We recap regional bank earnings across USB, PNC, TFC, FITB, MTB, KEY, CFG, and RF.

Regional banks delivered broadly strong 1Q26 results, with net income growth that largely exceeded expectations, driven by YoY expansion across both net interest and noninterest income. NII continued to grow on the back of fixed-rate asset repricing, favorable funding costs, and a notable acceleration in commercial loan growth, and several banks revised full-year NII guidance upward. Fee income was also impressive, with double-digit YoY growth in markets-driven lines such as investment banking, trading, and wealth management, and management teams maintaining a constructive outlook heading into 2Q26.

Asset quality remains sound, with NCO and NPL ratios continuing their YoY improvement trajectory, driven in part by further stabilization in the CRE portfolio, while consumer credit held up well. NDFI exposures— of which private credit/BDC lending comprise a smaller subset—appear manageable and prudently structured, with banks clarifying the nature of the exposures. Management teams expressed confidence that losses within private credit portfolios will remain contained and below general C&I levels.