Simmons First National Corporation Reports Second Quarter 2024 Results

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[{"type":"text","content":"PINE BLUFF, Ark., July 24, 2024 /PRNewswire/ --\n\n \n \n \n \n \n \n\n \nBob Fehlman, Simmons' Chief Executive Officer, commented on second quarter 2024 results:\nOverall, we were very pleased with our results for the quarter as key profitability metrics – net income, total revenue and pre-provision net revenue – all showed positive progression on a linked quarter basis.\nTotal loans increased 4 percent on a linked quarter annualized basis, while our focus on maintaining prudent pricing discipline resulted in a 15 basis point increase in the yield on our loan portfolio from the first quarter. At the same time, the pace of increase in deposit costs slowed, rising just 4 basis points compared to first quarter levels, and noninterest bearing deposit migration also eased. As a result, our net interest margin rose 3 basis points on a linked quarter basis.\nCredit quality trends in the quarter were also positive, with nonperforming loans and past due loans decreasing from first quarter levels. While we continue to operate against a backdrop of uncertainty concerning slower economic growth and the timing of lower interest rates, we are comforted by our strong capital and liquidity positions. And given the liability sensitivity of our balance sheet, we believe we are well-positioned for profitable growth in a lower interest rate environment.\n Financial Highlights\n 2Q24\n 1Q24\n 2Q23\n2Q24 Highlights\nBalance Sheet (in millions)\n Comparisons reflect 2Q24 vs 1Q24\n \n• Net income of $40.8 million and diluted EPS of $0.32\n \n• Adjusted earnings1 of $41.9 million and adjusted diluted EPS1 of $0.33\n \n• Total revenue of $197.2 million. PPNR1 of $57.9 million; Adjusted PPNR1 of $59.4 million\n \n• Net interest margin at 2.69%, up 3 bps\n \n• Pace of increase in deposit costs slowed significantly (4 bps) and noninterest bearing migration eased\n \n• Positive operating leverage driven by revenue growth and decline in noninterest expense\n \n• Provision for credit losses on loans exceeded net charge-offs in the quarter by $3.0 million\n \n• NCO ratio 19 bps in 2Q24; 16 bps of NCO ratio associated with run-off portfolio \n \n• ACL ratio ends the quarter at 1.34%; NPL coverage ratio at 223%\n \n• EA ratio 12.64%; TCE ratio1 up 9 bps to 7.84%\nTotal loans\n$17,192\n$17,002\n$16,834\nTotal investment securities\n6,571\n6,735\n7,337\nTotal depo...

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