Wrapping up Q1 earnings, we look at the numbers and key takeaways for the regional banks stocks, including Wintrust Financial (NASDAQ: WTFC) and its peers.
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.
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.
Wintrust Financial (NASDAQ: WTFC)
Founded in 1991 as a community-focused alternative to big banks in the Chicago area, Wintrust Financial (NASDAQGS:WTFC) operates community banks in the Chicago area and provides specialty finance services including insurance premium financing and wealth management.
Wintrust Financial reported revenues of $643.1 million, up 6.3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ EPS estimates but tangible book value per share in line with analysts’ estimates.
Timothy S. Crane, President and Chief Executive Officer, commented, “Building on our record results in 2024, we are pleased with our strong start to the year. Our balanced business model supported disciplined loan growth, which was funded by robust deposit growth in the first quarter of 2025.”
Interestingly, the stock is up 16.8% since reporting and currently trades at $118.70.
Is now the time to buy Wintrust Financial? 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.
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.
First Merchants (NASDAQ: FRME)
Dating back to 1893 when it first opened its doors in Indiana, First Merchants (NASDAQ: FRME) is a Midwest regional bank providing commercial, consumer, and wealth management services through branches in Indiana, Ohio, Michigan, and Illinois.
First Merchants reported revenues of $166.5 million, up 8.3% year on year. This number topped analysts’ expectations by 1.1%. More broadly, it was a slower quarter as it produced a significant miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.
The stock is down 3.1% since reporting and currently trades at $35.72.
Read our full, actionable report on First Merchants 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 print surpassed analysts’ expectations by 0.8%. Overall, it was a strong quarter as it also recorded an impressive 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
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.
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