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It is possible ROE will settle in at a lower-than-precrisis historical rate, leading to a resetting of performance expectations by community bank stakeholders.
The slight uptick in bank earnings experienced by District banks and their U.S. peers in the third quarter did not carry over into the final quarter of 2011.
While some measures of Eighth District housing-market activity recently showed signs of life, it’s not clear yet if it is cause for cautious optimism in the economic outlook.
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