3Q26
Filed Oct 15, 2026Simmons First National Corporation reports third-quarter 2026 net income of $47.1 million and adjusted net income of $79.0 million as net interest margin expanded to 3.92%.
Adjusted earnings, adjusted EPS, net interest income and net interest margin improved from 2Q26, while reported earnings fell following $43.2 million of pre-tax adjusting items. Loans, deposits, equity and tangible book value declined sequentially, and nonperforming loans and net charge-offs increased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue - 3Q26GAAP | $251.2M | – | – |
| Adjusted total revenue - 3Q26non-GAAP | $251.2M | – | – |
| Net interest income - 3Q26GAAP | $204M | up $3.3 million, or 7 percent annualized | up $17.3 million, or 9 percent |
| Noninterest income - 3Q26GAAP | $47.2M | – | – |
| Adjusted noninterest income - 3Q26non-GAAP | $47.2M | – | – |
| Service charges on deposit accounts - 3Q26GAAP | $13.6M | – | – |
| Wealth management services - 3Q26GAAP | $11.4M | – | – |
| Debit and credit card services - 3Q26GAAP | $8.7M | – | – |
| Mortgage lending income - 3Q26GAAP | $1.7M | – | – |
| Other service charges and fees - 3Q26GAAP | $1.5M | – | – |
| Bank owned life insurance income - 3Q26GAAP | $4.2M | – | – |
| Other income - 3Q26GAAP | $6M | – | – |
| Pre-provision net revenue - 3Q26other | $69.1M | – | – |
| Adjusted pre-provision net revenue - 3Q26non-GAAP | $112.3M | – | – |
| Noninterest expense - 3Q26GAAP | $182M | – | – |
| Adjusted noninterest expense - 3Q26non-GAAP | $138.9M | – | – |
| Provision for credit losses on loans - 3Q26GAAP | $12.2M | – | – |
| Net income - 3Q26GAAP | $47.1M | – | – |
| Adjusted net income - 3Q26non-GAAP | $79M | – | – |
| Diluted earnings per share - 3Q26GAAP | $0.32 | – | – |
| Adjusted diluted earnings per share - 3Q26non-GAAP | $0.54 | – | – |
| Net interest margin (FTE) - 3Q26other | 3.92% | up 8 basis points | up 42 basis points |
| Loan yield (FTE) - 3Q26other | 6.20% | – | – |
| Cost of interest bearing deposits - 3Q26other | 2.39% | – | – |
| Cost of deposits - 3Q26other | 1.85% | – | – |
| Efficiency ratio - 3Q26other | 71.59% | – | – |
| Adjusted efficiency ratio - 3Q26non-GAAP | 53.31% | – | – |
| Return on average assets - 3Q26GAAP | 0.77% | – | – |
| Adjusted return on average assets - 3Q26non-GAAP | 1.29% | – | – |
| Return on average common equity - 3Q26GAAP | 5.37% | – | – |
| Adjusted return on tangible common equity - 3Q26non-GAAP | 15.50% | – | – |
| Total loans - September 30, 2026GAAP | $17.46B | – | – |
| Unfunded loan commitments - September 30, 2026other | $4.36B | – | – |
| Total deposits - September 30, 2026GAAP | $18.62B | – | – |
| Noninterest bearing deposits - September 30, 2026other | $4.29B | – | – |
| Interest bearing deposits - September 30, 2026other | $14.3B | – | – |
| Other borrowings - September 30, 2026GAAP | $1.4B | – | – |
| Allowance for credit losses on loans - September 30, 2026GAAP | $238.5M | – | – |
| Net charge-off ratio - 3Q26other | 27 basis points | – | – |
| Allowance for credit losses to loans - September 30, 2026other | 1.37% | – | – |
| Total nonperforming loans - September 30, 2026other | $179.9M | – | – |
| Nonperforming assets to total assets - September 30, 2026other | 78 basis points | – | – |
| Total assets - September 30, 2026GAAP | $24.07B | – | – |
| Total shareholders' equity - September 30, 2026GAAP | $3.35B | – | – |
| Cash and cash equivalents - September 30, 2026GAAP | $759.6M | – | – |
| Common equity tier 1 ratio - September 30, 2026other | 12.05% | – | – |
| Total risk-based capital ratio - September 30, 2026other | 14.80% | – | – |
| Book value per share - September 30, 2026GAAP | $23.18 | – | – |
| Tangible book value per share - September 30, 2026non-GAAP | $13.52 | – | – |
Capital returns
- Cash dividend declared of $0.2150 per common share for 3Q26, compared to $0.2150 for 2Q26 and $0.2125 for 3Q25.
- Simmons did not repurchase shares under its stock repurchase program during 3Q26.
- Remaining authorization under the January 2026 stock repurchase program was approximately $161 million as of September 30, 2026.
What drove it
- Net interest income increased on a linked-quarter basis due to a $1.4 million increase in interest income and a $2.0 million decrease in interest expense.
- Management attributed margin expansion to higher loan yields, deleveraging through the run-off of lower-yielding low-relationship credits, lower customer deposit costs, use of FHLB advances instead of higher-rate brokered deposits, and one extra day in the quarter.
- The linked-quarter decline in noninterest income was attributed to lower swap fee income and a higher positive valuation adjustment on SBIC investments in 2Q26, partly offset by a $1.3 million increase in service charges on deposit accounts and a $1.2 million increase in wealth management services.
- Adjusted noninterest expense was $138.9 million, compared with $140.3 million in 2Q26, after excluding rightsizing costs, severance and early-retirement costs, professional services and accelerated prepaid expenses.
- The commercial loan pipeline totaled $1.3 billion at the end of 3Q26, while ready-to-close commercial loans totaled $455 million with a weighted average rate of 6.78 percent.
Concerns
- Reported net income declined to $47.1 million from $66.7 million in 2Q26, reflecting $43.2 million of total pre-tax impact from certain items, including $17.1 million of certain professional services, $14.2 million of branch and real estate rightsizing costs, $6.0 million of severance and early-retirement program costs, and $5.9 million of accelerated prepaid expenses.
- Total loans declined to $17.5 billion from $18.1 billion sequentially, and total deposits declined to $18.6 billion from $19.7 billion.
- Net charge-offs increased to 27 basis points from 20 basis points sequentially. Total nonperforming loans increased to $179.9 million from $166.1 million, while the nonperforming loan coverage ratio declined to 133 percent from 143 percent.
- Loans past due 30-89 days as a percentage of total loans were 30 basis points, compared to 29 basis points in 2Q26 and 11 basis points in 3Q25.
- Book value per share declined to $23.18 from $24.11 and tangible book value per share declined to $13.52 from $14.42, primarily due to an increase in accumulated other comprehensive loss reflecting higher long-term interest rates.
What to watch
- Fourth-quarter progression in adjusted noninterest expense after the 3Q26 rightsizing, severance, professional-services and accelerated-prepaid-expense items.
- Whether the commercial pipeline of $1.3 billion and ready-to-close commercial loans of $455 million convert while the company continues to prioritize profitability and relationship banking.
- Deposit mix and funding costs following the reduction of brokered deposits and increased use of short-term FHLB advances.
- Asset-quality trends, including net charge-offs, nonperforming loans, loans past due 30-89 days and reserve coverage.
- Management's strategic objectives and future financial targets to be outlined at its upcoming Investor Day in December.
Balance sheet and cash flow
- Cash and cash equivalents were $759,622 thousand at September 30, 2026, compared to $589,484 thousand at June 30, 2026 and $643,617 thousand at September 30, 2025.
- Total loans were $17,465 million and total deposits were $18,616 million at September 30, 2026.
- Other borrowings were $1.4 billion at September 30, 2026, compared to $941.3 million at June 30, 2026 and $18.8 million at September 30, 2025.
- Total stockholders' equity was $3.3 billion at September 30, 2026, compared to $3.5 billion at June 30, 2026 and $3.4 billion at September 30, 2025.
- Additional liquidity sources were $7,947,000 thousand and the uninsured, non-collateralized deposit coverage ratio was 1.7 at September 30, 2026.
Analysis
Simmons reported 3Q26 GAAP net income of $47.1 million and diluted EPS of $0.32, down from $66.7 million and $0.46 in 2Q26. The reported result included $43.2 million of total pre-tax impact from certain items. Adjusted net income rose to $79.0 million from $72.2 million, and adjusted diluted EPS increased to $0.54 from $0.50. Adjusted ROAA increased to 1.29% from 1.17%, while adjusted ROTCE increased to 15.50% from 14.37%.
Core spread income strengthened. Net interest income was $204.0 million, up $3.3 million from 2Q26 and up $17.3 million from 3Q25. Fully taxable equivalent net interest margin expanded 8 basis points sequentially to 3.92%, with loan yield at 6.20% and cost of deposits at 1.85%. Management cited repricing of lower fixed-rate back-book loans, lower customer deposit costs, balance-sheet deleveraging, FHLB advances used in place of higher-rate brokered deposits, and one extra day in the quarter.
Expense normalization was favorable, but the reported expense base was elevated by strategic and professional-services costs. GAAP noninterest expense was $182.0 million versus $147.7 million in 2Q26, while adjusted noninterest expense declined to $138.9 million from $140.3 million. The adjusted efficiency ratio improved to 53.31% from 54.26%. Noninterest income was $47.2 million, down from $47.9 million, as lower swap fee income and the prior quarter's higher positive SBIC valuation adjustment outweighed increases in deposit-service charges and wealth-management services.
The balance sheet continued to deleverage. Total loans were $17.5 billion, down from $18.1 billion, and deposits were $18.6 billion, down from $19.7 billion. The company attributed the loan decline to paydowns, early payoffs and the run-off of lower-yielding, low-relationship credits. Other borrowings increased to $1.4 billion from $941.3 million, reflecting increased short-term FHLB advance utilization. Credit measures warrant attention: net charge-offs were 27 basis points, total nonperforming loans were $179.9 million, and nonperforming assets to total assets were 78 basis points. The allowance for credit losses to loans increased to 1.37% from 1.32%.
Capital ratios remained above well-capitalized regulatory guidelines, with CET1 at 12.05% and total risk-based capital at 14.80%. However, total stockholders' equity was $3.3 billion, book value per share was $23.18, and tangible book value per share was $13.52, each lower than in 2Q26. Simmons declared a $0.2150 cash dividend and made no repurchases in 3Q26, retaining approximately $161 million of repurchase authorization. The release provided no quantitative forward guidance; management said it plans to outline strategic objectives and future financial targets at its December Investor Day.
Management, verbatim
The third quarter showcased our commitment to delivering sustainable long-term value through focused execution of several strategic initiatives designed to improve profitability and further optimize our balance sheet.
Jay Brogdon, President and CEO
Combined with disciplined loan and deposit pricing, these initiatives drove net interest margin expansion of 8 basis points to 3.92%, and drove meaningful improvements in our adjusted ROAA and adjusted ROTCE performance.
Jay Brogdon, President and CEO
Credit quality metrics remained relatively stable during the quarter, as we actively manage legacy credits and pursue early identification of potential problems. We continue strengthening reserves to buffer our already strong capital levels.
Jay Brogdon, President and CEO
Not in the filing
stated, not guessed- Quantitative forward guidance for revenue, expenses, tax rate, margins, earnings, loans, deposits, credit costs, capital or capital returns was not provided.
- Prior outlook was not provided.
- Reportable operating segment revenue was not provided.
- Gross margin was not reported.
- Operating cash flow and free cash flow were not reported.
- A consolidated effective tax rate for 3Q26 was not reported.
- Consensus estimates, analyst expectations and share-price reaction were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.