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 East West Bank (NASDAQ:EWBC) 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 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 8.4% on average since the latest earnings results.
East West Bank (NASDAQ:EWBC)
As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp (NASDAQ:EWBC) operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.
East West Bank reported revenues of $745.8 million, up 13.5% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.
Interestingly, the stock is up 17.9% since reporting and currently trades at $116.47.
Is now the time to buy East West Bank? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 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 19.3% since reporting. It currently trades at $78.19.
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 (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 9.4% since the results and currently trades at $69.96.
Read our full analysis of The Bancorp’s results here.
S&T Bancorp (NASDAQ:STBA)
Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ:STBA) 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 result surpassed analysts’ expectations by 0.6%. However, it was a mixed quarter as its performance in some other areas of the business was disappointing.
The stock is up 8% since reporting and currently trades at $38.55.
Read our full, actionable report on S&T Bancorp here, it’s free for active Edge members.
KeyCorp (NYSE:KEY)
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE:KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
KeyCorp reported revenues of $1.90 billion, up 17.5% year on year. This number was in line with analysts’ expectations. It was a strong quarter as it also put up an impressive beat of analysts’ tangible book value per share estimates and a narrow beat of analysts’ net interest income estimates.
The stock is up 18.8% since reporting and currently trades at $21.06.
Read our full, actionable report on KeyCorp here, it’s free for active Edge members.
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