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Simmons First National (SFNC)
NASDAQ:SFNC
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Simmons 1st Nat'l (SFNC) AI Stock Analysis

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SFNC

Simmons 1st Nat'l

(NASDAQ:SFNC)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
$21.50
▲(11.05% Upside)
Simmons 1st Nat'l's overall stock score is driven by strong financial performance and positive earnings call sentiment. The company's profitability and stable financial position are significant strengths, while the earnings call highlighted improvements in net interest margin and loan production. Technical analysis shows mixed signals, and valuation metrics suggest the stock is reasonably priced with an attractive dividend yield.

Simmons 1st Nat'l (SFNC) vs. SPDR S&P 500 ETF (SPY)

Simmons 1st Nat'l Business Overview & Revenue Model

Company DescriptionSimmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. It offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; insurance products; and securities and investment services. The company also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. As of January 27, 2022, the company operated through 199 financial centers in Arkansas, Missouri, Tennessee, Texas, Oklahoma, and Kansas. Simmons First National Corporation was founded in 1903 and is headquartered in Pine Bluff, Arkansas.
How the Company Makes MoneySimmons First National Corporation generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from various banking services. The key revenue streams include interest earned on loans provided to customers, such as commercial loans, personal loans, and mortgages. Additionally, SFNC earns non-interest income through fees for services such as account maintenance, ATM transactions, wealth management, and mortgage origination. The company has established significant partnerships with other financial institutions and businesses, enhancing its service offerings and expanding its customer base. Factors contributing to its earnings include effective risk management, a diverse loan portfolio, and a strategic focus on growth in its target markets.

Simmons 1st Nat'l Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive sentiment with significant improvements in net interest margin and strong loan production, alongside successful talent management. Although there are challenges such as elevated loan payoffs and reduced deposit repricing opportunities, the positive elements outweigh the negatives.
Q2-2025 Updates
Positive Updates
Net Interest Margin (NIM) Improvement
The company achieved a NIM of 3% ahead of schedule, with continued opportunities for expansion from repricing dynamics on the asset side, particularly on lower rate fixed-rate loans.
Strong Loan Pipeline and Production
Despite elevated payoffs, the loan pipeline and production remain strong, with a shift towards variable rate loans and a focus on maintaining pricing discipline.
Successful Talent Acquisition and Engagement
The company continues to successfully recruit and retain talent, emphasizing investments in talent and technology, and is preparing for potential opportunities arising from industry disruptions.
Positive Trends in Deposit Repricing
The company reported positive remixing trends from higher-cost deposits to lower-cost deposits, contributing to improved financial metrics.
Negative Updates
Elevated Loan Payoffs
Loan payoffs were a headwind to growth this quarter, particularly impacted by construction side paydowns and permanent market financings.
Challenges in Deposit Repricing Opportunities
The repricing opportunity on the deposit side is decreasing, with the rate of CDs maturing over the next quarters coming down, which may limit future repricing benefits.
Slight Increase in Classified Assets
The quarter saw a slight increase in classified assets, although overall credit quality metrics like non-performers and past dues remain stable.
Company Guidance
During the Simmons First National Corporation's Q2 2025 earnings call, the executive team did not provide specific updated guidance for the latter half of the year, maintaining their tradition of offering outlook commentary primarily in January. However, they expressed confidence in their ability to achieve ambitious performance targets, highlighting ongoing trends in net interest income (NII) and net interest margin (NIM), which exceeded expectations. The NIM has reached the 3% level ahead of schedule, with further expansion anticipated due to asset repricing, particularly from lower rate fixed-rate loans, and strong loan pipeline and production. On the deposit side, a remixing from higher to lower-cost deposits was noted, although the opportunity for further repricing is diminishing as recent Fed rate cuts take effect. Additionally, the company indicated a stable outlook for payoffs, expecting a consistent environment in the second half of the year, while emphasizing ongoing investments in talent and technology to drive future growth.

Simmons 1st Nat'l Financial Statement Overview

Summary
Simmons 1st Nat'l demonstrates strong profitability and a stable financial position despite recent revenue challenges. The company maintains healthy profit margins and a conservative leverage profile, which supports financial stability. Cash flow metrics reveal some areas for improvement in cash generation, but overall, the financial health of the company remains solid with a focus on maintaining profitability and managing leverage effectively.
Income Statement
65
Positive
Simmons 1st Nat'l has shown a decline in revenue growth with a negative rate of -25.71% in the TTM period, indicating challenges in maintaining sales momentum. However, the company maintains a solid gross profit margin of 49.86% and a net profit margin of 15.03%, reflecting efficient cost management. The EBIT and EBITDA margins are also healthy at 17.02% and 20.18% respectively, suggesting operational efficiency. Despite the revenue decline, profitability metrics remain strong, which is a positive indicator.
Balance Sheet
70
Positive
The company has a manageable debt-to-equity ratio of 0.29, indicating a conservative approach to leverage. Return on equity is modest at 4.53%, suggesting moderate profitability relative to shareholder equity. The equity ratio stands at 13.29%, indicating a stable capital structure with a significant portion of assets financed by equity. Overall, the balance sheet reflects financial stability with low leverage risk.
Cash Flow
60
Neutral
Simmons 1st Nat'l experienced a slight decline in free cash flow growth at -1.79% in the TTM period, which could indicate cash generation challenges. However, the operating cash flow to net income ratio is low at 0.018, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is strong at 0.89, indicating that a significant portion of earnings is converted into free cash flow. While cash flow generation shows some weaknesses, the conversion of earnings to cash remains robust.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.07B1.45B1.34B1.02B847.94M980.92M
Gross Profit531.47M715.97M750.42M861.07M799.62M785.96M
EBITDA215.06M217.42M248.48M355.52M379.68M368.83M
Net Income160.22M152.69M175.06M256.41M271.16M254.90M
Balance Sheet
Total Assets26.69B26.88B27.35B27.46B24.72B22.36B
Cash, Cash Equivalents and Short-Term Investments2.80B2.08B3.77B4.54B8.77B6.95B
Total Debt1.03B1.15B1.41B1.39B1.91B2.02B
Total Liabilities23.14B23.35B23.92B24.19B21.48B19.38B
Stockholders Equity3.55B3.53B3.43B3.27B3.25B2.98B
Cash Flow
Free Cash Flow348.95M380.42M507.89M286.93M229.92M189.27M
Operating Cash Flow392.71M425.92M540.98M322.20M277.78M202.54M
Investing Cash Flow533.57M369.51M-183.59M-946.23M-2.54B1.19B
Financing Cash Flow-856.15M-722.15M-425.42M-344.50M438.46M1.08B

Simmons 1st Nat'l Technical Analysis

Technical Analysis Sentiment
Negative
Last Price19.36
Price Trends
50DMA
19.80
Negative
100DMA
19.39
Negative
200DMA
19.92
Negative
Market Momentum
MACD
-0.15
Positive
RSI
35.96
Neutral
STOCH
16.54
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFNC, the sentiment is Negative. The current price of 19.36 is below the 20-day moving average (MA) of 20.06, below the 50-day MA of 19.80, and below the 200-day MA of 19.92, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 35.96 is Neutral, neither overbought nor oversold. The STOCH value of 16.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFNC.

Simmons 1st Nat'l Risk Analysis

Simmons 1st Nat'l disclosed 49 risk factors in its most recent earnings report. Simmons 1st Nat'l reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Simmons 1st Nat'l Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$3.16B16.3010.34%3.10%11.95%14.53%
75
Outperform
$3.10B19.443.54%4.58%30.52%-21.64%
72
Outperform
$2.90B11.338.74%3.11%-2.80%51.85%
70
Neutral
$3.02B29.065.61%1.32%-5.80%-22.11%
69
Neutral
$2.88B15.437.56%2.92%8.34%14.44%
68
Neutral
$2.85B15.534.57%4.38%-0.30%6.05%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SFNC
Simmons 1st Nat'l
19.17
-1.20
-5.89%
BKU
BankUnited
38.16
4.11
12.07%
CBU
Community Bank System
59.00
4.35
7.96%
TOWN
TowneBank
34.57
3.54
11.41%
WSBC
WesBanco
31.93
4.36
15.81%
FBK
FB Financial
55.74
11.28
25.37%

Simmons 1st Nat'l Corporate Events

Private Placements and Financing
Simmons 1st Nat’l Completes $325M Subordinated Notes Offering
Neutral
Sep 12, 2025

On September 12, 2025, Simmons First National Corporation successfully completed its public offering of $325 million in subordinated notes, which are intended to qualify as Tier 2 capital for regulatory purposes. The proceeds, approximately $321.3 million after expenses, will be used to repay existing notes due in 2028 and for general corporate purposes, potentially impacting the company’s financial strategy and stakeholder interests.

The most recent analyst rating on (SFNC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Simmons 1st Nat’l stock, see the SFNC Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Simmons 1st Nat’l Announces $325M Notes Offering
Neutral
Sep 9, 2025

On September 9, 2025, Simmons First National Corporation announced the pricing of a $325 million offering of 6.25% Fixed-to-Floating Rate Subordinated Notes due 2035. The proceeds from this offering, expected to be approximately $321.3 million, will be used to repay the company’s outstanding $330 million principal amount of 5.00% Fixed-to-Floating Rate Subordinated Notes due 2028 and for general corporate purposes. The offering is part of a strategic financial move to manage debt and optimize corporate finances.

The most recent analyst rating on (SFNC) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Simmons 1st Nat’l stock, see the SFNC Stock Forecast page.

Business Operations and Strategy
Simmons 1st Nat’l Enhances Officer Life Insurance Benefits
Positive
Aug 6, 2025

On August 1, 2025, Simmons Bank increased the life insurance benefits for certain officers under its Split-Dollar Life Insurance Plan. James ‘Jay’ Brogdon’s benefit was raised to $1,400,000, while George Makris III’s benefit was increased to $800,000, reflecting the company’s commitment to enhancing its employee benefits package.

The most recent analyst rating on (SFNC) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Simmons 1st Nat’l stock, see the SFNC Stock Forecast page.

Executive/Board Changes
Simmons 1st Nat’l Announces CEO Retirement
Neutral
Aug 4, 2025

On July 30, 2025, Simmons First National Corporation announced the retirement of George A. Makris, Jr. as Chairman and CEO, effective December 31, 2025. James M. Brogdon will assume the roles of President and CEO on January 1, 2026, while Marty D. Casteel will become Chairman. Makris’ leadership saw significant growth and strategic transformation, and the company is confident in Brogdon’s ability to continue building value for stakeholders.

The most recent analyst rating on (SFNC) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Simmons 1st Nat’l stock, see the SFNC Stock Forecast page.

Financial DisclosuresPrivate Placements and Financing
Simmons 1st Nat’l Sells Securities, Records Loss
Negative
Jul 25, 2025

On July 23, 2025, Simmons First National Corporation completed a significant financial maneuver by reclassifying its held-to-maturity investment securities to available for sale and subsequently selling approximately $3.2 billion worth of these securities to Morgan Stanley & Co., LLC for about $2.4 billion. This transaction resulted in an estimated after-tax loss of $604 million, which will be recorded in the third quarter of 2025. Additionally, the company conducted a public offering of 18,653,000 shares of its Class A common stock, raising approximately $326.9 million after expenses, with Morgan Stanley & Co., LLC serving as the underwriter.

The most recent analyst rating on (SFNC) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Simmons 1st Nat’l stock, see the SFNC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 23, 2025