Like bigger rivals, banks with about $1 billion of assets or less showed better-than-expected growth in fee income and lending in the second quarter.

Though analysts had expected higher interest rates would repel borrowers and cut into quarterly earnings, the hot economy helped mitigate the downturn.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.