A steeper yield curve will help the banks. They pay a lower short term rate on deposits and lend it out at a higher rate. However, if the yield curve gets too steeps this will decrease demand for loans. Like everything else, it's a balancing act. I believe that the yield curve will steepen gradually and will be positive for regionals for the next two years or so. Thus, I'm long term bull for SNV. If we see a dramatic increase in rates and a drop off in homebuilding and business expansion, then all bets all off. The likely hood of that is low in my opinion.
Rising rates means rising income. Assuming everything else remains the same.
Just like the idiots that believe raising the minimum wage, giving people more money to spend will increase jobs and standard of living.. What idiots.. Everything else does not remain the same, cost of goods and services goes up and more poor people are created.
adam where are you referencing this 1.8B. I hope your not taking that from yahoo finance. One thing you have to note is the 986M of tarp loans that was paid off this quarter will not be reflected until octobers earnings. They are also paying additional payables in the amount of 90m. so realistically SNV only really now has around 724M in long term debt. Still a buy long term on paying down all that debt