Use the Following Information for Questions
1 St

Use the following information for questions
1 st State Bank Balance Sheet Assets
$\begin{array}{lrr}\text { Cash and Due from Banks } & \$ & 75 \\\text { Investments } & \$ & 400 \\\text { Federal Funds } & \$ & 18 \\\text { Loans } & \$ & 402 \\\text { Premises } & \$ & 105\\\text { Average Total Assets }&\$&1,000\\\\\text { Liabilities \& Equity }\\\text { Demand Deposits } & \$ & 150 \\\text { Time Deposits } & \$ & 325 \\\text { Federal Funds } & \$ & 425 \\\text { Equity } & \$ & 100\\\text { Average Total Liabilities \& Equity }&\$&1,000\\\\\text { Income Statement }\\\text { Interest Income } & \$ & 150 \\\text { Interest Expense } & \$ & 110 \\\text { Non-Interest Income } & \$ & 11 \\\text { Non-Interest Expense } & \$ &38\\\text { Net Income }&\$&13\end{array}$
-What is 1^st State's efficiency ratio?

A) 2.5%
B) 17.5%
C) 25.0%
D) 74.5%
E) 82.5%