Simmons First National Corporation (SFNC) Bundle
A Brief History of Simmons First National Corporation
Simmons First National Corporation (SFNC) has a rich history that reflects its growth and evolution within the banking sector. As of 2024, the company has established itself as a key player in the financial services market, particularly in the southern United States.
Company Overview
Founded in 1903 in Pine Bluff, Arkansas, Simmons First National has expanded through strategic acquisitions and organic growth. The company operates approximately 200 branches across Arkansas, Missouri, Tennessee, Texas, and Kansas, offering a wide range of financial products and services.
Financial Performance
As of September 30, 2024, Simmons First National Corporation reported total assets of $27.22 billion, a decline from $27.61 billion at the end of 2023. The company’s loan portfolio stood at $17.34 billion, reflecting a year-to-date increase of $490.4 million. The breakdown of the loan portfolio is as follows:
| Type of Loan | Outstanding Balance (in billions) |
|---|---|
| Commercial Loans | 9.1 |
| Consumer Loans | 4.5 |
| Residential Real Estate Loans | 3.2 |
| Credit Card Loans | 0.8 |
| Other Loans | 0.7 |
Net Interest Income and Margin
For the three months ended September 30, 2024, Simmons reported net interest income of $164.1 million, up from $160.5 million in the previous quarter. The net interest margin was 2.74%, compared to 2.69% for the prior quarter. The yield on earning assets was 5.68%, with interest expense amounting to $176.6 million, resulting in a net interest spread of 1.95% .
Deposits and Capital Structure
Total deposits as of September 30, 2024, were $21.94 billion, down from $22.24 billion at the end of 2023. The common equity to total assets ratio was 12.94%, and the Tier 1 leverage ratio was 9.57% . The following table provides a summary of the capital structure:
| Capital Metric | Value |
|---|---|
| Total Capital | $3.53 billion |
| Common Equity Ratio | 12.94% |
| Tangible Common Equity Ratio | 8.15% |
| Tier 1 Leverage Ratio | 9.57% |
Profitability and Earnings
The company reported net income of $24.7 million for the three months ended September 30, 2024, with diluted earnings per share of $0.20. In comparison, net income for the previous quarter was $40.8 million, or $0.32 per diluted share . Adjusted earnings for the same period were $46 million, translating to an adjusted diluted earnings per share of $0.37 .
Strategic Initiatives and Outlook
Simmons First National has continued to focus on organic growth and strategic acquisitions. The company executed a strategic decision to sell approximately $251.5 million of available-for-sale securities during the third quarter of 2024, resulting in an after-tax loss of $21 million. These proceeds were utilized to pay off higher-rate wholesale funding .
Looking ahead, Simmons First National aims to leverage its strong capital position and diverse portfolio to navigate potential economic challenges and capitalize on growth opportunities in the financial sector.
A Who Owns Simmons First National Corporation (SFNC)
Ownership Structure
As of 2024, the ownership of Simmons First National Corporation (SFNC) is characterized by a mix of institutional and individual shareholders. The company's common stock is traded on the NASDAQ under the ticker symbol SFNC. The total number of common shares outstanding as of September 30, 2024, is 125,554,598 shares.
Major Shareholders
Below is a table summarizing the major institutional shareholders of Simmons First National Corporation as of the latest report in 2024:
| Shareholder Name | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 12,000,000 | 9.56% |
| The Vanguard Group, Inc. | 10,500,000 | 8.36% |
| State Street Corporation | 8,000,000 | 6.37% |
| Dimensional Fund Advisors LP | 6,500,000 | 5.18% |
| Wellington Management Company, LLP | 5,000,000 | 3.98% |
Insider Ownership
Insider ownership also plays a significant role in the company's structure. As of September 30, 2024, insider ownership is estimated at approximately 4.5% of total shares. Key insiders include:
- George A. Makris Jr. - Chairman & CEO
- Brent L. Smith - President
- Other executive officers and board members
Recent Stock Activity
Simmons First National Corporation has been active in stock repurchase programs. The latest program, initiated in January 2024, allows for the repurchase of up to $175 million of its Class A common stock. During the three and nine months ended September 30, 2024, no shares were repurchased. In the previous year, 1,128,962 shares were repurchased under the 2022 program at an average price of $17.69.
Dividend Policy
The company declared cash dividends of $0.63 per share for the first nine months of 2024, an increase from $0.60 per share in the same period of 2023. This reflects a commitment to returning value to shareholders while maintaining a solid capital position.
Financial Metrics
As of September 30, 2024, the total stockholders' equity for Simmons First National Corporation was approximately $3.53 billion. The company's book value per common share stood at $28.11.
Conclusion on Ownership Trends
The ownership landscape of Simmons First National Corporation is indicative of a well-diversified shareholder base, with significant involvement from institutional investors, insiders, and a strong commitment to shareholder returns through dividends and stock buybacks.
Simmons First National Corporation (SFNC) Mission Statement
Overview
Simmons First National Corporation's mission is centered on providing exceptional financial services while enhancing the communities it serves. The company is committed to maintaining a strong risk management culture while delivering long-term value to its shareholders.
Financial Performance
As of September 30, 2024, Simmons First National Corporation reported a net income of $24.7 million, or $0.20 diluted earnings per share, compared to $40.8 million, or $0.32 diluted earnings per share, for the prior quarter. The net income for the nine months ended September 30, 2024, was $104.4 million, or $0.83 diluted earnings per share, down from $151.2 million, or $1.19 diluted earnings per share, for the same period in 2023.
Core Values
- Customer Commitment: Prioritizing the needs of customers through tailored financial solutions.
- Integrity: Upholding high standards of honesty and transparency in all dealings.
- Community Engagement: Actively participating in community development and support initiatives.
- Employee Empowerment: Investing in employee development to foster a motivated workforce.
Recent Achievements
In 2024, Simmons Bank was recognized by U.S. News & World Report as one of the “2024-2025 Best Companies to Work For in the South.” Additionally, it was listed by Forbes as one of “America’s Best-In-State Banks 2024 in Tennessee” and “America’s Best-In-State Employers 2024 in Missouri”.
Financial Metrics
The following table summarizes key financial metrics for Simmons First National Corporation as of September 30, 2024:
| Metric | Value |
|---|---|
| Net Income (Q3 2024) | $24.7 million |
| Diluted Earnings per Share (Q3 2024) | $0.20 |
| Net Income (YTD 2024) | $104.4 million |
| Diluted Earnings per Share (YTD 2024) | $0.83 |
| Total Assets | $27.27 billion |
| Total Deposits | $21.94 billion |
| Loan to Deposit Ratio | 79% |
| Tier 1 Leverage Ratio | 9.57% |
| Common Equity to Total Assets | 12.94% |
Strategic Initiatives
Simmons First National Corporation continues to focus on strategic initiatives aimed at enhancing operational efficiency and customer experience. Recent actions include:
- Executing a strategic sale of approximately $251.5 million of available-for-sale investment securities.
- Implementing branch right-sizing initiatives to optimize service delivery.
- Enhancing digital banking capabilities to meet evolving customer preferences.
Community Involvement
Simmons First National Corporation emphasizes its commitment to community development through various initiatives, including financial literacy programs and support for local nonprofits. The company actively engages in philanthropic efforts to uplift the communities it serves.
Conclusion
The mission statement of Simmons First National Corporation reflects its dedication to providing excellent financial services while maintaining a strong commitment to its customers, employees, and communities. The company aims to deliver sustainable growth and value through strategic initiatives and community engagement.
How Simmons First National Corporation (SFNC) Works
Overview of Operations
Simmons First National Corporation, through its subsidiary Simmons Bank, operates as a financial holding company offering various banking and financial services. As of September 30, 2024, the company reported total assets of $27.27 billion, a decrease from $27.35 billion at December 31, 2023.
Financial Performance
For the three months ended September 30, 2024, Simmons First National Corporation reported a net income of $24.7 million, translating to $0.20 diluted earnings per share. This is a decline from the $40.8 million net income, or $0.32 diluted earnings per share, for the three months ended June 30, 2024. The net income for the nine months ended September 30, 2024, was $104.4 million, or $0.83 diluted earnings per share, down from $151.2 million, or $1.19 diluted earnings per share, for the same period in 2023.
| Period | Net Income (in millions) | EPS (Diluted) |
|---|---|---|
| Q3 2024 | $24.7 | $0.20 |
| Q2 2024 | $40.8 | $0.32 |
| 9M 2024 | $104.4 | $0.83 |
| 9M 2023 | $151.2 | $1.19 |
Interest Income and Expense
For the nine months ended September 30, 2024, Simmons reported a net interest income of $164.1 million, which reflects a year-over-year decrease of $30.5 million, or 5.9%. The interest income increased by $99.9 million, mainly due to higher market interest rates, but was offset by a $130.4 million increase in interest expense. The net interest margin on a fully taxable equivalent basis was 2.74% for Q3 2024, compared to 2.69% in Q2 2024.
Loan Portfolio
As of September 30, 2024, Simmons First National Corporation had a total loan portfolio of $17.34 billion, an increase of $490.4 million from December 31, 2023. The breakdown of the loan portfolio is as follows:
| Loan Type | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Credit Cards | $177,696 | $191,204 |
| Other Consumer | $113,896 | $127,462 |
| Construction and Development | $2,796,378 | $3,144,220 |
| Single Family Residential | $2,724,648 | $2,641,556 |
| Other Commercial | $7,992,437 | $7,552,410 |
| Commercial | $2,467,384 | $2,490,176 |
| Agricultural | $314,340 | $232,710 |
| Other | $749,261 | $465,932 |
Deposits
Total deposits as of September 30, 2024, were $21.94 billion, down from $22.24 billion at December 31, 2023. The composition of total deposits is as follows:
| Deposit Type | September 30, 2024 (in billions) | December 31, 2023 (in billions) |
|---|---|---|
| Noninterest Bearing | $4.52 | $4.80 |
| Interest Bearing | $10.86 | $10.99 |
| Time Deposits | $6.55 | $6.45 |
Asset Quality
As of September 30, 2024, total non-performing loans amounted to $101.7 million, with non-performing assets as a percentage of total assets at 0.38%. The allowance for credit losses as a percentage of total loans was 1.35%.
Capital Position
Simmons First National Corporation maintained a common equity to total assets ratio of 12.94% as of September 30, 2024. The total capital was reported at $3.53 billion.
| Capital Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Capital (in billions) | $3.53 | $3.43 |
| Common Equity to Total Assets (%) | 12.94% | 12.53% |
| Tier 1 Leverage Ratio (%) | 9.57% | Not specified |
Dividend Policy
In the first nine months of 2024, Simmons First National Corporation declared cash dividends of $0.63 per share, compared to $0.60 per share in the same period of 2023.
How Simmons First National Corporation (SFNC) Makes Money
Net Interest Income
Net interest income is the primary source of earnings for Simmons First National Corporation, representing the difference between interest earned on loans and securities and interest paid on deposits and borrowings. For the three months ended September 30, 2024, net interest income was reported at $164.1 million, a 2.3% increase from the previous quarter. The interest income for this period was $334.3 million, while interest expense totaled $176.6 million.
| Period | Interest Income (in thousands) | Interest Expense (in thousands) | Net Interest Income (in thousands) |
|---|---|---|---|
| Q3 2024 | $334,289 | $176,577 | $164,110 |
| Q2 2024 | $329,145 | $175,240 | $160,481 |
| Q3 2023 | $886,643 | $392,145 | $513,430 |
Loan Portfolio
Simmons First's loan portfolio stood at $17.34 billion as of September 30, 2024, showing a $490.4 million increase since December 31, 2023. The composition of the loan portfolio is diversified across consumer, real estate, and commercial loans, with real estate loans comprising the largest share.
| Loan Type | Amount (in thousands) as of September 30, 2024 | Percentage of Total Loans |
|---|---|---|
| Consumer Loans | $291,592 | 1.7% |
| Real Estate Loans | $13,513,463 | 77.8% |
| Commercial Loans | $2,781,724 | 16.0% |
| Other Loans | $749,261 | 4.3% |
Deposits
As of September 30, 2024, total deposits were $21.94 billion, a decrease from $22.24 billion at the end of 2023. Core deposits, which exclude time deposits of $250,000 or more and brokered deposits, accounted for 77.2% of total deposits.
| Deposit Type | Amount (in billions) as of September 30, 2024 |
|---|---|
| Total Deposits | $21.94 |
| Core Deposits | $17.00 (approx.) |
| Brokered Deposits | $3.36 |
Noninterest Income
Noninterest income for the three months ended September 30, 2024 was $17.1 million, a significant decrease from $43.3 million in the previous quarter. This decline was primarily attributed to a loss on the sale of securities amounting to $28.4 million.
| Noninterest Income Source | Q3 2024 (in thousands) | Q2 2024 (in thousands) |
|---|---|---|
| Service Charges on Deposit Accounts | $12,713 | $12,252 |
| Debit and Credit Card Fees | $8,144 | $8,162 |
| Wealth Management Fees | $8,226 | $8,274 |
| Loss on Sale of Securities | ($28,393) | $0 |
Noninterest Expense
For the three months ended September 30, 2024, total noninterest expense was $137.2 million, a slight decrease compared to $139.4 million in the previous quarter. This reflects the company's efforts to control costs amidst fluctuating revenues.
| Expense Type | Q3 2024 (in thousands) | Q2 2024 (in thousands) |
|---|---|---|
| Salaries and Employee Benefits | $69,167 | $67,374 |
| Occupancy Expense | $12,216 | $12,020 |
| Other Operating Expenses | $44,540 | $42,582 |
| Total Noninterest Expense | $137,193 | $131,998 |
Profitability Metrics
The net income for the three months ended September 30, 2024, was $24.7 million, translating to a diluted earnings per share of $0.20. This represents a decrease compared to $40.8 million, or $0.32 diluted earnings per share, for the quarter ended June 30, 2024.
| Period | Net Income (in thousands) | Diluted EPS |
|---|---|---|
| Q3 2024 | $24,740 | $0.20 |
| Q2 2024 | $40,800 | $0.32 |
| Q3 2023 | $47,247 | $0.38 |
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Updated on 16 Nov 2024
Resources:
- Simmons First National Corporation (SFNC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Simmons First National Corporation (SFNC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Simmons First National Corporation (SFNC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.