Spotting Top Performers: Western Alliance Bancorporation (NYSE:WAL) and Regional Bank Shares in the Fourth Quarter

Q4 Review: Regional Bank Stocks Performance

As we reflect on the fourth quarter earnings of regional bank stocks, we highlight the top and bottom performers this season, with a special focus on Western Alliance Bancorporation (NYSE:WAL) and its industry counterparts.

Understanding Regional Banks

Regional banks operate within defined geographic boundaries, connecting local savers with borrowers. These institutions often benefit from higher interest rates, which widen the gap between what they earn on loans and pay on deposits. Advances in digital technology help streamline operations and cut costs, while robust local economies can boost lending activity. However, regional banks also contend with challenges such as competition from fintech firms, customers moving deposits to higher-yielding options, rising loan defaults during economic downturns, and the burden of regulatory compliance. Recent instability in the sector, including notable bank failures and significant exposure to commercial real estate, has added further pressure.

Q4 Results Overview

Among the 95 regional banks monitored, the group delivered a solid fourth quarter, collectively surpassing revenue forecasts by 1.5%.

Despite these results, share prices have remained largely unchanged since the earnings announcements, indicating that the market had already anticipated these outcomes.

Spotlight: Western Alliance Bancorporation (NYSE:WAL)

Western Alliance Bancorporation operates through five regional divisions across the western United States, offering a range of services including commercial banking, treasury management, mortgage solutions, and specialized financial products.

For the quarter, Western Alliance Bancorporation posted $976.2 million in revenue, marking a 17.1% increase from the previous year and exceeding analyst expectations by 6.5%. The company not only outperformed on revenue but also surpassed estimates for tangible book value per share, signaling a robust quarter.

President and CEO Kenneth A. Vecchione commented, “Western Alliance achieved outstanding results to close 2025, setting records in net interest income, total revenue, and PPNR. Strong growth in loans and deposits, rising non-interest income from commercial banking, improved efficiency, and a stable net interest margin all contributed to our impressive financial performance. These achievements set the stage for continued earnings growth into 2026.”

Following the earnings release, Western Alliance Bancorporation’s stock price remained steady at $88.64, suggesting the results were already reflected in the market.

Top Q4 Performer: Merchants Bancorp (NASDAQ:MBIN)

Headquartered in Indiana, Merchants Bancorp focuses on low-risk, government-backed lending, with expertise in multi-family mortgage banking, mortgage warehousing, and traditional banking services.

In the fourth quarter, Merchants Bancorp reported $185.3 million in revenue, a 4.4% decrease year-over-year, but still beat analyst projections by 7.8%. The company also exceeded expectations for both earnings per share and net interest income, making it a standout quarter.

The market responded positively, with the stock climbing 23% since the report, now trading at $43.00.

Weakest Q4 Performer: The Bancorp (NASDAQ:TBBK)

The Bancorp, a key provider of banking services to fintech companies and specialty lending products, operates behind many well-known fintech apps and prepaid cards.

For Q4, The Bancorp generated $172.7 million in revenue, up 8.2% from the previous year but missing analyst estimates by 11%. The company fell short on both revenue and net interest income, resulting in a disappointing quarter.

As a result, the stock has dropped 18.8% since the earnings release and is currently priced at $57.29.

OFG Bancorp (NYSE:OFG)

Founded in 1964, OFG Bancorp offers a variety of 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 $185.4 million in revenue for the quarter, a 1.9% year-over-year increase, matching analyst expectations. The company beat earnings per share estimates but narrowly missed on net interest income, resulting in a satisfactory quarter overall.

Since the earnings report, OFG Bancorp’s stock has declined 1.9% and is now trading at $41.80.

ServisFirst Bancshares (NYSE:SFBS)

Established in 2005, ServisFirst Bancshares is dedicated to serving mid-sized businesses that are often overlooked, providing commercial banking solutions through its subsidiary, ServisFirst Bank.

In Q4, ServisFirst Bancshares posted $159.3 million in revenue, a 20.7% increase from the prior year and 5% above analyst forecasts. The company delivered strong results, beating both revenue and net interest income estimates.

The stock has risen 11.2% since the earnings announcement and is currently valued at $84.88.

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The StockStory analyst team, comprised of experienced professional investors, leverages quantitative research and automation to deliver timely, high-quality market insights.