3) Using the financial information be ow for First National Bank (FNB). What must the net non- interest expense be for FNB to have a ROE of 12%. Based on your answer is the overhead efficiency ratio for FNB better or worse than the industry. Explain Interest Cost 3.000 Interest rate Assets Securities Loans Amount of return Liab, & Equity Amount $1.175 125 $1,300 475 725 4.5% Liabilities 7.5% Equity Non-earning 100 0.0% Total Total $1.300 First National Bank ROE Tax rate Noninterest Expense PLL Industry Average NIM Overhead Efficiency Average Loan Rate (ALR) 12% 34% 3.54% 0.85 7.5% $30 S3 3) Using the financial information be ow for First National Bank (FNB). What must the net non- interest expense be for FNB to have a ROE of 12%. Based on your answer is the overhead efficiency ratio for FNB better or worse than the industry. Explain Interest Cost 3.000 Interest rate Assets Securities Loans Amount of return Liab, & Equity Amount $1.175 125 $1,300 475 725 4.5% Liabilities 7.5% Equity Non-earning 100 0.0% Total Total $1.300 First National Bank ROE Tax rate Noninterest Expense PLL Industry Average NIM Overhead Efficiency Average Loan Rate (ALR) 12% 34% 3.54% 0.85 7.5% $30 S3