The restructuring charges are large and real, but the adjusted operating metrics (NIM +8 bps, adjusted efficiency ratio -95 bps, adjusted PPNR +21% YoY) show the underlying business is improving. The key catalyst is the December Investor Day where management will outline new financial targets — the market will judge whether the cost savings materialize and whether loan shrinkage stabilizes.
Price Chart
Executive Summary
Simmons First National reported Q3 2026 GAAP net income of $47.1M ($0.32 diluted EPS), sharply down from $66.7M in Q2 2026, driven by $43.1M in pre-tax restructuring charges (branch rightsizing, severance, professional services, accelerated prepaid expenses). Adjusted diluted EPS of $0.54 missed the $0.56 consensus by ~3.6%. Core operating trends were mixed: net interest margin expanded 8 bps to 3.92% and adjusted PPNR grew 21% YoY, but total loans shrank 3% linked quarter from deliberate balance sheet deleveraging, nonperforming loans rose to 1.03% of loans, and the GAAP efficiency ratio deteriorated to 71.59%. Management guided toward an Investor Day in December with updated financial targets.
Key Financial Metrics
Key Facts
- GAAP net income $47.1M vs $66.7M Q2 2026; GAAP diluted EPS $0.32 vs $0.46 Q2 2026
- Adjusted diluted EPS $0.54 vs consensus $0.56 (miss of ~3.6%)
- Adjusted net income $79.0M vs $72.2M Q2 2026 and $64.9M Q3 2025
- Net interest margin expanded 8 bps to 3.92% (FTE); cost of deposits down 8 bps to 1.85%
- Total loans $17.5B, down $597M (-3%) linked quarter from balance sheet deleveraging
- Nonperforming loans rose to $179.9M (1.03% of loans) from $166.1M (0.92%) Q2 2026
- Adjusted efficiency ratio improved to 53.31% from 54.26% Q2 2026
- CET1 ratio improved 45 bps to 12.05%; remaining share repurchase authorization $161M
- Pre-tax restructuring charges of $43.1M in Q3 2026 (branch rightsizing, severance, professional services, accelerated prepaid expenses)
- 26 branches set to close Dec 4, 2026; FTE headcount reduced by 197 to 2,712
Financial Impact
GAAP net income declined 29% QoQ to $47.1M; adjusted EPS missed consensus by ~$0.02; $43.1M in pre-tax restructuring charges expected to generate $37M-$42M in annual PPNR savings
Risk Factors
- Loan portfolio continued to shrink (-3% QoQ) as deliberate deleveraging may pressure future net interest income
- Nonperforming loans rose to 1.03% of loans, the highest in the trailing five quarters; NPL coverage ratio fell to 133%
- GAAP efficiency ratio deteriorated to 71.59% from 58.72% Q2 2026 due to restructuring charges
- Tangible book value per share fell to $13.52 from $14.42 Q2 2026, driven by AOCI impact from higher long-term rates
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-422936 |
| Document: d439916dex992.htm | 0001193125-26-422936 |
| Document: d439916d8k.htm | 0001193125-26-422936 |
| Document: 0001193125-26-422936-index-headers.html | 0001193125-26-422936 |
| Document: 0001193125-26-422936-index.html | 0001193125-26-422936 |
| Document: 0001193125-26-422936.txt | 0001193125-26-422936 |
| 8-K Data (Synthetic) | 0001193125-26-422936 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | 8-K | $22.07 | awaiting T+20 | — | $23.34 (+5.75%) |
Aug 20, 2026 9w ago | Press Release | $23.01 $22.65 | ▼ −1.56% | ▼ −1.04% | $23.34 (+1.43%) |
US Market Status
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