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 First Interstate BancSystem (NASDAQ: FIBK) 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 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 12.6% on average since the latest earnings results.

First Interstate BancSystem (NASDAQ: FIBK)

Tracing its roots back to 1971 and still guided by founding family principles, First Interstate BancSystem (NASDAQ: FIBK) operates a network of community banks across 14 western and midwestern states, offering comprehensive banking services to individuals, businesses, and government entities.

First Interstate BancSystem reported revenues of $247 million, up 2% year on year. This print fell short of analysts’ expectations by 2.3%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ net interest income and EPS estimates.

Interestingly, the stock is up 11.5% since reporting and currently trades at $30.76.

Read our full report on First Interstate BancSystem 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.

The market seems happy with the results as the stock is up 8.9% since reporting. It currently trades at $46.19.

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 26.5% since the results and currently trades at $63.

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

TowneBank (NASDAQ: TOWN)

Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank (NASDAQ: TOWN) is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.

TowneBank reported revenues of $192 million, up 14.9% year on year. This print beat analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ tangible book value per share estimates and an impressive beat of analysts’ EPS estimates.

The stock is up 8.5% since reporting and currently trades at $35.33.

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

First Commonwealth Financial (NYSE: FCF)

Tracing its roots back to the Great Depression era of 1934, First Commonwealth Financial (NYSE: FCF) is a financial holding company that provides consumer and commercial banking, wealth management, and insurance services across Pennsylvania and Ohio.

First Commonwealth Financial reported revenues of $118 million, up 1.5% year on year. This result surpassed analysts’ expectations by 0.6%. Taking a step back, it was a mixed quarter as it also produced an impressive beat of analysts’ tangible book value per share estimates but EPS in line with analysts’ estimates.

The stock is up 10.9% since reporting and currently trades at $16.96.

Read our full, actionable report on First Commonwealth Financial 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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