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

June 15, 2021
Christopher R. Teeple

Bank Financial Statement Analysis
Review the financial statements for People’s National Bank (PNB) and prepare a written response to the following questions:
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
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
Your response must adhere to the following standards:
Be 4-5 page (1200-1500 words) excluding the cover or reference pages.
Display work for all calculations.
Cite at least 6 references (at least 4 scholarly/peer reviewed)

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