Net income in 2020 was $254.9 million for Simmons First National Corp., better than the $237.8 million in 2019, the Pine Bluff-based regional banking company reported Tuesday (Jan. 26). Revenue for the year was $1.008 billion, ahead of the $988.145 million in 2019.
Fourth quarter net income was $53 million, just ahead of the $52.7 million in the 2019 quarter. The per share earnings of 49 cents beat the consensus estimate of 39 cents. Fourth quarter revenue was $199.02 million, below the $212.7 million in the 2019 quarter, but just ahead of the consensus estimate of $198.51 million.
The 2020 results include $9.4 million in costs related to an early retirement program and branch closures and sales of closed branches in Colorado and Texas.
“As we look back on a very challenging year, we are very proud of the teamwork and results we achieved,” George Makris, Jr., chairman and CEO of Simmons First National Corp., said in the earnings report. “We mobilized over 1,500 associates to work from home at times during the year while maintaining our ability to serve our customers. We provided over 8,000 PPP loans totaling almost $1 billion to businesses that faced extraordinary uncertainty and helped support over 100,000 jobs. We integrated Landmark Bank into Simmons Bank, not without some obstacles due to COVID-19 restrictions, but our associates persevered to get the job done.”
Simmons in 2019 acquired Reliance Bank in St. Louis and Landmark Bank in Columbia, Mo., which added $4.9 billion in assets to Simmons First operations. Simmons paid $435 million in an all stock deal to acquire Landmark, and paid $214 million in a cash and stock deal to acquire Reliance Bank.
The company also reported that total loans at the end of 2020 was $12.9 billion, down fro $14.425 billion at the end of 2019. Part of the reason for the decline is a loan reduction of $375 million related to the sale of branches in Colorado and Texas.
“The pipeline is starting to rebuild and ended 2020 at $674 million, including $177 million in loans approved and ready to close. On a positive note, our concentration levels in commercial real estate are now well below regulatory guidelines and we have substantial capacity to make additional loans, help borrowers in our markets and help the economy recover,” Makris noted in the report.
Following are other financial metrics in the report.
• Total deposits as of Dec. 31, 2020 were $16.987 billion, above the $16.108 billion at the end of 2019.
• Total assets as of Dec. 31, 2020 were $22.539 billion, above the $21.259 billion at the end of 2019.
• Total real estate loans as of Dec. 31, 2020 were $9.223 billion, below the $10.884 billion at the end of 2019.
• Return on assets – a closely watched metric in the banking industry – was 1.18% at the end of 2020, down from 1.33% at the end of 2019.
Simmons First National Corp. is a financial holding company with operations in Arkansas, Illinois, Kansas, Missouri, Oklahoma, Tennessee and Texas. Simmons shares (NASDAQ: SFNC) opened Tuesday at $26.75. During the past 52 weeks the share price has ranged between $27.19 and $13.75.