Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at First Commonwealth Financial (NYSE: FCF) and the best and worst performers in the regional banks industry.

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 4.4% since the latest earnings results.

First Commonwealth Financial (NYSE: FCF)

Tracing its roots back to the Great Depression era of 1934, First Commonwealth Financial (NYSE: FCF) is a financial holding company that provides consumer and commercial banking, wealth management, and insurance services across Pennsylvania and Ohio.

First Commonwealth Financial reported revenues of $131 million, up 9% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ net interest income estimates and a decent beat of analysts’ tangible book value per share estimates.

“We are pleased to report a strong second quarter, marked by significant net interest margin expansion, robust loan growth, and the successful completion of the CenterBank acquisition,” stated T. Michael Price, President and Chief Executive Officer.

Interestingly, the stock is up 3.8% since reporting and currently trades at $16.70.

Is now the time to buy First Commonwealth Financial? 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 solid beat of analysts’ EPS estimates and an impressive beat of analysts’ tangible book value per share estimates.

The market seems content with the results as the stock is up 1.4% since reporting. It currently trades at $111.26.

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 estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 6.4% since the results and currently trades at $95.

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

Berkshire Hills Bancorp (NYSE: BHLB)

Founded in 1846 as a community financial institution in Massachusetts, Berkshire Hills Bancorp (NYSE: BHLB) is a regional bank holding company that provides commercial banking, retail banking, wealth management, and lending services through branches across the Northeast.

Berkshire Hills Bancorp reported revenues of $113.7 million, up 4.6% year on year. This result was in line with analysts’ expectations. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ tangible book value per share estimates.

The stock is down 5.6% since reporting and currently trades at $24.73.

Read our full, actionable report on Berkshire Hills Bancorp here, it’s free.

Wintrust Financial (NASDAQ: WTFC)

Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.

Wintrust Financial reported revenues of $670.8 million, up 12% year on year. This print surpassed analysts’ expectations by 1.8%. It was a strong quarter as it also produced a decent beat of analysts’ EPS estimates and a narrow beat of analysts’ tangible book value per share estimates.

The stock is down 4.2% since reporting and currently trades at $125.82.

Read our full, actionable report on Wintrust Financial here, it’s free.

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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