As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Old Second Bancorp (NASDAQ:OSBC) 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 beat analysts’ consensus estimates by 0.6%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.6% since the latest earnings results.
Old Second Bancorp (NASDAQ:OSBC)
Dating back to 1871 as one of the Chicago area's longest-standing financial institutions, Old Second Bancorp (NASDAQ:OSBC) is an Illinois-based community bank offering deposit services, commercial and consumer loans, wealth management, and mortgage products through its 53 branch locations.
Old Second Bancorp reported revenues of $96.91 million, up 28.4% year on year. This print exceeded analysts’ expectations by 2%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ net interest income estimates but EPS in line with analysts’ estimates.
Interestingly, the stock is up 7% since reporting and currently trades at $25.05.
Is now the time to buy Old Second 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 1.7% since reporting. It currently trades at $50.87.
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 17.5% since the results and currently trades at $17.47.
Read our full analysis of Banc of California’s results here.
First Citizens BancShares (NASDAQ:FCNCA)
With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNCA) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.
First Citizens BancShares reported revenues of $2.24 billion, up 1.5% year on year. This number topped analysts’ expectations by 3.7%. It was a very strong quarter as it also logged a beat of analysts’ EPS estimates and a narrow beat of analysts’ net interest income estimates.
The stock is flat since reporting and currently trades at $2,090.
Read our full, actionable report on First Citizens BancShares here, it’s free.
NBT Bancorp (NASDAQ:NBTB)
Tracing its roots back to 1856 when it first opened its doors in Norwich, New York, NBT Bancorp (NASDAQ:NBTB) is a community-oriented financial institution providing banking, wealth management, and insurance services to individuals and businesses across the northeastern United States.
NBT Bancorp reported revenues of $187.1 million, up 9% year on year. This print came in 0.8% below analysts’ expectations. Overall, it was a slower quarter as it also recorded a miss of analysts’ EPS estimates and a slight miss of analysts’ net interest income estimates.
The stock is down 3.5% since reporting and currently trades at $50.68.
Read our full, actionable report on NBT Bancorp 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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