2Q26 Preview: Stock Positioning, Will SMID Bank Stocks Jump Like Brunson Or Anunoby?

Research evidence excerpt

2Q26 Preview: Stock Positioning, Will SMID Bank Stocks Jump Like Brunson Or Anunoby?

29 June 2026

US SMID Cap Banks

2Q26 Previews

▪ East West Bancorp: Model Updates/2Q26 Preview

▪ First Citizens: Model Updates/2Q26 Preview

▪ First Horizon: Model Updates/2Q26 Preview

▪ Flagstar Bank NA: Model Updates/2Q26 Preview

▪ Pinnacle Financial: Model Updates/2Q26 Preview

▪ Western Alliance: Model Updates/2Q26 Preview

▪ Zions: Model Updates/2Q26 Preview

Other research

▪ US Large Cap Banks: 2026 CCAR Results Mostly Positive; CFG The

Biggest “Winner”

▪ US SMID Cap Banks: Bank’s NDFI Exposure and Commentary; Views

and Regulatory Responses From Fed’s Bowman

▪ Flagstar Bank NA: Quick Takes: NYC Mayor Mandani’s Rent Freeze

Confirmed, How Is FLG Positioned?

▪ Flagstar Bank NA: Quick Takes: Mamdani’s Housing Proposals Easing

Stress On Rent Regulated Landlords?

▪ Western Alliance: Investor Day Recap – Valuation Discount To

Fundamentals, Credit Inflection Key Catalyst

▪ Western Alliance: Why Shares Are Selling Off (Again), 10Q Credit

Updates

Top picks into earnings: EWBC and PNFP

EWBC/East West Bancorp

▪ Balance sheet growth will be solid and remain relatively stronger vs. most

peers. While there may be some NIM weakness in 2Q, net interest income

is still trending towards the high end of the FY26 guide on strong loan

growth and credit remains strong. We like shares, as EWBC should

perform relatively better than most peers across various macro

scenarios.

PNFP/Pinnacle Financial

▪ Sentiment remains weak on PNFP despite growth beating expectations

in both 1Q and 4Q (from each legacy bank). 2Q is set up to deliver strong

loan growth and revenue producer hires are trending strong. A solid 2Q

should alleviate some growth concerns and improve sentiment in 2H26.

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