Simmons First reports 102% increase in fourth quarter income, but full year income drops 14.3%

Simmons First National Corp. reported a significant increase in fourth-quarter net income, reaching $48.3 million compared to $23.9 million in the same quarter of 2023. Earnings per share exceeded the consensus estimate, standing at 38 cents. The company’s fourth-quarter revenue also saw an improvement, totaling $208.5 million, although slightly below the consensus estimate of $208.67 million.

George Makris, Jr., the chairman and CEO of Simmons, expressed optimism about the bank’s performance in 2024 and the outlook for 2025. He highlighted positive profitability trends and noted that the results from the fourth quarter provide a strong foundation for growth. However, he also highlighted several factors that could impact the bank in the upcoming year, including the policies of a new administration, inflation levels, employment rates, interest rate trajectories, regulatory changes, insurance costs, and demographic shifts affecting housing trends.

Despite the fourth-quarter success, Simmons First National Corp. experienced a decline in full-year income, with adjusted net income reaching $177.887 million compared to $207.716 million in 2023. The per-share earnings for the year, however, exceeded the consensus estimate at $1.41. Annual revenue for 2024 amounted to $804 million, falling short of the $866.15 million reported in the previous year.

The bank’s total assets as of December 31 decreased to $26.876 billion from $27.346 billion in the same period of 2023. Total deposits also saw a decline, totaling $21.886 billion compared to $22.245 billion in 2023. On a positive note, total loans increased to $17.006 billion from $16.846 billion in 2023, indicating growth in lending activities. The return on assets as of December 31 stood at 0.56%, down from 0.64% in the previous year.

Simmons First National, operating through its subsidiary Simmons Bank, currently runs 222 branches across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas. The company closed 12 branches in 2024 and had reduced its workforce to 2,946 employees by the end of the year. Despite these operational changes, the bank remains focused on its growth and strategic initiatives for the future.

In the stock market, Simmons First National Corp.’s shares (NASDAQ: SFNC) closed at $22.79, showing a positive trajectory. The bank’s performance in the past 52 weeks indicates a share price range between $25.95 and $16.03, reflecting a dynamic market response to the company’s financial results and outlook for the future.