Commercial lending

A reserve release helped offset lower net interest income, reflecting the California company's efforts to exit businesses that hurt its bottom line last year.

On March 31, 2017. Dollars in thousands

On March 31, 2017. Dollars in thousands

Net interest income rose 7% and margins widened 17 basis points at the Wayzata, Minn., company.

Now that the Federal Reserve has raised short-term rates four times in the past 18 months, all eyes are on deposit costs as banks seek to keep pricing low and fatten margins. But that effort is complicated by the fact that banks must prepare for the unwinding of the Fed's balance sheet and consumers' rapid adoption of mobile deposits.

A double-digit increase in the size of the Connecticut company's commercial book factored heavily into its improved second-quarter results.

The Rhode Island bank plans to build out its fee income capabilities, expand C&I lending in the Southeast, renegotiate vendor contracts and take other steps to produce expense cuts and revenue enhancements of at least $90 million.

The Cincinnati company reaped the benefit of the latest round of interest rate hikes, as a higher net interest margin and lower costs helped overcome the drop in lending.

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But the Connecticut company says the efficiencies of its recent acquisition of Suffolk Bancorp will begin to be realized soon.