America’s top bankers signaled the economic recovery has held up better than they expected and should continue in the new year, releasing some of the stockpiles of cash they had set aside for a wave of soured loans.

The period capped a tumultuous 2020, when a sharp decline in economic activity in the spring gave way to an uneven recovery that has lifted some consumers and businesses while many others continue to struggle.

Executives said they have grown more confident that vaccines will get people back to work and that fresh stimulus—and the potential for more under President-elect Joe Biden—will help consumers and businesses this year.