1. What is 1st State's net interest margin? (Please Show work)

a)6% b)3.8% c)5% d)75.5% e)82.5%

2. What is the earnings base? (Please Show work)

a)12.5% b)17.5% c)58.5% d)75.5% e)82.5%

3. What is 1st State's burden Ratio? (Please Show work)

a)2.5% b)17.5% c)25% d)75.5% e)82.5%

4. What is the efficiency ratio?

a) 2.53% b) 17.51% c).83% d).45% e) 82.5%

1st State Bank Balance Sheet Assets Cash and Due from Banks Investments Federal Funds Loans Premises Average Total Assets A A A A ALA 50 300 10 350 90 800 Liabilities & Equity Demand Deposits Time Deposits Federal Funds Equity Average Total Liabilities & Equity A A A A A 100 300 300 100 800 Income Statement Interest Income Interest Expense Non-Interest Income Non-Interest Expense Net Income EA A GA GA