Nearly three-quarters of the nation’s banks are vulnerable to rising short-term interest rates, with banks in the Northeast and Mid-Atlantic having the highest concentration of at-risk banks, according to a new study by Florida-based Weiss Ratings.

Banks are vulnerable to rising interest rates, due largely to liabilities with rates scheduled to reprice within one year that were far greater than assets with rates scheduled to reprice within one year, according to a statement. This measure indicates that banks will be at a disadvantage in a rising interest rate environment, as their cost for deposits and other borrowings rise more quickly than their income on loans and investments of a similar maturity.

Boston-based State Street Bank and Trust Co. was named among the top 10 large banks least at risk. Waterbury-based Webster Bank and New York-based First Niagara Bank are also among the top 10 large banks ($10 billion or more in assets) in the nation at risk. 

"With short-term interest rates at historic lows and ongoing speculation about when they will rise, it’s important for consumers to understand that any future rate rise will put the profitability of many financial institutions at risk," said Gene Kirsch, senior banking analyst, Weiss Ratings. "In this environment, consumers may be drawn to the highest rates paid on deposits, but they mustn’t forget the importance of financial strength when selecting a bank or thrift."