Let’s dig into the relative performance of Pinnacle Financial Partners (NASDAQ: PNFP) 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 13.6% on average since the latest earnings results.

Pinnacle Financial Partners (NASDAQ: PNFP)

Founded in 2000 with a focus on delivering big-bank capabilities with community bank personalization, Pinnacle Financial Partners (NASDAQ: PNFP) is a Tennessee-based financial holding company that provides banking, investment, trust, mortgage, and insurance services to businesses and individuals.

Pinnacle Financial Partners reported revenues of $462.9 million, up 8.1% year on year. This print fell short of analysts’ expectations by 3%. Overall, it was a slower quarter for the company with a slight miss of analysts’ net interest income estimates.

"There is great volatility and economic uncertainty associated with tariffs, taxes and other policy changes," said M. Terry Turner, Pinnacle's president and chief executive officer.

Interestingly, the stock is up 5.6% since reporting and currently trades at $117.66.

Is now the time to buy Pinnacle Financial Partners? 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 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 9.3% since reporting. It currently trades at $46.37.

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 24.5% since the results and currently trades at $62.04.

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

BancFirst (NASDAQ: BANF)

Operating as a "super community bank" with a decentralized management approach that emphasizes local responsiveness, BancFirst Corporation (NASDAQ: BANF) operates as a financial holding company providing commercial banking services to retail customers and small to medium-sized businesses primarily in Oklahoma and Texas.

BancFirst reported revenues of $164.8 million, up 8.9% year on year. This result surpassed analysts’ expectations by 2.4%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ net interest income estimates and a narrow beat of analysts’ tangible book value per share estimates.

The stock is up 18.7% since reporting and currently trades at $130.05.

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

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 number topped analysts’ expectations by 2.7%. It was a strong quarter as it also put up a decent beat of analysts’ tangible book value per share estimates and a narrow beat of analysts’ net interest income estimates.

The stock is up 3.6% since reporting and currently trades at $43.83.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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