The U.S. Department of Justice concluded that the proposed transaction would not have a significantly adverse effect on competition. The Board of Governors of the Federal Reserve System concluded that the proposed transaction could have significant adverse effects on competition in Warren County, but advised that all of the economic factors that may be relevant to the competitive effects of the transaction were not considered. Other federal regulatory authorities offered no comments. The state banking authority approved the transaction pending approval of the other regulatory authorities. Taking into account the very limited impact of the proposed merger in Hinds County and, for Warren County, the number and resources of the remaining commercial banks, the availability of alternative sources of banking services for both consumers and commercial customers, and the likelihood of new entry, the Board of Directors is of the opinion that the transaction would not substantially lessen competition, tend to create a monopoly, or otherwise have an adverse competitive impact that would require disapproval.
Future prospects appear favorable.
The scope and convenience of banking services offered to the general public should not be significantly affected by the proposal. Bancorp will provide the same services offered by Merchants. 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. The resultant institution is expected to continue to meet the credit needs of its entire community, consistent with the safe and sound operation of the institution.