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 Washington Trust Bancorp (NASDAQ: WASH).
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 mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.
While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.5% since the latest earnings results.
Washington Trust Bancorp (NASDAQ: WASH)
Founded in 1800 and operating as Rhode Island's oldest community bank, Washington Trust Bancorp (NASDAQ: WASH) is a regional bank holding company offering commercial banking, mortgage lending, personal banking, and wealth management services.
Washington Trust Bancorp reported revenues of $60.65 million, up 11.3% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but net interest income in line with analysts’ estimates.
Interestingly, the stock is up 9.2% since reporting and currently trades at $39.65.
Is now the time to buy Washington Trust 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 4.4% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates.
The market seems content with the results as the stock is up 4.5% since reporting. It currently trades at $52.25.
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 12.7% since the results and currently trades at $18.50.
Read our full analysis of Banc of California’s results here.
United Bankshares (NASDAQ: UBSI)
With roots dating back to 1982 and a strong presence in the Mid-Atlantic region, United Bankshares (NASDAQ: UBSI) is a bank holding company that provides commercial and retail banking services through its United Bank subsidiary across multiple states.
United Bankshares reported revenues of $321.8 million, up 5% year on year. This result topped analysts’ expectations by 0.6%. Zooming out, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ net interest income estimates.
The stock is flat since reporting and currently trades at $47.
Read our full, actionable report on United Bankshares here, it’s free.
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 $187.4 million, up 6.4% year on year. This print missed analysts’ expectations by 1.3%. Overall, it was a softer quarter as it also recorded a significant miss of analysts’ EPS estimates and tangible book value per share in line with analysts’ estimates.
The stock is down 5.4% since reporting and currently trades at $62.11.
Read our full, actionable report on Enterprise Financial Services 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 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
