Regional banking company Simmons First National (NASDAQ:SFNC) missed Wall Street's revenue expectations in Q2 CY2026, but sales rose 12.7% year on year to $248.6 million. Its non-GAAP profit of $0.50 per share was 4.5% below analysts' consensus estimates.
Is now the time to buy Simmons First National? Find out in our full research report .
Simmons First National (SFNC) Q2 CY2026 Highlights:
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Net Interest Income:$200.6 million vs analyst estimates of $203.7 million (16.8% year-on-year growth, 1.5% miss)
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Net Interest Margin:3.8% vs analyst estimates of 3.8% (in line)
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Revenue:$248.6 million vs analyst estimates of $251.5 million (12.7% year-on-year growth, 1.2% miss)
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Efficiency Ratio:58.7% vs analyst estimates of 55.6% (317 basis point miss)
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Adjusted EPS:$0.50 vs analyst expectations of $0.52 (4.5% miss)
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Tangible Book Value per Share:$14.42 vs analyst estimates of $14.40 (15% year-on-year decline, in line)
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Market Capitalization:$3.37 billion
Company Overview
With roots dating back to 1903 and a presence across Arkansas, Kansas, Missouri, Oklahoma, Tennessee, and Texas, Simmons First National (NASDAQ:SFNC) is a regional bank holding company that provides banking and financial services to individuals and businesses.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Regrettably, Simmons First National's revenue grew at a sluggish 4.5% compounded annual growth rate over the last five years. This was below our standard for the banking sector and is a poor baseline for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Simmons First National's annualized revenue growth of 9.9% over the last two years is above its five-year trend, which is encouraging.
This quarter, Simmons First National's revenue grew by 12.7% year on year to $248.6 million but fell short of Wall Street's estimates.
Net interest income made up 80.6% of the company's total revenue during the last five years, meaning Simmons First National barely relies on non-interest income to drive its overall growth.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They're also valued based on their balance sheet strength and ability to compound book value (another name for shareholders' equity) over time.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Simmons First National's TBVPS declined at a 3.4% annual clip over the last five years. A turnaround doesn't seem to be in sight as its TBVPS also dropped by 5.7% annually over the last two years ($16.20 to $14.42 per share).
Over the next 12 months, Consensus estimates call for Simmons First National's TBVPS to grow by 10.1% to $15.88, mediocre growth rate.
Key Takeaways from Simmons First National's Q2 Results
We struggled to find many positives in these results. Its EPS missed and its net interest income fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock traded up 4.2% to $24.25 immediately following the results, because management says they expect to "sharpen our focus" on efficiency/rightsizing initiatives and that these should "more than fund additional investments" to support sustainable organic growth.
So do we think Simmons First National is an attractive buy at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free .
