Question · Q3 2025
David Hester with Raymond James inquired about Simmons First National Corporation's key strategic initiatives and top priorities following recent transformational actions, including the HTM restructuring and new leadership. He also asked about the company's loan growth outlook, opportunities, and the expected acceleration of growth, as well as the projected net interest margin trajectory over the next 12 months, considering various balance sheet dynamics.
Answer
President Jay Brogdon outlined a shift in focus to the business structure, emphasizing organic growth capabilities through talent acquisition and driving operational excellence and efficiency. He reiterated a commitment to consistent, strong risk-adjusted returns, projecting low single-digit loan growth but an increasingly positive outlook for pipeline and production. Brogdon highlighted a significant tailwind from nearly $3 billion in fixed-rate loans repricing over 24 months, yielding about 3.9%. CFO Daniel Hobbs and Brogdon discussed the 3.65%+ net interest margin outlook for Q4, noting the defensibility of the margin due to hedging actions and core balance sheet NIM growth. Hobbs stated the goal is to manage NIM within the 3.50-3.75% range through hedging.