Let’s dig into the relative performance of Trustmark (NASDAQ:TRMK) and its peers as we unravel the now-completed Q2 regional banks earnings season.
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 102 regional banks stocks we track reported a satisfactory 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.
Trustmark (NASDAQ:TRMK)
Tracing its roots back to 1889 in Mississippi, Trustmark (NASDAQ:TRMK) is a financial services organization providing banking, wealth management, insurance, and mortgage services across five southeastern states.
Trustmark reported revenues of $198.6 million, up 77,394% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a decent beat of analysts’ net interest income estimates.
Duane A. Dewey, President and CEO, stated, “Our momentum continues to build as reflected in our solid financial performance in the second quarter of 2025. Diversified loan growth and solid credit quality continued. We were also successful in building and expanding attractive, cost-effective core deposit relationships. Our mortgage banking and wealth management businesses also performed well. These accomplishments are the results of our focused efforts to expand customer relationships and diligently manage expenses. Our associates have done a tremendous job of serving customers, building relationships, and demonstrating the value Trustmark can provide as their financial partner. We are well-positioned to create long-term value for our shareholders.”
Trustmark achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 2.4% since reporting and currently trades at $39.65.
Is now the time to buy Trustmark? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: UMB Financial (NASDAQ:UMBF)
With 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.
UMB 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 a beat of analysts’ EPS and tangible book value per share estimates.
The market seems happy with the results as the stock is up 8.9% since reporting. It currently trades at $119.50.
Is now the time to buy UMB Financial? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: 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 $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 and EPS estimates.
Interestingly, the stock is up 7.8% since the results and currently trades at $109.32.
Read our full analysis of Coastal Financial’s results here.
Cadence Bank (NYSE:CADE)
With roots dating back to 1885 and a strategic focus on middle-market commercial lending, Cadence Bancorporation (NYSE:CADE) is a bank holding company that provides commercial banking, retail banking, and wealth management services to middle-market businesses and individuals.
Cadence Bank reported revenues of $476.3 million, up 7.6% year on year. This number beat analysts’ expectations by 1.6%. Overall, it was a satisfactory quarter as it also produced a narrow beat of analysts’ tangible book value per share estimates.
The stock is up 5% since reporting and currently trades at $37.78.
Read our full, actionable report on Cadence Bank here, it’s free for active Edge members.
SouthState (NYSE:SSB)
With roots dating back to the Great Depression era of 1933, SouthState (NYSE:SSB) is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.
SouthState reported revenues of $664.8 million, up 56.2% year on year. This result surpassed analysts’ expectations by 3.8%. It was an exceptional quarter as it also put up a solid beat of analysts’ net interest income estimates.
The stock is up 2.2% since reporting and currently trades at $99.37.
Read our full, actionable report on SouthState here, it’s free for active Edge members.
Market Update
The 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.
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