Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at National Bank Holdings (NYSE:NBHC) 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.
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 10.9% on average since the latest earnings results.
National Bank Holdings (NYSE:NBHC)
Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE:NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.
National Bank Holdings reported revenues of $102.1 million, up 2% year on year. This print fell short of analysts’ expectations by 2.8%. 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 6.5% since reporting and currently trades at $39.01.
Read our full report on National Bank 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 6.9% since reporting. It currently trades at $45.36.
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 22.5% since the results and currently trades at $61.01.
Read our full analysis of Triumph Financial’s results here.
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 1.2% year on year. This result beat analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ tangible book value per share estimates but EPS in line with analysts’ estimates.
The stock is up 9.1% since reporting and currently trades at $16.68.
Read our full, actionable report on First Commonwealth Financial here, it’s free.
Axos Financial (NYSE:AX)
Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE:AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.
Axos Financial reported revenues of $308.8 million, up 4.8% year on year. This number surpassed analysts’ expectations by 1%. Taking a step back, it was a mixed quarter as it also produced tangible book value per share in line with analysts’ estimates.
The stock is up 8.1% since reporting and currently trades at $78.32.
Read our full, actionable report on Axos 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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