Simmons First National reports Q2 2025 results: strong revenue growth, improved profitability.

• Simmons First National Corp reports Q2 2025 results • Revenue growth, disciplined expense management, and balance sheet growth • Net interest margin increased for 5th consecutive quarter • Loan yields up, deposit costs down • Loan pipeline strong, C&I growth, $233.1 million low-cost deposit increase • Asset quality metrics stable

Simmons First National Corp (SFNC) has released its Q2 2025 financial results, showcasing robust revenue growth, disciplined expense management, and steady balance sheet growth. The company's net interest margin (NIM) expanded for the fifth consecutive quarter, reaching 3.06% [2]. This expansion was driven by a 6 basis point increase in loan yields to 6.26% and an 8 basis point decrease in deposit costs to 2.36% [2].

Revenue for the quarter totaled $214.2 million, a significant increase from the previous quarter and the year before. The company's disciplined approach to loan pricing and proactive deposit cost management has contributed to its profitability metrics. Expense management also played a crucial role, with adjusted noninterest expenses declining by 5% from the previous quarter [2].

The bank's asset quality metrics remained relatively stable, with a net charge-off ratio of 0.25% and a nonperforming loan ratio of 0.92%. The loan loss reserve ratio remained steady at 1.48% of total loans [2]. The bank maintained strong capital levels, with a CET1 ratio of 12.36% and a total risk-based capital ratio of 14.42% [2].

Simmons First National Corp's loan pipeline appears strong, with growth in commercial and industrial (C&I) loans. The company also saw a $233.1 million increase in low-cost customer deposits, reducing its reliance on more expensive funding sources [2]. Total deposits increased slightly to $21.8 billion [2].

Analysts estimate that SFNC will report an earnings per share (EPS) of $0.40 for Q2 2025. The market awaits the announcement with hopes for news of surpassing estimates and providing upbeat guidance for the next quarter [3]. It's important for new investors to understand that guidance can be a significant driver of stock prices [3].

Simmons First National Corp's past earnings performance shows a mixed bag, with EPS estimates often differing from actual results. For example, in the last quarter, the company's EPS missed by $0.09, leading to a 3.98% drop in the share price on the following day [3].

The company's stock has been trading at $19.44 as of July 15, down 6.85% over the last 52-week period. Long-term shareholders are likely a little upset going into this earnings release [3].

References:
[1] https://www.gurufocus.com/news/2980772/what-to-expect-from-simmons-first-national-corp-sfnc-q2-2025-earnings?mod=mw_quote_news&r=4bf001661e6fdd88d0cd7a5659ff9748
[2] https://www.stocktitan.net/news/SFNC/simmons-first-national-corporation-reports-second-quarter-2025-ettr1d3ozoqs.html
[3] https://www.benzinga.com/insights/earnings/25/07/46447953/simmons-first-ntl-earnings-preview