Loan Growthi,( t,,t-2) = f(Merger Activity,i, (t,,t-2), Bank Characteristics and Conditions i,t-2) + error,

Loan growth, sub i, (sub t, sub t minus 2) equals a function of Merger Activity sub i, (sub t, sub t minus 2), Bank Characteristics and Conditions sub i, (sub t, sub t minus 2) plus an error term.

Where sub i indicates a particular bank; sub t indicates year t; and sub t minus 2 indicates the year two years prior to year t.