Regional Banks Stocks Q1 Recap: Benchmarking Veritex Holdings (NASDAQ:VBTX)

July 06, 2025 at 23:41 PM EDT

VBTX Cover Image

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Veritex Holdings (NASDAQ: VBTX) and the rest of the regional banks stocks fared in Q1.

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 13.9% on average since the latest earnings results.

Veritex Holdings (NASDAQ: VBTX)

Founded during the 2009 financial crisis when many banks were failing, Veritex Holdings (NASDAQGM:VBTX) operates Veritex Community Bank, providing commercial and retail banking services to small and medium-sized businesses and professionals in Texas.

Veritex Holdings reported revenues of $110.2 million, up 4.2% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ tangible book value per share estimates but a slight miss of analysts’ net interest income estimates.

“We continue to strengthen our balance sheet in support of our clients during a time of change and uncertainty,” said C. Malcolm Holland, III, the Company’s Chairman and Chief Executive Officer.

Interestingly, the stock is up 25% since reporting and currently trades at $27.62.

Read our full report on Veritex Holdings 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 9.2% since reporting. It currently trades at $46.34.

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 27.9% since the results and currently trades at $63.72.

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

BancFirst (NASDAQ: BANF)

Operating as a "super community bank" with a decentralized management approach that emphasizes local responsiveness, BancFirst Corporation (NASDAQ: BANF) operates as a financial holding company providing commercial banking services to retail customers and small to medium-sized businesses primarily in Oklahoma and Texas.

BancFirst reported revenues of $164.8 million, up 8.9% year on year. This number beat analysts’ expectations by 2.4%. It was a strong quarter as it also put up an impressive beat of analysts’ net interest income estimates and a narrow beat of analysts’ tangible book value per share estimates.

The stock is up 19.9% since reporting and currently trades at $131.35.

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

Valley National Bank (NASDAQ: VLY)

Tracing its roots back to 1927 during the economic boom before the Great Depression, Valley National Bancorp (NASDAQGS:VLY) operates Valley National Bank, providing commercial, consumer, and wealth management banking services across several states.

Valley National Bank reported revenues of $478.4 million, up 5.2% year on year. This print came in 1.4% below analysts' expectations. Overall, it was a softer quarter as it also logged a significant miss of analysts’ EPS estimates and a slight miss of analysts’ net interest income estimates.

The stock is up 12.2% since reporting and currently trades at $9.66.

Read our full, actionable report on Valley National Bank here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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