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Simmons First National Corporation Reports Fourth Quarter EPS of $0.54

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PINE BLUFF, Ark., Jan. 20, 2026 /PRNewswire/ --  Financial Highlights    4Q25    3Q25    4Q24 4Q25 H...

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AI Summary

Simmons First National Corporation (SFNC) reported a strong Q4 2025 performance with net income of $78.1 million, significantly recovering from a prior loss. Key drivers included an increased net interest margin and improved asset quality metrics, positioning the bank favorably for 2026 growth.

Sentiment Rationale

SFNC's recovery from previous losses and solid financial metrics signal a positive shift, reminiscent of past recoveries in banking stocks during economic rebounds, likely leading to upward price adjustments.

Trading Thesis

SFNC's strong quarterly performance and improving metrics support a bullish outlook in the short term.

Market-Moving

  • Net interest margin expanded, improving profitability outlook.
  • Total loans increased, signaling robust lending activity.
  • NPL ratio decline reflects improved asset quality.
  • Market response to earnings recovery could trigger upward price movement.

Key Facts

  • SFNC reported Q4 2025 net income of $78.1 million.
  • Diluted EPS for Q4 increased to $0.54 from a loss of $4.00.
  • Total loans and deposits rose by 7% annualized.
  • Net interest margin expanded by 31 bps to 3.81%.
  • NPL ratio improved, declining to 0.64%.

Companies Mentioned

  • Simmons First National Corporation (SFNC): The company's strong recovery in Q4 2025 enhances investor confidence.

Earnings

This analysis falls under 'Earnings' as it focuses on SFNC's Q4 financial performance highlights and their implications for future growth. Given the improvements in profitability and asset quality, these results are pivotal for investor sentiment.

Simmons First National Corporation Reports Fourth Quarter Earnings for 2025

Simmons First National Corporation (NASDAQ: SFNC) has announced its financial results for the fourth quarter of 2025, showcasing a remarkable recovery with a net income of $78.1 million and a diluted earnings per share (EPS) of $0.54. This is a significant rebound from a net loss of $562.8 million in the previous quarter and an improvement over last year’s net income of $48.3 million.

Fourth Quarter 2025 Financial Highlights

  • Total revenue: $249.0 million
  • Pre-provision net revenue (PPNR): $109.1 million
  • Return on average assets (ROAA): 1.28%
  • Return on average common equity (ROE): 9.08%
  • Adjusted return on average tangible common equity (ROTCE): 16.10%
  • Net interest margin: Increased by 31 basis points to 3.81%
  • Total loans: $17.492 billion (up 7% annualized)
  • Total deposits: $20.184 billion

Operational Efficiency and Growth

The company has demonstrated substantial operational efficiency with an adjusted efficiency ratio of 53.64%. The net charge-off (NCO) ratio was reported at 1.12%, while the nonperforming loan (NPL) ratio decreased to 0.64%, reflecting effective risk management in the loan portfolio.

Moreover, Simmons’ ability to maintain a strong net interest margin, coupled with a disciplined approach to expense management, contributed to a 19% linked-quarter increase in adjusted PPNR. According to Jay Brogdon, Simmons’ President and CEO, the results exceeded expectations and highlighted the success of the company’s strategy and balance sheet repositioning during the third quarter.

Insights from Leadership

Jay Brogdon remarked, “Our results for the fourth quarter exceeded expectations across the board... balance sheet growth was solid as total loans increased 7 percent on an annualized basis.” Brogdon further noted the deep analysis conducted on nonperforming loans, which led to proactive measures to enhance the loan portfolio’s quality and a solid end to the quarter with an allowance for credit losses (ACL) ratio of 1.28%.

Looking Ahead

As Simmons First National Corporation prepares to enter 2026, the company emphasizes its commitment to profitable growth and efficient scale. The current momentum positions Simmons favorably for continued success, aiming to enhance value for customers and drive shareholder returns.

Summary of Key Financial Metrics

Metrics 4Q25 3Q25 4Q24
Net Income/Loss $78.1 million $(562.8) million $48.3 million
Diluted Earnings per Share $0.54 $(4.00) $0.38
Total Assets $24.541 billion $24.208 billion $26.876 billion
Total Deposits $20.184 billion $19.838 billion $21.886 billion

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