Simmons First Posts Higher Profits, Notes Loan Improvements

Simmons First National Corp. posted second quarter 2013 net income of $6.58 million, a slight increase from the $6.54 million it reported one year ago.

The Pine Bluff-based financial institution pointed to several improvements in its metrics.

“Considering interest rates continue at historical lows, we were pleased with our 5.3% quarterly EPS increase. More so, we were pleased with the positive trends in our balance sheet, as reflected in our normalized organic loan growth of approximately 3%, which enabled us to produce a net interest margin of 3.96%. The organic loan growth, coupled with strong asset quality, bodes well for the balance of the year,” said George Makris, CEO-Elect.

Makris also noted that loan growth was improving, but he stopped short of declaring a full-blown rebound in lending activity.

“This was the third consecutive quarter of organic loan growth. While still not enough to call a trend, we believe it is very positive in that the growth is coming throughout our markets in Arkansas, Kansas and Missouri. Needless to say, the economy remains in a slow recovery, which makes this growth even more significant,” Makris said.

Key operational highlights from the quarter include:

• Total loans were $1.9 billion at June 30, 2013, an increase of $149.7 million, or 8.8%, compared to the same period in 2012.
• Loans acquired in FDIC-assisted acquisitions grew $113.0 million, net of discounts, and legacy loans (excluding acquired loans) grew $35.7 million.
• Deposits
• At June 30, 2013, total deposits were $2.8 billion, an increase of $183.8 million, or 7.0%, compared to the same period in 2012.
• Net interest income for the second quarter of 2013 was $29.6 million, an increase of $2.3 million, or 8.6%, from the same period of 2012.
• Non-interest income for the second quarter was $11.3 million, an increase of $180,000, or 1.6%, compared to the second quarter of 2012.

Simmons First (NASDAQ: SFNC) shares closed trading on Wednesday at $27.95. During the past year, the company’s stock has ranged between a low of $22.36 and a trading high of $28.00 per share.