Simmons First National (SFNC) - 2025 Q4 - Annual Results

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]