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.

M&A

Banner to buy Pacific Financial, boosting presence in Northwest

Banner Bank is poised to merge with Bank of the Pacific in an all-stock deal valued at $177 million. The two Washington-based commercial banks both have branches in Washington and Oregon.

By Nathan Place
National Reporter

May 1
Commercial lending

C&I loan growth is surging. Are private credit woes the driver?

The recent uptick in commercial-and-industrial lending is the result of disruption in the private credit sector, one economist argues. Bank analysts say the upheaval in private credit is one factor among many.

By Allissa Kline
Reporter

April 30
Earnings

Solid credit numbers boost Cullen/Frost's bottom line

The San Antonio-based bank reported annual declines in net charge-offs and nonaccrual loans, extending a run of solid credit-quality trends at Texas-based regional banks.

By John Reosti
Reporter

April 30
Deposits

Santander pulls in US deposits while waiting for deal to close

The Spanish banking giant is seeing improvement in its U.S. business, which is set to expand significantly if its pending acquisition of Webster Financial gets approved.

By Allissa Kline
Reporter

April 29
Artificial intelligence

OpenAI will embed staff at Customers Bank under multiyear deal

The Pennsylvania-based regional bank said it will collaborate with OpenAI to deploy artificial intelligence across its commercial banking operations. OpenAI technical teams will be onsite to build custom AI capabilities.

By Allissa Kline
Reporter

April 27
BankThink Even amended, the Hagerty-Alsobrooks bill remains the wrong answer

The deposit insurance reform bill would give credit unions an on-ramp to competing for commercial accounts. A better alternative would be to reactivate the Transaction Account Guarantee program as needed.

April 27

Preston Kennedy
Earnings

Flagstar pares back earnings outlook amid elevated CRE payoffs

The Long Island-based regional bank, which has been in turnaround mode for two years, reduced its earnings per share guidance for 2026 and 2027. It cited an expected decrease in net interest income due to higher levels of payoffs and paydowns in commercial real estate.

By Allissa Kline
Reporter

April 24

Resources

The latest American Banker research and discussion on Commercial Banking

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.