DA Davidson maintains Neutral on Simmons First stock after mixed Q3

On Q3 results, DA Davidson maintained a Neutral rating on Simmons First National (SFNC) with a $24.00 price target. The bank's stock currently trades at $22.38, reflecting a 21.7% increase year-to-date. Simmons First reported sequential growth in net interest income and a net interest margin that outperformed expectations. However, end-of-period loans contracted by $600 million, a development the firm described as unexpected.

Despite this reduction in loan volume, the bank managed to offset the impact by experiencing a decline in higher cost funding. Adjusted return on assets reached 1.29%, while adjusted return on tangible common equity stood at 15.5%. Notably, Simmons First has maintained dividend payments for 53 consecutive years, as per InvestingPro data, indicating the stock trades above its Fair Value.

The bank's credit metrics weakened during the quarter, with non-performing assets rising to 1.07% of loans plus real estate owned from 0.98% in the previous period. Net charge-offs remained steady at 0.27% for the quarter. Third-quarter 2026 financial results showed earnings per share at $0.54, matching Wall Street's profit expectations.

However, revenue for the quarter was $251.2 million, slightly below the forecasted $254.03 million. Simmons First's strategy focused on margin expansion, reducing funding costs, and tightly managing expenses. No mergers or acquisitions were reported during this period, and there were no analyst upgrades or downgrades for the company.