Simmons First Ntl Reports Q2 2026 Results: Full Earnings Call Transcript

Simmons First Ntl (NASDAQ: SFNC ) released second-quarter financial results and hosted an earnings call on Friday.

Read the complete transcript below.

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The full earnings call is available at Summary Simmons First Ntl reported a strong focus on growing high-quality core customers, with checking accounts increasing over 1% year over year.

The company is experiencing fierce competition in deposit markets, but remains optimistic due to strategic initiatives and recent loan production at near four-year highs.

Loan growth is projected to be in the low to mid-single digits for the year, with a current annualized growth rate of 7%, despite seasonal fluctuations.

Strategically, the company is investing in talent and technology, with a focus on self-funding these investments through savings from initiatives like reducing square footage by 2.5% this quarter.

Simmons First Ntl is committed to maintaining a disciplined approach to credit and pricing, with a conservative outlook on net charge-offs remaining below 25 basis points for the year.

Management highlighted success in CNI and CRE loans, emphasizing full relationship banking as a key to attractive returns.

They remain comfortable at the top end of their net interest income growth guidance of 9-11% for the year.

The company's capital position allows for opportunistic share repurchases, with a focus on prioritizing organic growth investments.

Full Transcript Daniel Hobbs, Chief Financial Officer at Simmons Bank We've had a little bit of success there, but not a ton.

So we're willing to let those go off at high prices.

And then public funds is very seasonal and you typically see that this time of year.

We're not losing any customers there.

It's just seasonal outflows.

And then if you think about just the wholesale funding, we're really just taking a capitalistic approach to how we think about broker deposits and FHLB funding.

And you will see that we've kind of moved more into FHLB this quarter just because the spread of that price is material enough for us to do that.

And we will continue to be opportunistic and flexible around that.

We're short duration in both of those.

And so that's how we're thinking about that.

And just as we go forward again, our focus on growing high quality core customers is our biggest focus.

One last thing, as you think about for customers, we grew checking accounts over 1% year over year and linked quarter.

So that's an indication of some of the things that we're doing that are working and start to pay off.

And we'll be doubling down on those things over the next 12, 24 months.

Jay Brogdon, President Hey David, I'll jump in.

This is Jay just with one other incremental comment.

One of the things in your question that you alluded to is just what's the competitive environment out there? And so all of the things Daniel said and what I would say unsurprisingly is that deposit competition is very, very fierce.

And our outlook is that that's going to continue.

We saw that throughout the second quarter.

We've seen that for a couple of quarters now and really expect that to continue.

And so when I think about all of the kind of underlying fundamentals in terms of that Daniel just discussed, in terms of our ability to begin to see origination and growth and success in the highest quality categories of the funding base amidst that backdrop.

That's actually very encouraging to me.

David Garner, EVP, Executive Director of Finance & Accounting and Chief Accounting Officer Okay, that's great.

Similarly encouraging I thought was, you know, the loan production side, I mean at near four year highs, you know, obviously, you know, like 3% annualized growth.