Simmons First National Corp (SFNC) SEC Filing 10-Q Quarterly Report for the period ending Saturday, September 30, 2023

Exhibit 99.1

 

 

 

October 24, 2023

 

Simmons First National Corporation Reports Third Quarter 2023 Results

 

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

 

 

Financial Highlights	3Q23	2Q23	3Q22		Q3 23 Highlights
Balance Sheet (in millions)					Comparisons reflect Q3 23 vs Q3 22   ·  Net income of $47.2 million and diluted EPS of $0.37   ·  Adjusted earnings1 of $48.8 million and adjusted diluted EPS1 of $0.39   ·  Execution of Better Bank Initiative and focus on expense management leads to 5 percent decline in noninterest expense   ·  Total revenue of $196.2 million; PPNR1 of $64.2 million; Adjusted PPNR1 of $66.3 million   ·  Decline in average total assets reflects strategic decision to reduce higher rate wholesale funding   ·  ACL ratio ends the quarter at 1.30%; NCO ratio includes a single credit that accounted for 23 bps of total 28 bps   ·  Book value per share up 6% and tangible book value per share1 up 9%   ·  Repurchased 1.1 million shares in the quarter
Total assets	$27,564	$27,959	$27,076
Total deposits	22,231	22,489	22,149
Total loans	16,772	16,834	15,607
Total investment securities	7,101	7,337	7,725
Total shareholders’ equity	3,286	3,356	3,157
Asset Quality
Net charge-off ratio	0.28%	0.04%	-%
Nonperforming loan ratio	0.49	0.43	0.37
Nonperforming assets to total assets	0.32	0.28	0.23
Allowance for credit losses to total loans	1.30	1.25	1.27
Nonperforming loan coverage ratio	267	292	342
Capital Ratios
Equity to assets	11.92%	12.00%	11.66%
Tangible common equity (TCE) ratio1	7.07	7.22	6.69
Common equity tier 1 (CET1) ratio	12.02	11.92	11.73
Total risk-based capital ratio	14.27	14.17	14.08
Liquidity ($ in millions)
Loan to deposit ratio	75.44%	74.85%	70.47%
Borrowed funds to total liabilities	7.37	7.49	6.27
Uninsured, non-collateralized deposits (UCD)	$  4,631	$  4,802	$5,782
Additional liquidity sources	11,447	11,096	8,709
Coverage ratio of UCD	2.5x	2.3x	1.5x
Performance Measures (in millions)
Total revenue	$196.2	$208.2	$236.6
Pre-provision net revenue1 (PPNR)	64.2	68.9	97.7
Adjusted pre-provision net revenue1	66.3	72.6	100.0
Provision for credit losses	7.7	0.1	0.1
Noninterest income	42.8	45.0	43.0
Noninterest expense	132.0	139.7	138.9

 

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

 

Net Interest Income

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

 

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

 

Select Yield/Rates		Q3 23				Q2 23				Q1 23				Q4 22				Q3 22
Loan yield (FTE)2			6.08	%			5.89	%			5.67	%			5.40	%			4.86	%
Investment securities yield (FTE)2			3.08				2.91				2.92				2.68				2.29
Cost of interest bearing deposits			3.06				2.57				2.10				1.41				0.65
Cost of deposits			2.37				1.96				1.58				1.02				0.47
Cost of borrowed funds			5.60				5.31				4.29				3.92				2.66
Net interest spread (FTE)2			1.87				2.10				2.52				2.87				3.11
Net interest margin (FTE)2			2.61				2.76				3.09				3.31				3.34

 

Noninterest Income

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

 

Noninterest Income $ in millions		Q3 23				Q2 23				Q1 23				Q4 22				Q3 22
Service charges on deposit accounts		$	12.4			$	12.9			$	12.4			$	11.9			$	12.6
Wealth management fees			7.7				7.4				7.4				8.2				8.6
Debit and credit card fees			7.7				8.0				8.0				7.8				7.7
Mortgage lending income			2.2				2.4				1.6				1.1				2.6
Other service charges and fees			2.2				2.3				2.3				2.0				2.1
Bank owned life insurance			3.1				2.6				3.0				3.0				2.9
Gain (loss) on sale of securities			-				(0.4	)			-				(0.1	)			-
Gain on insurance settlement			-				-				-				4.1				-
Other income			7.4				9.8				11.3				6.6				6.7
Total noninterest income		$	42.8			$	45.0			$	45.8			$	44.6			$	43.0
Adjusted noninterest income1		$	42.8			$	45.0			$	45.8			$	40.6			$	42.7

 

Noninterest Expense

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

 

Noninterest Expense $ in millions		Q3 23				Q2 23				Q1 23				Q4 22				Q3 22
Salaries and employee benefits		$	67.4			$	74.7			$	77.0			$	73.0			$	71.9
Occupancy expense, net			12.0				11.4				11.6				11.6				11.7
Furniture and equipment			5.1				5.1				5.1				5.4				5.4
Deposit insurance			4.7				5.2				4.9				3.7				3.3
Other real estate and foreclosure expense			0.2				0.3				0.2				0.4				0.2
Merger related costs			-				-				1.4				-				1.4
Other operating expenses			42.6				42.9				43.1				48.5				45.1
Total noninterest expense		$	132.0			$	139.7			$	143.2			$	142.6			$	138.9
Adjusted salaries and employee benefits1		$	65.8			$	71.1			$	77.0			$	73.0			$	71.9
Adjusted other operating expenses1			42.1				43.0				42.3				47.5				44.1
Adjusted noninterest expense1			129.9				136.0				140.9				141.4				136.4
Efficiency ratio			65.11	%			65.18	%			62.28	%			58.33	%			57.22	%
Adjusted efficiency ratio1			61.94				61.29				59.38				56.97				54.41
Full-time equivalent employees			3,005				3,066				3,189				3,236				3,206

 

Loans and Unfunded Loan Commitments

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

 

Loans and Unfunded Commitments $ in millions		Q3 23				Q2 23				Q1 23				Q4 22				Q3 22
Total loans		$	16,772			$	16,834			$	16,555			$	16,142			$	15,607
Unfunded loan commitments			4,049				4,443				4,725				5,000				5,138

 

Deposits

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

 

Deposits $ in millions		Q3 23				Q2 23				Q1 23				Q4 22				Q3 22
Noninterest bearing deposits		$	4,991			$	5,265			$	5,489			$	6,017			$	6,218
Interest bearing transaction accounts			10,572				10,866				11,284				11,763				12,104
Time deposits			6,668				6,358				5,679				4,768				3,827
Total deposits		$	22,231			$	22,489			$	22,452			$	22,548			$	22,149
Noninterest bearing deposits to total deposits			22	%			23	%			24	%			27	%			28	%
Total loans to total deposits			75				75				74				72				70

 

Asset Quality

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

 

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

 

Asset Quality $ in millions		Q3 23				Q2 23				Q1 23				Q4 22				Q3 22
Allowance for credit losses on loans to total loans			1.30	%			1.25	%			1.25	%			1.22	%			1.27	%
Allowance for credit losses on loans to nonperforming loans			267				292				324				334				342
Nonperforming loans to total loans			0.49				0.43				0.38				0.37				0.37
Net charge-off ratio (annualized)			0.28				0.04				0.03				0.13				-
Net charge-off ratio YTD (annualized)			0.12				0.04				0.03				0.09				0.07
Total nonperforming loans		$	81.9			$	72.0			$	63.7			$	58.9			$	57.8
Total other nonperforming assets			5.2				4.9				7.7				3.6				4.7
Total nonperforming assets		$	87.1			$	76.9			$	71.4			$	62.5			$	62.5
Reserve for unfunded commitments		$	25.6			$	36.9			$	41.9			$	41.9			$	41.9

 

Capital

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

 

Select Capital Ratios		Q3 23				Q2 23				Q1 23				Q4 22				Q3 22
Stockholders’ equity to total assets			11.9	%			12.0	%			12.1	%			11.9	%			11.7	%
Tangible common equity to tangible assets1			7.1				7.2				7.3				7.0				6.7
Common equity tier 1 (CET1) ratio			12.0				11.9				11.9				11.9				11.7
Tier 1 leverage ratio			9.3				9.2				9.2				9.3				9.2
Tier 1 risk-based capital ratio			12.0				11.9				11.9				11.9				11.7
Total risk-based capital ratio			14.3				14.2				14.5				14.2				14.1

 

Share Repurchase Program

During the third quarter of 2023, Simmons repurchased approximately 1.1 million shares of its Class A common stock at an average price of $17.69 under its 2022 stock repurchase program (2022 Program). Remaining authorization under the 2022 Program as of September 30, 2023, was approximately $40 million. Market conditions and our capital needs (among other things) will drive decisions regarding future stock repurchases, if any; the timing, pricing and amount of any repurchases under the 2022 Program will be determined by Simmons’ management at its discretion; and the 2022 Program does not obligate Simmons to repurchase any common stock and may be modified, discontinued or suspended at any time without prior notice.

 

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

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

 

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. Central Time today, Tuesday, October 24, 2023. Interested persons can listen to this call by dialing toll-free 1-844-481-2779 (North America only) and asking for the Simmons First National Corporation conference call, conference ID 10182813. In addition, the call will be available live or in recorded version on Simmons’ website at simmonsbank.com for at least 60 days following the date of the call.

 

Simmons First National Corporation

Simmons First National Corporation (NASDAQ: SFNC) is a Mid-South based financial holding company that has paid cash dividends to its shareholders for 114 consecutive years. Its principal subsidiary, Simmons Bank, operates 232 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. Founded in 1903, Simmons Bank offers comprehensive financial solutions delivered with a client-centric approach. In 2023, Simmons Bank was recognized by Forbes as one of America’s Best Midsize Employers and among the World’s Best Banks for the fourth consecutive year. In 2022, Simmons Bank was named to Forbes’ list of "America's Best Banks" for the second consecutive year. Additional information about Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on X (formerly Twitter) or by visiting our newsroom.

 

Non-GAAP Financial Measures

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

 

Forward-Looking Statements

Certain statements in this press release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Fehlman’s quote, may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, business strategies, lending capacity and lending activity, loan demand, revenue, assets, asset quality, profitability, dividends, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, digital banking initiatives, the Company’s ability to recruit and retain key employees, the estimated cost savings associated with the Company’s Better Bank Initiative, the adequacy of the allowance for credit losses, and future economic conditions and interest rates. Any forward-looking statement speaks only as of the date of this press release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this press release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, changes in credit quality, changes in interest rates and related governmental policies, changes in loan demand, changes in deposit flows, changes in real estate values, changes in the assumptions used in making the forward-looking statements, changes in the securities markets generally or the price of Simmons’ common stock specifically, and changes in information technology affecting the financial industry; changes in customer behaviors, including consumer spending, borrowing, and saving habits; general economic and market conditions; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and between Israel and Hamas) or other major events, or the prospect of these events; the soundness of other financial institutions and indirect exposure related to the closings of Silicon Valley Bank (SVB), Signature Bank and Silvergate Bank and their impact on the broader market through other customers, suppliers and partners (or that the conditions which resulted in the liquidity concerns with SVB, Signature Bank and Silvergate Bank may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships); increased inflation; the loss of key employees; increased competition in the markets in which the Company operates; increased unemployment; labor shortages; claims, damages, and fines related to litigation or government actions; changes in accounting principles relating to loan loss recognition (current expected credit losses); the Company’s ability to manage and successfully integrate its mergers and acquisitions and to fully realize cost savings and other benefits associated with those transactions; cyber threats, attacks or events; reliance on third parties for key services; government legislation; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those projected in or contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in the Company’s Form 10-K for the year ended December 31, 2022, the Company’s Form 10-Q for the quarterly period ended March 31, 2023, and other reports that the Company has filed with or furnished to the U.S. Securities and Exchange Commission (the SEC), all of which are available from the SEC on its website, www.sec.gov. In addition, there can be no guarantee that the board of directors (Board) of Simmons will approve a quarterly dividend in future quarters, and the timing, payment, and amount of future dividends (if any) is subject to, among other things, the discretion of the Board and may differ significantly from past dividends.

 

FOR MORE INFORMATION CONTACT:

Ed Bilek, EVP, Director of Investor and Media Relations

ed.bilek@simmonsbank.com or 205.612.3378 (cell)

 

Simmons First National Corporation																		SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands)
ASSETS
Cash and noninterest bearing balances due from banks		$	181,822			$	181,268			$	199,316			$	200,616			$	175,547
Interest bearing balances due from banks and federal funds sold			423,826				564,644				325,135				481,506				503,863
Cash and cash equivalents			605,648				745,912				524,451				682,122				679,410
Interest bearing balances due from banks - time			100				545				795				795				1,290
Investment securities - held-to-maturity			3,742,292				3,756,754				3,765,483				3,759,706				3,787,076
Investment securities - available-for-sale			3,358,421				3,579,758				3,755,956				3,852,854				3,937,543
Mortgage loans held for sale			11,690				10,342				4,244				3,486				12,759
Other loans held for sale			-				-				-				-				2,292
Loans:
Loans			16,771,888				16,833,653				16,555,098				16,142,124				15,607,135
Allowance for credit losses on loans			(218,547	)			(209,966	)			(206,557	)			(196,955	)			(197,589	)
Net loans			16,553,341				16,623,687				16,348,541				15,945,169				15,409,546
Premises and equipment			567,167				562,025				564,497				548,741				549,932
Foreclosed assets and other real estate owned			3,809				3,909				2,721				2,887				3,612
Interest receivable			110,361				103,431				98,775				102,892				86,637
Bank owned life insurance			497,465				494,370				493,191				491,340				488,364
Goodwill			1,320,799				1,320,799				1,320,799				1,319,598				1,309,000
Other intangible assets			116,660				120,758				124,854				128,951				133,059
Other assets			676,572				636,833				579,139				622,520				675,554
Total assets		$	27,564,325			$	27,959,123			$	27,583,446			$	27,461,061			$	27,076,074
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing transaction accounts		$	4,991,034			$	5,264,962			$	5,489,434			$	6,016,651			$	6,218,283
Interest bearing transaction accounts and savings deposits			10,571,807				10,866,078				11,283,584				11,762,885				12,103,994
Time deposits			6,668,370				6,357,682				5,678,757				4,768,558				3,826,415
Total deposits			22,231,211				22,488,722				22,451,775				22,548,094				22,148,692
Federal funds purchased and securities sold
under agreements to repurchase			74,482				102,586				142,862				160,403				168,513
Other borrowings			1,347,855				1,373,339				1,023,826				859,296				964,772
Subordinated notes and debentures			366,103				366,065				366,027				365,989				365,951
Accrued interest and other liabilities			259,119				272,085				259,055				257,917				270,995
Total liabilities			24,278,770				24,602,797				24,243,545				24,191,699				23,918,923
Stockholders' equity:
Common stock			1,251				1,262				1,273				1,270				1,269
Surplus			2,497,874				2,516,398				2,533,589				2,530,066				2,527,153
Undivided profits			1,330,810				1,308,654				1,275,720				1,255,586				1,196,459
Accumulated other comprehensive (loss) income			(544,380	)			(469,988	)			(470,681	)			(517,560	)			(567,730	)
Total stockholders' equity			3,285,555				3,356,326				3,339,901				3,269,362				3,157,151
Total liabilities and stockholders' equity		$	27,564,325			$	27,959,123			$	27,583,446			$	27,461,061			$	27,076,074

 

Simmons First National Corporation																		SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands, except per share data)
INTEREST INCOME
Loans (including fees)		$	255,901			$	244,292			$	227,498			$	216,091			$	187,347
Interest bearing balances due from banks and federal funds sold			3,569				4,023				2,783				2,593				1,141
Investment securities			50,638				48,751				48,774				45,689				40,954
Mortgage loans held for sale			178				154				82				152				178
Other loans held for sale			-				-				-				59				998
TOTAL INTEREST INCOME			310,286				297,220				279,137				264,584				230,618
INTEREST EXPENSE
Time deposits			68,062				53,879				39,538				22,434				8,204
Other deposits			65,095				54,485				47,990				34,615				17,225
Federal funds purchased and securities
sold under agreements to repurchase			277				318				323				449				305
Other borrowings			16,450				18,612				8,848				9,263				6,048
Subordinated notes and debentures			6,969				6,696				4,603				4,797				5,251
TOTAL INTEREST EXPENSE			156,853				133,990				101,302				71,558				37,033
NET INTEREST INCOME			153,433				163,230				177,835				193,026				193,585
PROVISION FOR CREDIT LOSSES
Provision for credit losses on loans			20,222				5,061				10,916				26				(15,897	)
Provision for credit losses on unfunded commitments			(11,300	)			(5,000	)			-				-				16,000
Provision for credit losses on investment securities - AFS			(1,200	)			(1,326	)			12,800				-				-
Provision for credit losses on investment securities - HTM			-				1,326				500				-				-
TOTAL PROVISION FOR CREDIT LOSSES			7,722				61				24,216				26				103
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES			145,711				163,169				153,619				193,000				193,482
NONINTEREST INCOME
Service charges on deposit accounts			12,429				12,882				12,437				11,892				12,560
Debit and credit card fees			7,712				7,986				7,952				7,845				7,685
Wealth management fees			7,719				7,440				7,365				8,151				8,562
Mortgage lending income			2,157				2,403				1,570				1,139				2,593
Bank owned life insurance income			3,095				2,555				2,973				2,975				2,902
Other service charges and fees (includes insurance income)			2,232				2,262				2,282				2,023				2,085
Gain (loss) on sale of securities			-				(391	)			-				(52	)			(22	)
Gain on insurance settlement			-				-				-				4,074				-
Other income			7,433				9,843				11,256				6,600				6,658
TOTAL NONINTEREST INCOME			42,777				44,980				45,835				44,647				43,023
NONINTEREST EXPENSE
Salaries and employee benefits			67,374				74,723				77,038				73,018				71,923
Occupancy expense, net			12,020				11,410				11,578				11,620				11,674
Furniture and equipment expense			5,117				5,128				5,051				5,392				5,394
Other real estate and foreclosure expense			228				289				186				350				168
Deposit insurance			4,672				5,201				4,893				3,680				3,278
Merger-related costs			5				19				1,396				35				1,422
Other operating expenses			42,582				42,926				43,086				48,480				45,084
TOTAL NONINTEREST EXPENSE			131,998				139,696				143,228				142,575				138,943
NET INCOME BEFORE INCOME TAXES			56,490				68,453				56,226				95,072				97,562
Provision for income taxes			9,243				10,139				10,637				11,812				16,959
NET INCOME		$	47,247			$	58,314			$	45,589			$	83,260			$	80,603
BASIC EARNINGS PER SHARE		$	0.38			$	0.46			$	0.36			$	0.66			$	0.63
DILUTED EARNINGS PER SHARE		$	0.37			$	0.46			$	0.36			$	0.65			$	0.63

 

Simmons First National Corporation																		SFNC
Consolidated Risk-Based Capital
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands)
Tier 1 capital
Stockholders' equity		$	3,285,555			$	3,356,326			$	3,339,901			$	3,269,362			$	3,157,151
CECL transition provision (1)			61,746				61,746				61,746				92,619				92,619
Disallowed intangible assets, net of deferred tax			(1,402,682	)			(1,406,500	)			(1,410,141	)			(1,412,667	)			(1,416,453	)
Unrealized loss (gain) on AFS securities			544,380				469,988				470,681				517,560				567,730
Total Tier 1 capital			2,488,999				2,481,560				2,462,187				2,466,874				2,401,047
Tier 2 capital
Subordinated notes and debentures			366,103				366,065				366,027				365,989				365,951
Subordinated debt phase out			(66,000	)			(66,000	)			-				-				-
Qualifying allowance for loan losses and
reserve for unfunded commitments			165,490				169,409				173,077				115,627				116,257
Total Tier 2 capital			465,593				469,474				539,104				481,616				482,208
Total risk-based capital		$	2,954,592			$	2,951,034			$	3,001,291			$	2,948,490			$	2,883,255
Risk weighted assets		$	20,703,669			$	20,821,075			$	20,748,605			$	20,738,727			$	20,470,918
Adjusted average assets for leverage ratio		$	26,733,658			$	26,896,289			$	26,632,691			$	26,407,061			$	25,986,938
Ratios at end of quarter
Equity to assets			11.92	%			12.00	%			12.11	%			11.91	%			11.66	%
Tangible common equity to tangible assets (2)			7.07	%			7.22	%			7.25	%			7.00	%			6.69	%
Common equity Tier 1 ratio (CET1)			12.02	%			11.92	%			11.87	%			11.90	%			11.73	%
Tier 1 leverage ratio			9.31	%			9.23	%			9.24	%			9.34	%			9.24	%
Tier 1 risk-based capital ratio			12.02	%			11.92	%			11.87	%			11.90	%			11.73	%
Total risk-based capital ratio			14.27	%			14.17	%			14.47	%			14.22	%			14.08	%

 

(1) The Company has elected to use the CECL transition provision allowed for in the year of adopting ASC 326.

(2) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

 

Simmons First National Corporation																		SFNC
Consolidated Investment Securities
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands)
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies		$	452,428			$	451,737			$	451,052			$	448,012			$	447,400
Mortgage-backed securities			1,178,324				1,193,118				1,201,418				1,190,781				1,214,882
State and political subdivisions			1,857,652				1,859,022				1,859,970				1,860,992				1,865,203
Other securities			253,888				252,877				253,043				259,921				259,591
Total held-to-maturity (net of credit losses)			3,742,292				3,756,754				3,765,483				3,759,706				3,787,076
Available-for-Sale
U.S. Treasury		$	2,224			$	2,209			$	2,220			$	2,197			$	2,191
U.S. Government agencies			172,759				176,564				181,843				184,279				188,060
Mortgage-backed securities			2,157,092				2,282,328				2,433,530				2,542,902				2,670,348
State and political subdivisions			790,344				885,505				895,896				871,074				822,509
Other securities			236,002				233,152				242,467				252,402				254,435
Total available-for-sale (net of credit losses)			3,358,421				3,579,758				3,755,956				3,852,854				3,937,543
Total investment securities (net of credit losses)		$	7,100,713			$	7,336,512			$	7,521,439			$	7,612,560			$	7,724,619
Fair value - HTM investment securities		$	2,848,211			$	3,094,958			$	3,148,976			$	3,063,233			$	2,984,040

 

 

Simmons First National Corporation																		SFNC
Consolidated Loans
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands)
Loan Portfolio - End of Period
Consumer:
Credit cards		$	191,550			$	209,452			$	188,590			$	196,928			$	192,559
Other consumer			112,832				148,333				142,817				152,882				180,604
Total consumer			304,382				357,785				331,407				349,810				373,163
Real Estate:
Construction			3,022,321				2,930,586				2,777,122				2,566,649				2,372,294
Single-family residential			2,657,879				2,633,365				2,589,831				2,546,115				2,467,008
Other commercial real estate			7,565,008				7,546,130				7,520,964				7,468,498				7,249,891
Total real estate			13,245,208				13,110,081				12,887,917				12,581,262				12,089,193
Commercial:
Commercial			2,477,077				2,569,330				2,669,731				2,632,290				2,525,218
Agricultural			296,912				280,541				220,641				205,623				263,539
Total commercial			2,773,989				2,849,871				2,890,372				2,837,913				2,788,757
Other			448,309				515,916				445,402				373,139				356,022
Total loans		$	16,771,888			$	16,833,653			$	16,555,098			$	16,142,124			$	15,607,135

 

 

Simmons First National Corporation																		SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands)
Allowance for Credit Losses on Loans
Beginning balance		$	209,966			$	206,557			$	196,955			$	197,589			$	212,611
Day 1 PCD allowance from acquisitions:
Spirit of Texas (04/08/2022)			-				-				-				4,523				1,057
Total Day 1 PCD allowance			-				-				-				4,523				1,057
Loans charged off:
Credit cards			1,318				1,409				1,076				1,035				903
Other consumer			633				666				456				439				505
Real estate			9,723				435				1,204				3,392				130
Commercial			1,219				1,225				413				5,389				1,874
Total loans charged off			12,893				3,735				3,149				10,255				3,412
Recoveries of loans previously charged off:
Credit cards			234				298				234				251				250
Other consumer			344				436				240				230				278
Real estate			429				878				294				4,117				1,982
Commercial			245				471				1,067				475				720
Total recoveries			1,252				2,083				1,835				5,073				3,230
Net loans charged off			11,641				1,652				1,314				5,182				182
Provision for credit losses on loans			20,222				5,061				10,916				25				(15,897	)
Balance, end of quarter		$	218,547			$	209,966			$	206,557			$	196,955			$	197,589
Nonperforming assets
Nonperforming loans:
Nonaccrual loans		$	81,135			$	71,279			$	63,218			$	58,434			$	57,534
Loans past due 90 days or more			806				738				437				507				242
Total nonperforming loans			81,941				72,017				63,655				58,941				57,776
Other nonperforming assets:
Foreclosed assets and other real estate owned			3,809				3,909				2,721				2,887				3,612
Other nonperforming assets			1,417				1,013				5,012				644				1,146
Total other nonperforming assets			5,226				4,922				7,733				3,531				4,758
Total nonperforming assets		$	87,167			$	76,939			$	71,388			$	62,472			$	62,534
Performing FDMs (modifications to borrowers
experiencing financial difficulty)		$	33,723			$	2,996			$	2,183			$	1,849			$	1,869
Ratios
Allowance for credit losses on loans to total loans			1.30	%			1.25	%			1.25	%			1.22	%			1.27	%
Allowance for credit losses to nonperforming loans			267	%			292	%			324	%			334	%			342	%
Nonperforming loans to total loans			0.49	%			0.43	%			0.38	%			0.37	%			0.37	%
Nonperforming assets (including performing FDMs)
to total assets			0.44	%			0.29	%			0.27	%			0.23	%			0.24	%
Nonperforming assets to total assets			0.32	%			0.28	%			0.26	%			0.23	%			0.23	%
Annualized net charge offs to average loans (QTD)			0.28	%			0.04	%			0.03	%			0.13	%			0.00	%
Annualized net charge offs to average loans (YTD)			0.12	%			0.04	%			0.03	%			0.09	%			0.07	%
Annualized net credit card charge offs to
average credit card loans (QTD)			2.19	%			2.25	%			1.69	%			1.52	%			1.30	%

 

Simmons First National Corporation																																		SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
		Three Months Ended Sep 2023												Three Months Ended Jun 2023												Three Months Ended Sep 2022
($ in thousands)		Average Balance				Income/ Expense				Yield/ Rate				Average Balance				Income/ Expense				Yield/ Rate				Average Balance				Income/ Expense				Yield/ Rate
ASSETS
Earning assets:
Interest bearing balances due from banks
and federal funds sold		$	331,444			$	3,569				4.27	%		$	404,639			$	4,023				3.99	%		$	327,841			$	1,141				1.38	%
Investment securities - taxable			4,638,486				34,734				2.97	%			4,821,231				32,745				2.72	%			5,408,189				24,848				1.82	%
Investment securities - non-taxable (FTE)			2,617,152				21,563				3.27	%			2,627,192				21,253				3.24	%			2,665,515				21,805				3.25	%
Mortgage loans held for sale			9,542				178				7.40	%			9,560				154				6.46	%			13,280				178				5.32	%
Other loans held for sale			-				-				0.00	%			-				-				0.00	%			9,439				998				41.95	%
Loans - including fees (FTE)			16,758,597				256,757				6.08	%			16,702,403				245,151				5.89	%			15,320,833				187,851				4.86	%
Total interest earning assets (FTE)			24,355,221				316,801				5.16	%			24,565,025				303,326				4.95	%			23,745,097				236,821				3.96	%
Non-earning assets			3,239,390												3,201,114												3,123,634
Total assets		$	27,594,611											$	27,766,139											$	26,868,731
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts		$	10,682,767			$	65,095				2.42	%		$	11,011,746			$	54,485				1.98	%		$	12,264,655			$	17,225				0.56	%
Time deposits			6,558,110				68,062				4.12	%			5,911,139				53,879				3.66	%			3,314,948				8,204				0.98	%
Total interest bearing deposits			17,240,877				133,157				3.06	%			16,922,885				108,364				2.57	%			15,579,603				25,429				0.65	%
Federal funds purchased and securities
sold under agreement to repurchase			89,769				277				1.22	%			119,985				318				1.06	%			196,047				305				0.62	%
Other borrowings			1,222,557				16,450				5.34	%			1,449,403				18,612				5.15	%			1,123,797				6,048				2.14	%
Subordinated notes and debentures			366,085				6,969				7.55	%			366,047				6,696				7.34	%			411,018				5,251				5.07	%
Total interest bearing liabilities			18,919,288				156,853				3.29	%			18,858,320				133,990				2.85	%			17,310,465				37,033				0.85	%
Noninterest bearing liabilities:
Noninterest bearing deposits			5,032,631												5,276,267												6,022,899
Other liabilities			271,014												272,628												243,296
Total liabilities			24,222,933												24,407,215												23,576,660
Stockholders' equity			3,371,678												3,358,924												3,292,071
Total liabilities and stockholders' equity		$	27,594,611											$	27,766,139											$	26,868,731
Net interest income (FTE)						$	159,948											$	169,336											$	199,788
Net interest spread (FTE)											1.87	%											2.10	%											3.11	%
Net interest margin (FTE)											2.61	%											2.76	%											3.34	%

 

 

Simmons First National Corporation																		SFNC
Consolidated - Selected Financial Data
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - As Reported
Net Income		$	47,247			$	58,314			$	45,589			$	83,260			$	80,603
Diluted earnings per share			0.37				0.46				0.36				0.65				0.63
Return on average assets			0.68	%			0.84	%			0.67	%			1.22	%			1.19	%
Return on average common equity			5.56	%			6.96	%			5.49	%			10.27	%			9.71	%
Return on tangible common equity (non-GAAP) (1)			10.33	%			12.85	%			10.25	%			19.29	%			17.99	%
Net interest margin (FTE)			2.61	%			2.76	%			3.09	%			3.31	%			3.34	%
Efficiency ratio (2)			65.11	%			65.18	%			62.28	%			58.33	%			57.22	%
FTE adjustment			6,515				6,106				6,311				6,770				6,203
Average diluted shares outstanding			126,283,609				127,379,976				127,516,478				127,505,996				128,336,422
Shares repurchased under plan			1,128,962				1,128,087				-				-				1,883,713
Average price of shares repurchased			17.69				17.75				-				-				23.91
Cash dividends declared per common share			0.200				0.200				0.200				0.190				0.190
Accretable yield on acquired loans			2,146				2,267				2,579				4,473				5,834
Financial Highlights - Adjusted (non-GAAP) (1)
Adjusted earnings		$	48,804			$	61,065			$	47,343			$	81,093			$	82,281
Adjusted diluted earnings per share			0.39				0.48				0.37				0.64				0.64
Adjusted return on average assets			0.70	%			0.88	%			0.70	%			1.18	%			1.21	%
Adjusted return on average common equity			5.74	%			7.29	%			5.70	%			10.01	%			9.92	%
Adjusted return on tangible common equity			10.64	%			13.42	%			10.62	%			18.81	%			18.35	%
Adjusted efficiency ratio (2)			61.94	%			61.29	%			59.38	%			56.97	%			54.41	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income		$	151,150			$	103,903			$	45,589			$	256,412			$	173,152
Diluted earnings per share			1.19				0.82				0.36				2.06				1.40
Return on average assets			0.73	%			0.76	%			0.67	%			0.97	%			0.88	%
Return on average common equity			6.00	%			6.23	%			5.49	%			7.87	%			7.07	%
Return on tangible common equity (non-GAAP) (1)			11.14	%			11.55	%			10.25	%			14.33	%			12.77	%
Net interest margin (FTE)			2.82	%			2.92	%			3.09	%			3.17	%			3.12	%
Efficiency ratio (2)			64.13	%			63.68	%			62.28	%			62.14	%			63.54	%
FTE adjustment			18,932				12,417				6,311				24,671				17,901
Average diluted shares outstanding			127,099,727				127,421,034				127,516,478				124,470,184				123,387,503
Cash dividends declared per common share			0.600				0.400				0.200				0.760				0.570
Financial Highlights - Adjusted (non-GAAP) (1)
Adjusted earnings		$	157,212			$	108,408			$	47,343			$	298,635			$	217,542
Adjusted diluted earnings per share			1.24				0.85				0.37				2.40				1.76
Adjusted return on average assets			0.76	%			0.79	%			0.70	%			1.13	%			1.11	%
Adjusted return on average common equity			6.24	%			6.50	%			5.70	%			9.16	%			8.88	%
Adjusted return on tangible common equity			11.56	%			12.03	%			10.62	%			16.59	%			15.89	%
Adjusted efficiency ratio (2)			60.81	%			60.30	%			59.38	%			57.50	%			57.69	%
END OF PERIOD
Book value per share		$	26.26			$	26.59			$	26.24			$	25.73			$	24.87
Tangible book value per share			14.77				15.17				14.88				14.33				13.51
Shares outstanding			125,133,281				126,224,707				127,282,192				127,046,654				126,943,467
Full-time equivalent employees			3,005				3,066				3,189				3,236				3,206
Total number of financial centers			232				231				231				230				230

 

(1) Non-GAAP measurement that management believes aids in the understanding and discussion of results. Reconciliations to GAAP are included in the schedules accompanying this release.

(2) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues. Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is a non-GAAP measurement.       

 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Quarter-to-Date
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
(in thousands, except per share data)
QUARTER-TO-DATE
Net income		$	47,247			$	58,314			$	45,589			$	83,260			$	80,603
Certain items:
(Gain) loss from early retirement of TruPS			-				-				-				-				365
Gain on sale of intellectual property			-				-				-				-				(750	)
Gain on insurance settlement			-				-				-				(4,074	)			-
Donation to Simmons First Foundation			-				-				-				-				-
Merger related costs			5				19				1,396				35				1,422
Early retirement program			1,557				3,609				-				-				-
Branch right sizing (net)			547				95				979				1,104				1,235
Day 2 CECL provision			-				-				-				-				-
Tax effect (1)			(552	)			(972	)			(621	)			768				(594	)
Certain items, net of tax			1,557				2,751				1,754				(2,167	)			1,678
Adjusted earnings (non-GAAP)		$	48,804			$	61,065			$	47,343			$	81,093			$	82,281
Diluted earnings per share		$	0.37			$	0.46			$	0.36			$	0.65			$	0.63
Certain items:
(Gain) loss from early retirement of TruPS			-				-				-				-				-
Gain on sale of intellectual property			-				-				-				-				(0.01	)
Gain on insurance settlement			-				-				-				(0.03	)
Donation to Simmons First Foundation			-				-				-				-				-
Merger related costs			-				-				0.01				-				0.01
Early retirement program			0.01				0.03				-				-				-
Branch right sizing (net)			0.01				-				0.01				0.01				0.01
Day 2 CECL provision			-				-				-				-				-
Tax effect (1)			-				(0.01	)			(0.01	)			0.01				-
Certain items, net of tax			0.02				0.02				0.01				(0.01	)			0.01
Adjusted diluted earnings per share (non-GAAP)		$	0.39			$	0.48			$	0.37			$	0.64			$	0.64
(1) Effective tax rate of 26.135%.
Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)
QUARTER-TO-DATE
Noninterest income		$	42,777			$	44,980			$	45,835			$	44,647			$	43,023
Certain noninterest income items (1)
Gain on insurance settlement			-				-				-				(4,074	)			-
(Gain) loss from early retirement of TruPS			-				-				-				-				365
Gain on sale of intellectual property			-				-				-				-				(750	)
Branch right sizing income			-				-				-				-				65
Adjusted noninterest income (non-GAAP)		$	42,777			$	44,980			$	45,835			$	40,573			$	42,703
Other income		$	7,433			$	9,843			$	11,256			$	6,600			$	6,658
Certain other income items (1)
(Gain) loss from early retirement of TruPS			-				-				-				-				365
Gain on sale of intellectual property			-				-				-				-				(750	)
Branch right sizing income			-				-				-				-				65
Adjusted other income (non-GAAP)		$	7,433			$	9,843			$	11,256			$	6,600			$	6,338
Noninterest expense		$	131,998			$	139,696			$	143,228			$	142,575			$	138,943
Certain noninterest expense items (1)
Merger related costs			(5	)			(19	)			(1,396	)			(35	)			(1,422	)
Early retirement program			(1,557	)			(3,609	)			-				-				-
Donation to Simmons First Foundation			-				-				-				-				-
Branch right sizing expense			(547	)			(95	)			(979	)			(1,104	)			(1,170	)
Adjusted noninterest expense (non-GAAP)		$	129,889			$	135,973			$	140,853			$	141,436			$	136,351
Salaries and employee benefits		$	67,374			$	74,723			$	77,038			$	73,018			$	71,923
Certain salaries and employee benefits items (1)
Early retirement program			(1,557	)			(3,609	)			-				-				-
Other			-				-				-				-				-
Adjusted salaries and employee benefits (non-GAAP)		$	65,817			$	71,114			$	77,038			$	73,018			$	71,923
Other operating expenses		$	42,582			$	42,926			$	43,086			$	48,480			$	45,084
Certain other operating expenses items (1)
Donation to Simmons First Foundation			-				-				-				-				-
Branch right sizing expense			(466	)			53				(816	)			(953	)			(973	)
Adjusted other operating expenses (non-GAAP)		$	42,116			$	42,979			$	42,270			$	47,527			$	44,111

 

(1) Certain items include gain from early retirement of trust preferred securities, gain on sale of intellectual property, gain on insurance settlement, donation to Simmons First Foundation, merger related costs, early retirement program costs, branch right sizing costs and Day 2 CECL provision.

 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Year-to-Date
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
(in thousands, except per share data)
YEAR-TO-DATE
Net income		$	151,150			$	103,903			$	45,589			$	256,412			$	173,152
Certain items:
(Gain) loss from early retirement of TruPS			-				-				-				365				365
Gain on sale of intellectual property			-				-				-				(750	)			(750	)
Gain on insurance settlement			-				-				-				(4,074	)			-
Donation to Simmons First Foundation			-				-				-				1,738				1,738
Merger related costs			1,420				1,415				1,396				22,476				22,441
Early retirement program			5,166				3,609				-				-				-
Branch right sizing (net)			1,621				1,074				979				3,628				2,524
Day 2 CECL provision			-				-				-				33,779				33,779
Tax effect (1)			(2,145	)			(1,593	)			(621	)			(14,939	)			(15,707	)
Certain items, net of tax			6,062				4,505				1,754				42,223				44,390
Adjusted earnings (non-GAAP)		$	157,212			$	108,408			$	47,343			$	298,635			$	217,542
Diluted earnings per share		$	1.19			$	0.82			$	0.36			$	2.06			$	1.40
Certain items:
(Gain) loss from early retirement of TruPS			-				-				-				-				-
Gain on sale of intellectual property			-				-				-				(0.01	)			(0.01	)
Gain on insurance settlement			-				-				-				(0.03	)			-
Donation to Simmons First Foundation			-				-				-				0.01				0.01
Merger related costs			0.01				0.01				0.01				0.18				0.18
Early retirement program			0.04				0.03				-				-				-
Branch right sizing (net)			0.02				0.01				0.01				0.03				0.02
Day 2 CECL provision			-				-				-				0.28				0.28
Tax effect (1)			(0.02	)			(0.02	)			(0.01	)			(0.12	)			(0.12	)
Certain items, net of tax			0.05				0.03				0.01				0.34				0.36
Adjusted diluted earnings per share (non-GAAP)		$	1.24			$	0.85			$	0.37			$	2.40			$	1.76
(1) Effective tax rate of 26.135%.
Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)
YEAR-TO-DATE
Noninterest income		$	133,592			$	90,815			$	45,835			$	170,066			$	125,419
Certain noninterest income items (1)
Gain on insurance settlement			-				-				-				(4,074	)			-
(Gain) loss from early retirement of TruPS			-				-				-				365				365
Gain on sale of intellectual property			-				-				-				(750	)			(750	)
Branch right sizing income			-				-				-				153				153
Adjusted noninterest income (non-GAAP)		$	133,592			$	90,815			$	45,835			$	165,760			$	125,187
Other income		$	28,532			$	21,099			$	11,256			$	27,361			$	20,761
Certain other income items (1)
(Gain) loss from early retirement of TruPS			-				-				-				365				365
Gain on sale of intellectual property			-				-				-				(750	)			(750	)
Branch right sizing income			-				-				-				153				153
Adjusted other income (non-GAAP)		$	28,532			$	21,099			$	11,256			$	27,129			$	20,529
Noninterest expense		$	414,922			$	282,924			$	143,228			$	566,748			$	424,173
Certain noninterest expense items (1)
Merger related costs			(1,420	)			(1,415	)			(1,396	)			(22,476	)			(22,441	)
Early retirement program			(5,166	)			(3,609	)			-				-				-
Donation to Simmons First Foundation			-				-				-				(1,738	)			(1,738	)
Branch right sizing expense			(1,621	)			(1,074	)			(979	)			(3,475	)			(2,371	)
Adjusted noninterest expense (non-GAAP)		$	406,715			$	276,826			$	140,853			$	539,059			$	397,623
Salaries and employee benefits		$	219,135			$	151,761			$	77,038			$	286,982			$	213,964
Certain salaries and employee benefits items (1)
Early retirement program			(5,166	)			(3,609	)			-				-				-
Other			-				-				-				-				-
Adjusted salaries and employee benefits (non-GAAP)		$	213,969			$	148,152			$	77,038			$	286,982			$	213,964
Other operating expenses		$	128,594			$	86,012			$	43,086			$	179,693			$	131,213
Certain other operating expenses items (1)
Donation to Simmons First Foundation			-				-				-				(1,738	)			(1,738	)
Branch right sizing expense			(1,229	)			(763	)			(816	)			(2,650	)			(1,697	)
Adjusted other operating expenses (non-GAAP)		$	127,365			$	85,249			$	42,270			$	175,305			$	127,778

 

(1) Certain items include gain from early retirement of trust preferred securities, gain on sale of intellectual property, gain on insurance settlement, donation to Simmons First Foundation, merger related costs, early retirement program costs, branch right sizing costs and Day 2 CECL provision.

 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands, except per share data)
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets
Total common stockholders' equity		$	3,285,555			$	3,356,326			$	3,339,901			$	3,269,362			$	3,157,151
Intangible assets:
Goodwill			(1,320,799	)			(1,320,799	)			(1,320,799	)			(1,319,598	)			(1,309,000	)
Other intangible assets			(116,660	)			(120,758	)			(124,854	)			(128,951	)			(133,059	)
Total intangibles			(1,437,459	)			(1,441,557	)			(1,445,653	)			(1,448,549	)			(1,442,059	)
Tangible common stockholders' equity		$	1,848,096			$	1,914,769			$	1,894,248			$	1,820,813			$	1,715,092
Total assets		$	27,564,325			$	27,959,123			$	27,583,446			$	27,461,061			$	27,076,074
Intangible assets:
Goodwill			(1,320,799	)			(1,320,799	)			(1,320,799	)			(1,319,598	)			(1,309,000	)
Other intangible assets			(116,660	)			(120,758	)			(124,854	)			(128,951	)			(133,059	)
Total intangibles			(1,437,459	)			(1,441,557	)			(1,445,653	)			(1,448,549	)			(1,442,059	)
Tangible assets		$	26,126,866			$	26,517,566			$	26,137,793			$	26,012,512			$	25,634,015
Ratio of common equity to assets			11.92	%			12.00	%			12.11	%			11.91	%			11.66	%
Ratio of tangible common equity to tangible assets			7.07	%			7.22	%			7.25	%			7.00	%			6.69	%
Calculation of Tangible Book Value per Share
Total common stockholders' equity		$	3,285,555			$	3,356,326			$	3,339,901			$	3,269,362			$	3,157,151
Intangible assets:
Goodwill			(1,320,799	)			(1,320,799	)			(1,320,799	)			(1,319,598	)			(1,309,000	)
Other intangible assets			(116,660	)			(120,758	)			(124,854	)			(128,951	)			(133,059	)
Total intangibles			(1,437,459	)			(1,441,557	)			(1,445,653	)			(1,448,549	)			(1,442,059	)
Tangible common stockholders' equity		$	1,848,096			$	1,914,769			$	1,894,248			$	1,820,813			$	1,715,092
Shares of common stock outstanding			125,133,281				126,224,707				127,282,192				127,046,654				126,943,467
Book value per common share		$	26.26			$	26.59			$	26.24			$	25.73			$	24.87
Tangible book value per common share		$	14.77			$	15.17			$	14.88			$	14.33			$	13.51
Calculation of Coverage Ratio of Uninsured, Non-Collateralized Deposits
Uninsured deposits at Simmons Bank		$	8,143,200			$	8,507,395			$	8,978,581			$	8,913,990			$	9,315,086
Less: Collateralized deposits (excluding portion that is FDIC insured)			2,835,405				3,030,550				3,081,829				2,759,248				3,094,859
Less: Intercompany eliminations			676,840				674,552				628,592				529,042				438,047
Total uninsured, non-collateralized deposits		$	4,630,955			$	4,802,293			$	5,268,160			$	5,625,700			$	5,782,180
FHLB borrowing availability		$	5,372,000			$	5,345,000			$	5,574,000			$	5,442,000			$	3,220,000
Unpledged securities			4,124,000				3,877,000				3,000,000				3,180,000				4,985,000
Fed funds lines, Fed discount window and
Bank Term Funding Program			1,951,000				1,874,000				2,206,000				1,982,000				504,000
Additional liquidity sources		$	11,447,000			$	11,096,000			$	10,780,000			$	10,604,000			$	8,709,000
Uninsured, non-collateralized deposit coverage ratio			2.5				2.3				2.0				1.9				1.5

 

 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands)
Calculation of Adjusted Return on Average Assets
Net income		$	47,247			$	58,314			$	45,589			$	83,260			$	80,603
Certain items (non-GAAP)
(Gain) loss from early retirement of TruPS			-				-				-				-				365
Gain on sale of intellectual property			-				-				-				-				(750	)
Gain on insurance settlement			-				-				-				(4,074	)			-
Donation to Simmons First Foundation			-				-				-				-				-
Merger related costs			5				19				1,396				35				1,422
Early retirement program			1,557				3,609				-				-				-
Branch right sizing (net)			547				95				979				1,104				1,235
Day 2 CECL provision			-				-				-				-				-
Tax effect of certain items (2)			(552	)			(972	)			(621	)			768				(594	)
Adjusted earnings (non-GAAP)		$	48,804			$	61,065			$	47,343			$	81,093			$	82,281
Average total assets		$	27,594,611			$	27,766,139			$	27,488,732			$	27,180,575			$	26,868,731
Return on average assets			0.68	%			0.84	%			0.67	%			1.22	%			1.19	%
Adjusted return on average assets (non-GAAP)			0.70	%			0.88	%			0.70	%			1.18	%			1.21	%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders		$	47,247			$	58,314			$	45,589			$	83,260			$	80,603
Amortization of intangibles, net of taxes			3,027				3,026				3,026				3,035				3,121
Total income available to common stockholders		$	50,274			$	61,340			$	48,615			$	86,295			$	83,724
Certain items (non-GAAP)
(Gain) loss from early retirement of TruPS			-				-				-				-				365
Gain on sale of intellectual property			-				-				-				-				(750	)
Gain on insurance settlement			-				-				-				(4,074	)			-
Donation to Simmons First Foundation			-				-				-				-				-
Merger related costs			5				19				1,396				35				1,422
Early retirement program			1,557				3,609				-				-				-
Branch right sizing (net)			547				95				979				1,104				1,235
Day 2 CECL provision			-				-				-				-				-
Tax effect of certain items (2)			(552	)			(972	)			(621	)			768				(594	)
Adjusted earnings (non-GAAP)			48,804				61,065				47,343				81,093				82,281
Amortization of intangibles, net of taxes			3,027				3,026				3,026				3,035				3,121
Total adjusted earnings available to common stockholders (non-GAAP)		$	51,831			$	64,091			$	50,369			$	84,128			$	85,402
Average common stockholders' equity		$	3,371,678			$	3,358,924			$	3,370,651			$	3,214,912			$	3,292,071
Average intangible assets:
Goodwill			(1,320,799	)			(1,320,799	)			(1,319,624	)			(1,309,124	)			(1,309,804	)
Other intangibles			(119,125	)			(123,173	)			(127,394	)			(131,229	)			(135,718	)
Total average intangibles			(1,439,924	)			(1,443,972	)			(1,447,018	)			(1,440,353	)			(1,445,522	)
Average tangible common stockholders' equity (non-GAAP)		$	1,931,754			$	1,914,952			$	1,923,633			$	1,774,559			$	1,846,549
Return on average common equity			5.56	%			6.96	%			5.49	%			10.27	%			9.71	%
Return on tangible common equity			10.33	%			12.85	%			10.25	%			19.29	%			17.99	%
Adjusted return on average common equity (non-GAAP)			5.74	%			7.29	%			5.70	%			10.01	%			9.92	%
Adjusted return on tangible common equity (non-GAAP)			10.64	%			13.42	%			10.62	%			18.81	%			18.35	%
Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)
Noninterest expense (efficiency ratio numerator)		$	131,998			$	139,696			$	143,228			$	142,575			$	138,943
Certain noninterest expense items (non-GAAP)
Merger related costs			(5	)			(19	)			(1,396	)			(35	)			(1,422	)
Early retirement program			(1,557	)			(3,609	)			-				-				-
Donation to Simmons First Foundation			-				-				-				-				-
Branch right sizing expense			(547	)			(95	)			(979	)			(1,104	)			(1,170	)
Other real estate and foreclosure expense adjustment			(228	)			(289	)			(186	)			(350	)			(168	)
Amortization of intangibles adjustment			(4,097	)			(4,098	)			(4,096	)			(4,108	)			(4,225	)
Adjusted efficiency ratio numerator		$	125,564			$	131,586			$	136,571			$	136,978			$	131,958
Net interest income		$	153,433			$	163,230			$	177,835			$	193,026			$	193,585
Noninterest income			42,777				44,980				45,835				44,647				43,023
Fully tax-equivalent adjustment (effective tax rate of 26.135%)			6,515				6,106				6,311				6,770				6,203
Efficiency ratio denominator			202,725				214,316				229,981				244,443				242,811
Certain noninterest income items (non-GAAP)
Gain on insurance settlement			-				-				-				(4,074	)			-
(Gain) loss from early retirement of TruPS			-				-				-				-				365
Gain on sale of intellectual property			-				-				-				-				(750	)
Branch right sizing income			-				-				-				-				65
(Gain) loss on sale of securities			-				391				-				52				22
Adjusted efficiency ratio denominator		$	202,725			$	214,707			$	229,981			$	240,421			$	242,513
Efficiency ratio (1)			65.11	%			65.18	%			62.28	%			58.33	%			57.22	%
Adjusted efficiency ratio (non-GAAP) (1)			61.94	%			61.29	%			59.38	%			56.97	%			54.41	%

 

(1) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues.  Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is a non-GAAP measurement.

(2) Effective tax rate of 26.135%.

           

 

 

 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands)
Calculation of Pre-Provision Net Revenue (PPNR)
Net interest income		$	153,433			$	163,230			$	177,835			$	193,026			$	193,585
Noninterest income			42,777				44,980				45,835				44,647				43,023
Revenue			196,210				208,210				223,670				237,673				236,608
Less: Gain (loss) on sale of securities			-				(391	)			-				(52	)			(22	)
Less: Noninterest expense			131,998				139,696				143,228				142,575				138,943
Pre-Provision Net Revenue (PPNR)		$	64,212			$	68,905			$	80,442			$	95,150			$	97,687
Calculation of Adjusted Pre-Provision Net Revenue
Pre-Provision Net Revenue (PPNR)		$	64,212			$	68,905			$	80,442			$	95,150			$	97,687
Plus: Loss from early retirement of TruPS			-				-				-				-				365
Less: Gain on sale of intellectual property			-				-				-				-				(750	)
Less: Gain on insurance settlement			-				-				-				(4,074	)			-
Plus: Donation to Simmons First Foundation			-				-				-				-				-
Plus: Merger related costs			5				19				1,396				35				1,422
Plus: Early retirement program costs			1,557				3,609				-				-				-
Plus: Branch right sizing costs			547				95				979				1,104				1,235
Adjusted Pre-Provision Net Revenue		$	66,321			$	72,628			$	82,817			$	92,215			$	99,959

 

 

 

Simmons First National Corporation																		SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended		Sep 30				Jun 30				Mar 31				Dec 31				Sep 30
(Unaudited)		2023				2023				2023				2022				2022
($ in thousands)
Calculation of Adjusted Return on Average Assets
Net income		$	151,150			$	103,903			$	45,589			$	256,412			$	173,152
Certain items (non-GAAP)
(Gain) loss from early retirement of TruPS			-				-				-				365				365
Gain on sale of intellectual property			-				-				-				(750	)			(750	)
Gain on insurance settlement			-				-				-				(4,074	)			-
Donation to Simmons First Foundation			-				-				-				1,738				1,738
Merger related costs			1,420				1,415				1,396				22,476				22,441
Early retirement program			5,166				3,609				-				-				-
Branch right sizing (net)			1,621				1,074				979				3,628				2,524
Day 2 CECL provision			-				-				-				33,779				33,779
Tax effect of certain items (2)			(2,145	)			(1,593	)			(621	)			(14,939	)			(15,707	)
Adjusted earnings (non-GAAP)		$	157,212			$	108,408			$	47,343			$	298,635			$	217,542
Average total assets		$	27,616,882			$	27,628,202			$	27,488,732			$	26,418,838			$	26,162,136
Return on average assets			0.73	%			0.76	%			0.67	%			0.97	%			0.88	%
Adjusted return on average assets (non-GAAP)			0.76	%			0.79	%			0.70	%			1.13	%			1.11	%
Calculation of Return on Tangible Common Equity
Net income available to common stockholders		$	151,150			$	103,903			$	45,589			$	256,412			$	173,152
Amortization of intangibles, net of taxes			9,079				6,052				3,026				11,756				8,721
Total income available to common stockholders		$	160,229			$	109,955			$	48,615			$	268,168			$	181,873
Certain items (non-GAAP)
(Gain) loss from early retirement of TruPS		$	-			$	-			$	-			$	365			$	365
Gain on sale of intellectual property			-				-				-				(750	)			(750	)
Gain on insurance settlement			-				-				-				(4,074	)			-
Donation to Simmons First Foundation			-				-				-				1,738				1,738
Merger related costs			1,420				1,415				1,396				22,476				22,441
Early retirement program			5,166				3,609				-				-				-
Branch right sizing (net)			1,621				1,074				979				3,628				2,524
Day 2 CECL provision			-				-				-				33,779				33,779
Tax effect of certain items (2)			(2,145	)			(1,593	)			(621	)			(14,939	)			(15,707	)
Adjusted earnings (non-GAAP)			157,212				108,408				47,343				298,635				217,542
Amortization of intangibles, net of taxes			9,079				6,052				3,026				11,756				8,721
Total adjusted earnings available to common stockholders (non-GAAP)		$	166,291			$	114,460			$	50,369			$	310,391			$	226,263
Average common stockholders' equity		$	3,367,088			$	3,364,755			$	3,370,651			$	3,259,664			$	3,274,743
Average intangible assets:
Goodwill			(1,320,412	)			(1,320,215	)			(1,319,624	)			(1,266,762	)			(1,252,486	)
Other intangibles			(123,200	)			(125,272	)			(127,394	)			(121,622	)			(118,385	)
Total average intangibles			(1,443,612	)			(1,445,487	)			(1,447,018	)			(1,388,384	)			(1,370,871	)
Average tangible common stockholders' equity (non-GAAP)		$	1,923,476			$	1,919,268			$	1,923,633			$	1,871,280			$	1,903,872
Return on average common equity			6.00	%			6.23	%			5.49	%			7.87	%			7.07	%
Return on tangible common equity			11.14	%			11.55	%			10.25	%			14.33	%			12.77	%
Adjusted return on average common equity (non-GAAP)			6.24	%			6.50	%			5.70	%			9.16	%			8.88	%
Adjusted return on tangible common equity (non-GAAP)			11.56	%			12.03	%			10.62	%			16.59	%			15.89	%
Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)
Noninterest expense (efficiency ratio numerator)		$	414,922			$	282,924			$	143,228			$	566,748			$	424,173
Certain noninterest expense items (non-GAAP)
Merger related costs			(1,420	)			(1,415	)			(1,396	)			(22,476	)			(22,441	)
Early retirement program			(5,166	)			(3,609	)			-				-				-
Donation to Simmons First Foundation			-				-				-				(1,738	)			(1,738	)
Branch right sizing expense			(1,621	)			(1,074	)			(979	)			(3,475	)			(2,371	)
Other real estate and foreclosure expense adjustment			(703	)			(475	)			(186	)			(1,003	)			(653	)
Amortization of intangibles adjustment			(12,291	)			(8,194	)			(4,096	)			(15,915	)			(11,807	)
Adjusted efficiency ratio numerator		$	393,721			$	268,157			$	136,571			$	522,141			$	385,163
Net interest income		$	494,498			$	341,065			$	177,835			$	717,316			$	524,290
Noninterest income			133,592				90,815				45,835				170,066				125,419
Fully tax-equivalent adjustment (effective tax rate of 26.135%)			18,932				12,417				6,311				24,671				17,901
Efficiency ratio denominator			647,022				444,297				229,981				912,053				667,610
Certain noninterest income items (non-GAAP)
Gain on insurance settlement			-				-				-				(4,074	)			-
(Gain) loss from early retirement of TruPS			-				-				-				365				365
Gain on sale of intellectual property			-				-				-				(750	)			(750	)
Branch right sizing income			-				-				-				153				153
(Gain) loss on sale of securities			391				391				-				278				226
Adjusted efficiency ratio denominator		$	647,413			$	444,688			$	229,981			$	908,025			$	667,604
Efficiency ratio (1)			64.13	%			63.68	%			62.28	%			62.14	%			63.54	%
Adjusted efficiency ratio (non-GAAP) (1)			60.81	%			60.30	%			59.38	%			57.50	%			57.69	%

 

(1) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues.  Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is a non-GAAP measurement.

(2) Effective tax rate of 26.135%.

 

Page 14

---

The following information was filed by Simmons First National Corp (SFNC) on Tuesday, October 24, 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.