Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Simmons First National (NASDAQ: SFNC) and the best and worst performers in the regional banks industry.

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%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.3% since the latest earnings results.

Simmons First National (NASDAQ: SFNC)

With roots dating back to 1903 and a presence across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, Simmons First National (NASDAQ: SFNC) is a regional bank holding company that provides banking and financial services to individuals and businesses.

Simmons First National reported revenues of $251.9 million, up 17.2% year on year. This print exceeded analysts’ expectations by 5.3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Unsurprisingly, the stock is down 1.9% since reporting and currently trades at $18.91.

Is now the time to buy Simmons First National? 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 a solid beat of analysts’ net interest income estimates.

The market seems happy with the results as the stock is up 20.9% since reporting. It currently trades at $42.25.

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 2.9% since the results and currently trades at $38.90.

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

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 $110.5 million, down 1.3% year on year. This print came in 16.6% below analysts' expectations. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

Coastal Financial had the weakest performance against analyst estimates among its peers. The stock is down 21.7% since reporting and currently trades at $79.00.

Read our full, actionable report on Coastal Financial here, it’s free.

FirstSun Capital Bancorp (NASDAQ: FSUN)

Tracing its roots back to 1892 when it first opened its doors in Kansas, FirstSun Capital Bancorp (NASDAQ: FSUN) operates Sunflower Bank, providing commercial and consumer banking services to businesses and individuals across the Southwest region.

FirstSun Capital Bancorp reported revenues of $104 million, up 10.8% year on year. This number lagged analysts' expectations by 3.4%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ revenue estimates.

The stock is down 8.2% since reporting and currently trades at $34.71.

Read our full, actionable report on FirstSun Capital Bancorp here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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