• Simmons First National Corporation recently reported fourth-quarter 2025 results, with net interest income rising to US$197.3 million and net income reaching US$78.08 million, while also recording net loan charge-offs of US$48.75 million.
• Management’s emphasis on net interest margin expansion, progress on legacy credit issues, and a pause in share repurchases points to a cautious but earnings-focused approach.
• With the shares posting gains over the past week, we’ll examine how stronger net interest income shapes Simmons First National’s investment narrative.

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What Is Simmons First National's Investment Narrative?

For Simmons First National, the investment case still hinges on a recovery story: a regional bank working to translate improving earnings into sustainable profitability, while maintaining its long dividend record. The latest quarter adds some weight to that narrative, with net interest income and net income up and management talking more confidently about margin improvement. At the same time, the sharp jump in net loan charge-offs and the decision to sit out the buyback in late 2025 refresh the near term risk list. Credit quality and how much capital has to be reserved for problem loans look more pressing now than they did before this update. The recent share price strength suggests the market is giving the earnings rebound some credit, but it is not ignoring the credit costs either.

However, one key credit-related risk is becoming harder to ignore for shareholders. Simmons First National's shares have been on the rise but are still potentially undervalued by 42%. Find out what it's worth.

Exploring Other Perspectives

Three Simply Wall St Community fair value views span roughly US$17 to over US$35 per share, showing how far apart individual investors can be. Against that backdrop, the recent jump in quarterly charge-offs and cautious use of capital are exactly the sort of moving parts that could shift how you think about Simmons First National’s earnings power and risk profile over time.

Explore 3 other fair value estimates on Simmons First National - why the stock might be worth as much as 71% more than the current price!

Build Your Own Simmons First National Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Simmons First National research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Simmons First National research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Simmons First National's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.