2Q26 Outlook: Constructive on Banks; Top Pick: CFG; Focus Stocks: BKU, EWBC, FLG, VLY; 2Q Trends; 1Q26 Recaps By Bank, Bank Results Stats >$10B Assets

Research evidence excerpt

2Q26 Outlook: Constructive on Banks; Top Pick: CFG; Focus Stocks: BKU, EWBC, FLG, VLY; 2Q Trends; 1Q26 Recaps By Bank, Bank Results Stats >$10B Assets

US Banks

EQUITY RESEARCH 2Q26 Outlook: Constructive on Banks; Top Pick: CFG; May 18, 2026

Focus Stocks: BKU, EWBC, FLG, VLY; 2Q Trends; 1Q26 Companies mentioned

Ticker Price Rating Target Recaps By Bank, Bank Results Stats >$10B Assets

BKU $45.22 Overweight $56.00

CFG $60.86 Overweight $75.00

What's in this report? CFR $134.70 Neutral $154.00

EWBC $119.41 Overweight $137.00 In this report, we provide (1) our banking industry outlook for 2Q26,

FBK $51.30 Overweight $65.00 including key themes supporting our continued bullish call on the group

FFIN $31.10 Neutral $34.00 and a discussion of recent bank stock volatility; (2) our updated bank stock

FLG $13.23 Overweight $16.00 calls, including our Top Pick (CFG); (3) an analysis of 2Q26 banking industry

HOMB $25.68 Neutral $30.00 trends to date; (4) a one-page summary of key guidance points for our

Prev - - $31.00 coverage with mgmt. commentary on guidance, NIM and deposit beta,

LOB $35.55 Neutral $41.00 regional economic color, and M&A; (5) an update on bank valuation; and (6)

MTB $204.90 Overweight $253.00 a recap of 1Q26 bank trends for our coverage and the industry, along with

PB $66.50 Overweight $80.00

our full bank-by-bank recaps. See page 6 for details of our price target and RF $26.66 Overweight $32.00

EPS changes included in this report (PT changes at HOMB). Report pricing VLY $12.93 Overweight $16.00

WBS $71.16 NOT RATED NA as of May 15, 2026 (unless otherwise noted).

ZION $59.63

Overweight $69.00 Signposting Prices are as of 05/15/26.

Research Analysts: Report

Dave Rochester ●U.S. Bank Coverage Comp Sheets (pp. 3-5)

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