1. Select five banks: 3 local banks, and 2 major regional or nationwide banks.
2. From their website or their local offices, collect a copy of their latest annual report.
3. Construct a spreadsheet listing the important financial data (assets, liabilities, net income, equity
capital or net worth, dividends, share value, ROA, ROE, EM, etc.) for the selected banks over a
five-year period (2015-2020), or the latest five years for which data are available.
4. In narrative form, provide some background information on the selected banks, describe their
activities, the composition of their assets, their net income level, their equity and dividend earning,
their position in the industry, i.e., their overall performance.
5. Review and analyze their financial statements with extended discussion of the following for each
bank: Net Income, Return on Assets (ROA), Return on Equities (ROE), and the Equity Multiplier
(EM). Present a detailed comparative analysis of the performance of the selected banks according
profitability and safety.
6. Rank the banks according to their performance (based on profits, ROA, ROE and EM) and safety.
Explain your ranking.
7. Assuming that you were the Chairman of the Board or CEO of a major financial institution seeking
to acquire a bank, which bank would you be more willing to purchase? Why? Which would you be
less willing to purchase? Why?
8. References and sources of data must be cited, whenever appropriate, at the end of the document.