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Simmons Income Falls 15% in Q1 as FDIC Levies Another Special Assessment

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Simmons First National Corp. (Nasdaq: SFNC) of Pine Bluff on Wednesday reported a $1.6 million FDIC special assessment in the first quarter, an expense that contributed to a 14.7% decrease in net income in the period.

It’s the second consecutive quarter the FDIC has imposed a special assessment on the holding company for Simmons Bank to help recover losses following bank failures in 2023. Simmons was charged a $10.5 million assessment in the fourth quarter of 2023.

In the most recent period, net income totaled $38.9 million, down from $45.6 million in the first quarter of 2023. The bank said it had earnings of 31 cents per share. Earnings, adjusted for non-recurring costs, were 32 cents per share.

The results met Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was also for earnings of 32 cents per share.

Simmons posted revenue of $365.8 million in the period. Its revenue net of interest expense was $195.1 million, which did not meet Street forecasts.

Shares of the company fell nearly 5% on Wednesday morning to $17.90. Year to date, shares were down about 9.5%.

Loans totaled just over $17 billion, up 0.9% from $16.8 billion on a quarterly basis and up 1.76% from $16.56 billion from the first quarter of 2023. Unfunded loan commitments, an indicator of future growth, came to $3.9 billion, flat compared to the fourth quarter and down from $4.7 billion a year ago.

Deposits in the first quarter totaled $22.35 billion, rising slightly from $22.34 billion in the fourth quarter, but down from $22.45 billion a year ago.

CEO Bob Fehlman said in a statement that the lender was “particularly encouraged by the growth in money market and savings accounts” in the first quarter. “Importantly, the growth in loans and deposits, coupled with lower wholesale funding costs, enabled us to maintain a relatively stable net interest margin despite continued low-cost deposit migration.”

Total deposits ticked up 0.1% in the first quarter to $27.4 billion, which is 0.8% lower than a year ago.

Simmons Bank has 233 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.



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