SLOOS Lending Standards Stable to Modestly NCO Rates

Equity Research USA | Large-Cap & Mid-Cap Banks August 4, 2026

SLOOS: Lending Standards Stable to Modestly Exhibit 1 - SLOOS C&I Underwriting Terms vs. NCO Rates Easing; Loan Demand Trends Mixed 80 3.0

July's Senior Loan Officer Opinion Survey (SLOOS) showed stable-to-modestly 40 2.0

easing lending standards versus the April survey, alongside mixed demand 20

trends. C&I net demand from large- and medium-sized firms turned positive -20 0.5

and accelerated to 16.1%, up from 4.8% in the prior quarter, while C&I lending -40 0.0 2Q91 4Q93 2Q96 4Q98 2Q01 4Q03 2Q06 4Q08 2Q11 4Q13 2Q16 4Q18 2Q21 4Q23 2Q26

standards were little changed. CRE net demand remained negative, holding near Recession Large & Medium-sized Firms C&I NCO Rate . Source: Jefferies Research, Federal Reserve

prior quarter levels, while CRE lending standards flipped to modest net easing. Exhibit 2 - SLOOS CRE Underwriting Terms vs. NCO Rates 100 3.5

-40 0.0 2Q91 4Q93 2Q96 4Q98 2Q01 4Q03 2Q06 4Q08 2Q11 4Q13 2Q16 4Q18 2Q21 4Q23 2Q26

Recession CRE Underwriting Terms CRE NCO Rate . Source: Jefferies CRE Research, Federal Reserve Loan Demand

. C&I lending standards were unchanged for large/medium firms and continued to tighten modestly for small firms, while loan demand accelerated across both segments. Standards for large/medium firms were net neutral in 2Q'26, ending six consecutive quarters of tightening, while small firms saw the 17th straight quarter of tightening. On a net basis, 0.0% of banks tightened standards for large/medium firms (vs 8.1% prior), while 1.8% of banks reported tighter standards for small firms (vs 6.6% in April). C&I loan demand strengthened for a fourth straight quarter for large/mid-sized firms, accelerating to 16.1% from 4.8% sequentially, while demand turned positive for small firms at 3.6% (vs 0.0% prior) after two quarters of net neutral readings.

CRE lending standards saw modest easing, and loan demand weakened further. Overall CRE lending standards shifted to net easing after modest tightening the prior quarter. On a net basis, 6.9% of banks reported easing CRE lending standards, compared with 0.5% reporting tighter standards previously. CRE loan demand weakened for a second consecutive quarter, with a net David Chiaverini, CFA * | Equity Analyst | 4.3% of banks reporting weaker demand vs 1.7% reporting weaker demand in the prior quarter. Brian Violino, CFA * | Equity Analyst Residential real estate lending standards eased modestly, while loan demand weakened further. |

RRE lending standards shifted to modest net easing after modest tightening in the prior quarter. On Frank Williams * | Equity Analyst a net basis, 1.6% of banks reported easing underwriting standards, compared with 0.1% reporting |

tighter standards in the prior survey. RRE loan demand declined for a third consecutive quarter, Brooks Dutton * | Equity Associate with a net 12.1% of lenders reporting weaker demand vs 3.1% reporting weaker demand in the prior |

survey. Max Asteris, CFA * | Equity Associate |

Please see analyst certifications, important disclosure information, and information regarding the status of non-US analysts on pages 8 - 12 of this report. * Jefferies LLC / Jefferies Research Services, LLC

Large-Cap & Mid-Cap Banks Equity Research August 4, 2026

Other consumer lending standards tightened modestly, while loan demand remained weak but showed sequential improvement. Other consumer loans saw modest tightening in underwriting standards. On a net basis, 0.7% of banks reported tighter standards, compared with 1.8% reporting tighter standards in the prior survey. Credit card standards tightened further, with a net 6.7% tightening vs 2.0% tightening previously. Consumer loan demand declined for the 16th consecutive quarter but improved sequentially, with a net 4.5% of banks reporting weaker demand vs 9.5% in the prior survey.

Banks also answered special questions on the current level of lending standards relative to historical ranges. For C&I loans, banks reported standards are currently easier than or near the midpoint across most loan types, with large banks citing easier-than-midpoint standards for syndicated loans to both investment-grade and below-investment-grade…