Looking back on regional banks stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Frost Bank (NYSE: CFR) 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.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Frost Bank (NYSE: CFR)

Tracing its roots back to 1868 when it was founded during Texas's post-Civil War reconstruction era, Cullen/Frost Bankers (NYSE: CFR) operates Frost Bank, a Texas-based financial institution providing commercial and consumer banking, wealth management, and insurance services.

Frost Bank reported revenues of $574.8 million, up 6.4% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a slower quarter for the company with a significant miss of analysts’ net interest income and revenue estimates.

Unsurprisingly, the stock is down 5.1% since reporting and currently trades at $135.54.

Read our full report on Frost Bank 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 a solid beat of analysts’ net interest income estimates.

UMB Financial pulled off the biggest analyst estimate beat among its peers. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $129.19.

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’ revenue and net interest income estimates.

The stock is flat since the results and currently trades at $46.68.

Read our full analysis of BankUnited’s results here.

Merchants Bancorp (NASDAQ: MBIN)

With a strategic focus on low-risk, government-backed lending programs, Merchants Bancorp (NASDAQCM:MBIN) is an Indiana-based bank holding company specializing in multi-family mortgage banking, mortgage warehousing, and traditional banking services.

Merchants Bancorp reported revenues of $175.2 million, up 20.1% year on year. This number met analysts’ expectations. Aside from that, it was a slower quarter as it recorded a miss of analysts’ net interest income estimates and revenue in line with analysts’ estimates.

The stock is down 5.7% since reporting and currently trades at $46.82.

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

Prosperity Bancshares (NYSE: PB)

With a network of banking centers spanning the Lone Star State and beyond, Prosperity Bancshares (NYSE: PB) operates full-service banking locations throughout Texas and Oklahoma, offering a wide range of financial products and services to businesses and consumers.

Prosperity Bancshares reported revenues of $367.9 million, up 19.7% year on year. This print topped analysts’ expectations by 2.3%. Taking a step back, it was a satisfactory quarter as it also recorded a solid beat of analysts’ net interest income estimates but a miss of analysts’ tangible book value per share estimates.

The stock is down 1.2% since reporting and currently trades at $68.65.

Read our full, actionable report on Prosperity Bancshares 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.

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