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Simmons First National Corporation Reports Third Quarter 2023 Results

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

Bob Fehlman, Simmons' Chief Executive Officer, commented on third quarter 2023 results:

Simmons reported net income of $47.2 million and diluted earnings per share of $0.37 for the third quarter of 2023. Adjusted earnings1 were $48.8 million and adjusted earnings per share1 were $0.39. While the current economic and interest rate environment continues to pose challenges to the financial services industry, we remain resolute on serving our customers' financial needs while diligently focusing on maintaining strong asset quality, capital and liquidity positions.

Our results also reflect our efforts aimed at optimizing our balance sheet and our Better Bank Initiative. On a year-over-year basis, average loans were up 9 percent and average deposits were up 3 percent as we continued to reinvest cash flows from our securities portfolio to fund loan growth and reduce wholesale borrowings. With respect to our Better Bank Initiative, we were able to achieve all of the original $15 million of annual cost savings we previously estimated one quarter sooner than anticipated. 

FINANCIAL HIGHLIGHTS

   3Q23

   2Q23

    3Q22


Q3 23 Highlights

BALANCE SHEET (in millions)





Comparisons reflect Q3 23 vs Q3 22

  • Net income of $47.2 million and diluted EPS of $0.37

  • Adjusted earnings1 of $48.8 million and adjusted diluted EPS1 of $0.39

  • Execution of Better Bank Initiative and focus on expense management leads to 5 percent decline in noninterest expense

  • Total revenue of $196.2 million; PPNR1 of $64.2 million; Adjusted PPNR1 of $66.3 million

  • Decline in average total assets reflects strategic decision to reduce higher rate wholesale funding

  • ACL ratio ends the quarter at 1.30%; NCO ratio includes a single credit that accounted for 23 bps of total 28 bps

  • Book value per share up 6% and tangible book value per share1 up 9%

  • Repurchased 1.1 million shares in the quarter

Total assets

$27,564

$27,959

$27,076


Total deposits

22,231

22,489

22,149


Total loans

16,772

16,834

15,607


Total investment securities

7,101

7,337

7,725


Total shareholders' equity

3,286

3,356

3,157


ASSET QUALITY





Net charge-off ratio

0.28 %

0.04 %

- %


Nonperforming loan ratio

0.49

0.43

0.37


Nonperforming assets to total assets

0.32

0.28

0.23


Allowance for credit losses to total loans

1.30

1.25

1.27


Nonperforming loan coverage ratio

267

292

342


CAPITAL RATIOS





Equity to assets

11.92 %

12.00 %

11.66 %


Tangible common equity (TCE) ratio1

7.07

7.22

6.69


Common equity tier 1 (CET1) ratio

12.02

11.92

11.73


Total risk-based capital ratio

14.27

14.17

14.08


LIQUIDITY ($ in millions)





Loan to deposit ratio

75.44 %

74.85 %

70.47 %


Borrowed funds to total liabilities

7.37

7.49

6.27


Uninsured, non-collateralized deposits (UCD)

$  4,631

$  4,802

$5,782


Additional liquidity sources

11,447

11,096

8,709


Coverage ratio of UCD

        2.5x

        2.3x

        1.5x


PERFORMANCE MEASURES (in millions)





Total revenue

$196.2

$208.2

$236.6


Pre-provision net revenue1 (PPNR)

64.2

68.9

97.7


Adjusted pre-provision net revenue1

66.3

72.6

100.0


Provision for credit losses

7.7

0.1

0.1


Noninterest income

42.8

45.0

43.0


Noninterest expense

132.0

139.7

138.9



Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $47.2 million for the third quarter of 2023, compared to $58.3 million for the second quarter of 2023 and $80.6 million for the third quarter of 2022. Diluted earnings per share were $0.37 for the third quarter of 2023, compared to $0.46 in the second quarter of 2023 and $0.63 in the third quarter of 2022. Adjusted earnings1 for the third quarter of 2023 were $48.8 million, compared to $61.1 million for the second quarter of 2023 and $82.3 million in the third quarter of 2022. A summary of certain items, consisting primarily of merger related costs, branch right-sizing costs and early retirement program costs, are described in the "Reconciliation of Non-GAAP Financial Measures" tables below.

Net Interest Income
Net interest income for the third quarter of 2023 totaled $153.4 million, compared to $163.2 million in the second quarter of 2023 and $193.6 million for the third quarter of 2022. Included in net interest income is accretion recognized on assets acquired, which totaled $2.1 million in the third quarter of 2023, $2.3 million in the second quarter of 2023 and $5.8 million in the third quarter of 2022. On a linked quarter basis, interest income increased $13.1 million and interest expense increased $22.9 million. While the higher interest rate environment positively impacted interest income, the corresponding increase in interest expense was driven by an increase in deposit costs, continued customer migration to higher rate deposit products and pricing measures instituted to defend market share, offset in part by a decrease in other wholesale borrowings costs, primarily Federal Home Loan Bank advances.

The yield on loans on a fully taxable equivalent (FTE) basis for the third quarter of 2023 was 6.08 percent, compared to 5.89 percent in the second quarter of 2023 and 4.86 percent in the third quarter of 2022. The yield on investment securities on an FTE basis for the third quarter of 2023 was 3.08 percent, compared to 2.91 percent in the second quarter of 2023 and 2.29 percent in the third quarter of 2022. Cost of deposits for the third quarter of 2023 was 2.37 percent, compared to 1.96 percent in the second quarter of 2023 and 0.47 percent in the third quarter of 2022. The net interest margin on an FTE basis for the third quarter of 2023 was 2.61 percent, compared to 2.76 percent in the second quarter of 2023 and 3.34 percent in the third quarter of 2022.

Select Yield/Rates

Q3 23

Q2 23

Q1 23

Q4 22

Q3 22

Loan yield (FTE)2

6.08 %

5.89 %

5.67 %

5.40 %

4.86 %

Investment securities yield (FTE)2

3.08

2.91

2.92

2.68

2.29

Cost of interest bearing deposits

3.06

2.57

2.10

1.41

0.65

Cost of deposits

2.37

1.96

1.58

1.02

0.47

Cost of borrowed funds

5.60

5.31

4.29

3.92

2.66

Net interest spread (FTE)2

1.87

2.10

2.52

2.87

3.11

Net interest margin (FTE)2

2.61

2.76

3.09

3.31

3.34







Noninterest Income
Noninterest income for the third quarter of 2023 was $42.8 million, compared to $45.0 million in the second quarter of 2023 and $43.0 million in the third quarter of 2022. The decline in service charges on deposits accounts, both on a linked quarter and a year-over-year basis, was primarily due to certain insufficient funds fee structure changes for consumer deposit accounts that were implemented during the third quarter of 2023. The decrease in other income on a linked quarter basis was primarily due to the positive impact of fair value adjustments associated with certain equity investments recorded in the second quarter of 2023.

Noninterest Income

$ in millions

Q3 23

Q2 23

Q1 23

Q4 22

Q3 22

Service charges on deposit accounts

$ 12.4

$ 12.9

$ 12.4

$ 11.9

$ 12.6

Wealth management fees

7.7

7.4

7.4

8.2

8.6

Debit and credit card fees

7.7

8.0

8.0

7.8

7.7

Mortgage lending income

2.2

2.4

1.6

1.1

2.6

Other service charges and fees

2.2

2.3

2.3

2.0

2.1

Bank owned life insurance

3.1

2.6

3.0

3.0

2.9

Gain (loss) on sale of securities

-

(0.4)

-

(0.1)

-

Gain on insurance settlement

-

-

-

4.1

-

Other income

7.4

9.8

11.3

6.6

6.7

   Total noninterest income

$ 42.8

$ 45.0

$ 45.8

$ 44.6

$ 43.0







Adjusted noninterest income1

$ 42.8

$ 45.0

$ 45.8

$ 40.6

$ 42.7







Noninterest Expense
Noninterest expense for the third quarter of 2023 was $132.0 million, compared to $139.7 million in the second quarter of 2023 and $138.9 million in the third quarter of 2022. Included in noninterest expense are certain items consisting primarily of early retirement program, branch right sizing and merger related costs, totaling $2.1 million in the third quarter of 2023, $3.7 million in the second quarter of 2023 and $2.6 million in the third quarter of 2022. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest expense1 was $129.9 million in the third quarter of 2023, $136.0 million in the second quarter of 2023 and $136.4 million in the third quarter of 2022. The decrease in noninterest expense was primarily due to a decrease in salaries and employee benefits. The decrease in adjusted noninterest expense on a linked quarter basis was primarily attributable to a $5.3 million decrease in salaries and employee benefits, reflecting the successful execution of programs as part of our Better Bank Initiative, as well as a $4.0 million accrual adjustment recorded in the third quarter of 2023 related to incentive plans.

Noninterest Expense

$ in millions

Q3 23

Q2 23

Q1 23

Q4 22

Q3 22

Salaries and employee benefits

$  67.4

$  74.7

$  77.0

$  73.0

$  71.9

Occupancy expense, net

12.0

11.4

11.6

11.6

11.7

Furniture and equipment

5.1

5.1

5.1

5.4

5.4

Deposit insurance

4.7

5.2

4.9

3.7

3.3

Other real estate and foreclosure expense

0.2

0.3

0.2

0.4

0.2

Merger related costs

-

-

1.4

-

1.4

Other operating expenses

42.6

42.9

43.1

48.5

45.1

   Total noninterest expense

$132.0

$139.7

$143.2

$142.6

$138.9







Adjusted salaries and employee benefits1

$  65.8

$  71.1

$  77.0

$  73.0

$  71.9

Adjusted other operating expenses1

42.1

43.0

42.3

47.5

44.1

Adjusted noninterest expense1

129.9

136.0

140.9

141.4

136.4

Efficiency ratio

65.11 %

65.18 %

62.28 %

58.33 %

57.22 %

Adjusted efficiency ratio1

61.94

61.29

59.38

56.97

54.41

Full-time equivalent employees

3,005

3,066

3,189

3,236

3,206







Loans and Unfunded Loan Commitments
Total loans at the end of the third quarter of 2023 were $16.8 billion, up $1.2 billion, or 7 percent, compared to $15.6 billion at the end of the third quarter of 2022. Total loans on a linked quarter basis were relatively unchanged, reflecting moderating demand and increased payoff activity in the quarter, as well as our focus on maintaining disciplined pricing and conservative underwriting standards given the current economic environment. Unfunded commitments at the end of the third quarter of 2023 were $4.0 billion, compared to $4.4 billion at the end of the second quarter of 2023 and $5.1 billion at the end of the third quarter of 2022. Conversely, during the third quarter of 2023 our commercial loan pipeline saw increased activity compared to the second quarter of 2023. Commercial loans approved and ready to close at the end of the third quarter of 2023 were $433 million compared to $274 million at the end of the second quarter of 2023, and the rate on ready to close commercial loans was 8.43 percent, up 49 basis points on a linked quarter basis. 

Loans and Unfunded Commitments 

$ in millions

Q3 23

Q2 23

Q1 23

Q4 22

Q3 22

Total loans

$16,772

$16,834

$16,555

$16,142

$15,607

Unfunded loan commitments

4,049

4,443

4,725

5,000

5,138







Deposits
Total deposits at the end of the third quarter of 2023 were $22.2 billion, compared to $22.5 billion at the end of the second quarter of 2023 and $22.1 billion at the end of the third quarter of 2022. While the overall level of deposits has been relatively stable, the change in mix of deposits, both on a linked quarter and year-over-year basis, reflected continued customer migration into higher rate deposits, principally certificates of deposit, given the rapid rise in interest rates, as well as increased market competition. Noninterest bearing deposits totaled $5.0 billion, compared to $5.3 billion at the end of the second quarter of 2023 and $6.2 billion at the end of the third quarter of 2022. Interest bearing transaction accounts (including savings accounts) totaled $10.6 billion at the end of the third quarter of 2023, compared to $10.9 billion at the end of the second quarter of 2023 and $12.1 billion at the end of the third quarter of 2022. Time deposits totaled $6.7 billion at the end of the third quarter of 2023, compared to $6.4 billion at the end of the second quarter of 2023 and $3.8 billion at the end of the third quarter of 2022.   

Deposits

$ in millions

Q3 23

Q2 23

Q1 23

Q4 22

Q3 22

Noninterest bearing deposits

$  4,991

$  5,265

$  5,489

$  6,017

$  6,218

Interest bearing transaction accounts

10,572

10,866

11,284

11,763

12,104

Time deposits

6,668

6,358

5,679

4,768

3,827

   Total deposits

$22,231

$22,489

$22,452

$22,548

$22,149







Noninterest bearing deposits to total deposits

22 %

23 %

24 %

27 %

28 %

Total loans to total deposits

75

75

74

72

70







Asset Quality
Total nonperforming loans at the end of the third quarter of 2023 were $81.9 million, compared to $72.0 million at the end of the second quarter of 2023 and $57.8 million at the end of the third quarter of 2022. Total nonperforming assets as a percentage of total assets were 0.32 percent at the end of the third quarter of 2023, compared to 0.28 percent at the end of the second quarter of 2023 and 0.23 percent at the end of the third quarter of 2022. The increase in nonperforming assets on a linked quarter basis reflected a commercial credit totaling approximately $8.0 million that was classified as nonperforming during the third quarter, offset in part by payoffs received on previously identified nonaccrual commercial and agricultural loans. Net charge-offs as a percentage of average loans for the third quarter of 2023 were 28 basis points, compared to 4 basis points for the second quarter of 2023 and less than 1 basis point in the third quarter of 2022. The increase in net charge-offs was primarily due to a $9.6 million charge-off on a nursing/extended care related credit following a comprehensive review of this portfolio during the quarter. This charge-off accounted for 23 basis points of the 28 basis points of total net charge-offs recorded in the third quarter of 2023.

Provision for credit losses totaled $7.7 million in the third quarter of 2023, compared to $0.1 million in both the second quarter of 2023 and the third quarter of 2022. The increase in provision for credit losses on a sequential and year-over-year basis reflected portfolio activity and changes in macroeconomic variables. The allowance for credit losses at the end of the third quarter of 2023 was $218.5 million, compared to $210.0 million at the end of the second quarter of 2023 and $197.6 million at the end of the third quarter of 2022. The allowance for credit losses as a percentage of total loans at the end of the third quarter of 2023 was 1.30 percent, compared to 1.25 percent at the end of the second quarter of 2023 and 1.27 percent at the end of the third quarter of 2022. The nonperforming loan coverage ratio ended the quarter at 267 percent, compared to 292 percent at the end of the second quarter of 2023 and 342 percent at the end of the third quarter of 2022. The reserve for unfunded commitments totaled $25.6 million at the end of the third quarter of 2023, compared to $36.9 million at the end of the second quarter of 2023 and $41.9 million at the end of the third quarter of 2022. The decrease in the reserve for unfunded commitments reflects a lower level of unfunded commitments as customers continue to utilize available lines of credit.

Asset Quality

$ in millions

Q3 23

Q2 23

Q1 23

Q4 22

Q3 22

Allowance for credit losses on loans to total loans

1.30 %

1.25 %

1.25 %

1.22 %

1.27 %

Allowance for credit losses on loans to nonperforming loans

267

292

324

334

342

Nonperforming loans to total loans

0.49

0.43

0.38

0.37

0.37

Net charge-off ratio (annualized)

0.28

0.04

0.03

0.13

-

Net charge-off ratio YTD (annualized)

0.12

0.04

0.03

0.09

0.07







Total nonperforming loans

$81.9

$72.0

$63.7

$58.9

$57.8

Total other nonperforming assets

5.2

4.9

7.7

3.6

4.7

   Total nonperforming assets

$87.1

$76.9

$71.4

$62.5

$62.5







Reserve for unfunded commitments

$25.6

$36.9

$41.9

$41.9

$41.9







Capital
Total common stockholders' equity at the end of the third quarter of 2023 was $3.3 billion, compared to $3.4 billion at the end of the second quarter of 2023 and $3.2 billion at the end of the third quarter of 2022. Book value per share at the end of the third quarter of 2023 was $26.26, compared to $26.59 at the end of the second quarter of 2023 and $24.87 at the end of the third quarter of 2022. Tangible book value per share1 was $14.77 at the end of the third quarter of 2023, compared to $15.17 at the end of the second quarter of 2023 and $13.51 at the end of the third quarter of 2022. Stockholders' equity as a percentage of total assets at September 30, 2023, was 11.9 percent, compared to 12.0 percent at June 30, 2023, and 11.7 percent at September 30, 2022. Tangible common equity as a percentage of tangible assets1 was 7.1 percent at September 30, 2023, compared to 7.2 percent at June 30, 2023, and 6.7 percent at September 30, 2022. Simmons maintained a strong regulatory capital position, with all regulatory capital ratios continuing to significantly exceed "well capitalized" guidelines.

Select Capital Ratios

Q3 23

Q2 23

Q1 23

Q4 22

Q3 22

Stockholders' equity to total assets

11.9 %

12.0 %

12.1 %

11.9 %

11.7 %

Tangible common equity to tangible assets1

7.1

7.2

7.3

7.0

6.7

Common equity tier 1 (CET1) ratio

12.0

11.9

11.9

11.9

11.7

Tier 1 leverage ratio

9.3

9.2

9.2

9.3

9.2

Tier 1 risk-based capital ratio

12.0

11.9

11.9

11.9

11.7

Total risk-based capital ratio

14.3

14.2

14.5

14.2

14.1







Share Repurchase Program
During the third quarter of 2023, Simmons repurchased approximately 1.1 million shares of its Class A common stock at an average price of $17.69 under its 2022 stock repurchase program (2022 Program). Remaining authorization under the 2022 Program as of September 30, 2023, was approximately $40 million. Market conditions and our capital needs (among other things) will drive decisions regarding future stock repurchases, if any; 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 basis using an effective tax rate of 26.135%



Conference Call
Management will conduct a live conference call to review this information beginning at 9:00 a.m. Central Time today, Tuesday, October 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 10182813. 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 232 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 2023, Simmons Bank was recognized by Forbes as one of America's Best Midsize Employers and among the World's Best Banks for the fourth consecutive year. In 2022, Simmons Bank was named to Forbes' list of "America's Best Banks" for the second consecutive year. Additional information about Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on X (formerly Twitter) or by visiting our newsroom.

Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from net income (including on a per share diluted basis), pre-tax, pre-provision earnings, net charge-offs, income available to common shareholders, non-interest income, and non-interest expense certain income and expense items attributable to, for example, merger activity (primarily including merger-related expenses 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 press release may not be based on historical facts and should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Fehlman's quote, may be identified by reference to future periods or by the use of forward-looking terminology, such as "believe," "budget," "expect," "foresee," "anticipate," "intend," "indicate," "target," "estimate," "plan," "project," "continue," "contemplate," "positions," "prospects," "predict," or "potential," by future conditional verbs such as "will," "would," "should," "could," "might" or "may," or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons' future growth, business strategies, lending capacity and lending activity, loan demand, revenue, assets, asset quality, profitability, dividends, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, digital banking initiatives, the Company's ability to recruit and retain key employees, the estimated cost savings associated with the Company's Better Bank Initiative, the adequacy of the allowance for credit losses, and future economic conditions and interest rates. Any forward-looking statement speaks only as of the date of this press release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this press release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, changes in credit quality, changes in interest rates and related governmental policies, changes in loan demand, changes in deposit flows, changes in real estate values, changes in the assumptions used in making the forward-looking statements, changes in the securities markets generally or the price of Simmons' common stock specifically, and changes in information technology affecting the financial industry; changes in customer behaviors, including consumer spending, borrowing, and saving habits; general economic and market conditions; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and between Israel and Hamas) or other major events, or the prospect of these events; the soundness of other financial institutions and indirect exposure related to the closings of Silicon Valley Bank (SVB), Signature Bank and Silvergate Bank and their impact on the broader market through other customers, suppliers and partners (or that the conditions which resulted in the liquidity concerns with SVB, Signature Bank and Silvergate Bank may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships);  increased inflation; the loss of key employees; increased competition in the markets in which the Company operates; 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, 2022, the Company's Form 10-Q for the quarterly period ended March 31, 2023, and other reports that the Company has filed with or furnished to the U.S. Securities and Exchange Commission (the SEC), all of which are available from the SEC on its website, www.sec.gov. In addition, there can be no guarantee that the board of directors (Board) of Simmons will approve a quarterly dividend in future quarters, and the timing, payment, and amount of future dividends (if any) is subject to, among other things, the discretion of the Board and may differ significantly from past dividends.

 Simmons First National Corporation 





 SFNC 

 Consolidated End of Period Balance Sheets 






 For the Quarters Ended 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

($ in thousands)






 ASSETS 






 Cash and noninterest bearing balances due from banks 

$      181,822

$      181,268

$      199,316

$      200,616

$      175,547

 Interest bearing balances due from banks and federal funds sold 

423,826

564,644

325,135

481,506

503,863

     Cash and cash equivalents 

605,648

745,912

524,451

682,122

679,410

 Interest bearing balances due from banks - time 

100

545

795

795

1,290

 Investment securities - held-to-maturity 

3,742,292

3,756,754

3,765,483

3,759,706

3,787,076

 Investment securities - available-for-sale 

3,358,421

3,579,758

3,755,956

3,852,854

3,937,543

 Mortgage loans held for sale 

11,690

10,342

4,244

3,486

12,759

 Other loans held for sale 

-

-

-

-

2,292

 Loans: 






 Loans 

16,771,888

16,833,653

16,555,098

16,142,124

15,607,135

 Allowance for credit losses on loans 

(218,547)

(209,966)

(206,557)

(196,955)

(197,589)

 Net loans 

16,553,341

16,623,687

16,348,541

15,945,169

15,409,546

 Premises and equipment 

567,167

562,025

564,497

548,741

549,932

 Foreclosed assets and other real estate owned 

3,809

3,909

2,721

2,887

3,612

 Interest receivable 

110,361

103,431

98,775

102,892

86,637

 Bank owned life insurance 

497,465

494,370

493,191

491,340

488,364

 Goodwill 

1,320,799

1,320,799

1,320,799

1,319,598

1,309,000

 Other intangible assets 

116,660

120,758

124,854

128,951

133,059

 Other assets 

676,572

636,833

579,139

622,520

675,554

 Total assets 

$ 27,564,325

$ 27,959,123

$ 27,583,446

$ 27,461,061

$ 27,076,074







 LIABILITIES AND STOCKHOLDERS' EQUITY 






 Deposits: 






 Noninterest bearing transaction accounts 

$   4,991,034

$   5,264,962

$   5,489,434

$   6,016,651

$   6,218,283

 Interest bearing transaction accounts and savings deposits 

10,571,807

10,866,078

11,283,584

11,762,885

12,103,994

 Time deposits 

6,668,370

6,357,682

5,678,757

4,768,558

3,826,415

         Total deposits 

22,231,211

22,488,722

22,451,775

22,548,094

22,148,692

 Federal funds purchased and securities sold 






 under agreements to repurchase 

74,482

102,586

142,862

160,403

168,513

 Other borrowings 

1,347,855

1,373,339

1,023,826

859,296

964,772

 Subordinated notes and debentures 

366,103

366,065

366,027

365,989

365,951

 Accrued interest and other liabilities 

259,119

272,085

259,055

257,917

270,995

 Total liabilities 

24,278,770

24,602,797

24,243,545

24,191,699

23,918,923







 Stockholders' equity: 






 Common stock 

1,251

1,262

1,273

1,270

1,269

 Surplus 

2,497,874

2,516,398

2,533,589

2,530,066

2,527,153

 Undivided profits 

1,330,810

1,308,654

1,275,720

1,255,586

1,196,459

 Accumulated other comprehensive (loss) income 

(544,380)

(469,988)

(470,681)

(517,560)

(567,730)

 Total stockholders' equity 

3,285,555

3,356,326

3,339,901

3,269,362

3,157,151

 Total liabilities and stockholders' equity 

$ 27,564,325

$ 27,959,123

$ 27,583,446

$ 27,461,061

$ 27,076,074

 

 Simmons First National Corporation 





 SFNC 

 Consolidated Statements of Income - Quarter-to-Date 






 For the Quarters Ended 

Sep 30

Jun 30

Mar 31

Dec 31

Sep 30

 (Unaudited) 

2023

2023

2023

2022

2022

($ in thousands, except per share data)






 INTEREST INCOME 






    Loans (including fees) 

$ 255,901

$ 244,292

$ 227,498

$ 216,091

$  187,347

    Interest bearing balances due from banks and federal funds sold 

3,569

4,023

2,783

2,593

1,141

    Investment securities 

50,638

48,751

48,774

45,689

40,954

    Mortgage loans held for sale 

178

154

82

152

178

    Other loans held for sale 

-

-

-

59

998

            TOTAL INTEREST INCOME 

310,286

297,220

279,137

264,584

230,618

 INTEREST EXPENSE 






    Time deposits 

68,062

53,879

39,538

22,434

8,204

    Other deposits 

65,095

54,485

47,990

34,615

17,225

    Federal funds purchased and securities 






      sold under agreements to repurchase 

277

318

323

449

305

    Other borrowings 

16,450

18,612

8,848

9,263

6,048

    Subordinated notes and debentures 

6,969

6,696

4,603

4,797

5,251

            TOTAL INTEREST EXPENSE 

156,853

133,990

101,302

71,558

37,033

 NET INTEREST INCOME 

153,433

163,230

177,835

193,026

193,585

 PROVISION FOR CREDIT LOSSES 






    Provision for credit losses on loans 

20,222

5,061

10,916

26

(15,897)

    Provision for credit losses on unfunded commitments 

(11,300)

(5,000)

-

-

16,000

    Provision for credit losses on investment securities - AFS 

(1,200)

(1,326)

12,800

-

-

    Provision for credit losses on investment securities - HTM 

-

1,326

500

-

-

            TOTAL PROVISION FOR CREDIT LOSSES 

7,722

61

24,216

26

103

 NET INTEREST INCOME AFTER PROVISION 






    FOR CREDIT LOSSES 

145,711

163,169

153,619

193,000

193,482

 NONINTEREST INCOME 






    Service charges on deposit accounts 

12,429

12,882

12,437

11,892

12,560

    Debit and credit card fees 

7,712

7,986

7,952

7,845

7,685

    Wealth management fees 

7,719

7,440

7,365

8,151

8,562

    Mortgage lending income 

2,157

2,403

1,570

1,139

2,593

    Bank owned life insurance income 

3,095

2,555

2,973

2,975

2,902

    Other service charges and fees (includes insurance income) 

2,232

2,262

2,282

2,023

2,085

    Gain (loss) on sale of securities 

-

(391)

-

(52)

(22)

    Gain on insurance settlement 

-

-

-

4,074

-

    Other income 

7,433

9,843

11,256

6,600

6,658

            TOTAL NONINTEREST INCOME 

42,777

44,980

45,835

44,647

43,023

 NONINTEREST EXPENSE 






    Salaries and employee benefits 

67,374

74,723

77,038

73,018

71,923

    Occupancy expense, net 

12,020

11,410

11,578

11,620

11,674

    Furniture and equipment expense 

5,117

5,128

5,051

5,392

5,394

    Other real estate and foreclosure expense 

228

289

186

350

168

    Deposit insurance 

4,672

5,201

4,893

3,680

3,278

    Merger-related costs 

5

19

1,396

35

1,422

    Other operating expenses 

42,582

42,926

43,086

48,480

45,084

            TOTAL NONINTEREST EXPENSE 

131,998

139,696

143,228

142,575

138,943

 NET INCOME BEFORE INCOME TAXES 

56,490

68,453

56,226

95,072

97,562

    Provision for income taxes 

9,243

10,139

10,637

11,812

16,959

 NET INCOME 

$   47,247

$   58,314

$   45,589

$   83,260

$    80,603

 BASIC EARNINGS PER SHARE 

$       0.38

$       0.46

$       0.36

$       0.66

$        0.63

 DILUTED EARNINGS PER SHARE 

$       0.37

$       0.46

$       0.36

$       0.65

$        0.63

 

 Simmons First National Corporation 




 SFNC 

 Consolidated Risk-Based Capital 






 For the Quarters Ended 

Sep 30 

Jun 30 

Mar 31 

Dec 31 

Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

($ in thousands)






Tier 1 capital






   Stockholders' equity

$   3,285,555

$   3,356,326

$   3,339,901

$   3,269,362

$   3,157,151

   CECL transition provision (1)

61,746

61,746

61,746

92,619

92,619

   Disallowed intangible assets, net of deferred tax

(1,402,682)

(1,406,500)

(1,410,141)

(1,412,667)

(1,416,453)

   Unrealized loss (gain) on AFS securities

544,380

469,988

470,681

517,560

567,730

      Total Tier 1 capital

2,488,999

2,481,560

2,462,187

2,466,874

2,401,047







Tier 2 capital






   Subordinated notes and debentures

366,103

366,065

366,027

365,989

365,951

   Subordinated debt phase out

(66,000)

(66,000)

-

-

-

   Qualifying allowance for loan losses and






      reserve for unfunded commitments

165,490

169,409

173,077

115,627

116,257

      Total Tier 2 capital

465,593

469,474

539,104

481,616

482,208

      Total risk-based capital

$   2,954,592

$   2,951,034

$   3,001,291

$   2,948,490

$   2,883,255







Risk weighted assets

$ 20,703,669

$ 20,821,075

$ 20,748,605

$ 20,738,727

$ 20,470,918







Adjusted average assets for leverage ratio

$ 26,733,658

$ 26,896,289

$ 26,632,691

$ 26,407,061

$ 25,986,938







Ratios at end of quarter






   Equity to assets

11.92 %

12.00 %

12.11 %

11.91 %

11.66 %

   Tangible common equity to tangible assets (2)

7.07 %

7.22 %

7.25 %

7.00 %

6.69 %

   Common equity Tier 1 ratio (CET1)

12.02 %

11.92 %

11.87 %

11.90 %

11.73 %

   Tier 1 leverage ratio

9.31 %

9.23 %

9.24 %

9.34 %

9.24 %

   Tier 1 risk-based capital ratio

12.02 %

11.92 %

11.87 %

11.90 %

11.73 %

   Total risk-based capital ratio

14.27 %

14.17 %

14.47 %

14.22 %

14.08 %







(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 

Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

($ in thousands)






Investment Securities - End of Period






 Held-to-Maturity 






    U.S. Government agencies 

$      452,428

$      451,737

$      451,052

$      448,012

$      447,400

    Mortgage-backed securities 

1,178,324

1,193,118

1,201,418

1,190,781

1,214,882

    State and political subdivisions 

1,857,652

1,859,022

1,859,970

1,860,992

1,865,203

    Other securities 

253,888

252,877

253,043

259,921

259,591

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

3,742,292

3,756,754

3,765,483

3,759,706

3,787,076

 Available-for-Sale 






    U.S. Treasury 

$          2,224

$          2,209

$          2,220

$          2,197

$          2,191

    U.S. Government agencies 

172,759

176,564

181,843

184,279

188,060

    Mortgage-backed securities 

2,157,092

2,282,328

2,433,530

2,542,902

2,670,348

    State and political subdivisions 

790,344

885,505

895,896

871,074

822,509

    Other securities 

236,002

233,152

242,467

252,402

254,435

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

3,358,421

3,579,758

3,755,956

3,852,854

3,937,543

       Total investment securities (net of credit losses) 

$   7,100,713

$   7,336,512

$   7,521,439

$   7,612,560

$   7,724,619

       Fair value - HTM investment securities 

$   2,848,211

$   3,094,958

$   3,148,976

$   3,063,233

$   2,984,040

 

 Simmons First National Corporation 




 SFNC 

 Consolidated Loans 






 For the Quarters Ended 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

($ in thousands)






Loan Portfolio - End of Period






 Consumer: 






    Credit cards 

$      191,550

$      209,452

$      188,590

$      196,928

$      192,559

    Other consumer 

112,832

148,333

142,817

152,882

180,604

 Total consumer 

304,382

357,785

331,407

349,810

373,163

 Real Estate: 






    Construction 

3,022,321

2,930,586

2,777,122

2,566,649

2,372,294

    Single-family residential 

2,657,879

2,633,365

2,589,831

2,546,115

2,467,008

    Other commercial real estate 

7,565,008

7,546,130

7,520,964

7,468,498

7,249,891

 Total real estate 

13,245,208

13,110,081

12,887,917

12,581,262

12,089,193

 Commercial: 






    Commercial 

2,477,077

2,569,330

2,669,731

2,632,290

2,525,218

    Agricultural 

296,912

280,541

220,641

205,623

263,539

 Total commercial 

2,773,989

2,849,871

2,890,372

2,837,913

2,788,757

 Other 

448,309

515,916

445,402

373,139

356,022

       Total loans 

$ 16,771,888

$ 16,833,653

$ 16,555,098

$ 16,142,124

$ 15,607,135

 

 Simmons First National Corporation 




 SFNC 

 Consolidated Allowance and Asset Quality 






 For the Quarters Ended 

Sep 30 

Jun 30 

Mar 31 

Dec 31 

Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

($ in thousands)






Allowance for Credit Losses on Loans






 Beginning balance 

$  209,966

$ 206,557

$   196,955

$  197,589

$  212,611







 Day 1 PCD allowance from acquisitions: 






    Spirit of Texas (04/08/2022) 

-

-

-

4,523

1,057

       Total Day 1 PCD allowance 

-

-

-

4,523

1,057







 Loans charged off: 






    Credit cards 

1,318

1,409

1,076

1,035

903

    Other consumer 

633

666

456

439

505

    Real estate 

9,723

435

1,204

3,392

130

    Commercial 

1,219

1,225

413

5,389

1,874

       Total loans charged off 

12,893

3,735

3,149

10,255

3,412







 Recoveries of loans previously charged off: 






    Credit cards 

234

298

234

251

250

    Other consumer 

344

436

240

230

278

    Real estate 

429

878

294

4,117

1,982

    Commercial 

245

471

1,067

475

720

       Total recoveries 

1,252

2,083

1,835

5,073

3,230

    Net loans charged off 

11,641

1,652

1,314

5,182

182

 Provision for credit losses on loans 

20,222

5,061

10,916

25

(15,897)

 Balance, end of quarter 

$  218,547

$ 209,966

$   206,557

$  196,955

$  197,589







Nonperforming assets






 Nonperforming loans: 






    Nonaccrual loans 

$    81,135

$   71,279

$     63,218

$    58,434

$    57,534

    Loans past due 90 days or more 

806

738

437

507

242

       Total nonperforming loans 

81,941

72,017

63,655

58,941

57,776

 Other nonperforming assets: 






   Foreclosed assets and other real estate owned

3,809

3,909

2,721

2,887

3,612

    Other nonperforming assets 

1,417

1,013

5,012

644

1,146

       Total other nonperforming assets 

5,226

4,922

7,733

3,531

4,758

          Total nonperforming assets 

$    87,167

$   76,939

$     71,388

$    62,472

$    62,534

 Performing FDMs (modifications to borrowers 






   experiencing financial difficulty) 

$    33,723

$     2,996

$       2,183

$      1,849

$      1,869







Ratios






 Allowance for credit losses on loans to total loans 

1.30 %

1.25 %

1.25 %

1.22 %

1.27 %

 Allowance for credit losses to nonperforming loans 

267 %

292 %

324 %

334 %

342 %

 Nonperforming loans to total loans 

0.49 %

0.43 %

0.38 %

0.37 %

0.37 %

 Nonperforming assets (including performing FDMs) 






   to total assets 

0.44 %

0.29 %

0.27 %

0.23 %

0.24 %

 Nonperforming assets to total assets 

0.32 %

0.28 %

0.26 %

0.23 %

0.23 %

 Annualized net charge offs to average loans (QTD) 

0.28 %

0.04 %

0.03 %

0.13 %

0.00 %

 Annualized net charge offs to average loans (YTD) 

0.12 %

0.04 %

0.03 %

0.09 %

0.07 %

 Annualized net credit card charge offs to 






   average credit card loans (QTD) 

2.19 %

2.25 %

1.69 %

1.52 %

1.30 %

 

 Simmons First National Corporation 










 SFNC 

 Consolidated - Average Balance Sheet and Net Interest Income Analysis 







 For the Quarters Ended 












 (Unaudited) 













 Three Months Ended
Sep 2023 


 Three Months Ended
Jun 2023 


 Three Months Ended
Sep 2022 

 ($ 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

$      331,444

$      3,569

4.27 %


$      404,639

$      4,023

3.99 %


$      327,841

$      1,141

1.38 %

   Investment securities - taxable

4,638,486

34,734

2.97 %


4,821,231

32,745

2.72 %


5,408,189

24,848

1.82 %

   Investment securities - non-taxable (FTE)

2,617,152

21,563

3.27 %


2,627,192

21,253

3.24 %


2,665,515

21,805

3.25 %

   Mortgage loans held for sale

9,542

178

7.40 %


9,560

154

6.46 %


13,280

178

5.32 %

   Other loans held for sale

-

-

0.00 %


-

-

0.00 %


9,439

998

41.95 %

   Loans - including fees (FTE)

16,758,597

256,757

6.08 %


16,702,403

245,151

5.89 %


15,320,833

187,851

4.86 %

      Total interest earning assets (FTE)

24,355,221

316,801

5.16 %


24,565,025

303,326

4.95 %


23,745,097

236,821

3.96 %

   Non-earning assets

3,239,390




3,201,114




3,123,634



     Total assets

$ 27,594,611




$ 27,766,139




$ 26,868,731















LIABILITIES AND STOCKHOLDERS' EQUITY











Interest bearing liabilities:












   Interest bearing transaction and












     savings accounts

$ 10,682,767

$    65,095

2.42 %


$ 11,011,746

$    54,485

1.98 %


$ 12,264,655

$    17,225

0.56 %

   Time deposits

6,558,110

68,062

4.12 %


5,911,139

53,879

3.66 %


3,314,948

8,204

0.98 %

      Total interest bearing deposits

17,240,877

133,157

3.06 %


16,922,885

108,364

2.57 %


15,579,603

25,429

0.65 %

   Federal funds purchased and securities












     sold under agreement to repurchase

89,769

277

1.22 %


119,985

318

1.06 %


196,047

305

0.62 %

   Other borrowings

1,222,557

16,450

5.34 %


1,449,403

18,612

5.15 %


1,123,797

6,048

2.14 %

   Subordinated notes and debentures

366,085

6,969

7.55 %


366,047

6,696

7.34 %


411,018

5,251

5.07 %

      Total interest bearing liabilities

18,919,288

156,853

3.29 %


18,858,320

133,990

2.85 %


17,310,465

37,033

0.85 %

Noninterest bearing liabilities:












   Noninterest bearing deposits

5,032,631




5,276,267




6,022,899



   Other liabilities

271,014




272,628




243,296



      Total liabilities

24,222,933




24,407,215




23,576,660



Stockholders' equity

3,371,678




3,358,924




3,292,071



      Total liabilities and stockholders' equity

$ 27,594,611




$ 27,766,139




$ 26,868,731



Net interest income (FTE)


$  159,948




$  169,336




$  199,788


Net interest spread (FTE)



1.87 %




2.10 %




3.11 %

Net interest margin (FTE)



2.61 %




2.76 %




3.34 %

 

 Simmons First National Corporation 




 SFNC 

 Consolidated - Selected Financial Data 






 For the Quarters Ended 

Sep 30 

Jun 30 

Mar 31 

Dec 31 

Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

($ in thousands, except share data)






QUARTER-TO-DATE






Financial Highlights - As Reported






Net Income

$        47,247

$        58,314

$        45,589

$        83,260

$        80,603

Diluted earnings per share

0.37

0.46

0.36

0.65

0.63

Return on average assets

0.68 %

0.84 %

0.67 %

1.22 %

1.19 %

Return on average common equity

5.56 %

6.96 %

5.49 %

10.27 %

9.71 %

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

10.33 %

12.85 %

10.25 %

19.29 %

17.99 %

Net interest margin (FTE)

2.61 %

2.76 %

3.09 %

3.31 %

3.34 %

Efficiency ratio (2)

65.11 %

65.18 %

62.28 %

58.33 %

57.22 %

FTE adjustment

6,515

6,106

6,311

6,770

6,203

Average diluted shares outstanding

126,283,609

127,379,976

127,516,478

127,505,996

128,336,422

Shares repurchased under plan

1,128,962

1,128,087

-

-

1,883,713

Average price of shares repurchased

17.69

17.75

-

-

23.91

Cash dividends declared per common share

0.200

0.200

0.200

0.190

0.190

Accretable yield on acquired loans

2,146

2,267

2,579

4,473

5,834

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






Adjusted earnings

$        48,804

$        61,065

$        47,343

$        81,093

$        82,281

Adjusted diluted earnings per share

0.39

0.48

0.37

0.64

0.64

Adjusted return on average assets

0.70 %

0.88 %

0.70 %

1.18 %

1.21 %

Adjusted return on average common equity

5.74 %

7.29 %

5.70 %

10.01 %

9.92 %

Adjusted return on tangible common equity

10.64 %

13.42 %

10.62 %

18.81 %

18.35 %

Adjusted efficiency ratio (2)

61.94 %

61.29 %

59.38 %

56.97 %

54.41 %

YEAR-TO-DATE






Financial Highlights - GAAP






Net Income

$      151,150

$      103,903

$        45,589

$      256,412

$      173,152

Diluted earnings per share

1.19

0.82

0.36

2.06

1.40

Return on average assets

0.73 %

0.76 %

0.67 %

0.97 %

0.88 %

Return on average common equity

6.00 %

6.23 %

5.49 %

7.87 %

7.07 %

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

11.14 %

11.55 %

10.25 %

14.33 %

12.77 %

Net interest margin (FTE)

2.82 %

2.92 %

3.09 %

3.17 %

3.12 %

Efficiency ratio (2)

64.13 %

63.68 %

62.28 %

62.14 %

63.54 %

FTE adjustment

18,932

12,417

6,311

24,671

17,901

Average diluted shares outstanding

127,099,727

127,421,034

127,516,478

124,470,184

123,387,503

Cash dividends declared per common share

0.600

0.400

0.200

0.760

0.570

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






Adjusted earnings

$      157,212

$      108,408

$        47,343

$      298,635

$      217,542

Adjusted diluted earnings per share

1.24

0.85

0.37

2.40

1.76

Adjusted return on average assets

0.76 %

0.79 %

0.70 %

1.13 %

1.11 %

Adjusted return on average common equity

6.24 %

6.50 %

5.70 %

9.16 %

8.88 %

Adjusted return on tangible common equity

11.56 %

12.03 %

10.62 %

16.59 %

15.89 %

Adjusted efficiency ratio (2)

60.81 %

60.30 %

59.38 %

57.50 %

57.69 %

END OF PERIOD






Book value per share

$          26.26

$          26.59

$          26.24

$          25.73

$          24.87

Tangible book value per share

14.77

15.17

14.88

14.33

13.51

Shares outstanding

125,133,281

126,224,707

127,282,192

127,046,654

126,943,467

Full-time equivalent employees

3,005

3,066

3,189

3,236

3,206

Total number of financial centers

232

231

231

230

230







 (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 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

 (in thousands, except per share data) 






QUARTER-TO-DATE






 Net income 

$    47,247

$   58,314

$     45,589

$    83,260

$    80,603

 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

-

-

-

-

-

Merger related costs

5

19

1,396

35

1,422

Early retirement program

1,557

3,609

-

-

-

Branch right sizing (net)

547

95

979

1,104

1,235

Day 2 CECL provision

-

-

-

-

-

Tax effect (1)

(552)

(972)

(621)

768

(594)

    Certain items, net of tax 

1,557

2,751

1,754

(2,167)

1,678

 Adjusted earnings (non-GAAP) 

$    48,804

$   61,065

$     47,343

$    81,093

$    82,281







 Diluted earnings per share 

$        0.37

$       0.46

$         0.36

$        0.65

$        0.63

 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

-

-

-

-

-

Merger related costs

-

-

0.01

-

0.01

Early retirement program

0.01

0.03

-

-

-

Branch right sizing (net)

0.01

-

0.01

0.01

0.01

Day 2 CECL provision

-

-

-

-

-

Tax effect (1)

-

(0.01)

(0.01)

0.01

-

    Certain items, net of tax 

0.02

0.02

0.01

(0.01)

0.01

 Adjusted diluted earnings per share (non-GAAP) 

$        0.39

$       0.48

$         0.37

$        0.64

$        0.64







 (1) Effective tax rate of 26.135%. 












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










QUARTER-TO-DATE






    Noninterest income 

$    42,777

$   44,980

$     45,835

$    44,647

$    43,023

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)

Branch right sizing income

-

-

-

-

65

    Adjusted noninterest income (non-GAAP) 

$    42,777

$   44,980

$     45,835

$    40,573

$    42,703







    Other income 

$      7,433

$     9,843

$     11,256

$      6,600

$      6,658

Certain other income items (1)






(Gain) loss from early retirement of TruPS

-

-

-

-

365

Gain on sale of intellectual property

-

-

-

-

(750)

Branch right sizing income

-

-

-

-

65

    Adjusted other income (non-GAAP) 

$      7,433

$     9,843

$     11,256

$      6,600

$      6,338







    Noninterest expense 

$  131,998

$ 139,696

$   143,228

$  142,575

$  138,943

Certain noninterest expense items (1)






Merger related costs

(5)

(19)

(1,396)

(35)

(1,422)

Early retirement program

(1,557)

(3,609)

-

-

-

Donation to Simmons First Foundation

-

-

-

-

-

Branch right sizing expense

(547)

(95)

(979)

(1,104)

(1,170)

    Adjusted noninterest expense (non-GAAP) 

$  129,889

$ 135,973

$   140,853

$  141,436

$  136,351







    Salaries and employee benefits 

$    67,374

$   74,723

$     77,038

$    73,018

$    71,923

Certain salaries and employee benefits items (1)






Early retirement program

(1,557)

(3,609)

-

-

-

Other

-

-

-

-

-

    Adjusted salaries and employee benefits (non-GAAP) 

$    65,817

$   71,114

$     77,038

$    73,018

$    71,923







    Other operating expenses 

$    42,582

$   42,926

$     43,086

$    48,480

$    45,084

Certain other operating expenses items (1)






Donation to Simmons First Foundation

-

-

-

-

-

Branch right sizing expense

(466)

53

(816)

(953)

(973)

    Adjusted other operating expenses (non-GAAP) 

$    42,116

$   42,979

$     42,270

$    47,527

$    44,111







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

 to Simmons First Foundation, merger related costs, early retirement program 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 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

 (in thousands, except per share data) 






YEAR-TO-DATE






 Net income 

$  151,150

$ 103,903

$     45,589

$  256,412

$  173,152

 Certain items: 






(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

Merger related costs

1,420

1,415

1,396

22,476

22,441

Early retirement program

5,166

3,609

-

-

-

Branch right sizing (net)

1,621

1,074

979

3,628

2,524

Day 2 CECL provision

-

-

-

33,779

33,779

Tax effect (1)

(2,145)

(1,593)

(621)

(14,939)

(15,707)

    Certain items, net of tax 

6,062

4,505

1,754

42,223

44,390

 Adjusted earnings (non-GAAP) 

$  157,212

$ 108,408

$     47,343

$  298,635

$  217,542







 Diluted earnings per share 

$        1.19

$       0.82

$         0.36

$        2.06

$        1.40

 Certain items: 






(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

Merger related costs

0.01

0.01

0.01

0.18

0.18

Early retirement program

0.04

0.03

-

-

-

Branch right sizing (net)

0.02

0.01

0.01

0.03

0.02

Day 2 CECL provision

-

-

-

0.28

0.28

Tax effect (1)

(0.02)

(0.02)

(0.01)

(0.12)

(0.12)

    Certain items, net of tax 

0.05

0.03

0.01

0.34

0.36

 Adjusted diluted earnings per share (non-GAAP) 

$        1.24

$       0.85

$         0.37

$        2.40

$        1.76







 (1) Effective tax rate of 26.135%. 












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










YEAR-TO-DATE






    Noninterest income 

$  133,592

$   90,815

$     45,835

$  170,066

$  125,419

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)

Branch right sizing income

-

-

-

153

153

    Adjusted noninterest income (non-GAAP) 

$  133,592

$   90,815

$     45,835

$  165,760

$  125,187







    Other income 

$    28,532

$   21,099

$     11,256

$    27,361

$    20,761

Certain other income items (1)






(Gain) loss from early retirement of TruPS

-

-

-

365

365

Gain on sale of intellectual property

-

-

-

(750)

(750)

Branch right sizing income

-

-

-

153

153

    Adjusted other income (non-GAAP) 

$    28,532

$   21,099

$     11,256

$    27,129

$    20,529







    Noninterest expense 

$  414,922

$ 282,924

$   143,228

$  566,748

$  424,173

Certain noninterest expense items (1)






Merger related costs

(1,420)

(1,415)

(1,396)

(22,476)

(22,441)

Early retirement program

(5,166)

(3,609)

-

-

-

Donation to Simmons First Foundation

-

-

-

(1,738)

(1,738)

Branch right sizing expense

(1,621)

(1,074)

(979)

(3,475)

(2,371)

    Adjusted noninterest expense (non-GAAP) 

$  406,715

$ 276,826

$   140,853

$  539,059

$  397,623







    Salaries and employee benefits 

$  219,135

$ 151,761

$     77,038

$  286,982

$  213,964

Certain salaries and employee benefits items (1)






Early retirement program

(5,166)

(3,609)

-

-

-

Other

-

-

-

-

-

    Adjusted salaries and employee benefits (non-GAAP) 

$  213,969

$ 148,152

$     77,038

$  286,982

$  213,964







    Other operating expenses 

$  128,594

$   86,012

$     43,086

$  179,693

$  131,213

Certain other operating expenses items (1)






Donation to Simmons First Foundation

-

-

-

(1,738)

(1,738)

Branch right sizing expense

(1,229)

(763)

(816)

(2,650)

(1,697)

    Adjusted other operating expenses (non-GAAP) 

$  127,365

$   85,249

$     42,270

$  175,305

$  127,778







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

 to Simmons First Foundation, merger related costs, early retirement program 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 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

($ 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

$   3,285,555

$   3,356,326

$   3,339,901

$   3,269,362

$    3,157,151

Intangible assets:






   Goodwill

(1,320,799)

(1,320,799)

(1,320,799)

(1,319,598)

(1,309,000)

   Other intangible assets

(116,660)

(120,758)

(124,854)

(128,951)

(133,059)

Total intangibles

(1,437,459)

(1,441,557)

(1,445,653)

(1,448,549)

(1,442,059)

Tangible common stockholders' equity

$   1,848,096

$   1,914,769

$   1,894,248

$   1,820,813

$    1,715,092







Total assets

$ 27,564,325

$ 27,959,123

$ 27,583,446

$ 27,461,061

$  27,076,074

Intangible assets:






   Goodwill

(1,320,799)

(1,320,799)

(1,320,799)

(1,319,598)

(1,309,000)

   Other intangible assets

(116,660)

(120,758)

(124,854)

(128,951)

(133,059)

Total intangibles

(1,437,459)

(1,441,557)

(1,445,653)

(1,448,549)

(1,442,059)

Tangible assets

$ 26,126,866

$ 26,517,566

$ 26,137,793

$ 26,012,512

$  25,634,015







Ratio of common equity to assets

11.92 %

12.00 %

12.11 %

11.91 %

11.66 %

Ratio of tangible common equity to tangible assets

7.07 %

7.22 %

7.25 %

7.00 %

6.69 %







Calculation of Tangible Book Value per Share












Total common stockholders' equity

$   3,285,555

$   3,356,326

$   3,339,901

$   3,269,362

$    3,157,151

Intangible assets:






   Goodwill

(1,320,799)

(1,320,799)

(1,320,799)

(1,319,598)

(1,309,000)

   Other intangible assets

(116,660)

(120,758)

(124,854)

(128,951)

(133,059)

Total intangibles

(1,437,459)

(1,441,557)

(1,445,653)

(1,448,549)

(1,442,059)

Tangible common stockholders' equity

$   1,848,096

$   1,914,769

$   1,894,248

$   1,820,813

$    1,715,092

Shares of common stock outstanding

125,133,281

126,224,707

127,282,192

127,046,654

126,943,467

Book value per common share

$          26.26

$          26.59

$          26.24

$          25.73

$           24.87

Tangible book value per common share

$          14.77

$          15.17

$          14.88

$          14.33

$           13.51







Calculation of Coverage Ratio of Uninsured, Non-Collateralized Deposits











Uninsured deposits at Simmons Bank

$   8,143,200

$   8,507,395

$   8,978,581

$   8,913,990

$    9,315,086

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

2,835,405

3,030,550

3,081,829

2,759,248

3,094,859

Less: Intercompany eliminations

676,840

674,552

628,592

529,042

438,047

Total uninsured, non-collateralized deposits

$   4,630,955

$   4,802,293

$   5,268,160

$   5,625,700

$    5,782,180







FHLB borrowing availability

$   5,372,000

$   5,345,000

$   5,574,000

$   5,442,000

$    3,220,000

Unpledged securities

4,124,000

3,877,000

3,000,000

3,180,000

4,985,000

Fed funds lines, Fed discount window and






  Bank Term Funding Program

1,951,000

1,874,000

2,206,000

1,982,000

504,000

Additional liquidity sources

$ 11,447,000

$ 11,096,000

$ 10,780,000

$ 10,604,000

$    8,709,000







Uninsured, non-collateralized deposit coverage ratio

2.5

2.3

2.0

1.9

1.5

 

Simmons First National Corporation





 SFNC 

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




 For the Quarters Ended 

Sep 30 

Jun 30 

Mar 31 

Dec 31 

Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

($ in thousands)






Calculation of Adjusted Return on Average Assets












Net income

$        47,247

$        58,314

$        45,589

$        83,260

$        80,603

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

-

-

-

-

-

Merger related costs

5

19

1,396

35

1,422

Early retirement program

1,557

3,609

-

-

-

Branch right sizing (net)

547

95

979

1,104

1,235

Day 2 CECL provision

-

-

-

-

-

Tax effect of certain items (2)

(552)

(972)

(621)

768

(594)

Adjusted earnings (non-GAAP)

$        48,804

$        61,065

$        47,343

$        81,093

$        82,281







Average total assets

$ 27,594,611

$ 27,766,139

$ 27,488,732

$ 27,180,575

$ 26,868,731







Return on average assets

0.68 %

0.84 %

0.67 %

1.22 %

1.19 %

Adjusted return on average assets (non-GAAP)

0.70 %

0.88 %

0.70 %

1.18 %

1.21 %







Calculation of Return on Tangible Common Equity












Net income available to common stockholders

$        47,247

$        58,314

$        45,589

$        83,260

$        80,603

Amortization of intangibles, net of taxes

3,027

3,026

3,026

3,035

3,121

Total income available to common stockholders

$        50,274

$        61,340

$        48,615

$        86,295

$        83,724

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

-

-

-

-

-

Merger related costs

5

19

1,396

35

1,422

Early retirement program

1,557

3,609

-

-

-

Branch right sizing (net)

547

95

979

1,104

1,235

Day 2 CECL provision

-

-

-

-

-

Tax effect of certain items (2)

(552)

(972)

(621)

768

(594)

Adjusted earnings (non-GAAP)

48,804

61,065

47,343

81,093

82,281

Amortization of intangibles, net of taxes

3,027

3,026

3,026

3,035

3,121

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

$        51,831

$        64,091

$        50,369

$        84,128

$        85,402







Average common stockholders' equity

$   3,371,678

$   3,358,924

$   3,370,651

$   3,214,912

$   3,292,071

Average intangible assets:






   Goodwill

(1,320,799)

(1,320,799)

(1,319,624)

(1,309,124)

(1,309,804)

   Other intangibles

(119,125)

(123,173)

(127,394)

(131,229)

(135,718)

Total average intangibles

(1,439,924)

(1,443,972)

(1,447,018)

(1,440,353)

(1,445,522)

Average tangible common stockholders' equity (non-GAAP)

$   1,931,754

$   1,914,952

$   1,923,633

$   1,774,559

$   1,846,549







Return on average common equity

5.56 %

6.96 %

5.49 %

10.27 %

9.71 %

Return on tangible common equity

10.33 %

12.85 %

10.25 %

19.29 %

17.99 %

Adjusted return on average common equity (non-GAAP)

5.74 %

7.29 %

5.70 %

10.01 %

9.92 %

Adjusted return on tangible common equity (non-GAAP)

10.64 %

13.42 %

10.62 %

18.81 %

18.35 %







Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)












Noninterest expense (efficiency ratio numerator)

$      131,998

$      139,696

$      143,228

$      142,575

$      138,943

Certain noninterest expense items (non-GAAP)






Merger related costs

(5)

(19)

(1,396)

(35)

(1,422)

Early retirement program

(1,557)

(3,609)

-

-

-

Donation to Simmons First Foundation

-

-

-

-

-

Branch right sizing expense

(547)

(95)

(979)

(1,104)

(1,170)

Other real estate and foreclosure expense adjustment

(228)

(289)

(186)

(350)

(168)

Amortization of intangibles adjustment

(4,097)

(4,098)

(4,096)

(4,108)

(4,225)

Adjusted efficiency ratio numerator

$      125,564

$      131,586

$      136,571

$      136,978

$      131,958







Net interest income

$      153,433

$      163,230

$      177,835

$      193,026

$      193,585

Noninterest income

42,777

44,980

45,835

44,647

43,023

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

6,515

6,106

6,311

6,770

6,203

Efficiency ratio denominator

202,725

214,316

229,981

244,443

242,811







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

(Gain) loss on sale of securities

-

391

-

52

22

Adjusted efficiency ratio denominator

$      202,725

$      214,707

$      229,981

$      240,421

$      242,513







Efficiency ratio (1)

65.11 %

65.18 %

62.28 %

58.33 %

57.22 %

Adjusted efficiency ratio (non-GAAP) (1)

61.94 %

61.29 %

59.38 %

56.97 %

54.41 %







 (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 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

($ in thousands)












Calculation of Pre-Provision Net Revenue (PPNR)












Net interest income

$        153,433

$        163,230

$      177,835

$      193,026

$      193,585

Noninterest income

42,777

44,980

45,835

44,647

43,023

Revenue

196,210

208,210

223,670

237,673

236,608

Less: Gain (loss) on sale of securities

-

(391)

-

(52)

(22)

Less: Noninterest expense

131,998

139,696

143,228

142,575

138,943

Pre-Provision Net Revenue (PPNR)

$          64,212

$          68,905

$        80,442

$        95,150

$        97,687







Calculation of Adjusted Pre-Provision Net Revenue












Pre-Provision Net Revenue (PPNR)

$          64,212

$          68,905

$        80,442

$        95,150

$        97,687

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

-

-

-

-

-

Plus: Merger related costs

5

19

1,396

35

1,422

Plus: Early retirement program costs

1,557

3,609

-

-

-

Plus: Branch right sizing costs

547

95

979

1,104

1,235

Adjusted Pre-Provision Net Revenue

$          66,321

$          72,628

$        82,817

$        92,215

$        99,959

 

Simmons First National Corporation





 SFNC 

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





 For the Quarters Ended 

 Sep 30 

 Jun 30 

 Mar 31 

 Dec 31 

 Sep 30 

 (Unaudited) 

2023

2023

2023

2022

2022

($ in thousands)






Calculation of Adjusted Return on Average Assets












Net income

$      151,150

$      103,903

$        45,589

$      256,412

$      173,152

Certain items (non-GAAP)






(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

Merger related costs

1,420

1,415

1,396

22,476

22,441

Early retirement program

5,166

3,609

-

-

-

Branch right sizing (net)

1,621

1,074

979

3,628

2,524

Day 2 CECL provision

-

-

-

33,779

33,779

Tax effect of certain items (2)

(2,145)

(1,593)

(621)

(14,939)

(15,707)

Adjusted earnings (non-GAAP)

$      157,212

$      108,408

$        47,343

$      298,635

$      217,542







Average total assets

$ 27,616,882

$ 27,628,202

$ 27,488,732

$ 26,418,838

$ 26,162,136







Return on average assets

0.73 %

0.76 %

0.67 %

0.97 %

0.88 %

Adjusted return on average assets (non-GAAP)

0.76 %

0.79 %

0.70 %

1.13 %

1.11 %







Calculation of Return on Tangible Common Equity












Net income available to common stockholders

$      151,150

$      103,903

$        45,589

$      256,412

$      173,152

Amortization of intangibles, net of taxes

9,079

6,052

3,026

11,756

8,721

Total income available to common stockholders

$      160,229

$      109,955

$        48,615

$      268,168

$      181,873

Certain items (non-GAAP)






(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

Merger related costs

1,420

1,415

1,396

22,476

22,441

Early retirement program

5,166

3,609

-

-

-

Branch right sizing (net)

1,621

1,074

979

3,628

2,524

Day 2 CECL provision

-

-

-

33,779

33,779

Tax effect of certain items (2)

(2,145)

(1,593)

(621)

(14,939)

(15,707)

Adjusted earnings (non-GAAP)

157,212

108,408

47,343

298,635

217,542

Amortization of intangibles, net of taxes

9,079

6,052

3,026

11,756

8,721

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

$      166,291

$      114,460

$        50,369

$      310,391

$      226,263







Average common stockholders' equity

$   3,367,088

$   3,364,755

$   3,370,651

$   3,259,664

$   3,274,743

Average intangible assets:






   Goodwill

(1,320,412)

(1,320,215)

(1,319,624)

(1,266,762)

(1,252,486)

   Other intangibles

(123,200)

(125,272)

(127,394)

(121,622)

(118,385)

Total average intangibles

(1,443,612)

(1,445,487)

(1,447,018)

(1,388,384)

(1,370,871)

Average tangible common stockholders' equity (non-GAAP)

$   1,923,476

$   1,919,268

$   1,923,633

$   1,871,280

$   1,903,872







Return on average common equity

6.00 %

6.23 %

5.49 %

7.87 %

7.07 %

Return on tangible common equity

11.14 %

11.55 %

10.25 %

14.33 %

12.77 %

Adjusted return on average common equity (non-GAAP)

6.24 %

6.50 %

5.70 %

9.16 %

8.88 %

Adjusted return on tangible common equity (non-GAAP)

11.56 %

12.03 %

10.62 %

16.59 %

15.89 %







Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)












Noninterest expense (efficiency ratio numerator)

$      414,922

$      282,924

$      143,228

$      566,748

$      424,173

Certain noninterest expense items (non-GAAP)






Merger related costs

(1,420)

(1,415)

(1,396)

(22,476)

(22,441)

Early retirement program

(5,166)

(3,609)

-

-

-

Donation to Simmons First Foundation

-

-

-

(1,738)

(1,738)

Branch right sizing expense

(1,621)

(1,074)

(979)

(3,475)

(2,371)

Other real estate and foreclosure expense adjustment

(703)

(475)

(186)

(1,003)

(653)

Amortization of intangibles adjustment

(12,291)

(8,194)

(4,096)

(15,915)

(11,807)

Adjusted efficiency ratio numerator

$      393,721

$      268,157

$      136,571

$      522,141

$      385,163







Net interest income

$      494,498

$      341,065

$      177,835

$      717,316

$      524,290

Noninterest income

133,592

90,815

45,835

170,066

125,419

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

18,932

12,417

6,311

24,671

17,901

Efficiency ratio denominator

647,022

444,297

229,981

912,053

667,610







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)

Branch right sizing income

-

-

-

153

153

(Gain) loss on sale of securities

391

391

-

278

226

Adjusted efficiency ratio denominator

$      647,413

$      444,688

$      229,981

$      908,025

$      667,604







Efficiency ratio (1)

64.13 %

63.68 %

62.28 %

62.14 %

63.54 %

Adjusted efficiency ratio (non-GAAP) (1)

60.81 %

60.30 %

59.38 %

57.50 %

57.69 %







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

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

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

 a non-GAAP measurement. 






 (2) Effective tax rate of 26.135%. 






 

SOURCE Simmons First National Corporation

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