The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Origin Bancorp (NYSE:OBK) and the rest of the regional banks stocks fared in Q4.
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%.
In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results.
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 exceeded analysts’ expectations by 3.1%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
“This quarter we reported diluted earnings per share of $0.95 and net income of $29.5 million, which drives a return on average assets of 1.19% for the quarter, well above the targeted 1.0%-plus run rate that we outlined as our near term target last January,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc.
Interestingly, the stock is up 8.6% since reporting and currently trades at $44.25.
Is now the time to buy Origin Bancorp? 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 a solid beat of analysts’ net interest income estimates.
The market seems happy with the results as the stock is up 34.2% since reporting. It currently trades at $46.92.
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 18.7% since the results and currently trades at $57.33.
Read our full analysis of The Bancorp’s results here.
WSFS Financial (NASDAQ:WSFS)
Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ:WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.
WSFS Financial reported revenues of $278 million, up 6.2% year on year. This print topped analysts’ expectations by 4.1%. It was an exceptional quarter as it also logged an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ net interest income estimates.
The stock is up 16.8% since reporting and currently trades at $67.65.
Read our full, actionable report on WSFS Financial here, it’s free.
Popular (NASDAQ:BPOP)
Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular (NASDAQ:BPOP) is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States.
Popular reported revenues of $824.6 million, up 9.1% year on year. This number met analysts’ expectations. Aside from that, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but revenue in line with analysts’ estimates.
The stock is up 18.8% since reporting and currently trades at $145.92.
Read our full, actionable report on Popular here, it’s free.
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