Simmons First National Corp (SFNC) Reports Q3 2023 Earnings: Net Income of $47.2 Million
Simmons First National Corp (NASDAQ:SFNC) reported Q3 2023 net income of $47.2 million, with diluted earnings per share (EPS) of $0.37.
Adjusted earnings were $48.8 million, with adjusted EPS of $0.39.
Year-over-year, average loans were up 9% and average deposits were up 3%.
Simmons repurchased 1.1 million shares in Q3 2023.
Simmons First National Corp (NASDAQ:SFNC) released its Q3 2023 earnings report on October 24, 2023. The company reported a net income of $47.2 million and diluted earnings per share of $0.37. Adjusted earnings were $48.8 million, with adjusted earnings per share of $0.39. Despite the challenging economic and interest rate environment, the company remains committed to serving its customers' financial needs while maintaining strong asset quality, capital, and liquidity positions.
Financial Performance
The company's results reflect efforts aimed at optimizing the balance sheet and the Better Bank Initiative. On a year-over-year basis, average loans were up 9% and average deposits were up 3%. The company achieved all of the original $15 million of annual cost savings estimated under the Better Bank Initiative one quarter sooner than anticipated.
Financial Highlights
Simmons reported total revenue of $196.2 million, with pre-provision net revenue (PPNR) of $64.2 million and adjusted PPNR of $66.3 million. The company's focus on expense management led to a 5% decline in noninterest expense. The company's book value per share increased by 6%, and tangible book value per share increased by 9%.
Asset Quality and Capital Ratios
The company's asset quality remained strong, with a net charge-off ratio of 0.28% and a nonperforming loan ratio of 0.49%. The allowance for credit losses to total loans ratio ended the quarter at 1.30%. The company's capital ratios also remained strong, with an equity to assets ratio of 11.92% and a tangible common equity (TCE) ratio of 7.07%.
Share Repurchase Program
During Q3 2023, Simmons repurchased approximately 1.1 million shares of its Class A common stock at an average price of $17.69 under its 2022 stock repurchase program. The remaining authorization under the 2022 Program as of September 30, 2023, was approximately $40 million.
Simmons First National Corp (NASDAQ:SFNC) is a Mid-South based financial holding company that has paid cash dividends to its shareholders for 114 consecutive years. Its principal subsidiary, Simmons Bank, operates 232 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas.
This article first appeared on GuruFocus.
