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Jun 30, 2021
Simmons Q2 2021 Earnings Report
Reported net income increase of $16.1 million, or 27 percent, for the second quarter of 2021.
Key Takeaways
Simmons First National Corporation reported a strong second quarter in 2021, with net income increasing by 27 percent compared to the same period last year. The company saw improvements in asset quality metrics and an increase in commercial loan demand, supported by solid performance across multiple areas.
Net income for the second quarter of 2021 was $74.9 million, a 27% increase compared to $58.8 million in Q2 2020.
Diluted earnings per share for Q2 2021 were $0.69, up by $0.15 or 28% from the prior year.
Total deposits increased to $18.3 billion, a 10% increase from $16.6 billion in Q2 2020.
The board of directors extended and increased the share repurchase program authorization to approximately $150 million.
Forward Guidance
The company did not provide specific forward guidance but expressed optimism regarding increased commercial loan pipeline and loan production volume.
Positive Outlook
- Commercial loan pipeline has increased for three consecutive quarters.
- Optimism that the trend in commercial loan demand is a positive sign going forward.
- Total loan production for the first half of 2021 totaled $1.8 billion.
- Company is on pace to significantly exceed loan production volume reported for the full-year of 2020.
- Asset quality metrics continued to improve.
Challenges Ahead
- Loan growth continues to be hampered by government stimulus.
- Sluggish loan demand.
- Historically high levels of paydowns.
- Net interest income decreased from the year ago quarter due to lower average loan balance and decrease in loan yields.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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