Simmons First National Corp. of Pine Bluff (Nasdaq: SFNC) on Thursday reported net income of $65.1 million in the first quarter, down 3.4% from $67.4 million in the same quarter a year ago.
The bank holding company said it had earnings of 58 cents per share, compared to $0.62 for the first quarter of 2021. Simmons' "core earnings" were $67.2 million, or 59 cents, on a fully diluted per share basis.
Revenue for the period was $203.9 million. Revenue net of interest expense was $187.8 million, falling short of Wall Street forecasts.
Total deposits were $19.4 billion, unchanged from the last quarter and up 7% from a year ago. Total assets decreased 0.8% from the last quarter to $24.5 billion, but were up 4.7% compared to a year ago.
Results do not include the bank's $581 million acquisition of Spirit of Texas Bancshares Inc. of Conroe, Texas. The deal closed shortly after the quarter ended.
Simmons Chairman and CEO George Makris Jr. said in a news release that results in the quarter were "solid." He pointed to accelerating loan demand, with newly-funded loans and advances topping $2.5 billion in the quarter, outpacing loan paydowns and payoffs.
The bank's commercial loan pipeline reached $2.4 billion, marking the sixth consecutive quarter of increased activity, while unfunded commitments saw a double-digit increase for the second straight quarter, rising to $3.4 billion.
The bank's nonperforming assets hit a historic low during the quarter, according to Makris.
But the company is bracing for challenges. Makris said rising interest rates, inflation and global unrest "adds uncertainty to the financial markets and potentially future economic growth."
"In times like this," he said, "it certainly helps to have strong capital and liquidity positions, a commitment to maintaining strong underwriting standards and a team that is focused on meeting challenges head-on ... ."
Shares of the company have fallen 20% since the beginning of the year. Over the past 12 months, the stock is down 16%.
