A restructuring of Simmons First’s balance sheet that included the sale of $2.4 billion in securities resulted in a loss of $562.8 million in the third quarter. The adjusted quarterly net income was $64.9 million, better than the $24.7 million in the same period of 2024.
The adjusted earnings per share for Pine Bluff-based Simmons First National Corp., the parent company of Simmons Bank, was 46 cents, below the consensus estimate of 47 cents.
Adjusted quarterly revenue was $232.5 million, up 33% compared with $174.8 million in the same period of 2024. The revenue was below the consensus estimate of $233.5 million.
“The third quarter was transformative for Simmons,” George Makris, Jr., bank chairman and CEO, said in the statement. “With overwhelming investor support we successfully raised $327 million of equity capital to reposition our balance sheet and unlock our future earnings stream. We effectively addressed a negative arbitrage between long-term bond yields and shorter-term funding costs which freed up capital for future growth. While the one-time loss on the sale of the bonds was significant, the financial strength of our company coupled with the positive sentiment from investors allowed us that opportunity.”
The sale of certain securities resulted in an after-tax loss of $626 million during the quarter, according to the earnings report. The bank also said the transactions were “only partially realized” in the third quarter. The deal also resulted in a decline in the bank’s total assets, loans, and deposits.
“I believe we are now well positioned to deliver stronger organic growth throughout our franchise which includes some of the most dynamic markets in the country,” Makris said. “Our team is prepared, and I am optimistic about Simmons’ future.”
Following are other financial items from the quarterly report.
• Total assets as of Sept. 30 reached $24.208 billion, down from $27.269 billion at the same period in 2024.
• Total deposits as of Sept. 30 were $19.838 billion, down from the $21.935 billion at the same period in 2024.
• Total loans as of Sept. 30 were $17.189 billion, down from the $17.336 billion at the same period in 2024.
• The return on assets as of Sept. 30 was a negative 8.96%, down from 0.36% at the same period in 2024. The negative percentage was a result of the one-time securities sale.
Founded in 1903, Simmons First National, through its primary subsidiary Simmons Bank, operates 220 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. The company reduced the number of branches by 12 in 2024.
Bank shares (NASDAQ: SFNC) closed Thursday at $18.02, down 98 cents. During the past 52 weeks the share price has ranged between $25.95 and $17.20.