Regional Banks Stocks Q3 Teardown: BankUnited (NYSE:BKU) Vs The Rest

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.

Let’s dig into the relative performance of Commerce Bancshares and its peers as we unravel the now-completed Q3 regional banks earnings season.

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 1.3% on average since the latest earnings results.

Commerce Bancshares

Founded in 1865 during the post-Civil War economic boom, Commerce Bancshares (NASDAQGS:CBSH) is a Midwest-focused bank holding company that provides retail, commercial, and wealth management services to individuals and businesses.

Commerce Bancshares reported revenues of $448.9 million, up 5.6% year on year. This print exceeded analysts’ expectations by 0.5%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EPS estimates and a miss of analysts’ net interest income estimates.

In making this announcement, John Kemper, Chief Executive Officer, said, “Commerce delivered another strong quarter, underscoring the resilience of our diversified operating model and the dedication of our talented team. Our third quarter results reflect steady loan balances, robust fee income, and disciplined expense management, all of which contributed to another period of high profitability.

Unsurprisingly, the stock is down 4.1% since reporting and currently trades at $54.36.

Read our full report on Commerce 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.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $64.97.

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 19.7% since the results and currently trades at $61.99.

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 lagged analysts' expectations by 0.6%. 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 2.6% since reporting and currently trades at $38.03.

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

UMB Financial

With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.

UMB Financial reported revenues of $678.3 million, up 67% year on year. This print beat analysts’ expectations by 3.5%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ revenue estimates and a decent beat of analysts’ tangible book value per share estimates.

The stock is down 3.2% since reporting and currently trades at $108.68.

Read our full, actionable report on UMB 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 Cathay General Bancorp 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 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 1.3% on average since the latest earnings results.

Cathay General Bancorp

Founded in 1962 with its first branch in Los Angeles' Chinatown, Cathay General Bancorp operates Cathay Bank, providing commercial banking services to businesses and individuals with a strong presence in Asian-American communities.

Cathay General Bancorp reported revenues of $207.3 million, up 9.9% year on year. This print exceeded analysts’ expectations by 2.4%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

“We are pleased by the continued increase in the net interest margin compared to the second quarter of 2025. During the third quarter, we repurchased 1,070,000 common shares at an average cost of $46.81 per share, for a total of $50.1 million,” commented Chang M. Liu, President and Chief Executive Officer of the Company.

Interestingly, the stock is up 1.4% since reporting and currently trades at $47.81.

Read our full report on Cathay General Bancorp 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 an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $64.97.

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 19.7% since the results and currently trades at $61.99.

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 million, up 6.9% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it failed to impress in some other areas of the business.

The stock is up 10.7% since reporting and currently trades at $39.50.

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

Texas Capital Bank

Founded during the Texas banking renaissance of the 1990s with an entrepreneurial spirit, Texas Capital Bancshares is a financial services firm that provides banking, wealth management, and investment banking services to businesses and individuals across Texas and beyond.

Texas Capital Bank reported revenues of $340.4 million, up 11.6% year on year. This print topped analysts’ expectations by 4.1%. Overall, it was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 7.3% since reporting and currently trades at $88.

Read our full, actionable report on Texas Capital Bank 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 Coastal Financial jumped 3.8%. Is now the time to buy Coastal Financial? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Peoples Bancorp jumped 3.8%. Is now the time to buy Peoples Bancorp? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company First Interstate BancSystem jumped 3.8%. Is now the time to buy First Interstate BancSystem? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Customers Bancorp jumped 3.8%. Is now the time to buy Customers Bancorp? Access our full analysis report here, it’s free for active Edge members.

Zooming In On First Interstate BancSystem (FIBK)

First Interstate BancSystem’s shares are not very volatile and have only had 9 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 biggest move we wrote about over the last year was about 1 month ago when the stock dropped 6.7% on the news that disclosures from two lenders raised concerns about deteriorating loan quality across the industry. The drop was triggered by specific incidents that have spooked investors. Zions Bancorp announced a $50 million charge-off—a debt the bank doesn't expect to collect—on a single loan. Separately, Western Alliance Bancorp revealed it was dealing with a borrower who had failed to provide proper collateral. These events are compounding existing anxieties about the regional banking sector, which is already under pressure from elevated interest rates and declining commercial real estate values. The news heightened investor concerns that more cracks could appear in borrowers' creditworthiness, potentially leading to increased loan losses and reduced profitability for other banks in the sector.

First Interstate BancSystem is down 1.7% since the beginning of the year, and at $31.42 per share, it is trading 11.4% below its 52-week high of $35.47 from November 2024. Investors who bought $1,000 worth of First Interstate BancSystem’s shares 5 years ago would now be looking at an investment worth $793.23.

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 East West Bank jumped 4.1%. Is now the time to buy East West Bank? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Columbia Banking System jumped 4.1%. Is now the time to buy Columbia Banking System? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Cathay General Bancorp jumped 4.1%. Is now the time to buy Cathay General Bancorp? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company BankUnited jumped 4%. Is now the time to buy BankUnited? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Axos Financial jumped 4.1%. Is now the time to buy Axos Financial? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Cathay General Bancorp (CATY)

Cathay General Bancorp’s shares are not very volatile and have only had 9 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 biggest move we wrote about over the last year was about 1 month ago when the stock dropped 6.2% on the news that disclosures from two lenders raised concerns about deteriorating loan quality across the industry. The drop was triggered by specific incidents that have spooked investors. Zions Bancorp announced a $50 million charge-off—a debt the bank doesn't expect to collect—on a single loan. Separately, Western Alliance Bancorp revealed it was dealing with a borrower who had failed to provide proper collateral. These events are compounding existing anxieties about the regional banking sector, which is already under pressure from elevated interest rates and declining commercial real estate values. The news heightened investor concerns that more cracks could appear in borrowers' creditworthiness, potentially leading to increased loan losses and reduced profitability for other banks in the sector.

Cathay General Bancorp is up 1.5% since the beginning of the year, but at $47.81 per share, it is still trading 11.2% below its 52-week high of $53.85 from November 2024. Investors who bought $1,000 worth of Cathay General Bancorp’s shares 5 years ago would now be looking at an investment worth $1,637.