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Mar 31, 2021
Simmons Q1 2021 Earnings Report
Simmons reported net income of $67.4 million, impacted by differences in gains on sale of securities.
Key Takeaways
Simmons First National Corporation announced a net income of $67.4 million for Q1 2021, a decrease compared to the same period in 2020. The decrease was primarily due to differences in the gains on the sale of securities. Loan demand was below historical levels, but the pipeline rebuilt during the quarter. Asset quality improved compared to 2020.
Net income for Q1 2021 was $67.4 million, down from $77.2 million in Q1 2020.
Diluted earnings per share were $0.62, a decrease of $0.06 compared to the prior year.
Total loans were $12.2 billion, a decrease of $705.0 million on a linked-quarter basis.
Total deposits were $18.2 billion, representing a $1.2 billion increase since last quarter.
Simmons
Simmons
Forward Guidance
Simmons is feeling the effects of COVID-19. Some industries are still struggling to return to pre-COVID levels of performance and the government's economic stimulus packages have created a rapid rise in liquidity. Loan demand has been well below historical levels, but they are encouraged by the rebuilding of the pipeline during the first quarter. Asset quality has improved as compared to 2020 and they are optimistic that trend will continue.
Positive Outlook
- Rebuilding of the loan pipeline during the first quarter.
- Asset quality has improved as compared to 2020.
- Optimistic that the asset quality trend will continue.
- Lending capacity that has not been seen in several years.
- Poised to do their part as the economy continues to return to normal.
Challenges Ahead
- Still feeling the effects of COVID in the economy.
- Some industries are still struggling to return to pre-COVID levels of performance.
- Government's economic stimulus packages have created a rapid rise in liquidity.
- Loan demand has been well below historical levels.
- Unspecified economic uncertainty stemming from the COVID-19 pandemic.