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Mar 31, 2025
Simmons Q1 2025 Earnings Report
Simmons reported Q1 2025 results with stable revenue and net income despite higher loan loss provisions.
Key Takeaways
Simmons First National Corporation posted modest earnings for Q1 2025, with steady net interest income and growth in noninterest income. Despite pressure from two large nonperforming loans and a related fraud event, the company managed to expand its net interest margin for the fourth consecutive quarter.
Net interest income held steady at $163.4 million.
Noninterest income rose to $46.2 million due to stronger fee generation.
Net income fell to $32.4 million amid a $15.6 million provision for two credit relationships.
Net interest margin improved to 2.95%, marking its fourth straight quarterly increase.
Revenue by Segment
Forward Guidance
Simmons emphasized cautious optimism, citing stronger lending pipelines but economic headwinds.
Positive Outlook
- Net interest margin has expanded for four consecutive quarters.
- Cost of deposits declined, improving funding efficiency.
- Customer deposits increased by $183 million.
- Commercial loan pipeline grew 43% QoQ.
- Tangible common equity ratio improved to 8.34%.
Challenges Ahead
- Provision for credit losses jumped to $26.8 million due to two troubled loans.
- Net income declined 33% sequentially.
- Nonperforming loans rose significantly to $152.3 million.
- A $4.3 million fraud-related charge impacted noninterest expense.
- Loan yield fell to 6.20% from 6.32% QoQ.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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