Dj Dir Stafford Ii Sells 800 Of Prosperity Bancshares Inc >Pb

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how regional banks stocks fared in Q3, starting with Prosperity Bancshares .

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 94 regional banks stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.

In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results.

Prosperity Bancshares

With a network of banking centers spanning the Lone Star State and beyond, Prosperity Bancshares operates full-service banking locations throughout Texas and Oklahoma, offering a wide range of financial products and services to businesses and consumers.

Prosperity Bancshares reported revenues of $314.7 million, up 3.9% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a slower quarter for the company with a slight miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.

"In the third quarter we signed a definitive merger agreement with Southwest Bancshares, Inc., the parent company of Texas Partners Bank headquartered in San Antonio, Texas. We are excited about this transaction as it significantly expands our San Antonio metro footprint with 4 additional branches and increased deposit market share, bolsters our presence in the Texas Hill Country and adds an experienced C&I lending team," said David Zalman, Prosperity's Senior Chairman and Chief Executive Officer.

Interestingly, the stock is up 9.7% since reporting and currently trades at $69.39.

Read our full report on Prosperity Bancshares here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $232.1 million, up 38.5% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 4.8% since reporting. It currently trades at $68.72.

Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.6 million, up 38.8% year on year, falling short of analysts’ expectations by 10%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

As expected, the stock is down 16.7% since the results and currently trades at $64.33.

Read our full analysis of The Bancorp’s results here.

Enterprise Financial Services

Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states.

Enterprise Financial Services reported revenues of $204.9 million, up 24.3% year on year. This result topped analysts’ expectations by 17.3%. Taking a step back, it was a mixed quarter as it also produced an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

Enterprise Financial Services scored the biggest analyst estimates beat among its peers. The stock is flat since reporting and currently trades at $55.35.

Read our full, actionable report on Enterprise Financial Services here, it’s free for active Edge members.

Triumph Financial (NASDAQ:TFIN)

Originally focused on traditional banking before pivoting to serve the transportation sector, Triumph Financial (NASDAQ:TFIN) provides specialized financial services to the trucking industry, including payments processing, factoring, banking, and data intelligence solutions.

Triumph Financial reported revenues of $109.3 million, up 3% year on year. This number missed analysts’ expectations by 1.4%. Overall, it was a slower quarter as it also recorded a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ net interest income estimates.

The stock is up 15.8% since reporting and currently trades at $55.47.

Read our full, actionable report on Triumph Financial here, it’s free for active Edge members.

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official boosted hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Regional Banks company BancFirst jumped 3.8%. Is now the time to buy BancFirst? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Zions Bancorporation jumped 3.9%. Is now the time to buy Zions Bancorporation? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Synovus Financial jumped 3.8%. Is now the time to buy Synovus Financial? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Prosperity Bancshares jumped 3.9%. Is now the time to buy Prosperity Bancshares? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Origin Bancorp jumped 3.9%. Is now the time to buy Origin Bancorp? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Origin Bancorp (OBK)

Origin Bancorp’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 29 days ago when the stock dropped 3.8% on the news that the company reported third-quarter financial results that showed a significant miss on profit expectations, even as revenue surpassed forecasts. The regional bank posted an adjusted loss per share of $0.59, starkly contrasting with analyst estimates of a $0.69 profit. On a positive note, the company's revenue for the quarter was strong, coming in at $109.8 million. This figure was up 21% year-on-year and beat Wall Street's consensus estimate by 7.6%. Despite the strong top-line performance, the substantial earnings miss appeared to be the primary concern for investors, overshadowing the revenue beat and leading to the stock's decline.

Origin Bancorp is up 6.3% since the beginning of the year, but at $35.39 per share, it is still trading 13.5% below its 52-week high of $40.93 from February 2025. Investors who bought $1,000 worth of Origin Bancorp’s shares 5 years ago would now be looking at an investment worth $1,372.