Business
Simmons First National Corporation Reports Second Quarter 2022 Earnings
George A. Makris, Jr., Simmons’ Chairman and CEO, commented on the quarter Although second quarter results were significantly impacted by accounting
About this update from Simmons First National Corporation
[{"type":"text","content":"George A. Makris, Jr., Simmons’ Chairman and CEO, commented on the quarter 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. Financial Highlights2Q22 1Q22 2Q21 Second Quarter HighlightsFinancial Results (in millions) Diluted EPS was $0.21 and adjusted diluted EPS was $0.52 Revenue increased 20% on a linked quarter basis driven by the acquisition of Spirit, solid legacy SFNC net interest income growth and net interest margin expansion Noninterest expenses increased 22% on a linked quarter basis. Excluding merger related costs and certain other items, adjusted noninterest expense increased 9% Provision for credit losses totaled $33.9 million, reflecting Day 2 accounting provision for acquired loans and unfunded commitments Total loans up 26% and total deposits up 14% on a linked quarter basis. Legacy SFNC loans up 7% and deposits relatively ...