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 Pacific Premier Bancorp (NASDAQ: PPBI).

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%.

Luckily, regional banks stocks have performed well with share prices up 12.5% on average since the latest earnings results.

Pacific Premier Bancorp (NASDAQ: PPBI)

With a specialized division that serves homeowners' associations nationwide and a trust division that handles self-directed IRAs with alternative assets, Pacific Premier Bancorp (NASDAQ: PPBI) is a Western US regional bank that provides banking services to small and middle-market businesses, corporations, non-profits, and specialty markets.

Pacific Premier Bancorp reported revenues of $144.8 million, down 15.3% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates and net interest income in line with analysts’ estimates.

Steven R. Gardner, Chairman, Chief Executive Officer, and President of the Company, commented, “We delivered strong financial results in the first quarter, generating net income of $36.0 million, or $0.37 per share. These results demonstrate our ability to build on the momentum established in the second half of 2024, reflecting non-interest income growth and lower operating expenses. Notably, the cost of funds decreased 14 bps from the prior quarter to 1.74%, driving a four-basis point expansion in our net interest margin to 3.06%. Additionally, we maintained our strong capital levels, with our tier 1 common equity ratio at 16.99% and our total risk-based capital ratio at 20.23%, placing us among the top of our peers.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $22.64.

Is now the time to buy Pacific Premier Bancorp? 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 8.2% since reporting. It currently trades at $45.88.

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 26.1% since the results and currently trades at $62.84.

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

Coastal Financial (NASDAQ: CCB)

Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ: CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.

Coastal Financial reported revenues of $139.5 million, down 6% year on year. This print lagged analysts' expectations by 10.3%. It was a slower quarter as it also produced a significant miss of analysts’ EPS estimates and tangible book value per share in line with analysts’ estimates.

The stock is up 16.7% since reporting and currently trades at $102.63.

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

Hope Bancorp (NASDAQ: HOPE)

With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ: HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.

Hope Bancorp reported revenues of $116.5 million, down 5.5% year on year. This number surpassed analysts’ expectations by 0.9%. Zooming out, it was a slower quarter as it logged a miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.

The stock is up 21.6% since reporting and currently trades at $11.63.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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