Simmons Reports Higher Revenue, Flat Income in Q3

Simmons Reports Higher Revenue, Flat Income in Q3
(Karen E. Segrave)

Simmons First National Corp. of Pine Bluff (Nasdaq: SFNC) on Tuesday morning reported higher revenue but flat income in the third quarter.

The bank holding company posted revenue of $236.6 million, up 22.1% from $193.8 million in the same period a year ago. Net income was $80.6 million, matching income in the third quarter of 2021.

Simmons reported that income was affected by merger expenses related to its $581 million acquisition of Spirit of Texas Bancshares and right-sizing at branches.

The company reported earnings per share of 63 cents, down from 74 cents a year ago.

The results surpassed Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 62 cents per share.

Loans in the period totaled $15.6 billion, up 3% from the second quarter and 45% from the third quarter of 2021.

At the same time, activity in Simmons' commercial loan pipeline slowed. The company cited "the impact of rapidly rising interest rates, and our emphasis on maintaining prudent underwriting standards and pricing discipline."

CEO George Makris Jr. said the bank recognizes a "backdrop of economic uncertainty."

"Inflation levels remain elevated and market expectations are that interest rates will continue to rise, which will most likely have an impact on future economic growth and activity," he said in a news release. "As such, we are intently focused on targeted balance sheet growth that optimizes capital, prudently managing spreads, and maintaining disciplined loan and deposit pricing strategies."

Simmons Bank operates 230 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. 

Shares of the company rose 1% in pre-market trading Tuesday.

The Associated Press contributed information to this report.

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