Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Axos Financial (NYSE: AX) and the best and worst performers in the regional banks industry.

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 87 regional banks stocks we track reported a slower Q3. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.

Axos Financial (NYSE: AX)

Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE: AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.

Axos Financial reported revenues of $395.1 million, up 22.2% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ net interest income estimates but a narrow beat of analysts’ EPS estimates.

“Net interest margin increased by 10 basis points quarter-over-quarter, resulting in a 16.8% annualized growth in net interest income,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Excluding net paydowns in single-family mortgage and warehouse, multifamily and small balance commercial real estate, ending loans grew by approximately $563 million this quarter. Our loan pipeline remains solid, and we expect a few large loans that did not close in the September 2026 quarter to drive an acceleration in overall loan growth in the December 2026 quarter.”

Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 2.3% since reporting and currently trades at $90.42.

Is now the time to buy Axos Financial? Access our full analysis of the earnings results here, it’s free.

Best Q3: Merchants Bancorp (NASDAQ: MBIN)

With a strategic focus on low-risk, government-backed lending programs, Merchants Bancorp (NASDAQCM:MBIN) is an Indiana-based bank holding company specializing in multi-family mortgage banking, mortgage warehousing, and traditional banking services.

Merchants Bancorp reported revenues of $224.9 million, up 31.5% year on year, outperforming analysts’ expectations by 22.3%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a narrow beat of analysts’ tangible book value per share estimates.

Merchants Bancorp pulled off the biggest analyst estimate beat of the whole group. The market seems happy with the results as the stock is up 6% since reporting. It currently trades at $52.10.

Is now the time to buy Merchants Bancorp? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: National Bank Holdings (NYSE: NBHC)

Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.

National Bank Holdings reported revenues of $127.1 million, up 20.5% year on year, falling short of analysts’ expectations by 3.2%. 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.

As expected, the stock is down 4% since the results and currently trades at $37.42.

Read our full analysis of National Bank Holdings’s results here.

Regions Financial (NYSE: RF)

Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial (NYSE: RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.

Regions Financial reported revenues of $2.00 billion, up 2.6% year on year. This result topped analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a significant miss of analysts’ tangible book value per share estimates.

The stock is up 4.6% since reporting and currently trades at $28.57.

Read our full, actionable report on Regions Financial here, it’s free.

First BanCorp (NYSE: FBP)

Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE: FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.

First BanCorp reported revenues of $245.5 million, down 1.3% year on year. This number missed analysts’ expectations by 9.6%. Overall, it was a softer quarter as it also logged a significant miss of analysts’ net interest income estimates and a miss of analysts’ tangible book value per share estimates.

The stock is down 4.3% since reporting and currently trades at $26.17.

Read our full, actionable report on First 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.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.