As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including WSFS Financial (NASDAQ: WSFS) 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 95 regional banks stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.6%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.4% since the latest earnings results.

WSFS Financial (NASDAQ: WSFS)

Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ: WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.

WSFS Financial reported revenues of $278 million, up 6.2% year on year. This print exceeded analysts’ expectations by 4.1%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ net interest income estimates.

Interestingly, the stock is up 8.4% since reporting and currently trades at $62.76.

Is now the time to buy WSFS Financial? Access our full analysis of the earnings results here, it’s free.

Best Q4: Merchants Bancorp (NASDAQ: MBIN)

With a strategic focus on low-risk, government-backed lending programs, Merchants Bancorp (NASDAQCM:MBIN) is an Indiana-based bank holding company specializing in multi-family mortgage banking, mortgage warehousing, and traditional banking services.

Merchants Bancorp reported revenues of $185.3 million, down 4.4% year on year, outperforming analysts’ expectations by 7.8%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates.

The market seems happy with the results as the stock is up 19.8% since reporting. It currently trades at $41.86.

Is now the time to buy Merchants Bancorp? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: National Bank Holdings (NYSE: NBHC)

Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.

National Bank Holdings reported revenues of $102.6 million, down 3.7% year on year, falling short of analysts’ expectations by 2.7%. 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 2.6% since the results and currently trades at $39.03.

Read our full analysis of National Bank Holdings’s results here.

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 $225 million, up 9.3% year on year. This result topped analysts’ expectations by 0.7%. Overall, it was a strong quarter as it also logged a beat of analysts’ EPS estimates and a narrow beat of analysts’ tangible book value per share estimates.

The stock is down 2.2% since reporting and currently trades at $20.38.

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

1st Source (NASDAQ: SRCE)

Tracing its roots back to 1863 during the Civil War era, 1st Source Corporation (NASDAQ: SRCE) is a regional bank holding company that provides commercial, consumer, specialty finance, and wealth management services across Indiana, Michigan, and Florida.

1st Source reported revenues of $111 million, up 13.3% year on year. This print met analysts’ expectations. It was a very strong quarter as it also recorded an impressive beat of analysts’ net interest income estimates and a beat of analysts’ EPS estimates.

The stock is up 2.6% since reporting and currently trades at $67.90.

Read our full, actionable report on 1st Source here, it’s free.

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