Simmons First National Corp. of Pine Bluff on Sunday reported third-quarter net income of $28.9 million, up 17 percent from $23.4 million for the same quarter of last year.
The company (Nasdaq: SFNC), which last week completed its acquisitions of Southwest Bancorp Inc. of Stillwater, Oklahoma, and First Texas BHC Inc. of Fort Worth, Texas, reported diluted earnings per share of 89 cents. That’s up from 76 cents in the same quarter of 2016.
The acquisitions pushed the company’s assets to about $14.2 billion. Systems conversions are planned during the first half of next year, when the subsidiary banks will be merged into Simmons Bank.
Simmons also became sole shareholder of Little Rock’s Heartland Bank during the quarter. Heartland remains a separately chartered state bank, and Simmons is evaluating its next steps regarding the institution.
Included in the most recent quarter were a $1.8 million gain from insurance affiliates of the company completing the sale of their property and casualty insurance business lines on Sept. 1 and $721,000 in net after-tax merger-related and branch right-sizing costs.
The company also completed its integration of First South Bank of Jackson, Tennessee, into Simmons Bank.
“The third quarter was certainly an exciting and eventful quarter for us,” Chairman and CEO George Makris Jr. said in a news release. “We are pleased with the operating results from the third quarter, and I am extremely proud of our associates’ ability to manage the significant transactions during the quarter while producing outstanding results. We are also excited to welcome the associates of Bank SNB and Southwest Bank to the Simmons family. We look forward to a great partnership.”
Total loans were $6.3 billion as of Sept. 30, up nearly 17 percent from the same period in 2016. Legacy loans — all loans excluding acquired loans — grew by $1.3 billion, or 33 percent.
Total deposits were $7.3 billion, up nearly 11 percent from the same period in 2016.
Quarterly net interest income was $78.8 million, up nearly 16 percent from the same period last year. Net interest margin was 3.91 percent, a 17 basis-point decline from the same quarter last year.
Non-interest income was $36.3 million, down $544,000 compared with the third quarter of 2016.
Simmons attributed the decrease to:
- A $3.7 million gain on sale of property and casualty insurance business lines.
- A $325,000 loss on the sale of fixed assets.
- A $1.2 million decrease in mortgage revenue due to decline in demand in the industry.
- A $451,000 decrease in investment banking revenue, due to the exit from the institutional division of the broker dealer line of business in the third quarter of 2016.
- A $312,000 decrease in gain on sale of securities.
- A $2 million decrease in other income due to recovery of charged off loans acquired in third quarter of 2016.
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