Paul Davis

As expenses get harder to tighten and net interest income remains strained, fee income becomes more important for banks.

BB&T and KeyCorp's quarterly results showed how more diversified regional banks can turn to their insurance sales, investment banking and other fee generators for backup until interest rates improve. Whereas the smaller Huntington Bancshares needed strong loan growth in a quarter (and year) when fees fell.

Royal Bank of Canada is ready to take another shot at U.S. banking, agreeing to buy City National in Los Angeles.

Kelly King, BB&T's chairman and chief executive, expressed frustration with the interest rate environment. It's "challenging to get expenses down today."

Some leaders of large community banks like are eager to line up the next big deal. Others seem content to steal lenders and open offices after several years of acquisitions.