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- **Strategic Shift to Growth**: Simmons prioritizes organic growth through talent acquisition and operational excellence, targeting disciplined loan growth with risk-adjusted returns.
- **NIM Resilience**: Q3 NIM of 3.76% reflects restructuring; Q4 guide of 3.65%+ supported by repricing tailwinds and hedging strategies.
- **Deposit Optimization**: Brokered deposits reduced to 9% of total, with core deposit growth and beta moderation expected.
- **Credit Stability**: Stable metrics with proactive management of lower-quality loans, offsetting consumer deposit trends.
- **CEO Vision**: Makris forecasts 2026 earnings growth of $650 million, highlighting the impact of recent restructuring.

**【Opening Remarks】**
- Edward Bilek emphasized the Q&A format and reminded participants of forward-looking statements and non-GAAP metrics. He highlighted the availability of earnings materials on the company website.

**【Strategic Initiatives】**
- Jay Brogdon outlined priorities: organic growth through talent acquisition and operational excellence, with a focus on disciplined loan growth and risk-adjusted returns. He noted low single-digit loan growth expectations but highlighted tailwinds from repricing fixed-rate loans.

**【Net Interest Margin (NIM) Dynamics】**
- CFO Charles Hobbs detailed the $1.4 billion HTM restructuring, which shifted the balance sheet to asset-sensitive. The Q3 NIM of 3.76% was partially impacted by rate cuts, with a Q4 guide of 3.65%+. Hedging strategies aim to maintain NIM between 3.50%-3.75% over 12 months.

**【Deposit Management】**
- Brokered deposits reduced to $1.8 billion (9% of total), with plans to eliminate them via core deposit growth. Deposit beta of 65% is expected to moderate due to reduced brokered balances. Commercial deposit growth offset consumer trends.

**【Expense and Growth Balance】**
- Jay Brogdon noted Q3 expenses may reflect one-time items but expects ongoing efficiency gains. Talent investment is balanced with cost control, targeting 3-4% expense growth.

**【Credit Outlook】**
- Stable credit metrics with NPLs and charge-offs in line with expectations. Proactive management of lower-quality loans, with $3 billion in repricing fixed-rate loans supporting margin resilience.

**【Closing Remarks】**
- CEO George Makris praised the bold restructuring and expressed optimism for 2026, citing potential $650 million earnings growth. He thanked analysts for their support over the years.

Simmons First National Corporation (SFNC) Q3 2025 Earnings Call Transcript

- **Confidence in Targets**: Management reaffirms ability to meet ambitious performance goals without providing specific 2025 guidance.
- **NIM Expansion Drivers**: 200bps repricing on fixed-rate loans and 75% variable loan production fuel margin growth, with diminishing deposit repricing opportunity.
- **Strong Pipeline Growth**: Unfunded commitments and C&I pipeline suggest robust 2H25 and 2026 loan growth despite elevated payoffs.
- **Credit Stability**: Stable metrics with low past dues and no emerging issues beyond known credits.

**【Management Opening Remarks】**
- Ed Bilek welcomed participants and highlighted the availability of earnings materials and investor presentation on the company’s website.
- Reminder of forward-looking statements and associated risks, including economic conditions, interest rates, and credit quality.
- Note on non-GAAP financial metrics and their reconciliation to GAAP in the earnings release.

**【Q&A Session Highlights】**
- **Guidance and Outlook**: Jay Brogdon stated no formal 2025 guidance update, but expressed confidence in achieving performance targets due to strong trends and improved execution pace.
- **Net Interest Margin (NIM)**: Expansion driven by loan repricing (fixed-rate loans at 46% of book repricing at ~200bps quarterly) and deposit remixing (75% variable production in Q2). CFO noted diminishing repricing opportunity on deposits as CD maturities decline.
- **Loan Growth Dynamics**: Elevated payoffs in Q1, but stable pipeline (C&I growth) and disciplined pricing maintained. Unfunded commitments suggest strong 2H25 and 2026 growth potential.
- **Hiring and Talent Strategy**: Competitive talent acquisition, particularly in disrupted markets like Texas. Investments in automation and technology freeing capacity for talent expansion.
- **Credit Quality**: Stable credit metrics with no significant issues beyond previously disclosed large credits. Past dues at low levels, supporting positive outlook.


Simmons First National Corporation (SFNC) Q2 2025 Earnings Call Transcript

- **NIM Expansion Accelerates**: Q1 NIM 2.95% (+8bps QoQ), poised to cross 3% sooner than guided. 
- **Pipeline Strength**: Commercial loan pipeline +43% QoQ, driven by borrowers locking in rates. 
- **Deposit Mix Improves**: Customer deposits +4% QoQ annualized, with 1.5% YoY growth in core checking. 
- **Credit Prudent**: $26.8M provision reflects proactive reserves on two troubled credits, leaving ACL at 1.48%. 
- **Expense Control**: Excluding $4.3M fraud charge, expenses flat QoQ. 2025 operating leverage target maintained. 
- **Capital Focus**: Prioritize organic growth and dividend over buybacks, maintaining capital flexibility.

**【President Jay Brogdon Opening Remarks】**
- **Loan Growth**: Total period-end loans up 2% QoQ annualized, with commercial loan pipeline at highest level since Q2 2022 (+43% QoQ). Average loans declined due to back-end loading of growth.
- **Deposit Mix**: Customer deposits grew $183M (+4% QoQ annualized), with 1.5% YoY growth in consumer checking accounts. Brokered deposits reduced.
- **Net Interest Margin (NIM)**: 2.95% (up 8bps QoQ, 29bps YoY), driven by fixed-rate loan repricing. Expect NIM to cross 3% sooner than initially projected.
- **Non-Interest Income**: +6% QoQ, driven by swap fee income and diversified fee businesses.
- **Credit Quality**: 
  - Total provision $26.8M due to $15.6M specific reserves on two troubled credits ($27M hotel loan, $23M franchise loan). 
  - ACL ratio 1.48% (vs 1.36% prior quarter). 
  - Excluding these credits, NPLs declined 5bps QoQ to 60bps.
  - Net charge-offs 23bps (vs 27bps prior quarter).
- **Expense Management**: Adjusted non-interest expense up $4.3M QoQ due to $4.3M fraud charge. Excluding this, expenses flat vs prior quarter.

**【Q&A Key Highlights】**
1. **Credit Resolution Timeline**: 
   - Hotel loan resolution expected by year-end, with seasonal occupancy improvements. 
   - Franchise loan resolution timing uncertain due to fraud discovery late in quarter.
2. **Pipeline Momentum**: Borrowers locking in attractive rates for preordered supplies/hedging. Agricultural and mortgage warehouse pipelines benefitting from seasonality.
3. **Deposit Strategy**: 
   - Focus on remixing to lower-cost transaction accounts (e.g., 65% of maturing CDs stayed in deposits at lower rates). 
   - Consumer deposits growing for first time in years, with core checking accounts up 1.5% YoY.
4. **Expense Discipline**: 
   - $4.3M fraud charge fully booked Q1, with potential recovery offsetting future expenses. 
   - Headcount optimized (3 net adds QoQ, 15 revenue-producing roles vs 12 support roles reduced). 
   - 2025 outlook for +3%+ operating leverage remains intact.
5. **Capital Deployment**: Prioritize organic growth and dividend over buybacks, given macro uncertainty and capital preservation focus.

**【CEO George Makris Closing Remarks】**
- Reaffirmed focus on soundness, profitability, and growth. 
- Confident in improving profitability trends despite conservative credit actions. 
- Committed to organic growth while maintaining capital flexibility.

Simmons First National (SFNC)-17 Apr 25-2025 Q1 Earnings call transcript

- **NIM Expansion Path**: 3%+ NIM achievable in 2025H2 with 200bp fixed-rate loan repricing tailwind and 24bp funding cost savings in Q4.
- **Disciplined Growth**: 1-3% loan growth focused on quality, with 75% of maturing CDs retained in lower-cost deposits.
- **Profitability Targets**: 350-360 NIM and 1.25% ROA achievable with efficient balance sheet and rate curve steepening.
- **Credit Stability**: Portfolio normalization continues with minimal new problem credits, though legacy runoff portfolio remains a monitor.

**【Net Interest Margin (NIM) Outlook】**
- 2025 NIM guide range reflects expectations for 3%+ NIM in the back half of the year, driven by disciplined loan pricing and deposit cost management.
- Q4 2024 NIM of 2.87% exceeded expectations due to 24bp funding cost improvement (80% from deposits) and 7bp fixed-rate loan repricing tailwind.
- 2025 NIM expansion will depend on Fed rate cuts (high end if cuts begin in Q3, low end if no cuts) and balance sheet restructuring opportunities.

**【Loan Growth Strategy】**
- 2025 loan growth targeted at low single digits (1-3%) with focus on soundness and profitability over volume.
- Pipeline shows broad-based opportunities across CRE, C&I, and geographies like Dallas-Ft. Worth and Nashville.
- 200bp spread on fixed-rate loan repricing expected to continue, but competitive pricing environment may limit spread persistence.

**【Deposit Cost Management】**
- Q4 2024 deposit costs down 19bp vs. Q3, with 75% of maturing CDs retained in lower-cost products.
- Consumer checking accounts grew 1.5% Y/Y, a key indicator of core deposit strength.
- Wholesale funding reduction continues as focus shifts to core customer growth.

**【Credit Quality】**
- Portfolio normalization ongoing with minimal new problem credits.
- Runoff portfolio (small balance, legacy loans) shrinking, but remaining loans may see charge-offs.
- CRE portfolio past due and non-accrual metrics stable with no emerging risks.

**【Long-Term Profitability】**
- Target 350-360 NIM with 55-60% efficiency ratio could support 1.25% ROA.
- Yield curve steepening needed for industry-wide ROA improvement.
- Balance sheet restructuring (e.g., securities portfolio) evaluated for capital/earnings trade-offs.


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