Simmons First National in Pine Bluff, Arkansas, said on Tuesday that CEO Robert Fehlman will retire at the end of this year and be replaced by a familiar face — former CEO George Makris Jr.
Fehlman, who has been chief executive of the $27.3 billion-asset bank for just under two years, will retire "to focus on personal interests and family medical issues," the company said in a press release. Felhman, 60, will serve in an advisory role through the first quarter of next year.
Makris, who led Simmons through a
The company also announced Tuesday that Chris Van Steenberg has been hired as Simmons' chief operating officer, a role last held by Fehlman. Van Steenberg comes to Simmons from First Horizon Bank in Memphis, Tennessee, where he was most recently the chief digital and product officer, according to his LinkedIn profile. He will report to Simmons President Jay Brogdon.
The company did not say how long Makris, who joined Simmons in 1998, will stick around as chairman and CEO, and it did not say if or when it will commence a search for a new CEO. In response to questions about its CEO succession plan, a Simmons spokesperson wrote in an email that the board of directors "has a succession plan in place and will continue to utilize that plan going forward, including the length of time Mr. Makris will serve as chairman and CEO."
Brogdon, who was promoted to president of Simmons when Fehlman moved to the CEO role, may well be in line for the latter job, according to Stephen Scouten, an analyst at Piper Sandler.
In a research note, Scouten said the changes announced Tuesday appear to reflect "a continuation of the deepening of responsibilities" for Brogdon and other recent hires at Simmons, adding that the bank's path "has been fairly well-telegraphed over the past few years." Scouten noted that he was "a bit surprised" to see Makris shift back into the C-suite, "but this could be transitional."
"Ultimately, we expect Mr. Brogdon to assume the role of CEO in time, but having Mr. Makris should lend stability and minimize disruption in the nearterm," Scouten wrote. Despite Makris' reputation as a dealmaker, the decision to shift him back into the CEO role doesn't mean the company is looking at mergers, Scouten said.
"The company is not actively pursuing M&A at this time," he wrote. "The bank plans to continue its organic progression through its 'Better Bank' initiative," which is a cost-savings program.
Simmons realized $18 million in savings in 2023, according to its fourth-quarter 2023 earnings materials. The original target for cost savings last year was about $15 million.
Van Steenberg, who previously worked at First Tennessee Bank in Memphis and Citizens Financial Group in Providence, Rhode Island, will be an asset to Simmons' strategy, the company said. He has "a proven track record in leading retail banking and commercial treasury management teams" as well as "implementing ongoing strategies designed to enhance the customer experience and drive operational efficiencies," Brogdon said in the press release.
"We're excited to see the impact Chris will have on furthering our better bank initiative, while also supporting our efforts to drive sound, profitable growth and positive operating leverage," Brogdon said.
Simmons has 234 retail branches across Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. In the third quarter, it reported net income of $24.7 million, or 20 cents per share, down from $47.2 million, or 37 cents per share, in the same period last year.
The year-over-year decline was largely related to the sale of certain lower-yielding bonds in its securities portfolio as part of a push to optimize its balance sheet, the company said at the time.
