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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)

Rating:71Outperform
Price Target:
$21.50
▲(9.25%Upside)
Simmons 1st Nat'l's overall score reflects a mix of strengths and risks. Financial stability and strategic growth initiatives are positive, but challenges in revenue growth and recent corporate events, including a significant securities loss, weigh on the score. Valuation and earnings call sentiment remain supportive.

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 (SFNC) is a financial holding company headquartered in Pine Bluff, Arkansas. It primarily operates through its subsidiary, Simmons Bank, which provides full-service banking services to individual and corporate clients. The company offers a range of financial products and services, including personal and commercial banking, mortgage lending, wealth management, and credit cards. With a focus on community-oriented banking, Simmons Bank serves customers through its extensive network of branches across several states in the southern United States.
How the Company Makes MoneySimmons First National Corporation generates revenue primarily through interest income from its lending activities, which include personal loans, commercial loans, and mortgages. Additionally, the company earns money from non-interest income sources such as service charges on deposit accounts, mortgage banking income, trust and investment management fees, and credit card fees. The company also benefits from its wealth management and investment services, which provide advisory and asset management services to individual and institutional clients. Partnerships with other financial service providers and its strategic acquisitions further contribute to the company's revenue growth.

Simmons 1st Nat'l Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: -0.05%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call indicated strong financial performance and strategic growth initiatives, particularly in NIM improvement and loan production. However, challenges such as elevated loan payoffs and diminishing repricing opportunities on deposits were noted. Nevertheless, the positive highlights, including strong talent acquisition and unfunded loan commitments, outweighed the lowlights, suggesting a positive outlook.
Q2-2025 Updates
Positive Updates
Net Interest Margin (NIM) Improvement
The company's net interest margin hit the 3% level ahead of schedule, indicating strong financial performance in managing interest income and expenses.
Loan Pipeline and Production
The loan pipeline and production remain strong, with a focus on credit and pricing discipline. 75% of the new loan production is variable rate, which supports future NIM expansion.
Continued Talent Acquisition Success
The company is successfully acquiring talent and investing in technology, indicating strong human resource strategies and future growth potential.
Strong Unfunded Loan Commitments
The steady increase in unfunded commitments suggests favorable conditions for future loan growth into the second half of the year and into 2026.
Negative Updates
Elevated Loan Payoffs
Elevated payoffs, particularly in the construction sector, served as a headwind to loan growth, although it was within expectations.
Classified Loans Increase
There was a slight increase in classified loans within the commercial real estate sector, although the company reports no significant underlying issues.
Repricing Opportunities Diminishing
Repricing opportunities on the deposit side are becoming less compelling as the most recent Fed rate cut effects diminish.
Company Guidance
During the Simmons First National Corporation's Second Quarter 2025 Earnings Call, the company emphasized its positive outlook for the remainder of the year and beyond, despite not providing specific guidance updates in the call. Key financial metrics were highlighted, including a net interest margin (NIM) that surpassed the 3% mark ahead of schedule, driven by "repricing dynamics" on loans and a strategic remixing of deposits from higher cost to lower cost options. The call also addressed the company's disciplined approach to loan growth, with a focus on maintaining credit quality and pricing discipline, resulting in a strong loan pipeline and production. Unfunded commitments showed a steady increase, suggesting favorable conditions for loan growth into 2026. Additionally, the company continues to prioritize talent acquisition and retention, leveraging disruptions in the market to attract skilled personnel, particularly in competitive regions like Nashville and Texas. The management expressed confidence in achieving their performance targets, buoyed by robust employee engagement and a commitment to continuous improvement in profitability.

Simmons 1st Nat'l Financial Statement Overview

Summary
Simmons 1st Nat'l demonstrates financial stability with strong margins and solid cash flow metrics. However, the decline in revenue growth and profitability margins, along with a slight reduction in ROE, highlight areas of concern. The balance sheet remains stable with modest leverage, but the company should focus on improving revenue growth and profitability to enhance overall financial performance.
Income Statement
65
Positive
Simmons 1st Nat'l has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 91.26%. However, the net profit margin has declined to 19.63% in TTM, down from 20.02% in the previous year, indicating a slight reduction in profitability. Revenue has shown a negative growth rate of -2.35% in TTM, suggesting challenges in maintaining revenue levels. The EBIT margin has also decreased to 39.92% from 45.57% in 2024. Overall, while margins are strong, the declining revenue and profitability trends present concerns.
Balance Sheet
70
Positive
The balance sheet of Simmons 1st Nat'l indicates solid stability with a debt-to-equity ratio of 0.37 in TTM, reflecting conservative leverage. The return on equity (ROE) has decreased to 4.14% in TTM from 4.33% in 2024, suggesting reduced efficiency in generating returns. The equity ratio is stable at 13.18%, indicating a healthy proportion of equity financing. Overall, the balance sheet reflects financial stability, but the decline in ROE suggests potential areas for improvement in profitability.
Cash Flow
75
Positive
The cash flow statement portrays a strong position with a free cash flow of $355.31 million in TTM and a free cash flow growth rate of -6.60%. The operating cash flow to net income ratio is robust at 2.74 in TTM, indicating strong cash generation from operations. The free cash flow to net income ratio is 2.43, highlighting efficient conversion of earnings into cash. Despite a decline in free cash flow growth, the company maintains solid cash flow metrics overall.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.43B1.45B1.34B1.02B847.94M980.92M
Gross Profit714.16M715.97M750.42M861.07M799.62M785.96M
EBITDA209.85M217.42M248.48M355.52M379.68M368.83M
Net Income146.21M152.69M175.06M256.41M271.16M254.90M
Balance Sheet
Total Assets26.79B26.88B27.35B27.46B24.72B22.36B
Cash, Cash Equivalents and Short-Term Investments3.13B2.08B3.77B4.54B8.77B6.95B
Total Debt1.30B1.15B1.41B1.39B1.91B2.02B
Total Liabilities23.26B23.35B23.92B24.19B21.48B19.38B
Stockholders Equity3.53B3.53B3.43B3.27B3.25B2.98B
Cash Flow
Free Cash Flow355.31M380.42M507.89M286.93M229.92M189.27M
Operating Cash Flow401.13M425.92M540.98M322.20M277.78M202.54M
Investing Cash Flow400.20M369.51M-183.59M-946.23M-2.54B1.19B
Financing Cash Flow-770.35M-722.15M-425.42M-344.50M438.46M1.08B

Simmons 1st Nat'l Technical Analysis

Technical Analysis Sentiment
Positive
Last Price19.68
Price Trends
50DMA
19.20
Positive
100DMA
19.19
Positive
200DMA
20.81
Negative
Market Momentum
MACD
0.18
Positive
RSI
53.19
Neutral
STOCH
32.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFNC, the sentiment is Positive. The current price of 19.68 is below the 20-day moving average (MA) of 19.86, above the 50-day MA of 19.20, and below the 200-day MA of 20.81, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 53.19 is Neutral, neither overbought nor oversold. The STOCH value of 32.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFNC.

Simmons 1st Nat'l Risk Analysis

Simmons 1st Nat'l disclosed 48 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
77
Outperform
$2.38B9.969.77%3.86%4.62%2.69%
73
Outperform
$2.89B11.298.98%3.12%-2.81%51.85%
73
Outperform
$2.66B13.2521.98%4.15%-5.14%-0.94%
72
Outperform
$2.68B16.9912.98%2.87%11.80%23.34%
71
Outperform
$2.85B15.554.57%4.29%-0.32%5.65%
70
Outperform
$2.68B15.497.92%2.86%8.35%14.42%
68
Neutral
$17.21B11.209.71%3.57%11.12%-4.52%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SFNC
Simmons 1st Nat'l
19.68
-0.74
-3.62%
BKU
BankUnited
38.17
1.34
3.64%
CVBF
Cvb Financial
19.27
0.99
5.42%
FFBC
First Financial Bancorp
24.86
-1.47
-5.58%
PRK
Park National
165.22
-8.90
-5.11%
TOWN
TowneBank
35.70
3.27
10.08%

Simmons 1st Nat'l Corporate Events

Private Placements and FinancingFinancial Disclosures
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.

Private Placements and Financing
Simmons 1st Nat’l Announces Major Stock Offering
Positive
Jul 23, 2025

On July 21, 2025, Simmons First National Corporation entered into an underwriting agreement to issue and sell 18,653,000 shares of its Class A common stock, with the offering closing on July 23, 2025. The company expects to generate approximately $326.9 million in net proceeds, which it plans to use for general corporate purposes, including potential investments in Simmons Bank to support balance sheet repositioning and growth.

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.

Private Placements and FinancingBusiness Operations and Strategy
Simmons 1st Nat’l Announces $300M Stock Offering
Positive
Jul 22, 2025

On July 21, 2025, Simmons First National Corporation announced the pricing of its public offering of 16,220,000 shares of Class A common stock at $18.50 per share, totaling approximately $300 million. The offering, expected to close on July 23, 2025, aims to support general corporate purposes, including potential balance sheet repositioning and growth, reflecting Simmons’ strategic focus on enhancing its financial position and market operations.

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.

Business Operations and StrategyFinancial Disclosures
Simmons 1st Nat’l Reports Strong Q2 2025 Results
Positive
Jul 17, 2025

On July 17, 2025, Simmons First National Corporation reported its second quarter 2025 financial results, highlighting strong revenue growth and improved profitability measures. The company achieved a net interest margin above 3 percent for the fifth consecutive quarter, with increased loan yields and decreased deposit costs. Despite muted overall balance sheet growth, Simmons saw a significant increase in low-cost customer deposits and maintained stable asset quality metrics. The company remains focused on organic growth amid ongoing tariff volatility affecting future interest rates and economic conditions.

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.

Executive/Board ChangesShareholder Meetings
Simmons 1st Nat’l Holds Annual Shareholder Meeting
Neutral
May 8, 2025

On May 7, 2025, Simmons First National Corporation held its Annual Meeting of Shareholders in Little Rock, Arkansas, where key corporate governance matters were addressed. The meeting resulted in the election of fourteen directors, approval of executive compensation, and ratification of Forvis Mazars, LLP as the independent auditors for the fiscal year ending December 31, 2025, reflecting shareholder support for the board’s decisions.

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: Jul 26, 2025