For the third quarter of 2020, Simmons First National Corporation’s net income fell by almost $16 million compared to 2019’s third quarter results.
Simmons Bank netted $65.9 million for the quarter that ended Sept. 30. This was a decrease of $15.9 million, or 19.5 percent, from last year’s $81.8 million. However, excluding the costs of an early retirement program and net branch right-sizing costs (calculated at $2.5 million), the bank had core earnings of $68.3 million for 2020’s third quarter. This still was a drop of 18.6 percent from 2019’s core earnings.
The bank increased its net income from the second quarter by approximately $7.1 million, rising from $58.8 million to $65.9 million.
While the third quarter net income dropped from 2019 to 2020, the year-to-date numbers were up. In the first nine months of 2020, Simmons Bank had a net income of $201.9 million, compared to $185.1 million for 2019. For 2020, Simmons had a $1.83 diluted earnings per share versus a $1.94 diluted earnings per share in 2019.
As of Sept. 30, Simmons had $14 billion in loans on the book, a $1 billion increase from the same time in 2019. This increase was attributed mainly to the bank’s merger with the Landrum Company, which took place in 2019. Total loans decreased, though, on a linked quarter basis from June 30 to Sept. 30, 2020 by 589.5 million.
Simmons underwrote roughly 5,200 Paycheck Protection Program loans, averaging a balance of $118,000 per loan. Of Simmons’ PPP loans, 63 percent, or 5,216 loans, had a balance of $50,000 or less, while 30 percent, or 2,441 loans, had a balance of $50,000 to $350,000. There were 481 loans, or six percent of the bank’s total, with balance of $350,000 to $2 million, and there were 61 loans, or 1 percent, with balances of $2-10 million.
Deposits also increased from 2019’s third quarter to 2020’s third quarter. In 2019, the bank reported $13.5 billion in total deposits. This rose to $16.2 billion in deposits for third quarter 2020. This number was a drop from the second quarter of 2020, when Simmons Bank had $16.6 billion in deposits. Simmons attributed the drop to “decreases in non-interest bearing and large public fund time deposits.”
“We are very proud of our results under these trying conditions. We have experienced very meaningful shifts in consumer habits which we believe will impact our delivery of products and services as well as the retail delivery of everyday amenities. Our investment in digital channels will continue to position our company for these changes and our associates are ready for the new normal,” George A. Makris, Jr., chairman and CEO of Simmons First National Corporation, said in a statement.