Lending pulse: Strong momentum into quarter end

Research evidence excerpt

Lending pulse: Strong momentum into quarter end

Accessible version

US Banks

Lending pulse: Strong momentum into

quarter end

Industry Overview

Fed H.8: lending backdrop firm 28 June 2026

Fed H.8 data (week ending 6/17/26) showed steady loan growth with total loans up 7.4% Equity

YoY vs 7.0% at the end of 1Q; all categories ex. NDFI showing improved growth vs 1Q. United States

On a QTD basis loan balances up 1.28% vs 1.57% average growth reported for 2Q over Banks

the last 4 years. Strong loan growth combined with elevated interest rates (positive for Ebrahim H. Poonawala

back book repricing) bodes well for net interest income growth. Research Analyst

BofAS

Deposit growth comes at a cost +1ebrahim.poonawala@bofa.com646 743 0490

Total deposits up 6.3% YoY vs 5.0% at the end of 1Q26. However, the quality of Brandon Berman

deposits becoming more important as the funding backdrop turns more competitive. ResearchBofAS Analyst

Management teams have noted that deposit competition is ramping and pricing +1 646 855 3933

brandon.berman@bofa.com

pressure is building, suggesting deposit growth remains available but likely comes at a

Gabriel Angelini

higher cost (Exhibits 3-15). However, management updates indicate that funding cost Research Analyst

pressures remain manageable, we expect NII outlooks to hold. BofAS

+1 646 855 3081

gabriel.angelini@bofa.com

Relevant research: US Mid-cap Banks: Key debate: Deposit margin erosion

Michael Campos

Research Analyst

Exhibit 1: Loan growth momentum stabilizing while YoY trends improve BofAS

Week-over-week loan growth, trailing 6 weeks, all commercial banks +1 646 855 3912 michael.c.campos@bofa.com

Loans: Week-over-Week Growth

YoY YoY

(as of (as of Growth

Week Ending 5/13/26 5/20/26 5/27/26 6/3/26 6/10/26 6/17/26 3/25/26) 6/17/26) Trend ¹