Simmons First nets $80.6 million in Q3

by Roby Brock ([email protected]) 229 views 

Pine Bluff-based Simmons First National Corp. reported Tuesday (Oct. 26) net income of $80.6 million for the third quarter of 2021 compared to net income of $65.9 million for the third quarter of 2020, an increase of $14.7 million, or 22%.

Diluted earnings per share for the third quarter of 2021 were 74 cents, an increase of 14 cents, or 23%, compared to the same period in the prior year. Per share earnings were also well ahead of the consensus estimate of 57 cents.

Third quarter revenue was $193.79 million, below the $225.46 million in the same quarter of 2020, but above the consensus estimate of $191.88 million.

On a year-to-date basis, Simmons net income for the first nine months of 2021 was $222.9 million, up 10% over the $201.9 million earned for the first nine months of 2020. Diluted earnings per share for the first nine months of 2021 were $2.05, up 12% compared to the same period in the prior year.

“Simmons once again delivered solid results in the quarter reflecting our ability to execute basic blocking and tackling fundamentals,” said George Makris, Jr., Simmons chairman and CEO.

“We also announced the completion of the acquisitions of Tennessee-based Landmark Community Bank and Triumph Bancshares, Inc. shortly after the end of the quarter. To be able to obtain all the necessary approvals, close and simultaneously complete the systems conversions of two banks in approximately four months is a remarkable accomplishment and speaks to the outstanding team we have built at Simmons. We’d like to welcome our new customers, associates and shareholders to the Simmons family,” Makris added.

Like several competitors, Simmons noted that loan growth has been challenging “given the high levels of liquidity throughout the system and corresponding paydowns,” the bank said.

“During the quarter, we generated $1.5 billion in loan originations and advances, and our commercial loan pipeline rose for the fourth consecutive quarter to $1.5 billion, up 15% on a linked quarter basis. Our ability to build upon this positive momentum, coupled with our outstanding capital position and steadfast attention to maintaining a strong credit culture, give us reason to be cautiously optimistic as we enter the final quarter of the year and look forward to 2022,” Makris said.

Other financial highlights for the quarter included:

  • Total loans at the end of the third quarter of 2021 were $10.8 billion compared to $11.4 billion at the end of the second quarter of 2021 and $14.0 billion at the end of the third quarter of 2020.
  • Total deposits at the end of the third quarter of 2021 were $18.1 billion, an increase of $1.8 billion from $16.2 billion at the end of the third quarter of 2020.
  • Net interest income for the third quarter of 2021 totaled $145.2 million compared to $146.5 million in the second quarter of 2021 and $153.6 million in the third quarter of 2020.
  • Noninterest income for the third quarter of 2021 was $48.6 million compared to $47.1 million for the second quarter of 2021 and $69.5 million in the third quarter of 2020.

Simmons First National Corp. shares (NASDAQ: SFNC) opened trading on Tuesday at $31.18. The company’s stock has traded between $16.19 per share and $33.43 per share over the past 52 weeks.