Looking back on regional banks stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including KeyCorp (NYSE:KEY) and its peers.\n\nRegional 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.\n\nThe 98 regional banks stocks we track reported a satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates.\n\nAmidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.1% since the latest earnings results.\n\n<h2>KeyCorp (NYSE:KEY)</h2>\n\nTracing 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.\n\nKeyCorp reported revenues of $1.83 billion, up 20% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ net interest income estimates but EPS in line with analysts’ estimates.\n\nUnsurprisingly, the stock is down 5.2% since reporting and currently trades at $17.36.\n\nIs now the time to buy KeyCorp? <a>Access our full analysis of the earnings results here, it’s free</a>.\n\n<h2>Best Q2: UMB Financial (NASDAQ:UMBF)</h2>\n\nWith roots dating back to 1913 and a name derived from \"United Missouri Bank,\" UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.\n\nUMB Financial reported revenues of $689.2 million, up 76.7% year on year, outperforming analysts’ expectations by 8.6%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ tangible book value per share estimates.\n\nHowever, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $109.80.\n\nIs now the time to buy UMB Financial? <a>Access our full analysis of the earnings results here, it’s free</a>.\n\n<h2>Weakest Q2: Coastal Financial (NASDAQ:CCB)</h2>\n\nPioneering 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.\n\nCoastal Financial reported revenues of $119.4 million, down 11.7% year on year, falling short of analysts’ expectations by 21.5%. It was a disappointing quarter as it posted a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ EPS estimates.\n\nAs expected, the stock is down 2.9% since the results and currently trades at $98.50.\n\n<a>Read our full analysis of Coastal Financial’s results here. </a>\n\n<h2>Live Oak Bancshares (NYSE:LOB)</h2>\n\nFounded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE:LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.\n\nLive Oak Bancshares reported revenues of $143.7 million, up 14.6% year on year. This print beat analysts’ expectations by 2.7%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ net interest income estimates and a narrow beat of analysts’ tangible book value per share estimates.\n\nThe stock is down 1.9% since reporting and currently trades at $31.83.\n\n<a>Read our full, actionable report on Live Oak Bancshares here, it’s free. </a>\n\n<h2>Origin Bancorp (NYSE:OBK)</h2>\n\nFounded in 1912 during the early boom days of Louisiana banking, Origin Bancorp (NYSE:OBK) is a financial holding company that provides personalized banking services to businesses, municipalities, and individuals across Texas, Louisiana, and Mississippi.\n\nOrigin Bancorp reported revenues of $83.5 million, down 13.3% year on year. This result missed analysts’ expectations by 14.5%. All in all, it was a mixed quarter for the company.\n\nThe stock is down 5.4% since reporting and currently trades at $35.61.\n\n<a>Read our full, actionable report on Origin Bancorp here, it’s free. </a>\n\n<h2>Market Update</h2>\n\nThe 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.\n\nWant to invest in winners with rock-solid fundamentals? Check out our <a>Top 5 Growth Stocks</a> and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.\n\nStockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? <a>See the open roles here.</a>

Q2 Earnings Outperformers: KeyCorp (NYSE:KEY) And The Rest Of The Regional Banks Stocks

This article analyzes the Q2 2025 earnings performance of regional banks, highlighting key performers and underperformers. KeyCorp reported a 20% year-on-year revenue increase, exceeding expectations, while UMB Financial delivered a significant 76.7% revenue growth and strong earnings beats. In contrast, Coastal Financial saw a 11.7% year-on-year revenue decline and missed expectations. Live Oak Bancshares and Origin Bancorp posted modest growth and mixed results, respectively. Despite overall satisfactory earnings, regional bank stocks declined on average by 5.1% post-earnings. The article attributes performance to rising interest rates, digital transformation, and economic conditions, while noting challenges such as fintech competition and credit deterioration. Market sentiment remains cautious due to regulatory concerns and macroeconomic uncertainty.