As loan demand continues to grow in St. Louis, some commercial banks are starting to sing the blues as a battle heats up for deposits needed to fund the asset growth.

Led by a 6.02% promotional yield offered on money market deposits by $800 million Southwest Bank of St. Louis, deposit rates in the Gateway City have risen above comparable rates in other parts of the country. And some analysts say the net result will be a narrowing of net interest margins.

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