Wrapping up Q3 earnings, we look at the numbers and key takeaways for the regional banks stocks, including Old Second Bancorp (NASDAQ: OSBC) 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 9.7% on average since the latest earnings results.
Old Second Bancorp (NASDAQ: OSBC)
Dating back to 1871 as one of the Chicago area's longest-standing financial institutions, Old Second Bancorp (NASDAQ: OSBC) is an Illinois-based community bank offering deposit services, commercial and consumer loans, wealth management, and mortgage products through its 53 branch locations.
Old Second Bancorp reported revenues of $96.22 million, up 34.6% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ tangible book value per share estimates and an impressive beat of analysts’ revenue estimates.
Interestingly, the stock is up 10.1% since reporting and currently trades at $19.77.
Best Q3: Customers Bancorp (NYSE: CUBI)
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) 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 19.5% since reporting. It currently trades at $78.37.
Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: The Bancorp (NASDAQ: TBBK)
Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ: TBBK) 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 9.6% since the results and currently trades at $69.81.
Read our full analysis of The Bancorp’s results here.
QCR Holdings (NASDAQ: QCRH)
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 $112.3 million, up 15.4% year on year. This result beat analysts’ expectations by 11.3%. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
QCR Holdings scored the biggest analyst estimates beat among its peers. The stock is up 17.1% since reporting and currently trades at $83.71.
Read our full, actionable report on QCR Holdings here, it’s free.
TowneBank (NASDAQ: TOWN)
Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank (NASDAQ: TOWN) is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.
TowneBank reported revenues of $215.7 million, up 23.6% year on year. This number met analysts’ expectations. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ tangible book value per share estimates but a miss of analysts’ net interest income estimates.
The stock is up 3.3% since reporting and currently trades at $34.75.
Read our full, actionable report on TowneBank here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
