As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, 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 94 regional banks stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.9% 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 $316 million, up 26.9% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ tangible book value per share estimates but a miss of analysts’ net interest income estimates.

“Eastern’s second-quarter performance reflects our focus on organically growing both banking and fee-based businesses and consistently returning capital to shareholders,” said Denis Sheahan, Chief Executive Officer.

Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 5% since reporting and currently trades at $21.49.

Is now the time to buy Eastern Bank? 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 4.5% since reporting. It currently trades at $52.27.

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 13.7% since the results and currently trades at $18.29.

Read our full analysis of Banc of California’s results here.

City Holding (NASDAQ: CHCO)

With roots dating back to 1957 and a strategic presence along the I-64 and I-81 corridors, City Holding (NASDAQGS:CHCO) operates as a financial holding company providing banking, trust, and investment services through its subsidiary City National Bank across West Virginia, Kentucky, Virginia, and Ohio.

City Holding reported revenues of $81.73 million, up 3.8% year on year. This print surpassed analysts’ expectations by 1.3%. Aside from that, it was a satisfactory quarter as it also logged a decent beat of analysts’ tangible book value per share estimates but net interest income in line with analysts’ estimates.

The stock is up 4% since reporting and currently trades at $140.38.

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

KeyCorp (NYSE: KEY)

Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.

KeyCorp reported revenues of $1.96 billion, up 6.7% year on year. This result was in line with analysts’ expectations. However, it was a slower quarter as it produced a slight miss of analysts’ net interest income estimates and a miss of analysts’ tangible book value per share estimates.

The stock is down 10% since reporting and currently trades at $20.99.

Read our full, actionable report on KeyCorp 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.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.