Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Atlantic Union Bankshares (NYSE:AUB) 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 6.2% on average since the latest earnings results.
Atlantic Union Bankshares (NYSE:AUB)
Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares (NYSE:AUB) is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.
Atlantic Union Bankshares reported revenues of $380.2 million, up 71.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.
Interestingly, the stock is up 4.4% since reporting and currently trades at $35.52.
Read our full report on Atlantic Union Bankshares 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 13.7% since reporting. It currently trades at $74.50.
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 and net interest income estimates.
The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.4% since the results and currently trades at $67.65.
Read our full analysis of The Bancorp’s results here.
Cadence Bank (NYSE:CADE)
With roots dating back to 1885 and a strategic focus on middle-market commercial lending, Cadence Bancorporation (NYSE:CADE) 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 missed analysts’ expectations by 0.7%. 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 16.6% since reporting and currently trades at $43.22.
Read our full, actionable report on Cadence Bank here, it’s free for active Edge members.
FB Financial (NYSE:FBK)
Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE:FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.
FB Financial reported revenues of $175.4 million, up 34.3% year on year. This number surpassed analysts’ expectations by 4.8%. It was an exceptional quarter as it also logged a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.
The stock is flat since reporting and currently trades at $56.11.
Read our full, actionable report on FB Financial here, it’s free for active Edge members.
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