Simmons First National Corp. of Pine Bluff (Nasdaq: SFNC) on Thursday morning reported that profit fell to $27.5 million in the second quarter, down from $74.9 million a year ago.
The bank holding company reported earnings of 21 cents per chare, down 69.6% from the same quarter in 2021.
The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 46 cents per share.
Revenue in the quarter was up significantly, rising to $225.4 million from $188.5 million a year ago.
CEO George Makris Jr. said in an earnings report that results in the quarter were "significantly impacted" by accounting adjustments and one-time merger expenses related to the company's $581 million acquisition of Spirit of Texas Bancshares.
Excluding those factors, Makris said, the results were "very strong."
"Our liquidity is solid, and our capital is strong. We are growing in
all markets as demonstrated by the addition of nearly 2,000 new business deposit accounts in the quarter," he said.
Unfunded commitments increased for the fifth consecutive quarter to $4.5 billion. Momentum in the company's commercial loan pipeline continued, as well, with activity rising for the seventh straight quarter.
Total loans grew by 26% in the quarter to $15.1 billion, compared to $12 billion at the end of the first quarter and $11.4 billion at the end of the second quarter of 2021. The increase reflects the addition of $2.3 billion of loans from the acquisition of Spirit.
Deposits increased 14% in the quarter to $22 billion, compared to $19.4 billion at the end of the first quarter of 2022 and $18.3 billion at the end of the second quarter of 2021.
Simmons reported $27.2 billion in total assets, up 11% from the first quarter of 2022 and 16.2% higher than the second quarter of 2021.
Simmons declared a quarterly cash dividend on Class A common stock of $0.19 per share, payable on Oct. 3. The dividend rate represents an increase of $0.01 per share, or 6%, from the dividend paid for the same period last year.
Share prices were flat midday Thursday. For the year to date, shares have fallen 26%.
The Associated Press contributed to this report.