Simmons Bank records 71% drop in Q4 profits

Pine Bluff, Arkansas-based Simmons First National Corp. (Nasdaq: SFNC) cited atypical expenses in reporting a roughly 71% drop in profits during the final quarter of the year.

The company, which has four Simmons Bank branches in Springfield, recorded fourth-quarter net income of $23.9 million, compared with $83.3 million a year earlier, according to a news release. Diluted share earnings dropped to 19 cents from 65 cents per share year over year.

"As we enter 2024 against a backdrop of economic uncertainty, we believe certain strategic actions we have taken this past year position us well to take advantage of opportunities and meet the challenges ahead," CEO Bob Fehlman said in the release. "Overall, we were encouraged by the underlying trends experienced during the quarter, as well as the strategic decision we made to selectively sell certain lower yielding bonds in our securities portfolio given advantageous market conditions."

During the quarter, Simmons Bank sold roughly $241 million in low-yield investment securities, resulting in a pretax loss of around $20 million, and the company reported a $10.5 million Federal Deposit Insurance Corp. expense.

As of Dec. 31, Simmons Bank's assets were $27.3 billion and deposits were $22.2 billion, according to the release. The company operates 234 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas.

SFNC shares were trading at $20.13 as of 11:28 a.m., compared with a 52-week range of $13.36 to $23.68 per share.