Wrapping up Q4 earnings, we look at the numbers and key takeaways for the regional banks stocks, including Eastern Bank (NASDAQ: EBC) 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 95 regional banks stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.6%.

While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.9% since the latest earnings results.

Eastern Bank (NASDAQ: EBC)

Founded in 1818 as one of America's oldest mutual banks before converting to a public company in 2020, Eastern Bankshares (NASDAQ: EBC) operates as a bank holding company providing commercial and retail banking services primarily in Massachusetts, New Hampshire, and Rhode Island.

Eastern Bank reported revenues of $290.1 million, up 31.3% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ tangible book value per share estimates and a solid beat of analysts’ revenue estimates.

“We are pleased with our performance in 2025,” said Denis Sheahan, Chief Executive Officer.

Unsurprisingly, the stock is down 5.5% since reporting and currently trades at $19.25.

Is now the time to buy Eastern Bank? Access our full analysis of the earnings results here, it’s free.

Best Q4: Merchants Bancorp (NASDAQ: MBIN)

With a strategic focus on low-risk, government-backed lending programs, Merchants Bancorp (NASDAQCM:MBIN) is an Indiana-based bank holding company specializing in multi-family mortgage banking, mortgage warehousing, and traditional banking services.

Merchants Bancorp reported revenues of $185.3 million, down 4.4% year on year, outperforming analysts’ expectations by 7.8%. The business had a stunning 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 20.1% since reporting. It currently trades at $41.96.

Is now the time to buy Merchants Bancorp? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: National Bank Holdings (NYSE: NBHC)

Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.

National Bank Holdings reported revenues of $102.6 million, down 3.7% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

As expected, the stock is down 1.1% since the results and currently trades at $39.63.

Read our full analysis of National Bank Holdings’s results here.

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 $292.9 million, up 10.7% year on year. This print beat analysts’ expectations by 1.3%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ net interest income estimates and a beat of analysts’ EPS estimates.

The stock is down 18.5% since reporting and currently trades at $17.19.

Read our full, actionable report on Banc of California here, it’s free.

BankUnited (NYSE: BKU)

Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE: BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.

BankUnited reported revenues of $291.6 million, up 9.1% year on year. This result surpassed analysts’ expectations by 3.5%. It was a strong quarter as it also put up an impressive beat of analysts’ revenue estimates and a decent beat of analysts’ net interest income estimates.

The stock is down 4.2% since reporting and currently trades at $44.44.

Read our full, actionable report on BankUnited 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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