Simmons First National Corporation released results for the second quarter of 2022 on Thursday. Highlights include:
- A reported net income of $27.5 million for the second quarter of 2022, compared to $65.1 million in the first quarter of 2022 and $74.9 million in the second quarter of 2021.
- Diluted earnings per share were $0.21 for the second quarter of 2022, compared to $0.58 for the first quarter of 2022 and $0.69 for the second quarter of 2021.
- Included in second quarter 2022 results were $14.4 million (after-tax) of certain items, primarily merger-related expenses associated with our acquisition of Spirit of Texas Bancshares, Inc. (Spirit) that was completed on April 8, 2022. Certain items, consisting primarily of merger-related expenses and branch right-sizing costs, totaled $2.1 million (after-tax) in the first quarter of 2022 and $0.5 million (after-tax) in the second quarter of 2021.
- Additionally, second quarter 2022 results included a $33.8 million Day 2 accounting provision required for loans and unfunded commitments acquired in connection with our second quarter acquisition.
- Excluding these items, adjusted diluted earnings per share were $0.52 for the second quarter of 2022, $0.59 for the first quarter of 2022 and $0.69 for the second quarter of 2021.
George A. Makris Jr., Simmons’ Chairman and CEO, commented on the results:
Although second quarter results were significantly impacted by accounting adjustments and one-time merger expenses related to our acquisition of Spirit of Texas Bancshares during the quarter, Simmons’ operating results excluding these items were extremely strong. Highlights for the quarter include a significant increase in revenue, well-contained operating expense growth, improved asset quality, annualized organic loan growth in excess of 25 percent, marked improvement in the efficiency ratio, substantial expansion of the net interest margin, and excellent capital ratios.
Our strategy of restructuring our loan portfolio over the past two years not only diversified the risk profile but also established capacity which should provide the foundation for additional loan and revenue growth, which is evident in our loan pipeline and unfunded commitments. Our liquidity is solid, and our capital is strong. We are growing in all markets as demonstrated by the addition of nearly 2,000 new business deposit accounts in the quarter. Thanks to our continuing investment in technology associated with our NGB project, our digital products continue to be expanded and our Chief Digital Officer, Alex Carriles, was recently recognized as a “Digital Banker of the Year” by American Banker. Other initiatives, such as the engagement of Disney Institute to help us focus on our customer service standards, will continue to headline our “Better Bank” objective.
I am very proud of the members of our Simmons team who truly exemplify our Better Together cultural cornerstone.”
Full Simmons Earnings Release Report for the 2nd Quarter 2022 is available here.