The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how First Bancorp (NASDAQ: FBNC) and the rest of the regional banks stocks fared in Q2.

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 100 regional banks stocks we track reported a satisfactory Q2. As a group, revenues missed analysts’ consensus estimates by 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.

First Bancorp (NASDAQ: FBNC)

Founded during the Great Depression in 1934 and originally known as Montgomery Bancorp, First Bancorp (NASDAQ: FBNC) is a community-oriented commercial bank providing a wide range of financial services to businesses and individuals in North and South Carolina.

First Bancorp reported revenues of $111 million, up 16% year on year. This print exceeded analysts’ expectations by 2.2%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ revenue estimates but EPS in line with analysts’ estimates.

Interestingly, the stock is up 6% since reporting and currently trades at $49.73.

Is now the time to buy First Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: 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 an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 3.2% since reporting. It currently trades at $67.67.

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 Q2: 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% since the results and currently trades at $63.30.

Read our full analysis of The Bancorp’s results here.

WesBanco (NASDAQ: WSBC)

Tracing its roots back to 1870 in West Virginia, WesBanco (NASDAQ: WSBC) is a bank holding company that provides retail and commercial banking, trust services, insurance, and investment products through its subsidiaries across several Midwestern and Mid-Atlantic states.

WesBanco reported revenues of $261.6 million, up 73.5% year on year. This print was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ net interest income estimates.

The stock is flat since reporting and currently trades at $31.54.

Read our full, actionable report on WesBanco here, it’s free for active Edge members.

Stellar Bancorp (NYSE: STEL)

Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE: STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.

Stellar Bancorp reported revenues of $105.6 million, down 2% year on year. This result met analysts’ expectations. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts’ tangible book value per share estimates but EPS in line with analysts’ estimates.

The stock is up 6.5% since reporting and currently trades at $31.37.

Read our full, actionable report on Stellar Bancorp here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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