Simmons First National Q3FY26 Results: Adjusted EPS beats estimate at $0.54
- Adjusted EPS of $0.54 beat consensus estimate of $0.53 by 1.89%
- Total revenue of $251.2 million missed consensus estimate of $253.5 million by 0.91%
- Net interest margin expanded 8 bps QoQ to 3.92% due to higher loan yields and lower funding costs
- Adjusted net income rose to $79.0 million from $72.2 million in the prior quarter
*this image is generated using AI for illustrative purposes only.
Simmons First National Corporation reported third quarter 2026 adjusted earnings per share of $0.54, beating the analyst consensus estimate of $0.53 by 1.89 percent. This represents a 17.39 percent increase over the $0.46 adjusted EPS recorded in the same period last year.
Total revenue for the quarter was $251.2 million, which missed the analyst consensus estimate of $253.5 million by 0.91 percent. Reported net income stood at $47.1 million, or $0.32 diluted EPS, compared to net income of $66.7 million in the second quarter of 2026 and a net loss of $562.8 million in the third quarter of 2025. Adjusted earnings for the quarter were $79.0 million, up from $72.2 million in the second quarter of 2026 and $64.9 million in the third quarter of 2025. Adjusted pre-provision net revenue (PPNR) reached $112.3 million.
Net interest income and margin
Net interest income for the third quarter of 2026 totaled $204.0 million, up $3.3 million, or 7 percent annualized, compared to $200.6 million for the second quarter of 2026 and up $17.3 million, or 9 percent, compared to $186.7 million for the third quarter of 2025. The net interest margin on a fully taxable equivalent (FTE) basis was 3.92%, up 8 basis points from 3.84% in the second quarter of 2026 and up 42 basis points from 3.50% in the third quarter of 2025.
The increase reflected higher loan yields, balance sheet deleveraging through run-off of certain lower yielding credits, and a reduction of higher cost funding. Loan yields rose 5 bps to 6.20% while the cost of deposits fell 8 bps to 1.85%.
Key financial metrics
The following table summarises key income statement and performance metrics across recent quarters.
| Metric | 3Q26 | 2Q26 | 3Q25 |
|---|---|---|---|
| Total revenue ($ millions) | $251.2 | $248.6 | $(569.5) |
| Adjusted total revenue ($ millions) | $251.2 | $248.6 | $232.5 |
| PPNR ($ millions) | $69.1 | $100.8 | $(711.6) |
| Adjusted PPNR ($ millions) | $112.3 | $108.2 | $92.8 |
| Net income / (loss) ($ millions) | $47.1 | $66.7 | $(562.8) |
| Adjusted net income ($ millions) | $79.0 | $72.2 | $64.9 |
| Diluted EPS | $0.32 | $0.46 | $(4.00) |
| Adjusted diluted EPS | $0.54 | $0.50 | $0.46 |
| Net interest margin (FTE) | 3.92% | 3.84% | 3.50% |
| Efficiency ratio | 71.59% | 58.72% | (25.11)% |
| Adjusted efficiency ratio | 53.31% | 54.26% | 57.72% |
| ROAA | 0.77% | 1.09% | (8.96)% |
| Adjusted ROAA | 1.29% | 1.17% | 1.03% |
| Adjusted ROTCE | 15.50% | 14.37% | 13.62% |
Noninterest income and expense
Noninterest income for the third quarter of 2026 was $47.2 million, compared to $47.9 million in the second quarter of 2026. The third quarter of 2025 included a loss on the sale of securities totaling $801.5 million related to balance sheet repositioning, which drove the prior-year comparison to $(756.2) million. Adjusted noninterest income for the third quarter of 2025 was $45.9 million.
Noninterest expense for the third quarter of 2026 was $182.0 million, compared to $147.7 million in the second quarter of 2026 and $142.0 million in the third quarter of 2025. Certain items included in the third quarter of 2026, comprising branch and real estate rightsizing costs of $14.2 million, certain professional services of $17.1 million, severance and early retirement program costs of $6.0 million, and accelerated prepaid expenses of $5.9 million, totaled $43.1 million pre-tax. Excluding these items, adjusted noninterest expense was $138.9 million in the third quarter of 2026, compared to $140.3 million in the second quarter of 2026 and $139.7 million in the third quarter of 2025.
The adjusted efficiency ratio improved to 53.31% in the third quarter of 2026 from 54.26% in the second quarter of 2026 and 57.72% in the third quarter of 2025. Full-time equivalent employees fell to 2,712 from 2,909 in the prior quarter, and the number of financial centers remained at 220.
Balance sheet and capital
Total assets at the end of the third quarter of 2026 were $24,074 million, compared to $24,777 million at the end of the second quarter of 2026 and $24,208 million at the end of the third quarter of 2025. Total loans were $17,465 million, down from $18,062 million at the end of the second quarter of 2026. Total deposits were $18,616 million, compared to $19,728 million at the end of the second quarter of 2026.
Other borrowings at the end of the third quarter of 2026 were $1.4 billion, compared to $941.3 million at the end of the second quarter of 2026, reflecting increased utilization of short-term FHLB advances given favorable pricing.
| Capital Metric | 3Q26 | 2Q26 | 3Q25 |
|---|---|---|---|
| Equity to assets ratio | 13.91% | 14.05% | 13.85% |
| Tangible common equity (TCE) ratio | 8.62% | 8.91% | 8.53% |
| Common equity tier 1 (CET1) ratio | 12.05% | 11.60% | 11.54% |
| Total risk-based capital ratio | 14.80% | 14.35% | 15.07% |
| Book value per share | $23.18 | $24.11 | $23.18 |
| Tangible book value per share | $13.52 | $14.42 | $13.45 |
Both Simmons First National Corporation and its principal subsidiary, Simmons Bank, continue to maintain regulatory capital ratios significantly above "well-capitalized" regulatory guidelines.
Asset quality
Provision for credit losses on loans totaled $12.2 million for the third quarter of 2026, compared to $17.4 million in the second quarter of 2026 and $15.2 million in the third quarter of 2025. The net charge-off ratio was 27 basis points for the third quarter of 2026, compared to 20 basis points in the second quarter of 2026 and 25 basis points in the third quarter of 2025.
The allowance for credit losses on loans was $238.5 million, or 1.37% of total loans, at the end of the third quarter of 2026, compared to 1.32% at the end of the second quarter of 2026 and 1.50% at the end of the third quarter of 2025. Total nonperforming loans were $179.9 million at the end of the third quarter of 2026, compared to $166.1 million at the end of the second quarter of 2026 and $153.9 million at the end of the third quarter of 2025. The nonperforming loan coverage ratio was 133%, compared to 143% at the end of the second quarter of 2026. Provision expense exceeded net charge-offs by $14.1 million for the first nine months of 2026.
Loans and deposits
Total loans at the end of the third quarter of 2026 were $17.5 billion, compared to $18.1 billion at the end of the second quarter of 2026 and $17.2 billion at the end of the third quarter of 2025. The decrease reflected higher levels of paydowns, early payoffs, and continued focus on profitability and relationship banking through the run-off of certain lower yielding, low relationship credits. Unfunded commitments at the end of the third quarter of 2026 were $4.4 billion, up from $4.0 billion at the end of the third quarter of 2025. The commercial loan pipeline totaled $1.3 billion, and ready-to-close commercial loans totaled $455 million with a weighted average rate of 6.78%.
Noninterest bearing deposits totaled $4.3 billion at the end of the third quarter of 2026. Interest bearing deposits totaled $14.3 billion, compared to $15.4 billion at the end of the second quarter of 2026. The decrease reflected balance sheet deleveraging of higher rate deposits, seasonal decreases in public fund deposits, and a reduction in brokered deposits given pricing relative to FHLB advances.
Share repurchase program
During the third quarter of 2026, Simmons First National did not repurchase shares under its stock repurchase program authorized in January 2026 (the 2026 Program). Remaining authorization under the 2026 Program as of September 30, 2026 was approximately $161 million.
Management commentary
Jay Brogdon, President and CEO of Simmons First National, commented that the third quarter showcased the company's commitment to delivering sustainable long-term value through focused execution of strategic initiatives designed to improve profitability and further optimize the balance sheet. He noted continued reductions in noninterest expenses as well as back-book loans and deposits with low relationship value, and said disciplined loan and deposit pricing drove net interest margin expansion of 8 basis points to 3.92%, along with meaningful improvements in adjusted ROAA and adjusted ROTCE performance. Brogdon added that credit quality metrics remained relatively stable during the quarter as the company actively manages legacy credits and pursues early identification of potential problems, and that the company plans to further outline its strategic objectives and future financial targets at an upcoming Investor Day in December.
How will the strategic objectives and financial targets outlined at the upcoming December Investor Day impact Simmons First National's long-term growth trajectory?
What is the expected timeline for realizing the full annualized savings from the $43.1 million in one-time restructuring and rightsizing costs incurred in Q3?
Given the 8 basis point expansion in net interest margin, how sensitive is Simmons First National's future earnings to potential Federal Reserve rate cuts in 2027?
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