Simmons First National net worth reflects its strong financial standing in the banking industry.
From key financial metrics to asset growth and revenue streams, Ando Money dives deep into the latest performance data to help you understand how this bank operates in 2024.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Simmons Bank |
| Full Name | Simmons First National Corporation |
| Traded as | NASDAQ: SFNC |
| ISIN | N/A |
| Founded | 1903 |
| Founders | N/A |
| Country/Territory | United States |
| Headquarters | Pine Bluff, Arkansas |
| Chief Executive Officer | Bob Fehlman |
| Number of Employees | 2,989 |
| Market Cap | $2.60 billion |
| Total Assets | $27.37 billion |
| Total Equity | $3.44 billion |
| Revenue | $195.1 million |
| Net Income | $38.9 million |
What is the Net Worth/Market Cap of Simmons First National in 2024?
As of September 2024, Simmons First National boasts a market capitalization of $2.60 billion.
This value places it among the mid-sized banking institutions in the U.S. With a diversified portfolio of loans, deposits, and other financial products, the bank has maintained steady growth in an increasingly competitive landscape.
When comparing Simmons First National to other banks in the industry, it stands on solid ground but falls short of the mega banks with trillions in assets.
However, its regional focus and strong customer base make it a reliable financial institution. Interested in learning more about the largest financial institutions?
Here’s a great resource that highlights the largest banks in the world: leading banks globally.
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Financial Performance Overview
Key Financial Metrics Impacting Valuation
When it comes to Simmons First National’s valuation, total assets and liabilities play a critical role. As of the first quarter of 2024, Simmons holds $27.37 billion in total assets.
This includes its broad loan portfolio and investment securities. The bank’s total liabilities are balanced against these assets, ensuring financial stability.
Another important metric is the shareholders’ equity, which stands at $3.44 billion. This figure represents the ownership stake shareholders have in the company after all debts and liabilities are accounted for.
The bank’s performance in the loan and deposit base also affects its overall value. Simmons reported strong growth in its loan portfolio, with $17.0 billion in total loans by the first quarter of 2024.
Deposits also saw a slight increase to $22.4 billion, allowing Simmons to maintain a favorable loan-to-deposit ratio. Together, these metrics form a strong foundation for Simmons’ overall market valuation.
Revenue Streams
Simmons generates revenue through several streams, with interest income from loans being the most significant.
By leveraging its commercial, real estate, and consumer loan portfolios, the bank brought in $151.9 million in net interest income during the first quarter of 2024.
The interest income from loans is largely driven by the 6.24% yield on loans, a slight increase compared to the previous quarter.
In addition to interest income, the bank also benefits from non-interest income. This includes service charges on deposit accounts, wealth management fees, and income from mortgage lending.
For example, service charges contributed $12 million, while debit and credit card fees added $8.2 million in the first quarter. Non-interest income plays a vital role in diversifying the bank’s revenue streams.
Loan Portfolio and Financial Growth
The loan portfolio is at the heart of Simmons First National’s financial strategy. By the end of the first quarter in 2024, the bank’s total loans stood at $17 billion, reflecting consistent growth in its commercial and real estate loan categories.
The commercial loans segment, in particular, shows strong demand, with $381 million in ready-to-close commercial loans at an average rate of 8.38%. This marks the third consecutive quarter of pipeline expansion.
The bank’s focus on prudent loan underwriting standards ensures it balances growth with risk management.
Furthermore, the consumer loan segment continues to be robust, with credit cards and other consumer loans performing well. This careful expansion of the loan portfolio contributes directly to the bank’s financial health and long-term growth potential.
Role of Deposits in the Financial Structure
Deposits remain a key pillar in the bank’s financial structure. Simmons Bank reported $22.4 billion in total deposits at the end of the first quarter in 2024.
The majority of these are interest-bearing transaction accounts and savings accounts, which have shown steady growth over the past few quarters.
Non-interest-bearing deposits, while slightly down, still contribute $4.7 billion to the total deposit base.
Simmons’ loan-to-deposit ratio of 76% reflects the bank’s efficient use of its deposit base to fund loans. This ratio is crucial because it indicates how well the bank is leveraging deposits to drive profitability.
By maintaining a stable loan-to-deposit ratio, Simmons ensures that it has enough liquidity to meet customer needs while maximizing returns from lending activities.
Asset Quality and Credit Losses
Simmons has maintained strong asset quality, but like most banks, it faces challenges with non-performing loans (NPLs).
As of the first quarter of 2024, the bank’s NPL ratio was 0.63%, a slight increase from 0.50% in the previous quarter. Despite this, the bank’s coverage ratio remains high, with allowances for credit losses at 1.34% of total loans.
The provision for credit losses exceeded net charge-offs by $2.1 million, further strengthening the bank’s financial resilience.
Non-performing assets, which include foreclosed properties and other real estate owned, remain low at 0.41% of total assets. These metrics highlight Simmons’ disciplined approach to risk management.
Non-Interest Expenses Impact
While revenue growth is essential, managing non-interest expenses is equally critical. Simmons reported $139.9 million in non-interest expenses during the first quarter of 2024, down from the previous quarter.
A large portion of these expenses comes from salaries and employee benefits, which totaled $72.7 million. Another significant expense was the FDIC special assessment of $1.6 million, which was substantially lower than the previous quarter’s charge.
The bank’s focus on cost management, including branch right-sizing and other operational efficiencies, has helped reduce overall expenses.
By keeping costs in check, Simmons improves its efficiency ratio, which measures how well the bank controls costs relative to its revenue generation.
As of the first quarter, the adjusted efficiency ratio stood at 66.42%, showing improvement from the previous quarter.
Capital and Liquidity Strength
Simmons First National maintains a strong capital position, which is reflected in its regulatory capital ratios.
The bank’s common equity tier 1 (CET1) ratio was 11.95% at the end of the first quarter of 2024, well above regulatory requirements.
Additionally, the total risk-based capital ratio stood at 14.43%, ensuring that Simmons can weather potential financial challenges.
The bank also reported robust liquidity levels, with additional liquidity sources totaling $11.45 billion. This liquidity cushion provides flexibility for growth and ensures the bank can meet any unexpected funding needs.
Furthermore, Simmons continues to reward shareholders with consistent dividends, having increased its quarterly dividend by 5% in 2024.
FAQs about Simmons First National
What services does the bank offer?
It provides personal and commercial banking, loans, wealth management, and investment services. Customers can access checking accounts, mortgage loans, and treasury management.
Who is the CEO of Simmons First National?
The CEO is Bob Fehlman, responsible for driving growth and managing risk while focusing on profitability and customer base expansion.
Where is Simmons First National headquartered?
The bank’s headquarters are in Pine Bluff, Arkansas, serving as the central hub for its regional operations.
When was it founded?
It was founded in 1903 and has grown from a local bank into a regional financial leader.
How many employees does it have?
The bank employs 2,989 staff members across its branches and departments.
What types of loans does it provide?
It offers commercial loans, mortgage loans, auto loans, and personal loans with flexible terms and competitive rates.
How does it generate revenue?
Revenue comes from interest income on loans, non-interest income like service fees, and its investment securities portfolio.
What is its loan-to-deposit ratio?
Its loan-to-deposit ratio is 76%, reflecting efficient use of deposits to fund loans.
Conclusion
Simmons First National’s financial performance speaks for itself, but we’d love to hear what you think. Leave your comments, share the post, or explore more insights on largest banks in America over at andomoney.com.
