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Home > Industry Analysis > Research & Analysis > Working Paper Series > Bank Consolidation and Small Business Lending > Table A.3




Bank Consolidation and Small Business Lending: The Role of Community Banks


Table A.3: Effects of Overall Consolidation Activity (CA) and Local Community Bank (CB) Market Share on Small Business Loan Growth: 1997-2000

Effects on small business loan (SBL) growth and its decompositions into loans under and over $100,000 and CRE versus C&I loans.  Estimated coefficients and standard errors (reported in parentheses) for all explanatory variables

Urban Markets

Rural Markets

Total SBL

<$100K SBL

>$100K SBL

CRE SBL

C&I SBL

Total SBL

<$100K SBL

>$100K SBL

CRE SBL

C&I SBL

Intercept

29.961***

2.778

27.182***

16.456***

13.504*

55.449***

29.772***

25.676***

35.310***

20.138***

(10.34)

(7.050)

(7.761)

(5.827)

(8.009)

(10.38)

(8.384)

(8.938)

(7.666)

(5.483)

Overall CA

0.102*

0.084**

0.018

0.002

0.100**

0.021

0.057*

-0.036

0.016

0.005

(0.052)

(0.036)

(0.039)

(0.030)

(0.041)

(0.042)

(0.034)

(0.036)

(0.031)

(0.022)

CB SBL mkt share

-0.016

-0.025

0.009

-0.015

0.000

-0.003

-0.047*

0.044

-0.005

0.002

(0.046)

(0.032)

(0.035)

(0.026)

(0.036)

(0.032)

(0.026)

(0.028)

(0.024)

(0.017)

Number of banks

0.104

0.069

0.035

0.019

0.085

-0.133

0.023

-0.155

-0.332

0.199

(0.120)

(0.082)

(0.090)

(0.068)

(0.093)

(0.487)

(0.393)

(0.419)

(0.360)

(0.257)

Deposit Herfendahl

0.002

0.001

0.001

0.000

0.003*

-0.006***

-0.004***

-0.003*

-0.005***

-0.002**

(0.002)

(0.001)

(0.001)

(0.001)

(0.002)

(0.002)

(0.001)

(0.001)

(0.001)

(0.001)

Offices per-capita

-0.559

0.377

-0.936

0.312

-0.871

1.238

0.460

0.778

0.828

0.410

(1.575)

(1.074)

(1.182)

(0.888)

(1.220)

(0.856)

(0.691)

(0.737)

(0.632)

(0.452)

Deposits per-capita 

-4.389

-1.776

-2.613

-3.963

-0.425

-25.47***

-12.20***

-13.28***

-14.73***

-10.75***

(4.337)

(2.957)

(3.255)

(2.444)

(3.359)

(3.170)

(2.560)

(2.729)

(2.341)

(1.674)

Deposit growth lagged

-0.002

-0.059

0.056

0.028

-0.030

0.092

0.180*

-0.088

0.091

0.001

(0.062)

(0.042)

(0.047)

(0.035)

(0.048)

(0.114)

(0.092)

(0.098)

(0.084)

(0.060)

Deposit growth current

0.785***

0.343***

0.442***

0.174***

0.611***

1.199***

0.593***

0.605***

0.748***

0.451***

(0.061)

(0.042)

(0.046)

(0.035)

(0.048)

(0.056)

(0.045)

(0.048)

(0.042)

(0.030)

Thrift deposit share

0.033

0.005

0.029

-0.009

0.042

0.021

0.004

0.017

0.002

0.019

(0.087)

(0.059)

(0.065)

(0.049)

(0.067)

(0.063)

(0.051)

(0.054)

(0.047)

(0.033)

Population lagged

-0.052

-0.008

-0.044

-0.028

-0.024

-1.293***

-1.085***

-0.207

-0.690*

-0.603**

(0.038)

(0.026)

(0.028)

(0.021)

(0.029)

(0.493)

(0.398)

(0.425)

(0.364)

(0.261)

Pop. growth lagged

-0.037

-0.075

0.039

0.489

-0.526

0.239

-0.186

0.424

0.255

-0.016

(0.632)

(0.431)

(0.474)

(0.356)

(0.489)

(0.373)

(0.302)

(0.321)

(0.276)

(0.197)

Pop. growth current

0.728

0.238

0.490

0.266

0.462

-0.515

-0.322

-0.192

-0.096

-0.419*

(0.710)

(0.484)

(0.533)

(0.400)

(0.550)

(0.446)

(0.360)

(0.384)

(0.330)

(0.236)

Per-cap income lagged

-6.257*

-1.842

-4.415*

-1.918

-4.339*

6.467*

1.913

4.554

4.398*

2.069

(3.337)

(2.275)

(2.504)

(1.880)

(2.584)

(3.470)

(2.802)

(2.987)

(2.562)

(1.833)

PC income growth lagged

0.452

0.302

0.150

0.020

0.432*

0.151

-0.091

0.242

-0.027

0.177

(0.321)

(0.219)

(0.241)

(0.181)

(0.249)

(0.241)

(0.194)

(0.207)

(0.178)

(0.127)

PC income growth current

0.231

-0.008

0.239

-0.059

0.290

0.331

0.117

0.214

0.176

0.156

(0.317)

(0.216)

(0.238)

(0.179)

(0.246)

(0.269)

(0.218)

(0.232)

(0.199)

(0.142)

UE rate lagged

-0.443

-0.244

-0.199

-0.175

-0.268

-0.603

-0.128

-0.475

-0.239

-0.364*

(0.414)

(0.283)

(0.311)

(0.234)

(0.321)

(0.414)

(0.334)

(0.356)

(0.306)

(0.219)

UE rate change lagged

1.633*

0.386

1.247*

0.795

0.838

-0.022

-0.549

0.528

-0.461

0.440

(0.898)

(0.613)

(0.674)

(0.506)

(0.696)

(0.533)

(0.431)

(0.459)

(0.394)

(0.282)

UE rate change current

1.749*

0.890

0.859

0.579

1.171

0.277

0.360

-0.082

0.562

-0.284

(1.015)

(0.692)

(0.762)

(0.572)

(0.786)

(0.606)

(0.490)

(0.522)

(0.448)

(0.320)

House price index chg lagged

0.125

-0.158

0.283**

0.106

0.019

0.154

-0.168

0.322**

0.075

0.079

(0.157)

(0.107)

(0.118)

(0.089)

(0.122)

(0.157)

(0.126)

(0.135)

(0.116)

(0.083)

House price index chg current

-0.004

0.022

-0.026

0.097

-0.101

-0.391**

-0.200

-0.191

-0.249*

-0.142

(0.155)

(0.105)

(0.116)

(0.087)

(0.120)

(0.174)

(0.140)

(0.150)

(0.128)

(0.092)

Bldg permits % chg lagged

-0.002

-0.009

0.007

0.016

-0.018

-0.056*

-0.019

-0.037

-0.051**

-0.005

(0.048)

(0.033)

(0.036)

(0.027)

(0.037)

(0.032)

(0.026)

(0.027)

(0.023)

(0.017)

Bldg permits % chg current

-0.106**

-0.046

-0.060*

-0.037

-0.068*

-0.036

-0.042

0.007

-0.038

0.002

(0.045)

(0.031)

(0.034)

(0.025)

(0.035)

(0.032)

(0.026)

(0.028)

(0.024)

(0.017)

R-Square

0.486

0.272

0.414

0.302

0.440

0.432

0.226

0.231

0.366

0.272

Sample size

292

292

292

292

292

760

760

760

760

760

Dependent variable mean

16.344

-0.573

16.918

8.944

7.401

18.980

0.220

18.760

12.040

6.937

Note: *, **, *** indicate significance levels of 10%, 5%, and 1%, respectively.

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