Simmons First National Corp (SFNC) has reported a 13.04 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $26.97 million, or $0.85 a share in the quarter, compared with $23.86 million, or $0.78 a share for the same period last year.
Revenue during the quarter grew 7 percent to $106.11 million from $99.17 million in the previous year period. Net interest income for the quarter rose 0.78 percent over the prior year period to $74.33 million. Non-interest income for the quarter rose 26.06 percent over the last year period to $36.12 million.
Simmons First National Corp has made provision of $4.33 million for loan losses during the quarter, up 34.12 percent from $3.23 million in the same period last year.
Net interest margin contracted 41 basis points to 4.12 percent in the quarter from 4.53 percent in the last year period. Efficiency ratio for the quarter improved to 55.47 percent from 59.26 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"We are very pleased with our results during the fourth quarter. Our associates are beginning to leverage our size and integrate more of our services in markets previously unserved," said George A. Makris Jr., chairman and chief executive officer. "We are excited about our future related to our previously announced mergers. Simmons Bank will enter new and very attractive markets as a result of the Bank SNB merger and will be able to expand in our current markets with the First South Bank merger. We look forward to significant growth from these mergers."
Liabilities outpace assets growth
Total assets stood at $8,400.06 million as on Dec. 31, 2016, up 11.12 percent compared with $7,559.66 million on Dec. 31, 2015. On the other hand, total liabilities stood at $7,248.94 million as on Dec. 31, 2016, up 11.82 percent from $6,482.80 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $5,596.60 million as on Dec. 31, 2016, up 14.50 percent compared with $4,888 million on Dec. 31, 2015. Deposits stood at $6,735.22 million as on Dec. 31, 2016, up 10.67 percent compared with $6,086.10 million on Dec. 31, 2015.
Noninterest-bearing deposit liabilities were $1,491.68 million or 22.15 percent of total deposits on Dec. 31, 2016, compared with $1,280.23 million or 21.04 percent of total deposits on Dec. 31, 2015.
Investments stood at $1,619.49 million as on Dec. 31, 2016, up 5.77 percent or $88.29 million from year-ago. Shareholders equity stood at $1,151.11 million as on Dec. 31, 2016, up 6.90 percent or $74.26 million from year-ago.
Return on average assets moved up 4 basis points to 1.29 percent in the quarter from 1.25 percent in the last year period. At the same time, return on average equity increased 12 basis points to 9.27 percent in the quarter from 9.15 percent in the last year period.
Nonperforming assets moved up 4.43 percent or $2.83 million to $66.77 million on Dec. 31, 2016 from $63.94 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.79 percent in the quarter, down from 0.85 percent in the last year period.
Capital ratios deteriorate
Simmons First National Corp witnessed a deterioration in capital ratios during in the quarter. Tier-1 leverage ratio stood at 10.95 percent for the quarter, down from 11.20 percent for the previous year quarter. Equity to assets ratio was 13.70 percent for the quarter, down from 14.24 percent for the previous year quarter. Book value per share was $36.80 for the quarter, up 6.51 percent or $2.25 compared to $34.55 for the same period last year.
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