Financial statements such as balance sheets and income statements show what the bank owns and what it owes. The assets denote what the bank owns while liabilities are what the bank owes. There are several similarities in the balance sheets and income statements of small community banks and larger banks. First, the format of the presentation of both bank's balance grouped the assets and liabilities per the International accounting standards. The International Accounting Standards (IAS) 30 prescribes the most appropriate disclosure, presentation, and tabulation standards on how banks or financial institutions should prepare the financial statements ( Andesfa & Masdupi 2019) .
The standardized format will make it easy for users of the financial information to compare and contrast the performance of the banks by evaluating its performance, given the same characteristics. Therefore, the first similarity is the format and presentation of the financial statements of both PNC Bank and Community National Bank. Secondly, the items in the balance sheet of both banks are systematic and organized. For example, the liabilities listed include demand deposit, all NOW & ATS accounts, Money Market deposit accounts, Other savings deposit, Time Deps Below Insurance Limit, and Less Fully Insured Brokered Deposits. These entries are listed and entered systematically, making it easy for comparative analysis of both financial institutions.
Delegate your assignment to our experts and they will do the rest.
Furthermore, there is a similarity in the current ratio of both banks. The current ratio measures the company's ability to meet its short term obligations. The current ratio of both banks is below one (1), meaning that they do not have adequate liquid assets to meet their short term liabilities. The PNC Bank's current ratio in the year 2012 was 0.86, and in 2013 it was 0.92 (Lueg, Schmaltz & Tomkus 2019) . The Community National Bank's current ratio in the year ending December 2012 was 0.63, and in 2013, the ratio was 0.71. The debt-equity ratio indicates how sound a company is in its long term financial policies. It shows the proportion of how either creditors or stockholders financed assets. The debt-equity ratio of Community National Bank in 2012 was 0.65 and 0.58 in 2013, while PNC bank in 2012 was 0.76 and 0.92 in 2013. These ratios show that the assets of both banks were financed through debt ( Andesfa & Masdupi 2019) . If the ratio is less 0.5, it means that assets were financed using equity, and if it is more than 0.5, then they are financed through debt as in the case of Community National Bank and PNC Bank for the two years.
Return on Investment (ROI) is used to evaluate and analyze the efficiency of the investment in comparison to others in the same industry. The recommended ROI for most financial institutions is between 5% and 10%. Both bank's ROI is within the range recommended, hence a similarity on efficiency. For example, Community National Bank ROI in 2013 was 9.72% and 9.69% in 2013, while PNC Bank in 2013 was 7.75% and 5.44% in 2012. ROI is used to measure profitability in measuring the returns or gains from an investment in relating capital invested and profits ( Andesfa & Masdupi 2019) .
Return on Equity (ROE) of the two banks operates almost at the same rate. ROE measures the organization's profitability by showing the amount of profits gotten or generated using shareholders' money. Community National Bank ROE for 2013 was 11.87%, while that of PNC Bank during the same year was 9.21%. ROE of the two banks is almost similar because they operate within the acceptable rates. Besides, Return on Assets (ROA) is one of the profitability ratios that shows the profits generated by the assets owned by the organizations in the balance sheet. Community National Bank ROA for the year 2013 was 0.90%, while that of PNC bank in the same year was 0.89%. If a firm has a ROA of more than 0.5%, then the firm is doing well, and it is recommended; therefore, the two financial institutions are doing well and operating above the recommended ROA (Lueg, Schmaltz & Tomkus 2019) .
The principal differences between the Community National Bank and PNC bank are the number of assets and liabilities value. The total assets of PNC Bank are $ 273,352,937 million, and that of Community National Bank was $ 127,376 million as of December 31, 2013. The assets' significant margin differences between the two are substantial even in their operations and returns or profits expected. Also, the liabilities of the two financial institutions differ significantly in the amounts they deal with because of the extent of service ( Dickens 2019) .
Alpine Bank and JPMorgan Chase
Alpine Bank was founded in 1973 in Colorado and offering financial services such as wealth management and personal banking. Furthermore, it serves the local communities with commitment and has 38 branches in Colorado. JPMorgan Chase is one of the leading financial institutions in America with its headquarters in New York. It has more than $ 2.3 trillion in assets. Alpine Bank and JPMorgan Chase have similarities, especially the return on assets (ROA). Both financial institutions have a ROA of less than 5%, which is not good. JPMorgan Chase ROA, as of December 31, 2019, was 1.22%, and that of Alpine Bank was 1.54% during the same period. The ratio shows that the two financial institutions are not doing well to generate profits from the assets of the institutions ( Dickens 2019) . The two financial institutions must utilize all the available assets to create more profits and revenues.
Furthermore, the total assets of both companies have been increasing tremendously for the last two years. For instance, the total assets of Alpine Bank were $ 3,864,092 million as of December 31, 2019, which is higher compared to $ 3,859,123 million in 2018. JPMorgan Chase bank's total assets as of December 2019 were $ 2687.379 billion compared to $2622.532 billion by 2018, which was an increase of 2.47%. From this information, the two bank's assets are increasing, making it a similarity between the two financial institutions. The current ratio of JPMorgan as of December 2019 was 0.92, while that of Alpine bank within the same period was 0.98. The current ratios are below 1, which means that the financial institutions cannot meet their short term obligations because the liabilities are more than the assets ( Niankara 2019) .
The principal difference between JPMorgan Chase and Alpine bank is the asset value, where the former has a significantly huge asset base compared to Alpine bank. Moreover, Alpine bank operates only in Colorado with 38 branches only while JPMorgan Chase banks operate in all almost states in the United States of America with more than 5,100 offices. Furthermore, the laws and regulations governing JPMorgan Chase are more comprehensive because each state has different financial regulations regarding banking management, unlike Alpine Bank operating only under the Colorado laws. The recommended Return on Equity is between 15% and 20%, which shows that JPMorgan operates at 13.21% ROE as of December 2019, while Alpine Bank ROE as of December 2019 was 18.76%. The higher ROE of Alpine Bank means that it utilizes assets capable of generating more profits than JPMorgan Chase does ( Siedlarek & Fritsch 2019) .
Moreover, Alpine Bank controls a market share of 2.28%, while JPMorgan Chase controls 9.95%, meaning that it is dominant in the US banking industry, especially within Colorado. Notably, JPMorgan deposits stand at $ 14,199,714,000, while Alpine bank deposits are $ 3,249,167,000 within Colorado only by the end of 2019 ( Siedlarek & Fritsch 2019) . The presentation and format of financial statements in both banks are different but still provide relevant information ( Dickens 2019) .
References
Andesfa, D., & Masdupi, E. (2019). Effect of Financial Ratio on Profitability of Commercial Banks: A Systematic Literature Review. In 2nd Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2018) . Atlantis Press.
Dickens, R. N. (2019). Contestable markets theory, competition, and the United States commercial banking industry . Routledge.
Lueg, R., Schmaltz, C., & Tomkus, M. (2019). Business models in banking: A cluster analysis using archival data. Trames: A Journal of the Humanities and Social Sciences , 23 (1), 79-107.
Niankara, I. (2019). Panel and geospatial data for US FDIC insured banks fiduciary activities and annual performance analyses over the periods 2016 to 2019. Data in brief , 25 , 104358.
Siedlarek, J. P., & Fritsch, N. (2019). Asset Commonality in US Banks and Financial Stability. Economic Commentary , (2019-01).
