Q3 Earnings Highlights: Columbia Banking System (NASDAQ:COLB) Vs The Rest Of The Regional Banks Stocks

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the regional banks industry, including Columbia Banking System (NASDAQ:COLB) 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. On average, they are relatively unchanged since the latest earnings results.

Columbia Banking System (NASDAQ:COLB)

Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ:COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.

Columbia Banking System reported revenues of $582 million, up 17.2% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ tangible book value per share estimates.

"Our third quarter performance reflects meaningful progress and growing momentum," said Clint Stein, President and CEO.

Interestingly, the stock is up 6.2% since reporting and currently trades at $27.62.

Is now the time to buy Columbia Banking System? 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 a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 2.3% since reporting. It currently trades at $67.07.

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 19.4% since the results and currently trades at $62.10.

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

Trustmark (NASDAQ:TRMK)

Tracing its roots back to 1889 in Mississippi, Trustmark (NASDAQ:TRMK) is a financial services organization providing banking, wealth management, insurance, and mortgage services across five southeastern states.

Trustmark reported revenues of $202.4 million, up 5.3% year on year. This print surpassed analysts’ expectations by 0.7%. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ revenue estimates but EPS in line with analysts’ estimates.

The stock is down 1.2% since reporting and currently trades at $38.18.

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

Commerce Bancshares (NASDAQ:CBSH)

Founded in 1865 during the post-Civil War economic boom, Commerce Bancshares (NASDAQGS:CBSH) is a Midwest-focused bank holding company that provides retail, commercial, and wealth management services to individuals and businesses.

Commerce Bancshares reported revenues of $448.9 million, up 5.6% year on year. This result topped analysts’ expectations by 0.5%. Aside from that, it was a softer quarter as it recorded a significant miss of analysts’ EPS estimates and a miss of analysts’ net interest income estimates.

The stock is down 4.3% since reporting and currently trades at $54.25.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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