Commercial lending

At Fifth Third, Synovus and Zions, third-quarter loan growth and improved outlooks indicate that businesses are finally more open to borrowing. Industrywide data further suggests “a much hoped-for rebound” has begun, according to analysts at Piper Sandler.

Strong growth in loans to private equity and venture capital firms fueled a 74% increase in third-quarter profits — and helped the New York bank hit a new milestone.

Wells Fargo beat analysts’ expectations for third-quarter profit, another positive sign for Chief Executive Charlie Scharf’s turnaround efforts, but expenses were higher than anticipated and loans fell.

Allowing the Small Business Administration to originate, rather than just guarantee, loans would provide much-needed capital to startups and mom-and-pop shops that many banks, credit unions and other lenders view as risky credits.

The announcement of a new loan marketed by JPMorgan Chase and tied to the Secured Overnight Financing Rate raises hopes that the leveraged-loan market is finally making a real attempt to ditch Libor.

Commercial borrowers are leaning more often on alternative lenders that provide better speed and flexibility. At the same time, some banks are turning their backs on what has long been a bread-and-butter business.

The acquisition of Sabal Capital Partners, which has been growing its footprint in commercial mortgage-backed securities lending, will help the Alabama bank build out its capital markets business.

The Cincinnati bank, which last month closed its purchase of the health care lender Provide, has raised its estimate for the unit’s 2021 loan volume.

Banks that embraced their role as a conduit for Paycheck Protection Program loans were likelier to take more risk elsewhere, according to new research by three accounting professors. “Anytime you have that amount of money flowing through the bank, it’s going to affect behavior,” one of the authors said.

On Jun. 30, 2021. Dollars in thousands.