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3. Smallville Bank has the following balance sheet, rates earned on their assets, and rates paid on their liabilities. Balance Sheet (in thousands) Assets Rate Earned (%) Liabilities and Equity Rate Paid (%) 0 0 7,000 10,000 12,000 Demand deposits NOW accounts 4 Cash Investment securities Repurchase aggrements Loans less allowance for losses Fixed assets 10,000 55,000 20,000 2 2 Retail CDs 3 5 11,000 5 90,000 10,000 Subordinated debentured Total liabilities 0 96,000 Other assets 1,000 3 Common stock 10,000 13,00 0 Total assets 130,000 Paid-in capital surplus Retained earnings Total liabilities and equity 11,000 130,000 The bank earns $100,000 in noninterest income, incurs $70,000 in noninterest expenses, and pays $1,400,000 in taxes. Current period's allocation to the allowance for losses is $600,000. Please construct Smallville Bank's income statement. Income Statement (in thousands) Interest income Interest expense Net interest income Provision for loan losses Noninterest income Noninterest expense Income before Taxes and Extraordinary Items Income Taxes Net Income