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Simmons First National Corporation Reports Record Quarterly Earnings of $83.3 million for the Fourth Quarter of 2022 and Earnings Per Diluted Share of $0.65

PINE BLUFF, Ark., Jan. 24, 2023 /PRNewswire/ --

George A. Makris, Jr., Simmons' Executive Chairman, commented on financial results

During 2022, we completed a number of strategic initiatives, including the successful merger and integration of Spirit of Texas Bancshares, Inc., and delivered solid financial results while also navigating a challenging interest rate environment. First, and foremost, we were able to meet the needs of our customers and the markets we serve as total loans increased $4.1 billion and total deposits increased $3.2 billion during the year. Solid balance sheet growth helped us achieve the highest level of revenue in Simmons' history. That growth did not come at the expense of maintaining our conservative underwriting standards as credit quality metrics remain at historically low levels.

Equally important, Simmons continued to maintain a strong capital position with all of our regulatory capital ratios significantly exceeding "well capitalized" levels. As a result, our Board of Directors approved a 5 percent increase in the cash dividend for the first quarter of 2023.  This marks the 114th consecutive year that Simmons has paid cash dividends to its shareholders, a record that less than 25 other U.S. publicly traded companies can match.

We have developed an outstanding management team – one that is deep on talent and experience, but also has a long runway ahead of them. Our foundation is strong and our team is prepared to capitalize on the opportunity to grow organically within our footprint and deliver on our "Better Bank" initiative focused on people, processes and systems.

 

Financial Highlights

   4Q22

    3Q22

    4Q21

 

Q4/Full Year 2022 Highlights

Financial Results (in millions)

       

• Q4 22 Diluted EPS of $0.65 and
adjusted diluted EPS (1) of $0.64

 

• ROA of 1.22%, ROE of 10.27%
& ROTCE(1) of 19.29% in Q4 22
 

 

• Record revenue of $887.4 million
in 2022, up 13% versus 2021

 

• Positive operating leverage driven
by 13% increase in pre-provision
net revenue(1) in FY22

 

• Solid balance sheet growth in
2022. Total loans up 3% and total
deposits up 2% in Q4 22 vs Q3 22

 

• Key credit quality metrics remain
at historically low levels while
adding more than $4.1 billion in
loans during 2022, including
loans added in connection with
the acquisition of Spirit of Texas
Bancshares, Inc.

 

• Maintained a strong capital
position as all regulatory capital
ratios are significantly above
"well capitalized" guidelines

 

• Announced 5% increase in the
cash dividend for Q1 23. This
marks the 114th consecutive year
paying cash dividends

Revenue

$237.7

$236.6

$199.7

 

Noninterest expense

142.6

138.9

141.6

 

Pre-provision net revenue (1)

95.2

97.7

58.4

 

Provision for credit losses

0.1

(1.3)

 

Net income

83.3

80.6

48.2

 

Per Share Data

       

Diluted earnings

$  0.65

$  0.63

$  0.42

 

Adjusted diluted earnings (1)

0.64

0.64

0.67

 

Book value

25.73

24.87

28.82

 

Tangible book value (1)

14.33

13.51

17.71

 

Balance Sheet (in millions)

       

Total loans

$16,142

$15,607

$12,013

 

Total deposits

22,548

22,149

19,367

 

Total shareholders' equity

3,269

3,157

3,249

 

Asset Quality

       

Net charge-off ratio

0.13 %

— %

0.31 %

 

Nonperforming loan ratio

0.37

0.37

0.57

 

Nonperforming assets to total assets

0.23

0.23

0.31

 

Allowance for credit losses to total loans

1.22

1.27

1.71

 

Nonperforming loan coverage ratio

334

342

300

 

Select Ratios

       

Return on average assets

1.22 %

1.19 %

0.77 %

 

Return on average common equity

10.27

9.71

5.87

 

Return on avg. tangible common equity (1)

19.29

17.99

9.98

 

Net interest margin (FTE) (2)

3.31

3.34

2.86

 

Efficiency ratio

58.33

57.22

68.98

 

Adjusted efficiency ratio (1)

56.97

54.41

59.48

 

Common equity tier 1 (CET1) ratio

11.90

11.73

13.82

 

Total risk-based capital ratio

14.22

14.08

16.75

 

 

Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported record quarterly net income of $83.3 million for the fourth quarter of 2022, compared to $80.6 million in the third quarter of 2022 and $48.2 million in the fourth quarter of 2021. Diluted earnings per share were $0.65 for the fourth quarter of 2022, compared to $0.63 per share in the third quarter of 2022 and $0.42 in the fourth quarter of 2021. Return on average assets was 1.22 percent, return on average common equity was 10.27 percent and return on average tangible common equity was 19.29 percent for the fourth quarter of 2022.

For the full year of 2022, earnings were $256.4 million, compared to $271.1 million earned during 2021. Results in 2021 were positively impacted by the recapture of provision for credit losses, gain on sales of securities and lower merger and integration expenses associated with acquisitions. Return on average assets was 0.97 percent, return on average common equity was 7.87 percent and return on average tangible common equity was 14.33 percent for the full year of 2022.

Adjusted earnings for the fourth quarter of 2022 were $81.1 million, compared to $82.3 million for the third quarter of 2022 and $76.2 million in the fourth quarter of 2021. Adjusted earnings for the full year of 2022 were a record $298.6 million, compared to $295.1 million for the full year of 2021. The table below provides a summary of certain items, consisting primarily of merger related costs, branch right-sizing costs, Day 2 accounting provision in connection with acquisitions and other items, and their corresponding impact on quarterly and annual results.

Total revenue for the fourth quarter of 2022 was $237.7 million, compared to $236.6 million in the third quarter for 2022 and $199.7 million in the fourth quarter of 2021. Pre-provision net revenue totaled $95.2 million, compared to $97.7 million in the third quarter of 2022 and $58.4 million in the fourth quarter of 2021. Total revenue for 2022 was a record $887.4 million and pre-provision net revenue was $320.9 million, up 13 percent compared to $284.3 million recorded in 2021.      

 

Impact of Certain Items on Earnings and Diluted EPS

 

$ in millions, except per share data

Q4 22

Q3 22

Q4 21

 

FY 22

FY 21

Net income

$83.3

$80.6

$48.2

 

$256.4

$271.2

             

Merger related costs

-

1.4

13.6

 

22.5

15.9

Day 2 CECL provision

-

-

22.7

 

33.8

22.7

Branch right sizing costs, net

1.1

1.3

1.6

 

3.6

(0.9)

Gain on insurance settlement

(4.1)

-

-

 

(4.1)

-

Loss from early retirement of TruPS

-

0.4

-

 

0.4

-

Gain on sale of intellectual property

-

(0.8)

-

 

(0.8)

-

Gain on sale of branches

-

-

-

 

-

(5.3)

Donation to Simmons First Foundation

-

-

-

 

1.7

-

Tax effect (3)

0.8

(0.6)

(9.9)

 

(14.9)

(8.5)

   Total impact on earnings

(2.2)

1.7

28.0

 

42.2

23.9

Adjusted earnings (1)

$81.1

$82.3

$76.2

 

$298.6

$295.1

             

Diluted EPS

$ 0.65

$ 0.63

$ 0.42

 

$2.06

$2.46

             

Merger related costs

-

0.01

0.12

 

0.18

0.15

Day 2 CECL provision

-

-

0.20

 

0.28

0.21

Branch right sizing costs, net

0.01

0.01

0.01

 

0.03

(0.01)

Gain on insurance settlement

(0.03)

-

-

 

(0.03)

-

Loss from early retirement of TruPS

-

-

-

 

-

-

Gain on sale of intellectual property

-

(0.1)

-

 

(0.1)

-

Gain on sale of branches

-

-

-

 

-

(0.5)

Donation to Simmons First Foundation

-

-

-

 

0.01

-

Tax effect (3)

0.01

-

(0.08)

 

(0.12)

(0.08)

   Total impact on earnings

(0.01)

0.01

0.25

 

0.34

0.22

Adjusted diluted EPS(1)

$0.64

$0.64

$0.67

 

$2.40

$2.68

             

Average diluted shares outstanding

(in thousands)

 

127,506

 

128,336

 

114,491

 

 

124,470

 

110,198

 

Net Interest Income

Net interest income for the fourth quarter of 2022 totaled $193.0 million, relatively unchanged from third quarter 2022 levels and up 26 percent compared to the fourth quarter of 2021. Included in net interest income is accretion recognized on assets acquired, which totaled $4.5 million in the fourth quarter of 2022 and $5.8 million in both the third quarter of 2022 and fourth quarter of 2021. Also included is net interest income from Paycheck Protection Program (PPP) loans totaling $0.1 million in the fourth quarter of 2022, $0.2 million in the third quarter of 2022 and $5.1 million in the fourth quarter of 2021. On a linked quarter basis, interest income increased $34.0 million, or 15 percent, while interest expense increased $34.5 million. The increase in interest expense reflected the continued impact of higher interest rates, as well as a strategic decision to extend the duration of certain wholesale deposit maturities to reduce funding cost rate sensitivity.

The yield on loans for the fourth quarter of 2022 was 5.40 percent, compared to 4.86 percent in the third quarter of 2022 and 4.58 percent in the fourth quarter of 2021. The yield on investment securities for the fourth quarter of 2022 was 2.68 percent, compared to 2.29 percent in the third quarter of 2022 and 1.74 percent in the fourth quarter of 2021. Cost of deposits for the fourth quarter of 2022 was 102 basis points, reflecting the higher interest rate environment, an increase in higher-rate time deposits and the strategic decision to extend the duration of certain wholesale deposit maturities that required prefunding cost to carry for a portion of the quarter. The net interest margin on a fully taxable equivalent basis for the fourth quarter of 2022 was 3.31 percent, compared to 3.34 percent for the third quarter of 2022 and 2.86 percent for the fourth quarter of 2021.

 

 

Q4 22

Q3 22

Q2 22

Q1 22

Q4 21

Loan yield (FTE) (2)

5.40 %

4.86 %

4.54 %

4.34 %

4.58 %

Investment securities yield (FTE) (2)

2.68

2.29

2.08

1.86

1.74

Cost of interest bearing deposits

1.41

0.65

0.25

0.19

0.23

Cost of deposits

1.02

0.47

0.18

0.14

0.17

Cost of borrowed funds

3.92

2.66

2.13

1.94

1.95

Net interest spread (FTE) (2)

2.87

3.11

3.11

2.66

2.74

Net interest margin (FTE) (2)

3.31

3.34

3.24

2.76

2.86

Net interest margin (FTE)

   excluding PPP (1) (2)

 

3.31

 

3.34

 

3.21

 

2.74

 

2.79

 

Noninterest Income

Noninterest income for the fourth quarter of 2022 was $44.6 million, compared to $43.0 million in the third quarter of 2022 and $46.6 million in the fourth quarter of 2021. Included in fourth quarter 2022 results is a $4.1 million gain on an insurance settlement related to a weather event that caused severe damage to one of our branch locations. The fourth quarter of 2021 included a $3.1 million gain in connection with a legal settlement. Adjusted noninterest income for the fourth quarter of 2022 was $40.6 million, compared to $42.7 million for the third quarter of 2022 and $46.6 million for the fourth quarter of 2021. The decrease in adjusted noninterest income on both a linked quarter basis and a year-over-year basis was primarily attributable to a decline in mortgage lending income, resulting from reduced activity throughout the housing industry given the dramatic increase in interest rates.   

 

Noninterest Income

$ in millions

Q4 22

Q3 22

Q2 22

Q1 22

Q4 21

Service charges on deposit accounts

$ 11.9

$ 12.6

$ 11.4

$ 10.7

$ 11.9

Wealth management fees

8.2

8.6

7.2

8.0

8.0

Debit and credit card fees

7.8

7.7

8.2

7.4

7.5

Mortgage lending income

1.1

2.6

2.2

4.6

5.0

Other service charges and fees

2.0

2.1

1.9

1.6

1.8

Bank owned life insurance

3.0

2.9

2.6

2.7

2.8

Gain (loss) on sale of securities

(0.1)

-

(0.2)

(0.1)

(0.3)

Gain on insurance settlement

4.1

-

-

-

-

Other income

6.6

6.7

6.8

7.3

10.0

           

Adjusted other income (1)

6.6

6.3

6.9

7.3

10.0

 

Noninterest Expense

Noninterest expense for the fourth quarter of 2022 was $142.6 million, compared to $138.9 million in the third quarter of 2022 and $141.6 million in the fourth quarter of 2021. Included in noninterest expense are certain items, primarily consisting of merger related and branch right sizing costs, totaling $1.1 million in the fourth quarter of 2022, $2.6 million in the third quarter of 2022 and $15.2 million in the fourth quarter of 2021. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest expense was $141.4 million in the fourth quarter of 2022, $136.4 million in the third quarter of 2022 and $126.4 million in the fourth quarter of 2021. The increase in adjusted noninterest expense on a linked quarter basis was primarily due to an increase in FDIC deposit assessment, state banking assessment and salaries and employee benefits which reflected certain incentive compensation accrual adjustments recorded in the third quarter of 2022. Expenses in the fourth quarter also included the amortization of certain tax credits, the offset of which is recorded in provision for income taxes. The increase in adjusted noninterest expense compared to the fourth quarter of 2021 primarily reflects the addition of Spirit of Texas Bancshares, Inc. (Spirit).

 

Noninterest Expense

$ in millions

Q4 22

Q3 22

Q2 22

Q1 22

Q4 21

Salaries and employee benefits

$73.0

$71.9

$74.1

$67.9

$63.8

Occupancy expense, net

11.6

11.7

11.0

10.0

11.0

Furniture and equipment

5.4

5.4

5.1

4.8

4.7

Deposit insurance

3.7

3.3

2.8

1.8

2.1

Other real estate and foreclosure expense

0.4

0.2

0.1

0.3

0.6

Merger related costs

-

1.4

19.1

1.9

13.6

Other operating expenses

48.5

45.1

44.5

41.6

45.7

           

Adjusted salaries and employee benefits (1)

73.0

71.9

74.1

67.9

63.8

Adjusted other operating expenses (1)

47.5

44.1

42.7

40.9

45.8

Efficiency ratio

58.33 %

57.22 %

67.77 %

66.39 %

68.98 %

Adjusted efficiency ratio (1)

56.97 %

54.41 %

56.74 %

62.95 %

59.48 %

 

Loans and Unfunded Loan Commitments

Total loans at the end of the fourth quarter of 2022 were $16.1 billion, up $535 million, or 3 percent, compared to $15.6 billion at the end of the third quarter of 2022. On a year-over-year basis, total loans were up $4.1 billion, or 34 percent, reflecting widespread loan growth throughout our geographic markets and in each of our core banking units, coupled with the acquisition of Spirit that was completed early in the second quarter of 2022. The increase in total loans more than offset declines in PPP loans, mortgage warehouse lending and planned declines in our energy portfolio. Loan growth in the fourth quarter of 2022 was weighted toward the latter half of the quarter as period-end loans exceeded average total loans of $15.9 billion for the fourth quarter of 2022.

Unfunded commitments at the end of the fourth quarter of 2022 were $5.0 billion, compared to $5.1 billion at the end of the third quarter of 2022 and $2.9 billion at the end of the fourth quarter of 2021. While unfunded commitments are considered a key indicator of future loan growth, softening prospects of economic growth given current market conditions and increased concerns of a potential recession in the U.S. have resulted in lower activity in our commercial loan pipeline. As such, our emphasis remains on maintaining prudent underwriting standards and disciplined pricing strategies. Commercial loans approved and ready to close at the end of the fourth quarter of 2022 totaled $270 million and the rate on ready to close commercial loans was 6.85 percent, up 101 basis points from the rate on ready to close commercial loans at the end of the third quarter of 2022.

 

  

$ in millions

Q4 22

Q3 22

Q2 22

Q1 22

Q4 21

Total loans

$16,142

$15,607

$15,110

$12,029

$12,013

           

PPP loans

$  9

$  12

$  19

$  62

$117

Mortgage warehouse loans

95

129

168

166

230

Energy loans

53

55

55

48

105

           

Unfunded loan commitments

$5,000

$5,138

$4,473

$3,428

$2,943

 

Deposits

Total deposits at the end of the fourth quarter of 2022 were $22.5 billion, compared to $22.1 billion at the end of the third quarter of 2022 and $19.4 billion at the end of the fourth quarter of 2021. Noninterest bearing deposits totaled $6.0 billion at the end of the fourth quarter of 2022, compared to $6.2 billion at the end of the third quarter of 2022 and $5.3 billion at the end of the fourth quarter of 2021. Noninterest bearing deposits represent 27 percent of total deposits at the end of the fourth quarter of 2022, compared to 28 percent at the end of the third quarter of 2022 and 27 percent at the end of the fourth quarter of 2021. Interest bearing transaction accounts (checking, savings and money market accounts) totaled $11.8 billion at the end of the fourth quarter of 2022, compared to $12.1 billion at the end of the third quarter of 2022 and $11.6 billion at the end of the fourth quarter of 2021. Time deposits totaled $4.8 billion at the end of the fourth quarter of 2022, compared to $3.8 billion at the end of the third quarter of 2022 and $2.5 billion at the end of the fourth quarter of 2021. The change in mix of deposits on a linked quarter basis was primarily attributable to a strategic decision to extend the duration of certain wholesale deposit maturities to reduce funding cost rate sensitivity. The loan to deposit ratio ended the fourth quarter of 2022 at 72 percent, compared to 70 percent at the end of the third quarter of 2022 and 62 percent at the end of the fourth quarter of 2021.

 

 

$ in millions

Q4 22

Q3 22

Q2 22

Q1 22

Q4 21

Noninterest bearing deposits

$   6,017

$   6,218

$  6,057

$   5,224

$  5,325

Interest bearing transaction accounts

11,763

12,104

12,816

12,106

11,589

Time deposits

4,768

3,827

3,163

2,062

2,453

   Total deposits

$22,548

$22,149

$22,036

$19,392

$19,367

           

Noninterest bearing deposits to total deposits

27 %

28 %

27 %

27 %

27 %

Total loans to total deposits

72

70

69

62

62

 

Asset Quality

During 2022, we experienced continuous improvement in a number of our key credit quality metrics, while also adding more than $4.1 billion in total loans. Total nonperforming loans at the end of the fourth quarter of 2022 were $58.9 million, compared to $57.8 million at the end of the third quarter of 2022 and $68.6 million at the end of the fourth quarter of 2021. Total nonperforming assets as a percentage of total assets were 0.23 percent at the end of the fourth quarter of 2022, compared to 0.23 percent at the end of the third quarter of 2022 and 0.31 percent at the end of the fourth quarter of 2021. Net charge-offs as a percentage of average loans for the fourth quarter of 2022 were 13 basis points, compared to 31 basis points for the fourth quarter of 2021. Loans acquired through acquisitions accounted for 6 of the 13 basis points of net charge-offs recorded in the fourth quarter of 2022. For the full year of 2022, net charge-offs were 9 basis points, compared to 13 basis points in 2021.

During 2022, provision for credit losses totaled $14.1 million, compared to provision recapture of $32.7 million in 2021. The allowance for credit losses on loans at the end of the fourth quarter of 2022 was $197.0 million, compared to $197.6 million at the end of the third quarter of 2022 and $205.3 million at the end of the fourth quarter of 2021. The nonperforming loan coverage ratio ended the quarter at 334 percent, compared to 342 percent at the end of the third quarter of 2022 and 300 percent at the end of the fourth quarter of 2021. The reserve for unfunded commitments totaled $41.9 million at the end of the fourth quarter of 2022, unchanged from third quarter 2022 levels and up from $22.4 million at the end of the fourth quarter of 2021.

 

 

$ in millions

Q4 22

Q3 22

Q2 22

Q1 22

Q4 21

Allowance for credit losses on loans to total loans

 

1.22 %

 

1.27 %

 

1.41 %

 

1.49 %

 

1.71 %

Allowance for credit losses on loans to nonperforming loans

 

334

 

342

 

334

 

278

 

300

Nonperforming loans to total loans

0.37

0.37

0.42

0.53

0.57

Net charge-off ratio (annualized)

0.13

-

0.02

0.22

0.31

Net charge-off ratio YTD (annualized)

0.09

0.07

0.11

0.22

0.13

           

Total nonperforming loans

$58.9

$57.8

$63.6

$64.3

$68.6

Total other nonperforming assets

3.6

4.7

6.4

6.6

7.7

   Total nonperforming assets

$62.5

$62.5

$70.0

$70.9

$76.3

           

Reserve for unfunded commitments

$41.9

$41.9

$25.9

$22.4

$22.4

 

Capital

Total common stockholders' equity at the end of the fourth quarter of 2022 was $3.3 billion, compared to $3.2 billion at the end of both the third quarter of 2022 and the fourth quarter of 2021. The increase in common stockholders' equity on a linked quarter basis reflected an increase in retained earnings and a decrease in the unrealized losses associated with investment securities classified as available-for-sale. Book value per share at the end of the fourth quarter of 2022 was $25.73, compared to $24.87 at the end of the third quarter of 2022 and $28.82 at the end of the fourth quarter of 2021. Tangible book value per share was $14.33 at the end of the fourth quarter of 2022, compared to $13.51 at the end of the third quarter of 2022 and $17.71 at the end of the fourth quarter of 2021. Stockholders' equity to total assets at December 31, 2022, was 11.9 percent, compared to 11.7 percent at September 30, 2022 and 13.1 percent at December 31, 2021. Tangible common equity to tangible assets was 7.0 percent at December 31, 2022, compared to 6.7 percent at September 30, 2022 and 8.5 percent at December 31, 2021. All of Simmons' regulatory capital ratios continue to significantly exceed "well-capitalized" guidelines.

 

 

Q4 22

Q3 22

Q2 22

Q1 22

Q4 21

Stockholders' equity to total assets

11.9 %

11.7 %

12.0 %

12.1 %

13.1 %

Tangible common equity to tangible assets (1)

 

7.0

 

6.7

 

7.0

 

7.4

 

8.5

Common equity tier 1 (CET1) ratio

11.9

11.7

12.1

13.5

13.8

Tier 1 leverage ratio

9.3

9.2

9.2

9.0

9.1

Tier 1 risk-based capital ratio

11.9

11.7

12.1

13.5

13.8

Total risk-based capital ratio

14.2

14.1

14.8

16.4

16.8

 

Share Repurchase Program and Cash Dividend

Simmons has a strong track record of returning capital to its shareholders through a strategic combination of cash dividends and share repurchases. During 2022, Simmons returned $205.1 million of capital to shareholders, including $94.1 million through the payment of cash dividends and $111.0 million through share repurchases. As a result of Simmons' solid capital position and its ability to organically generate capital, the board of directors declared a cash dividend on Simmons' Class A common stock for the first quarter of 2023 of $0.20 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 April 3, 2023, to shareholders of record as of March 15, 2023. The indicated annualized cash dividend rate of $0.80 for 2023 represents a ten-year compound annual growth rate of 7 percent and represents the 114th consecutive year that Simmons has paid cash dividends. According to research by Dividend Power, Simmons is one of only 24 U.S. publicly traded companies that have paid dividends for 100+ uninterrupted years. This marks the 12th consecutive year that Simmons has increased its dividend, earning it Dividend Power's designation as a "Dividend Contender," a title exclusively for companies that have increased their dividend for 10 to 24 consecutive years. As of December 16, 2022, Dividend Power research noted that Simmons is one of only 347 companies out of nearly 6,000 companies listed on the New York Stock Exchange (NYSE) and NASDAQ in 2022 to achieve this distinction.

During the fourth quarter of 2022, Simmons did not repurchase shares under its 2022 stock repurchase program (2022 Program). Remaining authorization under the 2022 Program as of December 31, 2022, was approximately $80 million. Market conditions and our capital needs will drive the decision regarding future stock repurchases; the timing, pricing and amount of any repurchases under the 2022 Program will be determined by Simmons' management at its discretion; and the 2022 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 using an effective tax rate of 26.135%

(3)

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, Tuesday, January 24, 2023. 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 10174103. 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 114 consecutive years. Its principal subsidiary, Simmons Bank, operates 230 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 2022, Simmons Bank was named to Forbes' list of "America's Best Banks" for the second consecutive year and was named to Forbes' list of "World's Best Banks" for the third consecutive year. Additional information about Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on 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 merger activity (primarily including merger-related expenses and Day 2 CECL provisions), gains and/or losses on sale of branches, net branch right-sizing initiatives, loss on redemption of trust preferred securities and gain on sale of intellectual property. 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 PPP loans, 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, the effects of the PPP, 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 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 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 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 and related governmental policies, 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 and has taken in response to the COVID-19 pandemic; the severity and duration of the COVID-19 pandemic 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; 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 conflict between Russia and Ukraine) or other major events, or the prospect of these events; increased inflation; the loss of key employees; increased competition in the markets in which the Company operates; 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 those transactions; 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, 2021, 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 of Simmons will approve a quarterly dividend in future quarters, and the timing, payment, and amount of future dividends (if any) may differ significantly from past dividends.

 

 

 Simmons First National Corporation 

       

 SFNC 

 Consolidated End of Period Balance Sheets 

       

 For the Quarters Ended 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

($ in thousands)

         

 ASSETS 

         

 Cash and noninterest bearing balances due from banks 

$         200,616

$         175,547

$         193,473

$         195,510

$         209,190

 Interest bearing balances due from banks and federal funds sold 

481,506

503,863

771,374

1,491,507

1,441,463

     Cash and cash equivalents 

682,122

679,410

964,847

1,687,017

1,650,653

 Interest bearing balances due from banks - time 

795

1,290

1,535

1,857

1,882

 Investment securities - held-to-maturity 

3,759,706

3,787,076

3,819,682

1,556,825

1,529,221

 Investment securities - available-for-sale 

3,852,854

3,937,543

4,341,647

6,640,069

7,113,545

 Mortgage loans held for sale 

3,486

12,759

14,437

18,206

36,356

 Other loans held for sale 

-

2,292

16,375

-

100

 Loans: 

         

 Loans 

16,142,124

15,607,135

15,110,344

12,028,593

12,012,503

 Allowance for credit losses on loans 

(196,955)

(197,589)

(212,611)

(178,924)

(205,332)

 Net loans 

15,945,169

15,409,546

14,897,733

11,849,669

11,807,171

 Premises and equipment 

548,741

549,932

553,062

486,531

483,469

 Foreclosed assets and other real estate owned 

2,887

3,612

4,084

5,118

6,032

 Interest receivable 

102,892

86,637

82,332

69,357

72,990

 Bank owned life insurance 

491,340

488,364

486,355

448,011

445,305

 Goodwill 

1,319,598

1,309,000

1,310,528

1,147,007

1,146,007

 Other intangible assets 

128,951

133,059

137,285

102,748

106,235

 Other assets 

622,520

675,554

588,707

469,853

325,793

 Total assets 

$    27,461,061

$    27,076,074

$    27,218,609

$    24,482,268

$    24,724,759

           

 LIABILITIES AND STOCKHOLDERS' EQUITY 

         

 Deposits: 

         

 Noninterest bearing transaction accounts 

$      6,016,651

$      6,218,283

$      6,057,186

$      5,223,862

$      5,325,318

 Interest bearing transaction accounts and savings deposits 

11,762,885

12,103,994

12,816,198

12,105,948

11,588,770

 Time deposits 

4,768,558

3,826,415

3,162,479

2,062,612

2,452,460

         Total deposits 

22,548,094

22,148,692

22,035,863

19,392,422

19,366,548

 Federal funds purchased and securities sold 

         

 under agreements to repurchase 

160,403

168,513

155,101

196,828

185,403

 Other borrowings 

859,296

964,772

1,060,244

1,337,243

1,337,973

 Subordinated notes and debentures 

365,989

365,951

421,693

384,242

384,131

 Accrued interest and other liabilities 

257,917

270,995

285,813

209,926

201,863

 Total liabilities 

24,191,699

23,918,923

23,958,714

21,520,661

21,475,918

           

 Stockholders' equity: 

         

 Preferred stock 

-

-

-

-

-

 Common stock 

1,270

1,269

1,288

1,125

1,127

 Surplus 

2,530,066

2,527,153

2,569,060

2,150,453

2,164,989

 Undivided profits 

1,255,586

1,196,459

1,139,975

1,136,990

1,093,270

 Accumulated other comprehensive (loss) income: 

         

 Unrealized (depreciation) appreciation on AFS securities 

(517,560)

(567,730)

(450,428)

(326,961)

(10,545)

 Total stockholders' equity 

3,269,362

3,157,151

3,259,895

2,961,607

3,248,841

 Total liabilities and stockholders' equity 

$    27,461,061

$    27,076,074

$    27,218,609

$    24,482,268

$    24,724,759

 

 

 Simmons First National Corporation 

       

 SFNC 

 Consolidated Statements of Income - Quarter-to-Date 

         

 For the Quarters Ended 

Dec 31

Sep 30

Jun 30

Mar 31

Dec 31

 (Unaudited) 

2022

2022

2022

2022

2021

($ in thousands, except per share data)

         

 INTEREST INCOME 

         

    Loans (including fees) 

$   216,091

$   187,347

$   163,578

$   127,176

$   137,564

    Interest bearing balances due from banks and federal funds sold 

2,593

1,141

1,117

649

583

    Investment securities 

45,689

40,954

37,848

33,712

32,275

    Mortgage loans held for sale 

152

178

200

190

310

    Other loans held for sale 

59

998

2,063

-

-

            TOTAL INTEREST INCOME 

264,584

230,618

204,806

161,727

170,732

 INTEREST EXPENSE 

         

    Time deposits 

22,434

8,204

2,875

2,503

3,705

    Other deposits 

34,615

17,225

6,879

4,314

4,390

    Federal funds purchased and securities 

         

      sold under agreements to repurchase 

449

305

119

68

72

    Other borrowings 

9,263

6,048

4,844

4,779

4,903

    Subordinated notes and debentures 

4,797

5,251

4,990

4,457

4,581

            TOTAL INTEREST EXPENSE 

71,558

37,033

19,707

16,121

17,651

 NET INTEREST INCOME 

193,026

193,585

185,099

145,606

153,081

    Provision for credit losses 

26

103

33,859

(19,914)

(1,308)

 NET INTEREST INCOME AFTER PROVISION 

         

    FOR CREDIT LOSSES 

193,000

193,482

151,240

165,520

154,389

 NONINTEREST INCOME 

         

    Service charges on deposit accounts 

11,892

12,560

11,379

10,696

11,909

    Debit and credit card fees 

7,845

7,685

8,224

7,449

7,460

    Wealth management fees 

8,151

8,562

7,214

7,968

8,042

    Mortgage lending income 

1,139

2,593

2,240

4,550

5,043

    Bank owned life insurance income 

2,975

2,902

2,563

2,706

2,768

    Other service charges and fees (includes insurance income) 

2,023

2,085

1,871

1,637

1,762

    Gain (loss) on sale of securities 

(52)

(22)

(150)

(54)

(348)

    Gain on insurance settlement 

4,074

-

-

-

-

    Other income 

6,600

6,658

6,837

7,266

9,965

            TOTAL NONINTEREST INCOME 

44,647

43,023

40,178

42,218

46,601

 NONINTEREST EXPENSE 

         

    Salaries and employee benefits 

73,018

71,923

74,135

67,906

63,832

    Occupancy expense, net 

11,620

11,674

11,004

10,023

11,033

    Furniture and equipment expense 

5,392

5,394

5,104

4,775

4,721

    Other real estate and foreclosure expense 

350

168

142

343

576

    Deposit insurance 

3,680

3,278

2,812

1,838

2,108

    Merger-related costs 

35

1,422

19,133

1,886

13,591

    Other operating expenses 

48,480

45,084

44,483

41,646

45,736

            TOTAL NONINTEREST EXPENSE 

142,575

138,943

156,813

128,417

141,597

 NET INCOME BEFORE INCOME TAXES 

95,072

97,562

34,605

79,321

59,393

    Provision for income taxes 

11,812

16,959

7,151

14,226

11,155

 NET INCOME 

83,260

80,603

27,454

65,095

48,238

    Preferred stock dividends 

-

-

-

-

8

 NET INCOME AVAILABLE TO COMMON STOCKHOLDERS 

$     83,260

$     80,603

$     27,454

$     65,095

$     48,230

 BASIC EARNINGS PER SHARE 

$         0.66

$         0.63

$         0.21

$         0.58

$         0.42

 DILUTED EARNINGS PER SHARE 

$         0.65

$         0.63

$         0.21

$         0.58

$         0.42

 

 

 Simmons First National Corporation 

     

 SFNC 

 Consolidated Risk-Based Capital 

       

 For the Quarters Ended 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

($ in thousands)

         

Tier 1 capital

         

   Stockholders' equity

$      3,269,362

$      3,157,151

$      3,259,895

$      2,961,607

$      3,248,841

   CECL transition provision (1)

92,619

92,619

92,619

92,619

114,458

   Disallowed intangible assets, net of deferred tax

(1,412,667)

(1,416,453)

(1,423,323)

(1,224,691)

(1,226,686)

   Unrealized loss (gain) on AFS securities

517,560

567,730

450,428

326,961

10,545

      Total Tier 1 capital

2,466,874

2,401,047

2,379,619

2,156,496

2,147,158

           

Tier 2 capital

         

   Subordinated notes and debentures

365,989

365,951

421,693

384,242

384,131

   Qualifying allowance for loan losses and

         

      reserve for unfunded commitments

115,627

116,257

114,733

78,057

71,853

      Total Tier 2 capital

481,616

482,208

536,426

462,299

455,984

      Total risk-based capital

$      2,948,490

$      2,883,255

$      2,916,045

$      2,618,795

$      2,603,142

           

Risk weighted assets

$    20,738,727

$    20,470,918

$    19,669,149

$    15,953,622

$    15,538,967

           

Adjusted average assets for leverage ratio

$    26,407,061

$    25,986,938

$    25,807,113

$    23,966,206

$    23,647,901

           

Ratios at end of quarter

         

   Equity to assets

11.91 %

11.66 %

11.98 %

12.10 %

13.14 %

   Tangible common equity to tangible assets (2)

7.00 %

6.69 %

7.03 %

7.37 %

8.51 %

   Common equity Tier 1 ratio (CET1)

11.90 %

11.73 %

12.10 %

13.52 %

13.82 %

   Tier 1 leverage ratio

9.34 %

9.24 %

9.22 %

9.00 %

9.08 %

   Tier 1 risk-based capital ratio

11.90 %

11.73 %

12.10 %

13.52 %

13.82 %

   Total risk-based capital ratio

14.22 %

14.08 %

14.83 %

16.42 %

16.75 %

           

(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 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

($ in thousands)

         

Investment Securities - End of Period

         

 Held-to-Maturity 

         

    U.S. Government agencies 

$        448,012

$        447,400

$        446,789

$        232,670

$        232,609

    Mortgage-backed securities 

1,190,781

1,214,882

1,244,713

112,496

70,342

    State and political subdivisions 

1,860,992

1,865,203

1,868,924

1,194,459

1,209,051

    Other securities 

259,921

259,591

259,256

17,200

17,219

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

3,759,706

3,787,076

3,819,682

1,556,825

1,529,221

 Available-for-Sale 

         

    U.S. Treasury 

$            2,197

$            2,191

$            1,441

$                 -

$               300

    U.S. Government agencies 

184,279

188,060

198,333

333,231

364,641

    Mortgage-backed securities 

2,542,902

2,670,348

2,963,934

4,166,108

4,448,616

    State and political subdivisions 

871,074

822,509

915,255

1,653,694

1,819,658

    Other securities 

252,402

254,435

262,684

487,036

480,330

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

3,852,854

3,937,543

4,341,647

6,640,069

7,113,545

       Total investment securities (net of credit losses) 

$     7,612,560

$     7,724,619

$     8,161,329

$     8,196,894

$     8,642,766

       Fair value - HTM investment securities 

$     3,063,233

$     2,984,040

$     3,278,962

$     1,307,058

$     1,517,378

 

 

 Simmons First National Corporation 

     

 SFNC 

 Consolidated Loans 

         

 For the Quarters Ended 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

($ in thousands)

         

Loan Portfolio - End of Period

         

 Consumer: 

         

    Credit cards 

$         196,928

$         192,559

$         189,684

$         184,372

$         187,052

    Other consumer 

152,882

180,604

204,692

180,602

168,318

 Total consumer 

349,810

373,163

394,376

364,974

355,370

 Real Estate: 

         

    Construction 

2,566,649

2,372,294

2,082,688

1,423,445

1,326,371

    Single-family residential 

2,546,115

2,467,008

2,357,942

2,042,978

2,101,975

    Other commercial real estate 

7,468,498

7,249,891

7,082,055

5,762,567

5,738,904

 Total real estate 

12,581,262

12,089,193

11,522,685

9,228,990

9,167,250

 Commercial: 

         

    Commercial 

2,632,290

2,525,218

2,612,256

2,016,405

1,992,043

    Agricultural 

205,623

263,539

218,743

150,465

168,717

 Total commercial 

2,837,913

2,788,757

2,830,999

2,166,870

2,160,760

 Other 

373,139

356,022

362,284

267,759

329,123

       Total loans 

$    16,142,124

$    15,607,135

$    15,110,344

$    12,028,593

$    12,012,503

 

 

 Simmons First National Corporation 

     

 SFNC 

 Consolidated Allowance and Asset Quality 

         

 For the Quarters Ended 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

($ in thousands)

         

Allowance for Credit Losses on Loans

         

 Beginning balance 

$      197,589

$      212,611

$      178,924

$      205,332

$      202,508

           

 Day 1 PCD allowance from acquisitions: 

         

    Landmark (10/08/2021) 

-

-

-

-

2,359

    Triumph (10/08/2021) 

-

-

-

-

11,092

    Spirit of Texas (04/08/2022) 

4,523

1,057

4,043

-

-

       Total Day 1 PCD allowance 

4,523

1,057

4,043

-

13,451

           

 Loans charged off: 

         

    Credit cards 

1,035

903

1,004

920

865

    Other consumer 

439

505

518

414

477

    Real estate 

3,392

130

115

485

2,624

    Commercial 

5,389

1,874

688

6,319

8,513

       Total loans charged off 

10,255

3,412

2,325

8,138

12,479

           

 Recoveries of loans previously charged off: 

         

    Credit cards 

251

250

249

274

247

    Other consumer 

230

278

302

387

267

    Real estate 

4,117

1,982

391

426

916

    Commercial 

475

720

621

557

1,730

       Total recoveries 

5,073

3,230

1,563

1,644

3,160

    Net loans charged off 

5,182

182

762

6,494

9,319

 Provision for credit losses on loans 

25

(15,897)

30,406

(19,914)

(1,308)

 Balance, end of quarter 

$      196,955

$      197,589

$      212,611

$      178,924

$      205,332

           

Nonperforming assets

         

 Nonperforming loans: 

         

    Nonaccrual loans 

$        58,434

$        57,534

$        62,670

$        64,096

$        68,204

    Loans past due 90 days or more 

507

242

904

240

349

       Total nonperforming loans 

58,941

57,776

63,574

64,336

68,553

 Other nonperforming assets: 

         

   Foreclosed assets and other real estate owned

2,887

3,612

4,084

5,118

6,032

    Other nonperforming assets 

644

1,146

2,314

1,479

1,667

       Total other nonperforming assets 

3,531

4,758

6,398

6,597

7,699

          Total nonperforming assets 

$        62,472

$        62,534

$        69,972

$        70,933

$        76,252

 Performing TDRs (troubled debt restructurings) 

$          1,849

$          1,869

$          2,655

$          3,424

$          4,289

           

Ratios

         

 Allowance for credit losses on loans to total loans 

1.22 %

1.27 %

1.41 %

1.49 %

1.71 %

 Allowance for credit losses to nonperforming loans 

334 %

342 %

334 %

278 %

300 %

 Nonperforming loans to total loans 

0.37 %

0.37 %

0.42 %

0.53 %

0.57 %

 Nonperforming assets (including performing TDRs) 

         

   to total assets 

0.23 %

0.24 %

0.27 %

0.30 %

0.33 %

 Nonperforming assets to total assets 

0.23 %

0.23 %

0.26 %

0.29 %

0.31 %

 Annualized net charge offs to average loans (QTD) 

0.13 %

0.00 %

0.02 %

0.22 %

0.31 %

 Annualized net charge offs to average loans (YTD) 

0.09 %

0.07 %

0.11 %

0.22 %

0.13 %

 Annualized net credit card charge offs to 

         

   average credit card loans 

1.52 %

1.30 %

1.55 %

1.39 %

1.29 %

 

 

 Simmons First National Corporation 

         

 SFNC 

 Consolidated - Average Balance Sheet and Net Interest Income Analysis 

         

 For the Quarters Ended 

                 

 (Unaudited) 

                     
 

 Three Months Ended
Dec 2022 

 

 Three Months Ended
Sep 2022 

 

 Three Months Ended
Dec 2021 

 ($ 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

$          361,856

$       2,593

2.84 %

 

$         327,841

$       1,141

1.38 %

 

$      1,484,752

$          583

0.16 %

   Investment securities - taxable

5,085,960

29,645

2.31 %

 

5,408,189

24,848

1.82 %

 

5,790,429

17,186

1.18 %

   Investment securities - non-taxable (FTE)

2,582,050

22,123

3.40 %

 

2,665,515

21,805

3.25 %

 

2,787,301

20,470

2.91 %

   Mortgage loans held for sale

8,601

152

7.01 %

 

13,280

178

5.32 %

 

42,866

310

2.87 %

   Other loans held for sale

1,704

59

13.74 %

 

9,439

998

41.95 %

 

-

-

0.00 %

   Loans - including fees (FTE)

15,929,957

216,782

5.40 %

 

15,320,833

187,851

4.86 %

 

11,924,444

137,762

4.58 %

      Total interest earning assets (FTE)

23,970,128

271,354

4.49 %

 

23,745,097

236,821

3.96 %

 

22,029,792

176,311

3.18 %

   Non-earning assets

3,210,447

     

3,123,634

     

2,668,230

   

     Total assets

$     27,180,575

     

$    26,868,731

     

$    24,698,022

   
                       

LIABILITIES AND STOCKHOLDERS' EQUITY

                   

Interest bearing liabilities:

                     

   Interest bearing transaction and

                     

     savings accounts

$     11,859,322

$     34,615

1.16 %

 

$    12,264,655

$     17,225

0.56 %

 

$    11,413,325

$       4,390

0.15 %

   Time deposits

4,212,271

22,434

2.11 %

 

3,314,948

8,204

0.98 %

 

2,607,011

3,705

0.56 %

      Total interest bearing deposits

16,071,593

57,049

1.41 %

 

15,579,603

25,429

0.65 %

 

14,020,336

8,095

0.23 %

   Federal funds purchased and securities

                     

     sold under agreement to repurchase

178,948

449

1.00 %

 

196,047

305

0.62 %

 

223,008

72

0.13 %

   Other borrowings

923,189

9,263

3.98 %

 

1,123,797

6,048

2.14 %

 

1,340,825

4,903

1.45 %

   Subordinated notes and debentures

365,971

4,797

5.20 %

 

411,018

5,251

5.07 %

 

383,489

4,581

4.74 %

      Total interest bearing liabilities

17,539,701

71,558

1.62 %

 

17,310,465

37,033

0.85 %

 

15,967,658

17,651

0.44 %

Noninterest bearing liabilities:

                     

   Noninterest bearing deposits

6,161,732

     

6,022,899

     

5,288,933

   

   Other liabilities

264,230

     

243,296

     

179,362

   

      Total liabilities

23,965,663

     

23,576,660

     

21,435,953

   

Stockholders' equity

3,214,912

     

3,292,071

     

3,262,069

   

      Total liabilities and stockholders' equity

$     27,180,575

     

$    26,868,731

     

$    24,698,022

   

Net interest income (FTE)

 

$   199,796

     

$   199,788

     

$   158,660

 

Net interest spread (FTE)

   

2.87 %

     

3.11 %

     

2.74 %

Net interest margin (FTE)

   

3.31 %

     

3.34 %

     

2.86 %

 

 

 Simmons First National Corporation 

     

 SFNC 

 Consolidated - Selected Financial Data

       

 For the Quarters Ended 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

($ in thousands, except share data)

         

QUARTER-TO-DATE

         

Financial Highlights - As Reported

         

Net Income

$            83,260

$           80,603

$           27,454

$           65,095

$           48,230

Diluted earnings per share

0.65

0.63

0.21

0.58

0.42

Return on average assets

1.22 %

1.19 %

0.41 %

1.06 %

0.77 %

Return on average common equity

10.27 %

9.71 %

3.28 %

8.33 %

5.87 %

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

19.29 %

17.99 %

6.28 %

14.31 %

9.98 %

Net interest margin (FTE)

3.31 %

3.34 %

3.24 %

2.76 %

2.86 %

Efficiency ratio (2)

58.33 %

57.22 %

67.77 %

66.39 %

68.98 %

FTE adjustment

6,770

6,203

6,096

5,602

5,579

Average diluted shares outstanding

127,505,996

128,336,422

128,720,078

113,026,911

114,491,119

Shares repurchased under plan

-

1,883,713

2,035,324

513,725

2,625,348

Average price of shares repurchased

-

23.91

24.59

31.25

29.69

Cash dividends declared per common share

0.190

0.190

0.190

0.190

0.180

Accretable yield on acquired loans

4,473

5,834

9,898

3,703

5,758

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

         

Adjusted earnings

$            81,093

$           82,281

$           68,102

$           67,159

$           76,244

Adjusted diluted earnings per share

0.64

0.64

0.53

0.59

0.67

Adjusted return on average assets

1.18 %

1.21 %

1.02 %

1.10 %

1.22 %

Adjusted return on average common equity

10.01 %

9.92 %

8.13 %

8.59 %

9.27 %

Adjusted return on tangible common equity

18.81 %

18.35 %

14.65 %

14.74 %

15.49 %

Adjusted efficiency ratio (2)

56.97 %

54.41 %

56.74 %

62.95 %

59.48 %

YEAR-TO-DATE

         

Financial Highlights - GAAP

         

Net Income

$          256,412

$         173,152

$           92,549

$           65,095

$         271,109

Diluted earnings per share

2.06

1.40

0.77

0.58

2.46

Return on average assets

0.97 %

0.88 %

0.72 %

1.06 %

1.15 %

Return on average common equity

7.87 %

7.07 %

5.71 %

8.33 %

8.83 %

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

14.33 %

12.77 %

10.24 %

14.31 %

14.99 %

Net interest margin (FTE)

3.17 %

3.12 %

3.01 %

2.76 %

2.89 %

Efficiency ratio (2)

62.14 %

63.54 %

67.14 %

66.39 %

60.25 %

FTE adjustment

24,671

17,901

11,698

5,602

19,231

Average diluted shares outstanding

124,470,184

123,387,503

120,826,798

113,026,911

110,198,094

Cash dividends declared per common share

0.760

0.570

0.380

0.190

0.720

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

         

Adjusted earnings

$          298,635

$         217,542

$         135,261

$           67,159

$         295,024

Adjusted diluted earnings per share

2.40

1.76

1.12

0.59

2.68

Adjusted return on average assets

1.13 %

1.11 %

1.06 %

1.10 %

1.26 %

Adjusted return on average common equity

9.16 %

8.88 %

8.35 %

8.59 %

9.61 %

Adjusted return on tangible common equity

16.59 %

15.89 %

14.70 %

14.74 %

16.27 %

Adjusted efficiency ratio (2)

57.50 %

57.69 %

59.56 %

62.95 %

57.92 %

END OF PERIOD

         

Book value per share

$              25.73

$             24.87

$             25.31

$             26.32

$             28.82

Tangible book value per share

14.33

13.51

14.07

15.22

17.71

Shares outstanding

127,046,654

126,943,467

128,787,764

112,505,555

112,715,444

Full-time equivalent employees

3,236

3,206

3,233

2,893

2,877

Total number of financial centers

230

230

233

197

199

           

 (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 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

 (in thousands, except per share data) 

         

QUARTER-TO-DATE

         

Net income available to common stockholders

$          83,260

$          80,603

$          27,454

$          65,095

$          48,230

 Certain items: 

         

(Gain) loss from early retirement of TruPS

-

365

-

-

-

Gain on sale of intellectual property

-

(750)

-

-

-

Gain on insurance settlement

(4,074)

-

-

-

-

Donation to Simmons First Foundation

-

-

1,738

-

-

Merger related costs

35

1,422

19,133

1,886

13,591

Branch right sizing (net)

1,104

1,235

380

909

1,648

Day 2 CECL provision

-

-

33,779

-

22,688

Tax effect (1)

768

(594)

(14,382)

(731)

(9,913)

    Certain items, net of tax 

(2,167)

1,678

40,648

2,064

28,014

 Adjusted earnings (non-GAAP) 

$          81,093

$          82,281

$          68,102

$          67,159

$          76,244

           

 Diluted earnings per share 

$              0.65

$              0.63

$              0.21

$              0.58

$              0.42

 Certain items: 

         

(Gain) loss from early retirement of TruPS

-

-

-

-

-

Gain on sale of intellectual property

-

(0.01)

-

-

-

Gain on insurance settlement

(0.03)

       

Donation to Simmons First Foundation

-

-

0.01

-

-

Merger related costs

-

0.01

0.15

0.01

0.12

Branch right sizing (net)

0.01

0.01

-

0.01

0.01

Day 2 CECL provision

-

-

0.27

 

0.20

Tax effect (1)

0.01

-

(0.11)

(0.01)

(0.08)

    Certain items, net of tax 

(0.01)

0.01

0.32

0.01

0.25

 Adjusted diluted earnings per share (non-GAAP) 

$              0.64

$              0.64

$              0.53

$              0.59

$              0.67

           

 (1) Effective tax rate of 26.135%. 

     
           

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

   
           

QUARTER-TO-DATE

         

    Noninterest income 

$          44,647

$          43,023

$          40,178

$          42,218

$          46,601

Certain noninterest income items (1)

         

Gain on insurance settlement

(4,074)

-

-

-

-

(Gain) loss from early retirement of TruPS

-

365

-

-

-

Gain on sale of intellectual property

-

(750)

-

-

-

Gain on sale of branches

-

-

-

-

-

Branch right sizing income

-

65

88

-

(2)

    Adjusted noninterest income (non-GAAP) 

$          40,573

$          42,703

$          40,266

$          42,218

$          46,599

           

    Other income 

$            6,600

$            6,658

$            6,837

$            7,266

$            9,965

Certain other income items (1)

         

(Gain) loss from early retirement of TruPS

-

365

-

-

-

Gain on sale of intellectual property

-

(750)

-

-

-

Gain on sale of branches

-

-

-

-

-

Branch right sizing income

-

65

88

-

(2)

    Adjusted other income (non-GAAP) 

$            6,600

$            6,338

$            6,925

$            7,266

$            9,963

           

    Noninterest expense 

$        142,575

$        138,943

$        156,813

$        128,417

$        141,597

Certain noninterest expense items (1)

         

Merger related costs

(35)

(1,422)

(19,133)

(1,886)

(13,591)

Donation to Simmons First Foundation

-

-

(1,738)

-

-

Branch right sizing expense

(1,104)

(1,170)

(292)

(909)

(1,650)

    Adjusted noninterest expense (non-GAAP) 

$        141,436

$        136,351

$        135,650

$        125,622

$        126,356

           

    Salaries and employee benefits 

$          73,018

$          71,923

$          74,135

$          67,906

$          63,832

Certain salaries and employee benefits items (1)

         

Early retirement program

-

-

-

-

-

Change-in-control payments

-

-

-

-

-

    Adjusted salaries and employee benefits (non-GAAP) 

$          73,018

$          71,923

$          74,135

$          67,906

$          63,832

           

    Other operating expenses 

$          48,480

$          45,084

$          44,483

$          41,646

$          45,736

Certain other operating expenses items (1)

         

Donation to Simmons First Foundation

-

-

(1,738)

-

-

Branch right sizing expense

(953)

(973)

(7)

(717)

96

    Adjusted other operating expenses (non-GAAP) 

$          47,527

$          44,111

$          42,738

$          40,929

$          45,832

           

 (1) Certain items include gain from early retirement of trust preferred securities, gain on sale of intellectual property, gain on 

 sale of branches, gain on insurance settlement, merger related costs, branch right sizing costs and Day 2 CECL provision. 

 

 

 Simmons First National Corporation 

     

 SFNC 

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

 

 For the Quarters Ended 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

 (in thousands, except per share data) 

         

YEAR-TO-DATE

         

Net income available to common stockholders

$        256,412

$        173,152

$          92,549

$          65,095

$        271,109

 Certain items: 

         

Gain on sale of branches

-

-

-

-

(5,316)

(Gain) loss from early retirement of TruPS

365

365

-

-

-

Gain on sale of intellectual property

(750)

(750)

-

-

-

Gain on insurance settlement

(4,074)

-

-

-

-

Donation to Simmons First Foundation

1,738

1,738

1,738

-

-

Merger related costs

22,476

22,441

21,019

1,886

15,911

Branch right sizing (net)

3,628

2,524

1,289

909

(906)

Day 2 CECL provision

33,779

33,779

33,779

-

22,688

Tax effect (1)

(14,939)

(15,707)

(15,113)

(731)

(8,462)

    Certain items, net of tax 

42,223

44,390

42,712

2,064

23,915

 Adjusted earnings (non-GAAP) 

$        298,635

$        217,542

$        135,261

$          67,159

$        295,024

           

 Diluted earnings per share 

$              2.06

$              1.40

$              0.77

$              0.58

$              2.46

 Certain items: 

         

Gain on sale of branches

-

-

-

-

(0.05)

(Gain) loss from early retirement of TruPS

-

-

-

-

-

Gain on sale of intellectual property

(0.01)

(0.01)

-

-

-

Gain on insurance settlement

(0.03)

-

-

-

-

Donation to Simmons First Foundation

0.01

0.01

0.01

-

-

Merger related costs

0.18

0.18

0.17

0.01

0.15

Branch right sizing (net)

0.03

0.02

0.01

0.01

(0.01)

Day 2 CECL provision

0.28

0.28

0.28

 

0.21

Tax effect (1)

(0.12)

(0.12)

(0.12)

(0.01)

(0.08)

    Certain items, net of tax 

0.34

0.36

0.35

0.01

0.22

 Adjusted diluted earnings per share (non-GAAP) 

$              2.40

$              1.76

$              1.12

$              0.59

$              2.68

           

 (1) Effective tax rate of 26.135%. 

       
           

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

 
           

YEAR-TO-DATE

         

    Noninterest income 

$        170,066

$        125,419

$          82,396

$          42,218

$        191,815

Certain noninterest income items (1)

         

Gain on insurance settlement

(4,074)

-

-

-

-

(Gain) loss from early retirement of TruPS

365

365

-

-

-

Gain on sale of intellectual property

(750)

(750)

-

-

-

Gain on sale of branches

-

-

-

-

(5,316)

Branch right sizing income

153

153

88

-

(369)

    Adjusted noninterest income (non-GAAP) 

$        165,760

$        125,187

$          82,484

$          42,218

$        186,130

           

    Other income 

$          27,361

$          20,761

$          14,103

$            7,266

$          35,273

Certain other income items (1)

         

(Gain) loss from early retirement of TruPS

365

365

-

-

-

Gain on sale of intellectual property

(750)

(750)

-

-

-

Gain on sale of branches

-

-

-

-

(5,316)

Branch right sizing income

153

153

88

-

(369)

    Adjusted other income (non-GAAP) 

$          27,129

$          20,529

$          14,191

$            7,266

$          29,588

           

    Noninterest expense 

$        566,748

$        424,173

$        285,230

$        128,417

$        483,589

Certain noninterest expense items (1)

         

Merger related costs

(22,476)

(22,441)

(21,019)

(1,886)

(15,911)

Donation to Simmons First Foundation

(1,738)

(1,738)

(1,738)

-

-

Branch right sizing expense

(3,475)

(2,371)

(1,201)

(909)

537

    Adjusted noninterest expense (non-GAAP) 

$        539,059

$        397,623

$        261,272

$        125,622

$        468,215

           

    Salaries and employee benefits 

$        286,982

$        213,964

$        142,041

$          67,906

$        246,335

Certain salaries and employee benefits items (1)

         

Early retirement program

-

-

-

-

-

Change-in-control payments

-

-

-

-

-

    Adjusted salaries and employee benefits (non-GAAP) 

$        286,982

$        213,964

$        142,041

$          67,906

$        246,269

           

    Other operating expenses 

$        179,693

$        131,213

$          86,129

$          41,646

$        153,562

Certain other operating expenses items (1)

         

Donation to Simmons First Foundation

(1,738)

(1,738)

(1,738)

-

-

Branch right sizing expense

(2,650)

(1,697)

(724)

(717)

3,558

    Adjusted other operating expenses (non-GAAP) 

$        175,305

$        127,778

$          83,667

$          40,929

$        157,120

           

 (1) Certain items include gain from early retirement of trust preferred securities, gain on sale of intellectual property, gain on 

 sale of branches, gain on insurance settlement, merger related costs, branch right sizing costs and Day 2 CECL provision. 

 

 

Simmons First National Corporation

       

 SFNC 

 Reconciliation Of Non-GAAP Financial Measures - End of Period 

   

 For the Quarters Ended 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

($ 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

$      3,269,362

$      3,157,151

$      3,259,895

$      2,961,607

$      3,248,841

Intangible assets:

         

   Goodwill

(1,319,598)

(1,309,000)

(1,310,528)

(1,147,007)

(1,146,007)

   Other intangible assets

(128,951)

(133,059)

(137,285)

(102,748)

(106,235)

Total intangibles

(1,448,549)

(1,442,059)

(1,447,813)

(1,249,755)

(1,252,242)

Tangible common stockholders' equity

$      1,820,813

$      1,715,092

$      1,812,082

$      1,711,852

$      1,996,599

           

Total assets

$    27,461,061

$    27,076,074

$    27,218,609

$    24,482,268

$    24,724,759

Intangible assets:

         

   Goodwill

(1,319,598)

(1,309,000)

(1,310,528)

(1,147,007)

(1,146,007)

   Other intangible assets

(128,951)

(133,059)

(137,285)

(102,748)

(106,235)

Total intangibles

(1,448,549)

(1,442,059)

(1,447,813)

(1,249,755)

(1,252,242)

Tangible assets

$    26,012,512

$    25,634,015

$    25,770,796

$    23,232,513

$    23,472,517

           

Ratio of common equity to assets

11.91 %

11.66 %

11.98 %

12.10 %

13.14 %

Ratio of tangible common equity to tangible assets

7.00 %

6.69 %

7.03 %

7.37 %

8.51 %

           

Calculation of Tangible Book Value per Share

         
           

Total common stockholders' equity

$      3,269,362

$      3,157,151

$      3,259,895

$      2,961,607

$      3,248,841

Intangible assets:

         

   Goodwill

(1,319,598)

(1,309,000)

(1,310,528)

(1,147,007)

(1,146,007)

   Other intangible assets

(128,951)

(133,059)

(137,285)

(102,748)

(106,235)

Total intangibles

(1,448,549)

(1,442,059)

(1,447,813)

(1,249,755)

(1,252,242)

Tangible common stockholders' equity

$      1,820,813

$      1,715,092

$      1,812,082

$      1,711,852

$      1,996,599

Shares of common stock outstanding

127,046,654

126,943,467

128,787,764

112,505,555

112,715,444

Book value per common share

$             25.73

$             24.87

$             25.31

$             26.32

$             28.82

Tangible book value per common share

$             14.33

$             13.51

$             14.07

$             15.22

$             17.71

 

 

Simmons First National Corporation

       

 SFNC 

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

       

 For the Quarters Ended 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

($ in thousands)

         

Calculation of Adjusted Return on Average Assets

         
           

Net income available to common stockholders

$               83,260

$               80,603

$               27,454

$               65,095

$               48,230

Certain items (non-GAAP)

         

(Gain) loss from early retirement of TruPS

-

365

-

-

-

Gain on sale of intellectual property

-

(750)

-

-

-

Gain on insurance settlement

(4,074)

-

-

-

-

Donation to Simmons First Foundation

-

-

1,738

-

-

Merger related costs

35

1,422

19,133

1,886

13,591

Branch right sizing (net)

1,104

1,235

380

909

1,648

Day 2 CECL provision

-

-

33,779

-

22,688

Tax effect of certain items (2)

768

(594)

(14,382)

(731)

(9,913)

Adjusted earnings (non-GAAP)

$               81,093

$               82,281

$               68,102

$               67,159

$               76,244

           

Average total assets

$        27,180,575

$        26,868,731

$        26,769,032

$        24,826,199

$        24,698,022

           

Return on average assets

1.22 %

1.19 %

0.41 %

1.06 %

0.77 %

Adjusted return on average assets (non-GAAP)

1.18 %

1.21 %

1.02 %

1.10 %

1.22 %

           

Calculation of Return on Tangible Common Equity

         
           

Net income available to common stockholders

$               83,260

$               80,603

$               27,454

$               65,095

$               48,230

Amortization of intangibles, net of taxes

3,035

3,121

3,025

2,575

2,575

Total income available to common stockholders

$               86,295

$               83,724

$               30,479

$               67,670

$               50,805

Certain items (non-GAAP)

         

(Gain) loss from early retirement of TruPS

-

365

-

-

-

Gain on sale of intellectual property

-

(750)

-

-

-

Gain on insurance settlement

(4,074)

-

-

-

-

Donation to Simmons First Foundation

-

-

1,738

-

-

Merger related costs

35

1,422

19,133

1,886

13,591

Branch right sizing (net)

1,104

1,235

380

909

1,648

Day 2 CECL provision

-

-

33,779

-

22,688

Tax effect of certain items (2)

768

(594)

(14,382)

(731)

(9,913)

Adjusted earnings (non-GAAP)

81,093

82,281

68,102

67,159

76,244

Amortization of intangibles, net of taxes

3,035

3,121

3,025

2,575

2,575

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

$               84,128

$               85,402

$               71,127

$               69,734

$               78,819

           

Average common stockholders' equity

$          3,214,912

$          3,292,071

$          3,361,703

$          3,169,108

$          3,261,627

Average intangible assets:

         

   Goodwill

(1,309,124)

(1,309,804)

(1,299,821)

(1,146,034)

(1,137,441)

   Other intangibles

(131,229)

(135,718)

(114,195)

(104,905)

(105,155)

Total average intangibles

(1,440,353)

(1,445,522)

(1,414,016)

(1,250,939)

(1,242,596)

Average tangible common stockholders' equity (non-GAAP)

$          1,774,559

$          1,846,549

$          1,947,687

$          1,918,169

$          2,019,031

           

Return on average common equity

10.27 %

9.71 %

3.28 %

8.33 %

5.87 %

Return on tangible common equity

19.29 %

17.99 %

6.28 %

14.31 %

9.98 %

Adjusted return on average common equity (non-GAAP)

10.01 %

9.92 %

8.13 %

8.59 %

9.27 %

Adjusted return on tangible common equity (non-GAAP)

18.81 %

18.35 %

14.65 %

14.74 %

15.49 %

           

Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)

         
           

Noninterest expense (efficiency ratio numerator)

$             142,575

$             138,943

$             156,813

$             128,417

$             141,597

Certain noninterest expense items (non-GAAP)

         

Merger related costs

(35)

(1,422)

(19,133)

(1,886)

(13,591)

Donation to Simmons First Foundation

-

-

(1,738)

-

-

Branch right sizing expense

(1,104)

(1,170)

(292)

(909)

(1,650)

Other real estate and foreclosure expense adjustment

(350)

(168)

(142)

(343)

(576)

Amortization of intangibles adjustment

(4,108)

(4,225)

(4,096)

(3,486)

(3,486)

Adjusted efficiency ratio numerator

$             136,978

$             131,958

$             131,412

$             121,793

$             122,294

           

Net interest income

$             193,026

$             193,585

$             185,099

$             145,606

$             153,081

Noninterest income

44,647

43,023

40,178

42,218

46,601

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

6,770

6,203

6,096

5,602

5,579

Efficiency ratio denominator

244,443

242,811

231,373

193,426

205,261

           

Certain noninterest income items (non-GAAP)

         

Gain on insurance settlement

(4,074)

-

-

-

-

(Gain) loss from early retirement of TruPS

-

365

-

-

-

Gain on sale of intellectual property

-

(750)

-

-

-

Branch right sizing income

-

65

88

-

(2)

(Gain) loss on sale of securities

52

22

150

54

348

Adjusted efficiency ratio denominator

$             240,421

$             242,513

$             231,611

$             193,480

$             205,607

           

Efficiency ratio (1)

58.33 %

57.22 %

67.77 %

66.39 %

68.98 %

Adjusted efficiency ratio (non-GAAP) (1)

56.97 %

54.41 %

56.74 %

62.95 %

59.48 %

           

 (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 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

($ in thousands)

         

Calculation of Adjusted Net Interest Margin

         
           

Net interest income

$          193,026

$          193,585

$          185,099

$          145,606

$          153,081

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

6,770

6,203

6,096

5,602

5,579

Fully tax-equivalent net interest income

199,796

199,788

191,195

151,208

158,660

           

Total accretable yield

(4,473)

(5,834)

(9,898)

(3,703)

(5,758)

Adjusted net interest income

$          195,323

$          193,954

$          181,297

$          147,505

$          152,902

           

PPP loan interest income

(103)

(191)

(1,648)

(2,113)

(5,107)

Net interest income adjusted for PPP loans

$          199,693

$          199,597

$          189,547

$          149,095

$          153,553

           

Average earning assets

$     23,970,128

$     23,745,097

$     23,694,648

$     22,185,215

$     22,029,792

Average PPP loan balance

(11,325)

(18,179)

(43,329)

(89,757)

(172,130)

Average earning assets adjusted for PPP loans

$     23,958,803

$     23,726,918

$     23,651,319

$     22,095,458

$     21,857,662

           

Net interest margin

3.31 %

3.34 %

3.24 %

2.76 %

2.86 %

Net interest margin adjusted for PPP loans

3.31 %

3.34 %

3.21 %

2.74 %

2.79 %

           

Calculation of Pre-Provision Net Revenue (PPNR)

         
           

Net interest income

$          193,026

$          193,585

$          185,099

$          145,606

$          153,081

Noninterest income

44,647

43,023

40,178

42,218

46,601

Revenue

237,673

236,608

225,277

187,824

199,682

Less: Gain (loss) on sale of securities

(52)

(22)

(150)

(54)

(348)

Less: Noninterest expense

142,575

138,943

156,813

128,417

141,597

Pre-Provision Net Revenue (PPNR)

$            95,150

$            97,687

$            68,614

$            59,461

$            58,433

           

Calculation of Adjusted Pre-Provision Net Revenue

         
           

Pre-Provision Net Revenue (PPNR)

$            95,150

$            97,687

$            68,614

$            59,461

$            58,433

Plus: Loss from early retirement of TruPS

-

365

-

-

-

Less: Gain on sale of intellectual property

-

(750)

-

-

-

Less: Gain on insurance settlement

(4,074)

-

-

-

-

Plus: Donation to Simmons First Foundation

-

-

1,738

-

-

Plus: Merger related costs

35

1,422

19,133

1,886

13,591

Plus: Branch right sizing costs

1,104

1,235

380

909

1,648

Adjusted Pre-Provision Net Revenue

$            92,215

$            99,959

$            89,865

$            62,256

$            73,672

 

 

Simmons First National Corporation

 

 SFNC 

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

   

 For the Quarters Ended 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 (Unaudited) 

2022

2022

2022

2022

2021

($ in thousands)

         

Calculation of Adjusted Return on Average Assets

         
           

Net income available to common stockholders

$             256,412

$             173,152

$               92,549

$               65,095

$             271,109

Certain items (non-GAAP)

         

Gain on sale of branches

-

-

-

-

(5,316)

(Gain) loss from early retirement of TruPS

365

365

-

-

-

Gain on sale of intellectual property

(750)

(750)

-

-

-

Gain on insurance settlement

(4,074)

-

-

-

-

Donation to Simmons First Foundation

1,738

1,738

1,738

-

-

Merger related costs

22,476

22,441

21,019

1,886

15,911

Branch right sizing (net)

3,628

2,524

1,289

909

(906)

Day 2 CECL provision

33,779

33,779

33,779

-

22,688

Tax effect of certain items (2)

(14,939)

(15,707)

(15,113)

(731)

(8,462)

Adjusted earnings (non-GAAP)

$             298,635

$             217,542

$             135,261

$               67,159

$             295,024

           

Average total assets

$        26,418,838

$        26,162,136

$        25,802,982

$        24,826,199

$        23,492,308

           

Return on average assets

0.97 %

0.88 %

0.72 %

1.06 %

1.15 %

Adjusted return on average assets (non-GAAP)

1.13 %

1.11 %

1.06 %

1.10 %

1.26 %

           

Calculation of Return on Tangible Common Equity

         
           

Net income available to common stockholders

$             256,412

$             173,152

$               92,549

$               65,095

$             271,109

Amortization of intangibles, net of taxes

11,756

8,721

5,600

2,575

9,967

Total income available to common stockholders

$             268,168

$             181,873

$               98,149

$               67,670

$             281,076

Certain items (non-GAAP)

         

Gain on sale of branches

-

-

-

-

(5,316)

(Gain) loss from early retirement of TruPS

365

365

-

-

-

Gain on sale of intellectual property

(750)

(750)

-

-

-

Gain on insurance settlement

(4,074)

-

-

-

-

Donation to Simmons First Foundation

1,738

1,738

1,738

-

-

Merger related costs

22,476

22,441

21,019

1,886

15,911

Branch right sizing (net)

3,628

2,524

1,289

909

(906)

Day 2 CECL provision

33,779

33,779

33,779

-

22,688

Tax effect of certain items (2)

(14,939)

(15,707)

(15,113)

(731)

(8,462)

Adjusted earnings (non-GAAP)

298,635

217,542

135,261

67,159

295,024

Amortization of intangibles, net of taxes

11,756

8,721

5,600

2,575

9,967

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

$             310,391

$             226,263

$             140,861

$               69,734

$             288,233

           

Average common stockholders' equity

$          3,259,664

$          3,274,743

$          3,265,935

$          3,169,108

$          3,071,313

Average intangible assets:

         

   Goodwill

(1,266,762)

(1,252,486)

(1,223,352)

(1,146,034)

(1,090,967)

   Other intangibles

(121,622)

(118,385)

(109,575)

(104,905)

(105,820)

Total average intangibles

(1,388,384)

(1,370,871)

(1,332,927)

(1,250,939)

(1,196,787)

Average tangible common stockholders' equity (non-GAAP)

$          1,871,280

$          1,903,872

$          1,933,008

$          1,918,169

$          1,874,526

           

Return on average common equity

7.87 %

7.07 %

5.71 %

8.33 %

8.83 %

Return on tangible common equity

14.33 %

12.77 %

10.24 %

14.31 %

14.99 %

Adjusted return on average common equity (non-GAAP)

9.16 %

8.88 %

8.35 %

8.59 %

9.61 %

Adjusted return on tangible common equity (non-GAAP)

16.59 %

15.89 %

14.70 %

14.74 %

16.27 %

           

Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)

         
           

Noninterest expense (efficiency ratio numerator)

$             566,748

$             424,173

$             285,230

$             128,417

$             483,589

Certain noninterest expense items (non-GAAP)

         

Merger related costs

(22,476)

(22,441)

(21,019)

(1,886)

(15,911)

Donation to Simmons First Foundation

(1,738)

(1,738)

(1,738)

-

-

Branch right sizing expense

(3,475)

(2,371)

(1,201)

(909)

537

Other real estate and foreclosure expense adjustment

(1,003)

(653)

(485)

(343)

(2,121)

Amortization of intangibles adjustment

(15,915)

(11,807)

(7,582)

(3,486)

(13,494)

Adjusted efficiency ratio numerator

$             522,141

$             385,163

$             253,205

$             121,793

$             452,600

           

Net interest income

$             717,316

$             524,290

$             330,705

$             145,606

$             591,532

Noninterest income

170,066

125,419

82,396

42,218

191,815

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

24,671

17,901

11,698

5,602

19,231

Efficiency ratio denominator

912,053

667,610

424,799

193,426

802,578

           

Certain noninterest income items (non-GAAP)

         

Gain on insurance settlement

(4,074)

-

-

-

-

(Gain) loss from early retirement of TruPS

365

365

-

-

-

Gain on sale of intellectual property

(750)

(750)

-

-

-

Gain on sale of branches

-

-

-

-

(5,316)

Branch right sizing income

153

153

88

-

(369)

(Gain) loss on sale of securities

278

226

204

54

(15,498)

Adjusted efficiency ratio denominator

$             908,025

$             667,604

$             425,091

$             193,480

$             781,395

           

Efficiency ratio (1)

62.14 %

63.54 %

67.14 %

66.39 %

60.25 %

Adjusted efficiency ratio (non-GAAP) (1)

57.50 %

57.69 %

59.56 %

62.95 %

57.92 %

           

Calculation of Pre-Provision Net Revenue (PPNR)

         
           

Net interest income

$             717,316

$             524,290

$             330,705

$             145,606

$             591,532

Noninterest income

170,066

125,419

82,396

42,218

191,815

Revenue

887,382

649,709

413,101

187,824

783,347

Less: Gain (loss) on sale of securities

(278)

(226)

(204)

(54)

15,498

Less: Noninterest expense

566,748

424,173

285,230

128,417

483,589

Pre-Provision Net Revenue (PPNR)

$             320,912

$             225,762

$             128,075

$               59,461

$             284,260

           

 (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, 205.612.3378 (cell)