Wrapping up Q2 earnings, we look at the numbers and key takeaways for the regional banks stocks, including Cathay General Bancorp (NASDAQ: CATY) 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 99 regional banks stocks we track reported a satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 3.2% on average since the latest earnings results.
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 exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with net interest income in line with analysts’ estimates but a narrow beat of analysts’ EPS estimates.
“We are pleased by the continued increase in the net interest margin compared to the first quarter of 2025. On June 4, 2025, the Company announced a new stock repurchase program to buy back up to $150.0 million of the Company's common stock. During the second quarter, we repurchased 804,179 common shares at an average cost of $44.22 per share, for a total of $35.6 million.”
Interestingly, the stock is up 2.8% since reporting and currently trades at $49.24.
Read our full report on Cathay General Bancorp 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 a beat of analysts’ EPS and tangible book value per share estimates.
The market seems happy with the results as the stock is up 10.7% since reporting. It currently trades at $121.50.
Is now the time to buy UMB Financial? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 21.5%. It was a disappointing quarter as it posted a significant miss of analysts’ net interest income and EPS estimates.
Interestingly, the stock is up 12% since the results and currently trades at $113.61.
Read our full analysis of Coastal Financial’s results here.
Seacoast Banking (NASDAQ: SBCF)
Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.
Seacoast Banking reported revenues of $151.4 million, up 19.6% year on year. This result surpassed analysts’ expectations by 5%. It was a stunning quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest income estimates.
The stock is up 7.2% since reporting and currently trades at $30.94.
Read our full, actionable report on Seacoast Banking here, it’s free.
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 $115 million, up 3.2% year on year. This number topped analysts’ expectations by 1.7%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ tangible book value per share estimates but a significant miss of analysts’ EPS estimates.
The stock is down 3.5% since reporting and currently trades at $30.48.
Read our full, actionable report on Peoples Bancorp here, it’s free.
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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