Simmons First National (US:SFNC)2025-05-08 19:02Financial 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].