Simmons First National Corporation (NASDAQ:SFNC) Q3 2023 Earnings Call Transcript

Bob Fehlman: Yes. And Matt, I’d say, given the macro environment we’re all going through right now, we feel very comfortable with low to mid-single digit in this environment.

Jay Brogdon: Agree.

Matt Olney: Yes. Okay. That’s helpful. And then just to clarify, I think in the past, you’ve given some commentary around deposit betas for the cycle. I know the cycle is getting a little bit more exiting here than we initially thought. But any updated thoughts around deposit betas from here?

Jay Brogdon: Yes. I mean I think we’re probably cumulative mid-40s. Is that what we have there? Yes. So we’re sort of mid-40s. I mean when I look at CDs maturing in particular over the next few months, when I look at the tougher one to predict, which is just the level of migration over the next handful of months, I’d say that there’s a good chance that creeps into the 50s as we look forward. But that’s, again, all of it like everything else, Matt, is very much subject to what does the Fed do from here, but that would be my best handicap as I sit here today.

Matt Olney: Yeah. Okay. Thanks, guys.

Jay Brogdon: Yeah. Thanks, Matt.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to George Makris for any closing remarks.

George Makris: Well, thanks to all of you for joining us today. This is hard for me to say, but I think the real key for the next year or so is going to be patience, of which I have very little. But there are still so many external factors affecting the banking industry today that we really can’t guess what that needs to be. And our focus needs to be on good fundamental management of the bank. I’m really pleased with the results of our Better Bank Initiative. I’m optimistic that there is more benefit to come. You can see that in our repricing opportunities, in our securities portfolio and our fixed rate loan portfolio, we have some upside potential that we’re excited about. And most importantly, we’re still in business. We have a lot of capacity left to help our customers grow in the market as they see that opportunity. So I’m very optimistic about what 2024 holds for our bank. And we appreciate your support and your participation today. Have a great day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.