Assets	Amount			Interest rate of return					Liab. & Equity		Amount				Interest Cost
Securities	$	475				4.5	%			Liabilities		$	1,175				3.0	%
Loans		725				7.5	%			Equity			125
Non-earning		100				0.0	%			Total		$	1,300
Total	$	1,300

First National Bank
ROE		12	%
Tax rate		34	%
Noninterest Expense	$	30
PLL	$	3

Industry Average
NIM	3.54	%
Overhead Efficiency	0.85
Average Loan Rate (ALR)	7.5	%

What is the bank's NIM? Is the bank performing better or worse than average? In what area is the bank performing better or worse than average? How could the bank improve if necessary?

NIM = (Interest revenue Interest expense)/(Securities + Loans)