. Evaluate the performance of Community National Bank relative to peer banks using the data in Exhibits 3.2, 3.4, 3.7, 3.8, and 3.9. Did the bank perform above or below average in 2013? Did it operate with more or less relative risk?

a. Conduct a return on equity decomposition analysis for 2013, identifying where the banks performance compared favorably and unfavorably with peer banks.

b. Compare the banks risk measures with those of peer banks. What are the implications of any significant differences?

c. What recommendations would you make to adjust the banks risk and return profile to improve its performance?

(Please compare to PNC Bank financial ratios which is included in the exhibits below)

2012-2013 Balance Sheet Information for PNC Bank and Community National Bank 1 EXHIBIT 3.2 PNC Bank, National Association 96 of Total %of Total 96 Cha 0 Other LN&LS in domestic off Loans not held for sale LN&LS loss Allowance U.S. Treasury & Agency securities 1 Fed funds sold & resales Assets Nonint Cash & Due from banks Premises, fixed assets & capital leases Investment in unconsolidated subs 1 Total Assets Average Assets During Quarter