for offering an expanded range of financial services.
Additionally, operating in a broader territory will spread risk over a wider geographic region. Loans will be able to be made in several different cities that have varying economic prospects and that will bring different rates of return on investments. “You have a larger marketplace, you spread the risk across these areas, and you increase the value of the shares. That is what has happened in every case in which a bank merger has happened. Over time the value of the shares goes up,” says Anderson.