The financial statements for THE Bank are shown below:
Balance Sheet THE Bank
Assets Liabilities and Equity
Cash $ 340 Demand deposits $ 2,590
Demand deposits from other FIs 740 Small time deposits 4,940
Investments 1,940 Jumbo CDs 1,565
Federal funds sold 1,040 Federal funds purchased 1,140
Loans 7,040 Equity 955
Reserve for loan losses (800)
Premises 890
Total assets $ 11,190 Total liabilities/equity $ 11,190
Income Statement THE Bank
Interest income $ 2,550
Interest expense 1,770
Provision for loan losses 130
Noninterest income 380
Noninterest expense 470
Taxes 60
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 %