Spotting Winners: Peoples Bancorp (NASDAQ:PEBO) And Regional Banks Stocks In Q3

Looking back on regional banks stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Peoples Bancorp (NASDAQ:PEBO) 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 94 regional banks stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.

In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.

Peoples Bancorp (NASDAQ:PEBO)

Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ:PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.

Peoples Bancorp reported revenues of $118.5 million, up 3.2% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ tangible book value per share estimates and a beat of analysts’ EPS estimates.

"We continued to experience high loan growth and had improvements in several key financial metrics during the third quarter" said Tyler Wilcox, President and Chief Executive Officer.

Interestingly, the stock is up 1.5% since reporting and currently trades at $29.11.

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

Best Q3: 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% since reporting. It currently trades at $67.53.

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 Q3: 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 and net interest income estimates.

As expected, the stock is down 16% since the results and currently trades at $64.75.

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

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 result met analysts’ expectations. It was a strong quarter as it also put up an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ tangible book value per share estimates.

The stock is up 8.7% since reporting and currently trades at $70.14.

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

Home Bancshares (NYSE:HOMB)

Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares (NYSE:HOMB) operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.

Home Bancshares reported revenues of $277.7 million, up 7.6% year on year. This number beat analysts’ expectations by 3.5%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ revenue estimates but a narrow beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $27.58.

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

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.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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