The U.S. Department of Justice concluded that the proposed transaction would not have a significantly adverse effect on competition. The Federal Reserve Bank of San Francisco concluded that the proposed transaction could have significant anti- competitive effects, but advised that it did not consider all of the economic factors that may be relevant to the competitive effects of the transaction. Other federal regulatory authorities offered no comments. The California State Department of Financial Institutions approved the transaction on October 16, 1997. After giving consideration to the factors cited above, the Board of Directors concludes that the proposed transaction will not substantially lessen competition, tend to create a monopoly, or in any other manner restrain trade or otherwise have an adverse competitive impact that would require disapproval under the Bank Merger Act.
Future prospects appear favorable.
The scope and convenience of banking services offered to the general public should not be significantly affected by the transaction. The number of banking institutions will not change in either market. Five banks in the Chester market, including BOA, and four in the Fall River Mills market, will remain. Absent the sale of the BOA branches, BOA has stated its intention to close the branches and merge their operations into other BOA operating facilities. The sale of the Fall River Mills branch will be less disruptive to the communities than closing the branch.