Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Bank of Hawaii (NYSE:BOH) 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 2.2% on average since the latest earnings results.
Bank of Hawaii (NYSE:BOH)
Founded in 1897 as a financial anchor for the newly annexed Hawaiian territory, Bank of Hawaii (NYSE:BOH) is a financial institution providing banking, investment, and insurance services primarily to customers in Hawaii, Guam, and other Pacific Islands.
Bank of Hawaii reported revenues of $174.5 million, up 11.2% year on year. This print fell short of analysts’ expectations by 1.4%. Overall, it was a softer quarter for the company with a miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.
“Bank of Hawai‘i continued to perform well during the second quarter of 2025,” said Peter Ho, Chairman and CEO.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $65.63.
Read our full report on Bank of Hawaii 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 $121.53.
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 and EPS estimates.
Interestingly, the stock is up 14.3% since the results and currently trades at $116.
Read our full analysis of Coastal Financial’s results here.
Enterprise Financial Services (NASDAQ:EFSC)
Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ:EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states.
Enterprise Financial Services reported revenues of $173.4 million, up 11.1% year on year. This number beat analysts’ expectations by 5.7%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ net interest income and EPS estimates.
The stock is up 5.8% since reporting and currently trades at $59.62.
Read our full, actionable report on Enterprise Financial Services here, it’s free.
F.N.B. Corporation (NYSE:FNB)
Tracing its roots back to 1864 during the Civil War era, F.N.B. Corporation (NYSE:FNB) is a diversified financial services holding company that provides banking, wealth management, and insurance services to consumers and businesses across seven states and Washington, D.C.
F.N.B. Corporation reported revenues of $438.2 million, up 8.5% year on year. This result surpassed analysts’ expectations by 3.7%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ net interest income estimates and a narrow beat of analysts’ tangible book value per share estimates.
The stock is up 1.2% since reporting and currently trades at $16.09.
Read our full, actionable report on F.N.B. Corporation 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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