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
$ 7,100
0
Investment securities
33,000
7
Repurchase agreements
23,000
5
Loans less allowance for losses
91,000
9
Fixed assets
21,000
0
Other earning assets
4,500
8
Total assets
$ 179,600
Liabilities and Equity
Rate Paid (%)
Demand deposits
$ 9,000
0
NOW accounts
80,000
4
Retail CDs
29,000
6
Subordinated debentures
25,000
7
Total liabilities
143,000
Common stock
21,000
Paid-in capital surplus
4,100
Retained earnings
11,500
Total liabilities and equity
$ 179,600
If the bank earns $131,000 in noninterest income, incurs $91,000 in noninterest expenses, and pays $2,610,000 in taxes, what is its net
income? (Enter your answer in dollars, not thousands of dollars.)
Net income
