Financial Data and Key Metrics Changes - The company reported net income of $11.3 million, or 67 cents per diluted share, for the first quarter of 2025 [10] - Tangible book value increased to $23.61 per share, representing over 9% annualized growth quarter over quarter [10] - Total revenue reached $46.8 million, with net interest income expanding as anticipated [12] Business Line Data and Key Metrics Changes - Loan growth was at a 9% annualized pace for Q1, meeting expectations, while deposit growth was at 10% quarter over quarter annualized [11] - Noninterest income for the quarter totaled $8.6 million, exceeding guidance, driven by strong insurance and mortgage banking revenues [20] - Operating expenses remained stable at just over $32 million, consistent with the previous quarter [20] Market Data and Key Metrics Changes - The average portfolio yield, including fees, was 5.97%, slightly down from the previous quarter [15] - The loan to deposit ratio held steady at 83%, providing flexibility for future growth [15][17] - The company anticipates a net interest margin of around 3.25% for Q2 2025, with expectations of margin expansion of 2 to 3 basis points quarterly throughout the year [19] Company Strategy and Development Direction - The company is focused on leveraging its growth phase, aiming for continued EPS growth and achieving near-term revenue targets [24] - There is an emphasis on recruiting talented team members to enhance revenue-generating capabilities, particularly in private banking and treasury management [26] - The company remains committed to organic growth while being open to potential M&A opportunities if they align with strategic goals [125][126] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth prospects despite market volatility, citing strong client relationships and business performance [34][35] - The company is closely monitoring the impact of tariffs on clients but has received positive feedback regarding order volumes and pricing stability [37][38] - Management believes that credit quality remains strong, with nonperforming assets at 0.19% of total assets [20] Other Important Information - The effective corporate tax rate for the quarter was approximately 17%, with expectations of stabilization between 18% to 19% going forward [21] - The company's consolidated TCE ratio increased to 7.6%, and total risk-based capital ratio remained well above regulatory standards at 11.2% [21] Q&A Session Summary Question: Customer sentiment and loan growth outlook - Management noted strong market conditions and positive client feedback, indicating confidence in maintaining loan growth [34][35] Question: Balance sheet leverage and loan to deposit ratio - The company has room to increase its loan to deposit ratio while ensuring prudent growth and maintaining appropriate credit structures [42][43] Question: Share repurchase plans - The company has approximately $1.5 million left for share repurchases and will consider buying back shares as valuations improve [49][50] Question: Margin expectations with potential Fed rate cuts - Management indicated that they are well-positioned to benefit from Fed rate cuts, with potential upside to margin expansion if cuts occur earlier than expected [58][60] Question: Fee income outlook and performance of investment services - The company expects fee income in the low to mid $8 million range for Q2, with strong performance in insurance and mortgage banking contributing to growth [96][100] Question: Equipment financing and leasing business line - Management expressed satisfaction with the growth of the equipment financing segment, indicating plans for continued expansion in this area [131][132]

Financial Data and Key Metrics Changes - The company reported a loan growth of $308 million or 5.1% and a deposit growth of $465 million or 7.8% in Q1 2025 [7][18] - The net interest margin (NIM) expanded by two basis points to 3.68% from 3.66% in the prior quarter, marking the sixth consecutive quarter of margin expansion [7] - Earnings per share (EPS) was reported at $1.45, a decrease of $0.43 compared to the prior period [21] - Tangible book value per share increased by more than 2.3% to $65.80, marking the ninth consecutive quarter of book value accretion [9] Business Line Data and Key Metrics Changes - Total loan originations and draws were approximately $490 million at a weighted average coupon (WAC) of about 7.84% [16] - The cost of interest-bearing deposits declined by 32 basis points, while the total deposit cost decreased by six basis points [19] - Non-interest income decreased by $763,000 primarily due to the absence of GPG fee income [26] Market Data and Key Metrics Changes - The company experienced a net outflow of $35 million in GPG deposits, primarily related to the return of reserve balances and check clearing [20] - The EB-5 related deposits increased by $100 million this quarter, totaling approximately $400 million [65] Company Strategy and Development Direction - The company is focused on capturing additional market share through traditional channels while exploring strategic opportunities to enhance shareholder value [14] - The ongoing investment in a new technology stack is expected to be fully integrated by the end of 2025, supporting the bank's growth [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties, citing strong liquidity, capital, and earnings [6] - The company anticipates loan growth of 10% to 12% for the year, with a full-year NIM expected to be between 3.70% and 3.75% [28] Other Important Information - The effective tax rate for the quarter was approximately 30% [28] - The company has not identified any broad-based negative trends affecting its loan portfolio [11] Q&A Session Summary Question: Clarification on total operating expenses for Q2 - The CFO indicated that total operating expenses for Q2 will be closer to $45 million, including adjustments for IT spending [35] Question: Remaining GPT-related expense or income items - The CFO confirmed that there will be no remaining fee-related income or expenses from the GPT business [37] Question: Implications of the gold card program on the EB-5 business - Management believes the gold card program could serve as a complementary product to the EB-5 program without disrupting core business [40][41] Question: Seasonal patterns in deposit growth - Management stated there are no seasonal patterns affecting deposit growth [42][44] Question: Discussion on potential dividends - Management confirmed that discussions regarding the possibility of paying a small dividend have been ongoing [46] Question: Trends in non-owner occupied CRE customer occupancy - Management reported that the non-owner occupied CRE portfolio remains stable and diversified [50] Question: Incremental competitive pressures on loan or deposit sides - Management indicated that there is no significant competition in New York City [55]

Simmons First National Corporation (SFNC) Q1 2025 Earnings Conference Call April 17, 2025 08:30 AM ET Company Participants Operator - Conference Call OperatorEd Billick - Director of Investor RelationsJay Brogdon - PresidentDaniel Hobbs - CFOGeorge Makris - Chairman and CEO Conference Call Participants David Feaster - Analyst, Raymond JamesWoody Lee - Analyst, KBWAhmad Hassan - Analyst, DA DavidsonMatt Olney - Analyst, Stevens Operator Good morning and welcome to the Simmons First National Corporation first ...

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