Comparing the current results to its competitors, New Peoples Bankshares Inc reported Revenue increase in the 3 quarter 2023 by 0.94 % year on year. The revenue growth was below New Peoples Bankshares Inc 's competitors' average revenue growth of 7.7 %, achieved in the same quarter.
New Peoples Bankshares Inc 's Comment on Competitors and Industry Peers
The banking business is highly competitive. We compete as a financial intermediary
with other commercial banks, savings and loan associations, credit unions, mortgage
banking firms, consumer finance companies, securities brokerage firms, insurance
companies, money market mutual funds and other financial institutions operating
in the southwestern Virginia, southern West Virginia, and eastern Tennessee market
area and elsewhere. Our market area is a highly competitive, highly branched banking
market.
Competition in the market area for loans to small businesses and professionals,
the Bank’s target market, is intense, and pricing is important. Many of
our larger competitors have substantially greater resources and lending limits
than we have. They offer certain services, such as extensive and established branch
networks and trust services that we do not expect to provide or will not provide
in the near future. Moreover, larger institutions operating in the market area
have access to borrowed funds at lower costs than are available to us. Deposit
competition among institutions in the market area also is strong. As a result,
it is possible that we may have to pay above-market rates to attract deposits.
While pricing is important, our principal method of competition is service. As
a community banking organization, we strive to serve the banking needs of our
customers while developing personal, hometown relationships with them. As a result,
we provide a significant amount of service and a range of products without the
fees that customers can expect from larger banking institutions.