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2. Washita Commercial Bank plans to acquire Vernon National Bank. 4 Bank name Total assets Net income Number of shares CNBC Bank $52 million $0.89

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2. Washita Commercial Bank plans to acquire Vernon National Bank. 4 Bank name Total assets Net income Number of shares CNBC Bank $52 million $0.89 million 0.27 million First National Bank $54 million $1.19 million 0.30 million Dimond City Bank $51 million $0.87 million 0.21 million Benton Commercial Banke $53 million $1.04 million 0.22 million Washita Commercial Bank $12 millione $0.35 million 0.12 million Vernon National Banke $11 million $0.04 million 0.10 million (1) If conversion ratio is 1-to-1, what is EPS after merger? (10%) (2) Will the merger case of Vernon National Bank get approval from US Justice Department based on HHI? Why? (15%) (3) Will the merger case of Vernon National Bank get approval from Federal Reserve System based on HHI? Why? (15%)

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