WASHINGTON — Banks are still feeling negative effects from last year's sudden rise in medium- and long-term interest rates, but plenty of signs in the Federal Deposit Insurance Corp.'s latest industry update continue to point to a lending resurgence in the near future.

Institutions took a definite hit in the first quarter as the higher rates — which took effect in the second quarter of 2013 — have caused mortgage refinancing to dry up, posing an immediate profit challenge. But returning loan growth — particularly at community banks — is still persistent in other categories that had languished following the crisis, offering hope that the credit market is on its way again to producing revenue growth.

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