Core Viewpoint - Simmons First National Corporation (SFNC) is showing potential as a bullish investment opportunity due to a recent "golden cross" in its moving averages, indicating a possible breakout [1] Technical Analysis - SFNC's 50-day simple moving average has crossed above its 200-day simple moving average, a pattern known as a "golden cross" which is typically associated with bullish market sentiment [1] - A golden cross occurs after a downtrend, followed by a crossover of the shorter moving average over the longer one, leading to a positive trend reversal [2] Performance Metrics - Over the past four weeks, SFNC has experienced a price increase of 7.8% [3] - The stock is currently rated 1 (Strong Buy) on the Zacks Rank, suggesting strong potential for further gains [3] Earnings Expectations - There have been four upward revisions in earnings expectations for the current quarter, with no downward revisions, indicating positive sentiment among analysts [3] - The Zacks Consensus Estimate for earnings has also increased, reinforcing the bullish outlook for SFNC [3][5]

Simmons First National (SFNC) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The upward trend in estimate revisions for this bank holding company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correla ...

Core Insights - The company reported a strong fourth-quarter loan growth, marking the highest production pace in years, with total loans growing approximately 7% annualized, although underlying growth was noted to be even higher [3][7] - Management emphasized that deposit growth remains a key strategic priority, having reduced brokered deposits by about $1.4 billion [4][5][19] - The net interest margin (NIM) improved by 31 basis points to 3.81%, with expectations for stability in 2026 and potential increases due to deposit mix improvements [6][8][11] Loan Production and Growth - The fourth-quarter loan growth was the strongest in at least two years, significantly offsetting elevated paydowns, although some portfolio segments showed seasonal weakness [3][4] - The company anticipates low-to-mid single-digit loan growth for 2026, influenced by timing effects and a focus on credit discipline [2][7] Deposit Strategy - Deposit growth is framed as a central strategic focus, with efforts in consumer banking, private banking, and commercial initiatives aimed at attracting deposit-rich customers [19] - The company has a significant opportunity to increase non-interest-bearing deposits, which currently remain below peer levels [19] Net Interest Margin and Financial Outlook - The linked-quarter NIM increase was attributed to a balance sheet restructuring and core NIM expansion, with expectations for a stable margin in 2026 [6][8][9] - Management expects the cumulative deposit beta to moderate, with an estimated incremental beta for future rate cuts around 50% [10] Asset Quality and Credit Conditions - Management reported stable credit conditions, having resolved two problem credits with less impact than expected and completed a sale of the Equipment Finance business [13][15] - The company is focused on cleaning up legacy nonperformers and has adequate reserves for the actions taken [14] Efficiency Initiatives - The company is in the "middle innings" of its Better Bank initiative, with expenses below the fourth-quarter 2022 run-rate despite inflation and ongoing investments [16] - Management highlighted a continuous improvement mindset, with efforts to inspect and optimize processes across various functions [17] Capital Deployment and Investment - Priorities for capital deployment include organic growth and investment, with share repurchases remaining a potential tool based on market conditions [20] - The company plans to continue hiring and upgrading talent, particularly in revenue-generating areas and support functions related to automation [18]

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Financial Data and Key Metrics Changes - The net interest margin (NIM) increased by 94 basis points compared to the previous year, reaching 381 basis points in Q4 [82] - Pre-Provision Net Revenue rose by 60% year-over-year, indicating strong revenue growth [83] - The company reported a return on tangible common equity (ROTCE) of 16% for the quarter, reflecting a strong performance [60] Business Line Data and Key Metrics Changes - Loan growth in Q4 was the highest level of production seen in at least a couple of years, with a reported annualized growth rate exceeding 7% [8][10] - Agricultural loans were down in Q4, while the mortgage warehouse loans also decreased due to divestitures and charge-offs [9] - The pipeline for loans ready to close reached a multi-quarter high, indicating strong future growth potential [10] Market Data and Key Metrics Changes - The company noted that deposit competition remains high, particularly from smaller banks, but it maintains a dominant market share in many areas [22] - The competitive environment for loan pricing has become more challenging, particularly in commercial real estate (CRE) lending [24] Company Strategy and Development Direction - The company is focused on organic growth and investing in business sustainability and profitability as its top priorities [53] - There is a strong emphasis on improving processes and procedures as part of the Better Bank initiative, with ongoing efforts to enhance efficiency and scale [37][39] - The company aims to grow low-cost deposits and is optimistic about expanding its private banking and commercial capabilities [67][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of credit quality and the overall outlook for the company, citing a stable credit environment [32] - The company anticipates a stable NIM moving forward, with expectations for continued growth in net interest income (NII) without significant loan portfolio growth [18][19] - Management highlighted the importance of adapting to market conditions and leveraging opportunities across its footprint [34] Other Important Information - The company has reduced its square footage by 6%, contributing to cost savings and improved efficiency [42] - There is a focus on hiring talent across various business areas to drive innovation and efficiency [35] Q&A Session Summary Question: What are the drivers behind loan growth in Q4? - Management indicated that the loan growth was driven by a combination of improved pipeline quality and favorable market conditions, rather than aggressive rate cuts [48] Question: What is the outlook for NIM moving forward? - Management suggested that the top end of the NIM range has shifted upwards due to current market conditions, with expectations for stability in the mid-380s [51][52] Question: How does the company plan to grow customer deposits in 2026? - The strategy includes focusing on consumer banking, private banking, and enhancing commercial capabilities to attract deposit-rich customers [66][69] Question: What is the company's approach to asset quality and potential divestitures? - Management reported stable asset quality and indicated that recent divestitures were part of a strategy to clean up legacy non-performers [30][32] Question: How does the company view competition in the deposit and loan markets? - Management noted that while deposit competition is high, particularly from smaller banks, the company maintains a strong market position [22][24]

Simmons First National (NasdaqGS:SFNC) Q4 2025 Earnings call January 21, 2026 08:30 AM ET Company ParticipantsWoody Lay - VPJames Brogdon - President and CEOChris Steenberg - COODaniel Hobbs - CFOEdward J. Bilek - Head of Investor RelationsBrian Wilczynski - VP of Equity ResearchDavid Feaster - Managing Director of BankingConference Call ParticipantsGary Tenner - Managing Director and Senior Research AnalystOperatorGood day, and welcome to the Simmons First National Corporation Fourth Quarter Earnings Confe ...

Financial Data and Key Metrics Changes - The net interest margin (NIM) increased by 94 basis points compared to the previous year, reaching 381 basis points in Q4 2025, with a linked quarter growth of 31 basis points [12][65]. - The return on average tangible common equity (ROTCE) was reported at 16% for the quarter, indicating strong performance [46][65]. - Pre-provision net revenue increased by 60% year-over-year, reflecting significant revenue growth [65]. Business Line Data and Key Metrics Changes - Loan growth in Q4 2025 was robust, with a reported annualized growth rate exceeding 7%, driven by strong production despite elevated paydowns [7][10]. - The pipeline for loans ready to close reached a multi-quarter high, indicating positive momentum for future growth [10]. - The company experienced a decline in agricultural loans and mortgage warehouse loans, which were impacted by seasonal adjustments and divestitures [8]. Market Data and Key Metrics Changes - The competitive environment for loans has intensified, particularly in commercial real estate (CRE), where irrational pricing has affected profitability [22]. - The deposit competition remains strong, especially from smaller banks, but the company maintains a dominant market share in many areas [21]. Company Strategy and Development Direction - The company is focused on organic growth and investing in business capabilities, particularly in low-cost deposits and private banking [52][54]. - There is an emphasis on improving operational efficiency through automation and process standardization, with a goal to enhance profitability [32][35]. - The strategic focus includes expanding capabilities in commercial and middle-market C&I, with significant investments in talent and processes [53]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth prospects for 2026, citing a strong pipeline and improved quality of opportunities [39]. - The company anticipates stable NIM moving forward, with expectations of continued benefits from backbook repricing [18][19]. - The overall credit quality remains stable, with no significant concerns identified during recent assessments [27]. Other Important Information - The company has reduced its square footage by 6%, contributing to cost savings and operational efficiency [35]. - The effective tax rate for Q4 was lower than expected for 2026, which may impact future profitability metrics [48]. Q&A Session Summary Question: What are the drivers behind loan growth in Q4? - Management noted that loan growth was driven by a combination of improved pipeline quality and favorable timing, rather than aggressive rate cuts or lowered profitability standards [38]. Question: How clean is the reported NIM number? - The NIM growth was attributed to a balance sheet restructure and core NIM expansion, with expectations for stability in the near term [12][13]. Question: What is the outlook for asset quality? - Management indicated that asset quality remains stable, with no significant issues identified during recent evaluations [27]. Question: What are the strategies for growing customer deposits? - The company is focusing on enhancing consumer banking practices and expanding private banking services to attract more deposits [52][54]. Question: How does the company view the competitive landscape for loans and deposits? - Management acknowledged increased competition in loan pricing, particularly in CRE, while noting strong market positions in deposit competition [21][22].

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Nasdaq SFNC 4 th Quarter 2025 Earnings Presentation January 20, 2026 Company Overview $24.5 BILLION TOTAL ASSETS $20.2 BILLION TOTAL DEPOSITS $9.4 BILLION ASSETS UNDER MANAGEMENT/ ADMINISTRATION $17.5 BILLION TOTAL LOANS 14.45% TOTAL RBC RATIO 8.71% TCE RATIO1 4.4% DIVIDEND YIELD2 87% LOAN TO DEPOSIT RATIO 1.28% ACL TO TOTAL LOANS 199% NPL COVERAGE RATIO Simmons First National Corporation A Mid-South based financial holding company serving our customers and the communities where we work and live since 1903 ...

Financial Performance - Net income for Q4 2025 was $78.1 million, a significant recovery from a net loss of $562.8 million in Q3 2025 and an increase from $48.3 million in Q4 2024[6] - Diluted earnings per share (EPS) for Q4 2025 were $0.54, compared to $(4.00) in Q3 2025 and $0.38 in Q4 2024[6] - Noninterest income for Q4 2025 was $51.7 million, a recovery from a loss of $(756.2) million in Q3 2025[13] - Net income for Q4 2025 was $78,078,000, compared to a net loss of $562,792,000 in Q3 2025[42] - Adjusted earnings for Q4 2025 were $78,975,000, up from $64,930,000 in Q3 2025[51] - The net income for the year-to-date is $(397,553) thousand, a decrease from $(475,631) thousand in the previous quarter, indicating a recovery in performance[53] - Adjusted earnings (non-GAAP) for the year-to-date stand at $233,098 thousand, up from $154,123 thousand in the previous quarter, representing a growth of 51.2%[53] Loan and Deposit Growth - Total loans increased by 7% on an annualized basis, while customer deposits grew by 8% annualized[3] - Total loans at the end of Q4 2025 were $17.5 billion, an increase of $303.4 million, or 7% annualized, from Q3 2025[17] - Total deposits at the end of Q4 2025 were $20.2 billion, up $349 million, or 8% annualized, from Q3 2025, but down from $21.9 billion in Q4 2024[19] - Net loans increased to $17.27 billion as of December 31, 2025, compared to $16.77 billion a year earlier, reflecting a growth of approximately 2.9%[41] - Total deposits reached $20.18 billion, up from $19.84 billion in September 2025, indicating a growth of about 1.7%[41] Credit Quality - Nonperforming loans decreased by 26 basis points to 0.64% of total loans, reflecting improved credit quality[4] - Nonperforming loans decreased to $112.7 million in Q4 2025 from $153.9 million in Q3 2025, reflecting a $40.8 million decline related to two credit relationships[22] - The allowance for credit losses on loans was $224.4 million at the end of Q4 2025, down from $258.0 million in Q3 2025, with an ACL ratio of 1.28%[25] - Total loans charged off amounted to $49,750,000, significantly higher than the previous quarter's $11,891,000, indicating a substantial increase in credit losses[47] - Nonperforming assets to total assets ratio improved to 0.51%, compared to 0.66% in the previous quarter[47] Interest Income and Margin - Net interest income for Q4 2025 was $197.3 million, up 6% from $186.7 million in Q3 2025 and up 20% from $164.9 million in Q4 2024[10] - Total interest income for Q4 2025 was $307,531,000, a decrease of 5.9% from $325,982,000 in Q4 2024[42] - Net interest income after provision for credit losses increased to $182,180,000, up 20.2% from $151,610,000 in Q4 2024[42] - Net interest margin expanded by 31 basis points to 3.81% in Q4 2025, compared to 3.50% in Q3 2025 and 2.87% in Q4 2024[11] - Net interest margin (FTE) for Q4 2025 was 3.81%, an increase from 3.50% in Q3 2025[49] Efficiency and Expenses - The efficiency ratio improved to 53.6% in Q4 2025, indicating better cost management[3] - Noninterest expense decreased to $139.9 million in Q4 2025 from $142.0 million in Q3 2025[15] - The efficiency ratio improved to 55.52% in Q4 2025 from 62.82% in Q2 2025[16] - Noninterest expense for Q4 2025 was $139,862 thousand, slightly down from $142,032 thousand in Q3 2025[58] - Adjusted efficiency ratio for Q4 2025 was 53.64%, an improvement from 57.72% in Q3 2025[58] Capital and Equity - Total stockholders' equity at the end of Q4 2025 was $3.4 billion, unchanged from Q3 2025, with a book value per share of $23.62[27] - The common equity tier 1 (CET1) ratio was 11.6% at the end of Q4 2025, stable compared to Q3 2025[30] - Tier 1 capital increased to $2,337,531,000, up from $2,291,191,000 in Q3 2025[43] - Total common stockholders' equity increased to $3,419,240 thousand in Q4 2025 from $3,353,963 thousand in Q3 2025, reflecting a growth of 1.93%[55] - The ratio of common equity to assets improved to 13.93% in Q4 2025, compared to 13.85% in Q3 2025[55] Miscellaneous - The company did not repurchase shares during Q4 2025, with remaining authorization under the stock repurchase program of approximately $175 million[31] - The commercial loan pipeline totaled $1.5 billion at the end of Q4 2025, with ready to close commercial loans at $774 million[17] - The company emphasizes the importance of non-GAAP financial measures for understanding ongoing operations, excluding the effects of mergers and other non-central items[37]