As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Renasant (NYSE:RNST) 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%.
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.
Renasant (NYSE:RNST)
Founded in 1904 during a time when the South was rebuilding its economy, Renasant (NYSE:RNST) is a regional bank holding company that offers banking, wealth management, insurance, and specialized lending services throughout the Southeast.
Renasant reported revenues of $282 million, up 66.3% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Interestingly, the stock is up 9.6% since reporting and currently trades at $40.79.
Is now the time to buy Renasant? 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.
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 $158.9 million, up 4.6% year on year. This result surpassed analysts’ expectations by 2.6%. It was a strong quarter as it also put up an impressive beat of analysts’ revenue estimates and a decent beat of analysts’ net interest income estimates.
The stock is flat since reporting and currently trades at $53.26.
Read our full, actionable report on Butterfield Bank here, it’s free.
BankUnited (NYSE:BKU)
Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE:BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.
BankUnited reported revenues of $291.6 million, up 9.1% year on year. This number topped analysts’ expectations by 3.5%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ revenue estimates and a decent beat of analysts’ net interest income estimates.
The stock is up 6.3% since reporting and currently trades at $49.29.
Read our full, actionable report on BankUnited here, it’s free.
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