Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Coastal Financial (NASDAQ: CCB) 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 98 regional banks stocks we track reported a satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.7% since the latest earnings results.

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. This print fell short of analysts’ expectations by 21.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ net interest income and EPS estimates.

“Second quarter of 2025 saw a lower provision for credit losses as a result of an improvement in the performance of the CCBX portfolio and our focus on originating higher quality CCBX loans resulting in lower historical loss factors. Noninterest expenses were fairly flat compared to last quarter related to continued onboarding and implementation costs for partnerships and products within CCBX and investments in technology. We believe these investments are important to the long-term success and scalability of the Company,” stated CEO Eric Sprink.

Unsurprisingly, the stock is down 8.9% since reporting and currently trades at $92.40.

Is now the time to buy Coastal 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 an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ tangible book value per share estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $108.39.

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

OceanFirst Financial (NASDAQ: OCFC)

Tracing its roots back to 1902 when it began serving coastal New Jersey communities, OceanFirst Financial (NASDAQ: OCFC) operates as a regional bank holding company that provides commercial and consumer banking services primarily in New Jersey and surrounding metropolitan areas.

OceanFirst Financial reported revenues of $99.37 million, up 6.6% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ net interest income estimates.

As expected, the stock is down 7.7% since the results and currently trades at $16.50.

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

Enterprise Financial Services (NASDAQ: EFSC)

Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ: EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states.

Enterprise Financial Services reported revenues of $173.4 million, up 11.1% year on year. This number beat analysts’ expectations by 5.7%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ net interest income estimates and a solid beat of analysts’ EPS estimates.

The stock is down 4.5% since reporting and currently trades at $53.81.

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

Cathay General Bancorp (NASDAQ: CATY)

Founded in 1962 with its first branch in Los Angeles' Chinatown, Cathay General Bancorp (NASDAQ: CATY) operates Cathay Bank, providing commercial banking services to businesses and individuals with a strong presence in Asian-American communities.

Cathay General Bancorp reported revenues of $197.1 million, up 9.7% year on year. This print topped analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also produced net interest income in line with analysts’ estimates but EPS in line with analysts’ estimates.

The stock is down 6.4% since reporting and currently trades at $44.83.

Read our full, actionable report on Cathay General Bancorp here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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