Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid...
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Finance
Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on its liabilities.
Balance Sheet (in thousands)
Assets
Rate Earned (%)
Cash and due from banks
$
6,300
0
Investment securities
25,000
9
Repurchase agreements
15,000
7
Loans less allowance for losses
83,000
11
Fixed assets
13,000
0
Other earning assets
4,700
10
Total assets
$
147,000
Liabilities and Equity
Rate Paid (%)
Demand deposits
$
12,000
0
NOW accounts
72,000
6
Retail CDs
21,000
8
Subordinated debentures
17,000
9
Total liabilities
122,000
Common stock
13,000
Paid-in capital surplus
3,300
Retained earnings
8,700
Total liabilities and equity
$
147,000
If the bank earns $123,000 in noninterest income, incurs $83,000 in noninterest expenses, and pays $2,530,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.)
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