2023 Community Bank Case Study Competition Journal

2023 COMMUNITY BANK CASE STUDY COMPETITION

In four of the seven markets it operates, PSB is the only game in town. It is the market leader in two of the three remaining communities. In

three of the markets, the bank competes against a regional bank that merged with another large player. Halterman opined the conversion did not go well: “Larger

banks and regionals are our friend. They typically

Figure 1: Deposit Growth at PSB uncontested and contested branches and at local competitors, 2018-2022

are not interested in smaller markets, and their customer

Peoples Savings Branch, no competitors

Peoples Savings Branch, with competitors

Competing Banks

2.1

service is subpar.” He is confident that service and commitment to the community will win out. Halterman is also optimistic about the most recently opened branch in Knoxville. The market leader in Knoxville was acquired a few years ago and is losing market share.

1.9

1.7

1.5

1.3

1.1

0.9

Deposits, Index (2018=1)

0.7

0.5

2018

2019

2020

2021

2022

source: FDIC Deposit Market Summary June 30 data

Figure 2: De Novo Bank Charters

300

270

250

223

221

199

194

191

200

181

179

157

146

150

128

118

114

111

98

95

100

80

67 68

50

31

13 6 9 15

11 3

0 2 0 1 0 5 8

0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

source: bankingstrategist.com using FDIC Analytics

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