U.S. Mid- and Small-Cap Banks: 3Q26 Earnings Halftime Stats

With 20+ banks across the industry including over a dozen regional banks having reported 3Q26 earnings, we would categorize results for the regionals as being on par with what we had expected heading into earnings. This includes (1) few surprises on balance sheet growth with loan and deposit growth each pacing in the mid-single digit annualized range, (2) few changes to banks' full year 2026 NII outlooks with little provided thus far on 2027 expectations, and (3) credit quality trends stable. Regional banks (as measured by the KRX) were largely flat so far through earnings, outperforming larger banks (BKX) which declined -2.5% and the broader markets (SPX) which declined -1.3%. That said, we would not be chasing the outperformance over the past week in regional bank stocks as we continue to take a cautious approach on the sector, tied to our view that deposit cost competition will remain intense as loan growth trends remain solid with little to suggest a slowdown in 2H26 while the forw