As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Amalgamated Financial (NASDAQ: AMAL) 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 94 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. On average, they are relatively unchanged since the latest earnings results.
Amalgamated Financial (NASDAQ: AMAL)
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
Amalgamated Financial reported revenues of $96.1 million, up 16.9% year on year. This print exceeded analysts’ expectations by 4.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ net interest income and EPS estimates.
Priscilla Sims Brown, President and Chief Executive Officer, commented, “This quarter showcases the power of the franchise we have built. With the strongest balance sheet in our history and one of the most differentiated deposit franchises in banking, we are successfully converting balance sheet growth into record earnings, record profitability, and a scalable platform for future performance.”
Interestingly, the stock is up 3.8% since reporting and currently trades at $48.76.
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 and net interest income estimates.
The market seems content with the results as the stock is up 4.8% since reporting. It currently trades at $52.38.
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 and net interest income estimates.
As expected, the stock is down 11.8% since the results and currently trades at $18.68.
Read our full analysis of Banc of California’s results here.
FB Financial (NYSE: FBK)
Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.
FB Financial reported revenues of $175.9 million, up 27.5% year on year. This print lagged analysts’ expectations by 0.7%. It was a slower quarter as it also logged a miss of analysts’ EPS and tangible book value per share estimates.
The stock is up 3.1% since reporting and currently trades at $58.30.
Read our full, actionable report on FB Financial here, it’s free.
Valley National Bank (NASDAQ: VLY)
Tracing its roots back to 1927 during the economic boom before the Great Depression, Valley National Bancorp (NASDAQGS:VLY) operates Valley National Bank, providing commercial, consumer, and wealth management banking services across several states.
Valley National Bank reported revenues of $562 million, up 13.3% year on year. This number topped analysts’ expectations by 0.7%. Aside from that, it was a slower quarter as it produced EPS in line with analysts’ estimates and a slight miss of analysts’ tangible book value per share estimates.
The stock is down 2.9% since reporting and currently trades at $14.11.
Read our full, actionable report on Valley National Bank 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.
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