Simmons First National Corporation Reports First Quarter 2025 Results

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]