In contrast, Farmers historically invests a large percentage of deposits in loans and offers a wide array of loan products for consumers and businesses. In its advisory report on competitive effects, 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 Richmond's Competitive Effects report concluded that the proposed transaction could have significantly 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 proposed transaction. Other federal regulatory authorities offered no comments. Prudential Factors Farmers is in sound financial condition with adequate capital and satisfactory management.
Future prospects appear favorable.
However, the Corporation has determined that the continued existence, after the merger of nine insured depository institutions that are all viable and financially sound provides sufficient competitive financial choices within the community. The protestant also raised concerns related to the Community Reinvestment Act, indicating that the transaction would result in substantial reductions in banking services and competitive pricing options. Farmers has historically invested a large portion of total deposits in loans, demonstrating Farmers' commitment to reinvest deposits into communities from which it derives deposits. Approval by the Corporation will be contingent upon final approval from all required regulatory authorities. The scope and convenience of banking services offered to the general public should not be significantly affected by the proposal.