As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at regional banks stocks, starting with Bank OZK (NASDAQ: OZK).

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 beat analysts’ consensus estimates by 1.1%.

Luckily, regional banks stocks have performed well with share prices up 11.7% on average since the latest earnings results.

Bank OZK (NASDAQ: OZK)

Founded in 1903 and rebranded from Bank of the Ozarks in 2018, Bank OZK (NASDAQ: OZK) is a commercial bank that specializes in real estate lending while offering a full range of banking services to individuals and businesses.

Bank OZK reported revenues of $392.8 million, up 6.8% year on year. This print fell short of analysts’ expectations by 7.2%. Overall, it was a slower quarter for the company with a significant miss of analysts’ revenue estimates and a narrow beat of analysts’ EPS estimates.

George Gleason, Chairman and Chief Executive Officer, stated, “One of our goals for 2025 is to improve on our record 2024 net income and EPS. Our strong results for the first half of the year put us in a great position to achieve that goal. Our talented, entrepreneurial and veteran team is well suited for the very dynamic environment in which we operate today. Our excellent results for the quarter included record net income, record EPS, record net interest income, excellent growth in loans and deposits, and solid asset quality. These results demonstrate our team’s ability to proactively and effectively manage the various challenges of this environment while capitalizing on numerous opportunities.”

Unsurprisingly, the stock is down 7% since reporting and currently trades at $48.25.

Read our full report on Bank OZK 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 $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 14.6% since reporting. It currently trades at $75.10.

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 $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. 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 12.4% since the results and currently trades at $67.65.

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

Synovus Financial (NYSE: SNV)

Tracing its roots back to 1888 when a worker accidentally dropped a textile mill payroll into the dust, prompting the need for better banking, Synovus Financial (NYSE: SNV) is a regional financial services company that provides commercial and consumer banking, wealth management, and specialized lending services across five southeastern states.

Synovus Financial reported revenues of $612.8 million, up 8.2% year on year. This result surpassed analysts’ expectations by 1.4%. Overall, it was a satisfactory quarter as it also logged a narrow beat of analysts’ revenue estimates.

The stock is up 12% since reporting and currently trades at $52.71.

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

Independent Bank (NASDAQ: INDB)

Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ: INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Independent Bank reported revenues of $243.7 million, up 39.1% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced an impressive beat of analysts’ tangible book value per share estimates but a narrow beat of analysts’ EPS estimates.

The stock is up 19.1% since reporting and currently trades at $76.68.

Read our full, actionable report on Independent Bank 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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