The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how regional banks stocks fared in Q3, starting with Provident Financial Services (NYSE:PFS).
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 Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Provident Financial Services (NYSE:PFS)
Founded in 1839 and serving communities across New Jersey, Pennsylvania, and New York, Provident Financial Services (NYSE:PFS) operates a regional bank providing commercial, residential, and consumer lending alongside wealth management and insurance services.
Provident Financial Services reported revenues of $221.8 million, up 5.3% year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ tangible book value per share estimates but EPS in line with analysts’ estimates.
Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident continued to make progress on several strategic initiatives and delivered another impressive performance this quarter. We again achieved record revenues and pre-tax, pre-provision earnings by responsibly growing earning assets and deposits, while further improving operational efficiency and maintaining strong asset quality. We continued to invest in accomplished talent and technology and look forward to the sustained growth of our business and profitability.”
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $18.49.
Read our full report on Provident Financial Services here, it’s free for active Edge members.
Best Q3: Customers Bancorp (NYSE:CUBI)
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE:CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.
Customers Bancorp reported revenues of $232.1 million, up 38.5% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.
The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $67.60.
Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $174.6 million, up 38.8% year on year, falling short of analysts’ expectations by 10%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.
As expected, the stock is down 18.6% since the results and currently trades at $62.69.
Read our full analysis of The Bancorp’s results here.
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 $260.7 million, up 19.3% year on year. This number topped analysts’ expectations by 1.7%. Zooming out, it was a mixed quarter as it also logged a decent beat of analysts’ revenue estimates but EPS in line with analysts’ estimates.
The stock is down 6.8% since reporting and currently trades at $41.92.
Read our full, actionable report on Glacier Bancorp here, it’s free for active Edge members.
SouthState (NYSE:SSB)
With roots dating back to the Great Depression era of 1933, SouthState (NYSE:SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.
SouthState reported revenues of $698.8 million, up 63.9% year on year. This result surpassed analysts’ expectations by 6.5%. Overall, it was a stunning quarter as it also produced an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.
The stock is down 6.3% since reporting and currently trades at $87.98.
Read our full, actionable report on SouthState 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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