Working Paper
Scale economies and geographic diversification as forces driving community bank mergers
Yeager, Timothy J.; Emmons, William R.; Gilbert, R. Alton (2002)
Mergers of community banks across economic market areas potentially reduce both idiosyncratic and local market risk. Idiosyncratic risk may be reduced because the larger post merger bank has a larger customer base. Negative credit and liquidity shocks from individual customers would have smaller effects on the portfolio of the merged entity than on the individual community banks involved in the merger. Geographic dispersion of banking activities across economic market areas may reduce local market risk because an adverse economic development that is unique to one market area will not affect a ...
Supervisory Policy Analysis Working Papers , Paper 2002-02

Working Paper
The demise of community banks? local economic shocks aren't to blame
Yeager, Timothy J. (2002)
A potentially troubling characteristic of the U.S. banking industry is the geographic concentration of many community banks* offices and operations. If geographic concentration of operations exposes banks to local market risk, we should observe a widespread decline in their financial performance following adverse local economic shocks. In addition, geographic diversification should help banks reduce risk significantly. By analyzing the performance of geographically concentrated U.S. community banks exposed to severe unemployment shocks in the 1990s, I find that banks are not systematically ...
Supervisory Policy Analysis Working Papers , Paper 2002-03

Journal Article
Community ties: does \\"relationship lending\\" protect small banks when the local economy stumbles?
Yeager, Timothy J.; Hall, John R. (2002-04)
The cover story examines why small banks aren't usually thrown for a loop when the local economy has a rough ride
The Regional Economist , Issue Apr. , Pages 4-9

Journal Article
Drive to efficiency leaves smallest banks behind
Yeager, Timothy J.; Anderson, Boyd D. (1999-07)
With higher overhead costs and lower fee income, small banks are in serious danger of getting lapped by their larger competitors. Can community banks find a way to stay on the track?
The Regional Economist , Issue Jul , Pages 12-13

Journal Article
The foreclosure crisis in 2008: predatory lending or household overreaching?
Fogel, Kathy; Yeager, Timothy J.; Ma, Liping; Lee, Wayne Y.; Emmons, William R.; Rorie, Deena (2011-07)
At least early in the financial crisis, the high rate of foreclosures seemed to be due more to households' overreaching than to predatory lending. A disproportionate number of those being foreclosed on were well-educated, well-off and relatively young people.
The Regional Economist , Issue July , Pages 12-14

Working Paper
Are the causes of bank distress changing? can researchers keep up?
Yeager, Timothy J.; King, Thomas B. (2004)
Since 1990, the banking sector has experienced enormous legislative, technological and financial changes, yet research into the causes of bank distress has slowed. One consequence is that current supervisory surveillance models may no longer accurately represent the banking environment. After reviewing the history of these models, we provide empirical evidence that the characteristics of failing banks has changed in the last ten years and argue that the time is right for new research employing new empirical techniques. In particular, dynamic models that utilize forward-looking variables and ...
Supervisory Policy Analysis Working Papers , Paper 2004-07

Conference Paper
Do Federal Home Loan Bank membership and advances lead to bank risk-taking?
Stojanovic, Dusan; Yeager, Timothy J.; Vaughan, Mark D. (2001)
Proceedings , Paper 707

Journal Article
What does the Federal Reserve's economic value model tell us about interest rate risk at U.S. community banks?
Yeager, Timothy J.; Sierra, Gregory E. (2004-11)
The savings and loan crisis of the 1980s revealed the vulnerability of some depository institutions to changes in interest rates. Since that episode, U.S. bank supervisors have placed more emphasis on monitoring the interest rate risk of commercial banks. Economists at the Board of Governors of the Federal Reserve System developed a duration-based economic value model (EVM) designed to estimate the interest rate sensitivity of banks. The authors test whether measures derived from the Fed?s EVM are correlated with the interest rate sensitivity of U.S. community banks. The answer to this ...
Review , Volume 86 , Issue Nov , Pages 45-60

Working Paper
The Financial Modernization Act: evolution or revolution?
Yeager, Fred C.; Yeager, Timothy J.; Harshman, Ellen (2004)
The Gramm-Leach-Bliley Act (GLBA) removed the barriers that separated commercial banking from investment banking, merchant banking, and insurance activities. Did this legislation revolutionize the financial services industry by allowing Financial Holding Companies (FHCs) to exploit revenue efficiencies and cost economies, or did it merely formalize an evolutionary process of deregulation that was already well underway? Our evidence refutes the notion that the GLBA was a revolutionary event, at least in the short run. Using a combination of market and accounting data, we find that, to date, ...
Supervisory Policy Analysis Working Papers , Paper 2004-05

Journal Article
\\"Cedars\\" deposits: will they fly?
Yeager, Timothy J.; Vaughan, Mark D. (2003-10)
Deposit-hungry community banks are turning to a new funding tool called the Certificate of Deposit Account Registry Service. The service says it can help smaller banks attract more jumbo deposits from local customers.
The Regional Economist , Issue Oct , Pages 10-11