Even with net interest margins improving, banks are reluctant to raise rates on deposits until more floating-rate loans reprice. But how long can they wait before depositors start demanding higher yields?
The California company's credit issues eased some in the first quarter, though earnings were down from a year earlier due to charges tied to cost cutting and reductions in three loan categories.
Working primarily with community banks, Promontory Local Credit will provide second-lien loans to small firms, potentially increasing their available credit by 50%.
Executives at BB&T, KeyCorp and Citizens are milking commercial lending niches and balancing cost control with new investments while waiting for more rate hikes to fatten margins.
The North Carolina company reported lower net income from a year earlier after extinguishing nearly $3 billion in FHLB advances. BB&T also reported more regulatory charges as it deals with a consent order.
