Banking across State Lines: Public and Private Consequences

By Peter S. Rose | Go to book overview
relatively low ratios of total loans to total assets compared to other banks of comparable size in the same market area, indicating substantial underutilized lending capacity and, therefore, greater future loan-revenue potential;
relatively low ratios of total operating expenses to total operating revenues, indicating a well-managed bank, or, alternatively, a bank displaying a relatively high operating expense to revenue ratio but in which new management can substantially reduce future operating costs through automation, staff reductions, branch closings, and other cost-saving actions;
relatively high ratios of cash assets and investment portfolio assets to total assets that acquiring management can shift into higher-yielding loans and other income-generating service activities by replacing relatively cautious managers and shareholders with more aggressive managers and owners;
relatively low ratios of problem loans relative to the total loan portfolio as compared to neighboring banks, indicating a high- quality loan portfolio upon which new management can build an expanded loan case, accepting somewhat greater risk but also gaining expanded loan revenues and loan-servicing fees;
relatively high returns on total assets (ROA) but relatively low returns on equity capital (ROE), suggesting a target bank that has relied heavily upon equity capital supplied by its stockholders but could profitably use increased debt in its capital structure in order to lever up shareholder returns; and
relatively high ratios of checkable deposits and savings accounts in supporting bank assets, suggesting the potential availability of low-cost funding sources in the target bank's relevant market area that could be profitably employed in the various market areas served by the acquiring interstate firm.

CONCLUSION

Today interstate banking is a search for new markets, new service opportunities, and "undervalued" depository institutions. To be successful, interstate bankers must develop new analytical tools that can identify accurately both superior target markets and superior target banking firms. This is no small challenge in a nation with thousands of relatively small banking firms who possess widely varying prospects for the future. A well-formed interstate banking strategy must rest on quality management and a thorough understanding of the changing market for financial services and the changing economic interests of bank customers. There is no one dimension of a market

-137-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Banking across State Lines: Public and Private Consequences
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 178

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.