Simmons First National Corporation announced Monday record net income of $53.6 million for the quarter ended June 30, 2018, compared to $23.1 million for the same period in 2017, an increase of $30.5 million, or 132.2 percent, according to a company news release.
Diluted earnings per share were $0.58, an increase of $0.22, or 61.1 percent, from the same period in 2017. Included in second quarter 2018 results were $1.1 million in net after-tax merger-related and branch right-sizing costs. Excluding the impact of these items, core earnings were $54.7 million for the quarter ended June 30, 2018, compared to $26.8 million for the quarter ended June 30, 2017, an increase of $27.9 million, or 104.3 percent. Core diluted earnings per share were $0.59, an increase of $0.17, or 40.5 percent, from the same period in 2017, according to the news release.
Year-to-date net income for the first half of 2018 was $104.9 million, or $1.13 diluted earnings per share, compared to $45.2 million, or $0.71 diluted earnings per share, for the same period in 2017. Excluding $2.4 million in net after-tax merger-related and branch right-sizing costs, year-to-date core earnings for 2018 were $107.3 million, an increase of $58.0 million compared to the same period last year.
“We are pleased to again report record earnings for this quarter building off the strong results in the first quarter,” said George A. Makris, Jr., chairman and CEO, said in the release.
Makris continued, “The system conversions and integration for our most recent acquisitions are now complete and we are excited to turn our focus on expanding our products and services throughout our larger footprint.”
The company completed a 2-for-1 stock split effective February 8, 2018, the news release said. Financial statements, including earnings per share as well as other share-related disclosures, have been adjusted to include the impact of the stock split on all periods presented.
At June 30, 2018, total deposits were $12.0 billion, an increase of 68.3 percent, compared to the same period in 2017 and a 2.5 percent increase from March 31, 2018, according to the news release. The increase is from continued focus on core deposits as a funding source for asset growth and the recent acquisitions. Total non-time deposits increased 65.7 percent compared to the same period in 2017, and comprised 80.3 percent of total deposits.
Since last quarter, the Federal Reserve Board increased the Fed Funds target rate by 25 basis points, the news release said. The company’s deposit beta was 40 percent and the core loan beta was 36 percent. Looking back to March 2017, the Federal Reserve has increased the target rate by 100 basis points. The company deposit beta was 51percent and the core loan beta was 45percent during the same period.