The financial statements for People?s National Bank (PNB) are shown below:

Peoples? National Bank

Income Statement

For the Year Ended December 31, 20XX

Interest on fees and loan ................................................ 1,200

Interest on investment securities ................................. 700

Interest on repurchase agreement ............................... 780

Interest on deposits in banks ....................................... 265

Total Interest Income ................................................... 2,945

Interest on deposits ..................................................... 945

Interest on debentures ................................................ 689

Total Interest Expense ................................................. 1,634

Provision for loan losses ............................................. 140

Noninterest income ..................................................... 185

Noninterest expense .................................................. 281

Total ............................................................................... 236

Income before taxes .................................................. 1,075

Taxes ............................................................................ 215

Net Income ................................................................. 860

Analyze the following eight ratios for PNB?s financial statements: Earning Assets, Return on Assets, Total Operating Income, Asset Utilization, Net Interest Margin, Spread, Overhead Efficiency, and Tax Ratios.

Compare the results of PNB?s ratios to the banking industry average. Then, interpret the results of the comparison.

Assets Cash Demand Deposits from other Fls Investment Federal funds sold Loans Reserve for loan losses Premises Total Assets Peoples' National Bank Balance Sheet As of December 31, 20XX 600 1,890 3,680 1,988 16,145 (1,040) 1,620 24,883 Liabilities & Equity Demand deposits Small time deposits Jumbo CDs Federal funds purchased Equity Total Liabilities and Equity 5,590 9,867 3,198 2,500 3,728 24,883