Wrapping up Q4 earnings, we look at the numbers and key takeaways for the regional banks stocks, including Triumph Financial (NYSE:TFIN) 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 95 regional banks stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.4%.
Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.
Triumph Financial (NYSE:TFIN)
Originally focused on traditional banking before pivoting to serve the transportation sector, Triumph Financial (NYSE:TFIN) provides specialized financial services to the trucking industry, including payments processing, factoring, banking, and data intelligence solutions.
Triumph Financial reported revenues of $106.7 million, up 3% year on year. This print fell short of analysts’ expectations by 3.4%. Overall, it was a slower quarter for the company with a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ revenue estimates.
Unsurprisingly, the stock is down 4.3% since reporting and currently trades at $67.56.
Read our full report on Triumph Financial 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 22.2% since reporting. It currently trades at $42.70.
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 14.7% since the results and currently trades at $60.20.
Read our full analysis of The Bancorp’s results here.
TriCo Bancshares (NASDAQ:TCBK)
Founded in 1975 and headquartered in Chico, California, TriCo Bancshares (NASDAQ:TCBK) operates Tri Counties Bank, providing personal, small business, and commercial banking services through branches across California.
TriCo Bancshares reported revenues of $109.7 million, up 8.9% year on year. This print beat analysts’ expectations by 1.5%. Zooming out, it was a satisfactory quarter as it also recorded a decent beat of analysts’ net interest income estimates but a narrow beat of analysts’ EPS estimates.
The stock is up 3.3% since reporting and currently trades at $52.26.
Read our full, actionable report on TriCo Bancshares here, it’s free.
Valley National Bank (NASDAQ:VLY)
Tracing its roots back to 1927 during the economic boom before the Great Depression, Valley National Bancorp (NASDAQGS:VLY) operates Valley National Bank, providing commercial, consumer, and wealth management banking services across several states.
Valley National Bank reported revenues of $542.5 million, up 12.2% year on year. This number topped analysts’ expectations by 3.1%. It was a strong quarter as it also produced a solid beat of analysts’ revenue estimates and a narrow beat of analysts’ tangible book value per share estimates.
The stock is up 9.1% since reporting and currently trades at $13.39.
Read our full, actionable report on Valley National Bank here, it’s free.
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