Simmons First National Bank Boosts Leadership Team to Drive Organic Growth
Simmons First National Bank has recently brought on board new executives as part of its strategic move to amplify its deposit network and foster stronger relationships with its customers. The new CEO, Jay Brogdon, announced the hiring of new leaders for its Consumer and Wealth Management Division, as well as its Commercial Banking Business, along with the creation of a new eight-member private banking team.
Addressing the Need for Diversification
Simmons, previously known for its growth-via-acquisition strategy, is shifting its focus towards organic growth. The aim is to diversify the bank’s loan portfolio and secure more business from both existing and new customers. The bank is keen on strengthening its team by recruiting top bankers across its six-state network.
Simmons’ New Strategic Approach
Historically, Simmons has relied heavily on acquisitions for growth. The $25 billion-asset company had acquired 14 banks in under a decade, with the most recent deal closing in 2022. However, the bank is now focusing on organic growth to boost its performance, with its executives stating that this strategy has not been the bank’s strong suit in the past.
Widening the Range of Services
Simmons is looking to offer a wider range of services to its clients. Traditionally, the bank’s primary focus has been on commercial real estate lending, which makes up over three-quarters of its total loan portfolio. However, it is now looking to strengthen other sectors and simultaneously capture clients’ full business, such as treasury management and operating accounts.
Strengthening the Team
The bank announced the appointment of Brian Jackson as President of Consumer and Wealth Management, and Jonathan Schneider as President of Commercial Banking. Jackson, formerly of Regions Bank, will be positioned in Little Rock, while Schneider will be based in Dallas. Alongside these executives, the bank has also assembled an eight-member private banking and wealth management team based in St. Louis.
The Challenges Ahead
Simmons’ strategy to enhance its private banking unit and broaden its loan portfolio is not unique. Many banks across the country have adopted similar strategies to combat economic challenges. The rapid increase in interest rates in 2022 and 2023 put pressure on commercial real estate loans at banks nationwide. Additionally, a series of bank failures in 2023 led to heightened competition for stable deposits.
Amidst Difficulties, Opportunities Arise
Despite these challenges, Simmons’ CEO remains optimistic. He believes the bank’s largest opportunity to exceed its guidance for 2026 is by accumulating low-cost deposits. The company’s Better Bank initiative, which focuses on improving efficiency through process automation, is beginning to yield savings that can be invested in hiring. Analysts also share this positive outlook, stating that the bank is well-positioned for an improved earnings profile in 2026.
Conclusion
Simmons First National Bank is making strategic moves and investments to shift its focus towards organic growth. By diversifying its loan portfolio and enhancing customer relationships, the bank aims to secure a stronger presence in the market. The path ahead may be challenging, but with new leadership and a clear strategy in place, the bank is poised for growth and a bright future.
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