Smallville Bank has the following balance sheet, rates earned on its assets, and rates paid on...

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	$	6,100		0
Investment securities		23,000		9
Repurchase agreements		13,000		7
Loans less allowance for losses		81,000		11
Fixed assets		11,000		0
Other earning assets		3,900		10
Total assets	$	138,000
Liabilities and Equity			Rate Paid (%)
Demand deposits	$	10,000		0
NOW accounts		70,000		6
Retail CDs		19,000		8
Subordinated debentures		15,000		9
Total liabilities		114,000
Common stock		11,000
Paid-in capital surplus		3,100
Retained earnings		9,900
Total liabilities and equity	$	138,000

If the bank earns $121,000 in noninterest income, incurs $81,000 in noninterest expenses, and pays $2,510,000 in taxes, what is its net income? (Enter your answer in dollars, not thousands of dollars.)

Expert Solution

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