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Regional Banks Report Stronger Q1 and Map Out Modest Income Growth

Executives expect a Q2 rebound after seasonal Q1 pressure.

Overview

  • Several mid‑size lenders, including BankUnited, First BanCorp, Wesbanco and Bridgewater, reported Wednesday with year‑over‑year profit gains and stable funding.
  • Zions posted net earnings of $232 million, up 37% from a year ago, and said net interest income could rise about 7% to 8% over the next 12 months if rates hold.
  • Credit metrics stayed firm across results, with very low charge‑offs at Zions and a 26% drop in non‑performing loans at BankUnited.
  • Management teams guided to modest growth in interest income and loans, noting that Q1 margins reflected fewer days in the quarter and the lag from recent deposit repricing.
  • Banks kept capital flexible through share buybacks and at‑the‑market offerings and pursued targeted deals and fee businesses, including agency mortgage programs and payment processing.