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 Popular (NASDAQ: BPOP) 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 regional banks stocks we track reported a slower 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% since the latest earnings results.

Popular (NASDAQ: BPOP)

Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular (NASDAQ: BPOP) is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States.

Popular reported revenues of $836 million, up 10.2% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a beat of analysts’ EPS and net interest income estimates.

“We delivered a strong start to 2026, with net income of $246 million and earnings per share of $3.78, up 38% and 48%, respectively, year-over-year, reflecting disciplined execution across our businesses and continued momentum throughout the franchise,” said Javier D. Ferrer, President and Chief Executive Officer of Popular, Inc.

The stock is down 2.3% since reporting and currently trades at $144.88.

We think Popular is a good business, but is it a buy today? Read our full report 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 and net interest income estimates.

UMB Financial delivered the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 1.5% since reporting. It currently trades at $127.24.

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.

As expected, the stock is down 1.5% since the results and currently trades at $46.06.

Read our full analysis of BankUnited’s results here.

Cathay General Bancorp (NASDAQ: CATY)

Founded in 1962 with its first branch in Los Angeles' Chinatown, Cathay General Bancorp (NASDAQ: CATY) operates Cathay Bank, providing commercial banking services to businesses and individuals with a strong presence in Asian-American communities.

Cathay General Bancorp reported revenues of $213.2 million, up 11% year on year. This number surpassed analysts’ expectations by 0.8%. It was a satisfactory quarter as it also recorded a narrow beat of analysts’ tangible book value per share estimates.

The stock is up 4.6% since reporting and currently trades at $56.27.

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

Independent Bank (NASDAQ: INDB)

Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ: INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Independent Bank reported revenues of $252.5 million, up 41.8% year on year. This print was in line with analysts’ expectations. More broadly, it was a slower quarter as it produced a narrow beat of analysts’ EPS estimates and a slight miss of analysts’ tangible book value per share estimates.

The stock is down 2% since reporting and currently trades at $76.88.

Read our full, actionable report on Independent Bank 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.