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 Western Alliance Bancorporation (NYSE: WAL).
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.
Western Alliance Bancorporation (NYSE: WAL)
Operating through five distinct regional banking divisions across the western United States, Western Alliance Bancorporation (NYSE: WAL) provides commercial banking, treasury management, mortgage services, and specialized financial solutions through its banking divisions and subsidiaries.
Western Alliance Bancorporation reported revenues of $778 million, up 6.8% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a softer quarter for the company with a miss of analysts’ net interest income estimates and a slight miss of analysts’ EPS estimates.
The stock is up 11.4% since reporting and currently trades at $72.38.
Is now the time to buy Western Alliance Bancorporation? 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 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.
TriCo Bancshares (NASDAQ: TCBK)
Founded in 1975 and headquartered in Chico, California, TriCo Bancshares (NASDAQ: TCBK) operates Tri Counties Bank, providing personal, small business, and commercial banking services through branches across California.
TriCo Bancshares reported revenues of $98.62 million, flat year on year. This number missed analysts’ expectations by 0.7%. It was a slower quarter as it also recorded EPS in line with analysts’ estimates and a slight miss of analysts’ net interest income estimates.
The stock is flat since reporting and currently trades at $38.78.
Read our full, actionable report on TriCo Bancshares here, it’s free.
Hancock Whitney (NASDAQ: HWC)
With roots dating back to 1899 and a strategic focus on the economically vibrant Gulf South region, Hancock Whitney (NASDAQ: HWC) is a regional bank providing commercial, consumer, and real estate loans alongside deposit services, wealth management, and treasury solutions.
Hancock Whitney reported revenues of $364.7 million, up 2.2% year on year. This print lagged analysts' expectations by 1.2%. It was a slower quarter as it also produced a miss of analysts’ net interest income estimates.
The stock is down 5.6% since reporting and currently trades at $53.61.
Read our full, actionable report on Hancock Whitney 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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