As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the regional banks industry, including First Merchants (NASDAQ: FRME) 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 91 regional banks stocks we track reported a slower Q1. As a group, revenues were in line with analysts’ consensus estimates.
Thankfully, share prices of the companies have been resilient as they are up 7.8% on average since the latest earnings results.
First Merchants (NASDAQ: FRME)
Dating back to 1893 when it first opened its doors in Indiana, First Merchants (NASDAQ: FRME) is a Midwest regional bank providing commercial, consumer, and wealth management services through branches in Indiana, Ohio, Michigan, and Illinois.
First Merchants reported revenues of $193.3 million, up 16.1% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but net interest income in line with analysts’ estimates.
"First Merchants delivered a strong start to 2026, highlighted by solid adjusted earnings growth, expanding net interest margin, and continued strength in commercial loan production," said Mark Hardwick, Chief Executive Officer.
Interestingly, the stock is up 8.3% since reporting and currently trades at $43.72.
Is now the time to buy First Merchants? 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 $744.8 million, up 29.3% year on year, outperforming analysts’ expectations by 5.4%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest income estimates.
UMB Financial delivered the biggest analyst estimate beat among its peers. The market seems happy with the results as the stock is up 15.6% since reporting. It currently trades at $144.91.
Is now the time to buy UMB Financial? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: BankUnited (NYSE: BKU)
Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE: BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area.
BankUnited reported revenues of $273.8 million, up 6.1% year on year, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a significant miss of analysts’ net interest income and EPS estimates.
Interestingly, the stock is up 5.3% since the results and currently trades at $49.26.
Read our full analysis of BankUnited’s results here.
Stellar Bancorp (NYSE: STEL)
Created through strategic mergers to serve the growing Texas business community, Stellar Bancorp (NYSE: STEL) is a Texas bank holding company that provides commercial banking services primarily to small and medium-sized businesses and professionals.
Stellar Bancorp reported revenues of $111.2 million, up 6% year on year. This print topped analysts’ expectations by 2.5%. It was a strong quarter as it also produced an impressive beat of analysts’ net interest income and EPS estimates.
The stock is up 5.2% since reporting and currently trades at $39.53.
Read our full, actionable report on Stellar Bancorp here, it’s free.
Seacoast Banking (NASDAQ: SBCF)
Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.
Seacoast Banking reported revenues of $205.1 million, up 45.6% year on year. This result met analysts’ expectations. However, it was a slower quarter as it recorded a significant miss of analysts’ tangible book value per share estimates and net interest income in line with analysts’ estimates.
The stock is up 5.2% since reporting and currently trades at $33.39.
Read our full, actionable report on Seacoast Banking here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
