Investor Relations

Press Release

Simmons Reports Third Quarter 2021 Earnings

Company Release - 10/26/2021 8:00 AM ET

Acquisitions and conversions of Landmark Community Bank and Triumph Bancshares, Inc. completed shortly after end of the quarter – approximately four months after announcement

  • Net income of $80.6 million for the third quarter of 2021, up 22 percent from the year ago quarter and up 8 percent compared to the second quarter of 2021

  • Diluted EPS of $0.74 for the quarter, up 23 percent from the year ago quarter and up 7 percent compared to the second quarter of 2021

  • Loan production tops $1.5 billion in the quarter while loan yields rise 3 bps on a linked quarter basis

  • Total deposits of $18.1 billion at the end of the third quarter of 2021, up $1.1 billion since year-end 2020 while deposit costs dropped 14 bps over the same period

  • Nonperforming loans decline for 4th consecutive quarter, down $21.5 million linked quarter; combined with continued improvement in macroeconomic scenario models drives $19.9 million provision expense recapture in the quarter. Nonperforming loan coverage ratio rises to 341 percent

  • Strong capital position as all regulatory risk-based capital ratios significantly exceed “well-capitalized” guidelines. Approximately 1.8 million shares of common stock repurchased during the third quarter of 2021

PINE BLUFF, Ark., Oct. 26, 2021 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or “Simmons”) today reported net income of $80.6 million for the third quarter of 2021 compared to net income of $65.9 million for the third quarter of 2020, an increase of $14.7 million, or 22 percent. Diluted earnings per share for the third quarter of 2021 were $0.74, an increase of $0.14, or 23 percent, compared to the same period in the prior year. Included in third quarter 2021 results was a $1.2 million net after-tax credit related to merger and integration expenses and net branch right-sizing activity. Excluding the impact of these items, core earnings were $79.4 million for the third quarter of 2021 compared to $68.3 million for the third quarter of 2020, an increase of $11.0 million, or 16 percent. Core diluted earnings per share were $0.73, an increase of $0.10, or 16 percent, from the comparable period in 2020.

On a year-to-date basis, net income for the first nine months of 2021 was $222.9 million, up 10 percent over the $201.9 million earned for the first nine months of 2020. Diluted earnings per share for the first nine months of 2021 were $2.05, up 12 percent compared to the same period in the prior year. Excluding $4.1 million in net after-tax merger-related and net branch right-sizing costs and the after-tax gain primarily associated with the sale of branches in Illinois, core earnings for the first nine months of 2021 were $218.8 million, an increase of $16.5 million compared to the first nine months of 2020. Core diluted earnings per share for the first nine months of 2021 were $2.01, an increase of $0.18, or 10 percent, from the comparable period of 2020.

“Simmons once again delivered solid results in the quarter reflecting our ability to execute basic blocking and tackling fundamentals,” said George A. Makris, Jr., Simmons chairman and CEO. “We also announced the completion of the acquisitions of Tennessee-based Landmark Community Bank and Triumph Bancshares, Inc. shortly after the end of the quarter. To be able to obtain all the necessary approvals, close and simultaneously complete the systems conversions of two banks in approximately four months is a remarkable accomplishment and speaks to the outstanding team we have built at Simmons. We’d like to welcome our new customers, associates and shareholders to the Simmons family.”

“While overall loan growth has been challenging given the high levels of liquidity throughout the system and corresponding paydowns, during the quarter we generated $1.5 billion in loan originations and advances, and our commercial loan pipeline rose for the fourth consecutive quarter to $1.5 billion, up 15 percent on a linked quarter basis. Our ability to build upon this positive momentum, coupled with our outstanding capital position and steadfast attention to maintaining a strong credit culture, give us reason to be cautiously optimistic as we enter the final quarter of the year and look forward to 2022.”

  

Selected Highlights: 3 rd Qtr 2021 2 nd Qtr 2021 3 rd Qtr 2020
Net income $80.6 million     $74.9 million     $65.9 million    
Diluted earnings per share $0.74     $0.69     $0.60    
Return on avg assets 1.37%     1.29%     1.20%    
Return on avg common equity 10.42%     10.08%     8.91%    
Return on tangible common equity (1) 17.43%     17.25%     15.45%    
       
Core earnings (2) $79.4 million     $75.4 million     $68.3 million    
Core diluted earnings per share (2) $0.73     $0.69     $0.63    
Core return on avg assets (2) 1.35%     1.30%     1.25%    
Core return on avg common equity (2) 10.26%     10.15%     9.24%    
Core return on tangible common equity (1)(2) 17.18%     17.36%     16.00%    
Efficiency ratio (3) 58.10%     56.75%     53.58%    
Adjusted pre-tax, pre-provision earnings (2) $72.6 million $74.6 million $87.5 million

 

(1) Return on tangible common equity excludes goodwill and other intangible assets and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(2) Core figures exclude non-core items and are non-GAAP measurements. Adjusted pre-tax, pre-provision earnings exclude provision for income taxes, provisions for credit losses and unfunded commitments, gains on sales of securities, and other pre-tax, non-core items, and is also a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(3) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles, as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
   

Loans

($ in billions) 3 rd Qtr 2021 2 nd Qtr 2021 3 rd Qtr 2020
Total loans $10.8 $11.4 $14.0
       

Total loans at the end of the third quarter of 2021 were $10.8 billion compared to $11.4 billion at the end of the second quarter of 2021 and $14.0 billion at the end of the third quarter of 2020. Loan production increased to $1.5 billion in the third quarter, but was offset by paydowns and payoffs, including higher activity associated with Paycheck Protection Program (“PPP”) loans. PPP loans at the end of the third quarter totaled $212 million, down $229 million from $441 million at the end of the second quarter of 2021.

Despite these headwinds, anecdotal evidence suggests that loan demand may be returning to more normalized levels. For the fourth consecutive quarter, the Company experienced an increase in its commercial loan pipeline. The Company’s total commercial loan pipeline consisting of all loan opportunities was $1.5 billion, up 15 percent on a linked quarter basis, and up substantially from $674 million at December 31, 2020. Loans approved and ready to close at the end of the quarter totaled $493 million.

PPP Loans

($ in millions) PPP Round 1 PPP Round 2 Total PPP Loans
Beginning balance, January 1, 2021 $904.7     $ -   $904.7  
PPP loan originations   -     318.9     318.9  
PPP loan forgiveness and repayments   (882.3)     (129.2)     (1,011.5)  
Ending balance, September 30, 2021 $ 22.4   $ 189.7   $ 212.1  
             

Deposits

($ in billions) 3 rd Qtr 2021 2 nd Qtr 2021 3 rd Qtr 2020
Total deposits $18.1 $18.3 $16.2
Noninterest bearing deposits $4.9 $4.9 $4.5
Interest bearing deposits $10.7 $10.6 $9.0
Time deposits $2.5 $2.8 $2.8
       

Total deposits at the end of the third quarter of 2021 were $18.1 billion, an increase of $1.8 billion or 11 percent from $16.2 billion at the end of the third quarter of 2020. The increase in total deposits from a year ago was fueled by a $1.7 billion increase in interest bearing deposits (checking, savings and money market account) which totaled $10.7 billion at the end of the third quarter of 2021. Growth in noninterest bearing deposits also contributed to the year-over-year increase in total deposits, rising $467 million or 11 percent to $4.9 billion. Time deposits totaled $2.5 billion at the end of the third quarter of 2021, down $346 million from $2.8 billion at the end of the third quarter of 2020.

Net Interest Income

  3 rd Qtr
2021
2 nd Qtr
2021
1 st Qtr
2021
4 th Qtr
2020
3 rd Qtr
2020
Loan yield (1) 4.76 % 4.73 % 4.75 % 4.74 % 4.54 %
Core loan yield (1) (2) 4.61 % 4.54 % 4.53 % 4.47 % 4.29 %
Security yield (1) 1.77 % 1.97 % 2.36 % 2.48 % 2.60 %
Cost of interest bearing deposits 0.27 % 0.32 % 0.41 % 0.47 % 0.54 %
Cost of deposits (3) 0.20 % 0.24 % 0.30 % 0.34 % 0.39 %
Cost of borrowed funds 1.96 % 1.97 % 1.91 % 1.88 % 1.85 %
Net interest margin (1) 2.85 % 2.89 % 2.99 % 3.22 % 3.21 %
Core net interest margin (1) (2) 2.77 % 2.78 % 2.86 % 3.04 % 3.02 %

 

(1) Fully tax equivalent using an effective tax rate of 26.135%.
(2) Core loan yield and core net interest margin exclude accretion and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(3) Includes noninterest bearing deposits.
   

Net interest income for the third quarter of 2021 totaled $145.2 million compared to $146.5 million in the second quarter of 2021 and $153.6 million in the third quarter of 2020. Included in net interest income is accretion recognized on loans acquired totaling $4.1 million in the third quarter of 2021, $5.6 million in the second quarter of 2021 and $8.9 million in the third quarter of 2020. Excluding the impact of accretion, core net interest income for the third quarter of 2021 was up slightly on a linked quarter basis.

The decrease in net interest income from a year ago reflects lower average loan balance, offset in part by an increase in loan yields. To further offset the expected pressure on net interest income given the current low interest rate environment, the Company has been successful in its efforts to reduce deposit costs. Cost of deposits for the third quarter of 2021 were 20 basis points, down 4 basis points on a linked quarter basis and down 19 basis points compared to the third quarter of 2020.

The yield on loans for the third quarter of 2021 was 4.76 percent, up 3 basis points on a linked quarter basis and up 22 basis points compared to the third quarter of 2020. The core loan yield, which excludes accretion, for the third quarter of 2021 was 4.61 percent, up 7 basis points compared to the second quarter of 2021 and up 32 basis points compared to the third quarter of 2020. The yield on PPP loans (including accretion of net fees) was approximately 10.60 percent during the third quarter of 2021, reflecting a substantial increase in forgiveness and repayment activity compared to prior quarters.

The net interest margin on a fully taxable equivalent basis was 2.85 percent for the third quarter of 2021 compared to 2.89 percent for the second quarter of 2021 and 3.21 percent for the third quarter of 2020. Core net interest margin (excluding accretion on acquired loans) was 2.77 percent compared to 2.78 percent for the second quarter of 2021 and 3.02 percent for the third quarter of 2020. During the third quarter of 2021, the Company strategically redeployed excess liquidity through the purchase of approximately $1.2 billion of investments securities, including $226 million of short-term, variable rate investment securities. The duration of the investment securities portfolio at September 30, 2021 was 5.0 years compared to 4.9 years at June 30, 2021.   

Noninterest Income
Noninterest income for the third quarter of 2021 was $48.6 million compared to $47.1 million for the second quarter of 2021 and $69.5 million in the third quarter of 2020. The decrease in noninterest income compared to the third quarter of 2020 is partially attributable to mortgage lending income in the third quarter of 2020, which was aided by strong mortgage production during favorable market conditions. Gains on sales of investment securities totaled $5.2 million in the third quarter of 2021, $5.1 million in the second quarter of 2021 and $22.3 million in the third quarter of 2020. Core noninterest income totaled $48.8 million in the third quarter of 2021 compared to $46.7 million in the second quarter of 2021 and $69.1 million in the third quarter of 2020. Core noninterest income excludes net gains on the sale of branches which totaled $(239,000) in the third quarter of 2021, $445,000 in the second quarter of 2021 and $370,000 in the third quarter of 2020.

Select Noninterest Income Items
($ in millions)
3 rd Qtr
2021
2nd Qtr
2021
1 st Qtr
2021
4 th Qtr
2020
3 rd Qtr
2020
Service charges on deposit accounts $11.6 $10.1 $9.7 $10.8 $10.4
Trust income $7.1 $7.2 $6.7 $6.6 $6.7
Mortgage lending income $5.8 $4.5 $6.4 $3.0 $14.0
SBA lending income $0.2 $0.3 $0.2 $0.5 $0.3
Debit and credit card fees (1) $7.1 $7.1 $6.6 $6.4 $6.5
Gain on sale of securities $5.2 $5.1 $5.5 - $22.3
Other income $6.2 $8.1 $10.3 $10.6 $5.4
           
Core other income (2) $6.5 $7.7 $4.8 $10.3 $5.0

 

(1) During the second quarter of 2021, certain debit and credit card transaction fees were reclassified from noninterest expense to noninterest income. Prior periods have been adjusted to reflect this reclassification.
(2) Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
   

Noninterest Expense
Noninterest expense for the third quarter of 2021 totaled $114.3 million compared to $114.7 million for the second quarter of 2021 and $116.6 million for the third quarter of 2020. Included in noninterest expense are pre-tax, non-core items for merger-related expenses, early retirement and branch right sizing costs. Excluding these items, core noninterest expense was $116.2 million for the third quarter of 2021, $113.5 million for the second quarter of 2021 and $112.9 million for the third quarter of 2020. During the quarter, the Company recorded in other expense a $3.3 million reversal of mark-to-market adjustment related to branches held for sale. As previously announced, during the quarter the Company closed 13 branches in connection with its branch right sizing initiative.

Select Noninterest Expense Items
($ in millions)
3 rd Qtr
2021
2 nd Qtr
2021
1 st Qtr
2021
4 th Qtr
2020
3 rd Qtr
2020
Salaries and employee benefits $61.9 $60.3 $60.3 $55.8 $61.1
Merger related costs $1.4 $0.7 $0.2 $0.7 $0.9
Other operating expenses (1) $34.6 $37.2 $36.1 $52.0 $35.8
           
Core salaries and employee benefits (2) $61.8 $60.3 $60.3 $55.6 $58.7
Core merger related costs (2) - - - - -
Core other operating expenses (2) $38.3 $37.1 $35.9 $41.8 $35.8

 

(1) During the second quarter of 2021, certain debit and credit card transaction fees were reclassified from noninterest expense to noninterest income. Prior periods have been adjusted to reflect this reclassification.
(2) Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
   

Asset Quality



($ in millions)
3 rd Qtr
2021
2 nd Qtr
2021
1 st Qtr
2021
4 th Qtr
2020
3 rd Qtr
2020
Allowance for credit losses on loans to total loans   1.87%     2.00%     1.93%     1.85%     1.77%  
Allowance for credit losses on loans to nonperforming loans   341%     281%     204%     193%     148%  
Nonperforming loans to total loans   0.55%     0.71%     0.95%     0.96%     1.20%  
Net charge-off ratio (annualized)   0.17%     (0.07%)     0.10%     0.52%     0.16%  
Net charge-off ratio YTD (annualized)   0.06%     0.01%     0.10%     0.45%     0.43%  
           
Total nonperforming loans $59.4   $80.9   $115.5   $123.5   $167.9  
Total other nonperforming assets $13.5   $16.3   $12.4   $20.4   $14.6  
                     

For the fourth consecutive quarter, asset quality metric continued to show marked improvement with nonperforming loans now at their lowest level since the fourth quarter of 2018. Total nonperforming loans at the end of the quarter totaled $59.4 million, down $21.5 million compared to $80.9 million at the end of the second quarter of 2021 and down $108.5 million from the third quarter of 2020. Net charge-offs as a percentage of average total loans for the quarter were 17 basis points, relatively unchanged from the 16 basis points recorded in the third quarter a year ago. The increase in net charge-offs on a linked quarter basis was primarily associated with a single previously identified commercial loan. Provision for credit losses in the quarter was a credit of $19.9 million, reflecting continued positive trends in asset quality metrics and improved economic modeling scenarios. The allowance for credit losses at the end of the third quarter of 2021 totaled $202.5 million compared to $227.2 million at the end of the second quarter of 2021 and $248.3 million at the end of the third quarter of 2020. At the same time, all of our coverage ratios remain strong. The allowance to loan ratio ended the quarter at 1.87 percent compared to 2.00 percent at the end of the second quarter of 2021 and 1.77 percent at the end of the third quarter of 2020. The nonperforming loan coverage ratio rose to 341 percent compared to 281 percent at the end of the second quarter of 2021 and 148 percent at the end of the third quarter of 2020.

Foreclosed Assets and Other Real Estate Owned
At September 30, 2021, foreclosed assets and other real estate owned (“OREO”) totaled $11.8 million compared to $15.2 million at the June 30, 2021 and $12.6 million at September 30, 2020. A breakdown of the composition of foreclosed assets and OREO is provided in the table below:



($ in millions)
3 rd Qtr
2021
2 nd Qtr
2021
1 st Qtr
2021
4 th Qtr
2020
3 rd Qtr
2020
Closed bank branches and branch sites $2.7 $4.4 $0.5 $0.6 $0.6
Foreclosed assets – acquired $6.0 $6.7 $7.7 $15.3 $9.3
Foreclosed assets – legacy $3.1 $4.1 $3.0 $2.5 $2.7
           

Capital

  3 rd Qtr
2021
2 nd Qtr
2021
1 st Qtr
2021
4 th Qtr
2020
3 rd Qtr
2020
Stockholders’ equity to total assets 13.1%   13.0%   12.6%   13.3%   13.7%  
Tangible common equity to tangible assets (1) 8.4%   8.4%   7.9%   8.5%   8.7%  
Regulatory common equity tier 1 ratio 14.3%   14.2%   14.1%   13.4%   12.6%  
Regulatory tier 1 leverage ratio 9.1%   9.0%   9.0%   9.1%   9.1%  
Regulatory tier 1 risk-based capital ratio 14.3%   14.2%   14.1%   13.4%   12.6%  
Regulatory total risk-based capital ratio 17.4%   17.5%   17.5%   16.8%   15.8%  

 

(1) Tangible common equity to tangible assets is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
   

Total common stockholders’ equity at the end of the second and third quarters of 2021 totaled $3.0 billion compared to $2.9 billion at the end of the third quarter of 2020. Book value per share at the end of the quarter was $28.42 compared to $28.03 at the end of the second quarter of 2021 and $26.98 at the end of the third quarter of 2020. Tangible book value per share was $17.39 compared to $17.16 at the end of the second quarter of 2021 and $16.07 at the end of the third quarter of 2020. The ratio of stockholders’ equity to total assets at September 30, 2021 was 13.1 percent while tangible common equity to tangible total assets was 8.4 percent. The Company continues to maintain an outstanding capital positions with each of its regulatory capital ratios significantly in excess of “well-capitalized” guidelines.

Share Repurchase Program
During the third quarter of 2021, the Company repurchased approximately 1.8 million shares of its common stock at an average price of $28.48 pursuant to the Company’s stock repurchase program (the “Program”), with remaining capacity under the Program totaling approximately $98.5 million. Market conditions and our capital needs will drive the decisions regarding additional, future stock repurchases.

The Program permits the Company to repurchase shares of its common stock through open market and privately negotiated transactions or otherwise. The timing, pricing, and amount of any repurchases under the Program will be determined by the Company’s management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price of the common stock, corporate considerations, the Company’s working capital and investment requirements, general market and economic conditions, and legal requirements. The Program does not obligate the Company to repurchase any common stock and may be modified, discontinued, or suspended at any time without prior notice.

Simmons First National Corporation
Simmons First National Corporation (NASDAQ: SFNC) is a Mid-South based financial holding company whose principal subsidiary, Simmons Bank, operates more than 200 financial centers in Arkansas, Missouri, Tennessee, Texas, Oklahoma and Kansas. Founded in 1903, Simmons Bank offers comprehensive financial solutions delivered with a client-centric approach. Simmons Bank was named to Forbes’ list of “World’s Best Banks” for the second consecutive year and ranked among the top 30 banks in Forbes’ list of “America’s Best Banks” for 2021. Additional information about Simmons and Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on Twitter or by visiting our newsroom.

Conference Call
Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT today, Tuesday, October 26, 2021. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 6606988. In addition, the call will be available live or in recorded version on the Company’s website at simmonsbank.com for at least 60 days.

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 income available to common shareholders, non-interest income, and non-interest expense certain income and expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches, early retirement program expenses and net branch right-sizing expenses. 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. 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. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses, and management uses these non-GAAP financial measures to assess the performance of the Company’s core 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 quotes, may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, lending capacity and lending activity, loan demand, revenue, assets, asset quality, profitability, 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 benefits associated with the Company’s early retirement program, branch closures and branch sales, the adequacy of the allowance for credit losses, the ability of the Company to manage the impact of the COVID-19 pandemic, and the impacts of the Company’s and its customers’ participation in the PPP. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons common stock specifically, and information technology affecting the financial industry; the effect of steps the Company takes and has taken in response to the COVID-19 pandemic; the severity and duration of the pandemic, including the effectiveness of “booster” vaccination efforts and developments with respect to COVID-19 variants; the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; unemployment; claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to the COVID-19 pandemic; changes in accounting principles relating to loan loss recognition (current expected credit losses, or CECL); the Company’s ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; government legislation; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in the Company’s Form 10-K for the year ended December 31, 2020, which has been filed with, and is available from, the U.S. Securities and Exchange Commission.

FOR MORE INFORMATION CONTACT:
Ed Bilek
EVP, Director of Investor Relations
Simmons First National Corporation
ed.bilek@simmonsbank.com

           
           
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)   2021     2021     2021     2020     2020  
($ in thousands)          
ASSETS          
Cash and non-interest bearing balances due from banks $ 225,500   $ 215,381   $ 227,713   $ 217,499   $ 382,691  
Interest bearing balances due from banks and federal funds sold   1,555,913     2,123,743     3,677,750     3,254,653     2,139,440  
Cash and cash equivalents   1,781,413     2,339,124     3,905,463     3,472,152     2,522,131  
Interest bearing balances due from banks - time   1,780     1,335     1,334     1,579     4,061  
Investment securities - held-to-maturity   1,516,797     931,352     609,500     333,031     47,102  
Investment securities - available-for-sale   6,822,203     6,556,581     4,528,348     3,473,598     2,607,288  
Mortgage loans held for sale   34,628     36,011     63,655     137,378     192,729  
Other assets held for sale   100     100     100     100     389  
Loans:          
Loans   10,825,227     11,386,352     12,195,873     12,900,897     14,017,442  
Allowance for credit losses on loans   (202,508 )   (227,239 )   (235,116 )   (238,050 )   (248,251 )
Net loans   10,622,719     11,159,113     11,960,757     12,662,847     13,769,191  
Premises and equipment   463,924     429,587     427,540     441,692     470,491  
Premises held for sale   -     6,090     13,613     15,008     4,486  
Foreclosed assets and other real estate owned   11,759     15,239     11,168     18,393     12,590  
Interest receivable   68,405     67,916     71,359     72,597     77,352  
Bank owned life insurance   421,762     419,198     257,152     255,630     257,718  
Goodwill   1,075,305     1,075,305     1,075,305     1,075,305     1,075,305  
Other intangible assets   100,428     103,759     107,091     111,110     114,460  
Other assets   304,707     282,449     315,732     289,332     282,102  
Total assets $ 23,225,930   $ 23,423,159   $ 23,348,117   $ 22,359,752   $ 21,437,395  
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Deposits:          
Non-interest bearing transaction accounts $ 4,918,845   $ 4,893,959   $ 4,884,667   $ 4,482,091   $ 4,451,385  
Interest bearing transaction accounts and savings deposits   10,697,451     10,569,602     10,279,997     9,672,608     8,993,255  
Time deposits   2,455,774     2,841,052     3,024,724     2,832,327     2,802,007  
Total deposits   18,072,070     18,304,613     18,189,388     16,987,026     16,246,647  
Federal funds purchased and securities sold          
under agreements to repurchase   217,276     187,215     323,053     299,111     313,694  
Other borrowings   1,338,585     1,339,193     1,340,467     1,342,067     1,342,769  
Subordinated notes and debentures   383,278     383,143     383,008     382,874     382,739  
Other liabilities held for sale   -     -     -     154,620     -  
Accrued interest and other liabilities   184,190     169,629     181,426     217,398     209,305  
Total liabilities   20,195,399     20,383,793     20,417,342     19,383,096     18,495,154  
           
Stockholders' equity:          
Preferred stock   767     767     767     767     767  
Common stock   1,066     1,084     1,083     1,081     1,090  
Surplus   1,974,561     2,021,128     2,017,188     2,014,076     2,032,372  
Undivided profits   1,065,566     1,004,314     948,913     901,006     866,503  
Accumulated other comprehensive (loss) income:          
Unrealized (depreciation) accretion on AFS securities   (11,429 )   12,073     (37,176 )   59,726     41,509  
Total stockholders' equity   3,030,531     3,039,366     2,930,775     2,976,656     2,942,241  
Total liabilities and stockholders' equity $ 23,225,930   $ 23,423,159   $ 23,348,117   $ 22,359,752   $ 21,437,395  
           



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)   2021     2021     2021     2020     2020  
($ in thousands, except per share data)            
INTEREST INCOME            
Loans (including fees) $ 132,216   $ 138,804   $ 146,424   $ 160,115   $ 163,180  
Interest bearing balances due from banks and federal funds sold   763     651     798     716     623  
Investment securities   30,717     27,128     21,573     17,207     14,910  
Mortgage loans held for sale   230     386     639     1,070     1,012  
TOTAL INTEREST INCOME   163,926     166,969     169,434     179,108     179,725  
INTEREST EXPENSE            
Time deposits   4,747     6,061     7,091     7,835     9,437  
Other deposits   4,369     4,721     6,088     6,536     6,769  
Federal funds purchased and securities            
sold under agreements to repurchase   70     192     245     284     335  
Other borrowings   4,893     4,897     4,802     4,869     4,943  
Subordinated notes and debentures   4,610     4,565     4,527     4,624     4,631  
TOTAL INTEREST EXPENSE   18,689     20,436     22,753     24,148     26,115  
NET INTEREST INCOME   145,237     146,533     146,681     154,960     153,610  
Provision for credit losses   (19,890 )   (12,951 )   1,445     6,943     22,981  
NET INTEREST INCOME AFTER PROVISION            
   FOR CREDIT LOSSES   165,127     159,484     145,236     148,017     130,629  
NON-INTEREST INCOME            
Trust income   7,145     7,238     6,666     6,557     6,744  
Service charges on deposit accounts   11,557     10,050     9,715     10,799     10,385  
Other service charges and fees   1,964     2,048     1,922     1,783     1,764  
Mortgage lending income   5,818     4,490     6,447     2,993     13,971  
SBA lending income   191     287     240     484     304  
Investment banking income   732     654     695     676     557  
Debit and credit card fees   7,102     7,073     6,610     6,415     6,478  
Bank owned life insurance income   2,573     2,038     1,523     1,481     1,591  
Gain on sale of securities, net   5,248     5,127     5,471     16     22,305  
Other income   6,220     8,110     10,260     10,557     5,380  
TOTAL NON-INTEREST INCOME   48,550     47,115     49,549     41,761     69,479  
NON-INTEREST EXPENSE            
Salaries and employee benefits   61,902     60,261     60,340     55,762     61,144  
Occupancy expense, net   9,361     9,103     9,300     9,182     9,647  
Furniture and equipment expense   4,895     4,859     5,415     5,940     6,231  
Other real estate and foreclosure expense   339     863     343     551     602  
Deposit insurance   1,870     1,687     1,308     1,627     2,244  
Merger-related costs   1,401     686     233     731     902  
Other operating expenses   34,565     37,198     36,063     52,047     35,807  
TOTAL NON-INTEREST EXPENSE   114,333     114,657     113,002     125,840     116,577  
NET INCOME BEFORE INCOME TAXES   99,344     91,942     81,783     63,938     83,531  
Provision for income taxes   18,770     17,018     14,363     10,970     17,633  
NET INCOME   80,574     74,924     67,420     52,968     65,898  
Preferred stock dividends   13     13     13     13     13  
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 80,561   $ 74,911   $ 67,407   $ 52,955   $ 65,885  
BASIC EARNINGS PER SHARE $ 0.75   $ 0.69   $ 0.62   $ 0.49   $ 0.60  
DILUTED EARNINGS PER SHARE $ 0.74   $ 0.69   $ 0.62   $ 0.49   $ 0.60  
             



Simmons First National Corporation       SFNC
Consolidated Risk-Based Capital          
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited)   2021     2021     2021     2020     2020  
($ in thousands)          
Tier 1 capital          
Stockholders' equity $ 3,030,531   $ 3,039,366   $ 2,930,775   $ 2,976,656   $ 2,942,241  
CECL transition provision (1)   122,787     128,933     131,637     131,430     134,798  
Disallowed intangible assets, net of deferred tax   (1,152,688 )   (1,156,203 )   (1,159,720 )   (1,163,797 )   (1,167,357 )
Unrealized loss (gain) on AFS securities   11,429     (12,073 )   37,176     (59,726 )   (41,509 )
Total Tier 1 capital   2,012,059     2,000,023     1,939,868     1,884,563     1,868,173  
           
Tier 2 capital          
Trust preferred securities and subordinated debt   383,278     383,143     383,008     382,874     382,739  
Qualifying allowance for loan losses and          
reserve for unfunded commitments   60,700     79,138     87,251     89,546     96,734  
Total Tier 2 capital   443,978     462,281     470,259     472,420     479,473  
Total risk-based capital $ 2,456,037   $ 2,462,304   $ 2,410,127   $ 2,356,983   $ 2,347,646  
           
Risk weighted assets $ 14,098,320   $ 14,076,975   $ 13,771,244   $ 14,048,608   $ 14,878,932  
           
Adjusted average assets for leverage ratio $ 22,189,921   $ 22,244,118   $ 21,668,406   $ 20,765,127   $ 20,652,454  
           
Ratios at end of quarter          
Equity to assets   13.05 %   12.98 %   12.55 %   13.31 %   13.72 %
Tangible common equity to tangible assets (2)   8.41 %   8.36 %   7.88 %   8.45 %   8.65 %
Common equity Tier 1 ratio (CET1)   14.27 %   14.20 %   14.08 %   13.41 %   12.55 %
Tier 1 leverage ratio   9.07 %   8.99 %   8.95 %   9.08 %   9.05 %
Tier 1 risk-based capital ratio   14.27 %   14.21 %   14.09 %   13.41 %   12.56 %
Total risk-based capital ratio   17.42 %   17.49 %   17.50 %   16.78 %   15.78 %
           
(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)   2021     2021     2021     2020     2020  
($ in thousands)            
Investment Securities - End of Period            
Held-to-Maturity            
U.S. Government agencies $ 232,549   $ 77,396   $ 77,396   $ -   $ -  
Mortgage-backed securities   57,930     60,649     47,988     22,354     24,297  
State and political subdivisions   1,209,091     793,307     484,116     310,109     21,930  
Other securities   17,227     -     -     568     875  
Total held-to-maturity (net of credit losses)   1,516,797     931,352     609,500     333,031     47,102  
Available-for-Sale            
U.S. Treasury $ 300   $ 600   $ 600   $ -   $ -  
U.S. Government agencies   354,382     554,937     487,679     477,237     471,973  
Mortgage-backed securities   4,421,620     3,987,209     2,133,086     1,394,936     903,687  
State and political subdivisions   1,575,208     1,557,497     1,571,910     1,470,723     1,133,006  
Other securities   470,693     456,338     335,073     130,702     98,622  
Total available-for-sale (net of credit losses)   6,822,203     6,556,581     4,528,348     3,473,598     2,607,288  
Total investment securities (net of credit losses) $ 8,339,000   $ 7,487,933   $ 5,137,848   $ 3,806,629   $ 2,654,390  
Fair value - HTM investment securities $ 1,487,916   $ 935,596   $ 597,694   $ 341,925   $ 49,064  
             
Investment Securities - QTD Average            
Taxable securities $ 5,475,932   $ 4,265,545   $ 2,471,291   $ 1,757,234   $ 1,534,742  
Tax exempt securities   2,496,958     2,157,076     1,919,919     1,528,127     1,155,099  
Total investment securities - QTD average $ 7,972,890   $ 6,422,621   $ 4,391,210   $ 3,285,361   $ 2,689,841  
             

 

Simmons First National Corporation       SFNC  
Consolidated Loans            
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30  
(Unaudited)   2021     2021     2021     2020     2020  
($ in thousands)            
Loan Portfolio - End of Period            
Consumer            
Credit cards $ 175,884   $ 177,634   $ 175,458   $ 188,845   $ 180,848  
Other consumer   182,492     181,712     172,965     202,379     182,768  
Total consumer   358,376     359,346     348,423     391,224     363,616  
Real Estate            
Construction   1,229,740     1,428,165     1,451,841     1,596,255     1,853,360  
Single-family residential   1,540,701     1,608,028     1,730,056     1,880,673     1,997,070  
Other commercial real estate   5,308,902     5,332,655     5,638,010     5,746,863     6,132,823  
Total real estate   8,079,343     8,368,848     8,819,907     9,223,791     9,983,253  
Commercial            
Commercial   1,821,905     2,074,729     2,444,700     2,574,386     2,907,798  
Agricultural   216,735     193,462     155,921     175,905     241,687  
Total commercial   2,038,640     2,268,191     2,600,621     2,750,291     3,149,485  
Other   348,868     389,967     426,922     535,591     521,088  
Total loans $ 10,825,227   $ 11,386,352   $ 12,195,873   $ 12,900,897   $ 14,017,442  
             

 

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)   2021     2021     2021     2020     2020  
($ in thousands)          
Allowance for Credit Losses on Loans          
Beginning balance, after adoption of ASC 326 $ 227,239   $ 235,116   $ 238,050   $ 248,251   $ 231,641  
           
Loans charged off          
Credit cards   711     1,046     1,003     787     832  
Other consumer   463     411     702     960     1,091  
Real estate   5,941     439     1,687     10,415     1,153  
Commercial   932     309     859     8,199     4,327  
Total loans charged off   8,047     2,205     4,251     20,361     7,403  
           
Recoveries of loans previously charged off          
Credit cards   267     244     290     241     276  
Other consumer   408     425     304     355     366  
Real estate   2,068     1,523     403     431     120  
Commercial   463     2,147     320     1,835     936  
Total recoveries   3,206     4,339     1,317     2,862     1,698  
Net loans charged off   4,841     (2,134 )   2,934     17,499     5,705  
Provision for credit losses on loans   (19,890 )   (10,011 )   -     7,298     22,315  
Balance, end of quarter $ 202,508   $ 227,239   $ 235,116   $ 238,050   $ 248,251  
           
Non-performing assets          
Non-performing loans          
Nonaccrual loans $ 59,054   $ 80,282   $ 114,856   $ 122,879   $ 167,713  
Loans past due 90 days or more   334     653     635     578     174  
Total non-performing loans   59,388     80,935     115,491     123,457     167,887  
Other non-performing assets          
Foreclosed assets and other real estate owned   11,759     15,239     11,168     18,393     12,590  
Other non-performing assets   1,724     1,062     1,229     2,016     1,983  
Total other non-performing assets   13,483     16,301     12,397     20,409     14,573  
Total non-performing assets $ 72,871   $ 97,236   $ 127,888   $ 143,866   $ 182,460  
Performing TDRs (troubled debt restructurings) $ 4,251   $ 4,436   $ 3,805   $ 3,138   $ 3,379  
           
Ratios          
Allowance for credit losses on loans to total loans   1.87 %   2.00 %   1.93 %   1.85 %   1.77 %
Allowance for credit losses to non-performing loans   341 %   281 %   204 %   193 %   148 %
Non-performing loans to total loans   0.55 %   0.71 %   0.95 %   0.96 %   1.20 %
Non-performing assets (including performing TDRs)          
to total assets   0.33 %   0.43 %   0.56 %   0.66 %   0.87 %
Non-performing assets to total assets   0.31 %   0.42 %   0.55 %   0.64 %   0.85 %
Annualized net charge offs to total loans   0.17 %   -0.07 %   0.10 %   0.52 %   0.16 %
Annualized net credit card charge offs to          
total credit card loans   0.96 %   1.78 %   1.39 %   1.15 %   1.20 %
           

 

Simmons First National Corporation                       SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis              
For the Quarters Ended                          
(Unaudited)                          
  Three Months Ended Sep 2021   Three Months Ended Jun 2021   Three Months Ended Sep 2020
($ 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 $ 1,866,530   $ 763 0.16%   $ 2,703,920   $ 651 0.10%   $ 2,265,233   $ 623   0.11%  
   Investment securities - taxable   5,475,932     17,076 1.24%     4,265,545     14,594 1.37%     1,534,742     7,193   1.86%  
   Investment securities - non-taxable (FTE)   2,496,958     18,399 2.92%     2,157,076     16,899 3.14%     1,155,099     10,382   3.58%  
   Mortgage loans held for sale   32,134     230 2.84%     49,262     386 3.14%     145,226     1,012   2.77%  
   Loans - including fees (FTE)   11,030,438     132,399   4.76%     11,783,839     138,987 4.73%     14,315,014     163,379   4.54%  
      Total interest earning assets (FTE)   20,901,992     168,867   3.21%     20,959,642     171,517 3.28%     19,415,314     182,589   3.74%  
   Non-earning assets   2,353,549           2,298,279           2,350,007    
     Total assets $ 23,255,541         $ 23,257,921         $ 21,765,321    
                           
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Interest bearing liabilities:                          
   Interest bearing transaction and                          
     savings accounts $ 10,629,142   $ 4,369 0.16%   $ 10,403,932   $ 4,721 0.18%   $ 8,977,886   $ 6,769   0.30%  
   Time deposits   2,645,896     4,747   0.71%       2,930,025     6,061   0.83%       2,998,091     9,437   1.25%  
      Total interest bearing deposits   13,275,038     9,116 0.27%     13,333,957     10,782 0.32%     11,975,977     16,206   0.54%  
   Federal funds purchased and securities                          
     sold under agreement to repurchase   219,604     70 0.13%     240,876     192 0.32%     386,631     335   0.34%  
   Other borrowings   1,338,866     4,893 1.45%     1,340,008     4,897 1.47%     1,357,278     4,943   1.45%  
   Subordinated notes and debentures   383,213     4,610   4.77%       383,078     4,565   4.78%       382,672     4,631   4.81%  
      Total interest bearing liabilities   15,216,721     18,689   0.49%       15,297,919     20,436   0.54%       14,102,558     26,115   0.74%  
Non-interest bearing liabilities:                          
   Non-interest bearing deposits   4,803,171           4,826,927           4,529,782    
   Other liabilities   167,677           151,699           190,169    
      Total liabilities   20,187,569           20,276,545           18,822,509    
Stockholders' equity   3,067,972           2,981,376           2,942,812    
      Total liabilities and stockholders' equity $ 23,255,541         $ 23,257,921         $ 21,765,321    
Net interest income (FTE)     $ 150,178           $ 151,081           $ 156,474  
Net interest spread (FTE)     2.72%       2.74%         3.00%  
Net interest margin (FTE) - quarter-to-date     2.85%       2.89%         3.21%  
                           
Net interest margin (FTE) - year-to-date     2.91%       2.94%         3.43%  
                           
Core net interest margin (FTE) - quarter-to-date (1)   2.77%       2.78%         3.02%  
Core loan yield (FTE) - quarter-to-date (1)     4.61%       4.54%         4.29%  
                           
Core net interest margin (FTE) - year-to-date (1)     2.80%       2.82%         3.20%  
Core loan yield (FTE) - year-to-date (1)     4.56%       4.54%         4.56%  
                           
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.
                           

 

Simmons First National Corporation       SFNC
Consolidated - Selected Financial Data          
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited)   2021     2021     2021     2020     2020  
($ in thousands, except share data)          
QUARTER-TO-DATE          
Financial Highlights - GAAP          
Net Income $ 80,561   $ 74,911   $ 67,407   $ 52,955   $ 65,885  
Diluted earnings per share   0.74     0.69     0.62     0.49     0.60  
Return on average assets   1.37 %   1.29 %   1.20 %   0.96 %   1.20 %
Return on average common equity   10.42 %   10.08 %   9.20 %   7.13 %   8.91 %
Return on tangible common equity   17.43 %   17.25 %   15.85 %   12.48 %   15.45 %
Net interest margin (FTE)   2.85 %   2.89 %   2.99 %   3.22 %   3.21 %
FTE adjustment   4,941     4,548     4,163     3,482     2,864  
Amortization of intangibles   3,331     3,333     3,344     3,351     3,362  
Amortization of intangibles, net of taxes   2,460     2,462     2,470     2,475     2,483  
Average diluted shares outstanding   108,359,890     108,822,175     108,655,293     108,888,264     109,207,294  
Shares repurchased under plan   1,806,205     -     130,916     1,034,364     -  
Average price of shares repurchased   28.48     -     23.53     19.36     -  
Cash dividends declared per common share   0.18     0.18     0.18     0.17     0.17  
Financial Highlights - Core (non-GAAP)          
Core earnings (excludes non-core items) (1) $ 79,350   $ 75,435   $ 63,995   $ 61,977   $ 68,338  
Core diluted earnings per share (1)   0.73     0.69     0.59     0.57     0.63  
Core net interest margin (FTE) (2)   2.77 %   2.78 %   2.86 %   3.04 %   3.02 %
Accretable yield on acquired loans   4,122     5,619     6,630     8,999     8,948  
Efficiency ratio (1)   58.10 %   56.75 %   57.25 %   54.75 %   53.58 %
Core return on average assets (1)   1.35 %   1.30 %   1.14 %   1.13 %   1.25 %
Core return on average common equity (1)   10.26 %   10.15 %   8.73 %   8.34 %   9.24 %
Core return on tangible common equity (1)   17.18 %   17.36 %   15.08 %   14.51 %   16.00 %
YEAR-TO-DATE          
Financial Highlights - GAAP          
Net Income $ 222,879   $ 142,318   $ 67,407   $ 254,852   $ 201,897  
Diluted earnings per share   2.05     1.31     0.62     2.31     1.83  
Return on average assets   1.29 %   1.25 %   1.20 %   1.18 %   1.25 %
Return on average common equity   9.91 %   9.64 %   9.20 %   8.72 %   9.27 %
Return on tangible common equity   16.86 %   16.56 %   15.85 %   15.25 %   16.19 %
Net interest margin (FTE)   2.91 %   2.94 %   2.99 %   3.38 %   3.43 %
FTE adjustment   13,652     8,711     4,163     11,001     7,519  
Amortization of intangibles   10,008     6,677     3,344     13,495     10,144  
Amortization of intangibles, net of taxes   7,392     4,932     2,470     9,968     7,493  
Average diluted shares outstanding   108,667,928     108,746,439     108,655,293     110,173,661     110,480,508  
Cash dividends declared per common share   0.54     0.36     0.18     0.68     0.51  
Financial Highlights - Core (non-GAAP)          
Core earnings (excludes non-core items) (1) $ 218,780   $ 139,430   $ 63,995   $ 264,300   $ 202,323  
Core diluted earnings per share (1)   2.01     1.28     0.59     2.40     1.83  
Core net interest margin (FTE) (2)   2.80 %   2.82 %   2.86 %   3.16 %   3.20 %
Accretable yield on acquired loans   16,371     12,249     6,630     41,507     32,508  
Efficiency ratio (1)   57.37 %   57.00 %   57.25 %   54.18 %   53.99 %
Core return on average assets (1)   1.27 %   1.22 %   1.14 %   1.22 %   1.26 %
Core return on average common equity (1)   9.73 %   9.45 %   8.73 %   9.05 %   9.29 %
Core return on tangible common equity (1)   16.56 %   16.23 %   15.08 %   15.79 %   16.22 %
END OF PERIOD          
Book value per share $ 28.42   $ 28.03   $ 27.04   $ 27.53   $ 26.98  
Tangible book value per share   17.39     17.16     16.13     16.56     16.07  
Shares outstanding   106,603,231     108,386,669     108,345,732     108,077,662     109,023,781  
Full-time equivalent employees   2,740     2,783     2,817     2,827     2,840  
Total number of financial centers   185     198     198     204     226  
           
(1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.
           

 

Simmons First National Corporation       SFNC
Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Quarter-to-Date  
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited)   2021     2021     2021     2020     2020  
($ in thousands, except per share data)          
QUARTER-TO-DATE          
Net Income $ 80,561   $ 74,911   $ 67,407   $ 52,955   $ 65,885  
Non-core items          
Gain on sale of branches   -     (16 )   (5,300 )   (275 )   -  
Merger-related costs   1,401     686     233     731     902  
Early retirement program   -     -     -     62     2,346  
Branch right-sizing (net)   (3,041 )   39     448     11,696     72  
Tax effect (1)   429     (185 )   1,207     (3,192 )   (867 )
Net non-core items   (1,211 )   524     (3,412 )   9,022     2,453  
Core earnings (non-GAAP) $ 79,350   $ 75,435   $ 63,995   $ 61,977   $ 68,338  
           
Diluted earnings per share $ 0.74   $ 0.69   $ 0.62   $ 0.49   $ 0.60  
Non-core items          
Gain on sale of branches   -     -     (0.05 )   -     -  
Merger-related costs   0.01     0.01     -     -     0.01  
Early retirement program   -     -     -     -     0.02  
Branch right-sizing (net)   (0.03 )   -     0.01     0.11     -  
Tax effect (1)   0.01     (0.01 )   0.01     (0.03 )   -  
Net non-core items   (0.01 )   -     (0.03 )   0.08     0.03  
Core diluted earnings per share (non-GAAP) $ 0.73   $ 0.69   $ 0.59   $ 0.57   $ 0.63  
           
(1) Effective tax rate of 26.135%.          
           
Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP)  
           
QUARTER-TO-DATE          
   Other income $ 6,220   $ 8,110   $ 10,260   $ 10,557   $ 5,380  
Non-core items (1)   239     (445 )   (5,477 )   (275 )   (370 )
   Core other income (non-GAAP) $ 6,459   $ 7,665   $ 4,783   $ 10,282   $ 5,010  
           
   Non-interest expense $ 114,333   $ 114,657   $ 113,002   $ 125,840   $ 116,577  
Non-core items (1)   1,879     (1,154 )   (858 )   (12,489 )   (3,690 )
   Core non-interest expense (non-GAAP) $ 116,212   $ 113,503   $ 112,144   $ 113,351   $ 112,887  
           
   Salaries and employee benefits $ 61,902   $ 60,261   $ 60,340   $ 55,762   $ 61,144  
Non-core items (1)   (66 )   -     -     (144 )   (2,448 )
   Core salaries and employee benefits (non-GAAP) $ 61,836   $ 60,261   $ 60,340   $ 55,618   $ 58,696  
           
   Merger related costs $ 1,401   $ 686   $ 233   $ 731   $ 902  
Non-core items (1)   (1,401 )   (686 )   (233 )   (731 )   (902 )
   Core merger related costs (non-GAAP) $ -   $ -   $ -   $ -   $ -  
           
   Other operating expenses $ 34,565   $ 37,198   $ 36,063   $ 52,047   $ 35,807  
Non-core items (1)   3,759     (89 )   (208 )   (10,270 )   (11 )
   Core other operating expenses (non-GAAP) $ 38,324   $ 37,109   $ 35,855   $ 41,777   $ 35,796  
           
(1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and branch right-sizing costs.
           

 

Simmons First National Corporation       SFNC
Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Year-to-Date  
For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
(Unaudited)   2021     2021     2021     2020     2020  
($ in thousands, except per share data)          
YEAR-TO-DATE          
Net Income $ 222,879   $ 142,318   $ 67,407   $ 254,852   $ 201,897  
Non-core items          
Gain on sale of branches   (5,316 )   (5,316 )   (5,300 )   (8,368 )   (8,093 )
Merger-related costs   2,320     919     233     4,531     3,800  
Early retirement program   -     -     -     2,901     2,839  
Branch right-sizing (net)   (2,554 )   487     448     13,727     2,031  
Tax effect (1)   1,451     1,022     1,207     (3,343 )   (151 )
Net non-core items   (4,099 )   (2,888 )   (3,412 )   9,448     426  
Core earnings (non-GAAP) $ 218,780   $ 139,430   $ 63,995   $ 264,300   $ 202,323  
           
Diluted earnings per share $ 2.05   $ 1.31   $ 0.62   $ 2.31   $ 1.83  
Non-core items          
Gain on sale of branches   (0.05 )   (0.05 )   (0.05 )   (0.07 )   (0.07 )
Merger-related costs   0.02     0.01     -     0.04     0.03  
Early retirement program   -     -     -     0.03     0.02  
Branch right-sizing (net)   (0.02 )   -     0.01     0.12     0.02  
Tax effect (1)   0.01     0.01     0.01     (0.03 )   -  
Net non-core items   (0.04 )   (0.03 )   (0.03 )   0.09     -  
Core diluted earnings per share (non-GAAP) $ 2.01   $ 1.28   $ 0.59   $ 2.40   $ 1.83  
           
(1) Effective tax rate of 26.135%.          
           
Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP)  
           
YEAR-TO-DATE          
   Other income $ 24,590   $ 18,370   $ 10,260   $ 38,547   $ 27,990  
Non-core items (1)   (5,683 )   (5,922 )   (5,477 )   (8,738 )   (8,463 )
   Core other income (non-GAAP) $ 18,907   $ 12,448   $ 4,783   $ 29,809   $ 19,527  
           
   Non-interest expense $ 341,992   $ 227,659   $ 113,002   $ 484,736   $ 358,896  
Non-core items (1)   (133 )   (2,012 )   (858 )   (21,529 )   (9,040 )
   Core non-interest expense (non-GAAP) $ 341,859   $ 225,647   $ 112,144   $ 463,207   $ 349,856  
           
   Salaries and employee benefits $ 182,503   $ 120,601   $ 60,340   $ 242,474   $ 186,712  
Non-core items (1)   (66 )   -     -     (3,085 )   (2,941 )
   Core salaries and employee benefits (non-GAAP) $ 182,437   $ 120,601   $ 60,340   $ 239,389   $ 183,771  
           
   Merger related costs $ 2,320   $ 919   $ 233   $ 4,531   $ 3,800  
Non-core items (1)   (2,320 )   (919 )   (233 )   (4,531 )   (3,800 )
   Core merger related costs (non-GAAP) $ -   $ -   $ -   $ -   $ -  
           
   Other operating expenses $ 107,826   $ 73,261   $ 36,063   $ 165,201   $ 113,154  
Non-core items (1)   3,462     (297 )   (208 )   (12,155 )   (1,885 )
   Core other operating expenses (non-GAAP) $ 111,288   $ 72,964   $ 35,855   $ 153,046   $ 111,269  
           
(1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and branch right-sizing costs.
           

 

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)   2021     2021     2021     2020     2020  
($ 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 $ 3,029,764   $ 3,038,599   $ 2,930,008   $ 2,975,889   $ 2,941,474  
Intangible assets:          
   Goodwill   (1,075,305 )   (1,075,305 )   (1,075,305 )   (1,075,305 )   (1,075,305 )
   Other intangible assets   (100,428 )   (103,759 )   (107,091 )   (111,110 )   (114,460 )
Total intangibles   (1,175,733 )   (1,179,064 )   (1,182,396 )   (1,186,415 )   (1,189,765 )
Tangible common stockholders' equity $ 1,854,031   $ 1,859,535   $ 1,747,612   $ 1,789,474   $ 1,751,709  
           
Total assets $ 23,225,930   $ 23,423,159   $ 23,348,117   $ 22,359,752   $ 21,437,395  
Intangible assets:          
   Goodwill   (1,075,305 )   (1,075,305 )   (1,075,305 )   (1,075,305 )   (1,075,305 )
   Other intangible assets   (100,428 )   (103,759 )   (107,091 )   (111,110 )   (114,460 )
Total intangibles   (1,175,733 )   (1,179,064 )   (1,182,396 )   (1,186,415 )   (1,189,765 )
Tangible assets $ 22,050,197   $ 22,244,095   $ 22,165,721   $ 21,173,337