The financial statements for MHM Bank (MHM) are shown below:
Balance Sheet MHM Bank
Assets Liabilities and Equity
Cash and due from banks $ 2,060 Demand deposits $ 10,760
Demand deposits at other FIs 2,500 Small time deposits 10,490
Investments 6,350 Jumbo CDs 7,810
Federal funds sold 3,130 Federal funds purchased 610
Loans (less reserve for loan losses of 3,800) 20,330 Other liabilities 3,680
Premises 2,410 Equity 3,430
Total assets $ 36,780 Total liabilities/equity $ 36,780
Income Statement MHM Bank
Interest income $ 4,338
Interest expense 2,294
Provision for loan losses 1,500
Noninterest income 840
Noninterest expense 1,115
Taxes 375
a. Calculate the dollar value of MHM’s earning assets.
MHM’s earning assets $
b. Calculate the dollar value of MHM’s interest-bearing liabilities.
MHM’s interest-bearing liabilities $
c. Calculate MHM’s spread. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))
MHM’s spread %
d. Calculate MHM’s interest expense ratio. (Round your answer to 3 decimal places. (e.g., 32.161))
MHM’s interest expense ratio %