There’s no doubt about it: big U.S. banks enjoyed a banner year in 2025, with the six largest financial institutions up an average 42% last year, mostly thanks to continued high interest rates, robust merger and acquisition activity, and a friendlier White House, regulatory-wise, than the previous four years.

In fact, the average return of the Big Six banks last year was 45.51%, with a median of 41.22%. Compare that to the much vaunted Magnificent Seven tech stocks, which averaged only 22.74%, with a median of just 13.09%.

That’s not a fair fight, for 2025, at least, but signs are appearing on the horizon that bank stocks may not carry the day (or the year) again in 2026. Regulations are starting to turn against them, loan demand is softening, and margins are peaking.

With that in mind, here are the three big banks to sell now.

There are a few reasons why the big banks may have peaked. For starters, President Donald Trump’s call for a 10% rate cap on credit cards is going over like a lead balloon in big banking circles, but Main Street consumers are on board.

Additionally, early indications for January’s bank earnings season note that net interest margins have peaked, with rate cuts now a forward-looking risk. Bank loan demand is also softening, particularly in commercial real estate and small business lending, and sector expenses are rising, driven by compliance costs, technology investment, and wage inflation. AI implementations have yet to yield the major operational savings Wall Street had predicted.

Lastly, buy-now-pay-later (BNPL) competitors like Affirm and Klarna are eating into bank revenues, so much so that banking’s big boys are creeping steadily into the BNPL realm.

Consequently, while big banks aren’t in big trouble, investors are demanding growth in an environment where growth is getting harder to find. For larger U.S. financial institutions, that mismatch between expectations and reality is where sell risks are rising.

Three Banks To Shed Right Now

While any major portfolio selloff decisions should be weighed with a trusted financial advisor, these bank stocks should be at the top of any “sell now” list.

Bank of America

Year-to-date performance: -4.08%

Bank of America (NYSE:BAC) has started 2026 with a moderate selloff, but it has also earned some good PR after committing to match the U.S. government’s $1,000-per-child savings contribution (along with JPMorgan Chase (NYSE: JPM)).

BAC can use all the good news it can get. While the bank’s loan portfolio grew 8% in the fourth quarter of 2025, consumer lending was muted, signaling a weaker consumer appetite for household borrowing. Rising loan delinquencies and wobbly commercial loan candidates could further crimp BAC’s stock performance in 2025.

While BAC is operationally solid, skittish investors may be lowering rate-driven expectations. For instance, analysts Kelly Evans of Evercore ISI and Matthew O’Connor of Deutsche Bank have recently highlighted valuation concerns amid a slowing loan-growth backdrop in their research notes.

That adds up to a negative outlook for Bank of America “primarily due to risks associated with potential decreases in the value of bank equities and worse-than-expected asset quality performance,” Benzinga analysis confirmed. “Despite a reported EPS of $1.06 for 3Q25 outperforming expectations, the overall economic environment remains fraught with challenges that could adversely affect the financial institution’s performance.

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PNC Financial Services

Year-to-date performance: + 6.84%

Pittsburgh-based PNC (NYSE:PNC) is widely regarded as one of the better-managed regional U.S. banks, and its $1.70 per share dividend, with a 3.1% yield, certainly warrants a closer look.  

Yet, like Bank of America, Wall Street analysts are increasingly cautious about the bank’s commercial loan exposure and uncertain growth profile. According to Benzinga data, PNC Financial Services Group experienced a decline in total loan yield, dropping from 5.76% to 5.60% between 4Q25 and the prior quarter, suggesting challenges in generating interest income.

Additionally, PNC’s common equity tier 1 (CET1) ratio fell moderately to 10.6%, “indicating a potential need for caution regarding capital adequacy amidst evolving economic conditions,” Benzinga analysts noted.

While credit quality remains stable, PNC’s revenue growth has also lagged its industry peers, and expense discipline is threatened by rising technology (especially AI) and regulatory costs.

Analysts are mixed on PNC shares, with Morgan Stanley’s Betsy Graseck maintaining a Hold rating and raising the price target to $221 from $211. Meanwhile, RBC Capital Markets analyst Gerard Cassidy is sticking to an Outperform rating and raising the price target from $222 to $235. The stock is currently trading at $223 per share.

Graseck’s caution reflects investor concerns about slowing loan growth and modest net interest income growth relative to PNC’s largest competitors. While some analysts still rate PNC as a Moderate Buy, Graseck’s underweight call is a red flag for investors who may want to lock in gains and get out while the coast is clear.

Wells Fargo

Year-to-date performance: -2.75%%

Trading at $90 per share but down almost 3% year-to-date, Wells Fargo (NYSE:WFC) has signaled a specific sell-side pushback early in 2026.

The bank has come under scrutiny from the White House over rising stock buyback programs, along with other banking supernovas like Bank of America and JPMorgan Chase. Shareholders typically embrace share buyback programs, as they typically boost earnings per share, boost stock prices, and promote goodwill between companies and investors.

Now, with President Trump already cracking down on share buybacks in the defense and homebuilding sectors, analysts say banking and finance could be next in line, as the Trump administration seeks to increase banks’ lending capacity and lower fees and prices.

Those fees have been adding up. Exhibit “A” is WFC’s latest earnings report, which showed net income of $656 million for the bank’s Wealth and Investment Management division. That’s up 29% from the year-ago period of $508 million. Any move by Team Trump, most likely on the regulatory front, to pressure banks into fewer or more moderate buybacks threatens those profits.

That’s not all. WFC’s Q4, 2025 earnings were largely deemed as a “miss” among analysts. Wells Fargo shares slid 4.5% on the news as WFC reported $21.3 billion in fourth-quarter revenues, just below analyst expectations of $21.6 billion.

“Wells Fargo is facing significant challenges that could negatively impact its stock performance, including ongoing legal issues that may lead to a decline in market perception and share price,” Benzinga analysis noted. “Additionally, the bank’s capabilities to finance trading positions and grow its business have been hampered, restricting its potential to capitalize on favorable market conditions.”

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