Peoples Bancorp Inc. (PEBO): Business Model Canvas [10-2024 Updated]
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Peoples Bancorp Inc. (PEBO) Bundle
Peoples Bancorp Inc. (PEBO) stands out in the competitive banking landscape with its unique business model that focuses on community engagement and personalized services. By leveraging strong partnerships and an extensive branch network, PEBO is well-positioned to serve diverse customer segments, from individual consumers to small businesses. Discover how their key activities, resources, and revenue streams work together to create value for customers and drive growth in this insightful exploration of their Business Model Canvas.
Peoples Bancorp Inc. (PEBO) - Business Model: Key Partnerships
Collaboration with third-party vendors for tech solutions
Peoples Bancorp Inc. has established partnerships with various third-party vendors to enhance its technological capabilities. As of September 30, 2024, the company reported an increase in data processing and software expenses to $6.1 million for the third quarter, compared to $6.7 million in the previous quarter and $6.3 million in the same quarter a year prior. These collaborations focus on improving digital banking services and operational efficiencies.
Partnerships with local businesses for community banking
Peoples Bancorp Inc. actively engages with local businesses to strengthen its community banking efforts. The company reported a total of $1.1 billion in loans to small businesses as of September 30, 2024. This approach not only supports local economies but also enhances customer loyalty and retention. Additionally, the bank offers specialized products tailored to the needs of local entrepreneurs, further solidifying its presence in the community.
Strategic alliances with investment firms
Peoples Bancorp Inc. has formed strategic alliances with various investment firms to expand its wealth management services. As of September 30, 2024, the bank's trust and investment income totaled $4.9 million for the third quarter, reflecting a strong performance driven by increased assets under management. The total assets under administration and management reached $3.73 billion, up from $3.26 billion a year earlier, underscoring the effectiveness of these partnerships in driving growth.
| Partnership Type | Details | Financial Impact |
|---|---|---|
| Third-party tech vendors | Enhancing digital banking services | Data processing expenses: $6.1 million (Q3 2024) |
| Local businesses | Community banking initiatives | Small business loans: $1.1 billion |
| Investment firms | Wealth management services | Trust and investment income: $4.9 million (Q3 2024) |
| Assets under management | Growth in investment services | Total assets: $3.73 billion |
Peoples Bancorp Inc. (PEBO) - Business Model: Key Activities
Providing banking and financial services
Peoples Bancorp Inc. offers a range of financial services, including commercial and retail banking, investment services, and insurance products. As of September 30, 2024, the total loan and lease balances amounted to $4.69 billion, reflecting a strategic focus on diversified lending portfolios. The breakdown of originated loans includes:
| Loan Type | Outstanding Balance (in thousands) |
|---|---|
| Construction | $265,073 |
| Commercial Real Estate | $1,548,976 |
| Commercial and Industrial | $1,047,001 |
| Residential Real Estate | $441,730 |
| Consumer Loans (Indirect) | $677,056 |
| Total Originated Loans | $4,686,287 |
Additionally, the company reported net interest income of $88.9 million for the third quarter of 2024, with a net interest margin of 4.27%.
Risk management and compliance activities
Risk management is a critical activity for Peoples Bancorp, particularly in light of its exposure to various financial risks. In the third quarter of 2024, the provision for credit losses was $6.7 million, up from $5.7 million in the previous quarter. This reflects a proactive approach to managing potential defaults and maintaining credit quality.
The following table summarizes key risk management metrics:
| Metric | Value (in millions) |
|---|---|
| Provision for Credit Losses (Q3 2024) | $6.7 |
| Total Assets | $9,140 |
| Total Liabilities | $8,020 |
| Total Stockholders' Equity | $1,120 |
Compliance activities are essential to ensure adherence to regulatory requirements, which has become increasingly important given the evolving landscape of financial regulations.
Customer relationship management and support
Peoples Bancorp emphasizes customer relationship management (CRM) to enhance client satisfaction and loyalty. The company reported electronic banking income of $6.4 million for the third quarter of 2024, indicating a strong focus on digital banking solutions. Additionally, the bank's deposit account service charges totaled $4.5 million in the same period, reflecting effective management of customer accounts.
The following table highlights customer service metrics:
| Service Type | Revenue (in thousands) |
|---|---|
| Electronic Banking Income | $6,359 |
| Deposit Account Service Charges | $4,520 |
| Trust and Investment Income | $4,882 |
| Insurance Income | $4,271 |
Peoples Bancorp's commitment to customer service is evident in its diverse revenue streams and ongoing enhancements to its banking platform, ensuring a strong value proposition for its customers.
Peoples Bancorp Inc. (PEBO) - Business Model: Key Resources
Strong capital base with $1.12 billion in equity
As of September 30, 2024, Peoples Bancorp Inc. reported a strong capital base with total equity amounting to $1.12 billion. This robust capital structure supports the bank's operations and facilitates growth through various lending and investment activities.
Extensive branch network across Ohio and West Virginia
Peoples Bancorp operates an extensive branch network comprising 97 branches spread across Ohio and West Virginia. This strategic positioning allows the company to effectively serve a diverse customer base and enhance its market presence.
| Location | Number of Branches |
|---|---|
| Ohio | 70 |
| West Virginia | 27 |
| Total | 97 |
Skilled workforce with banking expertise
Peoples Bancorp boasts a skilled workforce with expertise in various banking operations. The company has approximately 1,200 employees, which includes trained professionals in finance, customer service, and compliance, enabling the bank to maintain high standards of service and operational efficiency.
| Employee Category | Number of Employees |
|---|---|
| Banking Professionals | 800 |
| Customer Service Representatives | 300 |
| Compliance and Risk Management | 100 |
| Total | 1,200 |
Peoples Bancorp Inc. (PEBO) - Business Model: Value Propositions
Personalized banking services tailored to local communities
Peoples Bancorp Inc. focuses on delivering personalized banking services that cater specifically to the needs of local communities. This approach fosters strong customer relationships and enhances customer loyalty. As of September 30, 2024, the bank reported total deposits of $6.19 billion, which reflects a 6% increase from $5.74 billion recorded at the same time in 2023.
Competitive interest rates on loans and deposits
Peoples Bancorp Inc. offers competitive interest rates on both loans and deposits. For the third quarter of 2024, the bank's net interest income was $88.9 million, up from $86.6 million in the previous quarter. The net interest margin for this period stood at 4.27%, demonstrating the bank's ability to maintain attractive rates despite rising funding costs.
| Type of Product | Average Interest Rate | Outstanding Balance (in millions) |
|---|---|---|
| Loans | 5.45% | $1,250 |
| Deposits | 2.10% | $6,190 |
Diverse financial products including mortgages and investment services
Peoples Bancorp Inc. provides a diverse range of financial products, including mortgages, investment services, and commercial banking solutions. As of September 30, 2024, the bank's loan portfolio included $1.1 billion in residential mortgages and $1.2 billion in commercial loans. Additionally, non-interest income generated from investment services reached $14.5 million for the first nine months of 2024, representing a significant contribution to overall revenues.
| Product Type | Outstanding Balance (in millions) | Contribution to Non-Interest Income (in millions) |
|---|---|---|
| Residential Mortgages | $1,100 | $12.3 |
| Commercial Loans | $1,200 | $2.2 |
| Investment Services | N/A | $14.5 |
Peoples Bancorp Inc. (PEBO) - Business Model: Customer Relationships
Focus on community engagement and support
Peoples Bancorp Inc. emphasizes community engagement as a core aspect of its customer relationship strategy. The company actively participates in local events and supports various community initiatives. For instance, in 2024, Peoples Bancorp allocated approximately $1.2 million to community development projects and local charities, reflecting its commitment to enhancing community welfare.
Dedicated customer service teams for personalized assistance
Peoples Bancorp has established dedicated customer service teams to provide personalized assistance. The bank employs over 250 customer service representatives across its branches, focusing on delivering tailored services to meet individual customer needs. In the third quarter of 2024, customer satisfaction ratings recorded an average of 4.5 out of 5, based on surveys conducted among 1,000 customers regarding their service experiences.
Regular communication through newsletters and events
Regular communication is a key element in maintaining customer relationships. Peoples Bancorp distributes monthly newsletters to over 50,000 subscribers, providing updates on banking services, financial tips, and community events. Additionally, the bank hosts quarterly customer appreciation events, which have seen attendance grow by 15% year-over-year, indicating increased engagement with their customer base.
| Year | Community Engagement Spending ($ millions) | Customer Service Representatives | Customer Satisfaction Rating (out of 5) | Newsletter Subscribers | Event Attendance (Quarterly Events) |
|---|---|---|---|---|---|
| 2024 | 1.2 | 250 | 4.5 | 50,000 | 1,200 |
| 2023 | 1.0 | 240 | 4.4 | 48,000 | 1,000 |
| 2022 | 0.9 | 230 | 4.2 | 46,000 | 900 |
Peoples Bancorp Inc. (PEBO) - Business Model: Channels
Physical branch locations for in-person banking
As of September 30, 2024, Peoples Bancorp Inc. operates a total of 20 physical branches following the completion of the Limestone Merger. These branches are strategically located to provide in-person banking services, allowing customers to conduct transactions, open accounts, and receive financial advice. The branches are a critical part of the company's customer relationship strategy, as they facilitate trust and personal interactions with banking professionals.
Online banking platform for digital transactions
Peoples Bancorp Inc. has developed a robust online banking platform that supports various digital transactions. As of the third quarter of 2024, the platform has been instrumental in increasing customer engagement and transaction volumes. The bank reported e-banking income of $6.4 million for the third quarter of 2024, slightly down from $6.5 million in the previous quarter, but reflecting a significant portion of their non-interest income. The online platform includes features such as bill payments, account management, and fund transfers, catering to the growing demand for digital banking solutions.
Mobile banking app for convenient access
The Peoples mobile banking app enhances customer convenience by allowing users to access banking services anytime, anywhere. The app supports functionalities such as mobile deposits, balance inquiries, and transaction alerts. The bank's mobile banking user base has been expanding, contributing to a notable increase in overall customer transactions. For the first nine months of 2024, total non-interest income, including mobile banking services, increased by 13% compared to the same period in 2023, driven by a rise in customer activity and digital engagement.
| Channel Type | Details | Financial Impact (Q3 2024) |
|---|---|---|
| Physical Branches | 20 branches operational post-Limestone Merger | Facilitates in-person transactions and customer trust |
| Online Banking Platform | Supports bill payments, account management | E-banking income of $6.4 million |
| Mobile Banking App | Mobile deposits, transaction alerts | Contributes to overall non-interest income growth |
Peoples Bancorp Inc. (PEBO) - Business Model: Customer Segments
Individual consumers seeking personal banking solutions
Peoples Bancorp Inc. targets individual consumers by offering a variety of personal banking products. As of September 30, 2024, the bank reported total deposits of $8.02 billion, with retail certificates of deposit increasing by $685.4 million year-over-year. The bank's personal banking services include checking and savings accounts, mortgages, personal loans, and credit cards.
For the third quarter of 2024, net interest income was $88.9 million, with interest on deposits reaching $37.25 million. The provision for credit losses specifically for personal banking products was $6.7 million, reflecting the bank's commitment to managing credit risk.
Small to medium-sized businesses needing financial services
Peoples Bancorp caters to small and medium-sized enterprises (SMEs) with tailored financial services, including business checking accounts, lines of credit, and commercial loans. The total loan and lease balances at September 30, 2024, stood at $1.78 billion, with commercial loans comprising a significant portion of this figure.
The bank's commercial real estate loans accounted for a considerable share of its portfolio, with $359.4 million in outstanding balances for apartment complexes. For the nine months ended September 30, 2024, the bank reported a net income of $90.3 million, indicating a strong performance in serving the business segment.
Investors looking for wealth management and investment options
Peoples Bancorp also focuses on attracting investors through its wealth management services. As of September 30, 2024, the bank's trust and investment income was $4.88 million, reflecting growth in assets under management. The increase in assets under administration and management was primarily driven by market fluctuations and recent acquisitions.
In addition, the bank provides various investment products, which are essential for individual and institutional investors. The total non-interest income, including investment income, increased by 13% year-over-year, amounting to $74.3 million for the first nine months of 2024.
| Customer Segment | Products/Services Offered | Total Deposits (as of 09/30/2024) | Net Interest Income (Q3 2024) | Provision for Credit Losses (Q3 2024) |
|---|---|---|---|---|
| Individual Consumers | Checking Accounts, Savings Accounts, Mortgages, Personal Loans, Credit Cards | $8.02 billion | $88.9 million | $6.7 million |
| Small to Medium-Sized Businesses | Business Checking Accounts, Lines of Credit, Commercial Loans | $1.78 billion (total loans and leases) | $88.9 million | $6.7 million |
| Investors | Wealth Management, Investment Products | N/A | $4.88 million (trust and investment income) | N/A |
Peoples Bancorp Inc. (PEBO) - Business Model: Cost Structure
Employee salaries and benefits
Employee salaries and benefits represent a significant portion of Peoples Bancorp Inc.'s operational costs. For the third quarter of 2024, total salaries and employee benefit costs amounted to $37.085 million, compared to $36.608 million in the previous quarter and $36.608 million in the same quarter of the previous year. For the first nine months of 2024, these costs totaled $112.542 million, up from $106.661 million in the same period of 2023.
Operational costs for branch maintenance
The operational costs for branch maintenance include expenses related to net occupancy and equipment. In the third quarter of 2024, these costs were $5.905 million, slightly decreasing from $6.142 million in the previous quarter and increasing from $5.501 million in the same quarter of the previous year. For the first nine months of 2024, net occupancy and equipment expenses totaled $18.330 million, compared to $15.836 million in the first nine months of 2023.
Technology and software expenses for banking systems
Technology and software expenses are critical for maintaining competitive banking operations. In the third quarter of 2024, Peoples Bancorp incurred $6.111 million in data processing and software expenses, down from $6.288 million in the previous quarter but up from $6.288 million in the same quarter of the previous year. For the first nine months of 2024, these expenses totaled $18.623 million, compared to $15.578 million in the same period of 2023.
| Cost Item | Q3 2024 (in millions) | Q2 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|---|
| Salaries and Employee Benefits | 37.085 | 36.608 | 36.608 | 112.542 | 106.661 |
| Net Occupancy and Equipment | 5.905 | 6.142 | 5.501 | 18.330 | 15.836 |
| Data Processing and Software | 6.111 | 6.288 | 6.288 | 18.623 | 15.578 |
Peoples Bancorp Inc. (PEBO) - Business Model: Revenue Streams
Interest income from loans and mortgages
For the third quarter of 2024, Peoples Bancorp reported total interest income of $133.6 million, with interest and fees on loans and leases contributing $116.5 million. This reflects an increase from $109.0 million in the third quarter of 2023. The net interest margin for the same period was 4.27%, compared to 4.70% in the previous year, impacted by higher funding costs.
For the first nine months of 2024, total interest income reached $391.9 million, up from $314.2 million for the same period in 2023. The increase was primarily attributed to higher market interest rates and additional income from the Limestone Merger.
Non-interest income from fees and service charges
Total non-interest income for the third quarter of 2024 was $24.8 million, a modest increase from $23.2 million in the same quarter of the previous year. The components of non-interest income included:
| Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) |
|---|---|---|
| Electronic banking income | 6,359 | 6,466 |
| Trust and investment income | 4,882 | 4,288 |
| Deposit account service charges | 4,520 | 4,516 |
| Insurance income | 4,271 | 4,250 |
| Lease income | 1,827 | (66) |
| Mortgage banking income | 1,051 | 237 |
| Other non-interest income | 2,293 | 2,452 |
For the first nine months of 2024, total non-interest income increased to $74.3 million, compared to $63.3 million in the same period in 2023, showing a growth of approximately 17%.
Investment income from asset management services
Peoples Bancorp's trust and investment income, which includes fiduciary income, brokerage income, and employee benefit fees, totaled $4.9 million in the third quarter of 2024. This is an increase from $4.3 million in the same quarter of 2023. For the first nine months of 2024, trust and investment income reached $14.5 million, up from $12.8 million year-over-year.
The growth in trust and investment income is largely driven by an increase in assets under administration and management, reflecting the company's strategic focus on asset management services.
Article updated on 8 Nov 2024
Resources:
- Peoples Bancorp Inc. (PEBO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Peoples Bancorp Inc. (PEBO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Peoples Bancorp Inc. (PEBO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.