7. Below is a common size income statement for Bank of Colorado (headquartered in Fort Collins) (listed as Bank) for its Uniform Bank Performance Statement with each item as a % of Total Average Assets for the Bank and for its Peers (i.e., the average for other similar size banks) for 2018 and 2019. 2019 2018 All items as % of Total Assets Bank Peers Bank Peers Interest Income (IR%) 3.94 4.21 3.84 4.07 Interest Expense(IE%) 0.69 0.87 0.43 0.64 Net Interest Income (NIM%) 3.25 3.34 3.41 3.43 Non-interest Revenues (NIR%) 0.95 0.85 0.74 0.92 Non-Interest Expense (NIE%) 2.30 2.47 2.34 2.50 Burden % 1.35 1.62 1.60 1.58 Provision for Loan Losses (PLL%) Pretax Oper. Income (OROA%) 0.01 0.11 0.06 0.12 1.89 1.61 1.75 1.73 10.46 8.93 10.44 Equity to Assets% (Tier 1 cap. Ratio) 9.12 Equity Mulitplier (EM) (Assets/Equity) =(1/(Tier 1 Capital Ratio as a fraction) 10.97 9.56 11.20 9.58 16.38 Operating ROE % (OROA x EM 20.7 15.39 19.60 b. NIM Analysis for Bank of Colorado: Explain why Bank of Colorado's NIM fell in 2019, including a discussion of the trends in its IR%, and IE%, and the likely type of funding gap that Bank of Colorado has. The Peers Bank also had a fall in the NIM with a rise in rates, what type of funding gap does this suggest for the Peers. c. Peer Comparison Analysis: Explain why Bank of Colorado's ROE was higher than the Peers in 2019 including a discussion of differences in Bank of Colorado's IR%, IE%, NIR%, NIE%, PLL%, and EM. What strengths & weaknesses does this comparison reveal for Bank of Colorado versus the Peers?