Regional banks

The two banks, which plan to complete their merger by early fall, have little geographic overlap, so they can keep lending teams in place and push for immediate loan growth, according to Craig Dahl.

The cold, hard truth of bank mergers is that rivals often steal top producers and convince customers the bigger bank won’t care about them anymore. The CEOs of the merging banks explain their retention efforts.

A big decrease in noninterest income outweighed cost controls during the first quarter.

The Providence, R.I., bank reported increases in most fee-based lines and loan categories, and it continued to add deposits through its new digital franchise, Citizens Access.

Tens of millions of dollars of M&A costs and a decline in mortgage activity offset higher loan income in the first quarter at the two banks, which also offered a timeline for their rebranding and shareholder votes.

CEO Andy Cecere acknowledges that other banks have tried to broaden customer relationships and selectively expand into new markets before and struggled. But the sophistication of today’s online and mobile services could make all the difference this time, he says.

Asked whether the BB&T-SunTrust deal had sparked a desire to pursue deals, Andy Cecere emphasized a focus on digital upgrades and opening branches in new markets.

The Minneapolis bank reported mid- to high-single-digit improvement in those categories, but total loan growth was curbed by declines in CRE and other credit types.

The Dallas regional assured analysts that it has ample sources of liquidity to fund its expected loan growth.

The bank’s CFO says it has enough liquidity to meet loan demand in the short term, but how long can it keep its loan-to-deposit ratio below 100%?