Table 3.
Differences in Means and Standard Errors of Financial Variables for Pairs
(Standard Errors in Parentheses) |
| Variable |
Recover–Merge |
Recover–Remain a Problem |
Recover–Fail |
Merge–Remain a Problem |
Remain a Problem–Fail
| Merge–Fail |
| Capital |
| Tangible Equity Capital |
0.10 |
0.29** |
2.78*** |
0.19 |
2.49*** |
2.68*** |
| (0.22) |
(0.11) |
(0.30) |
(0.22) |
(0.29) |
(0.35) |
| Capital Injections: |
| From BHC |
-0.22*** |
(0.01) |
0.04 |
0.21*** |
0.05 |
0.26** |
| (0.06) |
(0.03) |
(0.08) |
(0.06) |
(0.08) |
(0.10) |
| Outside |
0.07 |
0.08 |
(0.06) |
0.00 |
-0.14 |
-0.13 |
| (0.10) |
(0.05) |
(0.13) |
(0.10) |
(0.13) |
(0.16) |
| Asset Quality |
| Past-Due Loans (30 - 89 days) |
-0.24** |
-0.55*** |
-1.20*** |
-0.31** |
-0.65*** |
-0.96*** |
| (0.11) |
(0.05) |
(0.15) |
(0.11) |
(0.15) |
(0.18) |
| Past-Due Loans (90+ days) |
-0.06 |
-0.33*** |
-0.58*** |
-0.27** |
-0.25* |
-0.52*** |
| (0.10) |
(0.05) |
(0.13) |
(0.10) |
(0.13) |
(0.16) |
| Nonaccrual Loans and Leases |
-0.39** |
-0.47*** |
-1.65*** |
-0.09 |
-1.18*** |
-1.27*** |
| (0.15) |
(0.07) |
(0.20) |
(0.15) |
(0.20) |
(0.24) |
| Other Real Estate Owned |
0.12 |
-0.59*** |
-1.19*** |
-0.72*** |
-0.59** |
-1.31*** |
| (0.18) |
(0.09) |
(0.24) |
(0.18) |
(0.24) |
(0.29) |
| Allowance for Loan Loss |
-0.29*** |
-0.04 |
-0.42*** |
0.25** |
-0.38*** |
-0.13 |
| (0.08) |
(0.04) |
(0.11) |
(0.08) |
(0.11) |
(0.13) |
| Management |
| Efficiency Ratio |
-5.83*** |
-6.10*** |
-27.44*** |
-0.28 |
-21.34*** |
-21.62*** |
| |
(1.76) |
(0.86) |
(2.37) |
(1.71) |
(2.34) |
(2.79) |
| Earnings |
| Total Interest Income |
-0.19 |
-0.79*** |
-1.78*** |
-0.60** |
-0.99*** |
-1.59*** |
| |
(0.22) |
(0.11) |
(0.30) |
(0.22) |
(0.30) |
(0.36) |
| Total Noninterest Income |
-0.03 |
-0.04 |
-0.57** |
-0.01 |
-0.53** |
-0.54** |
| |
(0.17) |
(0.08) |
(0.22) |
(0.16) |
(0.22) |
(0.26) |
| Total Interest Expense |
-0.03 |
-0.79*** |
-2.03*** |
-0.76*** |
-1.24*** |
-2.00*** |
| |
(0.15) |
(0.07) |
(0.21) |
(0.15) |
(0.20) |
(0.24) |
| Loan-Loss Provision |
-0.88*** |
-0.46*** |
-1.85*** |
0.42** |
-1.40*** |
-0.97*** |
| |
(0.17) |
(0.08) |
(0.23) |
(0.17) |
(0.23) |
(0.27) |
| Loan Charge-offs |
-0.32** |
-0.33*** |
-1.39*** |
-0.02 |
-1.06*** |
-1.08*** |
| |
(0.13) |
(0.07) |
(0.18) |
(0.13) |
(0.18) |
(0.21) |
| Expenses on Premises |
-0.07** |
-0.09*** |
-0.28*** |
-0.02 |
-0.19*** |
-0.21*** |
| |
(0.03) |
(0.02) |
(0.04) |
(0.03) |
(0.04) |
(0.05) |
| Salaries |
-0.03 |
-0.12** |
-0.50*** |
-0.09 |
-0.38*** |
-0.48*** |
| |
(0.08) |
(0.04) |
(0.11) |
(0.08) |
(0.11) |
(0.13) |
| Other Non-interest Expenses |
-0.30** |
-0.20*** |
-1.06*** |
0.11 |
-0.86*** |
-0.76*** |
| |
(0.12) |
(0.06) |
(0.16) |
(0.12) |
(0.16) |
(0.19) |
| Liquidity |
| Volatile Liabilities |
-0.36 |
-1.70*** |
-1.78* |
-1.34* |
-0.09 |
-1.43 |
| |
(0.70) |
(0.35) |
(0.95) |
(0.69) |
(0.94) |
(1.12) |
| Loans + Securities > Five Years |
-1.98** |
-2.57*** |
-1.91* |
-0.60 |
0.66 |
0.07 |
| |
(0.82) |
(0.40) |
(1.11) |
(0.80) |
(1.09) |
(1.31) |
| Significance at 1%, 5% and 10% levels are indicated by ***, **, and * asterisks, respectively. |
