As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Axos Financial (NYSE: AX) 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 3.4% on average since the latest earnings results.
Axos Financial (NYSE: AX)
Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE: AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.
Axos Financial reported revenues of $321.4 million, up 10.5% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and tangible book value per share in line with analysts’ estimates.
“We grew loans by $856 million in the quarter ended June 30, 2025,” stated Greg Garrabrants, President and Chief Executive Officer of Axos.
Interestingly, the stock is up 5.5% since reporting and currently trades at $90.02.
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 estimates and a solid beat of analysts’ 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 $121.53.
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 estimates and a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 12.6% since the results and currently trades at $114.24.
Read our full analysis of Coastal Financial’s results here.
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 $92.02 million, up 12.6% year on year. This number came in 1.3% below analysts' expectations. All in all, it was a mixed quarter for the company.
The stock is flat since reporting and currently trades at $76.48.
Read our full, actionable report on Republic Bancorp here, it’s free.
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 $510.9 million, up 8.2% year on year. This print beat analysts’ expectations by 3.8%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ net interest income estimates and a beat of analysts’ EPS estimates.
The stock is up 15.9% since reporting and currently trades at $27.
Read our full, actionable report on Columbia Banking System here, it’s free.
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.
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