As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Coastal Financial (NASDAQ: CCB) 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 1.5%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Weakest Q4: 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 fell short of analysts’ expectations by 16.6%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

"During the fourth quarter of 2025, loans receivable increased by $45.7 million, representing a 1.2% rise, alongside another period of solid deposit growth totaling $171.6 million, or 4.3%. Our CCBX segment continued to progress during the quarter as we executed on a dual strategy of expanding product offerings with existing partners while selectively onboarding new relationships aligned with our long-term objectives. Looking ahead, we expect continued growth as existing programs scale, new products are introduced, and we leverage our growing operating history in the BaaS space to support disciplined, sustainable expansion,” stated CEO Eric Sprink.

Coastal Financial delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 20.8% since reporting and currently trades at $79.93.

Is now the time to buy Coastal Financial? 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 23% since reporting. It currently trades at $43.

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

The Bancorp (NASDAQ: TBBK)

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp (NASDAQ: TBBK) is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $172.7 million, up 8.2% year on year, falling short of analysts’ expectations by 11%. 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 18.8% since the results and currently trades at $57.25.

Read our full analysis of The Bancorp’s results here.

First Commonwealth Financial (NYSE: FCF)

Tracing its roots back to the Great Depression era of 1934, First Commonwealth Financial (NYSE: FCF) is a financial holding company that provides consumer and commercial banking, wealth management, and insurance services across Pennsylvania and Ohio.

First Commonwealth Financial reported revenues of $137.8 million, up 14.2% year on year. This number beat analysts’ expectations by 1.5%. Taking a step back, it was a satisfactory quarter as it also logged a decent beat of analysts’ revenue estimates but a narrow beat of analysts’ EPS estimates.

The stock is up 1.6% since reporting and currently trades at $18.

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

Popular (NASDAQ: BPOP)

Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular (NASDAQ: BPOP) is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States.

Popular reported revenues of $824.6 million, up 9.1% year on year. This print was in line with analysts’ expectations. Zooming out, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but revenue in line with analysts’ estimates.

The stock is up 15.4% since reporting and currently trades at $141.79.

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

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