars.)
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