Simmons First National Corporation (NASDAQ:SFNC) Q4 2022 Earnings Call Transcript

We’re at a point in time now where we need to step back, further integrate processes, systems and take a look at our people across our entire footprint to make sure that we position ourselves for success over the next three to five years on what we can control and that is organic growth. So, that’s our primary focus today. As we go forward, you’ll hear a lot more about technology plans, our process plans, and so forth, but we would never say that we would never consider another acquisition. We’re just not aggressively pursuing that today. When you take a look at our footprint and our potential for growth within that footprint from an organic perspective, I think it is just tremendous. So, we’ve spent the last 10 years positioning this company for today.

And I’m very confident that under Bob and Jay’s leadership and their expertise in the areas that we need focus, we’re going to be very, very successful.

Bob Fehlman : Yes. Stephen, this is Bob. Just to kind of add on to that. If you look at our slide deck on Page 3, it really tells the story of what we’ve done over the last 10 years and you go back to 2012 when George came on as CEO, we were really focused on Arkansas was our footprint primarily. In fact, we had $2.6 billion and 94% of our deposits were in Arkansas. And we really had a focus on growing the bank so we can make additional investments whether it’s in the IT area, whether it’s in people, whether it’s in our market outside and branding. And over that period of time, as George said, we’ve had 14 bank acquisition and today at the end of the year in 2022, we have $22.2 billion and the geographic diversification over that period of time is significant.

And now in Arkansas, 35% deposits are here and 22% are in Missouri, Tennessee and so forth. We have a really good diversification in some really good growth markets in Middle America. So, we’re very pleased with where we’re going. And as George said, again we’ll not turn away from an acquisition if it is the right one, but our focus today is what we have called is a Better Bank Initiative and it’s really focusing on people, processes and systems. And that is what we’re focused on. And our end result is really focused on growing earnings per share and tangible book value per share.

Stephen Scouten: Great. That’s a lot of helpful color and thanks for the call out on that pie chart. That’s a pretty aggressive transformation. It’s nice to see it there visually. Thanks a lot.

Operator: The next question is from Gary Tenner of D. A. Davidson. Please go ahead.

Gary Tenner: Thanks. Good morning.

Bob Fehlman: Good morning, Gary.

Gary Tenner: Hey, I wanted to just ask one more question on the funding side. It looks like a good bit of the wholesale time deposits that came on were later in quarter unless I missed it, had you provided or could you provide the, kind of spot rate on deposits?