Regional banking company Simmons First National (NASDAQ: SFNC) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 15.9% year on year to $249 million. Its non-GAAP profit of $0.54 per share was 12.9% above analysts’ consensus estimates.
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Simmons First National (SFNC) Q4 CY2025 Highlights:
- Net Interest Income: $197.3 million vs analyst estimates of $192.8 million (19.6% year-on-year growth, 2.3% beat)
- Net Interest Margin: 3.8% vs analyst estimates of 3.7% (13.2 basis point beat)
- Revenue: $249 million vs analyst estimates of $239.2 million (15.9% year-on-year growth, 4.1% beat)
- Efficiency Ratio: 55.5% vs analyst estimates of 57.8% (227.6 basis point beat)
- Adjusted EPS: $0.54 vs analyst estimates of $0.48 (12.9% beat)
- Tangible Book Value per Share: $13.91 vs analyst estimates of $13.77 (17.2% year-on-year decline, 1% beat)
- Market Capitalization: $2.78 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
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Over the last five years, Simmons First National grew its revenue at a weak 1.9% compounded annual growth rate. This was below our standards and is a rough starting point 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 4% over the last two years is above its five-year trend, but we were still disappointed by the results. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Simmons First National reported year-on-year revenue growth of 15.9%, and its $249 million of revenue exceeded Wall Street’s estimates by 4.1%.
Net interest income made up 76.9% of the company’s total revenue during the last five years, meaning lending operations are Simmons First National’s largest source of revenue.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
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. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
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 6.5% annually over the last two years ($15.92 to $13.91 per share).
Over the next 12 months, Consensus estimates call for Simmons First National’s TBVPS to grow by 8.4% to $15.07, paltry growth rate.
Key Takeaways from Simmons First National’s Q4 Results
We enjoyed seeing Simmons First National beat analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock remained flat at $19.29 immediately following the results.
Should you buy the stock or not? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
