Simmons First National Corporation Q3 FY2025 earnings call

• Restructuring completed in the third quarter, shifting focus to business structure. • Focus on organic growth, including talent acquisition and operational excellence. • Margin analysis: September net interest margin 3.76%, fourth quarter expected at or above 3.65%, with tailwinds from loan and deposit book repricing. • Deposit base: Brokered deposits reduced, focus on growing core deposits. • Expense management: Balanced view with ongoing efficiency opportunities and talent acquisition investment. • Credit outlook: Benign quarter, work ongoing to resolve specific loans, proactive with lower quality loans.

No detailed product segment financial performance and revenue contribution % provided in the transcript.

• Fourth quarter margin expected at or above 3.65%. • Expect margin to be defensible over next 12 months with hedging program and balance sheet dynamics. • Loan growth outlook: Low single-digit growth with potential upside from restructuring, focus on risk-adjusted returns. • Expense growth: Balanced view with efficiency opportunities and talent investment. • Credit: Work toward resolution of specific loans, proactive with lower quality loans.

• Interest rate changes impacting margin and NII. • Intense competition affecting pricing and growth. • Deposit beta management challenges with rate cuts. • Uncertainty in credit quality due to broader economic factors.

Q: What are key strategic initiatives post-restructuring?

A: Focus on business structure, organic growth (talent acquisition, operational excellence).

Q: Thoughts on loan growth and margin trajectory?

A: Low single-digit loan growth with risk-adjusted returns, margin defensible with balance sheet dynamics and hedging.

Q: Deposit beta trends and outlook?

A: Cumulative beta 65% so far, expected to moderate with rate cuts and competitive dynamics.

Q: Expense growth outlook?

A: Balanced view with efficiency opportunities and talent investment.

Q: Credit outlook?

A: Benign quarter, work ongoing to resolve specific loans, proactive with lower quality loans.

Q: Broker deposits and loan growth targets?

A: Goal to reduce brokered deposits to 0 via core deposit growth, loan growth outlook positive with risk-adjusted focus.

Q: Competitive dynamics in loan pricing?

A: Concerned about irrational pricing, focus on risk-adjusted returns.

Q: Deposit spot rate and CD repricing?

A: September 30 spot rate not readily available, CD repricing benefit expected to moderate with rate cuts and competition.