US Midwest banks off to strong start in 2025 despite tariffs, Hovde Group says

Lakeland Financial

06/05/2025 14:10

** Hovde Group says U.S. Midwest banks had a great start to the year considering the overhang of tariffs and cross currents in macro fundamentals

** Nearly 80% of the 30 Midwest banks in Hovde's coverage beat EPS expectations for Q1, with interest margin expansion being the huge highlight

** Brokerage upgrades Bank First BFC.O, First Savings Financial Group FSFG.O, Lakeland Financial LKFN.O, and HBT Financial HBT.O to "outperform" rating

** Hovde says BFC and LKFN are firmly in the high-performing category for community banks, while HBT is also worth viewing through this lens

** Says FSFG has several bank-specific catalysts, given a more palatable business thanks to its strategic shift as well as a discounted valuation

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))