Simmons Quarterly Earnings Rise 102% On Strong Loan Portfolio Growth
by July 23, 2015 7:39 am 105 views
Simmons First National Corp. profits rose more than 100% in the second quarter as the Pine Bluff-based regional banking group cut expenses and doubled its loan portfolio through several recent acquisitions.
For the period ended June 30, the Arkansas regional bank posted net income of $20 million, or 71 cents per share, up 102% when compared to net income of $9.9 million, or 61 cents per share, a year ago. Overall, Simmons reported that core earnings, which exclude net after-tax expenses, rose by 145% to $22.4 million for the second quarter of 2015, an increase of $13.3 million from the same period a year ago.
“We continue to make good progress with our efficiency initiatives, both in revenue enhancement and in expense control,” said Simmons Chairman and CEO George A. Makris, Jr.
Here are other highlights of Simmons’ quarterly earnings report:
· Total loans, including those acquired, were $4.8 billion at June 30, 2015, an increase of $2.4 billion, or 101%, compared with the same period in 2014. Legacy loans (all loans excluding acquired loans) grew $742 million, or 40%. Acquired loans increased by $1.7 billion, net of discounts.
· Total deposits were $6.2 billion, an increase of $2.5 billion, or 69.4%, compared with the same period in 2014. Total non-time deposits were $4.7 billion, or 77 percent of total deposits.
· The company’s net interest income for the second quarter of 2015 was $73.2 million, an increase of $32.8 million, or 81%, from the same period of 2014. This increase was driven by growth in the legacy loan portfolio and earning assets acquired through the Delta Trust, Community First and Liberty transactions.
· Non-interest income for the second quarter was $25.3 million, an increase of $9.9 million compared with the second quarter of 2014. Losses on FDIC-covered assets decreased $3.2 million primarily due to lower indemnification asset amortization.
· At June 30, 2015, common stockholders’ equity was $1.0 billion, book value per share was $32.23 and tangible book value per share was $20.15.
Simmons stock price started the day at $47.99 ahead of Thursday’s opening bell. Shares of the Arkansas regional bank have traded between $35.72 and $48.40 over the past year.