1. First State Bank is $125 million in deposits and controls the largest market share (45%). What impact will Big Time Bank & Trust's acquisition have on the bank's ability to compete?

Case 1: First State Bank GENERAL INFORMATION What had been rumored for some time became official today, when the local newspaper and the radio stations chronicled the announcement that Neighborhood Bank was being acquired by Big Time Bank \& Trust, a regional banking corporation that had been paying high multiples and acquiring every available bank that it could. Your bank (First State Bank) and Neighborhood Bank have been very competitive for the past 25 years, enjoy approximately 80% of the county's market share (First State Bank controls 45% of the market and Neighborhood Bank controls 35% of the market)