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.
Setting aside the loan growth and revenue issues, net interest margins continue to hold up well, and many of the large banks have positioned the balance sheet to be more
asset sensitive and thus generate a net benefit from a rising interest rate environment.
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 profile.
Our
asset sensitive position is positioned to actually take advantage of a mildly rising rate environment quite nicely.
As the balance sheet remains
asset sensitive, a favorable earnings trend should result as rates rise.
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.
Earnings continue to be under pressure mainly because of elevated capital levels and PBCT's
asset sensitive balance sheet.
Management attributes the increases in Bank Mutual's net interest margin to an overall interest rate risk exposure that is
asset sensitive.
The Bank has positioned itself to be
asset sensitive.
