Simmons First National (SFNC) Q4 2025 earnings summary

Executive summary

• Achieved record loan production and strong pre-provision net revenue in Q4, with net income of $79.0M and adjusted diluted EPS of $0.54, up 22% sequentially, reversing a prior quarter net loss.

• Net interest margin (NIM) rose to 3.81% in Q4, up 94 bps year-over-year and 31 bps sequentially, driven by balance sheet repositioning and disciplined pricing.

• Total loans and deposits both grew 7% annualized on a linked quarter basis, with customer deposits up 8% annualized.

• Asset quality improved with resolution of two problem credits and sale of Equipment Finance business, resulting in stable credit outlook.

• Efficiency initiatives reduced expenses below 2022 run rates, with adjusted efficiency ratio improving to 53.6%.

Financial highlights

• Net interest income for Q4 was $197.3M, up 6% sequentially and 20% year-over-year.

• Adjusted total revenue reached $249.0M, up 7% sequentially and 19% year-over-year.

• Adjusted PPNR was $110.4M, up 19% sequentially and 60% year-over-year.

• Noninterest income for Q4 was $51.7M, up 13% sequentially and 19% year-over-year, partly due to BOLI gains.

• Adjusted noninterest expense was $138.6M, down 1% sequentially and year-over-year.

Outlook and guidance

• 2026 outlook projects total loans to grow low-to-mid single digits, customer deposits up low single digits, and net interest income up 9-11%.

• NIM expected to remain stable in 2026, with potential upside from organic low-cost deposit growth.

• Adjusted noninterest income expected to be stable, with core fees up 3% and adjusted noninterest expense up 2-3%.

• Net charge-offs expected at ~25 bps, with a stable credit outlook and effective tax rate of ~20%.

• ROTC targeted in mid-teens, with ROA run rate in mid one-teens.