Regional Banks Report Margin Gains as SBA Lenders Brace for Shutdown Impacts

Most large regional banks reported third-quarter net interest margin expansion and expect further improvement amid anticipated rate cuts, S&P Global Market Intelligence found. Among banks with $100 billion to $1 trillion in assets that reported third-quarter earnings between Oct. 15 and Oct. 24, nine out of 10 posted sequential NIM gains, driven by fixed-rate asset repricing and stable deposit costs.

Another S&P article discussed how preferred lenders under the Small Business Administration’s 7(a) program are preparing for potential disruptions if the government shutdown extends beyond a month.