Regional Banks Stocks Q2 Recap: Benchmarking Bank OZK (NASDAQ:OZK)

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Regions Financial and its peers.

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 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 9.2% on average since the latest earnings results.

Regions Financial

Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.

Regions Financial reported revenues of $1.95 billion, up 3.9% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ tangible book value per share estimates but a slight miss of analysts’ net interest income estimates.

Interestingly, the stock is up 22.7% since reporting and currently trades at $28.65.

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 $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 17.8% since reporting. It currently trades at $77.19.

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 $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.8% since the results and currently trades at $69.64.

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

Axos Financial

Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.

Axos Financial reported revenues of $323.4 million, flat year on year. This print topped analysts’ expectations by 1.4%. More broadly, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ tangible book value per share estimates.

The stock is up 14.2% since reporting and currently trades at $90.58.

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

First Financial Bancorp

Tracing its roots back to 1863 during the Civil War era, First Financial Bancorp is a bank holding company that provides commercial banking, lending, deposit services, and wealth management to individuals and businesses.

First Financial Bancorp reported revenues of $234.4 million, up 9.3% year on year. This result beat analysts’ expectations by 2.7%. Aside from that, it was a mixed quarter as it also recorded an impressive beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

The stock is up 5.1% since reporting and currently trades at $25.55.

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

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Pinnacle Financial Partners (NASDAQ:PNFP) and its peers.

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 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 9.2% on average since the latest earnings results.

Pinnacle Financial Partners (NASDAQ:PNFP)

Founded in 2000 with a focus on delivering big-bank capabilities with community bank personalization, Pinnacle Financial Partners (NASDAQ:PNFP) is a Tennessee-based financial holding company that provides banking, investment, trust, mortgage, and insurance services to businesses and individuals.

Pinnacle Financial Partners reported revenues of $560 million, up 17% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ tangible book value per share estimates.

Interestingly, the stock is up 8.6% since reporting and currently trades at $97.81.

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 $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 17.8% since reporting. It currently trades at $77.19.

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 $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.8% since the results and currently trades at $69.64.

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

Old National Bank

Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.

Old National Bank reported revenues of $713 million, up 44.9% year on year. This print topped analysts’ expectations by 2.2%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ revenue estimates but net interest income in line with analysts’ estimates.

The stock is up 12.4% since reporting and currently trades at $23.24.

Read our full, actionable report on Old National Bank here, it’s free for active Edge members.

OceanFirst Financial

Tracing its roots back to 1902 when it began serving coastal New Jersey communities, OceanFirst Financial operates as a regional bank holding company that provides commercial and consumer banking services primarily in New Jersey and surrounding metropolitan areas.

OceanFirst Financial reported revenues of $103 million, up 9.5% year on year. This number met analysts’ expectations. Aside from that, it was a slower quarter as it produced EPS in line with analysts’ estimates and a slight miss of analysts’ net interest income estimates.

The stock is down 9.5% since reporting and currently trades at $17.49.

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

Looking back on regional banks stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Camden National Bank and its peers.

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 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 6.2% on average since the latest earnings results.

Camden National Bank

Rooted in Maine's coastal communities since 1875, Camden National is a regional bank holding company that provides banking, wealth management, and financial services to consumers and businesses throughout Maine and New Hampshire.

Camden National Bank reported revenues of $65.74 million, up 45.6% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ net interest income estimates.

Interestingly, the stock is up 15.8% since reporting and currently trades at $43.

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 $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 13.7% since reporting. It currently trades at $74.50.

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 $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. 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.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.4% since the results and currently trades at $67.65.

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

Butterfield Bank

Founded in 1784 as one of the oldest banks in the Western Hemisphere, Butterfield Bank provides banking, wealth management, and trust services to individuals and businesses in select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands.

Butterfield Bank reported revenues of $153.9 million, up 6.8% year on year. This number topped analysts’ expectations by 3.9%. It was a very strong quarter as it also logged an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 18.3% since reporting and currently trades at $49.68.

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

Home Bancshares

Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.

Home Bancshares reported revenues of $275.5 million, up 6.3% year on year. This result surpassed analysts’ expectations by 1.6%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

The stock is up 1.7% since reporting and currently trades at $27.92.

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

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Atlantic Union Bankshares and its peers.

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 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 6.2% on average since the latest earnings results.

Atlantic Union Bankshares

Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.

Atlantic Union Bankshares reported revenues of $380.2 million, up 71.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.

Interestingly, the stock is up 4.4% since reporting and currently trades at $35.52.

Read our full report on Atlantic Union Bankshares 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 $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. 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 happy with the results as the stock is up 13.7% since reporting. It currently trades at $74.50.

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 $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.4% since the results and currently trades at $67.65.

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

Cadence Bank

With roots dating back to 1885 and a strategic focus on middle-market commercial lending, Cadence Bancorporation is a bank holding company that provides commercial banking, retail banking, and wealth management services to middle-market businesses and individuals.

Cadence Bank reported revenues of $519.3 million, up 15.1% year on year. This result missed analysts’ expectations by 0.7%. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts’ tangible book value per share estimates but a slight miss of analysts’ revenue estimates.

The stock is up 16.6% since reporting and currently trades at $43.22.

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

FB Financial

Founded in 1906 and operating through more than a century of economic cycles, FB Financial operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

FB Financial reported revenues of $175.4 million, up 34.3% year on year. This number surpassed analysts’ expectations by 4.8%. It was an exceptional quarter as it also logged a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $56.11.

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

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the regional banks stocks, including Live Oak Bancshares and its peers.

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 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 6.2% on average since the latest earnings results.

Live Oak Bancshares

Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.

Live Oak Bancshares reported revenues of $153.1 million, up 17% year on year. This print exceeded analysts’ expectations by 3%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

“Live Oak’s third quarter results reflect the strength of our core banking operations and our continued commitment to serving small businesses across the country. We delivered strong loan production, were again named the SBA’s leading 7(a) lender by dollar amount, had significant deposit growth, and drove total assets to $14.67 billion—a 16% increase year-over-year,” said Live Oak Chairman and CEO James S. (Chip) Mahan III.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $34.70.

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 $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 13.7% since reporting. It currently trades at $74.50.

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 $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.4% since the results and currently trades at $67.65.

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

Independent Bank

Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Independent Bank reported revenues of $243.7 million, up 39.1% year on year. This result was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

The stock is up 13.7% since reporting and currently trades at $73.19.

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

Byline Bancorp

Ranking as the fifth most active Small Business Administration lender in the country, Byline Bancorp is a Chicago-based bank that provides banking services to small and medium-sized businesses, commercial real estate developers, and consumers.

Byline Bancorp reported revenues of $115.7 million, up 13.6% year on year. This print surpassed analysts’ expectations by 4.5%. It was an exceptional quarter as it also put up an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ net interest income estimates.

The stock is up 9% since reporting and currently trades at $29.05.

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

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Old National Bank and the rest of the regional banks stocks fared in Q3.

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 99 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 5.7% on average since the latest earnings results.

Old National Bank

Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.

Old National Bank reported revenues of $713 million, up 44.9% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ revenue estimates but net interest income in line with analysts’ estimates.

"Old National's outstanding quarterly results reflect our continued focus on the fundamentals and the benefits from our recent partnership with Bremer Bank," said Chairman and CEO Jim Ryan.

Interestingly, the stock is up 7.9% since reporting and currently trades at $22.31.

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 $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 9.8% since reporting. It currently trades at $71.99.

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 $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. 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.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.5% since the results and currently trades at $67.52.

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

S&T Bancorp

Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.

S&T Bancorp reported revenues of $103.6 million, up 6.8% year on year. This number beat analysts’ expectations by 0.6%. Zooming out, it was a mixed quarter as its performance in some other areas of the business was disappointing.

The stock is up 10.3% since reporting and currently trades at $39.35.

Read our full, actionable report on S&T Bancorp here, it’s free for active Edge members.

Republic Bancorp

With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.

Republic Bancorp reported revenues of $91.52 million, up 11% year on year. This print came in 0.9% below analysts' expectations. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ tangible book value per share estimates but a slight miss of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $68.99.

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