Looking back on regional banks stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including OceanFirst Financial (NASDAQ: OCFC) 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 98 regional banks stocks we track reported a satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates.

While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.7% since the latest earnings results.

OceanFirst Financial (NASDAQ: OCFC)

Tracing its roots back to 1902 when it began serving coastal New Jersey communities, OceanFirst Financial (NASDAQ: OCFC) operates as a regional bank holding company that provides commercial and consumer banking services primarily in New Jersey and surrounding metropolitan areas.

OceanFirst Financial reported revenues of $99.37 million, up 6.6% year on year. This print fell short of analysts’ expectations by 1.4%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS estimates and a miss of analysts’ net interest income estimates.

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which reflected loan and deposit growth, stable asset quality metrics, capital returns through share repurchases, and modest net interest income and margin expansion.”

Unsurprisingly, the stock is down 8.7% since reporting and currently trades at $16.32.

Read our full report on OceanFirst Financial 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 solid beat of analysts’ EPS estimates and an impressive beat of analysts’ tangible book value per share estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $110.55.

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.

As expected, the stock is down 6.5% since the results and currently trades at $94.85.

Read our full analysis of Coastal Financial’s results here.

Banc of California (NYSE: BANC)

Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE: BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals.

Banc of California reported revenues of $272.8 million, up 5.2% year on year. This print lagged analysts' expectations by 1.2%. It was a softer quarter as it also logged a significant miss of analysts’ EPS estimates and a slight miss of analysts’ net interest income estimates.

The stock is down 5.9% since reporting and currently trades at $14.38.

Read our full, actionable report on Banc of California here, it’s free.

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 number came in 1.1% below analysts' expectations. Overall, it was a slower quarter as it also recorded a miss of analysts’ EPS estimates and a slight miss of analysts’ tangible book value per share estimates.

The stock is down 9.6% since reporting and currently trades at $52.40.

Read our full, actionable report on Community Bank here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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