Simmons First reports first quarter income, revenue declines

Pine Bluff-based Simmons First National Corp. posted unadjusted first quarter net income of $38.871 million, down 14.7% compared with the same period in 2023. First quarter revenue was $195.09 million, below the $223.67 million in the first quarter of 2023.

Unadjusted earnings per share was 31 cents, below the consensus estimate of 33 cents.

Factors pushing quarterly income and revenue lower included a $1.6 million assessment by the Federal Deposit Insurance Corp. (FDIC) to cover bank failures in 2023, and an increase in credit loans provisions. The first quarter FDIC assessment followed a $10.5 million assessment in the fourth quarter of 2023.

“Total loans increased 4 percent on a linked quarter annualized basis and our commercial loan pipeline expanded for the third consecutive quarter. Total deposits were up 2 percent on a linked quarter annualized basis,” Simmons CEO Bob Fehlman said in the earnings report posted Wednesday (April 24) morning. “We were particularly encouraged by the growth in money market and savings accounts again this quarter after robust growth in the fourth quarter of 2023. Importantly, the growth in loans and deposits, coupled with lower wholesale funding costs, enabled us to maintain a relatively stable net interest margin despite continued low-cost deposit migration.”

The regional bank reported in the first quarter a $227.4 million allowance for credit losses, above the $225.2 million at the end of the fourth quarter of 2023, and above the $206.6 million in the first quarter of 2023.

“The increase in allowance for credit losses on loans on a linked quarter and year-over-year basis reflected in part increased activity in the loan portfolio, as well as changes in macroeconomic conditions,” the bank noted in the report.

Loans during the quarter increased $156 million, or 1%, during the quarter, which the bank said reflects its “focus on maintaining disciplined pricing strategies and prudent underwriting standards given projections surrounding near-term economic activity and conditions.”

Following are other financial items from the quarterly report.
• Total assets as of March 31 reached $27.372 billion, below the $27.583 billion at the end of the first quarter in 2023.

• Total loans as of March 31 were $17.002 billion, up from the $16.555 billion at the end of the first quarter in 2023.

• Total deposits as of March 31 were $22.353 billion, down from the $22.452 billion at the end of the first quarter in 2023.

• The return on assets as of March 31 was 0.57%, down from 0.67% at the end of the first quarter in 2023.

Founded in 1903, Simmons First National, through its primary subsidiary Simmons Bank, operates 233 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.

Bank shares (NASDAQ: SFNC) closed Tuesday at $18.81, up 32 cents. During the past 52 weeks the share price has ranged between $20.82 and $13.36.