Banks: H.8 Loans + Interest Rate Update (7/6)

Research evidence excerpt

Banks: H.8 Loans + Interest Rate Update (7/6)

t increase in loans 2QTD, according to H.8 data,

is nondepository financial institutions loans (NDFI), which is up 4.9% unann. thus far in the quarter,

following NDFI growth in 1Q26 of 6.0%. NDFI growth is up 4.6% unann. for large banks (compared

to up 6.1% in 1Q), and up 6.9% unann. for small banks (compared to 5.7% in 1Q). Consumer loan

growth is 0.4% unannualized 2QTD, following consumer growth in 1Q'26 of 0.3%, largely driven by

a 0.6% increase from large banks (vs. -0.1% in 1Q'26), while small banks are trending down 0.5%

unann. (vs. up 2.0% in 1Q). C&I loan (excl. NDFI) is above consumer loan growth with data up 4.3%

sequential growth 2QTD above the 10-yr historical 2QTD of 1.7%, following C&I loan growth (excl.

NDFI) in 1Q'26 of 2.4%. C&I loan growth 2QTD (excl. NDFI) is being driven by large banks (up 5.0%

unann., compared to 3.1% in 1Q26) while small banks are up (2.8% 2QTD compared to up 0.9%

in 1Q26). C&I loan growth (incl. NDFI) is up 4.5% unannualized 2QTD above 10-yr historical 2QTD

trend of 2.3%, driven by large banks (up 4.8% unann. compared to 4.4% in 1Q26) and small banks

(up 3.6% 2QTD compared to up 1.9% in 1Q26). Residential real estate loans are flat unann. thus

far in the quarter, following resi growth in 1Q'26 of 0.1%. Resi growth is down 0.3% sequentially for

large banks (compared to down 0.2% in 1Q), and small banks are up 0.7% unann. (compared to David Chiaverini, CFA * | Equity Analyst

0.7% in 1Q). CRE loan growth has been positive, with data showing an increase of 0.8%, below the +1 (212) 778-8554 | dchiaverini@jefferies.com

10-yr historical 2QTD increase of 1.2%, following CRE loan growth in 1Q26 of 0.8%. For small banks, Daniel T. Fannon * | Equity Analyst

CRE loans are up 0.7% unann.