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?
Huntington, Wintrust and Eagle reported extremely low quarterly chargeoff ratios, and their CEOs say they remain confident about the future. But, as one observer says, "ultimately some sector is going to get overextended."
Huntington Bancshares says it is especially well positioned to benefit from a commercial lending boom that could accompany a revival of U.S. heavy industry, but other lenders also say they are upbeat.
