Simmons First Sees Up to 11% NII Growth, Cuts Deposit Costs 48 bps
Simmons First forecasts 9%–11% net interest income growth in 2026, with management expecting results toward the high end despite a zero-rate-cut outlook. Deposit costs fell by 48 basis points and loan yields dipped 7 basis points, while a new wealth team secured over $350 million in AUM.
1. 2026 Net Interest Income Outlook
Simmons First National forecasts net interest income growth of 9%–11% in 2026, with CFO Daniel Hobbs indicating results could land toward the upper end even as management now assumes zero rate cuts for the year.
2. Deposit and Margin Improvement
The bank has reduced higher-cost time deposits and expanded core deposits, lowering deposit costs by 48 basis points while loan yields declined by 7 basis points, driving net interest margin toward a projected mid-3.80% range by year-end.
3. Wealth Management Expansion
A newly hired wealth management team has already brought in more than $350 million in assets under management, marking early success in fee-based businesses and diversifying the company’s revenue streams beyond traditional lending.
4. Credit and Capital Strategy
Management noted a roughly 10% annualized loan growth pace but cautioned against viewing it as a consistent quarterly run rate, maintained a 10.5% CET1 capital target and signaled a patient approach to buybacks amid disciplined funding and capital deployment.