As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Westamerica Bancorporation (NASDAQ:WABC) 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.
Westamerica Bancorporation (NASDAQ:WABC)
Founded in 1884 and serving communities from Mendocino County in the north to Kern County in the south, Westamerica Bancorporation (NASDAQ:WABC) provides banking services to individuals and small businesses throughout Northern and Central California.
Westamerica Bancorporation reported revenues of $63.74 million, down 14% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a strong quarter for the company with a solid beat of analysts’ net interest income estimates and a decent beat of analysts’ revenue estimates.
"Westamerica’s third quarter 2025 results benefited from the Company’s low-cost operating principles. The annualized cost of funding interest-earning loans, bonds and cash was 0.26 percent for the third quarter 2025. The Company recognized no provision for credit losses in the third quarter 2025. At September 30, 2025, nonperforming assets were $2.6 million and the allowance for credit losses on loans was $11.9 million. Westamerica operated efficiently, spending 40 percent of its revenue on operating costs in the third quarter 2025,” said Chairman, President and CEO David Payne.
Interestingly, the stock is up 3.3% since reporting and currently trades at $47.99.
Is now the time to buy Westamerica Bancorporation? 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 2% since reporting. It currently trades at $66.83.
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 20.3% since the results and currently trades at $61.55.
Read our full analysis of The Bancorp’s results here.
TriCo Bancshares (NASDAQ:TCBK)
Founded in 1975 and headquartered in Chico, California, TriCo Bancshares (NASDAQ:TCBK) operates Tri Counties Bank, providing personal, small business, and commercial banking services through branches across California.
TriCo Bancshares reported revenues of $107.6 million, up 8.6% year on year. This number beat analysts’ expectations by 1.2%. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS and tangible book value per share estimates.
The stock is up 7.5% since reporting and currently trades at $45.74.
Read our full, actionable report on TriCo Bancshares here, it’s free for active Edge members.
SouthState (NYSE:SSB)
With roots dating back to the Great Depression era of 1933, SouthState (NYSE:SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.
SouthState reported revenues of $698.8 million, up 63.9% year on year. This result topped analysts’ expectations by 6.5%. It was a stunning quarter as it also put up an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.
The stock is down 5.3% since reporting and currently trades at $88.88.
Read our full, actionable report on SouthState 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.
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