PINE BLUFF, Ark., July 17, 2025 /PRNewswire/ --  

George Makris, Jr., Simmons' Chairman and CEO, commented on second quarter 2025 results:

We were pleased with our second quarter results which reflected strong revenue growth, disciplined expense management and positive underlying balance sheet growth that led to further improvement in profitability measures.

Our net interest margin increased for the fifth consecutive quarter and surpassed the 3 percent mark ahead of expectations. Loan yields were up and deposit costs declined for the third consecutive quarter. While overall balance sheet growth was muted, our loan pipeline remains strong and our focus on profitability as well as loan and deposit remixing resulted in C&I growth coupled with a $233.1 million increase in low-cost customer deposits. At the same time, asset quality metrics were stable.

While certain administration policies have become clearer, tariff volatility looms large and is a key to future interest rate moves and economic conditions. Against this backdrop, we continue our focus on organic growth in our very attractive footprint and are encouraged by our positive momentum heading into the last half of 2025.

Financial Highlights

2Q25

1Q25

2Q24



2Q25 Highlights

Balance Sheet (in millions)









Comparisons reflect 2Q25 vs 1Q25

      unless otherwise noted



•  Net income of $54.8 million

   and diluted EPS of 0.43



 

•  Adjusted net income1 of $56.1

   million and adjusted diluted

   EPS1 of $0.44



 

•  Total revenue of $214.2 million

   and PPNR1 of $75.6 million



 

•  Adjusted total revenue1 of

   $214.2 million and adjusted

   PPNR1 of $77.3 million



 

•  Net interest income up $8.4

   million, or 5 percent



 

•  Net interest margin up 11 basis

   points to 3.06 percent; the 5th

   consecutive quarterly increase

   in net interest margin



 

•  Pricing discipline led to 6 basis

   point increase in loan yields



 

•  Cost of deposits down 8 bps;

   low-cost customer deposits up

   $233.1 million



 

•  Noninterest expense of $138.6

   million; adjusted noninterest

   expense1 of $136.8 million,

   down 5 percent



 

•  NCO ratio of 25 bps in 2Q24;

   provision expense exceeds net

   charge-offs

Total loans

$17,111

$17,094

$17,192



Total investment securities

5,997

6,107

6,571



Total deposits

21,825

21,685

21,841



Total assets

26,694

26,793

27,369



Total shareholders' equity

3,549

3,531

3,459



Performance Measures (in millions)









Total revenue

$214.2

$209.6

$197.2



Adjusted total revenue1

214.2

209.6

197.2



Pre-provision net revenue1 (PPNR)

75.6

65.0

57.9



Adjusted pre-provision net revenue1

77.3

66.0

59.4



Provision for credit losses on loans

11.9

26.8

11.1



Per share Data









Diluted earnings

$  0.43

$  0.26

$  0.32



Adjusted diluted earnings1

0.44

0.26

0.33



Book value

28.17

28.04

27.56



Tangible book value1

16.97

16.81

16.20



Asset Quality









Net charge-off ratio (NCO ratio)

0.25 %

0.23 %

0.19 %



Nonperforming loan ratio

0.92

0.89

0.60



Nonperforming assets to total assets

0.62

0.61

0.39



Allowance for credit losses to loans (ACL)

1.48

1.48

1.34



Nonperforming loan coverage ratio

161

165

223



Capital Ratios









Equity to assets (EA ratio)

13.30 %

13.18 %

12.64 %



Tangible common equity (TCE) ratio1

8.46

8.34

7.84



Common equity tier 1 (CET1) ratio

12.36

12.21

12.00



Total risk-based capital ratio

14.42

14.59

14.17



Other Data









Net interest margin (FTE)

3.06 %

2.95 %

2.69 %



Loan yield (FTE)

6.26

6.20

6.39



Cost of deposits

2.36

2.44

2.79



Loan to deposit ratio

78.40

78.83

78.72



Borrowed funds to total liabilities

4.46

5.59

7.38



Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $54.8 million for the second quarter of 2025, compared to $32.4 million in the first quarter of 2025 and $40.8 million in the second quarter of 2024. Diluted earnings per share were $0.43 for the second quarter of 2025, compared to $0.26 in the first quarter of 2025 and $0.32 for the second quarter of 2024. Adjusted earnings1 for the second quarter of 2025 were $56.1 million, compared to $33.1 million in the first quarter of 2025 and $41.9 million in the second quarter of 2024. Adjusted diluted earnings per share1 for the second quarter of 2025 were $0.44, compared to $0.26 in the first quarter of 2025 and $0.33 in the second quarter of 2024.

The table below summarizes the impact of certain items, consisting primarily of branch right sizing, early retirement program, FDIC special assessments and termination of vendor and software services. They are also described in further detail in the "Reconciliation of Non-GAAP Financial Measures" tables contained in this press release.

Impact of Certain Items on Earnings and Diluted Earnings Per Share (EPS)



$ in millions, except per share data



 2Q25

  1Q25

 2Q24

Net income



$ 54.8

$ 32.4

$ 40.8











Branch right sizing, net



0.2

1.0

0.5

Early retirement program



1.6

-

0.1

FDIC special assessment



-

-

0.3

Termination of vendor and software services



-

-

0.6

   Total pre-tax impact



1.8

1.0

1.5

Tax effect2



(0.5)

(0.3)

(0.4)

   Total impact on earnings



1.3

0.7

1.1

Adjusted earnings1,3



$ 56.1

$ 33.1

$ 41.9











Diluted EPS



$ 0.43

$ 0.26

$ 0.32











Branch right sizing, net



-

-

-

Early retirement program



0.01

-

-

FDIC special assessment



-

-

-

Termination of vendor and software services



-

-

0.01

   Total pre-tax impact



0.01

-

0.01

Tax effect2



-

-

-

   Total impact on earnings



0.01

-

0.01

Adjusted Diluted EPS1



$ 0.44

$ 0.26

$ 0.33

Net Interest Income

Net interest income for the second quarter of 2025 totaled $171.8 million, up $8.4 million, or 5 percent, compared to $163.4 million in the first quarter of 2025 and up $17.9 million, or 12 percent, from $153.9 million in the second quarter of 2024. Interest income totaled $315.0 million for the second quarter of 2025, compared to $307.8 million in the first quarter of 2025 and $329.1 million in the second quarter of 2024. The increase in interest income on a linked quarter basis was primarily due to an increase in earning asset yields, principally loan yields, driven by disciplined pricing of new originations as well as positive fixed-rate loan repricing. Interest expense totaled $143.2 million for the second quarter of 2025, compared to $144.4 million in the first quarter of 2025 and $175.2 million in the second quarter of 2024. The decrease in interest expense on a linked quarter basis reflected management's efforts to proactively manage deposit costs given maturing deposit repricing and remixing opportunities. Included in net interest income is accretion recognized on acquisition related loans, which totaled $1.3 million in the second quarter of 2025, $1.1 million in the first quarter of 2025 and $1.6 million in the second quarter of 2024.

The yield on loans on a fully taxable equivalent (FTE) basis for the second quarter of 2025 was 6.26 percent, up 6 basis points from the 6.20 percent for the first quarter of 2025 and down 13 basis points from 6.39 percent in the second quarter of 2024. Cost of deposits for the second quarter of 2025 was 2.36 percent, down 8 basis points from 2.44 percent in the first quarter of 2025 and down 43 basis points from 2.79 percent in the second quarter of 2024. The net interest margin on an FTE basis for the second quarter of 2025 was 3.06 percent, up 11 basis points from 2.95 percent in the first quarter of 2025, and up 37 basis points from 2.69 percent in the second quarter of 2024. This marked the fifth consecutive quarter of net interest margin expansion. The increase in net interest margin on a linked quarter basis was primarily due to fixed-rate asset repricing coupled with decreased deposit costs from lower rates on time deposits and favorable funding mix shift.

Select Yield/Rates

2Q25

1Q25

4Q24

3Q24

2Q24

Loan yield (FTE)2

6.26 %

6.20 %

6.32 %

6.44 %

6.39 %

Investment securities yield (FTE)2

3.48

3.48

3.54

3.63

3.68

Cost of interest bearing deposits

2.97

3.05

3.28

3.52

3.53

Cost of deposits

2.36

2.44

2.60

2.79

2.79

Cost of borrowed funds

4.97

5.09

5.32

5.79

5.84

Net interest spread (FTE)2

2.41

2.30

2.15

1.95

1.92

Net interest margin (FTE)2

3.06

2.95

2.87

2.74

2.69

Noninterest Income

Noninterest income for the second quarter of 2025 was $42.4 million, compared to $46.2 million in the first quarter of 2025 and $43.3 million in the second quarter of 2024. The decrease in noninterest income on a linked quarter basis reflected strong performance during the first quarter of 2025, coupled with lower swap fee income due to a large swap transaction and associated fees recorded in the first quarter of 2025, and a Small Business Investment Company (SBIC) valuation adjustment, which are included in other income in the table below.

Noninterest Income

$ in millions

2Q25

1Q25

4Q24

3Q24

2Q24

Service charges on deposit accounts

$ 12.6

$ 12.6

$ 13.0

$ 12.7

$ 12.3

Wealth management fees

9.5

9.6

9.7

9.1

9.2

Debit and credit card fees

8.6

8.4

8.3

8.1

8.2

Mortgage lending income

1.7

2.0

1.8

2.0

2.0

Other service charges and fees

1.3

1.3

1.4

1.5

1.4

Bank owned life insurance

3.9

4.1

3.8

3.8

3.9

Gain (loss) on sale of securities

-

-

-

(28.4)

-

Other income

4.8

8.0

5.6

8.3

6.4

   Total noninterest income

$ 42.4

$ 46.2

$ 43.6

$ 17.1

$ 43.3













Adjusted noninterest income1

$ 42.4

$ 46.2

$ 43.6

$ 45.5

$43.3

Noninterest Expense

Noninterest expense for the second quarter of 2025 was $138.6 million, compared to $144.6 million in the first quarter of 2025 and $139.4 million in the second quarter of 2024. Included in noninterest expense are certain items consisting of branch right sizing, early retirement program, termination of vendor and software services and an FDIC special assessment. Collectively, these items totaled $1.8 million in the second quarter of 2025, $1.0 million in the first quarter of 2025 and $1.5 million in the second quarter of 2024. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest expense1 was $136.8 million for the second quarter of 2025, $143.6 million in the first quarter of 2025 and $137.8 million in the second quarter of 2024. The decrease in adjusted noninterest expense1 on a linked quarter basis reflected lower salaries and benefit expenses primarily due to a seasonal decline in payroll taxes and equity compensation expense, and a decline in other operating expenses resulting from a $4.3 million charge related to a customer deposit fraud event in the first quarter of 2025.

Noninterest Expense

$ in millions

2Q25

1Q25

4Q24

3Q24

2Q24

Salaries and employee benefits

$  73.9

$  74.8

$  71.6

$  69.2

$  70.7

Occupancy expense, net

11.8

12.7

11.9

12.2

11.9

Furniture and equipment

5.5

5.5

5.7

5.6

5.6

Deposit insurance

4.9

5.4

5.6

5.6

5.4

Other real estate and foreclosure expense

0.2

0.2

0.3

0.1

0.1

FDIC special assessment

-

-

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