Simmons First National to Report Q3 Earnings: What's in Store for the Stock?

Core Viewpoint - Simmons First National Corporation (SFNC) is expected to report an increase in third-quarter 2025 earnings and revenues compared to the same quarter last year, driven by higher net interest income and improved lending activity, despite lower non-interest income impacting overall results [1][9]. Earnings Performance - SFNC has a solid earnings surprise history, outperforming the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 1.44% [2]. Factors Influencing Q3 Earnings - The Federal Reserve's recent interest rate cut of 25 basis points to 4.00-4.25% is likely to have stabilized funding and deposit costs, supporting growth in net interest income (NII) for SFNC [3]. - The Zacks Consensus Estimate for NII is projected at $184.9 million, reflecting a 7.7% increase from the previous quarter [4]. Non-Interest Revenues - Mortgage rates have declined significantly during the third quarter, leading to decent refinancing activity and origination volumes, which is expected to boost SFNC's mortgage income [5]. - The consensus estimate for mortgage lending income is $1.8 million, indicating a 3.6% increase from the prior quarter [6]. - Wealth management fees are estimated at $38.2 million, a rise of 16.5% from the previous quarter, while debit and credit card fees are projected at $34.3 billion, reflecting a 4.3% increase [6]. - Total non-interest income is estimated at $176.8 billion, showing a marginal increase from the prior quarter [7]. Asset Quality - SFNC is expected to maintain a modest reserve for potential delinquent loans, particularly in light of anticipated interest rate cuts and the impact of tariffs on inflation [8]. - The Zacks Consensus Estimate for non-performing assets is $160.3 million, indicating a 3.9% decrease from the previous quarter [9]. Earnings Estimates - The consensus estimate for third-quarter earnings is 48 cents per share, representing a 29.7% increase from the year-ago figure, while revenues are expected to reach $228.9 million, a 30.9% rise from the same period last year [11].