Business
Simmons First National Corporation Reports Second Quarter 2023 Results
PINE BLUFF, Ark., July 25, 2023 /PRNewswire/ -- Bob Fehlman, Simmons' Chief Executive Officer, commented on second quarter 2023 results: Simmons posted net
About this update from Simmons First National Corporation
[{"type":"text","content":"PINE BLUFF, Ark., July 25, 2023 /PRNewswire/ --\n\n \n \n \n \n \n \n\n \nBob Fehlman, Simmons' Chief Executive Officer, commented on second quarter 2023 results:\nSimmons posted net income of $58.3 million and diluted earnings per share of $0.46 for the quarter. Adjusted earnings1 were $61.1 million and adjusted diluted earnings per share1 were $0.48. Balance sheet growth was steady, with total loans ending the quarter at $16.8 billion, up 2 percent, and total deposits at $22.5 billion, up slightly, both on a linked quarter basis. \nOur Better Bank Initiative, which is focused on programs designed to optimize operational processes and increase capacity to capitalize on organic growth opportunities, achieved continued success across multiple fronts. During the quarter, we substantially completed our early retirement program, which is expected to result in approximately $5.1 million in annual cost savings. Extensive progress was also completed on other identified opportunities related to process improvements and streamlining or upgrading systems; and, as a result, we are on track to meet or exceed the estimated $15 million in annual cost savings we have identified to date by the end of 2023.\nWhile we continue to navigate the challenging economic environment, like many in our industry we have experienced an increase in funding costs given the rapid rise in interest rates and resulting steps taken to defend our core customer deposit base. Given our strong liquidity and capital positions, our focus on maintaining prudent underwriting standards and our 120-year history, we believe we are in a position to continue to serve our customers and expand market share across our attractive footprint.\nFinancial Highlights\n 2Q23\n 1Q23\n 2Q22\nQ2 23 Highlights\nBalance Sheet (in millions)\n Metrics as of quarter end:\nNet income of $58.3 millionand diluted EPS of $0.46Adjusted earnings1 of $61.1million and adjusted dilutedEPS1 of $0.48 Strong expense managementwith noninterest expense down2% on a linked quarter basisMaintained strong funding andliquidity positions as depositsincreased on a linked quarterbasis and coverage of uninsureddeposits rose to 2.3xDisciplined loan growth as totalloans increased 2% on a linkedquarter basis4 bps of net charge-offs; ACL tototal loans unchanged at 1.25%Book value per share up 5% andtangible book value per...