The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how regional banks stocks fared in Q1, starting with Stellar Bancorp (NYSE: STEL).

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%.

In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.

Stellar Bancorp (NYSE: STEL)

Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE: STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.

Stellar Bancorp reported revenues of $104.8 million, down 3.4% year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a slower quarter for the company with a slight miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.

Unsurprisingly, the stock is down 1% since reporting and currently trades at $26.70.

Read our full report on Stellar Bancorp 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 an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ EPS estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $42.31.

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 9.4% since the results and currently trades at $54.50.

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

Republic Bancorp (NASDAQ: RBCAA)

With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.

Republic Bancorp reported revenues of $118.2 million, up 31.8% year on year. This print missed analysts’ expectations by 6.9%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ EPS estimates but net interest income in line with analysts’ estimates.

The stock is down 7% since reporting and currently trades at $68.57.

Read our full, actionable report on Republic Bancorp here, it’s free.

Stock Yards Bank (NASDAQ: SYBT)

Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp (NASDAQ: SYBT) operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.

Stock Yards Bank reported revenues of $93.55 million, up 12.2% year on year. This number surpassed analysts’ expectations by 0.8%. It was a strong quarter as it also logged a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ net interest income estimates.

The stock is up 3.6% since reporting and currently trades at $74.04.

Read our full, actionable report on Stock Yards Bank 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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