Regional banks look forward

In this weekend's edition of Bank Vault, we're taking a look at how regional and mid-sized banks are faring.

Sign up here?to receive American Banker's complete Daily Briefing newsletter — delivered to your inbox every morning.

Why some banks are realizing their once-unrealized losses: More banks are selling their underwater bond portfolios at a loss, crystallizing what were previously losses on paper only. Though the maneuver brings some short-term pain, the banks expect to make the money back over time.

Read more: In latest shake-up, Truist expands its executive leadership team.

Banks eager to resume M&A predict 'wave of consolidation' in 2024: Many banks tapped the brakes on mergers and acquisitions this year amid economic and regulatory challenges. But executives at banks with a history of dealmaking, like Ameris Bank , SouthState Bank and Prosperity Bank , say conditions could be right for them to return to buying mode next year.

Banker of the Year: PNC's Bill Demchak. 2023 proved to be a rocky year for large regional banks. But under CEO Bill Demchak's guidance, the Pittsburgh-based company has navigated the turmoil better than many of its peers.

Early cracks start to show in banks' commercial loans: Credit problems in business loans have risen in recent months, as companies that are in a weak financial position have started closing up shop. The difficulty in gauging which banks will face the most trouble is prompting many investors to stay away from the sector.

SBA 7(a) loans are getting smaller: Since the end of the U.S. Small Business Administration 's 2022 fiscal year, the average loan size in its flagship program has dropped more than six figures. The addition of three new nondepository lenders could further drive down this figure.

Know a dynamic woman leader in the payments industry? It’s time to?apply for the annual Most Influential Women in Payments awards.?