Simmons First National (US:SFNC)2025-04-16 21:17Financial 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]