Simmons First Q3 net income flat from year ago

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by Roby Brock ([email protected]) October 25, 2022 7:50 am 938 views 

Editor’s note: This story has been corrected for an error in comparison of third quarter financial information to year-ago figures.

Simmons First National Corp. reported higher revenue and flat net income, but bank leaders warned of looming economic uncertainty in its third quarter earnings release Tuesday (Oct. 25).

The Pine Bluff financial institution, which is the parent of Simmons Bank, reported $80.6 million in third quarter profits, equal to $80.6 million one year ago. Quarterly earnings per share was 63 cents compared to 74 cents a year ago.

Simmons First reported third quarter revenue of $236.6 million versus $193.8 million a year ago. The company said revenue increases were fueled by a 5% increase in net interest income and a 7% increase in noninterest income.

Analysts expected Simmons to report revenue of $241.7 million and earnings per share of 62 cents.

Other financial highlights for the quarter included:

  • Net interest income for the third quarter of 2022 totaled $193.6 million, up 5% compared to the second quarter of 2022, and up 33% compared to the third quarter of 2021.
  • Noninterest income for the third quarter of 2022 was $43.0 million, compared to $40.2 million in the second quarter of 2022 and $48.6 million in the third quarter of 2021.
  • Total loans at the end of the third quarter of 2022 were $15.6 billion, up $497 million, or 3%, compared to $15.1 billion at the end of the second quarter of 2022.
  • Total deposits at the end of the third quarter of 2022 were $22.1 billion, compared to $22.0 billion at the end of the second quarter of 2022 and $18.1 billion at the end of the third quarter of 2021.

“Our financial performance in the quarter demonstrates the diversity of our franchise and our ability to navigate the current economic environment,” said George A. Makris, Jr., Simmons’ Chairman and CEO.

“As we enter the final quarter of the year with positive momentum, we also recognize the backdrop of economic uncertainty that persists. Inflation levels remain elevated and market expectations are that interest rates will continue to rise, which will most likely have an impact on future economic growth and activity. As such, we are intently focused on targeted balance sheet growth that optimizes capital, prudently managing spreads, and maintaining disciplined loan and deposit pricing strategies. We believe our conservative credit culture and emphasis on effective risk management has served, and will continue to serve, us well during periods of economic unrest,” Makris added.

Simmons First National Corp. stock closed trading on Monday (Oct. 24) at $24.20 per share. The company’s shares have traded between a low of $19.87 and a high of $32.76 over the past 52 weeks.