Here's what I learned: "Reversion to the mean" is much more powerful than people give it credit for. One would think that logic would also apply to bank mergers:
"Many experts are predicting a wave of bank M&A activity over the next few years.
“We don’t believe that there will necessarily be a wave, but there is bound to be an increase in activity,” writes Charlie Crowley, managing director at investment banking firm Boenning & Scattergood, in a blog for Crain’s Cleveland Business.
“Despite decades of consolidation, there are still more than 7,000 banks in the country,” he says. An average of 263 banks a year were acquired nationwide between 2000 and 2007, compared with just 145 FDIC-unassisted deals from 2008 too 2011."