Simmons First National Corporation released results for the first quarter of 2022 on Thursday. Highlights include:
- Net income of $65.1 million, or $0.58 on a fully diluted per share basis
- Core earnings of $67.2 million, or $0.59 on a fully diluted per share basis
- Newly funded loans and advances top $2.5 billion in the quarter, outpacing loan paydowns and payoffs
- Commercial loan pipeline reaches $2.4 billion, marks 6th consecutive quarter of increased activity; unfunded commitments record second straight double-digit quarterly increase, rising to $3.4 billion
- Total deposits increase to $19.4 billion while reflecting continued success in growth of low-cost deposits and effectively managing rates; cost of deposits drops to 14 bps, down 3 bps on a linked quarter basis
- Continued improvement in credit quality metrics and economic scenarios drive provision benefit in the quarter; nonperforming loan ratio drops to 53 bps, NPL coverage ratio remains strong at 278 percent
- Regulatory capital ratios remain significantly above “well-capitalized” guidelines; CET1 ratio ends the quarter at 13.52 percent, total risked-based capital ratio stands at 16.42 percent
- Acquisition of Spirit of Texas Bancshares, Inc. closed shortly after quarter end, less than five months after announcement; systems conversion completed over two-day weekend, and branches opened on April 11 as Simmons Bank
Simmons reported net income of $65.1 million for the first quarter of 2022, compared to $67.4 million in the first quarter of 2021. Diluted earnings per share were $0.58 for the first quarter of 2022, compared to $0.62 for the first quarter of 2021. Included in first quarter 2022 results were $2.1 million in net after-tax merger related and net branch right-sizing costs, while first quarter 2021 results included a $3.4 million net after-tax benefit primarily associated with a gain on sale of branches in Illinois. Excluding the impact of these items, core earnings for the first quarter of 2022 were $67.2 million, compared to $64.0 million for the first quarter of 2021. Core diluted earnings per share were $0.59 for both the first quarter of 2022 and the first quarter of 2021.
“Simmons posted solid results in the quarter driven by accelerating loan demand across our footprint and continued growth of low-cost deposits,” said George A. Makris, Jr., Simmons’ chairman and CEO. “We also delivered another quarter of exceptional credit performance, with nonperforming assets dropping to historically low levels. Equally important, we were able to achieve these results while simultaneously completing the acquisition and conversion of Spirit of Texas Bancshares, Inc. shortly after the end of the quarter. This acquisition more than doubles our size and scale in the Lone Star State, while complementing our existing presence in the Dallas-Fort Worth market and adding a platform for growth in Houston, Austin, San Antonio, Corpus Christi and College Station, as well as a number of other attractive community markets.”
“While we are encouraged by our results to start the year, we also recognize the challenges ahead given expectations that interest rates are most likely to increase further during the remainder of 2022, the impact elevated inflation levels have on the cost of everyday goods and services, and the global unrest that adds uncertainty to the financial markets and potentially future economic growth. In times like this, it certainly helps to have strong capital and liquidity positions, a commitment to maintaining strong underwriting standards and a team that is focused on meeting challenges head-on, while working to ensure we provide our customers exceptional service and access to the products and services they need to successfully manage their financial needs.”
Full Simmons Earnings Release Report for the 1st Quarter 2022 is available here.