Reference no: EM132018894

The financial statements for MHM Bank (MHM) are shown below: Balance Sheet MHM Bank Assets Liabilities and Equity Cash and due from banks $ 1,930 Demand deposits $ 10,630 Demand deposits at other FIs 1,200 Small time deposits 10,360 Investments 6,100 Jumbo CDs 7,680 Federal funds sold 3,000 Federal funds purchased 480 Loans (less reserve for loan losses of 2,500) 20,070 Other liabilities 2,130 Premises 2,280 Equity 3,300 Total assets $ 34,580 Total liabilities/equity $ 34,580 Income Statement MHM Bank Interest income $ 4,078 Interest expense 2,044 Provision for loan losses 200 Noninterest income 710 Noninterest expense 985 Taxes 245 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