The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how regional banks stocks fared in Q2, starting with Peoples Bancorp (NASDAQ: PEBO).
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 93 regional banks stocks we track reported a mixed 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.
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 $122 million, up 6% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ tangible book value per share estimates.
Interestingly, the stock is up 6% since reporting and currently trades at $41.74.
Is now the time to buy Peoples Bancorp? Access our full analysis of the earnings results here, it’s free.
Best Q2: OFG Bancorp (NYSE: OFG)
Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE: OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands.
OFG Bancorp reported revenues of $190.3 million, up 4.5% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest income estimates.
The market seems happy with the results as the stock is up 6.2% since reporting. It currently trades at $53.10.
Is now the time to buy OFG Bancorp? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Banc of California (NYSE: BANC)
Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE: BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals.
Banc of California reported revenues of $285.7 million, up 4.7% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ net interest income estimates.
As expected, the stock is down 9.2% since the results and currently trades at $19.23.
Read our full analysis of Banc of California’s results here.
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 $199.1 million, up 13.2% year on year. This number met analysts’ expectations. Zooming out, it was a slower quarter as it logged a miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.
The stock is down 4.5% since reporting and currently trades at $80.19.
Read our full, actionable report on Bank of Hawaii here, it’s free.
First Bancorp (NASDAQ: FBNC)
Founded during the Great Depression in 1934 and originally known as Montgomery Bancorp, First Bancorp (NASDAQ: FBNC) is a community-oriented commercial bank providing a wide range of financial services to businesses and individuals in North and South Carolina.
First Bancorp reported revenues of $127.8 million, up 30.9% year on year. This print beat analysts’ expectations by 1.4%. More broadly, it was a satisfactory quarter as it also recorded a narrow beat of analysts’ net interest income estimates but a slight miss of analysts’ tangible book value per share estimates.
The stock is up 2.1% since reporting and currently trades at $63.92.
Read our full, actionable report on First Bancorp here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
