Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Butterfield Bank (NYSE:NTB) 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 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.
Butterfield Bank (NYSE:NTB)
Founded in 1784 as one of the oldest banks in the Western Hemisphere, Butterfield Bank (NYSE:NTB) provides banking, wealth management, and trust services to individuals and businesses in select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands.
Butterfield Bank reported revenues of $159.1 million, up 4.7% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ tangible book value per share estimates.
Michael Collins, Butterfield's Chairman and Chief Executive Officer, commented, “Throughout 2025 Butterfield delivered strong financial results supported by disciplined strategic execution. We achieved year-on-year net income growth, with core net income per diluted share increasing 17.4% compared to 2024. Our relationship-focused banking and private trust businesses increased non-interest income, while net interest income benefited from lower deposit costs and higher yielding asset redeployment. Butterfield remained focused on expense management, while completing a number of value-added projects that have advanced our technology platform.
Unsurprisingly, the stock is down 1.1% since reporting and currently trades at $52.84.
Is now the time to buy Butterfield Bank? 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 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.
Stellar Bancorp (NYSE:STEL)
Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE:STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.
Stellar Bancorp reported revenues of $109 million, flat year on year. This result topped analysts’ expectations by 1%. More broadly, it was a satisfactory quarter as it also logged a solid beat of analysts’ net interest income estimates but EPS in line with analysts’ estimates.
The stock is up 8.9% since reporting and currently trades at $39.66.
Read our full, actionable report on Stellar Bancorp here, it’s free.
Origin Bancorp (NYSE:OBK)
Founded in 1912 during the early boom days of Louisiana banking, Origin Bancorp (NYSE:OBK) is a financial holding company that provides personalized banking services to businesses, municipalities, and individuals across Texas, Louisiana, and Mississippi.
Origin Bancorp reported revenues of $103.5 million, up 15.1% year on year. This print beat analysts’ expectations by 3.1%. It was a very strong quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
The stock is up 10.1% since reporting and currently trades at $44.83.
Read our full, actionable report on Origin Bancorp here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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