Spotting Winners: Prosperity Bancshares (NYSE:PB) And Regional Banks Stocks In Q3

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 Enterprise Financial Services jumped 3.3%. Is now the time to buy Enterprise Financial Services? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Citizens Financial Group jumped 3.3%. Is now the time to buy Citizens Financial Group? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Amalgamated Financial jumped 3.5%. Is now the time to buy Amalgamated Financial? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Wintrust Financial jumped 3.3%. Is now the time to buy Wintrust Financial? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Amalgamated Financial (AMAL)

Amalgamated Financial’s shares are not very volatile and have only had 6 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 28 days ago when the stock gained 3.8% on the news that the company reported strong third-quarter 2025 earnings that surpassed analyst expectations and raised its full-year guidance. 

The bank announced adjusted earnings of $0.91 per share on revenue of $85.61 million, beating forecasts of $0.88 per share and $83.33 million in revenue. The positive results were driven by significant growth on both sides of the balance sheet. Amalgamated Financial saw a large increase in deposits, generating over $415 million in new funds, and also experienced faster loan growth. Furthermore, the bank's net interest margin, a key measure of profitability, expanded. The company also improved its asset quality, with nonperforming assets declining, and raised its core earnings guidance for the full year, signaling confidence in its performance.

Amalgamated Financial is down 12.9% since the beginning of the year, and at $28.90 per share, it is trading 21.5% below its 52-week high of $36.82 from January 2025. Investors who bought $1,000 worth of Amalgamated Financial’s shares 5 years ago would now be looking at an investment worth $2,204.

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 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.