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Press Release

Simmons Reports Second Quarter 2020 Earnings

Company Release - 7/21/2020 8:30 AM ET

PINE BLUFF, Ark., July 21, 2020 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or “Simmons”) today announced net income of $58.8 million for the quarter ended June 30, 2020, compared to $55.6 million for the same period in 2019, an increase of $3.2 million, or 5.7%. Diluted earnings per share were $0.54, a decrease of $0.04, or 6.9%, compared to the same period in the prior year. Included in second quarter 2020 results were $3.0 million in net after-tax merger-related, early retirement program and branch right-sizing costs as well as a $1.6 million after-tax gain associated with the sale of branches.

Excluding the impact of these items, core earnings were $60.1 million for the quarter ended June 30, 2020, compared to $65.5 million for the quarter ended June 30, 2019, a decrease of $5.3 million, or 8.1%. Core diluted earnings per share were $0.55, a decrease of $0.13, or 19.1%, from the same period in 2019.

Year-to-date net income for the first half of 2020 was $136.0 million, or $1.22 diluted earnings per share, compared to $103.3 million, or $1.09 diluted earnings per share, for the same period in 2019. Excluding $2.0 million in net after-tax merger-related, early retirement program and branch right-sizing costs and the gains on the sales of branches in south Texas and Colorado, year-to-date core earnings for 2020 were $134.0 million, an increase of $19.5 million compared to the same period last year. Core diluted earnings per share for the first half of 2020 were $1.21, equal to the same period in 2019.

“Our associates at Simmons Bank have done an amazing job of adapting to the changes that have occurred over the past four months,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “We continue to operate in an uncertain environment, and we will continue to adjust as necessary. We have consolidated various operations to provide capacity for continued service to our customers and communities. Our digital banking options have been very well received by our customers, and we expect to continue to see the trend toward more self-service. We need a sustainable plan for the opening of the economy, including public education across the country. We remain optimistic we will get one soon.”

Selected Highlights: 2nd Qtr 2020  1st Qtr 2020  2nd Qtr 2019 
Net income$58.8 million $77.2 million $55.6 million 
Diluted earnings per share$0.54 $0.68 $0.58 
Return on avg assets 1.08% 1.48% 1.28%
Return on avg common equity 8.21% 10.83% 9.48%
Return on tangible common equity (1) 14.55% 19.00% 17.40%
    
Core earnings (2)$60.1 million $73.8 million $65.5 million 
Core diluted earnings per share (2)$0.55 $0.65 $0.68 
Core return on avg assets (2) 1.11% 1.42% 1.51%
Core return on avg common equity (2) 8.40% 10.35% 11.16%
Core return on tangible common equity (1)(2) 14.87% 18.19% 20.36%
Efficiency ratio (3) 49.12% 56.38% 49.88%
Pre-tax, pre-provision (PTPP) earnings (2)$97.7 million $84.4 million $88.8 million 
          
  1. Return on tangible common equity excludes goodwill and other intangible assets and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
  2. Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
  3. Efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Loans

($ in billions)2nd Qtr 20201st Qtr 20202nd Qtr 2019
Total loans$14.61$14.37$13.13
       

Total loans were $14.6 billion at June 30, 2020, an increase of $1.5 billion, or 11.3%, compared to June 30, 2019, primarily due to The Landrum Company (“Landrum”) merger completed during the fourth quarter 2019. On a linked-quarter basis (June 30, 2020 compared to March 31, 2020), total loans increased $232.6 million, or 1.6%. During the second quarter of 2020, the Company had $963.7 million in loan originations under the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and an increase in agricultural loans of $26.2 million. These increases were partially offset by decreases in energy loan lending, commercial real estate and single-family real estate loan categories of $64.8 million, $149.7 million and $136.5 million, respectively. 

Deposits

($ in billions)2nd Qtr 20201st Qtr 20202nd Qtr 2019
Total deposits$16.6$15.6$13.5
Non-interest bearing deposits$4.6$3.6$2.9
Interest bearing deposits$9.0$8.8$7.3
Time deposits$3.0$3.2$3.3
       

Total deposits were $16.6 billion at June 30, 2020, an increase of $3.1 billion, or 22.9%, since June 30, 2019, primarily due to the Landrum merger. On a linked-quarter basis, total deposits increased $1.1 billion, or 6.8%, primarily due to the $1.0 billion increase in non-interest bearing deposits. This increase was partially offset by a decrease in brokered funds of $308.9 million during the second quarter.   

Net Interest Income

 2nd Qtr
2020
 1st Qtr
2020
 4th Qtr
2019
 3rd Qtr
2019
 2nd Qtr
2019
 
Loan yield (1)4.84%5.19%5.43%5.47%5.58%
Core loan yield (1) (2)4.52%4.86%5.00%5.19%5.26%
Security yield (1)2.50%2.63%2.73%2.87%3.06%
Cost of interest bearing deposits0.59%1.03%1.22%1.40%1.37%
Cost of deposits (3)0.44%0.80%0.94%1.09%1.07%
Cost of borrowed funds1.84%2.06%2.30%2.52%2.50%
Net interest margin (1)3.42%3.68%3.78%3.82%3.94%
Core net interest margin (1) (2)3.18%3.42%3.44%3.59%3.67%
           
  1. Fully tax equivalent using an effective tax rate of 26.135%.
  2. Core loan yield and core net interest margin exclude accretion and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
  3. Includes non-interest bearing deposits.

The Company’s net interest income for the second quarter of 2020 was $163.7 million, an increase of $14.3 million, or 9.5%, from the same period of 2019, primarily due to the 78 basis point decline in the cost of interest bearing deposits year over year. Included in interest income was the yield accretion recognized on loans acquired of $11.7 million and $10.2 million for the second quarters of 2020 and 2019, respectively.

The loan yield was 4.84% for the quarter ended June 30, 2020, while the core loan yield, which excludes the accretion, was 4.52% for the same period. The decrease in the loan yield during the second quarter of 2020 was primarily driven by the lower yielding PPP loans originated during the quarter. The PPP loan yield was approximately 2.33% (including accretion of net fees), which decreased the loan yield by approximately 10 basis points.

Net interest margin (FTE) was 3.42% for the quarter ended June 30, 2020, while the core net interest margin, which excludes the accretion, was 3.18% for the same period. The decrease in the net interest margin during the second quarter of 2020 was primarily driven by the additional liquidity and the lower yielding PPP loans, which decreased the net interest margin by approximately 25 basis points.

Non-Interest Income

Non-interest income for the second quarter of 2020 was $50.2 million, an increase of $10.3 million compared to the same period in the previous year. During the second quarter 2020, the Company recognized a $2.2 million gain associated with the sale of the branches recorded in other income, which the Company considers a non-core item.

The increase in non-interest income was primarily due to the increase in mortgage lending income driven by the current low mortgage interest rate environment. The decrease in service charges on deposit accounts was primarily attributable to a lower number of customer transactions, related to the impact of the COVID-19 pandemic.

Selected Non-Interest Income Items
($ in millions)
2nd Qtr
2020
1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
Service charges on deposit accounts$8.6$13.3$13.3$10.8$10.6
Mortgage lending income$12.5$5.0$4.0$4.5$3.7
SBA lending income$0.2$0.3$0.3$1.0$0.9
Debit and credit card fees$8.0$7.9$8.9$7.1$7.2
Gain on sale of securities$0.4$32.1$0.4$7.4$2.8
Other income$9.8$12.8$7.1$44.7$6.1
      
Core other income(1)$7.6$6.9$7.1$44.7$6.1
           
  1. Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Non-Interest Expense

Non-interest expense for the second quarter of 2020 was $112.6 million, an increase of $1.9 million compared to the second quarter of 2019. Included in this quarter were $4.0 million of pre-tax non-core items for merger-related, early retirement program and branch right-sizing costs. Excluding these expenses, core non-interest expense was $108.6 million for the second quarter of 2020, an increase of $11.2 million compared to the same period in 2019, primarily the result of the Landrum merger and additional software and technology costs related to the Company’s Next Generation Banking (“NGB”) initiative.

The efficiency ratio for the second quarter of 2020 was 49.12%, compared to 49.88% for the same period in 2019.

Selected Non-Interest Expense Items
($ in millions)
2nd Qtr
2020
1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
Salaries and employee benefits$57.6$67.9$63.2$52.1$56.1
Merger related costs$1.8$1.1$24.8$2.6$7.5
Other operating expenses$34.7$38.8$38.0$37.9$32.9
      
Core salaries and employee benefits(1)$57.2$67.9$63.2$51.9$53.2
Core merger related costs(1) - - - - -
Core other operating expenses(1)$33.0$38.6$38.0$37.8$30.0
           
  1. Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

On a linked-quarter basis, salaries and employee benefits decreased by $10.3 million, which included the impact of cost savings from the Landrum merger.  The decrease was primarily driven by the following categories:

  • Employee benefits - $3.1 million decrease (payroll taxes, insurance utilization, and other employee benefits)
  • Salaries - $2.3 million decrease
  • Incentive based plans - $4.9 million decrease (executive, lender and retail incentive plans)

On a linked-quarter basis, other operating expenses decreased $4.1 million. The remaining decrease was primarily related to cost savings from the Landrum merger and lower operating expenses due to the impact of COVID-19.

Early in 2020, the Company offered qualifying associates an early retirement option resulting in $493,000 of non-core expense during the second quarter. The Company expects ongoing net annualized savings of approximately $2.9 million.

Management continuously evaluates the Company’s branch network as part of its analysis of the profitability of the Company’s operations and the efficiency with which it delivers banking services to its markets. As a result of this ongoing evaluation, the Company closed 11 branch locations during June 2020, with estimated net annual cost savings of approximately $2.4 million related to these locations. In addition, the Company expects to close an additional 23 branch locations and one loan production office during the fourth quarter of 2020, with an expected net annual cost savings of approximately $6.8 million.

Asset Quality

 2nd Qtr
2020
1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
Allowance for credit losses to total loans1.59%1.69%0.47%0.51%0.49%
Allowance for credit losses to non-performing loans175%154%74%78%60%
Non-performing loans to total loans0.91%1.10%0.64%0.65%0.81%
Net charge-off ratio (annualized)1.04%0.07%0.09%0.59%0.11%
Net charge-off ratio YTD (annualized)0.56%0.07%0.24%0.30%0.15%

At June 30, 2020, the allowance for credit losses was $231.6 million. Provision for credit losses for the second quarter of 2020 was $26.9 million. Included in total loans was $963.7 million of government guaranteed PPP loans.  Excluding the PPP loans, the allowance for credit losses to total loans was 1.70%.

Net charge-offs for the second quarter of 2020 were $38.2 million, of which $32.6 million were from loans included in the energy lending portfolios acquired from Bank SNB and Southwest Bank in 2017.  Of the second quarter charge-offs, $27.8 million was specifically reserved for and included in the March 31, 2020 allowance for credit loss.  Therefore, additional provision related to these charges was not required.

Foreclosed Assets and Other Real Estate Owned

At June 30, 2020, foreclosed assets and other real estate owned were $14.1 million, decreases of $10.7 million, or 43.0%, compared to the same period in 2019 and $6.7 million, or 32.2% from March 31, 2020. The composition of these assets is divided into three types:      

 ($ in millions)2nd Qtr
2020
1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
Closed bank branches and branch sites$2.7$8.8$5.7$5.9$6.5
Foreclosed assets – acquired$9.2$9.2$10.3$10.1$13.3
Foreclosed assets – legacy$2.2$2.8$3.1$3.6$5.0
           

Capital

 2nd Qtr
2020
1st Qtr
2020
4th Qtr
2019
3rd Qtr
2019
2nd Qtr
2019
Stockholders’ equity to total assets13.3%13.7%14.1%14.3%13.8%
Tangible common equity to tangible assets(1)8.3%8.4%9.0%9.1%8.5%
Regulatory common equity tier 1 ratio11.9%11.1%10.9%10.3%9.8%
Regulatory tier 1 leverage ratio8.8%9.0%9.6%9.1%8.9%
Regulatory tier 1 risk-based capital ratio11.9%11.1%10.9%10.3%9.8%
Regulatory total risk-based capital ratio14.9%14.1%13.7%13.2%12.7%
           
  1. Tangible common equity to tangible assets is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

At June 30, 2020, common stockholders' equity was $2.9 billion. Book value per share was $26.64 and tangible book value per share was $15.79 at June 30, 2020. The ratio of stockholders’ equity to total assets was 13.3% at June 30, 2020 while the tangible common equity to tangible assets was 8.3% at June 30, 2020. As of June 30, 2020, PPP loans totaled $963.7 million, which are 100% federally guaranteed and have a zero percent risk-weight for regulatory capital ratios.  Excluding PPP loans from total assets, equity to total assets was 13.9%, tangible common equity to tangible assets was 8.7% and the regulatory tier 1 leverage ratio was 9.1%.

No shares have been repurchased under the Company’s stock repurchase program since March 31, 2020. Market conditions and the Company’s capital needs will drive the decisions regarding additional, future stock repurchases.

Digital Banking

Since the end of February 2020, the Company has added over 38,000 new digital banking users, a 23% increase.  More than 78% of deposit transaction accounts are now enrolled in digital banking.  For the first time, in March, the Company processed more weekly transactions using the digital channels than at the branches.  During May 2020, the Company completed the conversion of all consumer customers to the new online platform.  All consumer customers are now on the same online and mobile platforms, including acquired institutions.

COVID-19 Impact

Through June 30, 2020, the Company originated over 7,800 PPP loans with an average balance of $123,000 per loan.  Approximately 93% of the PPP loans had a balance less than $350,000.

PPP Loans
as of June 30, 2020
# of
Loans
 Balance
($ in millions)
 
Loan balance less than $350,0007,28693%$392.341%
Loan balance $350,000 or less than $2 million4786%$355.437%
Loan balance $2 million to $10 million621%$216.022%
Total7,826100%$963.7100%
        

In March and in response to the pandemic, the Company announced temporary closure of 52 branches and has been focusing on the enhanced digital banking experience.  While the majority of these branches have been reopened, the Company has continued to review its branch network.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $21.9 billion as of June 30, 2020, conducting financial operations in Arkansas, Illinois, Kansas, Missouri, Oklahoma, Tennessee and Texas. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock is listed on the NASDAQ Global Select Market under the symbol “SFNC.”

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT today, Tuesday, July 21, 2020. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 9275743. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with 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 income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches, early retirement program expenses and branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of PPP loans.  The Company’s management believes that these non-GAAP financial measures are useful to investors because they 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 normalizing for tax 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 core businesses. 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

Some of the statements in this news 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. Makris’s quotes, 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, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, NGB and other digital banking initiatives, the Company’s ability to recruit and retain key employees, the benefits associated with the Company’s early retirement program and completed and future branch closures, the adequacy of the allowance for credit losses, and the ability of the Company to manage the impact of the COVID-19 pandemic. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news 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, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons common stock specifically, and information technology affecting the financial industry; the effect of steps the Company takes in response to COVID-19, the severity and duration of the pandemic, including whether there is a “second wave” as a result of the loosening of governmental restrictions, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; unemployment; potential claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the CARES Act); changes in accounting principles relating to loan loss recognition (current expected credit losses, or CECL); the Company’s ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in its Form 10-K for the year ended December 31, 2019, which has been filed with, and is available from, the U.S. Securities and Exchange Commission.

FOR MORE INFORMATION CONTACT:
Stephen C. Massanelli
EVP, Chief Administrative Officer and Investor Relations Officer
Simmons First National Corporation
steve.massanelli@simmonsbank.com

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) 2020  2020  2019  2019  2019 
($ in thousands)     
ASSETS     
Cash and non-interest bearing balances due from banks$234,998 $244,123 $277,208 $161,440 $145,491 
Interest bearing balances due from banks and federal funds sold 2,310,162  1,493,076  719,415  368,530  509,765 
Cash and cash equivalents 2,545,160  1,737,199  996,623  529,970  655,256 
Interest bearing balances due from banks - time 4,561  4,309  4,554  5,041  5,041 
Investment securities - held-to-maturity 51,720  53,968  40,927  42,237  47,455 
Investment securities - available-for-sale 2,496,896  2,466,640  3,288,343  2,210,931  2,191,573 
Mortgage loans held for sale 120,034  49,984  58,102  50,099  34,999 
Other assets held for sale 399  115,315  260,332  383  397 
Loans:     
Loans 14,606,900  14,374,277  14,425,704  13,003,549  13,128,125 
Allowance for credit losses on loans (231,643) (243,195) (68,244) (66,590) (64,179)
Net loans 14,375,257  14,131,082  14,357,460  12,936,959  13,063,946 
Premises and equipment 478,896  484,990  492,384  378,678  370,551 
Premises held for sale 4,576  -  -  -  - 
Foreclosed assets and other real estate owned 14,111  20,805  19,121  19,576  24,761 
Interest receivable 79,772  57,039  62,707  53,966  54,781 
Bank owned life insurance 256,643  255,197  254,152  234,655  233,345 
Goodwill 1,064,765  1,064,978  1,055,520  926,648  926,450 
Other intangible assets 117,823  121,673  127,340  101,149  104,096 
Other assets 293,071  278,173  241,578  268,219  224,784 
Total assets$21,903,684 $20,841,352 $21,259,143 $17,758,511 $17,937,435 
                
LIABILITIES AND STOCKHOLDERS' EQUITY     
Deposits:     
Non-interest bearing transaction accounts$4,608,098 $3,572,244 $3,741,093 $3,044,330 $2,954,032 
Interest bearing transaction accounts and savings deposits 8,978,045  8,840,678  9,090,878  7,337,571  7,258,005 
Time deposits 3,029,975  3,146,811  3,276,969  3,086,108  3,304,176 
Total deposits 16,616,118  15,559,733  16,108,940  13,468,009  13,516,213 
Federal funds purchased and securities sold under agreements to repurchase 387,025  377,859  150,145  116,536  130,470 
Other borrowings 1,393,689  1,396,829  1,297,599  1,098,395  1,324,094 
Subordinated notes and debentures 382,604  388,396  388,260  354,223  354,132 
Other liabilities held for sale -  58,405  159,853  -  162 
Accrued interest and other liabilities 219,545  214,730  165,422  174,277  142,851 
Total liabilities 18,998,981  17,995,952  18,270,219  15,211,440  15,467,922 
                
Stockholders' equity:               
Preferred stock 767  767  767  -  - 
Common stock 1,090  1,090  1,136  966  966 
Surplus 2,029,383  2,026,420  2,117,282  1,708,058  1,705,262 
Undivided profits 819,153  778,893  848,848  814,338  747,969 
Accumulated other comprehensive income (loss):               
Unrealized accretion (depreciation) on AFS securities 54,310  38,230  20,891  23,709  15,316 
Total stockholders' equity 2,904,703  2,845,400  2,988,924  2,547,071  2,469,513 
Total liabilities and stockholders' equity$21,903,684 $20,841,352 $21,259,143 $17,758,511 $17,937,435 
                



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) 2020 2020 2019  2019 2019
($ in thousands, except per share data)     
INTEREST INCOME     
Loans$176,910$187,566$193,402 $179,971$178,122
Interest bearing balances due from banks and federal funds sold 603 2,441 2,625  1,586 1,121
Investment securities 13,473 18,943 16,962  14,467 15,666
Mortgage loans held for sale 668 281 402  382 332
TOTAL INTEREST INCOME 191,654 209,231 213,391  196,406 195,241
INTEREST EXPENSE           
Time deposits 10,803 13,323 16,198  15,573 14,606
Other deposits 7,203 17,954 20,331  21,363 20,190
Federal funds purchased and securities sold under agreements to repurchase 337 759 368  249 257
Other borrowings 4,963 4,877 4,615  5,381 6,219
Subordinated notes and debentures 4,667 4,835 4,813  4,576 4,541
TOTAL INTEREST EXPENSE 27,973 41,748 46,325  47,142 45,813
NET INTEREST INCOME 163,681 167,483 167,066  149,264 149,428
Provision for credit losses 26,915 26,134 4,903  21,973 7,079
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 136,766 141,349 162,163  127,291 142,349
NON-INTEREST INCOME           
Trust income 7,253 7,151 7,430  6,108 5,794
Service charges on deposit accounts 8,570 13,328 13,332  10,825 10,557
Other service charges and fees 1,489 1,588 1,915  1,308 1,312
Mortgage lending income 12,459 5,046 4,029  4,509 3,656
SBA lending income 245 296 321  956 895
Investment banking income 571 877 822  513 360
Debit and credit card fees 7,996 7,914 8,920  7,059 7,212
Bank owned life insurance income 1,445 1,298 1,411  1,302 1,260
Gain on sale of securities, net 390 32,095 377  7,374 2,823
Other income 9,809 12,801 7,073  44,721 6,065
TOTAL NON-INTEREST INCOME 50,227 82,394 45,630  84,675 39,934
NON-INTEREST EXPENSE           
Salaries and employee benefits 57,644 67,924 63,235  52,065 56,128
Occupancy expense, net 9,217 9,510 9,272  8,342 6,919
Furniture and equipment expense 6,144 5,723 5,758  4,898 4,206
Other real estate and foreclosure expense 274 325 1,089  1,125 591
Deposit insurance 2,838 2,475 (134) - 2,510
Merger-related costs 1,830 1,068 24,831  2,556 7,522
Other operating expenses 34,651 38,788 38,044  37,879 32,867
TOTAL NON-INTEREST EXPENSE 112,598 125,813 142,095  106,865 110,743
NET INCOME BEFORE INCOME TAXES 74,395 97,930 65,698  105,101 71,540
Provision for income taxes 15,593 20,694 12,976  23,275 15,616
NET INCOME 58,802 77,236 52,722  81,826 55,924
Preferred stock dividends 13 13 13  - 326
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$58,789$77,223$52,709 $81,826$55,598
BASIC EARNINGS PER SHARE$0.54$0.68$0.49 $0.85$0.58
DILUTED EARNINGS PER SHARE$0.54$0.68$0.49 $0.84$0.58
            


Simmons First National Corporation   SFNC
Consolidated Risk-Based Capital     
For the Quarters EndedJun 30Mar 31Dec 31Sep 30Jun 30
(Unaudited) 2020  2020  2019  2019  2019 
($ in thousands)     
Tier 1 capital     
Stockholders' equity$2,904,703 $2,845,400 $2,988,924 $2,547,071 $2,469,513 
CECL transition provision (1) 130,480  134,558  -  -  - 
Disallowed intangible assets, net of deferred tax (1,160,385) (1,164,038) (1,160,079) (1,013,309) (1,001,676)
Unrealized (gain) loss on AFS securities (54,310) (38,230) (20,891) (23,709) (15,316)
Total Tier 1 capital 1,820,488  1,777,690  1,807,954  1,510,053  1,452,521 
                
Tier 2 capital               
Trust preferred securities and subordinated debt 382,604  388,396  388,260  354,223  354,132 
Qualifying allowance for loan losses and reserve for unfunded commitments 83,780  96,015  76,644  74,455  72,044 
Total Tier 2 capital 466,384  484,411  464,904  428,678  426,176 
Total risk-based capital$2,286,872 $2,262,101 $2,272,858 $1,938,731 $1,878,697 
                
Risk weighted assets$15,362,175 $16,012,233 $16,554,081 $14,725,571