Looking back on regional banks stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including S&T Bancorp (NASDAQ: STBA) 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 99 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 4.1% on average since the latest earnings results.

S&T Bancorp (NASDAQ: STBA)

Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ: STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.

S&T Bancorp reported revenues of $100.1 million, up 3.3% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ net interest income and EPS estimates.

Interestingly, the stock is up 2.3% since reporting and currently trades at $39.58.

Is now the time to buy S&T 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 13.4% since reporting. It currently trades at $124.47.

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 9.4% since the results and currently trades at $111.

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

Renasant (NYSE: RNST)

Founded in 1904 during a time when the South was rebuilding its economy, Renasant (NYSE: RNST) is a regional bank holding company that offers banking, wealth management, insurance, and specialized lending services throughout the Southeast.

Renasant reported revenues of $267.2 million, up 60.6% year on year. This result beat analysts’ expectations by 2.6%. More broadly, it was a mixed quarter as it also recorded an impressive beat of analysts’ net interest income estimates but a significant miss of analysts’ EPS estimates.

The stock is up 3.6% since reporting and currently trades at $39.48.

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

First Financial Bancorp (NASDAQ: FFBC)

Tracing its roots back to 1863 during the Civil War era, First Financial Bancorp (NASDAQ: FFBC) is a bank holding company that provides commercial banking, lending, deposit services, and wealth management to individuals and businesses.

First Financial Bancorp reported revenues of $226.3 million, up 5.4% year on year. This number topped analysts’ expectations by 3.1%. Overall, it was a strong quarter as it also logged a decent beat of analysts’ net interest income estimates and a beat of analysts’ EPS estimates.

The stock is up 10.7% since reporting and currently trades at $26.38.

Read our full, actionable report on First Financial Bancorp 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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