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Mar 31, 2023

Simmons Q1 2023 Earnings Report

Reported a decrease in net income due to rising interest rates and market volatility, but maintained stable deposit levels and strong credit quality metrics.

Key Takeaways

Simmons First National Corporation reported a net income of $45.6 million for Q1 2023, a decrease compared to $83.3 million in Q4 2022 and $65.1 million in Q1 2022. The results reflect challenges from rising interest rates and market volatility, though deposit levels remained stable and credit quality metrics stayed strong. The company is focused on its Better Bank Initiative to optimize operations and improve customer experience.

Deposit levels remained stable, highlighting the granularity of the deposit base and long-term customer relationships.

Liquidity position is solid, with additional liquidity sources available representing 2.0 times the level of uninsured deposits.

Credit quality metrics remained strong, with an NPL coverage ratio at 324% and an allowance to loan ratio at 1.25%.

The Better Bank Initiative is expected to yield $15 million in annual noninterest expense cost savings by the end of 2023.

Total Revenue
$224M
Previous year: $188M
+19.1%
EPS
$0.37
Previous year: $0.59
-37.3%
Cash and Equivalents
$524M
Previous year: $1.69B
-68.9%
Free Cash Flow
$88.3M
Previous year: $53.4M
+65.4%
Total Assets
$27.6B
Previous year: $24.5B
+12.7%

Simmons

Simmons

Forward Guidance

Simmons did not provide specific forward guidance in this earnings report.