With interest rates higher, banks now hang on SBA loans. (Tampa Bay Area; Small Business Administration)

Some of the Bay Area's regional and local banks, hoping for fatter profits down the road, have been holding onto their SBA loans instead of selling them on the secondary markets.

First Union National Bank of Florida, SouthTrust Bank of West Florida and St. Petersburg-based Republic Bank are all currently holding their SBA loans in a trend that has surfaced as interest rates have climbed.

These banks don't have to sell off the loans because deposits have been rising - either because of acquisitions or thanks to the return of the popularity of CDs. In turn, those excess deposits mean the banks have the liquidity they need and the capital on hand to make loans, SBA or …