Simmons First National Corp.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 20 January 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net income returned after third-quarter loss: Net income was $78.1 million and diluted EPS $0.54, compared with a third-quarter net loss of $562.8 million tied to the securities sale. Adjusted diluted EPS was $0.54, versus $0.46. Source
• Net interest income rose on lower interest costs: Net interest income was $197.3 million, up 6 percent from the third quarter. Interest expense fell $16.5 million, with interest-bearing deposit costs down $14.1 million. Source
• Adjusted PPNR rose 19 percent: Adjusted pre-provision net revenue reached $110.4 million. Management attributed the rise to continued expense discipline. Reported PPNR was $109.1 million. Source
• Margin widened 31 basis points: Net interest margin on a fully taxable equivalent basis was 3.81 percent, against 3.50 percent in the third quarter and 2.87 percent a year earlier. Investment securities yield was 4.30 percent. Source
• Charge-offs tied to two credit relationships: Net charge-offs were 112 basis points for the quarter, including $28.2 million, or 65 basis points, tied to two previously disclosed credit relationships. Source
• Nonperforming loans declined: Nonperforming loans fell to $112.7 million from $153.9 million, with a $40.8 million decline tied to the two credit relationships. Source
• Allowance fell as specific reserves were used: The allowance on loans was $224.4 million, down from $258.0 million, as specific reserves were used on the two relationships and the run-off portfolio. Source

“Our results for the fourth quarter exceeded expectations across the board, reflecting the positive results of the balance sheet repositioning transactions in the third quarter as well as disciplined execution of our strategy.”

Jay Brogdon, Simmons’ President and CEO

What changed from last quarter

• Ended: Redemption of the $330 million 2028 subordinated notes was completed on October 1, 2025. Source
• Ended: The company completed the sale of a small-ticket equipment finance portfolio during the quarter. Source

Earnings and growth drivers

• Net income returned after third-quarter loss: Net income was $78.1 million and diluted EPS $0.54, compared with a third-quarter net loss of $562.8 million tied to the securities sale. Adjusted diluted EPS was $0.54, versus $0.46. Source
• Net interest income rose on lower interest costs: Net interest income was $197.3 million, up 6 percent from the third quarter. Interest expense fell $16.5 million, with interest-bearing deposit costs down $14.1 million. Source
• Adjusted PPNR rose 19 percent: Adjusted pre-provision net revenue reached $110.4 million. Management attributed the rise to continued expense discipline. Reported PPNR was $109.1 million. Source

Net interest margin and deposit costs

• Margin widened 31 basis points: Net interest margin on a fully taxable equivalent basis was 3.81 percent, against 3.50 percent in the third quarter and 2.87 percent a year earlier. Investment securities yield was 4.30 percent. Source
• Deposit costs eased 21 basis points: Cost of deposits fell to 2.04 percent from 2.25 percent. Cost of interest-bearing deposits was 2.62 percent, down from 2.86 percent in the third quarter. Source
• Loan and low-cost deposit growth cited: Management also cited loan and low-cost deposit growth during the quarter as a contributor to the margin increase. Source

“As we enter 2026, our commitment to delivering profitable growth and efficient scale positions us well for the future.”

Jay Brogdon, Simmons’ President and CEO

Noninterest income and expense

• Fee income rose across several lines: Adjusted noninterest income was $51.7 million, compared with $45.9 million in the third quarter. Swap fees, wealth management fees, card fees and bank-owned life insurance death benefits contributed. Source
• Adjusted expense declined on accruals: Adjusted noninterest expense fell to $138.6 million from $139.7 million, helped by a fraud recovery. Timing of professional services and marketing costs partly offset the decline. Source
• Adjusted efficiency ratio improved: Adjusted efficiency ratio improved to 53.64 percent from 57.72 percent in the third quarter. The reported efficiency ratio was 55.52 percent. Source

Loans, deposits and pipeline

• Loans grew 7 percent annualized: Total loans reached $17.5 billion, up $303.4 million from the third quarter. Growth came from real estate commercial, commercial, and consumer and other portfolios. Source
• Seasonal declines offset some growth: Mortgage warehouse and agricultural portfolios declined seasonally, offsetting part of the loan increase. Source
• Commercial pipeline and ready-to-close loans: The commercial loan pipeline was $1.5 billion. Ready-to-close commercial loans were $774 million at a 6.53 percent weighted average rate. Unfunded commitments were $3.9 billion. Source
• Customer deposits grew 8 percent annualized: Customer deposits rose $349 million, led by interest-bearing transaction and savings accounts and interest-bearing public fund deposits. Total deposits reached $20.2 billion. Source
• Other borrowings rose from low base: Other borrowings were $302.3 million, up from $18.8 million. The year-over-year decline reflected pay-downs of FHLB advances during the balance sheet repositioning. Source

Asset quality and credit losses

• Charge-offs tied to two credit relationships: Net charge-offs were 112 basis points for the quarter, including $28.2 million, or 65 basis points, tied to two previously disclosed credit relationships. Source
• Nonperforming loans declined: Nonperforming loans fell to $112.7 million from $153.9 million, with a $40.8 million decline tied to the two credit relationships. Source
• Run-off portfolio charge-offs reported: Run-off portfolio net charge-offs were $6.2 million, or 14 basis points, for the quarter. Source
• Allowance fell as specific reserves were used: The allowance on loans was $224.4 million, down from $258.0 million, as specific reserves were used on the two relationships and the run-off portfolio. Source
• Provision held near prior-quarter level: Provision for credit losses on loans was $15.1 million, close to the third-quarter level. Source

Capital, cash and returns to shareholders

• Book value and tangible book value rose: Book value per share was $23.62, against $23.18 in the third quarter. Tangible book value per share was $13.91, up from $13.45, mainly from higher undivided profits. Source
• Regulatory ratios above well-capitalized levels: Regulatory capital ratios for the company and Simmons Bank remain above well-capitalized levels. CET1 ratio was 11.63 percent, up from 11.54 percent. Source
• Tangible common equity ratio increased: Tangible common equity was 8.7 percent of tangible assets, up from 8.5 percent. Equity to assets was 13.9 percent, unchanged from the third quarter. Source
• No shares repurchased in quarter: No shares were repurchased in the fourth quarter. About $175 million remained under the 2024 program at December 31, 2025. Source

Franchise and workforce

• Long dividend record noted: The company describes 116 consecutive years of cash dividends. The quarterly dividend declared was 0.2125 per share, unchanged from the third quarter. Source
• Staff and financial centers changed slightly: Full-time equivalent employees were 2,917, up from 2,883. Financial centers were 222, down from 223. Source
• Noninterest-bearing deposit share held: Noninterest-bearing deposits were 21 percent of total deposits, against 22 percent in the third quarter. Source

Figures management reported

Risks management discussed

• Financial: Management said the allowance is near the top of its modeled range, with reserves on the two relationships described as appropriate. Source
• Financial: Management said it reviewed nonperforming loans in depth and took action to improve the portfolio’s loss content. Source

Earlier plans management reported on

• Not stated: The third-quarter release said repositioning benefits were only partly reflected in that quarter. The fourth-quarter release describes a full-quarter effect.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.