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

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