Should TRMK's earnings fall below the peer median on a consistent basis due to an inability to find sufficient operating scale or due to a truly much less asset sensitive
position relative to peers, Fitch could take negative rating action.
The firm said it anticipates the group's earnings will lag the large regional peer group as rates rise, since balance sheets appear much less asset sensitive
based on both quarterly disclosures and regulatory data.
Second, if you are too asset sensitive
, consider reducing your existing holdings of fixed rate bonds.
The effect of changes in the slope of the yield curve on net interest income may also depend on whether a bank is asset sensitive
or liability sensitive.
Fitch expects earnings will remain in line with rating peers, as moderately higher credit costs will likely be more than offset by a higher net interest margin (NIM) due to FNNI's asset sensitive
Our asset sensitive
position is positioned to actually take advantage of a mildly rising rate environment quite nicely.
Our team's focus and strategic positioning drove significant improvement over the prior quarter as we continue to reap the benefits of our asset sensitive
balance sheet and start to realize the synergies from the Sabadell acquisition following the conversion in mid-October.
Management attributes the increases in Bank Mutual's net interest margin to an overall interest rate risk exposure that is asset sensitive