The financial statements for MHM Bank (MHM) are shown below: Calculate the dolla

Question

The financial statements for MHM Bank (MHM) are shown below:

Calculate the dollar value of MHM

Balance Sheet MHM Bank Assets Liabilities and Equity   Cash and due from banks $ 1,980   Demand deposits $ 10,680   Demand deposits at other FIs 1,700   Small time deposits 10,410   Investments 6,200   Jumbo CDs 7,730   Federal funds sold 3,050   Federal funds purchased 530   Loans (less reserve for loan losses of 3,000) 20,180   Other liabilities 2,740   Premises 2,330   Equity 3,350   Total assets $ 35,440   Total liabilities/equity $ 35,440

Explanation / Answer

Earning assets = Investment securities + Net loans = $6,280 + $3,090 + $20,260 = $29,630 Interest bearing liabilities = $10,450 + $7,770 + $570 = $18,790 Spread = ($4,258/$29,630) ? ($2,224/$18,790) = 2.534% Interest expense ratio = $2,224/($4,258 + $800) = 43.970%

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