Wrapping up Q2 earnings, we look at the numbers and key takeaways for the regional banks stocks, including Glacier Bancorp (NYSE: GBCI) 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 102 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. On average, they are relatively unchanged since the latest earnings results.
Glacier Bancorp (NYSE: GBCI)
Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE: GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.
Glacier Bancorp reported revenues of $240.6 million, up 18.7% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a beat of analysts’ EPS and tangible book value per share estimates.
Interestingly, the stock is up 6.4% since reporting and currently trades at $47.41.
Is now the time to buy Glacier Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 revenue estimates.
The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $118.39.
Is now the time to buy UMB Financial? Access our full analysis of the earnings results here, it’s free for active Edge members.
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’ revenue and net interest income estimates.
Interestingly, the stock is up 6.5% since the results and currently trades at $108.09.
Read our full analysis of Coastal Financial’s results here.
Community Bank (NYSE: CBU)
Tracing its roots back to 1866 in upstate New York, Community Financial System (NYSE: CBU) is a financial holding company that provides banking, employee benefits, wealth management, and insurance services to retail, commercial, and municipal customers.
Community Bank reported revenues of $199.3 million, up 8.4% year on year. This result came in 1.1% below analysts' expectations. It was a slower quarter as it also logged a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.
The stock is flat since reporting and currently trades at $58.22.
Read our full, actionable report on Community Bank here, it’s free for active Edge members.
Seacoast Banking (NASDAQ: SBCF)
Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.
Seacoast Banking reported revenues of $151.4 million, up 19.6% year on year. This print surpassed analysts’ expectations by 5%. Overall, it was a stunning quarter as it also produced a beat of analysts’ EPS and revenue estimates.
The stock is up 9.9% since reporting and currently trades at $31.72.
Read our full, actionable report on Seacoast Banking here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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