Simmons First National Corp. and Home BancShares Inc. were among those companies enjoying sizable stock price bumps during the past two months.
Simmons First soared from $48.65 on Nov. 4 to $66.40 on Dec. 9 before settling to back above $60. Home BancShares began its run from $19.89 on Oct. 13 and climbed to more than $27.
“I think it was the election,” said Simmons CEO George Makris. “The whole banking industry stock valuation went nuts after the election. We did nothing at Simmons to justify that. We were one of those benefiting from a rising tide that lifts all ships.”
Wall Street was moved by the possibility of cuts in the corporate tax rate and the cost of regulatory requirements for banks presented by a change of administration.
“We all got the Trump Effect,” said Johnny Allison, chairman of Home BancShares. “If he reduces federal income taxes on companies to 15 percent, it would mean $50 million more a year that we could use for capital, to buy more banks, to pay more dividends.
“We’ll put it to work.”