Simmons First National Corporation — Third Quarter 2026 Earnings Summary

Financial Performance

• Net income was $47.1 million, compared to $66.7 million in the second quarter of 2026 and a net loss of $562.8 million in the third quarter of 2025.
• Diluted earnings per share (EPS) were $0.32, compared to $0.46 in the prior quarter and $(4.00) in the prior year quarter.
• Adjusted net income was $79.0 million, compared to $72.2 million in the second quarter of 2026 and $64.9 million in the third quarter of 2025.
• Adjusted diluted EPS was $0.54, compared to $0.50 in the prior quarter and $0.46 in the prior year quarter.
• Total revenue was $251.2 million, compared to $248.6 million in the second quarter of 2026.
• Pre-provision net revenue (PPNR) was $69.1 million, compared to $100.8 million in the second quarter of 2026.
• Adjusted PPNR was $112.3 million, compared to $108.2 million in the second quarter of 2026 and $92.8 million in the third quarter of 2025.
• Net interest income was $204.0 million, up 7% annualized from the second quarter of 2026 and up 9% from the third quarter of 2025.
• Net interest margin (FTE) increased 8 basis points to 3.92% from 3.84% in the second quarter of 2026 and 42 basis points from 3.50% in the third quarter of 2025.
• Loan yields increased 5 basis points to 6.20% (FTE) from 6.15% in the second quarter of 2026.
• Cost of deposits decreased 8 basis points to 1.85% from 1.93% in the second quarter of 2026.
• Noninterest expense 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.
• Adjusted noninterest expense was $138.9 million, compared to $140.3 million in the second quarter of 2026 and $139.7 million in the third quarter of 2025.
• The efficiency ratio was 71.59%, compared to 58.72% in the second quarter of 2026 and (25.11)% in the third quarter of 2025.
• The adjusted efficiency ratio was 53.31%, compared to 54.26% in the second quarter of 2026 and 57.72% in the third quarter of 2025.
• Provision for credit losses was $12.2 million, compared to $17.4 million in the second quarter of 2026 and $15.2 million in the third quarter of 2025.
• Net charge-offs totaled $11.9 million, resulting in a net charge-off ratio of 27 basis points, compared to 20 basis points in the second quarter of 2026 and 25 basis points in the third quarter of 2025.
• Return on average assets (ROAA) was 0.77%, compared to 1.09% in the second quarter of 2026 and (8.96)% in the third quarter of 2025.
• Return on average common equity (ROE) was 5.37%, compared to 7.69% in the second quarter of 2026 and (66.29)% in the third quarter of 2025.
• Adjusted ROAA was 1.29%, compared to 1.17% in the second quarter of 2026 and 1.03% in the third quarter of 2025.
• Adjusted return on average tangible common equity (ROTCE) was 15.50%, compared to 14.37% in the second quarter of 2026 and 13.62% in the third quarter of 2025.
• Total assets were $24.07 billion, compared to $24.78 billion at the end of the second quarter of 2026.
• Total loans were $17.47 billion, compared to $18.06 billion at the end of the second quarter of 2026.
• Total deposits were $18.62 billion, compared to $19.73 billion at the end of the second quarter of 2026.
• Total stockholders' equity was $3.35 billion, compared to $3.48 billion at the end of the second quarter of 2026.
• Book value per share was $23.18, compared to $24.11 at the end of the second quarter of 2026.
• Tangible book value per share was $13.52, compared to $14.42 at the end of the second quarter of 2026.

Guidance and Future Outlook

• Management plans to further outline strategic objectives and future financial targets at an upcoming Investor Day in December.
• The company intends to remain relentless in its commitment to generating sound and profitable growth by simplifying and focusing its business.
• Efficiencies gained from business simplification are expected to more than fund ongoing investments supporting high-value organic growth.

Business Segments and Product Lines

• Total loans decreased on a linked quarter basis due to higher levels of paydowns, early payoffs, and the run-off of lower yielding, low relationship credits.
• Unfunded loan commitments were $4.36 billion at the end of the third quarter of 2026, relatively unchanged from the second quarter.
• The commercial loan pipeline totaled $1.3 billion at the end of the third quarter of 2026.
• Ready-to-close commercial loans totaled $455 million with a weighted average rate of 6.78%.
• Noninterest income was $47.2 million, driven by service charges on deposit accounts ($13.6 million), wealth management services ($11.4 million), and debit/credit card services ($8.7 million).
• Wealth management services income increased $1.2 million compared to the prior quarter.
• Service charges on deposit accounts increased $1.3 million compared to the prior quarter.
• The decrease in noninterest income was primarily due to a decrease in swap fee income and a higher positive valuation adjustment on Small Business Investment Company (SBIC) investments in the prior quarter.
• Full-time equivalent employees decreased to 2,712 from 2,909 in the second quarter of 2026.
• The number of financial centers remained at 220.

Market and Competitive Landscape

• The company operates 220 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas.
• Simmons Bank was recognized by Newsweek as one of America's Best Regional Banks and Credit Unions 2026, by Forbes as one of America's Best-In-State Companies 2026, and by American Banker as one of the Top Performing Banks 2026 with $10 billion to $50 billion of assets.
• The company paid cash dividends for 117 consecutive years.

Risks and Challenges

• Nonperforming loans increased to $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, reflecting normal credit migration.
• Loans past due 30-89 days were 30 basis points of total loans at the end of the third quarter of 2026, compared to 29 basis points in the second quarter.
• The allowance for credit losses on loans was $238.5 million, or 1.37% of total loans, compared to 1.32% in the second quarter and 1.50% in the third quarter of 2025.
• The nonperforming loan coverage ratio ended the quarter at 133%, compared to 143% in the second quarter and 168% in the third quarter of 2025.
• Total nonperforming assets were $187.0 million, or 78 basis points of total assets, compared to 72 basis points in the second quarter and 66 basis points in the third quarter of 2025.
• Provision expense exceeded net charge-offs by $14.1 million for the first nine months of 2026.
• The decrease in book value per share was primarily due to an increase in accumulated other comprehensive loss reflecting higher long-term interest rates.
• Total deposits decreased due to balance sheet deleveraging of higher rate deposits, seasonal decreases in public fund deposits, and reduced utilization of brokered deposits.
• Other borrowings increased to $1.4 billion, reflecting increased utilization of short-term FHLB advances given favorable pricing.

Management Commentary and Tone

• President and CEO Jay Brogdon stated the third quarter showcased a commitment to delivering sustainable long-term value through focused execution of strategic initiatives to improve profitability and optimize the balance sheet.
• Management highlighted reductions in noninterest expenses and the run-off of back-book loans and deposits with low relationship value.
• Management noted that disciplined loan and deposit pricing drove net interest margin expansion and improvements in adjusted ROAA and adjusted ROTCE.
• Management stated that credit quality metrics remained relatively stable while actively managing legacy credits and pursuing early identification of potential problems.
• Management indicated they continue strengthening reserves to buffer strong capital levels.

Other Key Points

• A cash dividend of $0.2150 per share was declared for the third quarter of 2026, unchanged from the second quarter and up from $0.2125 in the third quarter of 2025.
• No shares were repurchased under the stock repurchase program during the third quarter of 2026.
• The remaining authorization under the 2026 stock repurchase program was approximately $161 million as of September 30, 2026.
• Certain items impacting earnings included $14.2 million in branch/real estate rightsizing costs, $6.0 million in severance/early retirement program costs, $17.1 million in certain professional services, and $5.9 million in accelerated prepaid expenses.
• In the third quarter of 2025, noninterest income included a loss on the sale of securities totaling $801.5 million.
• The company maintains regulatory capital ratios significantly above "well-capitalized" guidelines, with a Common Equity Tier 1 (CET1) ratio of 12.05% and a Total risk-based capital ratio of 14.80%.
• A conference call to review results was scheduled for October 16, 2026.