NASDAQ$SFNC

Simmons First National Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Simmons reported a net income of $58.3 million and EPS of $0.46.

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.

Headline financials

Total Revenue

$208M

Previous: $225M-7.6%
EPS (adj)

$0.48

Previous: $0.52-7.7%
Book Value per Share

$26.59

No prior period
Tangible Book Value per Share

$15.17

No prior period
Capital Expenditures

-$18.7M

Previous: -$17M-10.1%
Free Cash Flow

$39.6M

Previous: $10.5M+278.8%
Net Income

$58.3M

Previous: $27.5M+112.4%
Operating Income

$31.7M

Previous: $130M-75.7%
Gross Profit

$208M

Previous: $191M+8.7%
Cash & Equivalents

$746M

Previous: $965M-22.7%
Total Assets

$28B

Previous: $27.2B+2.7%
Stock-Based Comp

$3.16M

Previous: $4.22M-25.2%

Revenue & EPS history

Simmons · Revenue · Quarterly

$208M

Q2 2023-7.6%vs Q2 2022
Beat estimate in 3 of 14 quarters(21%)
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

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2023

Historical avgQ2 2023

-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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