NASDAQ$SFNC

Simmons First National Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported net income increase of $16.1 million, or 27 percent, for the second quarter of 2021.

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.

Headline financials

Total Revenue

$194M

Previous: $214M-9.1%
EPS (adj)

$0.69

Previous: $0.54+27.8%
Efficiency Ratio

56.9%

Previous: 49.1%+15.9%
Capital Expenditures

-$5.83M

Previous: -$19.8M+70.5%
Free Cash Flow

$69.1M

Previous: $39M+77.1%
Net Income

$74.9M

Previous: $58.8M+27.4%
Operating Income

$132M

Previous: $137M-4.0%
Gross Profit

$182M

Previous: $187M-2.9%
Cash & Equivalents

$2.34B

Previous: $2.55B-8.1%
Total Assets

$23.4B

Previous: $21.9B+6.9%
Stock-Based Comp

$3.74M

Previous: $3.07M+21.8%

Revenue & EPS history

Simmons · Revenue · Quarterly

$194M

Q2 2021-9.1%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Simmons · $208M total across 2 segments · Q2 2023

  • Net Interest Income
    $163M-11.8%
  • Noninterest Income
    $45M+11.9%

Forward guidance

The company did not provide specific forward guidance but expressed optimism regarding increased commercial loan pipeline and loan production volume.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Plans to close 12 branches during the third quarter of 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.8%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+2.2%

Avg return

30 days after

42%

28 / 66 earnings

Positive

+10.6%

Q2 2019

Best reaction

-9.9%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%+3.5%+0.2%
Q4 2025+8.9%+3.8%+11.4%
Q3 2025+1.6%-1.5%-0.4%
Q2 2025-0.9%+0.0%+2.3%
Q1 2025-4.0%-1.0%+10.1%
Q4 2024-1.6%-0.8%-3.6%
Q3 2024-2.3%+0.0%+5.1%
Q2 2024+1.4%-1.1%-0.9%
Q1 2024-5.1%-6.9%-6.2%
Q4 2023+6.0%+6.4%-1.5%
Q3 2023-8.1%-7.4%+5.5%
Q2 2023+0.6%+0.5%-11.0%
Q1 2023-4.6%+1.6%+1.6%
Q4 2022-5.9%-5.0%-1.8%
Q3 2022-5.8%-1.9%-3.6%
Q2 2022+0.9%+1.4%+13.2%
Q1 2022-3.0%-0.9%+5.1%
Q4 2021-2.7%-2.1%-2.1%
Q3 2021-6.5%-4.1%-2.9%
Q2 2021+1.3%+0.8%+5.5%
Q1 2021-2.6%+0.6%+4.0%
Q4 2020-1.9%-6.6%+12.1%
Q3 2020-2.4%+3.4%+16.3%
Q2 2020+7.2%+9.3%+6.8%
Q1 2020-4.3%-2.4%-10.0%
Q4 2019-2.9%-4.8%-4.3%
Q3 2019+1.2%+2.1%+3.4%
Q2 2019+10.6%+11.4%+7.0%
Q1 2019-3.6%-3.1%-4.6%
Q4 2018-4.6%-5.2%+3.4%
Q3 2018-0.9%-3.5%+5.6%
Q2 2018+0.6%-3.8%+0.5%
Q1 2018+5.4%+5.6%+9.2%
Q4 2017+0.5%-0.1%-0.3%
Q3 2017-1.4%-1.6%-8.5%
Q2 2017+1.9%+3.1%-1.2%
Q1 2017+0.4%+2.1%-2.5%
Q4 2016+3.5%+3.7%+2.8%
Q3 2016-0.5%+0.9%+21.6%
Q2 2016-1.9%-4.2%-0.6%
Q1 2016-1.0%
Q4 2015-9.9%
Q3 2015+9.3%
Q2 2015-3.7%
Q1 2015-1.2%
Q4 2014+2.9%
Q3 2014-2.0%
Q2 2014-5.1%
Q1 2014+3.6%
Q4 2013-1.5%
Q3 2013+0.4%
Q2 2013+0.1%
Q1 2013+0.3%
Q4 2012+1.0%
Q3 2012+0.9%
Q2 2012-0.7%
Q1 2012-0.9%
Q4 2009+2.8%
Q1 2011+2.8%
Q4 2011+2.8%
Q3 2011-5.4%
Q3 2010-5.4%
Q2 2010-6.6%
Q4 2010-6.6%
Q2 2011-6.6%
Q1 2010+0.1%

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