Simmons’ Q1 Profit Falls 16.7% on Troubled Loans, Fraud Loss

A Simmons Bank branch at an office building in Clayton, Missouri (Shutterstock)

Editor’s note: A previous version of this story incorrectly stated Simmons’ net income in the first quarter of 2024 and the percent by which it declined in the first quarter of 2025.

Simmons First National Corp. of Pine Bluff (Nasdaq: SFNC) put $15.6 million aside to cover potential losses from two nonperforming loans in the first quarter, which weighed on profits in the period.

Profits were also hit by a $4.3 million fraud event related to one of the loans.

The parent company for Simmons Bank on Wednesday reported net income of $32.4 million in the first quarter, down nearly 16.7% from $38.9 million a year ago. Per share, earnings came to 26 cents.

The results did not meet Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 36 cents per share.

Revenue was $209.6 million, up 7.4% from $195.1 million and above Wall Street forecasts.

Toward the end of the quarter, the bank set money aside to cover potential losses on a $26.9 million loan for a hotel in downtown St. Louis. Simmons said the loan originated before the COVID-19 pandemic and has been in danger of default since April 2021. The property remains in operation but experienced seasonal stress during the first quarter, partly due to harsher than normal winter weather.

Simmons also moved to cover potential losses from a $22.9 million loan to an unnamed fast-food operator. The borrower has been in danger of default since June 2024 due to “sector-related headwinds and global cash flow concerns,” Simmons said. The bank also lost $4.3 million due to customer deposit fraud involving entities affiliated with the borrower.

Simmons said it expects its reserve funds to “adequately cover any potential loss beyond the combined value of collateral and recourse” for the two loans. CEO George Makris Jr. said asset quality elsewhere remains sound.

“We are, though, carefully monitoring the economic volatility in the United States and the world,” Makris said. “Financial markets suffer in times of uncertainty, which appears present today, and can threaten the pace of business investment.

“We are hopeful for stability in economic policy, which will provide better insight into future growth opportunities. In the meantime, we will continue to invest in our business as well as the communities we serve.”

Shares of Simmons fell 3.75% Thursday morning to $17.43. Over the past year, shares were down less than 1%.

The bank finished the first quarter with total loans of $17.1 billion, up 0.5% from a year ago.

Deposits totaled $21.7 billion, down nearly 1% from $21.9 billion a year ago.

Assets totaled $26.8 billion, down 2.2% from $27.4 billion.

Simmons operates 222 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. The bank opened a regional office in Jonesboro in March.