In this paper, we modify Schwartz and Moon (2000) model to value bank consolidation. From the case study (the first case of Taiwanese bank merge), we find that the consolidation value from the ex-ante viewpoint is average about 30% of the original total values of the associated banks. Further, we find that the probability of bankruptcy after merge will much lower than that of before merge. Hence it is worthwhile to merge for each bank in our case study. We also find that the changes in the growth rate in the integrated loan, the changes in the growth rate in the integrated deposits and the saving factors of cost functions play most important roles in the gratitude of increased consolidation value of bank merge.