Review the financial statements for People's National Bank (PNB) and prepare a written response to the following questions:

1. Analyze the following ratios for PNB's financial statements:

   • Earning Assets
   • Return on Assets
   • Total Operating Income
   • Asset Utilization
   • Net Interest Margin Spread
   • Overhead Efficiency
   • Tax Ratios

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

Peoples' National Bank - Balance Sheet - As of December 31, 20X6
Assets				Liabilities Equity
Cash	600			Demand deposits	5,590
Demand Deposits from other FIs	1,890			Small time deposits	9,867
Investment	3,680			Jumbo CDs	3,198
Federal funds sold	1,988			Federal funds purchased	2,500
Loans	16,145			Equity	3,728
Reserve for loan losses	(1,040)
Premises	1,620
Total Assets	24,883			Total Liabilities and Equity	24,883
Peoples' National Bank - Income Statement - For the Year Ended December 31, 20X6
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