Core Insights - Simmons First National Corporation reported a net loss of $562.8 million for Q3 2025, a significant decline compared to net income of $54.8 million in Q2 2025 and $24.7 million in Q3 2024 [3][7][19] - The company successfully raised $327 million in equity capital to reposition its balance sheet, which is expected to unlock future earnings potential despite a one-time loss on bond sales [1][4][19] - Adjusted earnings for Q3 2025 were $64.9 million, reflecting an increase from $56.1 million in Q2 2025 and $46.0 million in Q3 2024 [3][8] Financial Performance - Total revenue for Q3 2025 was $(569.5) million, while adjusted total revenue was $232.5 million [7][8] - Net interest income increased by $14.8 million, or 9%, to $186.7 million compared to Q2 2025 [8][9] - The net interest margin improved by 44 basis points to 3.50%, marking the sixth consecutive quarterly increase [7][9] Balance Sheet and Capital Structure - Total loans at the end of Q3 2025 were $17.2 billion, up 2% on a linked quarter annualized basis [13][14] - Total deposits decreased to $19.8 billion from $21.8 billion in Q2 2025, reflecting a reduction in higher-rate, non-relationship wholesale deposits [14][19] - Total stockholders' equity was $3.4 billion, with a book value per share of $23.18, down from $28.17 in Q2 2025 [19][20] Asset Quality - Nonperforming loans totaled $153.9 million, a decrease from $157.2 million in Q2 2025 [14][15] - The allowance for credit losses on loans was $258.0 million, representing 1.50% of total loans [15][17] - The net charge-off ratio remained stable at 0.25% for Q3 2025 [15][17] Future Outlook - The company expressed optimism about its ability to deliver stronger organic growth in dynamic markets [2][19] - Management indicated that the benefits of the balance sheet repositioning will be more fully realized in future quarters [1][4]
Simmons First National Corporation Reports Third Quarter 2025 Results