Core Insights - Simmons Bank has appointed David Kennedy as executive vice president and chief technology officer, bringing over 25 years of technology experience to the role [1][2] - Kennedy's responsibilities will include overseeing technology capabilities across the bank, focusing on innovation, infrastructure, cost reduction, and collaboration to align technology efforts with business success [1][2] Company Overview - Simmons Bank is a wholly owned subsidiary of Simmons First National Corporation, operating 222 branches across several states including Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas [4] - The bank has a long history, having been founded in 1903, and has paid cash dividends for 116 consecutive years [4] - In 2024, Simmons Bank received multiple accolades, including recognition as one of America's Best Regional Banks 2025 by Newsweek and one of the Best Companies to Work For in the South by U.S. News & World Report [4]

Financial Performance - Net income for the three months ended March 31, 2025, was $32.4 million, or $0.26 diluted earnings per share, compared to $48.3 million, or $0.38 diluted earnings per share for the previous quarter[195]. - Adjusted earnings for the three months ended March 31, 2025, were $33.1 million, or $0.26 adjusted diluted earnings per share, compared to $49.6 million, or $0.39 adjusted diluted earnings per share for the previous quarter[195]. - Adjusted earnings (non-GAAP) for Q1 2025 were $33,122,000, down 33.3% from $49,634,000 in Q4 2024[316]. - Net income available to common stockholders for Q1 2025 was $32,388,000, a decrease of 33.1% from $48,319,000 in Q4 2024[316]. - Diluted earnings per share for Q1 2025 were $0.26, a decline of 31.6% compared to $0.38 in Q4 2024[316]. Loan and Deposit Activity - Total loans increased to $17.09 billion as of March 31, 2025, from $17.01 billion at December 31, 2024, with a commercial loan pipeline of $1.81 billion[197]. - Total deposits as of March 31, 2025, were $21.68 billion, a decrease from $21.89 billion as of December 31, 2024, with uninsured, non-collateralized deposits at approximately $4.54 billion, or 21% of total deposits[199]. - The loan portfolio averaged $16.92 billion in Q1 2025, with total loans at $17.09 billion, reflecting an increase of $88.1 million from December 31, 2024[251]. - Real estate loans amounted to $13.48 billion, representing 78.8% of total loans, an increase of $85.5 million or 0.6% from December 31, 2024[255]. - Total commercial loans were $2.64 billion, or 15.4% of total loans, a decrease of $58.2 million or 2.2% from December 31, 2024[256]. Asset Quality - Nonperforming loans increased to $152.4 million as of March 31, 2025, from $110.8 million at December 31, 2024, representing a nonperforming assets ratio of 0.61%[196]. - Total nonperforming assets increased to $162.3 million as of March 31, 2025, up from $121.2 million at December 31, 2024[267]. - The allowance for credit losses as a percent of total loans was 1.48% as of March 31, 2025, with nonperforming loans at 0.89% of total loans[264][267]. - The provision for credit losses for the first three months of 2025 was $26.8 million, compared to $10.2 million for the same period in 2024[275][276]. Interest Income and Expense - Net interest income for the three months ended March 31, 2025, was $169.8 million, a decrease of $1.5 million, or 0.9%, compared to the previous quarter[215]. - Interest income decreased by $14.8 million during the three-month period ended March 31, 2025, primarily due to a $4.1 million decline in loan yield and a $10.7 million decrease in interest income on investment securities[219]. - Interest expense decreased by $26.3 million, primarily due to a 43 basis point decrease in rates on interest-bearing deposit accounts, resulting in an $18.6 million reduction[220]. - The strategic sale of $251.5 million of lower-yielding available-for-sale securities contributed to the improved net interest margin[221]. Capital and Liquidity - Capital levels remained strong, with a common equity to total assets ratio of 13.18% and a Tier 1 leverage ratio of 9.83% as of March 31, 2025[199]. - The company maintains a significant liquidity position with a loan to deposit ratio of 79% as of March 31, 2025[199]. - As of March 31, 2025, the company's total risk-based capital was $3,009,342, with risk-weighted assets at $20,621,540, resulting in a total risk-based capital ratio of 14.59%[300]. - The common equity Tier 1 ratio (CET1) as of March 31, 2025, was 12.21%, above the minimum guideline of 4.50%[300]. - The company continually assesses its capital and liquidity needs, including potential capital raising through stock or debt offerings[297]. Noninterest Income and Expense - Total noninterest income for the three months ended March 31, 2025 was $46.2 million, reflecting a 6.0% increase from the previous quarter and a 6.9% increase year-over-year[233]. - Noninterest expense for the three months ended March 31, 2025 was $144.6 million, representing a 2.5% increase from the previous quarter and a 3.4% increase compared to the same period last year[237][238]. - Adjusted noninterest expense for the three months ended March 31, 2025 was $143.6 million, an increase of $4.3 million from the previous quarter[237]. - The increase in noninterest income was primarily driven by a $1.2 million increase in wealth management fees and higher fair value adjustments related to SBIC investments[233]. Stockholder Equity and Dividends - Cash dividends declared for the first three months of 2025 were $0.2125 per share, an increase of 1% from $0.21 per share in the same period of 2024[296]. - The tangible book value per common share as of March 31, 2025, was $16.81, slightly up from $16.80 as of December 31, 2024[321]. - Total common stockholders' equity was $3.531 billion as of March 31, 2025, slightly up from $3.528 billion at the end of December 2024[323].

Financial Data and Key Metrics Changes - Total period end loans increased by 2% on a linked quarter annualized basis, although average loans decreased for the quarter [10] - Total revenue rose by $1.1 million linked quarter, marking the fourth consecutive quarter of top line adjusted revenue growth [13] - First quarter net interest margin was 2.95%, up 8 basis points linked quarter and up 29 basis points year over year [14] - Total provision expense for the quarter was $26.8 million, with the allowance for credit losses (ACL) ratio increasing to 1.48% [24] Business Line Data and Key Metrics Changes - Customer deposits grew by $183 million during the quarter, approximately 4% linked quarter annualized [12] - Non-interest income grew by 6% linked quarter, driven by strong swap fee income and diversified growth from other fee-based businesses [14] - Adjusted non-interest expense increased by 4.3% million linked quarter, influenced by a customer deposit fraud event [15] Market Data and Key Metrics Changes - The commercial loan pipeline increased by 43% linked quarter, reaching its highest level since Q2 2022 [10] - The number of consumer checking accounts grew by 1.5% year over year, indicating a positive trend in the deposit franchise [12] Company Strategy and Development Direction - The company remains focused on soundness, profitability, and growth, with a commitment to addressing potential credit challenges early [16] - The outlook for 2025 includes expectations for 3% plus positive operating leverage and mid-teens year-over-year growth in pre-provision net revenue (PPNR) [26] - The company aims to reduce reliance on brokered funding while continuing to remix deposits into lower-cost transaction accounts [49] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding loan growth amid a challenging macro backdrop, noting borrowers' ability to lock in attractive economics [10] - The company believes that the situations regarding specific credit relationships are unique and that the overall loan portfolio remains healthy [24] - Management anticipates that net interest margin could cross 3% sooner than originally expected due to favorable trends in customer deposits and asset repricing [26] Other Important Information - The company recorded a $4.3 million fraud charge related to a borrower, which impacted non-interest expense for the quarter [22] - Specific reserves for two credit relationships were increased to approximately 60%, resulting in additional provision expense [24] Q&A Session Summary Question: Timeline for resolution of specific credits - Management indicated a desire to resolve the downtown St. Louis hotel credit by the end of the year, while the timeline for the fast food operator credit remains uncertain due to recent fraud-related activity [33][36] Question: Drivers of the commercial loan pipeline improvement - Management noted that the improvement is driven by borrowers locking in favorable economics and a broad-based demand across various sectors [40][41] Question: Deposit growth strategy and competitive landscape - Management acknowledged a competitive environment for deposits but expressed optimism about remixing deposits and reducing reliance on brokered funding [46][49] Question: Capital deployment and buyback considerations - Management emphasized a focus on organic growth and capital preservation, with buybacks being a tool for future opportunities if market conditions are favorable [102][105]

Simmons First National Corporation (SFNC) Q1 2025 Earnings Conference Call April 17, 2025 08:30 AM ET Company Participants Operator - Conference Call OperatorEd Billick - Director of Investor RelationsJay Brogdon - PresidentDaniel Hobbs - CFOGeorge Makris - Chairman and CEO Conference Call Participants David Feaster - Analyst, Raymond JamesWoody Lee - Analyst, KBWAhmad Hassan - Analyst, DA DavidsonMatt Olney - Analyst, Stevens Operator Good morning and welcome to the Simmons First National Corporation first ...

Core Insights - Simmons First National (SFNC) reported revenue of $209.58 million for the quarter ended March 2025, reflecting a year-over-year increase of 7.4% [1] - The company's earnings per share (EPS) was $0.26, down from $0.32 in the same quarter last year, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $205.86 million by 1.81%, while the EPS fell short of the consensus estimate of $0.36 by 27.78% [1] Financial Performance Metrics - Total non-performing assets amounted to $162.30 million, surpassing the average estimate of $125.29 million from two analysts [4] - The efficiency ratio was reported at 66.9%, slightly higher than the average estimate of 66.4% [4] - The net interest margin stood at 3%, exceeding the average estimate of 2.9% [4] - Total nonperforming loans were $152.30 million, compared to the average estimate of $114.60 million [4] - Total interest-earning assets (FTE) averaged $23.32 billion, slightly below the average estimate of $23.39 billion [4] - Net charge-offs to average loans were 0.2%, better than the average estimate of 0.3% [4] - Net interest income (FTE) was reported at $169.84 million, above the average estimate of $168.60 million [4] - Total non-interest income reached $46.16 million, exceeding the average estimate of $43.55 million [4] - Net interest income was $163.42 million, compared to the average estimate of $162.31 million [4] Stock Performance - Over the past month, shares of Simmons First National have returned -11.7%, while the Zacks S&P 500 composite experienced a -4.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Simmons First National (SFNC) came out with quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -27.78%. A quarter ago, it was expected that this bank holding company would post earnings of $0.35 per share when it actually produced earnings of $0.39, delivering a surprise of 11.43%.Over the last four q ...

Financial Performance - Total revenue for Q1 2025 was $209.6 million, an increase of 7.2% compared to $195.1 million in Q1 2024[5] - Net income for Q1 2025 was $32.4 million, down from $48.3 million in Q4 2024 and $38.9 million in Q1 2024[6] - Diluted earnings per share for Q1 2025 were $0.26, compared to $0.38 in Q4 2024 and $0.31 in Q1 2024[6] - Noninterest income for Q1 2025 was $46.2 million, up 6% from $43.6 million in Q4 2024[14] - Total interest income for Q1 2025 was $307,837,000, a decrease of 5.5% from $325,982,000 in Q4 2024[39] - Net interest income after provision for credit losses was $136,625,000, down from $151,610,000 in the previous quarter, reflecting a decrease of 9.9%[39] - Pre-Provision Net Revenue (PPNR) for Q1 2025 was $64.997 million, down from $67.383 million in Q4 2024[53] - Adjusted Pre-Provision Net Revenue for Q1 2025 was $65.991 million, compared to $69.164 million in Q4 2024[53] - Total adjusted earnings available to common stockholders for Q1 2025 were $33.122 million, compared to $49.634 million in Q4 2024[52] - Net income for 2025 was $32,388 thousand, compared to $152,693 thousand in 2024, reflecting a decrease of 78.8% year-over-year[54] - Adjusted earnings (non-GAAP) for 2025 were $33,122 thousand, a decline from $177,887 thousand in 2024, representing a 81.3% decrease[54] Asset and Liability Management - Total assets decreased to $26.79 billion as of March 31, 2025, from $27.27 billion at the end of 2024, representing a decline of approximately 1.76%[38] - Total liabilities decreased to $23.26 billion, a decrease from $23.93 billion, representing a decline of approximately 2.79%[38] - Total deposits were $21,685 million in Q1 2025, a decrease from $22,353 million in Q1 2024[5] - Total deposits decreased to $21.68 billion from $22.35 billion, a decline of approximately 3.01%[38] - The company reported a total liabilities figure of $23.26 billion, a decrease from $23.93 billion, representing a decline of approximately 2.79%[38] Credit Quality - Provision for credit losses on loans was $26.8 million, with $15.6 million attributed to two specific credit relationships[5][9] - The nonperforming loan ratio increased to 0.89% in Q1 2025, compared to 0.63% in Q1 2024[5] - Net charge-offs as a percentage of average loans were 23 basis points in Q1 2025, down from 27 basis points in Q4 2024, with total nonperforming loans at $152.3 million[22] - Nonperforming loans totaled $152,391,000, up from $110,757,000 in the previous quarter, indicating a rise in credit risk[44] - The ratio of allowance for credit losses to nonperforming loans decreased to 165% from 212% in the previous quarter, suggesting a tightening of coverage[44] - The allowance for credit losses on loans increased to $252.17 million from $227.37 million, indicating a rise of about 10.89%[38] Operational Efficiency - The efficiency ratio for Q1 2025 was 66.94%, compared to 65.66% in Q4 2024, indicating a slight decline in operational efficiency[17] - Total noninterest expense for Q1 2025 was $144.6 million, up from $141.1 million in Q4 2024 and $139.9 million in Q1 2024, with adjusted noninterest expense at $143.6 million[16] - Total noninterest expense increased to $144,580,000 in Q1 2025, up from $141,117,000 in Q4 2024, marking a rise of 3.5%[39] - Adjusted efficiency ratio (non-GAAP) improved to 64.75% in 2025 from 64.56% in 2024, indicating a marginal improvement of 0.3%[55] Capital Position - Total stockholders' equity at the end of Q1 2025 was $3.5 billion, up from $3.4 billion in Q1 2024, with a book value per share of $28.04[26] - The common equity Tier 1 ratio (CET1) was 12.21% at the end of Q1 2025, slightly down from 12.38% in Q4 2024[40] - The equity to assets ratio improved to 13.18% in Q1 2025, compared to 13.13% in Q4 2024[40] - Average common stockholders' equity increased to $3,564,469 thousand in 2025 from $3,486,822 thousand in 2024, an increase of 2.2%[54] Future Outlook - Forward-looking statements indicate expectations for future growth and strategies, including digital banking initiatives and acquisition strategies[36] - The company's management emphasizes the importance of non-GAAP financial measures for assessing ongoing operations, excluding impacts from mergers and tax effects[35]

Core Insights - The company reported a net income of $32.4 million for Q1 2025, a decrease from $48.3 million in Q4 2024 and $38.9 million in Q1 2024, with diluted earnings per share at $0.26 [4][6][26] - Total loans increased to $17.1 billion, while total deposits decreased to $21.7 billion, reflecting a decline in time and brokered deposits [17][19] - The net interest margin improved to 2.95%, marking the fourth consecutive quarterly increase, driven by lower deposit costs and reduced use of wholesale funding [9][11] Financial Performance - Total revenue for Q1 2025 was $209.6 million, up from $195.1 million in Q1 2024, with adjusted total revenue also at $209.6 million [4][12] - Noninterest income rose to $46.2 million, compared to $43.2 million in Q1 2024, primarily due to increased swap fee income and wealth management fees [12][14] - Noninterest expense increased to $144.6 million, influenced by a $4.3 million charge related to a customer deposit fraud event [15][16] Asset Quality - The provision for credit losses on loans totaled $26.8 million, significantly higher than $10.2 million in Q1 2024, largely due to two specific credit relationships migrating to nonperforming status [23][22] - The nonperforming loan ratio increased to 0.89%, up from 0.63% in Q1 2024, with total nonperforming loans at $152.3 million [22][21] - The allowance for credit losses on loans was 1.48% of total loans, compared to 1.34% in Q1 2024 [25][23] Capital Position - Total stockholders' equity was $3.5 billion, reflecting a year-over-year increase of $92.4 million, with a book value per share of $28.04 [26][27] - The common equity tier 1 (CET1) ratio stood at 12.21%, indicating a strong capital position exceeding regulatory requirements [28][29] - The company did not repurchase shares during Q1 2025, with approximately $175 million remaining under its stock repurchase program [30]

Core Viewpoint - Analysts project that Simmons First National (SFNC) will report quarterly earnings of $0.36 per share, reflecting a year-over-year increase of 12.5% and revenues of $205.86 million, up 5.5% from the same quarter last year [1] Earnings Projections - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating that analysts have not changed their initial forecasts during this period [2] - Changes in earnings projections are crucial for predicting investor reactions to the stock, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Key Metrics Estimates - Analysts estimate 'Total non-performing assets' will reach $125.29 million, up from $112.32 million a year ago [5] - The 'Efficiency Ratio' is projected at 66.4%, an improvement from 69.4% reported in the same quarter last year [5] - 'Total nonperforming loans' are expected to be $114.60 million, compared to $107.32 million a year ago [5] Interest Earning Assets - 'Total interest earning assets (FTE) - Average Balance' is expected to be $23.39 billion, down from $23.92 billion in the same quarter last year [6] - Analysts predict 'Net Interest Income - FTE' to be $168.60 million, compared to $158.33 million a year ago [6] Non-Interest Income - The consensus for 'Total Non-Interest Income' is $43.55 million, slightly up from $43.18 million in the same quarter last year [7] - 'Net Interest Income' is expected to be $162.31 million, compared to $151.91 million a year ago [7] Stock Performance - Simmons First National shares have decreased by 11.5% in the past month, while the Zacks S&P 500 composite has declined by 6.1% [8] - The company holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near term [8]

Group 1 - Simmons First National Corporation is scheduled to release its first quarter 2025 earnings on April 16, 2025, after market closing [1] - A live conference call will be held on April 17, 2025, 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 in 2024, including being named one of America's Best Regional Banks 2025 by Newsweek and one of the Best Companies to Work For in the South by U.S. News & World Report [2]