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 Axos Financial (NYSE:AX).
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 94 regional banks stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.5%.
Thankfully, share prices of the companies have been resilient as they are up 5.8% on average since the latest earnings results.
Axos Financial (NYSE:AX)
Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE:AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.
Axos Financial reported revenues of $385.1 million, up 25.1% year on year. This print exceeded analysts’ expectations by 12%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.
“Strong net interest income growth and a solid net interest margin resulted in a 23.3% year-over-year increase in our diluted earnings per share this quarter,” stated Greg Garrabrants, President and Chief Executive Officer of Axos.
Axos Financial achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 2.9% since reporting and currently trades at $97.42.
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 32.2% since reporting. It currently trades at $46.22.
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 15.8% since the results and currently trades at $59.37.
Read our full analysis of The Bancorp’s results here.
Columbia Banking System (NASDAQ:COLB)
Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ:COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.
Columbia Banking System reported revenues of $717 million, up 45.2% year on year. This print topped analysts’ expectations by 3%. It was a very strong quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
The stock is up 7.9% since reporting and currently trades at $32.03.
Read our full, actionable report on Columbia Banking System here, it’s free.
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 surpassed analysts’ expectations by 5.2%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.
The stock is up 19.3% since reporting and currently trades at $35.93.
Read our full, actionable report on Dime Community Bancshares here, it’s free.
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