Given the following information for a small bank: (15 points)

Balance sheet & Income Statement (thousands of dollars)

Dec. 2017 Dec. 2016

Assets

Cash and due from banks $ 5,010 $ 4,870

Investments $ 8,768 $ 8,888

Loans $118,608 $109,215

Premises $ 2,650 $ 2,780

Total assets $135,036 $125,753

Liabilities and Equity

Demand deposits $ 24,069 $ 22,219

Other deposits $103,225 $ 96,325

Equity $ 7,742 $ 7,209

Total Liabilities & Equity $135,036 $125,753

Income Statement

Interest Income $ 8,012 $ 7,459

Interest Expense $ 890 $ 822

Non-Interest Income $ 717 $ 749

Non-Interest Expense $ 5,681 $ 5,958

Net Income $ 2,158 $ 1,428

a) calculate the return on equity, net interest margin, earnings base, burden ratio, and efficiency ratio.

b) Evaluate this institution relative to ideal and industry norms for a small institution.

c) Explain why ratios for a large bank would likely be higher, lower, or similar.