Simmons First National Corp (SFNC) SEC Filing 10-Q Quarterly Report for the period ending Friday, March 31, 2023

Exhibit 99.1

 

 

April 25, 2023

 

Simmons First National Corporation Reports First Quarter 2023 Results

 

Bob Fehlman, Simmons’ Chief Executive Officer, commented on first quarter 2023 results

 

While the continued challenges from rising interest rates, coupled this quarter with heightened market volatility, brought amplified attention to the financial services industry, our focus remained on the fundamentals that have served us well during our 120-year history.   Deposit levels were stable, further highlighting the granularity of our deposit base, as well as the long-term relationships we have with many of our customers. Consistent with industry trends, we experienced migration to higher rate deposits throughout the quarter, resulting in an increase in the cost of deposits. Despite these challenges, we continued to operate from a position of strength given our solid liquidity position. Uninsured deposits represented only 23 percent of total deposits. At $10.8 billion, additional liquidity sources available to the company represented 2.0 times the level of uninsured deposits. Capital levels increased with all regulatory capital ratios significantly above “well-capitalized” guidelines, and our TCE ratio ended the quarter at 7.3 percent. Key credit quality metrics also remained strong with our NPL coverage ratio at 324 percent and our allowance to loan ratio at 1.25 percent.   Overall expenses were well contained in the quarter. Through our Better Bank Initiative, we have identified an estimated $15 million in annual noninterest expense cost savings that we expect to be fully incorporated into our run-rate by the end of 2023. The programs under this initiative are designed to optimize operational processes, further improve the customer experience and increase our capacity to capitalize on organic growth opportunities, while at the same time improving our long-term growth profile.

 

Financial Highlights	1Q23	4Q22	1Q22		Q1 23 Highlights
Balance Sheet (in millions)					Metrics as of quarter end:   · Stable deposit levels further highlight the granularity of our deposit portfolio and long-term relationships with many customers   · Solid liquidity position with loan to deposit ratio at 74%; other borrowings unchanged at 6% of total liabilities   · Uninsured deposits represented 23% of total deposits; additional liquidity sources provide 2.0x coverage of uninsured deposits   · Disciplined loan growth as total loans increase 3% on a linked quarter basis   · Maintained strong credit quality metrics; NPL coverage ratio at 324% and allowance to loan ratio of 1.25%   · All regulatory capital ratios continue to significantly exceed “well-capitalized guidelines; TCE ratio1 at 7.3%
Total deposits	$22,452	$22,548	$19,392
Total loans	16,555	16,142	12,029
Total investment securities	7,521	7,613	8,197
Total shareholders’ equity	3,340	3,269	2,962
Asset Quality
Net charge-off ratio	0.03%	0.13%	0.22%
Nonperforming loan ratio	0.38	0.37	0.53
Nonperforming assets to total assets	0.26	0.23	0.29
Allowance for credit losses to total loans	1.25	1.22	1.49
Nonperforming loan coverage ratio	324	334	278
Capital Ratios
Equity to assets	12.11%	11.91%	12.10%
Tangible common equity (TCE) ratio 1	7.25	7.00	7.37
Common equity tier 1 (CET1) ratio	11.87	11.90	13.52
Total risk-based capital ratio	14.47	14.22	16.42
Liquidity ($ in millions)
Loan to deposit ratio	73.74%	71.59%	62.03%
Borrowed funds to total liabilities	6.32%	5.73%	8.91%
Uninsured deposits	$  5,268	$  6,740	$5,910
Additional liquidity sources	$10,780	$10,604	$8,358
Coverage ratio of uninsured deposits	2.0x	1.6x	1.4x
Performance Measures (in millions)
Total revenue	$223.7	$237.7	$187.8
Pre-provision net revenue1	80.4	95.2	59.5
Adjusted pre-provision net revenue1	82.8	92.2	62.3
Provision for credit losses on loans	10.9	-	(19.9)
Provision for credit losses on securities	13.3	-	-
Noninterest income	45.8	44.6	42.2
Noninterest expense	143.2	142.6	128.4

 

P.O. BOX 7009 501 MAIN STREET PINE BLUFF, ARKANSAS 71611-7009 (870) 541-1000 www.simmonsbank.com

Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $45.6 million for the first quarter of 2023, compared to $83.3 million in the fourth quarter of 2022 and $65.1 million in the first quarter of 2022. Diluted earnings per share were $0.36 for the first quarter of 2023, compared to $0.65 in the fourth quarter of 2022 and $0.58 in the first quarter of 2022. Adjusted earnings¹ for the first quarter of 2023 were $47.3 million, compared to $81.1 million in the fourth quarter of 2022 and $67.2 million in the first quarter of 2022. A summary of certain items, consisting primarily of merger related costs and branch right-sizing costs, are described in the “Reconciliation of Non-GAAP Financial Measures” tables below.

 

Total revenue for the first quarter of 2023 was $223.7 million, compared to $237.7 million in the fourth quarter of 2022 and $187.8 million in the first quarter of 2022. Pre-provision net revenue¹ for the first quarter of 2023 was $80.4 million, compared to $95.2 million in the fourth quarter of 2022 and $59.5 million in the first quarter of 2022. Adjusted pre-provision net revenue¹ was $82.8 million, compared to $92.2 million in the fourth quarter of 2022 and $62.3 million in the first quarter of 2022.

 

The decline in revenue and pre-provision net revenue on a linked quarter basis primarily reflected a decrease in net interest income, as an increase in deposit cost and the continued change in the mix of deposits more than offset an increase in interest income on earning assets, an increase in noninterest income and well contained noninterest expense growth. Results for the first quarter of 2023 also include a provision for credit losses of $24.2 million, reflecting loan growth in the quarter, the impact of updated economic assumptions and the identification of two nonperforming corporate bonds in the securities portfolio. During the fourth quarter of 2022, the Company did not record a provision for credit losses, and in the first quarter of 2022 recorded a recapture of provision expense of $19.9 million.

 

Net Interest Income

Net interest income for the first quarter of 2023 totaled $177.8 million, compared to $193.0 million for the fourth quarter of 2022 and $145.6 million for the first quarter of 2022. Included in net interest income is accretion recognized on assets acquired, which totaled $2.6 million in the first quarter of 2023, $4.5 million in the fourth quarter of 2022 and $3.7 million in the first quarter of 2022. On a linked quarter basis, interest income increased $14.6 million, while interest expense increased $29.7 million primarily as a result of the competitive interest rate environment and the corresponding migration to higher rate deposits products.

 

The yield on loans for the first quarter of 2023 was 5.67 percent, compared to 5.40 percent in the fourth quarter of 2022 and 4.34 percent in the first quarter of 2022. The yield on investment securities for the first quarter of 2023 was 2.92 percent, compared to 2.68 percent for the fourth quarter of 2022 and 1.86 percent for the first quarter of 2022. Cost of deposits for the first quarter of 2023 was 1.58 percent, compared to 1.02 percent for the fourth quarter of 2022 and 0.14 percent for the first quarter of 2022. The increase in the cost of deposits reflected the dramatic increase in interest rates during 2022 and the first quarter of 2023, customer migration to higher rate deposit products and increased competition for deposits. The net interest margin on a fully taxable equivalent basis for the first quarter of 2023 was 3.09 percent, compared to 3.31 percent for the fourth quarter of 2022 and 2.76 percent for the first quarter of 2022.

 

 

			Q1 23				Q4 22				Q3 22				Q2 22				Q1 22
Loan yield (FTE)2			5.67	%			5.40	%			4.86	%			4.54	%			4.34	%
Investment securities yield (FTE)2			2.92				2.68				2.29				2.08				1.86
Cost of interest bearing deposits			2.10				1.41				0.65				0.25				0.19
Cost of deposits			1.58				1.02				0.47				0.18				0.14
Cost of borrowed funds			4.29				3.92				2.66				2.13				1.94
Net interest spread (FTE)2			2.52				2.87				3.11				3.11				2.66
Net interest margin (FTE)2			3.09				3.31				3.34				3.24				2.76

 

Noninterest Income

Noninterest income for the first quarter of 2023 was $45.8 million, compared to $44.6 million in the fourth quarter of 2022 and $42.2 million in the first quarter of 2022. Included in first quarter 2023 results is a $4.0 million legal reserve recapture associated with previously disclosed legal matters. The fourth quarter of 2022 included a $4.1 million gain on insurance settlement related to a weather event that caused severe damage to one of our branches. Adjusted noninterest income¹ for the first quarter of 2023 was $45.8 million, compared to $40.6 million in the fourth quarter of 2022 and $42.2 million for the first quarter of 2022. The increase in adjusted noninterest income on a linked quarter basis was primarily attributable to an increase in service charges on deposit accounts and mortgage lending income and legal reserve recapture, offset by a market driven decline in wealth management fees. On a year-over-year basis, the increase in noninterest income was primarily attributable to an increase in service charges on deposit accounts, debit and credit card fees and legal reserve recapture, offset in part by a decline in mortgage lending income resulting from reduced activity throughout the housing market given the dramatic increase in interest rates.

 

Noninterest Income $ in millions			Q1 23				Q4 22				Q3 22				Q2 22				Q1 22
Service charges on deposit accounts		$	12.4			$	11.9			$	12.6			$	11.4			$	10.7
Wealth management fees			7.4				8.2				8.6				7.2				8.0
Debit and credit card fees			8.0				7.8				7.7				8.2				7.4
Mortgage lending income			1.6				1.1				2.6				2.2				4.6
Other service charges and fees			2.3				2.0				2.1				1.9				1.6
Bank owned life insurance			3.0				3.0				2.9				2.6				2.7
Gain (loss) on sale of securities			-				(0.1	)			-				(0.2	)			(0.1	)
Gain on insurance settlement			-				4.1				-				-				-
Other income			11.3				6.6				6.7				6.8				7.3
Adjusted other income1			11.3				6.6				6.3				6.9				7.3

 

Noninterest Expense

Noninterest expense for the first quarter of 2023 was $143.2 million, compared to $142.6 million in the fourth quarter of 2022 and $128.4 million in the first quarter of 2022. Included in noninterest expense are certain items, primarily consisting of merger related and branch right sizing costs, totaling $2.4 million in the first quarter of 2023, $1.1 million the fourth quarter of 2022 and $2.8 million in the first quarter of 2022. Excluding these items (which are described in the “Reconciliation of Non-GAAP Financial Measures” tables below), adjusted noninterest expense¹ was $140.9 million in the first quarter of 2023, $141.4 million in the fourth quarter of 2022 and $125.6 million in the first quarter of 2022. The decrease in adjusted noninterest expense on a linked quarter basis was primarily due to a decrease in other operating expenses, which in the fourth quarter of 2022 included $1.2 million related to the amortization of certain tax credits. The increase in salaries and employee benefits on a linked quarter basis reflected seasonal payroll taxes incurred during the first quarter, 401(k) profit sharing contribution and equity awards compensation. The increase in adjusted noninterest expense compared to the first quarter of 2022 primarily reflects the aforementioned items, as well as the acquisition of Spirit of Texas Bancshares, Inc. (Spirit) which closed early in the second quarter of 2022.

 

Noninterest Expense $ in millions			Q1 23				Q4 22				Q3 22				Q2 22				Q1 22
Salaries and employee benefits		$	77.0			$	73.0			$	71.9			$	74.1			$	67.9
Occupancy expense, net			11.6				11.6				11.7				11.0				10.0
Furniture and equipment			5.1				5.4				5.4				5.1				4.8
Deposit insurance			4.9				3.7				3.3				2.8				1.8
Other real estate and foreclosure expense			0.2				0.4				0.2				0.1				0.3
Merger related costs			1.4				-				1.4				19.1				1.9
Other operating expenses			43.1				48.5				45.1				44.5				41.6
Adjusted other operating expenses1			42.3				47.5				44.1				42.7				40.9
Efficiency ratio			62.28	%			58.33	%			57.22	%			67.77	%			66.39	%
Adjusted efficiency ratio1			59.38	%			56.97	%			54.41	%			56.74	%			62.95	%

 

Loans and Unfunded Loan Commitments

Total loans at the end of the first quarter of 2023 were $16.6 billion, an increase of $413 million, or 3 percent, compared to $16.1 billion at the end of the fourth quarter of 2022. The increase in total loans was supported by diverse growth in terms of type and by geographic market. On a year-over-year basis, total loans were up $4.5 billion, or 38 percent, reflecting, in large part, the acquisition of Spirit.

 

Unfunded commitments at the end of the first quarter of 2023 were $4.7 billion, compared to $5.0 billion at the end of the fourth quarter of 2022 and $3.4 billion at the end of the first quarter of 2022. While unfunded commitments are considered a key indicator of future loan growth, higher interest rates, softening economic conditions and forecasts of a potential recession in the U.S. have resulted in lower activity in our commercial loan pipeline. Commercial loans approved and ready to close at the end of the first quarter of 2023 totaled $504 million and the rate on ready to close commercial loans was 7.32 percent, up 47 basis points from the rate on ready to close commercial loans at the end of the fourth quarter of 2022.

 

$ in millions			Q1 23				Q4 22				Q3 22				Q2 22				Q1 22
Total loans		$	16,555			$	16,142			$	15,607			$	15,110			$	12,029
Unfunded loan commitments		$	4,725			$	5,000			$	5,138			$	4,473			$	3,428

 

Deposits

Total deposits at the end of the first quarter of 2023 were $22.5 billion, relatively unchanged from the end of the fourth quarter of 2022, and up $3.1 billion compared to the first quarter of 2022. Noninterest bearing deposits totaled $5.5 billion at the end of the first quarter of 2023, compared to $6.0 billion at the end of the fourth quarter of 2022 and $5.2 billion at the end of the first quarter of 2022. Noninterest bearing deposits represent 24 percent of total deposits at the end of the first quarter of 2023, compared to 27 percent at the end of both the fourth quarter of 2022 and the first quarter of 2022. Interest bearing transaction accounts totaled $11.3 billion at the end of the first quarter of 2023, compared to $11.8 billion at the end of the fourth quarter of 2022 and $12.1 billion at the end of the first quarter of 2022. Time deposits totaled $5.7 billion at the end of the first quarter of 2023, compared to $4.8 billion at the end of the fourth quarter of 2022 and $2.1 billion at the end of the first quarter of 2022. The change in the mix of deposits on a linked quarter basis continued to reflect increased market competition and consumer migration toward higher rate deposits, principally certificates of deposits, given the rapid increase in interest rates that has occurred over the past year. The loan to deposit ratio ended the first quarter of 2023 at 74 percent, compared to 72 percent at the end of the fourth quarter of 2022 and 62 percent at the end of the first quarter of 2022.

 

$ in millions			Q1 23				Q4 22				Q3 22				Q2 22				Q1 22
Noninterest bearing deposits		$	5,489			$	6,017			$	6,218			$	6,057			$	5,224
Interest bearing transaction accounts			11,284				11,763				12,104				12,816				12,106
Time deposits			5,679				4,768				3,827				3,163				2,062
Total deposits		$	22,452			$	22,548			$	22,149			$	22,036			$	19,392
Noninterest bearing deposits to total deposits			24	%			27	%			28	%			27	%			27	%
Total loans to total deposits			74				72				70				69				62

 

Asset Quality

Total nonperforming loans at the end of the first quarter of 2023 were $63.7 million, compared to $58.9 million at the end of the fourth quarter of 2022 and $64.3 million at the end of the first quarter of 2022. Total nonperforming assets as a percentage of total assets were 0.26 percent at the end of the first quarter of 2023, compared to 0.23 percent at the end of the fourth quarter 2022 and 0.29 percent at the end of the first quarter of 2022. The increase in nonperforming assets on a linked quarter basis was primarily due to isolated corporate bonds in the investment securities portfolio totaling approximately $4.0 million. Net charge-offs as a percentage of average loans for the first quarter of 2023 were 3 basis points, compared to 13 basis points in the fourth quarter of 2022 and 22 basis points in the first quarter of 2022.

 

Provision for credit losses totaled $24.2 million in the first quarter of 2023, compared to provision recapture of $19.9 million in the first quarter of 2022. Of the total provision for credit losses recorded in the first quarter of 2023, approximately $10.9 million was related to loans, reflecting loan growth in the quarter, as well as the impact of updated economic assumptions. Approximately $13.3 million of provision for credit losses was related to decreases in the value of corporate bonds in the investment securities portfolio, including the previously noted securities classified as nonperforming during the quarter. The allowance for credit losses on loans at the end of the first quarter of 2023 was $206.6 million, compared to $197.0 million at the end of the fourth quarter of 2022 and $178.9 million at the end of the first quarter of 2022. The nonperforming loan coverage ratio ended the quarter at 324 percent, compared to 334 percent at the end of the fourth quarter of 2022 and 278 percent at the end of the first quarter of 2022. The reserve for unfunded commitments totaled $41.9 million at the end of the first quarter of 2023, unchanged from fourth quarter 2022 levels and up from $22.4 million at the end of the first quarter of 2022.

 

$ in millions		Q1 23				Q4 22				Q3 22				Q2 22				Q1 22
Allowance for credit losses on loans to total loans			1.25	%			1.22	%			1.27	%			1.41	%			1.49	%
Allowance for credit losses on loans to nonperforming loans			324				334				342				334				278
Nonperforming loans to total loans			0.38				0.37				0.37				0.42				0.53
Net charge-off ratio (annualized)			0.03				0.13				-				0.02				0.22
Net charge-off ratio YTD (annualized)			0.03				0.09				0.07				0.11				0.22
Total nonperforming loans		$	63.7			$	58.9			$	57.8			$	63.6			$	64.3
Total other nonperforming assets			7.7				3.6				4.7				6.4				6.6
Total nonperforming assets		$	71.4			$	62.5			$	62.5			$	70.0			$	70.9
Reserve for unfunded commitments		$	41.9			$	41.9			$	41.9			$	25.9			$	22.4

 

Capital

Total common stockholders’ equity at the end of the first quarter of 2023 was $3.3 billion, compared to $3.0 billion at the end of the first quarter of 2022. On a linked quarter basis, total common stockholders’ equity increased $70.5 million primarily as a result of a $46.9 million decrease in unrealized losses associated with investment securities classified as available-for-sale. Book value per share at the end of the first quarter of 2023 was $26.24, compared to $25.73 at the end of the fourth quarter of 2022 and $26.32 at the end of the first quarter of 2022. Tangible book value per share¹ was $14.88 at the end of the first quarter of 2023, compared to $14.33 at the end of the fourth quarter of 2022 and $15.22 at the end of the first quarter of 2022. Stockholders’ equity to total assets at March 31, 2023, was 12.1 percent, compared to 11.9 percent at the end of the fourth quarter of 2022 and 12.1 percent at the end of the first quarter of 2022. Tangible common equity to tangible assets¹ was 7.3 percent at March 31, 2023, compared to 7.0 percent at December 31, 2022, and 7.4 percent at March 31, 2022. All of Simmons’ regulatory capital ratios significantly exceed “well-capitalized” guidelines.

 

		Q1 23				Q4 22				Q3 22				Q2 22				Q1 22
Stockholders’ equity to total assets			12.1	%			11.9	%			11.7	%			12.0	%			12.1	%
Tangible common equity to tangible assets1			7.3				7.0				6.7				7.0				7.4
Common equity tier 1 (CET1) ratio			11.9				11.9				11.7				12.1				13.5
Tier 1 leverage ratio			9.2				9.3				9.2				9.2				9.0
Tier 1 risk-based capital ratio			11.9				11.9				11.7				12.1				13.5
Total risk-based capital ratio			14.5				14.2				14.1				14.8				16.4

 

Share Repurchase Program and Cash Dividend

As a result of Simmons’ solid capital position and its ability to organically generate capital, the board of directors declared a cash dividend on Simmons’ Class A common stock for the second quarter of 2023 of $0.20 per share, which represents a 5 percent increase from the cash dividend paid for the same time period last year. The cash dividend is payable on July 3, 2023, to shareholders of record as of June 15, 2023. The indicated annualized cash dividend rate of $0.80 represents a ten-year compound annual growth rate of 7 percent. 2023 represents the 114^th consecutive year that Simmons has paid cash dividends and the 12^th consecutive year that Simmons has increased its dividend. According to research by Dividend Power, Simmons is one of only 24 U.S. publicly traded companies that have paid dividends for 100+ uninterrupted years. Simmons also earned Dividend Power’s designation as a “Dividend Contender,” a title reserved exclusively for companies that have increased their dividend for 10 to 24 consecutive years. As of April 21, 2023, Dividend Power research noted that Simmons is one of only 371 companies out of nearly 6,000 companies listed on the New York Stock Exchange and NASDAQ in 2022 to achieve this distinction.

 

During the first quarter of 2023, Simmons did not repurchase shares under its 2022 stock repurchase program (2022 Program). Remaining authorization under the 2022 Program as of March 31, 2023, was approximately $80 million. Market conditions and our capital needs will drive the decision regarding future stock repurchases; the timing, pricing and amount of any repurchases under the 2022 Program will be determined by Simmons’ management at its discretion; and the 2022 Program does not obligate Simmons to repurchase any common stock and may be modified, discontinued or suspended at any time without prior notice.

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

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

(3) Effective tax rate of 26.135%

 

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. Central Time today, Tuesday, April 25, 2023. Interested persons can listen to this call by dialing toll-free 1-888-222-5806 (North America only) and asking for the Simmons First National Corporation conference call, conference ID 10176799. 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 231 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 Twitter or by visiting our newsroom.

 

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from net income (including on a per share diluted basis), pre-tax, pre-provision earnings, net charge-offs, income available to common shareholders, non-interest income, and non-interest expense certain income and expense items attributable to merger activity (primarily including merger-related expenses and Day 2 CECL provisions), gains and/or losses on sale of branches, net branch right-sizing initiatives, loss on redemption of trust preferred securities and gain on sale of intellectual property. In addition, the Company also presents certain figures based on tangible common stockholders’ equity, tangible assets and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of the impact of PPP loans, deposits and/or loans acquired through acquisitions, mortgage warehouse loans, and/or energy loans, or gains and/or losses on the sale of securities. The Company’s management believes that these non-GAAP financial measures are useful to investors because they, among other things, present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalize for tax effects, the effects of the PPP, and certain other effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s ongoing businesses, and management uses these non-GAAP financial measures to assess the performance of the Company’s ongoing businesses as related to prior financial periods. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

 

Forward-Looking Statements

Certain statements in this 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 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, 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; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflict between Russia and Ukraine) or other major events, or the prospect of these events; 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, 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.

 

FOR MORE INFORMATION CONTACT:

Ed Bilek, EVP, Director of Investor and Media Relations

ed.bilek@simmonsbank.com

205.612.3378 (cell)

 

 

Simmons First National Corporation																			SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
($ in thousands)
ASSETS
Cash and noninterest bearing balances due from banks		$	199,316			$	200,616			$	175,547			$	193,473			$	195,510
Interest bearing balances due from banks and federal funds sold			325,135				481,506				503,863				771,374				1,491,507
Cash and cash equivalents			524,451				682,122				679,410				964,847				1,687,017
Interest bearing balances due from banks - time			795				795				1,290				1,535				1,857
Investment securities - held-to-maturity			3,765,483				3,759,706				3,787,076				3,819,682				1,556,825
Investment securities - available-for-sale			3,755,956				3,852,854				3,937,543				4,341,647				6,640,069
Mortgage loans held for sale			4,244				3,486				12,759				14,437				18,206
Other loans held for sale			-				-				2,292				16,375				-
Loans:
Loans			16,555,098				16,142,124				15,607,135				15,110,344				12,028,593
Allowance for credit losses on loans			(206,557	)			(196,955	)			(197,589	)			(212,611	)			(178,924	)
Net loans			16,348,541				15,945,169				15,409,546				14,897,733				11,849,669
Premises and equipment			564,497				548,741				549,932				553,062				486,531
Foreclosed assets and other real estate owned			2,721				2,887				3,612				4,084				5,118
Interest receivable			98,775				102,892				86,637				82,332				69,357
Bank owned life insurance			493,191				491,340				488,364				486,355				448,011
Goodwill			1,320,799				1,319,598				1,309,000				1,310,528				1,147,007
Other intangible assets			124,854				128,951				133,059				137,285				102,748
Other assets			579,139				622,520				675,554				588,707				469,853
Total assets		$	27,583,446			$	27,461,061			$	27,076,074			$	27,218,609			$	24,482,268
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing transaction accounts		$	5,489,434			$	6,016,651			$	6,218,283			$	6,057,186			$	5,223,862
Interest bearing transaction accounts and savings deposits			11,283,584				11,762,885				12,103,994				12,816,198				12,105,948
Time deposits			5,678,757				4,768,558				3,826,415				3,162,479				2,062,612
Total deposits			22,451,775				22,548,094				22,148,692				22,035,863				19,392,422
Federal funds purchased and securities sold
under agreements to repurchase			142,862				160,403				168,513				155,101				196,828
Other borrowings			1,023,826				859,296				964,772				1,060,244				1,337,243
Subordinated notes and debentures			366,027				365,989				365,951				421,693				384,242
Accrued interest and other liabilities			259,055				257,917				270,995				285,813				209,926
Total liabilities			24,243,545				24,191,699				23,918,923				23,958,714				21,520,661
Stockholders' equity:
Preferred stock			-				-				-				-				-
Common stock			1,273				1,270				1,269				1,288				1,125
Surplus			2,533,589				2,530,066				2,527,153				2,569,060				2,150,453
Undivided profits			1,275,720				1,255,586				1,196,459				1,139,975				1,136,990
Accumulated other comprehensive (loss) income			(470,681	)			(517,560	)			(567,730	)			(450,428	)			(326,961	)
Total stockholders' equity			3,339,901				3,269,362				3,157,151				3,259,895				2,961,607
Total liabilities and stockholders' equity		$	27,583,446			$	27,461,061			$	27,076,074			$	27,218,609			$	24,482,268

 

Simmons First National Corporation																			SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
($ in thousands, except per share data)
INTEREST INCOME
Loans (including fees)		$	227,498			$	216,091			$	187,347			$	163,578			$	127,176
Interest bearing balances due from banks and federal funds sold			2,783				2,593				1,141				1,117				649
Investment securities			48,774				45,689				40,954				37,848				33,712
Mortgage loans held for sale			82				152				178				200				190
Other loans held for sale			-				59				998				2,063				-
TOTAL INTEREST INCOME			279,137				264,584				230,618				204,806				161,727
INTEREST EXPENSE
Time deposits			39,538				22,434				8,204				2,875				2,503
Other deposits			47,990				34,615				17,225				6,879				4,314
Federal funds purchased and securities
sold under agreements to repurchase			323				449				305				119				68
Other borrowings			8,848				9,263				6,048				4,844				4,779
Subordinated notes and debentures			4,603				4,797				5,251				4,990				4,457
TOTAL INTEREST EXPENSE			101,302				71,558				37,033				19,707				16,121
NET INTEREST INCOME			177,835				193,026				193,585				185,099				145,606
PROVISION FOR CREDIT LOSSES
Provision for credit losses on loans			10,916				26				(15,897	)			30,406				(19,914	)
Provision for credit losses on unfunded commitments			-				-				16,000				3,453				-
Provision for credit losses on investment securities - AFS			12,800				-				-				-				-
Provision for credit losses on investment securities - HTM			500				-				-				-				-
TOTAL PROVISION FOR CREDIT LOSSES			24,216				26				103				33,859				(19,914	)
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES			153,619				193,000				193,482				151,240				165,520
NONINTEREST INCOME
Service charges on deposit accounts			12,437				11,892				12,560				11,379				10,696
Debit and credit card fees			7,952				7,845				7,685				8,224				7,449
Wealth management fees			7,365				8,151				8,562				7,214				7,968
Mortgage lending income			1,570				1,139				2,593				2,240				4,550
Bank owned life insurance income			2,973				2,975				2,902				2,563				2,706
Other service charges and fees (includes insurance income)			2,282				2,023				2,085				1,871				1,637
Gain (loss) on sale of securities			-				(52	)			(22	)			(150	)			(54	)
Gain on insurance settlement			-				4,074				-				-				-
Other income			11,256				6,600				6,658				6,837				7,266
TOTAL NONINTEREST INCOME			45,835				44,647				43,023				40,178				42,218
NONINTEREST EXPENSE
Salaries and employee benefits			77,038				73,018				71,923				74,135				67,906
Occupancy expense, net			11,578				11,620				11,674				11,004				10,023
Furniture and equipment expense			5,051				5,392				5,394				5,104				4,775
Other real estate and foreclosure expense			186				350				168				142				343
Deposit insurance			4,893				3,680				3,278				2,812				1,838
Merger-related costs			1,396				35				1,422				19,133				1,886
Other operating expenses			43,086				48,480				45,084				44,483				41,646
TOTAL NONINTEREST EXPENSE			143,228				142,575				138,943				156,813				128,417
NET INCOME BEFORE INCOME TAXES			56,226				95,072				97,562				34,605				79,321
Provision for income taxes			10,637				11,812				16,959				7,151				14,226
NET INCOME			45,589				83,260				80,603				27,454				65,095
Preferred stock dividends			-				-				-				-				-
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS		$	45,589			$	83,260			$	80,603			$	27,454			$	65,095
BASIC EARNINGS PER SHARE		$	0.36			$	0.66			$	0.63			$	0.21			$	0.58
DILUTED EARNINGS PER SHARE		$	0.36			$	0.65			$	0.63			$	0.21			$	0.58

 

Simmons First National Corporation																			SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
($ in thousands)
Tier 1 capital
Stockholders' equity		$	3,339,901			$	3,269,362			$	3,157,151			$	3,259,895			$	2,961,607
CECL transition provision (1)			61,746				92,619				92,619				92,619				92,619
Disallowed intangible assets, net of deferred tax			(1,410,141	)			(1,412,667	)			(1,416,453	)			(1,423,323	)			(1,224,691	)
Unrealized loss (gain) on AFS securities			470,681				517,560				567,730				450,428				326,961
Total Tier 1 capital			2,462,187				2,466,874				2,401,047				2,379,619				2,156,496
Tier 2 capital
Subordinated notes and debentures			366,027				365,989				365,951				421,693				384,242
Qualifying allowance for loan losses and
reserve for unfunded commitments			173,077				115,627				116,257				114,733				78,057
Total Tier 2 capital			539,104				481,616				482,208				536,426				462,299
Total risk-based capital		$	3,001,291			$	2,948,490			$	2,883,255			$	2,916,045			$	2,618,795
Risk weighted assets		$	20,748,605			$	20,738,727			$	20,470,918			$	19,669,149			$	15,953,622
Adjusted average assets for leverage ratio		$	26,632,691			$	26,407,061			$	25,986,938			$	25,807,113			$	23,966,206
Ratios at end of quarter
Equity to assets			12.11	%			11.91	%			11.66	%			11.98	%			12.10	%
Tangible common equity to tangible assets (2)			7.25	%			7.00	%			6.69	%			7.03	%			7.37	%
Common equity Tier 1 ratio (CET1)			11.87	%			11.90	%			11.73	%			12.10	%			13.52	%
Tier 1 leverage ratio			9.24	%			9.34	%			9.24	%			9.22	%			9.00	%
Tier 1 risk-based capital ratio			11.87	%			11.90	%			11.73	%			12.10	%			13.52	%
Total risk-based capital ratio			14.47	%			14.22	%			14.08	%			14.83	%			16.42	%

 

(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		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
($ in thousands)
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies		$	451,052			$	448,012			$	447,400			$	446,789			$	232,670
Mortgage-backed securities			1,201,418				1,190,781				1,214,882				1,244,713				112,496
State and political subdivisions			1,859,970				1,860,992				1,865,203				1,868,924				1,194,459
Other securities			253,043				259,921				259,591				259,256				17,200
Total held-to-maturity (net of credit losses)			3,765,483				3,759,706				3,787,076				3,819,682				1,556,825
Available-for-Sale
U.S. Treasury		$	2,220			$	2,197			$	2,191			$	1,441			$	-
U.S. Government agencies			181,843				184,279				188,060				198,333				333,231
Mortgage-backed securities			2,433,530				2,542,902				2,670,348				2,963,934				4,166,108
State and political subdivisions			895,896				871,074				822,509				915,255				1,653,694
Other securities			242,467				252,402				254,435				262,684				487,036
Total available-for-sale (net of credit losses)			3,755,956				3,852,854				3,937,543				4,341,647				6,640,069
Total investment securities (net of credit losses)		$	7,521,439			$	7,612,560			$	7,724,619			$	8,161,329			$	8,196,894
Fair value - HTM investment securities		$	3,148,976			$	3,063,233			$	2,984,040			$	3,278,962			$	1,307,058

 

 

 

Simmons First National Corporation																			SFNC
Consolidated Loans
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
($ in thousands)
Loan Portfolio - End of Period
Consumer:
Credit cards		$	188,590			$	196,928			$	192,559			$	189,684			$	184,372
Other consumer			142,817				152,882				180,604				204,692				180,602
Total consumer			331,407				349,810				373,163				394,376				364,974
Real Estate:
Construction			2,777,122				2,566,649				2,372,294				2,082,688				1,423,445
Single-family residential			2,589,831				2,546,115				2,467,008				2,357,942				2,042,978
Other commercial real estate			7,520,964				7,468,498				7,249,891				7,082,055				5,762,567
Total real estate			12,887,917				12,581,262				12,089,193				11,522,685				9,228,990
Commercial:
Commercial			2,669,731				2,632,290				2,525,218				2,612,256				2,016,405
Agricultural			220,641				205,623				263,539				218,743				150,465
Total commercial			2,890,372				2,837,913				2,788,757				2,830,999				2,166,870
Other			445,402				373,139				356,022				362,284				267,759
Total loans		$	16,555,098			$	16,142,124			$	15,607,135			$	15,110,344			$	12,028,593

 

 

 

Simmons First National Corporation																			SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
($ in thousands)
Allowance for Credit Losses on Loans
Beginning balance		$	196,955			$	197,589			$	212,611			$	178,924			$	205,332
Day 1 PCD allowance from acquisitions:
Spirit of Texas (04/08/2022)			-				4,523				1,057				4,043				-
Total Day 1 PCD allowance			-				4,523				1,057				4,043				-
Loans charged off:
Credit cards			1,076				1,035				903				1,004				920
Other consumer			456				439				505				518				414
Real estate			1,204				3,392				130				115				485
Commercial			413				5,389				1,874				688				6,319
Total loans charged off			3,149				10,255				3,412				2,325				8,138
Recoveries of loans previously charged off:
Credit cards			234				251				250				249				274
Other consumer			240				230				278				302				387
Real estate			294				4,117				1,982				391				426
Commercial			1,067				475				720				621				557
Total recoveries			1,835				5,073				3,230				1,563				1,644
Net loans charged off			1,314				5,182				182				762				6,494
Provision for credit losses on loans			10,916				25				(15,897	)			30,406				(19,914	)
Balance, end of quarter		$	206,557			$	196,955			$	197,589			$	212,611			$	178,924
Nonperforming assets
Nonperforming loans:
Nonaccrual loans		$	63,218			$	58,434			$	57,534			$	62,670			$	64,096
Loans past due 90 days or more			437				507				242				904				240
Total nonperforming loans			63,655				58,941				57,776				63,574				64,336
Other nonperforming assets:
Foreclosed assets and other real estate owned			2,721				2,887				3,612				4,084				5,118
Other nonperforming assets			5,012				644				1,146				2,314				1,479
Total other nonperforming assets			7,733				3,531				4,758				6,398				6,597
Total nonperforming assets		$	71,388			$	62,472			$	62,534			$	69,972			$	70,933
Performing FDMs (modifications to borrowers
experiencing financial difficulty)		$	2,183			$	1,849			$	1,869			$	2,655			$	3,424
Ratios
Allowance for credit losses on loans to total loans			1.25	%			1.22	%			1.27	%			1.41	%			1.49	%
Allowance for credit losses to nonperforming loans			324	%			334	%			342	%			334	%			278	%
Nonperforming loans to total loans			0.38	%			0.37	%			0.37	%			0.42	%			0.53	%
Nonperforming assets (including performing FDMs)
to total assets			0.27	%			0.23	%			0.24	%			0.27	%			0.30	%
Nonperforming assets to total assets			0.26	%			0.23	%			0.23	%			0.26	%			0.29	%
Annualized net charge offs to average loans (QTD)			0.03	%			0.13	%			0.00	%			0.02	%			0.22	%
Annualized net charge offs to average loans (YTD)			0.03	%			0.09	%			0.07	%			0.11	%			0.22	%
Annualized net credit card charge offs to
average credit card loans			1.69	%			1.52	%			1.30	%			1.55	%			1.39	%

 

 

Simmons First National Corporation																																			SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
		Three Months Ended Mar 2023												Three Months Ended Dec 2022												Three Months Ended Mar 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		$	315,307			$	2,783				3.58	%		$	361,856			$	2,593				2.84	%		$	1,728,694			$	649				0.15	%
Investment securities - taxable			4,930,945				32,804				2.70	%			5,085,960				29,645				2.31	%			5,688,306				18,148				1.29	%
Investment securities - non-taxable (FTE)			2,624,642				21,522				3.33	%			2,582,050				22,123				3.40	%			2,844,777				20,937				2.98	%
Mortgage loans held for sale			5,470				82				6.08	%			8,601				152				7.01	%			27,633				190				2.79	%
Other loans held for sale			-				-				0.00	%			1,704				59				13.74	%			-				-				0.00	%
Loans - including fees (FTE)			16,329,761				228,257				5.67	%			15,929,957				216,782				5.40	%			11,895,805				127,405				4.34	%
Total interest earning assets (FTE)			24,206,125				285,448				4.78	%			23,970,128				271,354				4.49	%			22,185,215				167,329				3.06	%
Non-earning assets			3,282,607												3,210,447												2,640,984
Total assets		$	27,488,732											$	27,180,575											$	24,826,199
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts		$	11,722,591			$	47,990				1.66	%		$	11,859,322			$	34,615				1.16	%		$	12,083,516			$	4,314				0.14	%
Time deposits			5,155,055				39,538				3.11	%			4,212,271				22,434				2.11	%			2,241,123				2,503				0.45	%
Total interest bearing deposits			16,877,646				87,528				2.10	%			16,071,593				57,049				1.41	%			14,324,639				6,817				0.19	%
Federal funds purchased and securities
sold under agreement to repurchase			148,673				323				0.88	%			178,948				449				1.00	%			218,186				68				0.13	%
Other borrowings			787,783				8,848				4.56	%			923,189				9,263				3.98	%			1,337,654				4,779				1.45	%
Subordinated notes and debentures			366,009				4,603				5.10	%			365,971				4,797				5.20	%			384,187				4,457				4.70	%
Total interest bearing liabilities			18,180,111				101,302				2.26	%			17,539,701				71,558				1.62	%			16,264,666				16,121				0.40	%
Noninterest bearing liabilities:
Noninterest bearing deposits			5,642,779												6,161,732												5,184,828
Other liabilities			295,191												264,230												207,597
Total liabilities			24,118,081												23,965,663												21,657,091
Stockholders' equity			3,370,651												3,214,912												3,169,108
Total liabilities and stockholders' equity		$	27,488,732											$	27,180,575											$	24,826,199
Net interest income (FTE)						$	184,146											$	199,796											$	151,208
Net interest spread (FTE)											2.52	%											2.87	%											2.66	%
Net interest margin (FTE)											3.09	%											3.31	%											2.76	%

 

 

Simmons First National Corporation																			SFNC
Consolidated - Selected Financial Data
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - As Reported
Net Income		$	45,589			$	83,260			$	80,603			$	27,454			$	65,095
Diluted earnings per share			0.36				0.65				0.63				0.21				0.58
Return on average assets			0.67	%			1.22	%			1.19	%			0.41	%			1.06	%
Return on average common equity			5.49	%			10.27	%			9.71	%			3.28	%			8.33	%
Return on tangible common equity (non-GAAP) (1)			10.25	%			19.29	%			17.99	%			6.28	%			14.31	%
Net interest margin (FTE)			3.09	%			3.31	%			3.34	%			3.24	%			2.76	%
Efficiency ratio (2)			62.28	%			58.33	%			57.22	%			67.77	%			66.39	%
FTE adjustment			6,311				6,770				6,203				6,096				5,602
Average diluted shares outstanding			127,516,478				127,505,996				128,336,422				128,720,078				113,026,911
Shares repurchased under plan			-				-				1,883,713				2,035,324				513,725
Average price of shares repurchased			-				-				23.91				24.59				31.25
Cash dividends declared per common share			0.200				0.190				0.190				0.190				0.190
Accretable yield on acquired loans			2,579				4,473				5,834				9,898				3,703
Financial Highlights - Adjusted (non-GAAP) (1)
Adjusted earnings		$	47,343			$	81,093			$	82,281			$	68,102			$	67,159
Adjusted diluted earnings per share			0.37				0.64				0.64				0.53				0.59
Adjusted return on average assets			0.70	%			1.18	%			1.21	%			1.02	%			1.10	%
Adjusted return on average common equity			5.70	%			10.01	%			9.92	%			8.13	%			8.59	%
Adjusted return on tangible common equity			10.62	%			18.81	%			18.35	%			14.65	%			14.74	%
Adjusted efficiency ratio (2)			59.38	%			56.97	%			54.41	%			56.74	%			62.95	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income		$	45,589			$	256,412			$	173,152			$	92,549			$	65,095
Diluted earnings per share			0.36				2.06				1.40				0.77				0.58
Return on average assets			0.67	%			0.97	%			0.88	%			0.72	%			1.06	%
Return on average common equity			5.49	%			7.87	%			7.07	%			5.71	%			8.33	%
Return on tangible common equity (non-GAAP) (1)			10.25	%			14.33	%			12.77	%			10.24	%			14.31	%
Net interest margin (FTE)			3.09	%			3.17	%			3.12	%			3.01	%			2.76	%
Efficiency ratio (2)			62.28	%			62.14	%			63.54	%			67.14	%			66.39	%
FTE adjustment			6,311				24,671				17,901				11,698				5,602
Average diluted shares outstanding			127,516,478				124,470,184				123,387,503				120,826,798				113,026,911
Cash dividends declared per common share			0.200				0.760				0.570				0.380				0.190
Financial Highlights - Adjusted (non-GAAP) (1)
Adjusted earnings		$	47,343			$	298,635			$	217,542			$	135,261			$	67,159
Adjusted diluted earnings per share			0.37				2.40				1.76				1.12				0.59
Adjusted return on average assets			0.70	%			1.13	%			1.11	%			1.06	%			1.10	%
Adjusted return on average common equity			5.70	%			9.16	%			8.88	%			8.35	%			8.59	%
Adjusted return on tangible common equity			10.62	%			16.59	%			15.89	%			14.70	%			14.74	%
Adjusted efficiency ratio (2)			59.38	%			57.50	%			57.69	%			59.56	%			62.95	%
END OF PERIOD
Book value per share		$	26.24			$	25.73			$	24.87			$	25.31			$	26.32
Tangible book value per share			14.88				14.33				13.51				14.07				15.22
Shares outstanding			127,282,192				127,046,654				126,943,467				128,787,764				112,505,555
Full-time equivalent employees			3,189				3,236				3,206				3,233				2,893
Total number of financial centers			231				230				230				233				197

 

 (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		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
(in thousands, except per share data)
QUARTER-TO-DATE
Net income available to common stockholders		$	45,589			$	83,260			$	80,603			$	27,454			$	65,095
Certain items:
(Gain) loss from early retirement of TruPS			-				-				365				-				-
Gain on sale of intellectual property			-				-				(750	)			-				-
Gain on insurance settlement			-				(4,074	)			-				-				-
Donation to Simmons First Foundation			-				-				-				1,738				-
Merger related costs			1,396				35				1,422				19,133				1,886
Branch right sizing (net)			979				1,104				1,235				380				909
Day 2 CECL provision			-				-				-				33,779				-
Tax effect (1)			(621	)			768				(594	)			(14,382	)			(731	)
Certain items, net of tax			1,754				(2,167	)			1,678				40,648				2,064
Adjusted earnings (non-GAAP)		$	47,343			$	81,093			$	82,281			$	68,102			$	67,159
Diluted earnings per share		$	0.36			$	0.65			$	0.63			$	0.21			$	0.58
Certain items:
(Gain) loss from early retirement of TruPS			-				-				-				-				-
Gain on sale of intellectual property			-				-				(0.01	)			-				-
Gain on insurance settlement			-				(0.03	)
Donation to Simmons First Foundation			-				-				-				0.01				-
Merger related costs			0.01				-				0.01				0.15				0.01
Branch right sizing (net)			0.01				0.01				0.01				-				0.01
Day 2 CECL provision			-				-				-				0.27
Tax effect (1)			(0.01	)			0.01				-				(0.11	)			(0.01	)
Certain items, net of tax			0.01				(0.01	)			0.01				0.32				0.01
Adjusted diluted earnings per share (non-GAAP)		$	0.37			$	0.64			$	0.64			$	0.53			$	0.59

 

 (1) Effective tax rate of 26.135%.

 

Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)
QUARTER-TO-DATE
Noninterest income		$	45,835			$	44,647			$	43,023			$	40,178			$	42,218
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				88				-
Adjusted noninterest income (non-GAAP)		$	45,835			$	40,573			$	42,703			$	40,266			$	42,218
Other income		$	11,256			$	6,600			$	6,658			$	6,837			$	7,266
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				88				-
Adjusted other income (non-GAAP)		$	11,256			$	6,600			$	6,338			$	6,925			$	7,266
Noninterest expense		$	143,228			$	142,575			$	138,943			$	156,813			$	128,417
Certain noninterest expense items (1)
Merger related costs			(1,396	)			(35	)			(1,422	)			(19,133	)			(1,886	)
Donation to Simmons First Foundation			-				-				-				(1,738	)			-
Branch right sizing expense			(979	)			(1,104	)			(1,170	)			(292	)			(909	)
Adjusted noninterest expense (non-GAAP)		$	140,853			$	141,436			$	136,351			$	135,650			$	125,622
Other operating expenses		$	43,086			$	48,480			$	45,084			$	44,483			$	41,646
Certain other operating expenses items (1)
Donation to Simmons First Foundation			-				-				-				(1,738	)			-
Branch right sizing expense			(816	)			(953	)			(973	)			(7	)			(717	)
Adjusted other operating expenses (non-GAAP)		$	42,270			$	47,527			$	44,111			$	42,738			$	40,929

 

 (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, branch right sizing costs and Day 2 CECL provision. 

 

 

Simmons First National Corporation
Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Year-to-Date
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
(in thousands, except per share data)
YEAR-TO-DATE
Net income available to common stockholders		$	45,589			$	256,412			$	173,152			$	92,549			$	65,095
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				1,738				-
Merger related costs			1,396				22,476				22,441				21,019				1,886
Branch right sizing (net)			979				3,628				2,524				1,289				909
Day 2 CECL provision			-				33,779				33,779				33,779				-
Tax effect (1)			(621	)			(14,939	)			(15,707	)			(15,113	)			(731	)
Certain items, net of tax			1,754				42,223				44,390				42,712				2,064
Adjusted earnings (non-GAAP)		$	47,343			$	298,635			$	217,542			$	135,261			$	67,159
Diluted earnings per share		$	0.36			$	2.06			$	1.40			$	0.77			$	0.58
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				0.01				-
Merger related costs			0.01				0.18				0.18				0.17				0.01
Branch right sizing (net)			0.01				0.03				0.02				0.01				0.01
Day 2 CECL provision			-				0.28				0.28				0.28
Tax effect (1)			(0.01	)			(0.12	)			(0.12	)			(0.12	)			(0.01	)
Certain items, net of tax			0.01				0.34				0.36				0.35				0.01
Adjusted diluted earnings per share (non-GAAP)		$	0.37			$	2.40			$	1.76			$	1.12			$	0.59

 

 (1) Effective tax rate of 26.135%.

 

Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)
YEAR-TO-DATE
Noninterest income		$	45,835			$	170,066			$	125,419			$	82,396			$	42,218
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				88				-
Adjusted noninterest income (non-GAAP)		$	45,835			$	165,760			$	125,187			$	82,484			$	42,218
Other income		$	11,256			$	27,361			$	20,761			$	14,103			$	7,266
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				88				-
Adjusted other income (non-GAAP)		$	11,256			$	27,129			$	20,529			$	14,191			$	7,266
Noninterest expense		$	143,228			$	566,748			$	424,173			$	285,230			$	128,417
Certain noninterest expense items (1)
Merger related costs			(1,396	)			(22,476	)			(22,441	)			(21,019	)			(1,886	)
Donation to Simmons First Foundation			-				(1,738	)			(1,738	)			(1,738	)			-
Branch right sizing expense			(979	)			(3,475	)			(2,371	)			(1,201	)			(909	)
Adjusted noninterest expense (non-GAAP)		$	140,853			$	539,059			$	397,623			$	261,272			$	125,622
Other operating expenses		$	43,086			$	179,693			$	131,213			$	86,129			$	41,646
Certain other operating expenses items (1)
Donation to Simmons First Foundation			-				(1,738	)			(1,738	)			(1,738	)			-
Branch right sizing expense			(816	)			(2,650	)			(1,697	)			(724	)			(717	)
Adjusted other operating expenses (non-GAAP)		$	42,270			$	175,305			$	127,778			$	83,667			$	40,929

 

 (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, 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		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				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		$	3,339,901			$	3,269,362			$	3,157,151			$	3,259,895			$	2,961,607
Intangible assets:
Goodwill			(1,320,799	)			(1,319,598	)			(1,309,000	)			(1,310,528	)			(1,147,007	)
Other intangible assets			(124,854	)			(128,951	)			(133,059	)			(137,285	)			(102,748	)
Total intangibles			(1,445,653	)			(1,448,549	)			(1,442,059	)			(1,447,813	)			(1,249,755	)
Tangible common stockholders' equity		$	1,894,248			$	1,820,813			$	1,715,092			$	1,812,082			$	1,711,852
Total assets		$	27,583,446			$	27,461,061			$	27,076,074			$	27,218,609			$	24,482,268
Intangible assets:
Goodwill			(1,320,799	)			(1,319,598	)			(1,309,000	)			(1,310,528	)			(1,147,007	)
Other intangible assets			(124,854	)			(128,951	)			(133,059	)			(137,285	)			(102,748	)
Total intangibles			(1,445,653	)			(1,448,549	)			(1,442,059	)			(1,447,813	)			(1,249,755	)
Tangible assets		$	26,137,793			$	26,012,512			$	25,634,015			$	25,770,796			$	23,232,513
Ratio of common equity to assets			12.11	%			11.91	%			11.66	%			11.98	%			12.10	%
Ratio of tangible common equity to tangible assets			7.25	%			7.00	%			6.69	%			7.03	%			7.37	%
Calculation of Tangible Book Value per Share
Total common stockholders' equity		$	3,339,901			$	3,269,362			$	3,157,151			$	3,259,895			$	2,961,607
Intangible assets:
Goodwill			(1,320,799	)			(1,319,598	)			(1,309,000	)			(1,310,528	)			(1,147,007	)
Other intangible assets			(124,854	)			(128,951	)			(133,059	)			(137,285	)			(102,748	)
Total intangibles			(1,445,653	)			(1,448,549	)			(1,442,059	)			(1,447,813	)			(1,249,755	)
Tangible common stockholders' equity		$	1,894,248			$	1,820,813			$	1,715,092			$	1,812,082			$	1,711,852
Shares of common stock outstanding			127,282,192				127,046,654				126,943,467				128,787,764				112,505,555
Book value per common share		$	26.24			$	25.73			$	24.87			$	25.31			$	26.32
Tangible book value per common share		$	14.88			$	14.33			$	13.51			$	14.07			$	15.22
Calculation of Uninsured Deposit Coverage Ratio
Uninsured deposits at Simmons Bank		$	5,896,752			$	7,267,220											$	6,414,459
Less: Intercompany eliminations			628,592				527,542												504,306
Total uninsured deposits		$	5,268,160			$	6,739,678											$	5,910,153
FHLB borrowing availability		$	5,574,000			$	5,442,000											$	3,597,000
Unpledged securities			3,000,000				3,180,000												4,335,000
Fed funds lines, Fed discount window and
Bank Term Funding Program			2,206,000				1,982,000												426,000
Additional liquidity sources		$	10,780,000			$	10,604,000											$	8,358,000
Uninsured deposit coverage ratio			2.0				1.6												1.4

 

 

Simmons First National Corporation																			SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
($ in thousands)
Calculation of Adjusted Return on Average Assets
Net income available to common stockholders		$	45,589			$	83,260			$	80,603			$	27,454			$	65,095
Certain items (non-GAAP)
(Gain) loss from early retirement of TruPS			-				-				365				-				-
Gain on sale of intellectual property			-				-				(750	)			-				-
Gain on insurance settlement			-				(4,074	)			-				-				-
Donation to Simmons First Foundation			-				-				-				1,738				-
Merger related costs			1,396				35				1,422				19,133				1,886
Branch right sizing (net)			979				1,104				1,235				380				909
Day 2 CECL provision			-				-				-				33,779				-
Tax effect of certain items (2)			(621	)			768				(594	)			(14,382	)			(731	)
Adjusted earnings (non-GAAP)		$	47,343			$	81,093			$	82,281			$	68,102			$	67,159
Average total assets		$	27,488,732			$	27,180,575			$	26,868,731			$	26,769,032			$	24,826,199
Return on average assets			0.67	%			1.22	%			1.19	%			0.41	%			1.06	%
Adjusted return on average assets (non-GAAP)			0.70	%			1.18	%			1.21	%			1.02	%			1.10	%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders		$	45,589			$	83,260			$	80,603			$	27,454			$	65,095
Amortization of intangibles, net of taxes			3,026				3,035				3,121				3,025				2,575
Total income available to common stockholders		$	48,615			$	86,295			$	83,724			$	30,479			$	67,670
Certain items (non-GAAP)
(Gain) loss from early retirement of TruPS			-				-				365				-				-
Gain on sale of intellectual property			-				-				(750	)			-				-
Gain on insurance settlement			-				(4,074	)			-				-				-
Donation to Simmons First Foundation			-				-				-				1,738				-
Merger related costs			1,396				35				1,422				19,133				1,886
Branch right sizing (net)			979				1,104				1,235				380				909
Day 2 CECL provision			-				-				-				33,779				-
Tax effect of certain items (2)			(621	)			768				(594	)			(14,382	)			(731	)
Adjusted earnings (non-GAAP)			47,343				81,093				82,281				68,102				67,159
Amortization of intangibles, net of taxes			3,026				3,035				3,121				3,025				2,575
Total adjusted earnings available to common stockholders (non-GAAP)		$	50,369			$	84,128			$	85,402			$	71,127			$	69,734
Average common stockholders' equity		$	3,370,651			$	3,214,912			$	3,292,071			$	3,361,703			$	3,169,108
Average intangible assets:
Goodwill			(1,319,624	)			(1,309,124	)			(1,309,804	)			(1,299,821	)			(1,146,034	)
Other intangibles			(127,394	)			(131,229	)			(135,718	)			(114,195	)			(104,905	)
Total average intangibles			(1,447,018	)			(1,440,353	)			(1,445,522	)			(1,414,016	)			(1,250,939	)
Average tangible common stockholders' equity (non-GAAP)		$	1,923,633			$	1,774,559			$	1,846,549			$	1,947,687			$	1,918,169
Return on average common equity			5.49	%			10.27	%			9.71	%			3.28	%			8.33	%
Return on tangible common equity			10.25	%			19.29	%			17.99	%			6.28	%			14.31	%
Adjusted return on average common equity (non-GAAP)			5.70	%			10.01	%			9.92	%			8.13	%			8.59	%
Adjusted return on tangible common equity (non-GAAP)			10.62	%			18.81	%			18.35	%			14.65	%			14.74	%
Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)
Noninterest expense (efficiency ratio numerator)		$	143,228			$	142,575			$	138,943			$	156,813			$	128,417
Certain noninterest expense items (non-GAAP)
Merger related costs			(1,396	)			(35	)			(1,422	)			(19,133	)			(1,886	)
Donation to Simmons First Foundation			-				-				-				(1,738	)			-
Branch right sizing expense			(979	)			(1,104	)			(1,170	)			(292	)			(909	)
Other real estate and foreclosure expense adjustment			(186	)			(350	)			(168	)			(142	)			(343	)
Amortization of intangibles adjustment			(4,096	)			(4,108	)			(4,225	)			(4,096	)			(3,486	)
Adjusted efficiency ratio numerator		$	136,571			$	136,978			$	131,958			$	131,412			$	121,793
Net interest income		$	177,835			$	193,026			$	193,585			$	185,099			$	145,606
Noninterest income			45,835				44,647				43,023				40,178				42,218
Fully tax-equivalent adjustment (effective tax rate of 26.135%)			6,311				6,770				6,203				6,096				5,602
Efficiency ratio denominator			229,981				244,443				242,811				231,373				193,426
Certain noninterest income items (non-GAAP)
Gain on insurance settlement			-				(4,074	)			-				-				-
(Gain) loss from early retirement of TruPS			-				-				365				-				-
Gain on sale of intellectual property			-				-				(750	)			-				-
Branch right sizing income			-				-				65				88				-
(Gain) loss on sale of securities			-				52				22				150				54
Adjusted efficiency ratio denominator		$	229,981			$	240,421			$	242,513			$	231,611			$	193,480
Efficiency ratio (1)			62.28	%			58.33	%			57.22	%			67.77	%			66.39	%
Adjusted efficiency ratio (non-GAAP) (1)			59.38	%			56.97	%			54.41	%			56.74	%			62.95	%

 

 (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		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
($ in thousands)
Calculation of Pre-Provision Net Revenue (PPNR)
Net interest income		$	177,835			$	193,026			$	193,585			$	185,099			$	145,606
Noninterest income			45,835				44,647				43,023				40,178				42,218
Revenue			223,670				237,673				236,608				225,277				187,824
Less: Gain (loss) on sale of securities			-				(52	)			(22	)			(150	)			(54	)
Less: Noninterest expense			143,228				142,575				138,943				156,813				128,417
Pre-Provision Net Revenue (PPNR)		$	80,442			$	95,150			$	97,687			$	68,614			$	59,461
Calculation of Adjusted Pre-Provision Net Revenue
Pre-Provision Net Revenue (PPNR)		$	80,442			$	95,150			$	97,687			$	68,614			$	59,461
Plus: Loss from early retirement of TruPS			-				-				365				-				-
Less: Gain on sale of intellectual property			-				-				(750	)			-				-
Less: Gain on insurance settlement			-				(4,074	)			-				-				-
Plus: Donation to Simmons First Foundation			-				-				-				1,738				-
Plus: Merger related costs			1,396				35				1,422				19,133				1,886
Plus: Branch right sizing costs			979				1,104				1,235				380				909
Adjusted Pre-Provision Net Revenue		$	82,817			$	92,215			$	99,959			$	89,865			$	62,256

 

 

 

Simmons First National Corporation																			SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended		Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2023				2022				2022				2022				2022
($ in thousands)
Calculation of Adjusted Return on Average Assets
Net income available to common stockholders		$	45,589			$	256,412			$	173,152			$	92,549			$	65,095
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				1,738				-
Merger related costs			1,396				22,476				22,441				21,019				1,886
Branch right sizing (net)			979				3,628				2,524				1,289				909
Day 2 CECL provision			-				33,779				33,779				33,779				-
Tax effect of certain items (2)			(621	)			(14,939	)			(15,707	)			(15,113	)			(731	)
Adjusted earnings (non-GAAP)		$	47,343			$	298,635			$	217,542			$	135,261			$	67,159
Average total assets		$	27,488,732			$	26,418,838			$	26,162,136			$	25,802,982			$	24,826,199
Return on average assets			0.67	%			0.97	%			0.88	%			0.72	%			1.06	%
Adjusted return on average assets (non-GAAP)			0.70	%			1.13	%			1.11	%			1.06	%			1.10	%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders		$	45,589			$	256,412			$	173,152			$	92,549			$	65,095
Amortization of intangibles, net of taxes			3,026				11,756				8,721				5,600				2,575
Total income available to common stockholders		$	48,615			$	268,168			$	181,873			$	98,149			$	67,670
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				1,738				-
Merger related costs			1,396				22,476				22,441				21,019				1,886
Branch right sizing (net)			979				3,628				2,524				1,289				909
Day 2 CECL provision			-				33,779				33,779				33,779				-
Tax effect of certain items (2)			(621	)			(14,939	)			(15,707	)			(15,113	)			(731	)
Adjusted earnings (non-GAAP)			47,343				298,635				217,542				135,261				67,159
Amortization of intangibles, net of taxes			3,026				11,756				8,721				5,600				2,575
Total adjusted earnings available to common stockholders (non-GAAP)		$	50,369			$	310,391			$	226,263			$	140,861			$	69,734
Average common stockholders' equity		$	3,370,651			$	3,259,664			$	3,274,743			$	3,265,935			$	3,169,108
Average intangible assets:
Goodwill			(1,319,624	)			(1,266,762	)			(1,252,486	)			(1,223,352	)			(1,146,034	)
Other intangibles			(127,394	)			(121,622	)			(118,385	)			(109,575	)			(104,905	)
Total average intangibles			(1,447,018	)			(1,388,384	)			(1,370,871	)			(1,332,927	)			(1,250,939	)
Average tangible common stockholders' equity (non-GAAP)		$	1,923,633			$	1,871,280			$	1,903,872			$	1,933,008			$	1,918,169
Return on average common equity			5.49	%			7.87	%			7.07	%			5.71	%			8.33	%
Return on tangible common equity			10.25	%			14.33	%			12.77	%			10.24	%			14.31	%
Adjusted return on average common equity (non-GAAP)			5.70	%			9.16	%			8.88	%			8.35	%			8.59	%
Adjusted return on tangible common equity (non-GAAP)			10.62	%			16.59	%			15.89	%			14.70	%			14.74	%
Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)
Noninterest expense (efficiency ratio numerator)		$	143,228			$	566,748			$	424,173			$	285,230			$	128,417
Certain noninterest expense items (non-GAAP)
Merger related costs			(1,396	)			(22,476	)			(22,441	)			(21,019	)			(1,886	)
Donation to Simmons First Foundation			-				(1,738	)			(1,738	)			(1,738	)			-
Branch right sizing expense			(979	)			(3,475	)			(2,371	)			(1,201	)			(909	)
Other real estate and foreclosure expense adjustment			(186	)			(1,003	)			(653	)			(485	)			(343	)
Amortization of intangibles adjustment			(4,096	)			(15,915	)			(11,807	)			(7,582	)			(3,486	)
Adjusted efficiency ratio numerator		$	136,571			$	522,141			$	385,163			$	253,205			$	121,793
Net interest income		$	177,835			$	717,316			$	524,290			$	330,705			$	145,606
Noninterest income			45,835				170,066				125,419				82,396				42,218
Fully tax-equivalent adjustment (effective tax rate of 26.135%)			6,311				24,671				17,901				11,698				5,602
Efficiency ratio denominator			229,981				912,053				667,610				424,799				193,426
Certain noninterest income items (non-GAAP)
Gain on insurance settlement			-				(4,074	)			-				-				-
(Gain) loss from early retirement of TruPS			-				365				365				-				-
Gain on sale of intellectual property			-				(750	)			(750	)			-				-
Gain on sale of branches			-				-				-				-				-
Branch right sizing income			-				153				153				88				-
(Gain) loss on sale of securities			-				278				226				204				54
Adjusted efficiency ratio denominator		$	229,981			$	908,025			$	667,604			$	425,091			$	193,480
Efficiency ratio (1)			62.28	%			62.14	%			63.54	%			67.14	%			66.39	%
Adjusted efficiency ratio (non-GAAP) (1)			59.38	%			57.50	%			57.69	%			59.56	%			62.95	%

 

 (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%.

 

Page 14

 

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The following information was filed by Simmons First National Corp (SFNC) on Tuesday, April 25, 2023 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.