Fernando Bank has interest expense of $150 million,earning assets of $1,400 million and a NIM of 5.00 percent. The bank also has interest-bearing liabilities of $1,100 million. Fernando Bank's spread is

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NIM = (Interest income - Interest expense) / Earning assets5.00% = (Interest income - $150 million) / $1,400 millionInterest income = $200 millionSpread = (Interest income - Interest expense) / Interest-bearing liabilitiesSpread = ($200 million - $150 million) / $1,100 millionSpread = 1.94%

Fernando Bank Has Interest Expense of $150 Million,earning Assets of $1,400