Regional Banks Stocks Q3 In Review: Old National Bank (NASDAQ:ONB) Vs Peers

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Old National Bank (NASDAQ:ONB) and the rest of the regional banks stocks fared in Q3.

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 99 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 5.7% on average since the latest earnings results.

Old National Bank (NASDAQ:ONB)

Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ:ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.

Old National Bank reported revenues of $713 million, up 44.9% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ revenue estimates but net interest income in line with analysts’ estimates.

"Old National's outstanding quarterly results reflect our continued focus on the fundamentals and the benefits from our recent partnership with Bremer Bank," said Chairman and CEO Jim Ryan.

Interestingly, the stock is up 7.9% since reporting and currently trades at $22.31.

Is now the time to buy Old National Bank? 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 $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. 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 happy with the results as the stock is up 9.8% since reporting. It currently trades at $71.99.

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 $174.7 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.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.5% since the results and currently trades at $67.52.

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

S&T Bancorp (NASDAQ:STBA)

Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ:STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.

S&T Bancorp reported revenues of $103.6 million, up 6.8% year on year. This number beat analysts’ expectations by 0.6%. Zooming out, it was a mixed quarter as its performance in some other areas of the business was disappointing.

The stock is up 10.3% since reporting and currently trades at $39.35.

Read our full, actionable report on S&T Bancorp here, it’s free for active Edge members.

Republic Bancorp (NASDAQ:RBCAA)

With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.

Republic Bancorp reported revenues of $91.52 million, up 11% year on year. This print came in 0.9% below analysts' expectations. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ tangible book value per share estimates but a slight miss of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $68.99.

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

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