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Jun 30, 2023
Simmons Q2 2023 Earnings Report
Simmons reported a net income of $58.3 million and EPS of $0.46.
Key Takeaways
Simmons First National Corporation reported a net income of $58.3 million and diluted earnings per share of $0.46 for the second quarter of 2023. Adjusted earnings were $61.1 million and adjusted diluted earnings per share were $0.48. Total loans ended the quarter at $16.8 billion, up 2 percent, and total deposits at $22.5 billion, up slightly, both on a linked quarter basis.
Net income of $58.3 million and diluted EPS of $0.46 were reported.
Adjusted earnings were $61.1 million and adjusted diluted EPS was $0.48.
Noninterest expense decreased by 2% on a linked quarter basis due to strong expense management.
Total loans increased 2% on a linked quarter basis, showing disciplined loan growth.
Simmons
Simmons
Simmons Revenue by Segment
Revenue by Segment
Net Interest Income Revenue
CapyFin.comNoninterest Income Revenue
CapyFin.com Forward Guidance
Simmons is focused on optimizing operational processes and increasing capacity to capitalize on organic growth opportunities through its Better Bank Initiative. They expect to meet or exceed the estimated $15 million in annual cost savings by the end of 2023.
Positive Outlook
- The early retirement program is expected to result in approximately $5.1 million in annual cost savings.
- Extensive progress has been completed on process improvements and streamlining or upgrading systems.
- The company is on track to meet or exceed the estimated $15 million in annual cost savings by the end of 2023.
- Simmons has strong liquidity and capital positions.
- The company is focused on maintaining prudent underwriting standards.
Challenges Ahead
- Simmons is navigating a challenging economic environment.
- The company has experienced an increase in funding costs given the rapid rise in interest rates.
- Pricing measures have been taken to defend the core customer deposit base.
- Commercial loan pipeline activity is lower due to the rapid increase in interest rates and softer economic conditions.
- The increase in nonperforming assets on a linked quarter basis was primarily due to a single, commercial relationship totaling $9.6 million.