Reference no: EM131628955

The financial statements for MHM Bank (MHM) are shown below: Balance Sheet MHM Bank Assets Liabilities and Equity Cash and due from banks $ 1,950 Demand deposits $ 10,650 Demand deposits at other FIs 1,400 Small time deposits 10,380 Investments 6,140 Jumbo CDs 7,700 Federal funds sold 3,020 Federal funds purchased 500 Loans (less reserve for loan losses of 2,700) 20,120 Other liabilities 2,380 Premises 2,300 Equity 3,320 Total assets $ 34,930 Total liabilities/equity $ 34,930 Income Statement MHM Bank Interest income $ 4,108 Interest expense 2,094 Provision for loan losses 400 Noninterest income 730 Noninterest expense 1,005 Taxes 265 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 %