Simmons First National reports Q2 EPS 48c, consensus 40c

Reports Q2 Book value per share up 5% and tangible book value per share up 8%, both year-over-year. Q2 net charge-offs as a percentage of average loans were 4 basis points, compared to 3 basis points in the Q1 and 2 basis points in the Q2 of 2022. Net charge-offs as a percentage of average total loans, excluding credit cards, were 1 basis point for the Q2 of 2023. Bob Fehlman, Simmons’ CEO, commented, “Simmons posted net income of $58.3M and diluted earnings per share of 46c for the quarter. Adjusted earnings were $61.1M and adjusted diluted EPS were 48c. Balance sheet growth was steady, with total loans ending the quarter at $16.8B, up 2%, and total deposits at $22.5B, up slightly, both on a linked quarter basis. Our Better Bank Initiative, which is focused on programs designed to optimize operational processes and increase capacity to capitalize on organic growth opportunities, achieved continued success across multiple fronts. During the quarter, we substantially completed our early retirement program, which is expected to result in approximately $5.1M in annual cost savings. Extensive progress was also completed on other identified opportunities related to process improvements and streamlining or upgrading systems; and, as a result, we are on track to meet or exceed the estimated $15M in annual cost savings we have identified to date by the end of 2023.”