As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the regional banks industry, including TriCo Bancshares (NASDAQ:TCBK) 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 8.4% on average since the latest earnings results.
TriCo Bancshares (NASDAQ:TCBK)
Founded in 1975 and headquartered in Chico, California, TriCo Bancshares (NASDAQ:TCBK) operates Tri Counties Bank, providing personal, small business, and commercial banking services through branches across California.
TriCo Bancshares reported revenues of $107.4 million, up 8.5% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and tangible book value per share estimates.
Interestingly, the stock is up 12.6% since reporting and currently trades at $47.93.
Is now the time to buy TriCo Bancshares? 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 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 19.3% 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.
WesBanco (NASDAQ:WSBC)
Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ:WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states.
WesBanco reported revenues of $261.6 million, up 72.9% year on year. This print missed analysts’ expectations by 0.7%. Overall, it was a slower quarter as it also produced a slight miss of analysts’ net interest income estimates and a slight miss of analysts’ revenue estimates.
WesBanco delivered the fastest revenue growth among its peers. The stock is up 8.9% since reporting and currently trades at $34.14.
Read our full, actionable report on WesBanco here, it’s free for active Edge members.
Old National Bank (NASDAQ:ONB)
Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ:ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.
Old National Bank reported revenues of $713 million, up 44.9% year on year. This result topped analysts’ expectations by 2.2%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ revenue estimates but net interest income in line with analysts’ estimates.
The stock is up 11.4% since reporting and currently trades at $23.04.
Read our full, actionable report on Old National Bank here, it’s free for active Edge members.
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