Simmons First National Q3 adjusted EPS beats estimates on lower expenses, margin expansion
SFNC•Simmons First National reported Q3 adjusted EPS of $0.54, above the $0.53 analyst estimate, while revenue of $251.2 million slightly missed the $253.47 million estimate. The company said lower expenses and strategic initiatives drove margin expansion.
1. Quarterly results
Simmons First National reported Q3 net income of $47.1 million and adjusted net income of $79 million. Net interest income was $204 million, net interest margin was 3.92% and the CET1 capital ratio was 12.05%.
2. Drivers and outlook
The company attributed margin expansion and improved adjusted returns to lower noninterest expenses, reductions in low-value loans and deposits, and disciplined loan and deposit pricing. It plans to outline future financial targets at an investor day in December and expects efficiency gains to fund investments supporting organic growth.
