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]

Financial Performance - The company reported a net income of $78.1 million for the fourth quarter of 2025, a significant recovery from a net loss of $562.8 million in the previous quarter and an increase from $48.3 million in the same quarter of 2024 [6][7] - Diluted earnings per share (EPS) for the fourth quarter of 2025 were $0.54, compared to $(4.00) in the third quarter of 2025 and $0.38 in the fourth quarter of 2024 [6][9] - Total revenue for the fourth quarter of 2025 was $249.0 million, up from $208.5 million in the fourth quarter of 2024 [10][14] Balance Sheet and Asset Quality - Total loans increased to $17.5 billion, reflecting a 7% annualized growth compared to the previous quarter [19][20] - Total deposits rose to $20.2 billion, driven by an 8% annualized increase in customer deposits [21][23] - The nonperforming loan (NPL) ratio improved to 0.64%, down from 0.90% in the previous quarter [2][24] Capital Ratios - The company's total stockholders' equity was $3.4 billion, with a book value per share of $23.62 at the end of the fourth quarter of 2025 [29][30] - The common equity tier 1 (CET1) ratio was reported at 11.63%, indicating strong capital adequacy [30][33] Noninterest Income and Expenses - Noninterest income for the fourth quarter of 2025 was $51.7 million, a recovery from a loss of $756.2 million in the previous quarter [14][15] - Noninterest expenses decreased to $139.9 million, down from $142.0 million in the third quarter of 2025 [16][18] Management Commentary - The company's President and CEO highlighted that the fourth quarter results exceeded expectations, driven by strong revenue growth and disciplined expense management [3][4] - The company is optimistic about future growth and aims to continue delivering value to customers and shareholders [5]

Core Viewpoint - Analysts project that Simmons First National (SFNC) will report quarterly earnings of $0.49 per share, reflecting a year-over-year increase of 25.6% and revenues of $238.81 million, up 14.5% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have reassessed their initial estimates during this period [1][2]. Key Financial Metrics - Analysts estimate 'Total interest earning assets (FTE) - Average Balance' at $21.03 billion, down from $23.73 billion reported in the same quarter last year [4]. - The 'Efficiency Ratio' is projected to reach 57.9%, a decrease from 65.7% in the same quarter last year [4]. Nonperforming Loans and Assets - 'Total nonperforming loans' are expected to be $148.29 million, compared to $110.76 million reported in the same quarter last year [5]. - 'Total nonperforming assets' are forecasted to reach $155.24 million, up from $121.23 million in the same quarter last year [5]. Income Projections - 'Net Interest Income - FTE' is projected at $195.17 million, an increase from $171.37 million reported in the same quarter last year [6]. - 'Total Non-Interest Income' is expected to be $45.42 million, compared to $43.56 million in the same quarter last year [6]. Specific Revenue Streams - 'Wealth management fees' are estimated at $10.10 million, up from $8.83 million in the same quarter last year [7]. - 'Service charges on deposit accounts' are projected to reach $13.19 million, compared to $12.98 million reported in the same quarter last year [7]. - 'Debit and credit card fees' are expected to be $8.57 million, slightly up from $8.32 million in the same quarter last year [8]. - 'Net Interest Income' is anticipated to be $193.00 million, compared to $164.94 million in the same quarter last year [8]. Stock Performance - Shares of Simmons First National have shown a return of -4.2% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [8].

Group 1 - Simmons First National Corporation is scheduled to release its fourth quarter 2025 earnings on January 20, 2026, after market closing [1] - A live conference call will be held on January 21, 2026, at 7:30 a.m. Central Time to discuss the earnings [1] - Interested parties can access the call by dialing a toll-free number or through the company's website, where a recorded version will be available for at least 60 days [1] Group 2 - Simmons First National Corporation has paid cash dividends to shareholders for 116 consecutive years [2] - The principal subsidiary, Simmons Bank, operates over 220 branches across several states including Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas [2] - Simmons Bank has received multiple recognitions, including being named one of America's Best Regional Banks and Credit Unions 2026 by Newsweek [2]

Company Overview - Simmons First National Corporation is a regional banking institution that offers a diversified range of financial services, focusing on traditional and specialized banking solutions [6] - The company operates an extensive branch network, providing access to financial services through nearly 200 financial centers in the South-Central United States [9] Financial Performance - As of the most recent reporting period, Simmons First National reported a total revenue of $638.14 million and a net income of -$427.31 million [4] - The company's dividend yield stands at 4.52%, with shares priced at $18.67 as of December 5, 2025 [4] Recent Developments - Mendon Capital Advisors acquired a new position in Simmons First National, purchasing 406,570 shares valued at approximately $7.79 million during the third quarter of 2025 [1][2] - This new stake represents 2.99% of Mendon Capital's total reportable U.S. equity assets, which amounted to $260.71 million as of September 30, 2025 [3] Market Performance - As of December 5, 2025, Simmons First National's shares have decreased by 19.7% over the past year, underperforming the S&P 500 by 34.0 percentage points [3] - The stock has generated a five-year compound annual growth rate (CAGR) of only 1.2%, compared to the S&P 500's CAGR of 14.9% and the KRE's CAGR of 7.9% [12] Strategic Positioning - The company is currently undergoing a strategic repositioning aimed at freeing up capital, following a significant pre-tax loss due to a one-time sale of approximately $3.2 billion in assets [11]

Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow and the companies that generate it, which leads to value and growth prospects with real potential [1] Group 1 - The service includes access to a 50+ stock model account, in-depth cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [1] - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas market [2]

Financial Performance - The net loss for Q3 2025 was $562.8 million, or $(4.00) diluted earnings per share, compared to a net income of $54.8 million, or $0.43 diluted earnings per share for Q2 2025 [219]. - Adjusted earnings for Q3 2025 were $64.9 million, or $0.46 adjusted diluted earnings per share, compared to $56.1 million, or $0.44 adjusted diluted earnings per share for Q2 2025 [219]. - Total net income available to common stockholders for the three months ended September 30, 2025, was $(562,792) thousand, compared to $54,773 thousand for the previous quarter [354]. - Adjusted earnings (non-GAAP) for the three months ended September 30, 2025, were $64,930 thousand, an increase from $56,071 thousand in the previous quarter [354]. - The diluted earnings per share for the three months ended September 30, 2025, was $(4.00), compared to $0.43 in the previous quarter [354]. - Noninterest income for Q3 2025 was $(756,187) thousand, while adjusted noninterest income (non-GAAP) was $45,875 thousand [357]. - The company reported a realized after-tax loss of $625.6 million from the sale of approximately $3.2 billion in AFS securities during the third quarter of 2025 [278]. - Loss on sale of securities for Q3 2025 amounted to $801,492 thousand, significantly impacting net income [354]. Balance Sheet and Capital Management - The company raised $326.9 million in equity capital to reposition its balance sheet and address negative arbitrage between long-term bond yields and short-term funding costs [217]. - Stockholders' equity was $3.35 billion as of September 30, 2025, with a book value per share of $23.18 and tangible book value per share of $13.45 [223]. - Total assets decreased to $26.07 billion as of September 30, 2025, from $27.26 billion a year earlier, representing a decline of approximately 4.4% [254]. - The common equity to asset ratio improved to 13.85% at September 30, 2025, compared to 13.13% at year-end 2024, reflecting stronger capital management [325]. - The company raised $327.4 million from a public offering of 18,653,000 shares at $18.50 per share, which helped offset a realized after-tax loss of $625.6 million from selling AFS securities [329]. - The total Tier 1 capital was $2,291,191 thousand, down from $2,535,527 as of December 31, 2024 [337]. - The company's common equity Tier 1 ratio (CET1) was 11.54% as of September 30, 2025, compared to 12.38% at the end of 2024 [337]. - Total risk-based capital as of September 30, 2025, was $2,990,877, slightly down from $2,992,133 at the end of 2024 [337]. - Risk-weighted assets decreased to $19,861,879 as of September 30, 2025, from $20,473,960 as of December 31, 2024 [337]. - The company did not repurchase any shares during the three and nine month periods ended September 30, 2025 and 2024, with future repurchase decisions dependent on market conditions and capital needs [332]. Deposits and Loans - Total deposits as of September 30, 2025, were $19.84 billion, down from $21.89 billion as of December 31, 2024 [221]. - The loan to deposit ratio increased to 87% as of September 30, 2025, compared to 78% as of December 31, 2024 [221]. - As of September 30, 2025, total loans amounted to $17.19 billion, an increase of $182.9 million from December 31, 2024 [284]. - The loan portfolio averaged $16.98 billion during the first nine months of 2025, compared to $17.07 billion in the same period of 2024 [284]. - Real estate loans represented 77.8% of total loans at September 30, 2025, totaling $13.37 billion, a decrease of $23.2 million from December 31, 2024 [288]. - Commercial loans increased to $2.75 billion, or 16.0% of total loans, reflecting a growth of $55.2 million, or 2.0%, from December 31, 2024 [289]. - Nonperforming loans as of September 30, 2025, were $153.9 million, up from $110.8 million as of December 31, 2024 [222]. - The allowance for credit losses was 1.50% of total loans as of September 30, 2025, with a coverage ratio of 168% of nonperforming loans [299]. - The commercial loan pipeline was $1.61 billion at September 30, 2025, with $489.9 million approved and ready to close [291]. Interest Income and Expenses - Net interest income for Q3 2025 was $190.5 million, an increase of $12.2 million, or 6.9%, compared to Q2 2025 [240]. - Net interest margin on a fully taxable equivalent basis was 3.50% for the three months ended September 30, 2025, compared to 3.06% for the three months ended June 30, 2025, representing a 44 basis point increase [247]. - A $108.2 million decrease in interest expense was mainly due to a reduction in deposit account rates and lower volumes of higher-rate wholesale borrowings [246]. - Interest expense for the nine months ended September 30, 2025, totaled $108.2 million, compared to $73.6 million for the same period in 2024, reflecting an increase of 47.0% [256]. - The average rate paid on interest-bearing transaction and savings deposits was 2.45% as of September 30, 2025, down from 2.81% at December 31, 2024 [320]. Noninterest Income and Expenses - Noninterest income for the three months ended September 30, 2025, showed a loss of $756.2 million, a decrease of approximately $798.5 million compared to the previous quarter [261]. - Adjusted noninterest income for the three months ended September 30, 2025, increased by $3.5 million, or 8.3%, from the prior sequential quarter [261]. - Noninterest expense for the three months ended September 30, 2025 was $142.0 million, an increase of $3.4 million or 2.5% compared to the previous quarter [269]. - Salaries and employee benefits expense increased by $2.4 million or 3.2% for the three months ended September 30, 2025 compared to the previous quarter [271]. - Noninterest expense for the nine months ended September 30, 2025 increased by approximately $8.8 million or 2.1% compared to the same period in 2024 [270]. Credit Losses and Provisions - Provision for credit losses for the nine months ended September 30, 2025, was $50.7 million, up from $33.5 million for the same period in 2024, reflecting an increase of 51.4% [259]. - The provision for credit losses for the first nine months of 2025 was $53.9 million, compared to $33.5 million for the same period in 2024, reflecting a significant increase in credit risk [308]. - The allowance for credit losses increased by approximately $23.0 million from December 31, 2024, to September 30, 2025, while total loans increased by $182.9 million during the same period [310].