Quarterly net income falls for Simmons First, revenue rises

Simmons First National Corp. posted an almost 17% decline in first quarter net income. The bank CEO said “stability in economic policy” is needed to better pursue “growth opportunities.” Earnings per share of 26 cents was well below the consensus estimate of 36 cents.

The Pine Bluff-based bank holding company on Wednesday (April 16) posted first quarter net income of $32.4 million, down 16.7% compared with $38.9 million in the same period of 2024. Revenue in the quarter was $209.6 million, better than the $195.1 million in the same quarter of 2024, and above the consensus estimate of $209.07 million.

George Makris, Jr., the bank’s chairman and CEO, said the quarter saw gains in loans and deposits. His statement in the earnings report posted after the markets closed included a note on a desire for economic stability.

“We are pleased with our first quarter’s performance, which demonstrated the continued improvement in profitability fundamentals. Increases in loans and customer deposits combined with a decrease in wholesale funding have driven a healthy increase in our net interest margin and positive trends in total revenue,” Makris noted in the report. “We are hopeful for stability in economic policy, which will provide better insight into future growth opportunities. In the meantime, we will continue to invest in our business as well as the communities we serve.”

The bank said in the report that in the quarter it moved two properties with a combined loan value of $49.8 million to a nonperforming status. One is a $26.9 million loan tied to a downtown St. Louis hotel property.

“While the property securing the relationship remains in operation and we believe is entering a stronger season of the year, the borrower experienced seasonal stress during the first quarter of 2025 combined with harsher than usual winter conditions,” the bank noted.

The second is a $22.9 million loan tied to an unidentified “fast-food operator.”

However, the company said its commercial loans in process totaled $1.8 billion at the end of the first quarter, up 43% compared with the fourth quarter of 2024. The bank also said it is set to close on commercial loans valued at $757 million, “marking the third consecutive quarterly increase” in the loans in process and loans set to close.

The first quarter net income decline continues what the bank posted in 2024. Simmons had 2024 adjusted net income of $177.887 million, down from $207.716 million in 2023. 2024 revenue was $804 million, below the $866.15 million in 2024.

Following are other financial items from the quarterly report.
• Total assets as of March 31 reached $26.973 billion, down from $27.372 billion at the same period in 2024.

• Total deposits as of March 31 were $21.685 billion, down from the $22.353 billion at the same period in 2024.

• Total loans as of March 31 were $17.094 billion, up from the $17.002 billion at the same period in 2024.

• The return on assets as of March 31 was 0.49%, down from 0.57% at the same period in 2024.

Founded in 1903, Simmons First National, through its primary subsidiary Simmons Bank, operates 222 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. The company reduced the number of branches by 12 in 2024.

Bank shares (NASDAQ: SFNC) closed Wednesday at $18.11, down 17 cents. During the past 52 weeks the share price has ranged between $25.95 and $16.03.