Simmons First National Corporation (NASDAQ: SFNC) reported a net loss of $562.8 million for the third quarter of 2025, compared with a net income of $54.8 million in the second quarter and $24.7 million in the third quarter of 2024. Diluted earnings per share were $(4.00), while adjusted earnings per share were $0.46. The loss was driven largely by a $801.5 million pre‑tax loss on the sale of low‑yielding investment securities, part of a balance‑sheet repositioning that also included a $326.9 million equity raise.
The company’s net interest margin (FTE) expanded to 3.50% in Q3 2025, up from 3.06% in Q2 2025, reflecting a shift to higher‑yield loans and lower‑cost deposits. Total loans stood at $17.189 billion, while total deposits were $19.838 billion, giving a loan‑to‑deposit ratio of 87%. Capital ratios remained strong, with a CET1 ratio of 11.54% and a tangible common equity ratio of 8.53%.
Adjusted earnings for the quarter were $64.9 million, up from $56.1 million in Q2 2025, driven by higher net interest income of $186.7 million and a $45.9 million adjusted non‑interest income. Provision for credit losses was $12.0 million, and the allowance for credit losses to loans ratio was 1.50%.
Management emphasized that the balance‑sheet repositioning, which involved selling $3.2 billion of low‑yield securities and using the proceeds to reduce high‑cost wholesale funding, is expected to improve future earnings. The company also highlighted ongoing margin expansion and disciplined expense management as key drivers of its profitability trajectory.
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