For immediate release

The Federal Reserve Board today released the statement of Governor Meyer, concurring in the approval of the applications of Citizens Commercial Bank & Trust Company, Celina, Ohio, to acquire 11 branches from KeyBank, N.A., Cleveland, Ohio ("KeyBank"), and to establish branches at the location of the former KeyBank branches. The Board's Order relating to this action was released on September 8, 1997. Governor Meyer's Concurring Statement is attached.

Concurring Statement of Governor Meyer

I believe that the proposed acquisition presents a close case. The Celina/St. Mary's banking market, as measured by the Herfindahl-Hirschman Index ("HHI"), would become highly concentrated; and, under the Department of Justice merger guidelines, the amount of change in market concentration raises concerns about the potential competitive effects of this proposal. A divestiture of one office in the market would have substantially reduced the change in the HHI and the market would have remained moderately concentrated after consummation under the DOJ guidelines. Such a divestiture would have substantively improved the competitive considerations for this proposal, and a future application that presents such a large change in the HHI in a more highly concentrated post-acquisition banking market or where there are fewer remaining competitors, may well require a divestiture. The change in the HHI resulting from this proposal is at the upper limits of an acquisition that should be approved without a divestiture in my view. September 10, 1997

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1997 Orders on banking applications