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 Dallas concluded that the proposed transaction could have significantly anticompetitive effects, but advised that it did not consider all of the economic factors that may be relevant to the competitive effects of the proposed transaction. Other federal regulatory authorities offered no comments. The Texas Department of Banking and Finance approved the proposed transaction on November 24, 1998. After giving consideration to the factors cited above, the Board of Directors is of the opinion 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 proposal. Commerce will provide the same services offered by Pacific. Commerce's close proximity to Pacific's Laredo branch will largely eliminate any inconvenience regarding customers from the closed branch having to access their accounts at the new location. There have been no protests to the proposed transaction from either the public or the banking community. A review of available information revealed no inconsistencies with the purposes of the Community Reinvestment Act.