Simmons First National (NASDAQ:SFNC) announced on Tuesday the pricing of a public underwritten offering of $325M 6.25% fixed-to-floating rate subordinated notes due 2035. The notes were priced at par. Net proceeds, along with cash on hand, are intended to be used to ...

Accessibility StatementSkip Navigation PINE BLUFF, Ark., Sept. 9, 2025 /PRNewswire/ -- Simmons First National Corporation (NASDAQ: SFNC) (the "Company" or "Simmons"), parent company of Simmons Bank, today announced the pricing of its public underwritten offering and sale of $325 million aggregate principal amount of its 6.25% Fixed-to-Floating Rate Subordinated Notes due 2035 (the "Notes"). The Notes were priced at par. The Company intends to use the net proceeds from the Offering, along with cash on hand, ...

Company Overview - Simmons First National (SFNC) is a bank holding company based in Pine Bluff, operating in the Finance sector. The company's shares have experienced a price change of -10.05% this year [3]. Dividend Information - SFNC currently pays a dividend of $0.21 per share, resulting in a dividend yield of 4.26%, which is significantly higher than the Banks - Southeast industry's yield of 2.34% and the S&P 500's yield of 1.51% [3]. - The annualized dividend of $0.85 has increased by 1.2% from the previous year. Over the last five years, SFNC has raised its dividend five times, achieving an average annual increase of 5.01% [4]. Earnings Growth - The Zacks Consensus Estimate for SFNC's earnings in 2025 is projected at $1.66 per share, indicating a year-over-year earnings growth rate of 17.73% [5]. Payout Ratio - SFNC has a current payout ratio of 58%, meaning it distributes 58% of its trailing 12-month earnings per share as dividends [4]. Investment Appeal - SFNC is characterized as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [6].

[Part I: Financial Information](index=3&type=section&id=Part%20I%3A%20Financial%20Information) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Simmons First National Corporation reported increased H1 2025 net income, stable assets, and a significant subsequent balance sheet repositioning [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$26,693,620** | **$26,876,049** | | Net Loans | $16,857,559 | $16,770,918 | | Total Investments | $5,996,851 | $6,166,062 | | Goodwill | $1,320,799 | $1,320,799 | | **Total Liabilities** | **$23,144,410** | **$23,347,177** | | Total Deposits | $21,824,990 | $21,885,750 | | **Total Stockholders' Equity** | **$3,549,210** | **$3,528,872** | - Total assets decreased slightly from **$26.88 billion** at the end of 2024 to **$26.69 billion** as of June 30, 2025, primarily driven by a decrease in total investments, while net loans saw a modest increase[9](index=9&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) | (In thousands, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $171,824 | $153,905 | $335,246 | $305,811 | | Provision for credit losses | $11,945 | $11,099 | $38,742 | $21,305 | | **Net Income** | **$54,773** | **$40,763** | **$87,161** | **$79,634** | | **Diluted Earnings Per Share** | **$0.43** | **$0.32** | **$0.69** | **$0.63** | - Net income for Q2 2025 was **$54.8 million**, a significant increase from **$40.8 million** in Q2 2024, with six-month net income rising to **$87.2 million** from **$79.6 million** year-over-year, driven by higher net interest income[11](index=11&type=chunk) - The provision for credit losses increased to **$38.7 million** for the first six months of 2025, up from **$21.3 million** in the same period of 2024, indicating a more cautious outlook on credit quality[11](index=11&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $54,773 | $40,763 | $87,161 | $79,634 | | Total Other Comprehensive Income (Loss) | $(13,190) | $2,535 | $(19,990) | $(1,106) | | **Comprehensive Income** | **$41,583** | **$43,298** | **$67,171** | **$78,528** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $110,439 | $143,654 | | Net cash provided by (used in) investing activities | $79,677 | $(84,382) | | Net cash used in financing activities | $(233,031) | $(99,031) | | **Decrease in Cash and Cash Equivalents** | **$(42,915)** | **$(39,759)** | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) - Total stockholders' equity increased from **$3.53 billion** at the end of 2024 to **$3.55 billion** at June 30, 2025, driven by net income of **$87.2 million**, partially offset by dividends paid of **$53.5 million** and an increase in accumulated other comprehensive loss of **$20.0 million**[21](index=21&type=chunk) [Condensed Notes to Consolidated Financial Statements](index=10&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) - The company operates approximately **223 financial centers** across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas as of June 30, 2025[23](index=23&type=chunk) - A significant subsequent event in July 2025 involved reclassifying **$3.6 billion** of Held-to-Maturity securities to Available-for-Sale and selling approximately **$3.2 billion** of AFS securities, resulting in an estimated after-tax loss of approximately **$604.0 million** to be recorded in Q3 2025[56](index=56&type=chunk)[198](index=198&type=chunk) - In July 2025, the company closed a public offering of **18,653,000 shares** of its Class A common stock, generating net proceeds of approximately **$326.9 million**[125](index=125&type=chunk)[197](index=197&type=chunk) [Report of Independent Registered Public Accounting Firm](index=52&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) - The independent registered public accounting firm, Forvis Mazars, LLP, reviewed the interim financial statements and is not aware of any material modifications needed for them to conform with U.S. GAAP[200](index=200&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses improved H1 2025 profitability driven by net interest margin expansion, stable asset quality, and a significant balance sheet repositioning | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income | $54.8 million | $32.4 million | | Diluted EPS | $0.43 | $0.26 | | Adjusted Net Income (non-GAAP) | $56.1 million | $33.1 million | | Adjusted Diluted EPS (non-GAAP) | $0.44 | $0.26 | - Nonperforming assets as a percentage of total assets increased to **0.62%** at June 30, 2025, compared to **0.45%** at December 31, 2024, primarily due to two specific credit relationships migrating to nonperforming status[209](index=209&type=chunk)[278](index=278&type=chunk) - The company maintains a strong liquidity position with a loan-to-deposit ratio of **78%** and available liquidity sources of **$10.72 billion**, providing **2.3x coverage** for uninsured, non-collateralized deposits[211](index=211&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=78&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk with a liability-sensitive balance sheet, projecting impacts on net interest income, and maintains ample liquidity - The parent company's primary sources of liquidity are dividends from its subsidiary, Simmons Bank, with **$78.2 million** available for dividends to the parent company without prior regulatory approval as of June 30, 2025[344](index=344&type=chunk) - The company has seven primary and secondary sources of liquidity, including federal funds lines (**$435.0 million**), FHLB credit lines (**$5.13 billion**), wholesale and retail deposits, a laddered investment portfolio, correspondent bank lines, and the Federal Reserve Discount Window[348](index=348&type=chunk) | Interest Rate Scenario | % Change in Net Interest Income from Base | | :--- | :--- | | Up 200 basis points | (2.48)% | | Up 100 basis points | (1.10)% | | Down 100 basis points | 0.10% | | Down 200 basis points | 0.37% | [Controls and Procedures](index=80&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO, CFO, and Chief Accounting Officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[362](index=362&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, these controls[363](index=363&type=chunk) [Part II: Other Information](index=80&type=section&id=Part%20II%3A%20Other%20Information) [Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, with management expecting no material adverse effect on financial condition - The company is party to various legal proceedings in the ordinary course of business, and management believes the ultimate outcome will not have a material adverse effect on the company's financial condition[120](index=120&type=chunk)[121](index=121&type=chunk) [Risk Factors](index=80&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor addresses the potential adverse tax implications of a significant Q3 2025 investment securities loss - A new risk factor was added regarding the tax treatment of the estimated **$604.0 million** after-tax loss from the sale of investment securities in Q3 2025, with the company expecting ordinary treatment for the losses, but an adverse IRS determination could have a material negative impact[367](index=367&type=chunk)[368](index=368&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=81&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has an active stock repurchase program, though no shares were repurchased during Q2 2025 - The company has a stock repurchase program authorizing up to **$175.0 million** in share buybacks, which is effective until January 31, 2026[369](index=369&type=chunk) - No shares were repurchased during the three months ended June 30, 2025[370](index=370&type=chunk) [Other Information](index=81&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated trading arrangements during Q2 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the second quarter of 2025[371](index=371&type=chunk) [Exhibits](index=82&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate documents and certifications [Signatures](index=83&type=section&id=Signatures) The report is duly signed and authorized by the company's key executives as of August 5, 2025

Group 1 - The company expresses gratitude to George for his leadership over a decade, highlighting his role in the geographic transformation and unprecedented growth during challenging times [1] - The board has implemented a deliberate succession planning process, resulting in a capable executive leadership team ready for future challenges [1] - Brogdon, who has been with the company since 2021 and served as President since January 2023, is well-prepared to take over as CEO, with a strong background in investment banking and finance [1][2] Group 2 - Simmons First National Corporation has a long history of paying cash dividends for 116 consecutive years and operates over 220 branches across multiple states [3] - The company has received several accolades, including recognition as one of America's Greatest Workplaces 2025 and one of America's Best Regional Banks 2025 [3] - Simmons Bank emphasizes its commitment to building value for customers, communities, and shareholders with integrity and passion [3]

Core Points - The Simmons Bank Championship presented by Stephens is a PGA TOUR Champions playoff event taking place from October 20-26, 2025, at Pleasant Valley Country Club in Little Rock, Arkansas, featuring a total prize purse of $2.3 million [1][10] - The tournament will include the top 54 players in the standings competing for a chance to qualify for the final event of the season [1][10] Ticket Options - General admission tickets are available for $30 for single-day access, $35 for a Good Any One Day ticket, and $85 for a weekend pass covering all three days [2] - Children aged 15 and under can enter for free with a ticketed adult [2] - Upgraded hospitality options include a 15th green shared hospitality ticket for $300 per day or $850 for the weekend, offering food and beverage services [2] Exclusive Hospitality Packages - Parker Lexus Lounge tickets are priced at $5,000 for a 4-pack weekend ticket, including VIP parking and access to premium food and beverages [3] - The 16th Green Cabanas are available for $18,000 for a 12-person weekend ticket, providing an upscale hospitality experience with all-inclusive services [4] - The Arkansas Champions Club VIP pass includes exclusive access to the clubhouse, premium food and beverages, and post-play entertainment [5] Military Discounts - Active, reserve, and retired military personnel can receive two complimentary Good Any Day tickets and purchase additional discounted tickets [6] Corporate Opportunities - Corporate sponsorships, hospitality packages, and Pro-Am golf experience positions are available for purchase [7]

Core Viewpoint - Simmons First National Corporation has announced a public offering of 16,220,000 shares of its Class A common stock at a price of $18.50 per share, totaling approximately $300 million [1][2]. Group 1: Offering Details - The public offering is priced at $18.50 per share, with an aggregate offering amount of $300,070,000 [1]. - The company has granted underwriters a 30-day option to purchase an additional 2,433,000 shares at the public offering price [1]. - The offering is expected to close on or about July 23, 2025, subject to customary conditions [3]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for general corporate purposes, which may include investments in Simmons Bank to support potential balance sheet repositioning and continued growth [2]. Group 3: Company Background - Simmons First National Corporation is a financial holding company based in the Mid-South, with a history of paying cash dividends for 116 consecutive years [6]. - Its principal subsidiary, Simmons Bank, operates over 220 branches across several states, including Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas [6]. - Simmons Bank has received multiple recognitions, including being named one of America's Best Regional Banks 2025 by Newsweek [6].

Core Insights - Simmons First National reported non-GAAP earnings per share of $0.44, exceeding analyst expectations of $0.39, while revenue was $214.2 million, slightly below the consensus forecast of $216.66 million [1][2] - The quarter demonstrated progress in profitability, margin expansion, and efficiency, despite a slow growth pace and rising credit costs [1] Financial Performance - Non-GAAP EPS increased by 33.3% year-over-year from $0.33 in Q2 2024 [2] - Revenue grew by 8.6% compared to Q2 2024, up from $197.2 million [2] - Net interest income rose by 11.6% year-over-year to $171.8 million [2] - Noninterest expense decreased slightly by 0.6% year-over-year to $138.6 million [2] - The net charge-off ratio increased to 0.25%, up from 0.19% in Q2 2024 [2] - Return on average tangible common equity (non-GAAP) improved to 10.97%, up from 8.89% in Q2 2024 [2] Operational Highlights - The net interest margin reached 3.06%, marking the fifth consecutive quarter of growth [6] - Cost of deposits decreased to 2.36%, down from 2.79% in Q2 2024 [6] - Noninterest income fell by about 2% year-over-year, primarily due to lower fee income from interest rate swaps [7] - Loan balances remained stable at $17.1 billion, with growth in commercial and industrial loans [8] - The deposit base held steady at $21.8 billion, with an increase in brokered deposits [9] Asset Quality and Capital Management - Nonperforming loans rose to $157.2 million from $103.4 million in Q2 2024, affecting the nonperforming loan coverage ratio [10] - The common equity tier 1 (CET1) ratio improved to 12.36%, above regulatory requirements [11] - Tangible book value per share increased to $16.97, with no share repurchases during the period [11] Strategic Focus - The company is focused on maintaining asset quality, strong capital ratios, cost control, and organic growth [4] - Management highlighted a strong loan pipeline of $1.6 billion, with $564 million close to funding [13] - The company aims to manage deposit competition and increase low-cost deposits [13][14]

Financial Data and Key Metrics Changes - The company continues to see positive trends in net interest income (NII) and expenses, indicating a favorable financial outlook moving forward [10][12] - The net interest margin (NIM) has exceeded the 3% level ahead of schedule, with expectations for continued expansion [12][20] Business Line Data and Key Metrics Changes - The loan portfolio is approximately 46% fixed rate, down from 48.5% in the previous quarter, indicating a shift towards variable rate loans [17] - The company has seen strong production in variable loans, with 75% of new production being variable this quarter, compared to 80% in the previous quarter [18] Market Data and Key Metrics Changes - The company is experiencing elevated payoffs, particularly in the construction sector, but does not anticipate significant changes in the paydown environment for the second half of the year [21][26] - The pipeline for loans remains strong, with a notable increase in commercial and industrial (C&I) loans, suggesting a positive outlook for future growth [37] Company Strategy and Development Direction - The company is focused on maintaining expense discipline while making significant investments in talent and technology to enhance operational capacity [30][31] - There is an emphasis on talent acquisition and retention, with the company positioning itself as a desirable destination for talent amid industry disruptions [32][33] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in the ability to execute on performance targets, with ongoing trends in business performance exceeding internal expectations [10][11] - The competitive landscape for loan pricing is acknowledged, with a commitment to maintaining pricing discipline despite market pressures [13][14] Other Important Information - The company has a continuous improvement mindset regarding expense management, indicating ongoing efforts to enhance operational efficiency [29] - The management team is optimistic about profitability improvements in the second half of the year, supported by strong employee engagement [43][44] Q&A Session Summary Question: Changes in guidance for the second half of 2025 - Management notes that guidance is typically provided in January, but current trends are positive and align with internal expectations [9][10] Question: Outlook on NIM and deposit costs - Management indicates that while there are opportunities for NIM expansion, the repricing dynamic for deposits is becoming less compelling [12][15] Question: Expectations for loan payoffs in the second half of the year - Management expects payoffs to remain consistent with the first half of the year, without significant changes anticipated [21] Question: Dynamics of the loan pipeline - Management attributes a modest decrease in the pipeline to a pull forward of opportunities in the first quarter and normal seasonal trends [25][26] Question: Hiring environment and talent acquisition - Management reports a favorable hiring environment and emphasizes ongoing investments in talent and technology to support business growth [31][32]

Financial Data and Key Metrics Changes - The company continues to be pleased with ongoing trends in business performance, with an acceleration in performance improvement exceeding internal expectations [7] - The net interest margin (NIM) has surpassed the 3% level ahead of schedule, indicating potential for further expansion [9] - The company is experiencing a remixing of deposits from higher-cost to lower-cost deposits, which is positively impacting financial performance [11] Business Line Data and Key Metrics Changes - The loan pipeline and production remain strong, although there are headwinds from elevated paydowns and market financing [10] - Fixed-rate loans, which make up about 46% of the total loan book, continue to reprice at a consistent spread, contributing positively to loan yields [14] - The company has shifted towards a higher percentage of variable production, which is expected to provide a positive tailwind for future performance [15] Market Data and Key Metrics Changes - The company is seeing a competitive market for loan pricing, which is affecting overall loan growth [10] - There is a noted seasonality in the agricultural sector, which impacts pipeline trends [24] Company Strategy and Development Direction - The company is focused on continuous improvement in expense discipline while making significant investments in talent and technology [26][28] - The hiring environment is favorable, with the company actively pursuing talent acquisition amidst competitive market conditions [29] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in executing business strategies and achieving performance targets, despite uncertainties in the economic environment [8] - The outlook for paydowns is expected to remain consistent with the first half of the year, with no significant changes anticipated [18] Other Important Information - The company emphasizes the importance of employee engagement and the need to provide resources for team success [41] - Management is optimistic about profitability improvement going into the second half of the year [42] Q&A Session Summary Question: Changes in guidance for 2025 - Management noted that guidance is typically provided in January, and while there are uncertainties, they remain confident in business trends [6][7] Question: Loan growth expectations and pipeline dynamics - Management indicated that the loan pipeline remains strong, with a shift towards commercial and industrial (C&I) relationships contributing to future growth [34] Question: Credit quality and classified loans - Management reported stable credit quality metrics, with no significant concerns regarding classified loans or past dues [36]