The outlook remains positive. Trends from 2025 expected to continue into 2026. The steepening of the yield curve is very positive for banks. If the Fed cuts another 25-50 bps by June, that's added fuel for bank stocks, particularly regionals in 2026.

The regulatory environment has changed dramatically and quickly from the prior administration. The Basel III Endgame proposal is the biggest change yet to come. Proposals so far are very constructive and supportive. If Basel III is similarly supportive, it should boost profitability and valuations for the group.

Yes, regionals will catch up to big banks in 2026 due to the steepening yield curve leading to better spreads. Regionals generate a greater percentage of revenue from net interest income, giving them a leg up. Banks will get back to lending more aggressively, with loan growth surprising to the upside, particularly in Commercial & Industrial and Commercial Real Estate.