Evaluate the performance of Community National Bank relative to peer banks using the data in Chapter 3, Exhibits 3.2, 3.4, 3.7, 3.8, and 3.9 (attached in Annex 1 of this Assignment). 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?

EXHIBIT 2.4 (continued Che $1.000 Sot Cho Coormality National Bank $1.00 5.3 905 10.5 E 898 8998 0000 00567 067261071 23 64 245 BSB 054 1.231 Community National Bank 20 Community National Bank bec-1 165 Community National Bank Pago CALCBANK PGA CALCBANK AGA Rink Ration 48 Non-owner OCC CRE/Total loans Liquidity Radios ed Mema: Volatile Lib. TA Shantom investments Market Risk Nat pution (GAP) year/Total asets S6N 1,700 570 On 3 yead/Totalets Assets per email Land for more $300 $221 540.96 000 $389 SS 19 EXHIBIT 2.4 (continued Che $1.000 Sot Cho Coormality National Bank $1.00 5.3 905 10.5 E 898 8998 0000 00567 067261071 23 64 245 BSB 054 1.231 Community National Bank 20 Community National Bank bec-1 165 Community National Bank Pago CALCBANK PGA CALCBANK AGA Rink Ration 48 Non-owner OCC CRE/Total loans Liquidity Radios ed Mema: Volatile Lib. TA Shantom investments Market Risk Nat pution (GAP) year/Total asets S6N 1,700 570 On 3 yead/Totalets Assets per email Land for more $300 $221 540.96 000 $389 SS 19