Commercial Banking News, Strategy & Risk Analysis

American Banker's commercial banking coverage explores how banks serve middle-market and corporate clients, focusing on issues such as interest-rate volatility, regulatory pressure, and intensifying competition for deposits and credit relationships. This section focuses on balance-sheet strategy, commercial lending, treasury and cash management, risk governance, and the technologies reshaping relationship banking.

Learn how institutions are recalibrating growth expectations, managing credit exposure, and using payments and treasury capabilities to deepen client relationships while preserving profitability.

Commercial banking is under structural pressure from higher funding costs, uneven loan demand, and increased supervisory scrutiny. Banks are being forced to prioritize relationship depth, disciplined credit selection, and non-interest income generation rather than balance-sheet expansion alone.

Stablecoin

'Pie is getting bigger faster': Customers CEO on stablecoins

The Pennsylvania-based bank will continue to lean into its digital assets payment platform now that the GENIUS Act has become law. Its incoming CEO says he's not concerned about new entrants.

By Colin McNamara
Reporter

July 28
Earnings

First Citizens benefits from return of spread income growth

Though loan growth was soft in the second quarter, the Raleigh, North Carolina, regional bank is seeing some hope for a second-half pickup. Meanwhile, it benefited from a 2% gain in net interest income.

By John Reosti
Reporter

July 25
Earnings

Flagstar's losses shrink as bank looks toward profitability

The Long Island-based company's second-quarter net loss was the seventh consecutive quarter in which it has reported a net loss. CEO Joseph Otting remained optimistic Friday about the bank's future, saying it should return to profitability in the fourth quarter.

By Allissa Kline
Reporter

July 25
Earnings

Not over yet: Office loans are still inflicting pain

Eagle Bancorp in Maryland took a major quarterly loss due to challenges in its office loan portfolio. It's one of many banks working to trim down their commercial real estate loan books.

By Catherine Leffert
Reporter

July 25
M&A

Pinnacle, Synovus to merge; deal would create $116B bank

The two Southeast banks agreed to combine in a transaction valued at $8.6 billion. Synovus CEO Kevin Blair would be chief executive of the combined bank, but a slim majority of board members would come from Pinnacle.

By Allissa Kline
Reporter

July 24
Flagstar Bank

In rare move, Flagstar seeks to dissolve its holding company

Flagstar Bank wants to merge its holding company into the bank, which would cut $15 million in annual expenses and eliminate regulatory oversight by the Federal Reserve, leaving the OCC as its primary regulator. The bank's CEO, Joseph Otting, is a former comptroller of the currency.

By Allissa Kline
Reporter

July 24
2025 Top-Performing Banks

Lending niches helped these banks to outperform their peers

Among banks with between $10 billion and $50 billion of assets, those that targeted narrow lending markets rose to the top.

By Catherine Leffert and Colin McNamara

July 24

Resources

The latest American Banker research and discussion on Commercial Banking

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Commercial Banking: Key Questions & Analysis

How are banks repositioning middle-market commercial banking in growth markets?

Banks are selectively expanding into high-growth regions as well as refining relationship coverage models for middle-market clients. Where competitive pressure is highest and regional-bank presence is high, institutions often look to industry specialization and treasury-led engagement to set themselves apart.

What is driving commercial clients’ treasury expectations, and how are banks responding?

Treasury management and payments capabilities are increasingly central to commercial client retention. Banks can look to grow in areas like automation, integration with client systems, and advisory services to respond to changing expectations.

How do banks apply AI in commercial and business banking workflows?

AI applications are often focused on boosting internal efficiency. This can include customer service support to better handle client inquiries and improve relationship management enablement. Banks are prioritizing staff-facing use cases, such as AI assistants, over customer-facing solutions for now.

What do recent earnings signals imply for commercial banking credit posture?

Improved profitability can be driven by lower provisions and stronger margins has eased short-term pressure. However, credit risk remains a focus. Banks are balancing cautious underwriting with growth opportunities.

How is commercial real estate risk intersecting with broader commercial banking exposure?

Commercial real estate continues to be a key risk. Bankers are scrutinizing real estate portfolios concentrated in offices and other property types for stress. Banks are differentiating between stabilized assets and segments facing refinancing and valuation pressure.

How could changes to deposit insurance policy affect commercial operating accounts?

Proposals to expand deposit insurance coverage for business accounts could influence how commercial clients allocate operating balances. Banks will look to monitor potential impacts on pricing, retention, and relationship structure.