Simmons First adjusted earnings beat the estimate

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by Talk Business & Politics staff ([email protected]) ago 3 views 

Adjusted third-quarter net income at Pine Bluff-based Simmons First National Corp. was $46 million, below the $47.247 million in the same quarter of 2023. Adjusted earnings per share of 37 cents beat the consensus estimate of 33 cents.

The bank during the quarter sold $252 million in investment securities that resulted in an after-tax loss of $21 million. Net income and revenue was adjusted to reflect the one-time charge.

Adjusted revenue in the quarter was $203.2 million, better than the $196.2 million in the same quarter of 2023, but below the consensus estimate of $204.96 million.

Simmons CEO Bob Fehlman said a highlight of the quarter was an increase in net interest income resulting from securing more loans at higher rates.

“We also were proactive in responding to favorable market conditions when opportunities presented themselves. During the quarter, we decided to sell certain lower yielding bonds in our securities portfolio to hasten the pace of our ongoing balance sheet optimization strategy,” Fehlman noted in the earnings report. “While the loss on the sale of these securities weighed on reported results, on an adjusted basis total revenue, noninterest income and pre-provision net revenue posted solid growth on a linked quarter basis. Equally important, credit trends remained steady in the quarter and our allowance for credit losses on loans ended the quarter at 1.35 percent.”

Following are other financial items from the quarterly report.
• Total assets as of Sept. 30 reached $27.269 billion, down from the $27.564 billion at the same period in 2023.
• Total deposits as of Sept. 30 were $21.935 billion, down from the $22.231 billion at the same period in 2023.
• Total loans as of Sept. 30 were $17.316 billion, up from the $16.772 billion at the same period in 2023.
• The return on assets as of Sept. 30 was 0.36%, down from 0.68% 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 Friday (Oct. 18) at $23.28, down 2 cents. During the past 52 weeks the share price has ranged between $23.68 and $13.36.