BB&T

Executives at BB&T, KeyCorp and Citizens are milking commercial lending niches and balancing cost control with new investments while waiting for more rate hikes to fatten margins.

The North Carolina company reported lower net income from a year earlier after extinguishing nearly $3 billion in Federal Home Loan bank advances. BB&T also reported more regulatory charges as it deals with a consent order.

Business confidence remains high, but Fed data shows commercial borrowing actually decelerated during the first quarter. Fortunately for banks, rate hikes have fattened margins.

Community banks, big commercial banks and Wall Street investment houses are finding common ground in small-business loan funds that help Main Street, minimize potential losses on credit extended to young companies and sometimes lead to new business prospects.

So-called performance-share units are pushing aside stock options as the preferred long-term incentive pay for bank executives. Many investors and regulators fear that options can encourage reckless conduct and have other shortcomings, though options still have supporters.

More and more banks are using advanced geographic information systems to help make decisions around branch consolidation, lending in low-income communities, monitoring fraud and even deploying talent.

Regional banks don’t pose risks to the financial system that have caused concern among policymakers, executives of 18 banks told top Republican and Democratic lawmakers in Congress.

Federal and state regulators on Friday announced that BB&T has agreed to a consent order over weaknesses in its Bank Secrecy Act and anti-money-laundering program.

Profit surged at BB&T in Winston-Salem, N.C., during the fourth quarter, driven by various acquisitions and growth in business lending.