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News & Updates

Simmons First National Corporation Reports Second Quarter 2024 Results

PINE BLUFF, Ark., July 24, 2024 /PRNewswire/ --

Bob Fehlman, Simmons' Chief Executive Officer, commented on second quarter 2024 results:

Overall, we were very pleased with our results for the quarter as key profitability metrics – net income, total revenue and pre-provision net revenue – all showed positive progression on a linked quarter basis.

Total loans increased 4 percent on a linked quarter annualized basis, while our focus on maintaining prudent pricing discipline resulted in a 15 basis point increase in the yield on our loan portfolio from the first quarter. At the same time, the pace of increase in deposit costs slowed, rising just 4 basis points compared to first quarter levels, and noninterest bearing deposit migration also eased. As a result, our net interest margin rose 3 basis points on a linked quarter basis.

Credit quality trends in the quarter were also positive, with nonperforming loans and past due loans decreasing from first quarter levels. While we continue to operate against a backdrop of uncertainty concerning slower economic growth and the timing of lower interest rates, we are comforted by our strong capital and liquidity positions. And given the liability sensitivity of our balance sheet, we believe we are well-positioned for profitable growth in a lower interest rate environment.

 Financial Highlights

   2Q24

   1Q24

   2Q23


2Q24 Highlights

Balance Sheet (in millions)





                                                  Comparisons reflect 2Q24 vs 1Q24

 

•  Net income of $40.8 million and diluted EPS of $0.32

 

•  Adjusted earnings1 of $41.9 million and adjusted diluted EPS1 of $0.33

 

•  Total revenue of $197.2 million. PPNR1 of $57.9 million; Adjusted PPNR1 of $59.4 million

 

•  Net interest margin at 2.69%, up 3 bps

 

•  Pace of increase in deposit costs slowed significantly (4 bps) and noninterest bearing migration eased

 

•  Positive operating leverage driven by revenue growth and decline in noninterest expense

 

•  Provision for credit losses on loans exceeded net charge-offs in the quarter by $3.0 million

 

•  NCO ratio 19 bps in 2Q24; 16 bps of NCO ratio associated with run-off portfolio 

 

•  ACL ratio ends the quarter at 1.34%; NPL coverage ratio at 223%

 

•  EA ratio 12.64%; TCE ratio1 up 9 bps to 7.84%

Total loans

$17,192

$17,002

$16,834


Total investment securities

6,571

6,735

7,337


Total deposits

21,841

22,353

22,489


Total assets

27,369

27,372

27,959


Total shareholders' equity

3,459

3,439

3,356


Asset Quality





Net charge-off ratio (NCO ratio)

0.19 %

0.19 %

0.04 %


Nonperforming loan ratio

0.60

0.63

0.43


Nonperforming assets to total assets

0.39

0.41

0.28


Allowance for credit losses to total loans

1.34

1.34

1.25


Nonperforming loan coverage ratio

223

212

292


Performance Measures (in millions)





Total revenue

$197.2

$195.1

$208.2


Adjusted total revenue1

197.2

195.1

208.6


Pre-provision net revenue1 (PPNR)

57.9

55.2

68.5


Adjusted pre-provision net revenue1

59.4

57.2

72.6


Provision for credit losses

11.1

10.2

0.1


Per share Data





Diluted earnings

$  0.32

$  0.31

$  0.46


Adjusted diluted earnings1

0.33

0.32

0.48


Book value

27.56

27.42

26.59


Tangible book value1

16.20

16.02

15.17


Capital Ratios





Equity to assets (EA ratio)

12.64 %

12.56 %

12.00 %


Tangible common equity (TCE) ratio1

7.84

7.75

7.22


Common equity tier 1 (CET1) ratio

12.00

11.95

11.92


Total risk-based capital ratio

14.17

14.43

14.17


Liquidity ($ in millions)





Loan to deposit ratio

78.72 %

76.06 %

74.85 %


Borrowed funds to total liabilities

7.38

5.42

7.49


Uninsured, non-collateralized deposits (UCD)

$  4,408

$  4,643

$  4,802


Additional liquidity sources

11,120

11,457

11,096


Coverage ratio of UCD

        2.5x

        2.5x

        2.3x


Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $40.8 million for the second quarter of 2024, compared to $38.9 million in the first quarter of 2024 and $58.3 million in the second quarter of 2023. Diluted earnings per share were $0.32 for the second quarter of 2024, compared to $0.31 in the first quarter of 2024 and $0.46 in the second quarter of 2023. Adjusted earnings1 for the second quarter of 2024 were $41.9 million, compared to $40.4 million for the first quarter of 2024 and $61.4 million for the second quarter of 2023. Adjusted diluted earnings per share1 for the second quarter of 2024 were $0.33, compared to $0.32 for the first quarter of 2024 and $0.48 for the second quarter of 2023.

During the second quarter of 2024, we recorded $0.3 million of noninterest expense related to an FDIC special assessment levied to support the Deposit Insurance Fund. This expense was in addition to the $1.6 million and $10.5 million FDIC special assessment we recorded in the first quarter of 2024 and fourth quarter of 2023, respectively. The table below summarizes the impact of these items, along with the impact of certain other items, consisting primarily of branch right sizing, early retirement, and termination of vendor and software services. They are also described in further detail in the "Reconciliation of Non-GAAP Financial Measures" tables contained in this press release.

Impact of Certain Items on Earnings and Diluted EPS

$ in millions, except per share data


 2Q24

 1Q24

  2Q23

Net income


$ 40.8

$ 38.9

$ 58.3






FDIC special assessment


0.3

1.6

-

Branch right sizing, net


0.5

0.2

0.1

Early retirement program


0.1

0.2

3.6

Termination of vendor and software services


0.6

-

-

Loss on sale of AFS investment securities


-

-

0.4

   Total pre-tax impact


1.5

2.0

4.1

Tax effect2


(0.4)

(0.5)

(1.0)

   Total impact on earnings


1.1

1.5

3.1

Adjusted earnings1


$ 41.9

$ 40.4

$ 61.4






Diluted EPS


$ 0.32

$ 0.31

$ 0.46






FDIC special assessment


-

0.01

-

Branch right sizing, net


-

-

-

Early retirement program


-

-

0.03

Termination of vendor and software contracts


0.01

-

-

Loss on sale of AFS investment securities


-

-

-

   Total pre-tax impact


0.01

0.01

0.03

Tax effect2


-

-

(0.01)

   Total impact on earnings


0.01

0.01

0.02

Adjusted Diluted EPS1


$ 0.33

$ 0.32

$ 0.48

Net Interest Income
Net interest income for the second quarter of 2024 totaled $153.9 million, compared to $151.9 million for the first quarter of 2024 and $163.2 million for the second quarter of 2023. Interest income totaled $329.1 million for the second quarter of 2024, compared to $322.6 million for the first quarter of 2024 and $297.2 million for the second quarter of 2023. The increase in interest income was primarily driven by an increase in loan production coupled with the rate earned on loans. Interest expense totaled $175.2 million for the second quarter of 2024, up $4.5 million on a linked quarter basis primarily due to an increase in other borrowings costs. Included in net interest income is accretion recognized on loans, which totaled $1.6 million for the second quarter of 2024, $1.1 million for the first quarter of 2024 and $2.3 million for the second quarter of 2023.

The yield on loans on a fully taxable equivalent (FTE) basis for the second quarter of 2024 was 6.39 percent, up 15 basis points from 6.24 percent for the first quarter of 2024 and up 50 basis points from 5.89 percent for the second quarter of 2023. Cost of deposits for the second quarter of 2024 was 2.79 percent, compared to 2.75 percent for the first quarter of 2024 and 1.96 percent for the second quarter of 2023. The net interest margin on an FTE basis for the second quarter of 2024 was 2.69 percent, compared to 2.66 percent for the first quarter of 2024 and 2.76 percent for the second quarter of 2023.

Select Yield/Rates

 2Q24

 1Q24

 4Q23

3Q23

2Q23

Loan yield (FTE)2

6.39 %

6.24 %

6.20 %

6.08 %

5.89 %

Investment securities yield (FTE)2

3.68

3.76

3.67

3.08

2.91

Cost of interest bearing deposits

3.53

3.48

3.31

3.06

2.57

Cost of deposits

2.79

2.75

2.58

2.37

1.96

Cost of borrowed funds

5.84

5.85

5.79

5.60

5.31

Net interest spread (FTE)2

1.92

1.89

1.93

1.87

2.10

Net interest margin (FTE)2

2.69

2.66

2.68

2.61

2.76

Noninterest Income
Noninterest income for the second quarter of 2024 was $43.3 million, compared to $43.2 million in the first quarter of 2024 and $45.0 million in the second quarter of 2023. Adjusted noninterest income1 was $43.3 million in the second quarter of 2024, compared to $43.2 million in the first quarter of 2024 and $45.4 million in the second quarter of 2023. The increase in noninterest income and adjusted noninterest income on a linked quarter basis was primarily due to an increase in wealth management fees and service charges on deposit accounts, offset in part by a decline in mortgage lending income.

Noninterest Income

$ in millions

 2Q24

 1Q24

4Q23

3Q23

2Q23

Service charges on deposit accounts

$ 12.3

$ 12.0

$ 12.8

$ 12.4

$ 12.9

Wealth management fees

8.3

7.5

7.7

7.7

7.4

Debit and credit card fees

8.2

8.2

7.8

7.7

8.0

Mortgage lending income

2.0

2.3

1.6

2.2

2.4

Other service charges and fees

2.4

2.2

2.3

2.2

2.3

Bank owned life insurance

3.9

3.8

3.1

3.1

2.6

Gain (loss) on sale of securities

-

-

(20.2)

-

(0.4)

Other income

6.4

7.2

6.9

7.4

9.8

   Total noninterest income

$ 43.3

$ 43.2

$ 22.0

$ 42.8

$ 45.0







Adjusted noninterest income1

$ 43.3

$ 43.2

$ 42.2

$ 42.8

$ 45.4

Noninterest Expense
Noninterest expense for the second quarter of 2024 was $139.4 million, compared to $139.9 million in the first quarter of 2024 and $139.7 million in the second quarter of 2023. During the second quarter and first quarter of 2024, noninterest expense included an FDIC special assessment of $0.3 million and $1.6 million, respectively. Also included in noninterest expense are certain items consisting of branch right sizing, early retirement, and termination of vendor and software services. Collectively, these items totaled $1.5 million in the second quarter of 2024, $2.0 million in the first quarter of 2024 and $3.7 million in the second quarter of 2023. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest expense1 was $137.8 million in the second quarter of 2024, $137.9 million in the first quarter of 2024 and $136.0 million in the second quarter of 2023. The decrease in noninterest expense and adjusted noninterest expense on a linked quarter basis was primarily due to a decline in salaries and employee benefits.

Noninterest Expense

$ in millions

  2Q24

  1Q24

 4Q23

 3Q23

       2Q23

Salaries and employee benefits

$  70.7

$  72.7

$  67.0

$  67.4

$  74.7

Occupancy expense, net

11.9

12.3

11.7

12.0

11.4

Furniture and equipment

5.6

5.1

5.4

5.1

5.1

Deposit insurance

5.4

5.5

4.7

4.7

5.2

Other real estate and foreclosure expense

0.1

0.2

0.2

0.2

0.3

FDIC special assessment

0.3

1.6

10.5

-

-

Other operating expenses

45.4

42.5

48.6

42.6

42.9

   Total noninterest expense

$139.4

$139.9

$148.1

$132.0

$139.7







Adjusted salaries and employee benefits1

$  70.6

$  72.4

$  66.0

$ 65.8

$  71.1

Adjusted other operating expenses1

44.3

42.4

44.9

42.1

43.0

Adjusted noninterest expense1

137.8

137.9

132.7

129.9

136.0

Efficiency ratio

68.38 %

69.41 %

80.46 %

65.11 %

65.18 %

Adjusted efficiency ratio1

65.68

66.42

62.91

61.94

61.29

Full-time equivalent employees

2,961

2,989

3,007

3,005

3,066

Loans and Unfunded Loan Commitments
Total loans at the end of the second quarter of 2024 were $17.2 billion, up $359 million, or 2 percent, compared to $16.8 billion at the end of the second quarter of 2023. Total loans on a linked quarter basis increased $191 million or 1 percent, reflecting continued focus on maintaining disciplined pricing strategies and prudent underwriting standards given market uncertainty regarding near-term economic activity and conditions. Unfunded loan commitments at the end of the second quarter of 2024 were $3.8 billion, compared to $3.9 billion at the end of the first quarter of 2024 and $4.4 billion at the end of the second quarter of 2023. The commercial loan pipeline ended the second quarter of 2024 at $1.0 billion, relatively unchanged from levels at the end of the first quarter 2024. The rate on ready to close commercial loans at the end of the second quarter of 2024 was 8.68 percent, up 30 basis points from the end of the first quarter of 2024.

Loans and Unfunded Loan Commitments 

$ in millions

  2Q24

  1Q24

 4Q23

 3Q23

 2Q23

Total loans

$17,192

$17,002

$16,846

$16,772

$16,834

Unfunded loan commitments

3,746

3,875

3,880

4,049

4,443

Deposits
Total deposits at the end of the second quarter of 2024 were $21.8 billion, compared to $22.4 billion at the end of the first quarter of 2024 and $22.5 billion at the end of the second quarter of 2023. The decrease in total deposits on a linked quarter basis was primarily attributable to activity related to public funds deposits. Noninterest bearing deposits totaled $4.6 billion at the end of the second quarter of 2024, relatively unchanged from first quarter 2024 levels as deposit migration eased in the second quarter. The loan-to-deposit ratio at the end of the second quarter of 2024 was 79 percent, compared to 76 percent at the end of the first quarter of 2024 and 75 percent at the end of the second quarter of 2023.

Deposits

$ in millions

 2Q24

 1Q24

 4Q23

 3Q23

 2Q23

Noninterest bearing deposits

$  4,624

$  4,698

$  4,801

$  4,991

$  5,265

Interest bearing transaction accounts

10,092

10,316

10,277

9,875

10,203

Time deposits

4,185

4,314

4,266

4,103

3,784

Brokered deposits

2,940

3,025

2,901

3,262

3,237

   Total deposits

$21,841

$22,353

$22,245

$22,231

$22,489







Noninterest bearing deposits to total deposits

21 %

21 %

22 %

22 %

23 %

Total loans to total deposits

79

76

76

75

75

Asset Quality
Provision for credit losses totaled $11.1 million for the second quarter of 2024, compared to $10.2 million for the first quarter of 2024 and $0.1 million for the second quarter of 2023. Provision for credit losses on loans exceeded net charge-offs by $3.0 million during the second quarter of 2024. The allowance for credit losses on loans at the end of the second quarter of 2024 was $230.4 million, compared to $227.4 million at the end of the first quarter of 2024 and $210.0 million at the end of the second quarter of 2023. The increase in allowance for credit losses on loans on a linked quarter and year-over-year basis reflected continued normalization of the credit environment from historical lows, as well as changes in the macroeconomic conditions and increased activity in the loan portfolio. The allowance for credit losses on loans as a percentage of total loans was 1.34 percent at the end of the second quarter of 2024, unchanged from first quarter 2024 levels and up from 1.25 percent at the end of the second quarter of 2023.    

Net charge-offs as a percentage of average loans for the second quarter of 2024 were 19 basis points, unchanged from first quarter 2024 levels and up from the 4 basis points recorded in the second quarter of 2023. Net charge-offs in the second quarter of 2024 included $6.7 million of charge-offs related to the previously identified run-off portfolio, which consists of an acquired asset-based lending portfolio and a small ticket equipment finance portfolio. Net charge-offs from the run-off portfolio accounted for 16 basis points of total net charge-offs recorded during the second quarter of 2024.

Total nonperforming loans at the end of the second quarter of 2024 were $103.4 million, compared to $107.3 million at the end of the first quarter of 2024 and $72.0 million at the end of the second quarter of 2023. The decrease in nonperforming loans on a linked quarter basis was primarily due to the run-off portfolio, which included a $5 million charge-off on a single, previously identified nonperforming asset-based lending credit. The nonperforming loan coverage ratio ended the second quarter of 2024 at 223 percent, compared to 212 percent at the end of the first quarter of 2024 and 292 percent at the end of the second quarter of 2023. Total nonperforming assets as a percentage of total assets were 0.39 percent at the end of the second quarter of 2024, compared to 0.41 percent at the end of the first quarter of 2024 and 0.28 percent at the end of the second quarter of 2023.

Asset Quality

$ in millions

  2Q24

  1Q24

  4Q23

 3Q23

 2Q23

Allowance for credit losses on loans to total loans

 

1.34 %

 

1.34 %

 

1.34 %

 

1.30 %

 

1.25 %

Allowance for credit losses on loans to nonperforming loans

 

223

 

212

 

267

 

267

 

292

Nonperforming loans to total loans

0.60

0.63

0.50

0.49

0.43

Net charge-off ratio (annualized)

0.19

0.19

0.11

0.28

0.04

Net charge-off ratio YTD (annualized)

0.19

0.19

0.12

0.12

0.04







Total nonperforming loans

$103.4

$107.3

$84.5

$81.9

$72.0

Total other nonperforming assets

3.4

5.0

5.8

5.2

4.9

   Total nonperforming assets

$106.8

$112.3

$90.3

$87.1

$76.9







Reserve for unfunded commitments

$25.6

$25.6

$25.6

$25.6

$36.9

Capital
Total stockholders' equity at the end of the second quarter of 2024 was $3.5 billion, compared to $3.4 billion at the end of the second quarter of 2023. On a linked quarter basis, total stockholders' equity increased $19.7 million, primarily as a result of a $14.4 million increase in retained earnings. Book value per share at the end of the second quarter of 2024 was $27.56, compared to $27.42 at the end of the first quarter of 2024 and $26.59 at the end of the second quarter of 2023. Tangible book value per share1 at the end of the second quarter of 2024 was $16.20, compared to $16.02 at the end of the first quarter of 2024 and $15.17 at the end of the second quarter of 2023.

Stockholders' equity as a percentage of total assets at June 30, 2024, was 12.6 percent, relatively unchanged from first quarter of 2024 levels and up from 12.0 percent reported at the end of the second quarter of 2023. Tangible common equity as a percentage of tangible assets1 was 7.8 percent, relatively unchanged from first quarter of 2024 levels and up from 7.2 percent reported at the end of the second quarter of 2023. Each of the regulatory capital ratios for Simmons and its lead subsidiary, Simmons Bank, continue to significantly exceed "well-capitalized" guidelines.

Select Capital Ratios

2Q24

1Q24

 

      4Q23

3Q23

2Q23

Stockholders' equity to total assets

12.6 %

12.6 %

12.5 %

11.9 %

12.0 %

Tangible common equity to tangible assets1

7.8

7.8

7.7

7.1

7.2

Common equity tier 1 (CET1) ratio

12.0

12.0

12.1

12.0

11.9

Tier 1 leverage ratio

9.5

9.4

9.4

9.3

9.2

Tier 1 risk-based capital ratio

12.0

12.0

12.1

12.0

11.9

Total risk-based capital ratio

14.2

14.4

14.4

14.3

14.2

Cash Dividend and Share Repurchase Program
As a result of Simmons' solid capital position and its ability to organically generate capital, the board of directors declared a quarterly cash dividend on Simmons' Class A common stock of $0.21 per share, which represents a 5 percent increase from the cash dividend paid for the same time period last year. The cash dividend is payable on October 1, 2024, to shareholders of record as of September 13, 2024. Simmons has paid cash dividends for 115 consecutive years, and 2024 represents the 13th consecutive year that Simmons has increased its dividend. According to research by Dividend Power, Simmons is one of only 26 U.S. publicly traded companies that have paid dividends for 100+ uninterrupted years. Simmons also earned Dividend Power's designation as a "Dividend Contender," a title reserved exclusively for companies that have increased their dividend for 10 to 24 consecutive years. As of July 1, 2024, Dividend Power research noted that Simmons is one of only 370 companies out of nearly 6,000 companies listed on the New York Stock Exchange and NASDAQ to achieve this distinction.

During the second quarter of 2024, Simmons did not repurchase shares under its stock repurchase program that was authorized in January 2024 (2024 Program), which replaced its former repurchase program that was authorized in January 2022. Remaining authorization under the 2024 Program as of June 30, 2024, was approximately $175 million. The timing, pricing and amount of any repurchases under the 2024 Program will be determined by Simmons' management at its discretion based on a variety of factors including, but not limited to, market conditions, trading volume and market price of Simmons' common stock, Simmons' capital needs, Simmons' working capital and investment requirements, other corporate considerations, economic conditions, and legal requirements.  The 2024 Program does not obligate Simmons to repurchase any common stock and may be modified, discontinued or suspended at any time without prior notice.

________________________________________________________________________________________

(1)    Non-GAAP measurement. See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" below

(2)   FTE – fully taxable equivalent basis using an effective tax rate of 26.135%

Conference Call
Management will conduct a live conference call to review this information beginning at 9:00 a.m. Central Time today, Wednesday, July 24, 2024. Interested persons can listen to this call by dialing toll-free 1-844-481-2779 (North America only) and asking for the Simmons First National Corporation conference call, conference ID 10190204. In addition, the call will be available live or in recorded version on Simmons' website at simmonsbank.com for at least 60 days following the date of the call.

Simmons First National Corporation
Simmons First National Corporation (NASDAQ: SFNC) is a Mid-South based financial holding company that has paid cash dividends to its shareholders for 115 consecutive years. Its principal subsidiary, Simmons Bank, operates 234 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. Founded in 1903, Simmons Bank offers comprehensive financial solutions delivered with a client-centric approach. In 2024, Simmons Bank was recognized by U.S. News & World Report as one of the 2024-2025 Best Companies to Work For in the South and by Forbes as one of America's Best-In-State Banks 2024 in Tennessee. In 2023, Simmons Bank was recognized by Forbes as one of America's Best Midsize Employers and among the World's Best Banks for the fourth consecutive year. Additional information about Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on X (formerly Twitter) or by visiting our newsroom.

Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from net income (including on a per share diluted basis), pre-tax, pre-provision earnings, net charge-offs, income available to common shareholders, non-interest income, and non-interest expense certain income and expense items attributable to, for example, merger activity (primarily including merger-related expenses), gains and/or losses on sale of branches, net branch right-sizing initiatives, FDIC special assessment charges and gain/loss on the sale of AFS investment securities. The Company has updated its calculation of certain non-GAAP financial measures to exclude the impact of gains or losses on the sale of AFS investment securities in light of the impact of the Company's strategic AFS investment securities transactions during the fourth quarter of 2023 and has presented past periods on a comparable basis.

In addition, the Company also presents certain figures based on tangible common stockholders' equity, tangible assets and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of the impact of deposits and/or loans acquired through acquisitions, mortgage warehouse loans, and/or energy loans, or gains and/or losses on the sale of securities. The Company's management believes that these non-GAAP financial measures are useful to investors because they, among other things, present the results of the Company's ongoing operations without the effect of mergers or other items not central to the Company's ongoing business, as well as normalize for tax effects and certain other effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's ongoing businesses, and management uses these non-GAAP financial measures to assess the performance of the Company's ongoing businesses as related to prior financial periods. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements
Certain statements in this press release may not be based on historical facts and should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Fehlman's quote, may be identified by reference to future periods or by the use of forward-looking terminology, such as "believe," "budget," "expect," "foresee," "anticipate," "intend," "indicate," "target," "estimate," "plan," "project," "continue," "contemplate," "positions," "prospects," "predict," or "potential," by future conditional verbs such as "will," "would," "should," "could," "might" or "may," or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons' future growth, business strategies, lending capacity and lending activity, loan demand, revenue, assets, asset quality, profitability, dividends, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, digital banking initiatives, the Company's ability to recruit and retain key employees, the adequacy of the allowance for credit losses, and future economic conditions and interest rates. Any forward-looking statement speaks only as of the date of this press release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this press release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, changes in credit quality, changes in interest rates and related governmental policies, changes in loan demand, changes in deposit flows, changes in real estate values, changes in the assumptions used in making the forward-  looking statements, changes in the securities markets generally or the price of Simmons' common stock specifically, changes in information technology affecting the financial industry, and changes in customer behaviors, including consumer spending, borrowing, and saving habits; general economic and market conditions; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and between Israel and Hamas) or other major events, or the prospect of these events; the soundness of other financial institutions and any indirect exposure related to the closings of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships;  increased inflation; the loss of key employees; increased competition in the markets in which the Company operates and from non-bank financial institutions; increased unemployment; labor shortages; claims, damages, and fines related to litigation or government actions; changes in accounting principles relating to loan loss recognition (current expected credit losses); the Company's ability to manage and successfully integrate its mergers and acquisitions and to fully realize cost savings and other benefits associated with acquisitions; increased delinquency and foreclosure rates on commercial real estate loans; cyber threats, attacks or events; reliance on third parties for key services; government legislation; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those projected in or contemplated by the forward-looking statements. Additional information on factors that might affect the Company's financial results is included in the Company's Form 10-K for the year ended December 31, 2023, and other reports that the Company has filed with or furnished to the U.S. Securities and Exchange Commission (the SEC), all of which are available from the SEC on its website, www.sec.gov. In addition, there can be no guarantee that the board of directors (Board) of Simmons will approve a quarterly dividend in future quarters, and the timing, payment, and amount of future dividends (if any) is subject to, among other things, the discretion of the Board and may differ significantly from past dividends.

Simmons First National Corporation





 SFNC

 Consolidated End of Period Balance Sheets






 For the Quarters Ended

 Jun 30

 Mar 31

 Dec 31

 Sep 30

 Jun 30

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands)






 ASSETS






 Cash and noninterest bearing balances due from banks

$      320,021

$      380,324

$      345,258

$      181,822

$      181,268

 Interest bearing balances due from banks and federal funds sold

254,312

222,979

268,834

423,826

564,644

     Cash and cash equivalents

574,333

603,303

614,092

605,648

745,912

 Interest bearing balances due from banks - time

100

100

100

100

545

 Investment securities - held-to-maturity

3,685,450

3,707,258

3,726,288

3,742,292

3,756,754

 Investment securities - available-for-sale

2,885,904

3,027,558

3,152,153

3,358,421

3,579,758

 Mortgage loans held for sale

13,053

11,899

9,373

11,690

10,342

 Loans:






 Loans

17,192,437

17,001,760

16,845,670

16,771,888

16,833,653

 Allowance for credit losses on loans

(230,389)

(227,367)

(225,231)

(218,547)

(209,966)

 Net loans

16,962,048

16,774,393

16,620,439

16,553,341

16,623,687

 Premises and equipment

581,893

576,466

570,678

567,167

562,025

 Foreclosed assets and other real estate owned

2,209

3,511

4,073

3,809

3,909

 Interest receivable

126,625

122,781

122,430

110,361

103,431

 Bank owned life insurance

505,023

503,348

500,559

497,465

494,370

 Goodwill

1,320,799

1,320,799

1,320,799

1,320,799

1,320,799

 Other intangible assets

104,943

108,795

112,645

116,660

120,758

 Other assets

606,692

611,964

592,045

676,572

636,833

 Total assets

$ 27,369,072

$ 27,372,175

$ 27,345,674

$ 27,564,325

$ 27,959,123







 LIABILITIES AND STOCKHOLDERS' EQUITY






 Deposits:






 Noninterest bearing transaction accounts

$   4,624,186

$   4,697,539

$   4,800,880

$   4,991,034

$   5,264,962

 Interest bearing transaction accounts and savings deposits

10,925,179

11,071,762

10,997,425

10,571,807

10,866,078

 Time deposits

6,291,518

6,583,703

6,446,673

6,668,370

6,357,682

         Total deposits

21,840,883

22,353,004

22,244,978

22,231,211

22,488,722

 Federal funds purchased and securities sold






 under agreements to repurchase

52,705

58,760

67,969

74,482

102,586

 Other borrowings

1,346,378

871,874

972,366

1,347,855

1,373,339

 Subordinated notes and debentures

366,217

366,179

366,141

366,103

366,065

 Accrued interest and other liabilities

304,020

283,232

267,732

259,119

272,085

 Total liabilities

23,910,203

23,933,049

23,919,186

24,278,770

24,602,797







 Stockholders' equity:






 Common stock

1,255

1,254

1,252

1,251

1,262

 Surplus

2,506,469

2,503,673

2,499,930

2,497,874

2,516,398

 Undivided profits

1,356,626

1,342,215

1,329,681

1,330,810

1,308,654

 Accumulated other comprehensive (loss) income

(405,481)

(408,016)

(404,375)

(544,380)

(469,988)

 Total stockholders' equity

3,458,869

3,439,126

3,426,488

3,285,555

3,356,326

 Total liabilities and stockholders' equity

$ 27,369,072

$ 27,372,175

$ 27,345,674

$ 27,564,325

$ 27,959,123

 

Simmons First National Corporation





 SFNC

 Consolidated Statements of Income - Quarter-to-Date






 For the Quarters Ended

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands, except per share data)






 INTEREST INCOME






    Loans (including fees)

$ 270,937

$ 261,490

$ 261,505

$ 255,901

$  244,292

    Interest bearing balances due from banks and federal funds sold

2,964

3,010

3,115

3,569

4,023

    Investment securities

55,050

58,001

58,755

50,638

48,751

    Mortgage loans held for sale

194

148

143

178

154

            TOTAL INTEREST INCOME

329,145

322,649

323,518

310,286

297,220

 INTEREST EXPENSE






    Time deposits

73,946

73,241

72,458

68,062

53,879

    Other deposits

79,087

78,692

71,412

65,095

54,485

    Federal funds purchased and securities






      sold under agreements to repurchase

156

189

232

277

318

    Other borrowings

15,025

11,649

16,607

16,450

18,612

    Subordinated notes and debentures

7,026

6,972

7,181

6,969

6,696

            TOTAL INTEREST EXPENSE

175,240

170,743

167,890

156,853

133,990

 NET INTEREST INCOME

153,905

151,906

155,628

153,433

163,230

 PROVISION FOR CREDIT LOSSES






    Provision for credit losses on loans

11,099

10,206

11,225

20,222

5,061

    Provision for credit losses on unfunded commitments

-

-

-

(11,300)

(5,000)

    Provision for credit losses on investment securities - AFS

-

-

(1,196)

(1,200)

(1,326)

    Provision for credit losses on investment securities - HTM

-

-

-

-

1,326

            TOTAL PROVISION FOR CREDIT LOSSES

11,099

10,206

10,029

7,722

61

 NET INTEREST INCOME AFTER PROVISION






    FOR CREDIT LOSSES

142,806

141,700

145,599

145,711

163,169

 NONINTEREST INCOME






    Service charges on deposit accounts

12,252

11,955

12,782

12,429

12,882

    Debit and credit card fees

8,162

8,246

7,822

7,712

7,986

    Wealth management fees

8,274

7,478

7,679

7,719

7,440

    Mortgage lending income

1,973

2,320

1,603

2,157

2,403

    Bank owned life insurance income

3,876

3,814

3,094

3,095

2,555

    Other service charges and fees (includes insurance income)

2,352

2,199

2,346

2,232

2,262

    Gain (loss) on sale of securities

-

-

(20,218)

-

(391)

    Other income

6,410

7,172

6,866

7,433

9,843

            TOTAL NONINTEREST INCOME

43,299

43,184

21,974

42,777

44,980

 NONINTEREST EXPENSE






    Salaries and employee benefits

70,716

72,653

66,982

67,374

74,723

    Occupancy expense, net

11,864

12,258

11,733

12,020

11,410

    Furniture and equipment expense

5,623

5,141

5,445

5,117

5,128

    Other real estate and foreclosure expense

117

179

189

228

289

    Deposit insurance

5,682

7,135

15,220

4,672

5,201

    Merger-related costs

-

-

-

5

19

    Other operating expenses

45,352

42,513

48,570

42,582

42,926

            TOTAL NONINTEREST EXPENSE

139,354

139,879

148,139

131,998

139,696

 NET INCOME BEFORE INCOME TAXES

46,751

45,005

19,434

56,490

68,453

    Provision for income taxes

5,988

6,134

(4,473)

9,243

10,139

 NET INCOME

$   40,763

$   38,871

$   23,907

$   47,247

$    58,314

 BASIC EARNINGS PER SHARE

$       0.32

$       0.31

$       0.19

$       0.38

$        0.46

 DILUTED EARNINGS PER SHARE

$       0.32

$       0.31

$       0.19

$       0.37

$        0.46

 

Simmons First National Corporation





 SFNC

 Consolidated Risk-Based Capital






 For the Quarters Ended

 Jun 30  

 Mar 31   

 Dec 31   

 Sep 30   

 Jun 30   

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands)






Tier 1 capital






   Stockholders' equity

$   3,458,869

$   3,439,126

$   3,426,488

$   3,285,555

$   3,356,326

   CECL transition provision (1)

30,873

30,873

61,746

61,746

61,746

   Disallowed intangible assets, net of deferred tax

(1,391,969)

(1,394,672)

(1,398,810)

(1,402,682)

(1,406,500)

   Unrealized loss (gain) on AFS securities

405,481

408,016

404,375

544,380

469,988

      Total Tier 1 capital

2,503,254

2,483,343

2,493,799

2,488,999

2,481,560







Tier 2 capital






   Subordinated notes and debentures

366,217

366,179

366,141

366,103

366,065

   Subordinated debt phase out

(132,000)

(66,000)

(66,000)

(66,000)

(66,000)

   Qualifying allowance for loan losses and






      reserve for unfunded commitments

217,684

214,660

170,977

165,490

169,409

      Total Tier 2 capital

451,901

514,839

471,118

465,593

469,474

      Total risk-based capital

$   2,955,155

$   2,998,182

$   2,964,917

$   2,954,592

$   2,951,034







Risk weighted assets

$ 20,856,194

$ 20,782,094

$ 20,599,238

$ 20,703,669

$ 20,821,075







Adjusted average assets for leverage ratio

$ 26,371,545

$ 26,312,873

$ 26,552,988

$ 26,733,658

$ 26,896,289







Ratios at end of quarter






   Equity to assets

12.64 %

12.56 %

12.53 %

11.92 %

12.00 %

   Tangible common equity to tangible assets (2)

7.84 %

7.75 %

7.69 %

7.07 %

7.22 %

   Common equity Tier 1 ratio (CET1)

12.00 %

11.95 %

12.11 %

12.02 %

11.92 %

   Tier 1 leverage ratio

9.49 %

9.44 %

9.39 %

9.31 %

9.23 %

   Tier 1 risk-based capital ratio

12.00 %

11.95 %

12.11 %

12.02 %

11.92 %

   Total risk-based capital ratio

14.17 %

14.43 %

14.39 %

14.27 %

14.17 %







(1) The Company has elected to use the CECL transition provision allowed for in the year of adopting ASC 326.

(2) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules
accompanying this release.







 

Simmons First National Corporation





 SFNC

 Consolidated Investment Securities






 For the Quarters Ended

 Jun 30

 Mar 31

 Dec 31

 Sep 30

 Jun 30

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands)






Investment Securities - End of Period






 Held-to-Maturity






    U.S. Government agencies

$      454,488

$      453,805

$      453,121

$      452,428

$      451,737

    Mortgage-backed securities

1,119,741

1,142,352

1,161,694

1,178,324

1,193,118

    State and political subdivisions

1,857,409

1,855,642

1,856,674

1,857,652

1,859,022

    Other securities

253,812

255,459

254,799

253,888

252,877

       Total held-to-maturity (net of credit losses)

3,685,450

3,707,258

3,726,288

3,742,292

3,756,754

 Available-for-Sale






    U.S. Treasury

$          1,275

$          1,964

$          2,254

$          2,224

$          2,209

    U.S. Government agencies

66,563

69,801

72,502

172,759

176,564

    Mortgage-backed securities

1,730,842

1,845,364

1,940,307

2,157,092

2,282,328

    State and political subdivisions

864,190

874,849

902,793

790,344

885,505

    Other securities

223,034

235,580

234,297

236,002

233,152

       Total available-for-sale (net of credit losses)

2,885,904

3,027,558

3,152,153

3,358,421

3,579,758

       Total investment securities (net of credit losses)

$   6,571,354

$   6,734,816

$   6,878,441

$   7,100,713

$   7,336,512

       Fair value - HTM investment securities

$   3,005,524

$   3,049,281

$   3,135,370

$   2,848,211

$   3,094,958

 

Simmons First National Corporation





 SFNC

 Consolidated Loans






 For the Quarters Ended

 Jun 30

 Mar 31

 Dec 31

 Sep 30

 Jun 30

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands)






Loan Portfolio - End of Period






 Consumer:






    Credit cards

$      178,354

$      182,742

$      191,204

$      191,550

$      209,452

    Other consumer

130,278

124,531

127,462

112,832

148,333

 Total consumer

308,632

307,273

318,666

304,382

357,785

 Real Estate:






    Construction

3,056,703

3,331,739

3,144,220

3,022,321

2,930,586

    Single-family residential

2,666,201

2,624,738

2,641,556

2,657,879

2,633,365

    Other commercial real estate

7,760,266

7,508,049

7,552,410

7,565,008

7,546,130

 Total real estate

13,483,170

13,464,526

13,338,186

13,245,208

13,110,081

 Commercial:






    Commercial

2,484,474

2,499,311

2,490,176

2,477,077

2,569,330

    Agricultural

285,181

226,642

232,710

296,912

280,541

 Total commercial

2,769,655

2,725,953

2,722,886

2,773,989

2,849,871

 Other

630,980

504,008

465,932

448,309

515,916

       Total loans

$ 17,192,437

$ 17,001,760

$ 16,845,670

$ 16,771,888

$ 16,833,653

 

Simmons First National Corporation





 SFNC

 Consolidated Allowance and Asset Quality






 For the Quarters Ended

 Jun 30  

 Mar 31   

 Dec 31   

 Sep 30   

 Jun 30   

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands)






Allowance for Credit Losses on Loans






 Beginning balance

$ 227,367

$   225,231

$  218,547

$  209,966

$  206,557







 Loans charged off:






    Credit cards

1,418

1,646

1,500

1,318

1,409

    Other consumer

550

732

767

633

666

    Real estate

123

2,857

1,023

9,723

435

    Commercial

7,243

4,593

3,105

1,219

1,225

       Total loans charged off

9,334

9,828

6,395

12,893

3,735







 Recoveries of loans previously charged off:






    Credit cards

221

248

242

234

298

    Other consumer

509

333

518

344

436

    Real estate

72

735

785

429

878

    Commercial

455

442

309

245

471

       Total recoveries

1,257

1,758

1,854

1,252

2,083

    Net loans charged off

8,077

8,070

4,541

11,641

1,652

 Provision for credit losses on loans

11,099

10,206

11,225

20,222

5,061

 Balance, end of quarter

$ 230,389

$   227,367

$  225,231

$  218,547

$  209,966







Nonperforming assets






 Nonperforming loans:






    Nonaccrual loans

$ 102,891

$   105,788

$    83,325

$    81,135

$    71,279

    Loans past due 90 days or more

558

1,527

1,147

806

738

       Total nonperforming loans

103,449

107,315

84,472

81,941

72,017

 Other nonperforming assets:






   Foreclosed assets and other real estate owned

2,209

3,511

4,073

3,809

3,909

    Other nonperforming assets

1,167

1,491

1,726

1,417

1,013

       Total other nonperforming assets

3,376

5,002

5,799

5,226

4,922

          Total nonperforming assets

$ 106,825

$   112,317

$    90,271

$    87,167

$    76,939







Ratios






 Allowance for credit losses on loans to total loans

1.34 %

1.34 %

1.34 %

1.30 %

1.25 %

 Allowance for credit losses to nonperforming loans

223 %

212 %

267 %

267 %

292 %

 Nonperforming loans to total loans

0.60 %

0.63 %

0.50 %

0.49 %

0.43 %

 Nonperforming assets to total assets

0.39 %

0.41 %

0.33 %

0.32 %

0.28 %

 Annualized net charge offs to average loans (QTD)

0.19 %

0.19 %

0.11 %

0.28 %

0.04 %

 Annualized net charge offs to average loans (YTD)

0.19 %

0.19 %

0.12 %

0.12 %

0.04 %

 Annualized net credit card charge offs to






   average credit card loans (QTD)

2.50 %

2.88 %

2.49 %

2.19 %

2.25 %

 

Simmons First National Corporation











 SFNC

 Consolidated - Average Balance Sheet and Net Interest Income Analysis












 For the Quarters Ended












 (Unaudited)













 Three Months Ended
Jun 2024


 Three Months Ended
Mar 2024


 Three Months Ended
Jun 2023

 ($ in thousands)

Average
Balance

Income/
Expense

Yield/
Rate


Average
Balance

Income/
Expense

Yield/
Rate


Average
Balance

Income/
Expense

Yield/
Rate

ASSETS












Earning assets:












   Interest bearing balances due from banks












     and federal funds sold

$      214,777

$      2,964

5.55 %


$      211,121

$      3,010

5.73 %


$      404,639

$      4,023

3.99 %

   Investment securities - taxable

4,035,508

39,283

3.92 %


4,162,455

42,198

4.08 %


4,821,231

32,745

2.72 %

   Investment securities - non-taxable (FTE)

2,597,005

21,429

3.32 %


2,635,368

21,301

3.25 %


2,627,192

21,253

3.24 %

   Mortgage loans held for sale

10,328

194

7.55 %


9,048

148

6.58 %


9,560

154

6.46 %

   Loans - including fees (FTE)

17,101,799

271,851

6.39 %


16,900,496

262,414

6.24 %


16,702,403

245,151

5.89 %

      Total interest earning assets (FTE)

23,959,417

335,721

5.64 %


23,918,488

329,071

5.53 %


24,565,025

303,326

4.95 %

   Non-earning assets

3,345,860




3,340,911




3,201,114



     Total assets

$ 27,305,277




$ 27,259,399




$ 27,766,139















LIABILITIES AND STOCKHOLDERS' EQUITY












Interest bearing liabilities:












   Interest bearing transaction and












     savings accounts

$ 10,973,462

$    79,087

2.90 %


$ 11,132,396

$    78,692

2.84 %


$ 11,011,746

$    54,485

1.98 %

   Time deposits

6,447,259

73,946

4.61 %


6,448,014

73,241

4.57 %


5,911,139

53,879

3.66 %

      Total interest bearing deposits

17,420,721

153,033

3.53 %


17,580,410

151,933

3.48 %


16,922,885

108,364

2.57 %

   Federal funds purchased and securities












     sold under agreement to repurchase

50,558

156

1.24 %


54,160

189

1.40 %


119,985

318

1.06 %

   Other borrowings

1,111,734

15,025

5.44 %


873,278

11,649

5.37 %


1,449,403

18,612

5.15 %

   Subordinated notes and debentures

366,198

7,026

7.72 %


366,160

6,972

7.66 %


366,047

6,696

7.34 %

      Total interest bearing liabilities

18,949,211

175,240

3.72 %


18,874,008

170,743

3.64 %


18,858,320

133,990

2.85 %

Noninterest bearing liabilities:












   Noninterest bearing deposits

4,624,819




4,654,179




5,276,267



   Other liabilities

280,092




284,191




272,628



      Total liabilities

23,854,122




23,812,378




24,407,215



Stockholders' equity

3,451,155




3,447,021




3,358,924



      Total liabilities and stockholders' equity

$ 27,305,277




$ 27,259,399




$ 27,766,139



Net interest income (FTE)


$  160,481




$  158,328




$  169,336


Net interest spread (FTE)



1.92 %




1.89 %




2.10 %

Net interest margin (FTE)



2.69 %




2.66 %




2.76 %

 

Simmons First National Corporation





 SFNC

 Consolidated - Selected Financial Data






 For the Quarters Ended

 Jun 30  

 Mar 31   

 Dec 31   

 Sep 30   

 Jun 30   

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands, except share data)






QUARTER-TO-DATE






Financial Highlights - As Reported






Net Income

$        40,763

$        38,871

$        23,907

$        47,247

$        58,314

Diluted earnings per share

0.32

0.31

0.19

0.37

0.46

Return on average assets

0.60 %

0.57 %

0.35 %

0.68 %

0.84 %

Return on average common equity

4.75 %

4.54 %

2.84 %

5.56 %

6.96 %

Return on tangible common equity (non-GAAP) (1)

8.67 %

8.33 %

5.61 %

10.33 %

12.85 %

Net interest margin (FTE)

2.69 %

2.66 %

2.68 %

2.61 %

2.76 %

Efficiency ratio (2)

68.38 %

69.41 %

80.46 %

65.11 %

65.18 %

FTE adjustment

6,576

6,422

6,511

6,515

6,106

Average diluted shares outstanding

125,758,166

125,661,950

125,609,265

126,283,609

127,379,976

Shares repurchased under plan

-

-

-

1,128,962

1,128,087

Average price of shares repurchased

-

-

-

17.69

17.75

Cash dividends declared per common share

0.210

0.210

0.200

0.200

0.200

Accretable yield on acquired loans

1,569

1,123

1,762

2,146

2,267

Financial Highlights - Adjusted (non-GAAP) (1)






Adjusted earnings

$        41,897

$        40,351

$        50,215

$        48,804

$        61,354

Adjusted diluted earnings per share

0.33

0.32

0.40

0.39

0.48

Adjusted return on average assets

0.62 %

0.60 %

0.73 %

0.70 %

0.89 %

Adjusted return on average common equity

4.88 %

4.71 %

5.97 %

5.74 %

7.33 %

Adjusted return on tangible common equity

8.89 %

8.62 %

11.10 %

10.64 %

13.48 %

Adjusted efficiency ratio (2)

65.68 %

66.42 %

62.91 %

61.94 %

61.29 %

YEAR-TO-DATE






Financial Highlights - GAAP






Net Income

$        79,634

$        38,871

$      175,057

$      151,150

$      103,903

Diluted earnings per share

0.63

0.31

1.38

1.19

0.82

Return on average assets

0.59 %

0.57 %

0.64 %

0.73 %

0.76 %

Return on average common equity

4.64 %

4.54 %

5.21 %

6.00 %

6.23 %

Return on tangible common equity (non-GAAP) (1)

8.50 %

8.33 %

9.76 %

11.14 %

11.55 %

Net interest margin (FTE)

2.68 %

2.66 %

2.78 %

2.82 %

2.92 %

Efficiency ratio (2)

68.90 %

69.41 %

67.75 %

64.13 %

63.68 %

FTE adjustment

12,998

6,422

25,443

18,932

12,417

Average diluted shares outstanding

125,693,536

125,661,950

126,775,704

127,099,727

127,421,034

Cash dividends declared per common share

0.420

0.210

0.800

0.600

0.400

Financial Highlights - Adjusted (non-GAAP) (1)






Adjusted earnings

$        82,248

$        40,351

$      207,716

$      157,501

$      108,697

Adjusted diluted earnings per share

0.65

0.32

1.64

1.24

0.85

Adjusted return on average assets

0.61 %

0.60 %

0.75 %

0.76 %

0.79 %

Adjusted return on average common equity

4.80 %

4.71 %

6.18 %

6.25 %

6.51 %

Adjusted return on tangible common equity

8.76 %

8.62 %

11.46 %

11.58 %

12.06 %

Adjusted efficiency ratio (2)

66.05 %

66.42 %

61.32 %

60.81 %

60.30 %

END OF PERIOD






Book value per share

$          27.56

$          27.42

$          27.37

$          26.26

$          26.59

Tangible book value per share

16.20

16.02

15.92

14.77

15.17

Shares outstanding

125,487,520

125,419,618

125,184,119

125,133,281

126,224,707

Full-time equivalent employees

2,961

2,989

3,007

3,005

3,066

Total number of financial centers

234

233

234

232

231







 (1) Non-GAAP measurement that management believes aids in the understanding and discussion of results. Reconciliations to GAAP are

 included in the schedules accompanying this release.

 (2) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues. 

 Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting

 items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from

 securities transactions and certain adjusting items, and is a non-GAAP measurement.

 

Simmons First National Corporation





 SFNC

 Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Quarter-to-Date






 For the Quarters Ended

 Jun 30

 Mar 31

 Dec 31

 Sep 30

 Jun 30

 (Unaudited)

2024

2024

2023

2023

2023

 (in thousands, except per share data)






QUARTER-TO-DATE






 Net income

$   40,763

$     38,871

$    23,907

$    47,247

$    58,314

Certain items (non-GAAP)






FDIC Deposit Insurance special assessment

283

1,549

10,521

-

-

Merger related costs

-

-

-

5

19

Early retirement program

118

219

1,032

1,557

3,609

Termination of vendor and software services

615

-

-

-

-

Loss (gain) on sale of securities

-

-

20,218

-

391

Branch right sizing (net)

519

236

3,846

547

95

Tax effect of certain items (1)

(401)

(524)

(9,309)

(552)

(1,074)

    Certain items, net of tax

1,134

1,480

26,308

1,557

3,040

 Adjusted earnings (non-GAAP)

$   41,897

$     40,351

$    50,215

$    48,804

$    61,354







 Diluted earnings per share

$       0.32

$         0.31

$        0.19

$        0.37

$        0.46

Certain items (non-GAAP)






FDIC Deposit Insurance special assessment

-

0.01

0.08

-

-

Merger related costs

-

-

-

-

-

Early retirement program

-

-

0.01

0.01

0.03

Termination of vendor and software services

0.01

-

-

-

-

Loss (gain) on sale of securities

-

-

0.16

-

-

Branch right sizing (net)

-

-

0.03

0.01

-

Tax effect of certain items (1)

-

-

(0.07)

-

(0.01)

    Certain items, net of tax

0.01

0.01

0.21

0.02

0.02

 Adjusted diluted earnings per share (non-GAAP)

$       0.33

$         0.32

$        0.40

$        0.39

$        0.48







 (1) Effective tax rate of 26.135%.












Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)












QUARTER-TO-DATE






    Noninterest income

$   43,299

$     43,184

$    21,974

$    42,777

$    44,980

Certain noninterest income items






Loss (gain) on sale of securities

-

-

20,218

-

391

    Adjusted noninterest income (non-GAAP)

$   43,299

$     43,184

$    42,192

$    42,777

$    45,371







    Noninterest expense

$ 139,354

$   139,879

$  148,139

$  131,998

$  139,696

Certain noninterest expense items






Merger related costs

-

-

-

(5)

(19)

Early retirement program

(118)

(219)

(1,032)

(1,557)

(3,609)

FDIC Deposit Insurance special assessment

(283)

(1,549)

(10,521)

-

-

Termination of vendor and software services

(615)

-

-

-

-

Branch right sizing expense

(519)

(236)

(3,846)

(547)

(95)

    Adjusted noninterest expense (non-GAAP)

$ 137,819

$   137,875

$  132,740

$  129,889

$  135,973







    Salaries and employee benefits

$   70,716

$     72,653

$    66,982

$    67,374

$    74,723

Certain salaries and employee benefits items






Early retirement program

(118)

(219)

(1,032)

(1,557)

(3,609)

Other

1

-

2

-

-

    Adjusted salaries and employee benefits (non-GAAP)

$   70,599

$     72,434

$    65,952

$    65,817

$    71,114







    Other operating expenses

$   45,352

$     42,513

$    48,570

$    42,582

$    42,926

Certain other operating expenses items






Termination of vendor and software services

(615)

-

-

-

-

Branch right sizing expense

(392)

(83)

(3,708)

(466)

53

    Adjusted other operating expenses (non-GAAP)

$   44,345

$     42,430

$    44,862

$    42,116

$    42,979

 

Simmons First National Corporation





 SFNC

 Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Year-to-Date






 For the Quarters Ended

 Jun 30

 Mar 31

 Dec 31

 Sep 30

 Jun 30

 (Unaudited)

2024

2024

2023

2023

2023

 (in thousands, except per share data)






YEAR-TO-DATE






 Net income

$         79,634

$     38,871

$  175,057

$  151,150

$  103,903

Certain items (non-GAAP)






FDIC Deposit Insurance special assessment

1,832

1,549

10,521

-

-

Merger related costs

-

-

1,420

1,420

1,415

Early retirement program

337

219

6,198

5,166

3,609

Termination of vendor and software services

615

-

-

-

-

Loss (gain) on sale of securities

-

-

20,609

391

391

Branch right sizing (net)

755

236

5,467

1,621

1,074

Tax effect of certain items (1)

(925)

(524)

(11,556)

(2,247)

(1,695)

    Certain items, net of tax

2,614

1,480

32,659

6,351

4,794

 Adjusted earnings (non-GAAP)

$         82,248

$     40,351

$  207,716

$  157,501

$  108,697







 Diluted earnings per share

$             0.63

$         0.31

$        1.38

$        1.19

$        0.82

Certain items (non-GAAP)






FDIC Deposit Insurance special assessment

0.02

0.01

0.08

-

-

Merger related costs

-

-

0.01

0.01

0.01

Early retirement program

-

-

0.05

0.04

0.03

Termination of vendor and software services

-

-

-

-

-

Loss (gain) on sale of securities

-

-

0.17

-

-

Branch right sizing (net)

0.01

-

0.04

0.02

0.01

Tax effect of certain items (1)

(0.01)

-

(0.09)

(0.02)

(0.02)

    Certain items, net of tax

0.02

0.01

0.26

0.05

0.03

 Adjusted diluted earnings per share (non-GAAP)

$             0.65

$         0.32

$        1.64

$        1.24

$        0.85







 (1) Effective tax rate of 26.135%.












Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)












YEAR-TO-DATE






    Noninterest income

$         86,483

$     43,184

$  155,566

$  133,592

$    90,815

Certain noninterest income items






Loss (gain) on sale of securities

-

-

20,609

391

391

    Adjusted noninterest income (non-GAAP)

$         86,483

$     43,184

$  176,175

$  133,983

$    91,206







    Noninterest expense

$       279,233

$   139,879

$  563,061

$  414,922

$  282,924

Certain noninterest expense items






Merger related costs

-

-

(1,420)

(1,420)

(1,415)

Early retirement program

(337)

(219)

(6,198)

(5,166)

(3,609)

FDIC Deposit Insurance special assessment

(1,832)

(1,549)

(10,521)

-

-

Termination of vendor and software services

(615)

-

-

-

-

Branch right sizing expense

(755)

(236)

(5,467)

(1,621)

(1,074)

    Adjusted noninterest expense (non-GAAP)

$       275,694

$   137,875

$  539,455

$  406,715

$  276,826







    Salaries and employee benefits

$       143,369

$     72,653

$  286,117

$  219,135

$  151,761

Certain salaries and employee benefits items






Early retirement program

(337)

(219)

(6,198)

(5,166)

(3,609)

Other

1

-

2

-

-

    Adjusted salaries and employee benefits (non-GAAP)

$       143,033

$     72,434

$  279,921

$  213,969

$  148,152







    Merger related costs

$                 -

$             -

$      1,420

$      1,420

$      1,415

Adjustment for merger related costs

-

-

(1,420)

(1,420)

(1,415)

    Adjusted merger related costs (non-GAAP)

$                 -

$             -

$            -

$           -

$            -







    Other operating expenses

$         87,865

$     42,513

$  177,164

$  128,594

$    86,012

Certain other operating expenses items






Termination of vendor and software services

(615)

-

-

-

-

Branch right sizing expense

(475)

(83)

(4,937)

(1,229)

(763)

    Adjusted other operating expenses (non-GAAP)

$         86,775

$     42,430

$  172,227

$  127,365

$    85,249

 

Simmons First National Corporation





 SFNC

 Reconciliation Of Non-GAAP Financial Measures - End of Period






 For the Quarters Ended

 Jun 30   

 Mar 31   

 Dec 31   

 Sep 30   

 Jun 30   

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands, except per share data)












Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets







Total common stockholders' equity

$   3,458,869

$   3,439,126

$   3,426,488

$   3,285,555

$   3,356,326

Intangible assets:






   Goodwill

(1,320,799)

(1,320,799)

(1,320,799)

(1,320,799)

(1,320,799)

   Other intangible assets

(104,943)

(108,795)

(112,645)

(116,660)

(120,758)

Total intangibles

(1,425,742)

(1,429,594)

(1,433,444)

(1,437,459)

(1,441,557)

Tangible common stockholders' equity

$   2,033,127

$   2,009,532

$   1,993,044

$   1,848,096

$   1,914,769







Total assets

$ 27,369,072

$ 27,372,175

$ 27,345,674

$ 27,564,325

$ 27,959,123

Intangible assets:






   Goodwill

(1,320,799)

(1,320,799)

(1,320,799)

(1,320,799)

(1,320,799)

   Other intangible assets

(104,943)

(108,795)

(112,645)

(116,660)

(120,758)

Total intangibles

(1,425,742)

(1,429,594)

(1,433,444)

(1,437,459)

(1,441,557)

Tangible assets

$ 25,943,330

$ 25,942,581

$ 25,912,230

$ 26,126,866

$ 26,517,566







Ratio of common equity to assets

12.64 %

12.56 %

12.53 %

11.92 %

12.00 %

Ratio of tangible common equity to tangible assets

7.84 %

7.75 %

7.69 %

7.07 %

7.22 %







Calculation of Tangible Book Value per Share












Total common stockholders' equity

$   3,458,869

$   3,439,126

$   3,426,488

$   3,285,555

$   3,356,326

Intangible assets:






   Goodwill

(1,320,799)

(1,320,799)

(1,320,799)

(1,320,799)

(1,320,799)

   Other intangible assets

(104,943)

(108,795)

(112,645)

(116,660)

(120,758)

Total intangibles

(1,425,742)

(1,429,594)

(1,433,444)

(1,437,459)

(1,441,557)

Tangible common stockholders' equity

$   2,033,127

$   2,009,532

$   1,993,044

$   1,848,096

$   1,914,769

Shares of common stock outstanding

125,487,520

125,419,618

125,184,119

125,133,281

126,224,707

Book value per common share

$          27.56

$          27.42

$          27.37

$          26.26

$          26.59

Tangible book value per common share

$          16.20

$          16.02

$          15.92

$          14.77

$          15.17







Calculation of Coverage Ratio of Uninsured, Non-Collateralized Deposits







Uninsured deposits at Simmons Bank

$   8,186,903

$   8,413,514

$   8,328,444

$   8,143,200

$   8,507,395

Less: Collateralized deposits (excluding portion that is FDIC insured)

2,835,424

2,995,241

2,846,716

2,835,405

3,030,550

Less: Intercompany eliminations

943,979

775,461

728,480

676,840

674,552

Total uninsured, non-collateralized deposits

$   4,407,500

$   4,642,812

$   4,753,248

$   4,630,955

$   4,802,293







FHLB borrowing availability

$   4,910,000

$   5,326,000

$   5,401,000

$   5,372,000

$   5,345,000

Unpledged securities

4,145,000

4,122,000

3,817,000

4,124,000

3,877,000

Fed funds lines, Fed discount window and






  Bank Term Funding Program (1)

2,065,000

2,009,000

1,998,000

1,951,000

1,874,000

Additional liquidity sources

$ 11,120,000

$ 11,457,000

$ 11,216,000

$ 11,447,000

$ 11,096,000







Uninsured, non-collateralized deposit coverage ratio

2.5

2.5

2.4

2.5

2.3







 (1) The Bank Term Funding Program closed for new loans on March 11, 2024. At no time did Simmons borrow funds under this program.







Calculation of Net Charge Off Ratio












Net charge offs

$          8,077

$          8,070




Less: Net charge offs from run-off portfolio (1)

6,700

4,500




Net charge offs excluding run-off portfolio

$          1,377

$          3,570










Average total loans

$ 17,101,799

$ 16,900,496










Annualized net charge offs to average loans (NCO ratio)

0.19 %

0.19 %




NCO ratio, excluding net charge offs associated with run-off






portfolio (annualized)

0.03 %

0.08 %










 (1) Run-off portfolio consists of asset based lending and small equipment finance portfolios obtained in acquisitions.

 

Simmons First National Corporation





 SFNC

 Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date






 For the Quarters Ended

 Jun 30   

 Mar 31   

 Dec 31   

 Sep 30   

 Jun 30   

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands)






Calculation of Adjusted Return on Average Assets












Net income

$        40,763

$        38,871

$        23,907

$        47,247

$        58,314

Certain items (non-GAAP)






FDIC Deposit Insurance special assessment

283

1,549

10,521

-

-

Merger related costs

-

-

-

5

19

Early retirement program

118

219

1,032

1,557

3,609

Termination of vendor and software services

615

-

-

-

-

Loss (gain) on sale of securities

-

-

20,218

-

391

Branch right sizing (net)

519

236

3,846

547

95

Tax effect of certain items (2)

(401)

(524)

(9,309)

(552)

(1,074)

Adjusted earnings (non-GAAP)

$        41,897

$        40,351

$        50,215

$        48,804

$        61,354







Average total assets

$ 27,305,277

$ 27,259,399

$ 27,370,811

$ 27,594,611

$ 27,766,139







Return on average assets

0.60 %

0.57 %

0.35 %

0.68 %

0.84 %

Adjusted return on average assets (non-GAAP)

0.62 %

0.60 %

0.73 %

0.70 %

0.89 %







Calculation of Return on Tangible Common Equity












Net income available to common stockholders

$        40,763

$        38,871

$        23,907

$        47,247

$        58,314

Amortization of intangibles, net of taxes

2,845

2,844

2,965

3,027

3,026

Total income available to common stockholders

$        43,608

$        41,715

$        26,872

$        50,274

$        61,340

Certain items (non-GAAP)






Gain on insurance settlement

$                -

$                -

$                -

$                -

$                -

FDIC Deposit Insurance special assessment

283

1,549

10,521

-

-

Merger related costs

-

-

-

5

19

Early retirement program

118

219

1,032

1,557

3,609

Termination of vendor and software services

615

-

-

-

-

Loss (gain) on sale of securities

-

-

20,218

-

391

Branch right sizing (net)

519

236

3,846

547

95

Tax effect of certain items (2)

(401)

(524)

(9,309)

(552)

(1,074)

Adjusted earnings (non-GAAP)

41,897

40,351

50,215

48,804

61,354

Amortization of intangibles, net of taxes

2,845

2,844

2,965

3,027

3,026

Total adjusted earnings available to common stockholders (non-GAAP)

$        44,742

$        43,195

$        53,180

$        51,831

$        64,380







Average common stockholders' equity

$   3,451,155

$   3,447,021

$   3,336,247

$   3,371,678

$   3,358,924

Average intangible assets:






   Goodwill

(1,320,799)

(1,320,799)

(1,320,799)

(1,320,799)

(1,320,799)

   Other intangibles

(107,173)

(111,023)

(114,861)

(119,125)

(123,173)

Total average intangibles

(1,427,972)

(1,431,822)

(1,435,660)

(1,439,924)

(1,443,972)

Average tangible common stockholders' equity (non-GAAP)

$   2,023,183

$   2,015,199

$   1,900,587

$   1,931,754

$   1,914,952







Return on average common equity

4.75 %

4.54 %

2.84 %

5.56 %

6.96 %

Return on tangible common equity

8.67 %

8.33 %

5.61 %

10.33 %

12.85 %

Adjusted return on average common equity (non-GAAP)

4.88 %

4.71 %

5.97 %

5.74 %

7.33 %

Adjusted return on tangible common equity (non-GAAP)

8.89 %

8.62 %

11.10 %

10.64 %

13.48 %







Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)












Noninterest expense (efficiency ratio numerator)

$      139,354

$      139,879

$      148,139

$      131,998

$      139,696

Certain noninterest expense items (non-GAAP)






Merger related costs

-

-

-

(5)

(19)

Early retirement program

(118)

(219)

(1,032)

(1,557)

(3,609)

FDIC Deposit Insurance special assessment

(283)

(1,549)

(10,521)

-

-

Termination of vendor and software services

(615)

-

-

-

-

Branch right sizing expense

(519)

(236)

(3,846)

(547)

(95)

Other real estate and foreclosure expense adjustment

(117)

(179)

(189)

(228)

(289)

Amortization of intangibles adjustment

(3,852)

(3,850)

(4,015)

(4,097)

(4,098)

Adjusted efficiency ratio numerator

$      133,850

$      133,846

$      128,536

$      125,564

$      131,586







Net interest income

$      153,905

$      151,906

$      155,628

$      153,433

$      163,230

Noninterest income

43,299

43,184

21,974

42,777

44,980

Fully tax-equivalent adjustment (effective tax rate of 26.135%)

6,576

6,422

6,511

6,515

6,106

Efficiency ratio denominator

203,780

201,512

184,113

202,725

214,316

Certain noninterest income items (non-GAAP)






Branch right sizing income

-

-

-

-

-

(Gain) loss on sale of securities

-

-

20,218

-

391

Adjusted efficiency ratio denominator

$      203,780

$      201,512

$      204,331

$      202,725

$      214,707







Efficiency ratio (1)

68.38 %

69.41 %

80.46 %

65.11 %

65.18 %

Adjusted efficiency ratio (non-GAAP) (1)

65.68 %

66.42 %

62.91 %

61.94 %

61.29 %







 (1) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues.  Adjusted efficiency

 ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest

 income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is

 a non-GAAP measurement.






 (2) Effective tax rate of 26.135%.






 

Simmons First National Corporation





 SFNC

 Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)






 For the Quarters Ended

 Jun 30

 Mar 31

 Dec 31

 Sep 30

 Jun 30

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands)






Calculation of Total Revenue and Adjusted Total Revenue












Net interest income

$      153,905

$      151,906

$      155,628

$      153,433

$      163,230

Noninterest income

43,299

43,184

21,974

42,777

44,980

Total revenue

197,204

195,090

177,602

196,210

208,210

Certain items, pre-tax (non-GAAP)






Less: Gain (loss) on sale of securities

-

-

(20,218)

-

(391)

Adjusted total revenue

$      197,204

$      195,090

$      197,820

$      196,210

$      208,601







Calculation of Pre-Provision Net Revenue (PPNR)












Net interest income

$      153,905

$      151,906

$      155,628

$      153,433

$      163,230

Noninterest income

43,299

43,184

21,974

42,777

44,980

Total revenue

197,204

195,090

177,602

196,210

208,210

Less: Noninterest expense

139,354

139,879

148,139

131,998

139,696

Pre-Provision Net Revenue (PPNR)

$        57,850

$        55,211

$        29,463

$        64,212

$        68,514







Calculation of Adjusted Pre-Provision Net Revenue












Pre-Provision Net Revenue (PPNR)

$        57,850

$        55,211

$        29,463

$        64,212

$        68,514

Certain items, pre-tax (non-GAAP)






Plus: Loss (gain) on sale of securities

-

-

20,218

-

391

Plus: FDIC Deposit Insurance special assessment

283

1,549

10,521

-

-

Plus: Merger related costs

-

-

-

5

19

Plus: Early retirement program costs

118

219

1,032

1,557

3,609

Plus: Termination of vendor and software services

615

-

-

-

-

Plus: Branch right sizing costs (net)

519

236

3,846

547

95

Adjusted Pre-Provision Net Revenue

$        59,385

$        57,215

$        65,080

$        66,321

$        72,628

 

 

Simmons First National Corporation





 SFNC

 Reconciliation Of Non-GAAP Financial Measures - Year-to-Date






 For the Quarters Ended

 Jun 30   

 Mar 31   

 Dec 31   

 Sep 30   

 Jun 30   

 (Unaudited)

2024

2024

2023

2023

2023

($ in thousands)






Calculation of Adjusted Return on Average Assets












Net income

$             79,634

$             38,871

$           175,057

$           151,150

$           103,903

Certain items (non-GAAP)






FDIC Deposit Insurance special assessment

1,832

1,549

10,521

-

-

Merger related costs

-

-

1,420

1,420

1,415

Early retirement program

337

219

6,198

5,166

3,609

Termination of vendor and software services

615

-

-

-

-

Loss (gain) on sale of securities

-

-

20,609

391

391

Branch right sizing (net)

755

236

5,467

1,621

1,074

Tax effect of certain items (2)

(925)

(524)

(11,556)

(2,247)

(1,695)

Adjusted earnings (non-GAAP)

$             82,248

$             40,351

$           207,716

$           157,501

$           108,697







Average total assets

$      27,282,338

$      27,259,399

$      27,554,859

$      27,616,882

$      27,628,202







Return on average assets

0.59 %

0.57 %

0.64 %

0.73 %

0.76 %

Adjusted return on average assets (non-GAAP)

0.61 %

0.60 %

0.75 %

0.76 %

0.79 %







Calculation of Return on Tangible Common Equity












Net income available to common stockholders

$             79,634

$             38,871

$           175,057

$           151,150

$           103,903

Amortization of intangibles, net of taxes

5,689

2,844

12,044

9,079

6,052

Total income available to common stockholders

$             85,323

$             41,715

$           187,101

$           160,229

$           109,955

Certain items (non-GAAP)






FDIC Deposit Insurance special assessment

$               1,832

$               1,549

$             10,521

$                     -

$                     -

Merger related costs

-

-

1,420

1,420

1,415

Early retirement program

337

219

6,198

5,166

3,609

Termination of vendor and software services

615

-

-

-

-

Loss (gain) on sale of securities

-

-

20,609

391

391

Branch right sizing (net)

755

236

5,467

1,621

1,074

Tax effect of certain items (2)

(925)

(524)

(11,556)

(2,247)

(1,695)

Adjusted earnings (non-GAAP)

82,248

40,351

207,716

157,501

108,697

Amortization of intangibles, net of taxes

5,689

2,844

12,044

9,079

6,052

Total adjusted earnings available to common stockholders (non-GAAP)

$             87,937

$             43,195

$           219,760

$           166,580

$           114,749







Average common stockholders' equity

$        3,449,089

$        3,447,021

$        3,359,312

$        3,367,088

$        3,364,755

Average intangible assets:






   Goodwill

(1,320,799)

(1,320,799)

(1,320,510)

(1,320,412)

(1,320,215)

   Other intangibles

(109,098)

(111,023)

(121,098)

(123,200)

(125,272)

Total average intangibles

(1,429,897)

(1,431,822)

(1,441,608)

(1,443,612)

(1,445,487)

Average tangible common stockholders' equity (non-GAAP)

$        2,019,192

$        2,015,199

$        1,917,704

$        1,923,476

$        1,919,268







Return on average common equity

4.64 %

4.54 %

5.21 %

6.00 %

6.23 %

Return on tangible common equity

8.50 %

8.33 %

9.76 %

11.14 %

11.55 %

Adjusted return on average common equity (non-GAAP)

4.80 %

4.71 %

6.18 %

6.25 %

6.51 %

Adjusted return on tangible common equity (non-GAAP)

8.76 %

8.62 %

11.46 %

11.58 %

12.06 %







Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)












Noninterest expense (efficiency ratio numerator)

$           279,233

$           139,879

$           563,061

$           414,922

$           282,924

Certain noninterest expense items (non-GAAP)






Merger related costs

-

-

(1,420)

(1,420)

(1,415)

Early retirement program

(337)

(219)

(6,198)

(5,166)

(3,609)

FDIC Deposit Insurance special assessment

(1,832)

(1,549)

(10,521)

-

-

Termination of vendor and software services

(615)

-

-

-

-

Branch right sizing expense

(755)

(236)

(5,467)

(1,621)

(1,074)

Other real estate and foreclosure expense adjustment

(296)

(179)

(892)

(703)

(475)

Amortization of intangibles adjustment

(7,702)

(3,850)

(16,306)

(12,291)

(8,194)

Adjusted efficiency ratio numerator

$           267,696

$           133,846

$           522,257

$           393,721

$           268,157







Net interest income

$           305,811

$           151,906

$           650,126

$           494,498

$           341,065

Noninterest income

86,483

43,184

155,566

133,592

90,815

Fully tax-equivalent adjustment (effective tax rate of 26.135%)

12,998

6,422

25,443

18,932

12,417

Efficiency ratio denominator

405,292

201,512

831,135

647,022

444,297

Certain noninterest income items (non-GAAP)






Branch right sizing income

-

-

-

-

-

(Gain) loss on sale of securities

-

-

20,609

391

391

Adjusted efficiency ratio denominator

$           405,292

$           201,512

$           851,744

$           647,413

$           444,688







Efficiency ratio (1)

68.90 %

69.41 %

67.75 %

64.13 %

63.68 %

Adjusted efficiency ratio (non-GAAP) (1)

66.05 %

66.42 %

61.32 %

60.81 %

60.30 %







 (1) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues.  Adjusted efficiency

 ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest

 income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is
a non-GAAP measurement.

 (2) Effective tax rate of 26.135%.






 

        

SOURCE Simmons First National Corporation

For further information: Ed Bilek, EVP, Director of Investor and Media Relations, ed.bilek@simmonsbank.com or 205.612.3378 (cell)