Let’s dig into the relative performance of NBT Bancorp (NASDAQ: NBTB) and its peers as we unravel the now-completed Q1 regional banks earnings season.

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 14.5% on average since the latest earnings results.

NBT Bancorp (NASDAQ: NBTB)

Tracing its roots back to 1856 when it first opened its doors in Norwich, New York, NBT Bancorp (NASDAQ: NBTB) is a community-oriented financial institution providing banking, wealth management, and insurance services to individuals and businesses across the northeastern United States.

NBT Bancorp reported revenues of $154.7 million, up 10% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a strong quarter for the company with a decent beat of analysts’ tangible book value per share estimates and a narrow beat of analysts’ net interest income estimates.

“Growth in both net interest income and noninterest income compared to the prior quarter and the first quarter of 2024 resulted in the generation of positive operating leverage by our team in the first quarter of 2025.” said NBT President and Chief Executive Officer Scott A. Kingsley.

Interestingly, the stock is up 4.1% since reporting and currently trades at $44.04.

Is now the time to buy NBT 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 10.4% since reporting. It currently trades at $46.83.

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 32.3% since the results and currently trades at $65.90.

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

Peoples Bancorp (NASDAQ: PEBO)

Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ: PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.

Peoples Bancorp reported revenues of $113 million, flat year on year. This number was in line with analysts’ expectations. However, it was a slower quarter as it recorded a miss of analysts’ EPS estimates.

The stock is up 15.7% since reporting and currently trades at $31.87.

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

Trustmark (NASDAQ: TRMK)

Tracing its roots back to 1889 in Mississippi, Trustmark (NASDAQ: TRMK) is a financial services organization providing banking, wealth management, insurance, and mortgage services across five southeastern states.

Trustmark reported revenues of $194.6 million, up 3.4% year on year. This result beat analysts’ expectations by 0.5%. Zooming out, it was a mixed quarter as it also recorded a decent beat of analysts’ tangible book value per share estimates but a significant miss of analysts’ net interest income estimates.

The stock is up 8% since reporting and currently trades at $38.70.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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