Spotting Winners: OFG Bancorp (NYSE:OFG) And Regional Banks Stocks In Q3

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at QCR Holdings 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%.

Thankfully, share prices of the companies have been resilient as they are up 5.8% on average since the latest earnings results.

QCR Holdings

With roots dating back to 1993 and a name reflecting its original Quad Cities market, QCR Holdings (NASDAQGM:QCRH) operates four community banks across Iowa and Missouri, providing commercial, consumer banking, and trust services to businesses and individuals.

QCR Holdings reported revenues of $101.5 million, up 4.3% year on year. This print exceeded analysts’ expectations by 11.8%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Interestingly, the stock is up 20% since reporting and currently trades at $85.82.

Is now the time to buy QCR Holdings? Access our full analysis of the earnings results 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 38.9% 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 happy with the results as the stock is up 8.2% since reporting. It currently trades at $70.93.

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 14.5% since the results and currently trades at $66.

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

Fulton Financial

Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.

Fulton Financial reported revenues of $334.6 million, up 1.7% year on year. This print surpassed analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ tangible book value per share estimates and a decent beat of analysts’ revenue estimates.

The stock is up 6.3% since reporting and currently trades at $19.

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

Hilltop Holdings

Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.

Hilltop Holdings reported revenues of $330.2 million, up 7.5% year on year. This number topped analysts’ expectations by 6.3%. 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 6% since reporting and currently trades at $34.39.

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

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 Ameris Bancorp .

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%.

Thankfully, share prices of the companies have been resilient as they are up 6.1% on average since the latest earnings results.

Ameris Bancorp

Tracing its roots back to 1971 and expanding significantly through both organic growth and strategic acquisitions, Ameris Bancorp is a financial holding company that provides a full range of banking services to retail and commercial customers across select markets in the southeastern United States.

Ameris Bancorp reported revenues of $313.1 million, up 10.3% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and a decent beat of analysts’ tangible book value per share estimates.

Commenting on the Company’s results, Palmer Proctor, the Company’s Chief Executive Officer, said, “Our performance continues to be outstanding, with a third quarter return on assets of 1.56% and return on tangible common equity of 14.6%. Our focus on sustainable growth in both core deposits and tangible book value per share was again evident in the quarter. Deposits grew 5% annualized while our non-interest bearing deposit mix remained over 30%. Tangible book value grew by more than 15% annualized to almost $43 per share. Our net interest margin of 3.80% places us among the top performers across the industry. The efficiency ratio remained low, aided by approximately 18% annualized revenue growth. Given our robust capital levels and proven track record, we are well positioned to take advantage of the growth potential across our Southeast franchise in 2026 and beyond.”

Interestingly, the stock is up 3.2% since reporting and currently trades at $76.81.

Is now the time to buy Ameris Bancorp? Access our full analysis of the earnings results 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 38.9% 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.

The market seems happy with the results as the stock is up 8.5% since reporting. It currently trades at $71.14.

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 15.3% since the results and currently trades at $65.41.

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

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 surpassed analysts’ expectations by 3.5%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ revenue estimates and a decent beat of analysts’ tangible book value per share estimates.

The stock is up 2.8% since reporting and currently trades at $115.49.

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

Provident Financial Services

Founded in 1839 and serving communities across New Jersey, Pennsylvania, and New York, Provident Financial Services operates a regional bank providing commercial, residential, and consumer lending alongside wealth management and insurance services.

Provident Financial Services reported revenues of $221.8 million, up 5.3% year on year. This number topped analysts’ expectations by 0.7%. 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 EPS in line with analysts’ estimates.

The stock is up 7.9% since reporting and currently trades at $20.03.

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

Since June 2025, OFG Bancorp has been in a holding pattern, posting a small loss of 1.3% while floating around $40.69. The stock also fell short of the S&P 500’s 14.4% gain during that period.

Is now the time to buy OFG Bancorp, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free for active Edge members.

Why Is OFG Bancorp Not Exciting?

We're cautious about OFG Bancorp. Here are three reasons you should be careful with OFG and a stock we'd rather own.

1. Net Interest Income Points to Soft Demand

Net interest income commands greater market attention due to its reliability and consistency, whereas one-time fees are often seen as lower-quality revenue that lacks the same dependable characteristics.

OFG Bancorp’s net interest income has grown at a 9.2% annualized rate over the last five years, slightly worse than the broader banking industry and in line with its total revenue. Its growth was driven by both an increase in its outstanding loans and net interest margin, which represents how much a bank earns in relation to its outstanding loan book.

2. Projected Net Interest Income Growth Shows Limited Upside

Forecasted net interest income by Wall Street analysts signals a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect OFG Bancorp’s net interest income to rise by 1.4%, a deceleration versus its 4.6% annualized growth for the past two years. This projection is below its 4.6% annualized growth rate for the past two years.

3. Net Interest Margin Dropping

Net interest margin (NIM) serves as a critical gauge of a bank's fundamental profitability by showing the spread between interest income and interest expenses. It's essential for understanding whether a firm can sustainably generate returns from its lending operations.

Over the past two years, OFG Bancorp’s net interest margin averaged 5.5%. However, its margin contracted by 69.7 basis points (100 basis points = 1 percentage point) over that period.

This decline was a headwind for its net interest income. While prevailing rates are a major determinant of net interest margin changes over time, the decline could mean OFG Bancorp either faced competition for loans and deposits or experienced a negative mix shift in its balance sheet composition.

Final Judgment

OFG Bancorp’s business quality ultimately falls short of our standards. With its shares underperforming the market lately, the stock trades at 1.3× forward P/B (or $40.69 per share). This valuation multiple is fair, but we don’t have much faith in the company. We're pretty confident there are more exciting stocks to buy at the moment. We’d suggest looking at the most dominant software business in the world.

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Republic Bancorp and the best and worst performers in the regional banks industry.

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%.

Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results.

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 fell short of analysts’ expectations by 0.9%. Overall, it was a mixed quarter for the company with a narrow beat of analysts’ tangible book value per share estimates but a slight miss of analysts’ revenue estimates.

Interestingly, the stock is up 2.9% since reporting and currently trades at $70.40.

Read our full report on Republic 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 38.9% 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 happy with the results as the stock is up 10.6% since reporting. It currently trades at $72.53.

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 12.6% since the results and currently trades at $67.50.

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

1st Source

Tracing its roots back to 1863 during the Civil War era, 1st Source Corporation is a regional bank holding company that provides commercial, consumer, specialty finance, and wealth management services across Indiana, Michigan, and Florida.

1st Source reported revenues of $110.7 million, up 13% year on year. This number topped analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ net interest income estimates and a beat of analysts’ EPS estimates.

The stock is up 9% since reporting and currently trades at $64.21.

Read our full, actionable report on 1st Source here, it’s free for active Edge members.

Columbia Banking System

Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.

Columbia Banking System reported revenues of $582 million, up 17.2% year on year. This print surpassed analysts’ expectations by 1.9%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ tangible book value per share estimates.

The stock is up 8.2% since reporting and currently trades at $28.17.

Read our full, actionable report on Columbia Banking System here, it’s free for active Edge members.