Looking back on regional banks stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including TowneBank (NASDAQ: TOWN) 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 beat analysts’ consensus estimates by 0.5%.
Thankfully, share prices of the companies have been resilient as they are up 5% on average since the latest earnings results.
TowneBank (NASDAQ: TOWN)
Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank (NASDAQ: TOWN) is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.
TowneBank reported revenues of $192 million, up 14.9% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ tangible book value per share estimates and a beat of analysts’ EPS estimates.
"We were pleased to close our partnership with Village Bank and Trust Financial Corp. on April 1, 2025 followed by our latest announcement of the signing of a definitive agreement with Old Point Financial Corporation. Both transactions are strategically important for our Company and follow our disciplined model of targeting partnerships that enhance shareholder returns with low execution risk," stated William I. Foster III, President and Chief Executive Officer.
Interestingly, the stock is up 13.3% since reporting and currently trades at $36.89.
Is now the time to buy TowneBank? 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 a beat of analysts’ EPS estimates and an impressive beat of analysts’ tangible book value per share estimates.
The market seems happy with the results as the stock is up 11.8% since reporting. It currently trades at $122.72.
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.
Interestingly, the stock is up 13.8% since the results and currently trades at $115.50.
Read our full analysis of Coastal Financial’s results here.
Origin Bancorp (NYSE: OBK)
Founded in 1912 during the early boom days of Louisiana banking, Origin Bancorp (NYSE: OBK) is a financial holding company that provides personalized banking services to businesses, municipalities, and individuals across Texas, Louisiana, and Mississippi.
Origin Bancorp reported revenues of $83.5 million, down 13.3% year on year. This number came in 14.5% below analysts' expectations. Overall, it was a mixed quarter for the company.
The stock is up 3.1% since reporting and currently trades at $38.80.
Read our full, actionable report on Origin Bancorp here, it’s free.
United Bankshares (NASDAQ: UBSI)
With roots dating back to 1982 and a strong presence in the Mid-Atlantic region, United Bankshares (NASDAQ: UBSI) is a bank holding company that provides commercial and retail banking services through its United Bank subsidiary across multiple states.
United Bankshares reported revenues of $306 million, up 19.6% year on year. This result beat analysts’ expectations by 2.6%. It was a very strong quarter as it also produced an impressive beat of analysts’ net interest income estimates and a beat of analysts’ EPS estimates.
The stock is up 5.3% since reporting and currently trades at $38.83.
Read our full, actionable report on United Bankshares 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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