Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at First Bancorp (NASDAQ: FBNC) 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 103 regional banks stocks we track reported a satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 2.2% on average since the latest earnings results.
First Bancorp (NASDAQ: FBNC)
Founded during the Great Depression in 1934 and originally known as Montgomery Bancorp, First Bancorp (NASDAQ: FBNC) is a community-oriented commercial bank providing a wide range of financial services to businesses and individuals in North and South Carolina.
First Bancorp reported revenues of $111 million, up 16% year on year. This print exceeded analysts’ expectations by 2.2%. Despite the top-line beat, it was still a good quarter for the company with a decent beat of analysts’ net interest income estimates but EPS in line with analysts’ estimates.
Interestingly, the stock is up 13.4% since reporting and currently trades at $53.19.
Is now the time to buy First Bancorp? Access our full analysis of the earnings results here, it’s free.
Best Q2: UMB Financial (NASDAQ: UMBF)
With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ: UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.
UMB Financial reported revenues of $689.2 million, up 76.7% year on year, outperforming analysts’ expectations by 8.6%. The business had a stunning quarter with a beat of analysts’ EPS and tangible book value per share estimates.
The market seems happy with the results as the stock is up 8.8% since reporting. It currently trades at $119.43.
Is now the time to buy UMB Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Coastal Financial (NASDAQ: CCB)
Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ: CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.
Coastal Financial reported revenues of $119.4 million, down 11.7% year on year, falling short of analysts’ expectations by 21.5%. It was a disappointing quarter as it posted a significant miss of analysts’ net interest income and EPS estimates.
Interestingly, the stock is up 16.8% since the results and currently trades at $118.50.
Read our full analysis of Coastal Financial’s results here.
Citizens Financial Group (NYSE: CFG)
Tracing its roots back to 1828 as a community-focused institution, Citizens Financial Group (NYSE: CFG) is a regional bank that provides retail and commercial banking services to individuals, small businesses, and large corporations across 14 states.
Citizens Financial Group reported revenues of $2.04 billion, up 4% year on year. This result beat analysts’ expectations by 1.5%. More broadly, it was a mixed quarter as it recorded a miss of analysts’ tangible book value per share estimates.
The stock is up 14.6% since reporting and currently trades at $53.82.
Read our full, actionable report on Citizens Financial Group here, it’s free.
First BanCorp (NYSE: FBP)
Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE: FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.
First BanCorp reported revenues of $246.8 million, up 6.5% year on year. This number came in 0.7% below analysts' expectations. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ tangible book value per share estimates but a miss of analysts’ net interest income estimates.
The stock is up 2.1% since reporting and currently trades at $22.34.
Read our full, actionable report on First BanCorp here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
