Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. Assets Balance Sheet (in thousands) Cash and due from banks Investment securities Repurchase agreements Loans less allowance for losses Fixed assets Other earning assets Liabilities and Equity Total assets Demand deposits NOW accounts Retail CDs Total liabilities Common stock Subordinated debentures Paid-in capital surplus Retained earnings Rate Earned (%) $ 7,700 0 39,000 7 29,000 5 97,000 9 27,000 5,000 0 8 $ 204,700 Rate Paid (%) $ 15,000 86,000 0 4 35,000 6 31,000 7 167,000 20,000 4,700 13,000 Total liabilities and equity $ 204,700 If the bank earns $137,000 in noninterest income, incurs $97,000 in noninterest expenses, and pays $2,670,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.) Net income
Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities. Assets Balance Sheet (in thousands) Cash and due from banks Investment securities Repurchase agreements Loans less allowance for losses Fixed assets Other earning assets Liabilities and Equity Total assets Demand deposits NOW accounts Retail CDs Total liabilities Common stock Subordinated debentures Paid-in capital surplus Retained earnings Rate Earned (%) $ 7,700 0 39,000 7 29,000 5 97,000 9 27,000 5,000 0 8 $ 204,700 Rate Paid (%) $ 15,000 86,000 0 4 35,000 6 31,000 7 167,000 20,000 4,700 13,000 Total liabilities and equity $ 204,700 If the bank earns $137,000 in noninterest income, incurs $97,000 in noninterest expenses, and pays $2,670,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.) Net income
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
Section: Chapter Questions
Problem 1PS
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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.
Assets
Balance Sheet (in thousands)
Cash and due from banks
Investment securities
Repurchase agreements
Loans less allowance for losses
Fixed assets
Other earning assets
Liabilities and Equity
Total assets
Demand deposits
NOW accounts
Retail CDs
Total liabilities
Common stock
Subordinated debentures
Paid-in capital surplus
Retained earnings
Rate Earned (%)
$ 7,700
0
39,000
7
29,000
5
97,000
9
27,000
5,000
0
8
$ 204,700
Rate Paid (%)
$ 15,000
86,000
0
4
35,000
6
31,000
7
167,000
20,000
4,700
13,000
Total liabilities and equity
$ 204,700
If the bank earns $137,000 in noninterest income, incurs $97,000 in noninterest expenses, and pays $2,670,000 in taxes, what is its
net income? (Enter your answer in dollars, not thousands of dollars.)
Net income
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