Most investors who want to gain exposure to the financial sector focus solely on the well-known, mega-cap bank stocks such as JP Morgan Chase (JPM) and Bank of America (BAC).

However, some smaller financial services companies have maintained much longer dividend growth streaks than the popular big banks.

Regional banks have exhibited solid performance thanks to their quality business models, and reluctance to engage in the riskier lending and trading practices that got the big banks in so much trouble in the 2008 financial crisis.

At the same time, many banks have shareholder return programs in place with attractive dividend yields

As a result, regional banks can be compelling investments for dividend growth investors.

OFG Bancorp (OFG)

OFG Bancorp is a leading financial holding company that operates Oriental Bank, providing a full suite of banking, mortgage, insurance, and wealth management services.

The bank serves retail, commercial, and institutional clients across Puerto Rico and the U.S. Virgin Islands. With its Digital First strategy, OFG has strengthened its competitive position, expanding its market share in key financial segments.

On July 17th, 2025, the company announced results for the second quarter of 2025. OFG Bancorp reported Q2 non GAAP EPS of $1.15, which beat estimates by $0.10.

Total core revenues climbed to $182.2 million, driven by solid net interest income, which benefited from a 5.31% net interest margin. Return on average assets reached 1.73%, while return on tangible common equity jumped to 16.96%, reflecting strong operating leverage.

Loan production surged 40% sequentially to $783.7 million, contributing to 4.2% quarterly loan growth. OFG also ended the quarter with record total assets of $12.2 billion and core deposits of $9.9 billion. Pre-provision net revenue hit $87.6 million, supported by increased mortgage banking and wealth management activity.

Credit metrics remained resilient, with net charge-offs declining to $12.8 million (0.64% of loans), and nonperforming loans at a low 1.19%. The company recorded a $21.7 million provision for credit losses, mainly tied to higher commercial loan volume and reserves on four credits.

OFG repurchased 186,024 shares in Q2, while tangible book value rose to $27.67.

OFG stock yields 2.8%.

Orrstown Financial Services, Inc. (ORRF)

Orrstown Financial Services, Inc. is a community bank. ORRF serves as the holding company for its operating bank subsidiary, Orrstown Bank.

The company provides banking and financial advisory services to customers located in the south-central Pennsylvania counties of Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry, and York. ORRF also serves customers in Anne Arundel, Baltimore, Howard, and Washington counties in Maryland.

Its savings products include money market accounts, savings accounts, certificates of deposit, and checking accounts. Loan products offered consist of residential mortgages, home equity lines of credit, commercial mortgages, construction loans, and commercial loans.

Financial advisory services provided include fiduciary, investment advisory, and brokerage services.

On July 22nd, ORRF released its earnings report for the second quarter ended June 30th, 2025. The company’s net interest income jumped 89.7% over the year-ago period to $49.5 million during the quarter. That was mostly the result of the acquisition of Codorus Valley Bancorp.

A 53-basis-point expansion in the net interest margin to 4.07% also contributed to this sharp rise in net interest income in the quarter. ORRF’s noninterest income rose 80.1% year-over-year to $12.9 million for the quarter.

ORRF’s adjusted diluted EPS grew by 25.3% over the year-ago period to $1.04 during the quarter. This exceeded the analyst consensus in the quarter by $0.06.

Also of note, ORRF upped its quarterly dividend per share by 3.8% to $0.27. That was on top of the 13% boost announced earlier this year. ORRF currently yields 3.2%.

Eastern Bankshares (EBC)

Eastern Bankshares Inc. provides commercial banking products and services primarily to retail, commercial and small business customers.

It provides banking, trust, and investment services, as well as insurance services, through its full service bank branches and insurance offices.

As of March 31, 2025, Eastern Bankshares had total consolidated assets of $25.0 billion, total gross loans of $18.2 billion, and total deposits of $20.8 billion. The company was founded in 1818 and has 1,744 employees.

On July 24th, 2025, Eastern Bankshares announced its second-quarter 2025 results for the period ending June 30th, 2025.

For the quarter, the company reported a net income of $100.2 million, a strong rebound from a net loss of $217.7 million in the first quarter. Reported earnings per diluted share for the same periods were $0.50 and $(1.08), respectively, marking a significant improvement.

Despite the prior GAAP loss, operating net income rose to $81.7 million, up from $67.5 million in the first quarter, reflecting enhanced core profitability.

Net interest income increased by $13.1 million, or 7%, to $202.0 million for the second quarter, compared to $188.9 million for the first quarter of 2025. This improvement was driven by higher asset yields and ongoing benefits from the Cambridge merger.

EBC has increased its dividend for 26 consecutive years, and shares currently yield 2.8%.