Second quarter net income, revenue decline for Simmons First

Simmons First National Corp. on Wednesday (July 24) posted adjusted second quarter net income of $41.9 million, down 32% compared with the $61.4 million in the same period of 2023. Per share net income of 33 cents beat the consensus estimate of 31 cents.

Revenue in the quarter for the Pine Bluff-based regional banking operation was $197.2 million, down 5.3% compared with $208.21 million in the same period of 2023. The revenue was below the consensus estimate of $201.84 million.

“Overall, we were very pleased with our results for the quarter as key profitability metrics – net income, total revenue and pre-provision net revenue – all showed positive progression on a linked quarter basis,” Simmons First CEO Bob Fehlman said in the earnings report. “Credit quality trends in the quarter were also positive, with nonperforming loans and past due loans decreasing from first quarter levels. While we continue to operate against a backdrop of uncertainty concerning slower economic growth and the timing of lower interest rates, we are comforted by our strong capital and liquidity positions. And given the liability sensitivity of our balance sheet, we believe we are well-positioned for profitable growth in a lower interest rate environment.”

Part of the quarterly income decline is the result of $32.7 million in increased interest expense. The bank said a “competitive interest rate environment” that includes customers moving deposits to higher interest rate products was a factor in pushing the interest expense higher.

Net income in the first half of the year was $79.634 million, down from $103.903 million in the same period of 2023. Total revenue in the first half of 2024 was $392.294 million, also below the $431.88 million in the same period of 2023.

Following are other financial items from the quarterly report.
• Total assets as of June 30 reached $27.369 billion, down from the $27.959 billion at the same period in 2023.

• Total deposits as of June 30 were $21.841 billion, down from the $22.489 billion at the same period in 2023.

• Total loans as of June 30 were $17.192 billion, up from the $16.834 billion at the same period in 2023.

• The return on assets as of June 30 was 0.61%, down from 0.79% at the same period in 2023.

Founded in 1903, Simmons First National, through its primary subsidiary Simmons Bank, operates 234 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.

Bank shares (NASDAQ: SFNC) closed Tuesday at $21.50. During the past 52 weeks the share price has ranged between $21.79 and $13.36.