Simmons First National (US:SFNC)2025-10-17 12:30Financial Performance - The company's net income was a loss of $(5628) million, but adjusted net income was $649 million, a 16% increase compared to the last quarter[11] - Adjusted total revenue reached $2325 million, up 9% from the previous quarter[11] - Adjusted PPNR (Pre-Provision Net Revenue) increased by 20% to $928 million[11] - Net interest margin (NIM) increased by 44 bps to 350%[11] Balance Sheet and Capital - Total assets amounted to $242 billion, with total deposits of $198 billion[3] - Total loans reached $172 billion, with a loan to deposit ratio of 87%[3] - The total risk-based capital ratio stood at 1507%, and the TCE (Tangible Common Equity) ratio was 853%[3] - The company completed balance sheet repositioning, deleveraging the balance sheet by paying down higher cost deposits and wholesale borrowings[9, 12] Loan Portfolio and Credit Quality - Total loans increased by 2% on a linked quarter annualized basis, reaching $172 billion[12] - The ACL (Allowance for Credit Losses) ratio ended the quarter at 150%, up 2 bps[12] - The NCO (Net Charge-Off) ratio was 25 bps, with provision expense exceeding net charge-offs by $45 million[12] - Nonperforming loans represented 090% of total loans[11] Deposits and Funding - Total deposits decreased due to deleveraging, while the deposit mix and costs improved[12] - Noninterest-bearing deposits accounted for 221% of total deposits[57] - The cost of deposits decreased by 11 bps on a linked quarter basis[59] Interest Rate Sensitivity and Hedging - The company executed $1625 billion of interest rate swaps in 3Q25 to reduce the negative impact of falling rates by approximately 50%[76] - The company expects 4Q25 NIM to be 365% or higher[16]