Deposits

Banks eagerly raised their prime rates after the Federal Reserve’s latest rate hike, but the debate about how they should react on the deposit side is robust, and conversations are beginning on how to respond on the investment portion of the balance sheet. Here is a sample of the lively discussion that is emerging.

The New York bank will double in size while gaining greater access to Long Island and low-cost deposits that should come in handy as interest rates rise.

Traditional banks may need to think twice about putting off higher rates on CDs and other deposit products. That’s because freer-spending online banks are adding deposits faster than they are, and more Fed rate hikes are expected to fuel that trend.

Webster Financial was unable to hit its loan and deposit goals in Boston last year as it prioritized relationship building over cut-rate pricing.

Citizens Financial Group in Providence, R.I., reported bigger profits in the fourth quarter on the strength of loan growth and improvements in its loan yield.