As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the regional banks industry, including Republic Bancorp (NASDAQ: RBCAA) 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 103 regional banks stocks we track reported a satisfactory Q1. As a group, revenues were in line with analysts’ consensus estimates.

While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.9% since the latest earnings results.

Republic Bancorp (NASDAQ: RBCAA)

With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.

Republic Bancorp reported revenues of $118.2 million, up 31.8% year on year. This print fell short of analysts’ expectations by 6.9%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but net interest income in line with analysts’ estimates.

Unsurprisingly, the stock is down 6.9% since reporting and currently trades at $68.63.

Is now the time to buy Republic Bancorp? Access our full analysis of the earnings results here, it’s free.

Best Q1: UMB Financial (NASDAQ: UMBF)

With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ: UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.

UMB Financial reported revenues of $689.2 million, up 76.7% year on year, outperforming analysts’ expectations by 8.6%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ tangible book value per share estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $110.55.

Is now the time to buy UMB Financial? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Coastal Financial (NASDAQ: CCB)

Pioneering the intersection of traditional banking and financial technology in the Pacific Northwest, Coastal Financial (NASDAQ: CCB) operates as a bank holding company that provides traditional banking services and Banking-as-a-Service (BaaS) solutions to consumers and businesses.

Coastal Financial reported revenues of $119.4 million, down 11.7% year on year, falling short of analysts’ expectations by 21.5%. It was a disappointing quarter as it posted a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 6.5% since the results and currently trades at $94.85.

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

Dime Community Bancshares (NASDAQ: DCOM)

With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ: DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.

Dime Community Bancshares reported revenues of $109.7 million, up 25.6% year on year. This number surpassed analysts’ expectations by 2.6%. More broadly, it was a satisfactory quarter as it also recorded a narrow beat of analysts’ net interest income estimates but EPS in line with analysts’ estimates.

The stock is down 4.1% since reporting and currently trades at $27.42.

Read our full, actionable report on Dime Community Bancshares here, it’s free.

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 $107.2 million, up 2% year on year. This print beat analysts’ expectations by 0.8%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ net interest income estimates.

The stock is down 11.7% since reporting and currently trades at $55.96.

Read our full, actionable report on Triumph Financial 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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