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 Q4, starting with Fulton Financial (NASDAQ:FULT).
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 95 regional banks stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.
In light of this news, share prices of the companies have held steady as they are up 4.5% on average since the latest earnings results.
Fulton Financial (NASDAQ:FULT)
Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ:FULT) 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 $340.4 million, up 4.3% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ revenue estimates but net interest income in line with analysts’ estimates.
"The strength of our strategy and the dedication of our team combined to generate a 17% increase in our operating diluted earnings per share," said Curtis J. Myers, Fulton Chairman, CEO and President.
Interestingly, the stock is up 7.9% since reporting and currently trades at $22.13.
Is now the time to buy Fulton Financial? Access our full analysis of the earnings results here, it’s free.
Best Q4: Merchants Bancorp (NASDAQ:MBIN)
With a strategic focus on low-risk, government-backed lending programs, Merchants Bancorp (NASDAQCM:MBIN) is an Indiana-based bank holding company specializing in multi-family mortgage banking, mortgage warehousing, and traditional banking services.
Merchants Bancorp reported revenues of $185.3 million, down 4.4% year on year, outperforming analysts’ expectations by 7.8%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest income estimates.
The market seems happy with the results as the stock is up 35.2% since reporting. It currently trades at $47.24.
Is now the time to buy Merchants Bancorp? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $172.7 million, up 8.2% year on year, falling short of analysts’ expectations by 11%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ revenue estimates.
As expected, the stock is down 15.5% since the results and currently trades at $59.60.
Read our full analysis of The Bancorp’s results here.
Dime Community Bancshares (NASDAQ:DCOM)
With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ:DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.
Dime Community Bancshares reported revenues of $123.8 million, up 24.5% year on year. This result beat analysts’ expectations by 5.2%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.
The stock is up 18.2% since reporting and currently trades at $35.60.
Read our full, actionable report on Dime Community Bancshares here, it’s free.
Hilltop Holdings (NYSE:HTH)
Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings (NYSE:HTH) is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.
Hilltop Holdings reported revenues of $330.7 million, up 8.9% year on year. This print surpassed analysts’ expectations by 9.7%. It was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
The stock is up 5.8% since reporting and currently trades at $38.95.
Read our full, actionable report on Hilltop Holdings here, it’s free.
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