Robust growth in net interest income, combined with a lower provision for loan losses, helped boost Webster Financial Corp.'s profits to a record $62.4 million in the third quarter, 26% higher than a year earlier.
As you'll see from this list, regional banks are doing a better job bolstering their reputations than the big banks are, according to the 2017 American Banker/Reputation Institute Survey of Bank Reputations.
Even with net interest margins improving, banks are reluctant to raise rates on deposits until more floating-rate loans reprice. But how long can they wait before depositors start demanding higher yields?
Creative growth strategies are helping banks with $10B to $50B of assets — including Webster and TCF — improve profitability. These ‘tweeners’ deal with tougher regulations than smaller competitors without the scale larger ones have to absorb the expense.