Simmons First National Corporation (SFNC) Delivers Q3 Turnaround with $47.1 Million Net Income
Key Takeaways
- Simmons First National Corporation reported third quarter 2026 net income of $47.1 million, swinging sharply from a $562.8 million net loss in the same period a year ago.
- Adjusted diluted earnings per share (EPS) came in at $0.54, in line with the FactSet consensus estimate of $0.54.
- Total revenue rose to $251.2 million, up from $232.5 million in the third quarter of 2025.
- The net interest margin (NIM) — the spread between interest earned and interest paid — improved to 3.92%, aided by stronger loan yields.
- Reported results were weighed down by $43.1 million in one-time restructuring and balance-sheet items.
Earnings Context and Why It Matters
Simmons First National Corporation, a Mid-South financial holding company whose principal subsidiary Simmons Bank operates across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, reported third quarter 2026 results on October 15, 2026. This quarter matters because it offers the clearest view yet of a bank that spent 2025 absorbing a costly securities restructuring that drove a year-ago net loss. Investors are watching whether management's effort to reposition the balance sheet toward higher-quality, relationship-based lending is translating into durable profitability. With a 117-year history of consecutive cash dividend payments, SFNC's ability to sustain earnings power and capital discipline is central to the investment case. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Simmons First National Corporation reported net income of $47.1 million for the third quarter of 2026, down from $66.7 million in the second quarter but a dramatic improvement from a net loss of $562.8 million in the third quarter of 2025. Diluted EPS was $0.32, compared with $0.46 sequentially and a loss of $4.00 per share a year earlier.
On an adjusted (non-GAAP) basis, which excludes one-time items, net income reached $79.0 million, up from $72.2 million in the prior quarter and $64.9 million a year ago. Adjusted diluted EPS was $0.54, matching the FactSet consensus estimate and comparing with $0.50 in the second quarter and $0.46 in the third quarter of 2025.
Total revenue was $251.2 million, up from $248.6 million sequentially and $232.5 million year over year. The net interest margin improved to 3.92%, reflecting better loan yields and a lower-cost funding structure. Adjusted return on average assets (ROAA) was 1.29%, and adjusted return on tangible common equity (ROTCE) was 15.50%.
Reported results were pressured by $43.1 million in non-recurring costs, including branch and real estate rightsizing, severance and early-retirement program expenses, certain professional services, accelerated prepaid expenses, and a loss on early extinguishment of debt. As a result, noninterest expense rose to $182.0 million, from $147.7 million in the second quarter. Excluding these items, adjusted noninterest expense was $138.9 million, slightly below the $140.3 million recorded in the prior quarter. Total loans ended the quarter at $17.5 billion, down from $18.1 billion sequentially, while total deposits declined to $18.6 billion from $19.7 billion. From what I see, the adjusted metrics tell a clearer story of underlying progress.
Market Reaction and Investor Sentiment
Simmons entered the quarter as a turnaround story, and the third quarter results reinforced that narrative even as headline figures reflected sizable one-time charges. The adjusted EPS of $0.54, in line with consensus, signaled that core operations are stabilizing after the prior year's securities-driven losses. However, the sequential decline in total loans and deposits underscores investor attention on balance-sheet size and funding stability, which can temper enthusiasm. The market's interpretation has centered on the contrast between improving profitability metrics — higher net interest margin, stronger adjusted returns — and the one-time costs and shrinking balance sheet that cloud headline earnings. Sentiment remains cautious but constructive, with investors balancing the clear progress on efficiency and profitability against ongoing pressure on loan and deposit volumes.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should focus on whether the balance-sheet reset stabilizes. Management has deliberately run off certain lower-yielding, low-relationship loans to prioritize profitability, which has reduced total loans from $18.1 billion to $17.5 billion sequentially. The key question is when loan growth resumes and whether the commercial loan pipeline — reported at $1.3 billion, with ready-to-close commercial loans of $455 million — converts into renewed balance-sheet expansion.
Funding and deposit costs will remain a central watch point. Total deposits declined to $18.6 billion, and how the bank manages this while defending its improved net interest margin will shape future earnings power. The efficiency initiatives are another focal area: management's cost actions, including branch rightsizing and an early-retirement program, lowered full-time equivalent employees to 2,712 from 2,909 in the prior quarter. Sustained progress on the adjusted efficiency ratio — 53.31% in the quarter — would support the profitability narrative. I’m watching this closely as the bank works through these adjustments.
Finally, credit quality, capital ratios, and any further one-time restructuring charges will influence results. Simmons continues to emphasize relationship-based banking and operational optimization, and investors will look for confirmation that these efforts translate into steadier, more predictable earnings in the quarters ahead.
Using Tickeron AI Tools for Deeper Analysis
In reviewing SFNC alongside peers, I turned to Tickeron’s AI Screener to quickly filter regional banks by fundamentals and technical signals. It helped surface comparable names and confirmed some of the efficiency trends I was already tracking. The tool makes it straightforward to apply custom criteria without spending hours on manual screens, which fits well into a routine research process for names like this one.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SFNC in downward trend: price dove below 50-day moving average on September 28, 2026
SFNC moved below its 50-day moving average on September 28, 2026 date and that indicates a change from an upward trend to a downward trend. In 27 of 36 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are 75%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 07, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SFNC as a result. In 51 of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 65%.
The Moving Average Convergence Divergence Histogram (MACD) for SFNC turned negative on September 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 30 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SFNC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
The Aroon Indicator for SFNC entered a downward trend on October 14, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.42% 3-day Advance, the price is estimated to grow further. Considering data from situations where SFNC advanced for three days, in 175 of 288 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
SFNC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 15 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. SFNC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 83 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.948) is normal, around the industry mean (1.323). P/E Ratio (13.732) is within average values for comparable stocks, (23.509). Projected Growth (PEG Ratio) (0.590) is also within normal values, averaging (1.190). Dividend Yield (0.038) settles around the average of (0.030) among similar stocks. SFNC's P/S Ratio (20.534) is very high in comparison to the industry average of (3.738).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SFNC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 57, placing this stock worse than average.
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