Looking back on regional banks stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including First Financial Bankshares (NASDAQ: FFIN) and its peers.

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 105 regional banks stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.6%.

Thankfully, share prices of the companies have been resilient as they are up 7.5% on average since the latest earnings results.

First Financial Bankshares (NASDAQ: FFIN)

With roots dating back to 1890 and a network spanning over 70 locations across the Lone Star State, First Financial Bankshares (NASDAQ: FFIN) is a Texas-focused regional bank providing commercial banking, trust services, and wealth management across numerous communities throughout the state.

First Financial Bankshares reported revenues of $149 million, up 12.7% year on year. This print exceeded analysts’ expectations by 1.7%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ tangible book value per share estimates but EPS in line with analysts’ estimates.

"Our improved results from first quarter 2024 were primarily due to an increase in net interest income related to our balance sheet growth over the previous year. Strong deposit inflows have supported loan growth as well as continued bond investments which has supported margin growth in addition to bolstering our liquidity," said F. Scott Dueser, Chairman and CEO.

Interestingly, the stock is up 10.7% since reporting and currently trades at $36.14.

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

Best Q1: Butterfield Bank (NYSE: NTB)

Founded in 1784 as one of the oldest banks in the Western Hemisphere, Butterfield Bank (NYSE: NTB) provides banking, wealth management, and trust services to individuals and businesses in select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands.

Butterfield Bank reported revenues of $147.8 million, up 3.7% year on year, outperforming analysts’ expectations by 4.4%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 5.1% since reporting. It currently trades at $44.60.

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

Weakest Q1: Triumph Financial (NASDAQ: TFIN)

Originally focused on traditional banking before pivoting to serve the transportation sector, Triumph Financial (NASDAQ: TFIN) provides specialized financial services to the trucking industry, including payments processing, factoring, banking, and data intelligence solutions.

Triumph Financial reported revenues of $100.8 million, flat year on year, falling short of analysts’ expectations by 3.8%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share and net interest income estimates.

Interestingly, the stock is up 18.9% since the results and currently trades at $59.22.

Read our full analysis of Triumph Financial’s results here.

1st Source (NASDAQ: SRCE)

Tracing its roots back to 1863 during the Civil War era, 1st Source Corporation (NASDAQ: SRCE) is a regional bank holding company that provides commercial, consumer, specialty finance, and wealth management services across Indiana, Michigan, and Florida.

1st Source reported revenues of $104 million, up 10.6% year on year. This number beat analysts’ expectations by 3.1%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ net interest income estimates and a decent beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $61.84.

Read our full, actionable report on 1st Source here, it’s free.

United Bankshares (NASDAQ: UBSI)

With roots dating back to 1982 and a strong presence in the Mid-Atlantic region, United Bankshares (NASDAQ: UBSI) is a bank holding company that provides commercial and retail banking services through its United Bank subsidiary across multiple states.

United Bankshares reported revenues of $289.6 million, up 13.7% year on year. This print surpassed analysts’ expectations by 4.1%. It was a stunning quarter as it also produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates.

The stock is down 1.6% since reporting and currently trades at $36.43.

Read our full, actionable report on United Bankshares here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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