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the industry were encouraging as a result of low interest and
inflation rates that led to increased consumer borrowing and
spending, increased production and expansion, and lower
unemployment.
2. Competition
Peoples’ main competitors in Boonville were Old National,
Warrick Federal Credit Union (the Credit Union), and Boonville
Federal Savings Bank. Old National and the Credit Union both had
competitive positions superior to that of Peoples. Among its
Boonville competitors, Peoples was considered to be something of
a dinosaur. Peoples had been losing customers since the Credit
Union opened. In comparison to its competitors, Peoples' only
advantage was in the low costs and fees it offered on home
mortgages, along with a competitive interest rate.
Peoples also faced competition from large commercial banks
in Evansville that had presences in other parts of southern
Indiana: (1) Old National; (2) CNB Bancshares; and (3) National
City Bancshares. However, all three Evansville banks were trying
to grow through acquisition, so while they may have posed a
competitive threat, they were also a potential acquirer of
Peoples. Old National's Boonville branch, for example, had
resulted from Old National's acquisition of a local bank.
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