UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 24, 2024
SIMMONS FIRST NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
Arkansas | 0-6253 | 71-0407808 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
501 Main Street, Pine Bluff, Arkansas | 71601 | |
(Address of principal executive offices) | (Zip Code) |
(870) 541-1000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading |
Name of each exchange |
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Common stock, par value $0.01 per share | SFNC | The Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 | Results of Operations and Financial Condition. |
On July 24, 2024, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information provided pursuant to this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (“Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Registrant under the Securities Act of 1933 (“Securities Act”) or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 7.01 | Regulation FD Disclosure. |
On July 24, 2024, the Registrant issued an investor presentation, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
The information provided pursuant to this Item 7.01, including Exhibit 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Registrant under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 | Financial Statements and Exhibits. |
Exhibit 99.1 | Press Release dated July 24, 2024 | |
Exhibit 99.2 | Investor Presentation issued on July 24, 2024 | |
Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SIMMONS FIRST NATIONAL CORPORATION | ||||||
/s/ C. Daniel Hobbs |
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Date: July 24, 2024 | C. Daniel Hobbs, Executive Vice President and | |||||
Chief Financial Officer |
Exhibit 99.1
July 24, 2024
Simmons First National Corporation Reports Second Quarter 2024 Results
Bob Fehlman, Simmons’ Chief Executive Officer, commented on second quarter 2024 results:
Overall, we were very pleased with our results for the quarter as key profitability metrics – net income, total revenue and pre-provision net revenue – all showed positive progression on a linked quarter basis.
Total loans increased 4 percent on a linked quarter annualized basis, while our focus on maintaining prudent pricing discipline resulted in a 15 basis point increase in the yield on our loan portfolio from the first quarter. At the same time, the pace of increase in deposit costs slowed, rising just 4 basis points compared to first quarter levels, and noninterest bearing deposit migration also eased. As a result, our net interest margin rose 3 basis points on a linked quarter basis.
Credit quality trends in the quarter were also positive, with nonperforming loans and past due loans decreasing from first quarter levels. While we continue to operate against a backdrop of uncertainty concerning slower economic growth and the timing of lower interest rates, we are comforted by our strong capital and liquidity positions. And given the liability sensitivity of our balance sheet, we believe we are well-positioned for profitable growth in a lower interest rate environment.
FINANCIAL HIGHLIGHTS |
2Q24 | 1Q24 | 2Q23 | 2Q24 Highlights |
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BALANCE SHEET (in millions) | Comparisons reflect 2Q24 vs 1Q24
• Net income of $40.8 million and diluted EPS of $0.32
• Adjusted earnings1 of $41.9 million and adjusted diluted EPS1 of $0.33
• Total revenue of $197.2 million. PPNR1 of $57.9 million; Adjusted PPNR1 of $59.4 million
• Net interest margin at 2.69%, up 3 bps
• Pace of increase in deposit costs slowed significantly (4 bps) and noninterest bearing migration eased
• Positive operating leverage driven by revenue growth and decline in noninterest expense
• Provision for credit losses on loans exceeded net charge-offs in the quarter by $3.0 million
• NCO ratio 19 bps in 2Q24; 16 bps of NCO ratio associated with run-off portfolio • ACL ratio ends the quarter at 1.34%; NPL coverage ratio at 223%
• EA ratio 12.64%; TCE ratio1 up 9 bps to 7.84% |
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Total loans |
$ | 17,192 | $ | 17,002 | $ | 16,834 | ||||||||
Total investment securities | 6,571 | 6,735 | 7,337 | |||||||||||
Total deposits | 21,841 | 22,353 | 22,489 | |||||||||||
Total assets | 27,369 | 27,372 | 27,959 | |||||||||||
Total shareholders’ equity | 3,459 | 3,439 | 3,356 | |||||||||||
ASSET QUALITY | ||||||||||||||
Net charge-off ratio (NCO ratio) |
0.19 | % | 0.19 | % | 0.04 | % | ||||||||
Nonperforming loan ratio | 0.60 | 0.63 | 0.43 | |||||||||||
Nonperforming assets to total assets | 0.39 | 0.41 | 0.28 | |||||||||||
Allowance for credit losses to total loans | 1.34 | 1.34 | 1.25 | |||||||||||
Nonperforming loan coverage ratio | 223 | 212 | 292 | |||||||||||
PERFORMANCE MEASURES (in millions) | ||||||||||||||
Total revenue |
$ | 197.2 | $ | 195.1 | $ | 208.2 | ||||||||
Adjusted total revenue1 | 197.2 | 195.1 | 208.6 | |||||||||||
Pre-provision net revenue1 (PPNR) | 57.9 | 55.2 | 68.5 | |||||||||||
Adjusted pre-provision net revenue1 | 59.4 | 57.2 | 72.6 | |||||||||||
Provision for credit losses | 11.1 | 10.2 | 0.1 | |||||||||||
PER SHARE DATA | ||||||||||||||
Diluted earnings |
$ | 0.32 | $ | 0.31 | $ | 0.46 | ||||||||
Adjusted diluted earnings1 | 0.33 | 0.32 | 0.48 | |||||||||||
Book value | 27.56 | 27.42 | 26.59 | |||||||||||
Tangible book value1 | 16.20 | 16.02 | 15.17 | |||||||||||
CAPITAL RATIOS | ||||||||||||||
Equity to assets (EA ratio) |
12.64 | % | 12.56 | % | 12.00 | % | ||||||||
Tangible common equity (TCE) ratio1 | 7.84 | 7.75 | 7.22 | |||||||||||
Common equity tier 1 (CET1) ratio | 12.00 | 11.95 | 11.92 | |||||||||||
Total risk-based capital ratio | 14.17 | 14.43 | 14.17 | |||||||||||
LIQUIDITY ($ in millions) | ||||||||||||||
Loan to deposit ratio |
78.72 | % | 76.06 | % | 74.85 | % | ||||||||
Borrowed funds to total liabilities | 7.38 | 5.42 | 7.49 | |||||||||||
Uninsured, non-collateralized deposits (UCD) |
$ | 4,408 | $ | 4,643 | $ | 4,802 | ||||||||
Additional liquidity sources | 11,120 | 11,457 | 11,096 | |||||||||||
Coverage ratio of UCD | 2.5x | 2.5x | 2.3x |
Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $40.8 million for the second quarter of 2024, compared to $38.9 million in the first quarter of 2024 and $58.3 million in the second quarter of 2023. Diluted earnings per share were $0.32 for the second quarter of 2024, compared to $0.31 in the first quarter of 2024 and $0.46 in the second quarter of 2023. Adjusted earnings1 for the second quarter of 2024 were $41.9 million, compared to $40.4 million for the first quarter of 2024 and $61.4 million for the second quarter of 2023. Adjusted diluted earnings per share1 for the second quarter of 2024 were $0.33, compared to $0.32 for the first quarter of 2024 and $0.48 for the second quarter of 2023.
During the second quarter of 2024, we recorded $0.3 million of noninterest expense related to an FDIC special assessment levied to support the Deposit Insurance Fund. This expense was in addition to the $1.6 million and $10.5 million FDIC special assessment we recorded in the first quarter of 2024 and fourth quarter of 2023, respectively. The table below summarizes the impact of these items, along with the impact of certain other items, consisting primarily of branch right sizing, early retirement, and termination of vendor and software services. They are also described in further detail in the “Reconciliation of Non-GAAP Financial Measures” tables contained in this press release.
Impact of Certain Items on Earnings and Diluted EPS
$ in millions, except per share data |
2Q24 | 1Q24 | 2Q23 | |||||||||
Net income |
$ | 40.8 | $ | 38.9 | $ | 58.3 | ||||||
FDIC special assessment |
0.3 | 1.6 | — | |||||||||
Branch right sizing, net |
0.5 | 0.2 | 0.1 | |||||||||
Early retirement program |
0.1 | 0.2 | 3.6 | |||||||||
Termination of vendor and software services |
0.6 | — | — | |||||||||
Loss on sale of AFS investment securities |
— | — | 0.4 | |||||||||
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Total pre-tax impact |
1.5 | 2.0 | 4.1 | |||||||||
Tax effect2 |
(0.4 | ) | (0.5 | ) | (1.0 | ) | ||||||
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Total impact on earnings |
1.1 | 1.5 | 3.1 | |||||||||
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Adjusted earnings1 |
$ | 41.9 | $ | 40.4 | $ | 61.4 | ||||||
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Diluted EPS |
$ | 0.32 | $ | 0.31 | $ | 0.46 | ||||||
FDIC special assessment |
— | 0.01 | — | |||||||||
Branch right sizing, net |
— | — | — | |||||||||
Early retirement program |
— | — | 0.03 | |||||||||
Termination of vendor and software contracts |
0.01 | — | — | |||||||||
Loss on sale of AFS investment securities |
— | — | — | |||||||||
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Total pre-tax impact |
0.01 | 0.01 | 0.03 | |||||||||
Tax effect2 |
— | — | (0.01 | ) | ||||||||
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Total impact on earnings |
0.01 | 0.01 | 0.02 | |||||||||
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Adjusted Diluted EPS1 |
$ | 0.33 | $ | 0.32 | $ | 0.48 | ||||||
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Net Interest Income
Net interest income for the second quarter of 2024 totaled $153.9 million, compared to $151.9 million for the first quarter of 2024 and $163.2 million for the second quarter of 2023. Interest income totaled $329.1 million for the second quarter of 2024, compared to $322.6 million for the first quarter of 2024 and $297.2 million for the second quarter of 2023. The increase in interest income was primarily driven by an increase in loan production coupled with the rate earned on loans. Interest expense totaled $175.2 million for the second quarter of 2024, up $4.5 million on a linked quarter basis primarily due to an increase in other borrowings costs. Included in net interest income is accretion recognized on loans, which totaled $1.6 million for the second quarter of 2024, $1.1 million for the first quarter of 2024 and $2.3 million for the second quarter of 2023.
The yield on loans on a fully taxable equivalent (FTE) basis for the second quarter of 2024 was 6.39 percent, up 15 basis points from 6.24 percent for the first quarter of 2024 and up 50 basis points from 5.89 percent for the second quarter of 2023. Cost of deposits for the second quarter of 2024 was 2.79 percent, compared to 2.75 percent for the first quarter of 2024 and 1.96 percent for the second quarter of 2023. The net interest margin on an FTE basis for the second quarter of 2024 was 2.69 percent, compared to 2.66 percent for the first quarter of 2024 and 2.76 percent for the second quarter of 2023.
Select Yield/Rates
2Q24 | 1Q24 | 4Q23 | 3Q23 | 2Q23 | ||||||||||||||||
Loan yield (FTE)2 |
6.39 | % | 6.24 | % | 6.20 | % | 6.08 | % | 5.89 | % | ||||||||||
Investment securities yield (FTE)2 |
3.68 | 3.76 | 3.67 | 3.08 | 2.91 | |||||||||||||||
Cost of interest bearing deposits |
3.53 | 3.48 | 3.31 | 3.06 | 2.57 | |||||||||||||||
Cost of deposits |
2.79 | 2.75 | 2.58 | 2.37 | 1.96 | |||||||||||||||
Cost of borrowed funds |
5.84 | 5.85 | 5.79 | 5.60 | 5.31 | |||||||||||||||
Net interest spread (FTE)2 |
1.92 | 1.89 | 1.93 | 1.87 | 2.10 | |||||||||||||||
Net interest margin (FTE)2 |
2.69 | 2.66 | 2.68 | 2.61 | 2.76 |
Noninterest Income
Noninterest income for the second quarter of 2024 was $43.3 million, compared to $43.2 million in the first quarter of 2024 and $45.0 million in the second quarter of 2023. Adjusted noninterest income1 was $43.3 million in the second quarter of 2024, compared to $43.2 million in the first quarter of 2024 and $45.4 million in the second quarter of 2023. The increase in noninterest income and adjusted noninterest income on a linked quarter basis was primarily due to an increase in wealth management fees and service charges on deposit accounts, offset in part by a decline in mortgage lending income.
Noninterest Income
$ in millions |
2Q24 | 1Q24 | 4Q23 | 3Q23 | 2Q23 | |||||||||||||||
Service charges on deposit accounts |
$ | 12.3 | $ | 12.0 | $ | 12.8 | $ | 12.4 | $ | 12.9 | ||||||||||
Wealth management fees |
8.3 | 7.5 | 7.7 | 7.7 | 7.4 | |||||||||||||||
Debit and credit card fees |
8.2 | 8.2 | 7.8 | 7.7 | 8.0 | |||||||||||||||
Mortgage lending income |
2.0 | 2.3 | 1.6 | 2.2 | 2.4 | |||||||||||||||
Other service charges and fees |
2.4 | 2.2 | 2.3 | 2.2 | 2.3 | |||||||||||||||
Bank owned life insurance |
3.9 | 3.8 | 3.1 | 3.1 | 2.6 | |||||||||||||||
Gain (loss) on sale of securities |
— | — | (20.2 | ) | — | (0.4 | ) | |||||||||||||
Other income |
6.4 | 7.2 | 6.9 | 7.4 | 9.8 | |||||||||||||||
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Total noninterest income |
$ | 43.3 | $ | 43.2 | $ | 22.0 | $ | 42.8 | $ | 45.0 | ||||||||||
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Adjusted noninterest income1 |
$ | 43.3 | $ | 43.2 | $ | 42.2 | $ | 42.8 | $ | 45.4 |
Noninterest Expense
Noninterest expense for the second quarter of 2024 was $139.4 million, compared to $139.9 million in the first quarter of 2024 and $139.7 million in the second quarter of 2023. During the second quarter and first quarter of 2024, noninterest expense included an FDIC special assessment of $0.3 million and $1.6 million, respectively. Also included in noninterest expense are certain items consisting of branch right sizing, early retirement, and termination of vendor and software services. Collectively, these items totaled $1.5 million in the second quarter of 2024, $2.0 million in the first quarter of 2024 and $3.7 million in the second quarter of 2023. Excluding these items (which are described in the “Reconciliation of Non-GAAP Financial Measures” tables below), adjusted noninterest expense1 was $137.8 million in the second quarter of 2024, $137.9 million in the first quarter of 2024 and $136.0 million in the second quarter of 2023. The decrease in noninterest expense and adjusted noninterest expense on a linked quarter basis was primarily due to a decline in salaries and employee benefits.
Noninterest Expense
$ in millions |
2Q24 | 1Q24 | 4Q23 | 3Q23 | 2Q23 | |||||||||||||||
Salaries and employee benefits |
$ | 70.7 | $ | 72.7 | $ | 67.0 | $ | 67.4 | $ | 74.7 | ||||||||||
Occupancy expense, net |
11.9 | 12.3 | 11.7 | 12.0 | 11.4 | |||||||||||||||
Furniture and equipment |
5.6 | 5.1 | 5.4 | 5.1 | 5.1 | |||||||||||||||
Deposit insurance |
5.4 | 5.5 | 4.7 | 4.7 | 5.2 | |||||||||||||||
Other real estate and foreclosure expense |
0.1 | 0.2 | 0.2 | 0.2 | 0.3 | |||||||||||||||
FDIC special assessment |
0.3 | 1.6 | 10.5 | — | — | |||||||||||||||
Other operating expenses |
45.4 | 42.5 | 48.6 | 42.6 | 42.9 | |||||||||||||||
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Total noninterest expense |
$ | 139.4 | $ | 139.9 | $ | 148.1 | $ | 132.0 | $ | 139.7 | ||||||||||
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Adjusted salaries and employee benefits1 |
$ | 70.6 | $ | 72.4 | $ | 66.0 | $ | 65.8 | $ | 71.1 | ||||||||||
Adjusted other operating expenses1 |
44.3 | 42.4 | 44.9 | 42.1 | 43.0 | |||||||||||||||
Adjusted noninterest expense1 |
137.8 | 137.9 | 132.7 | 129.9 | 136.0 | |||||||||||||||
Efficiency ratio |
68.38 | % | 69.41 | % | 80.46 | % | 65.11 | % | 65.18 | % | ||||||||||
Adjusted efficiency ratio1 |
65.68 | 66.42 | 62.91 | 61.94 | 61.29 | |||||||||||||||
Full-time equivalent employees |
2,961 | 2,989 | 3,007 | 3,005 | 3,066 |
Loans and Unfunded Loan Commitments
Total loans at the end of the second quarter of 2024 were $17.2 billion, up $359 million, or 2 percent, compared to $16.8 billion at the end of the second quarter of 2023. Total loans on a linked quarter basis increased $191 million or 1 percent, reflecting continued focus on maintaining disciplined pricing strategies and prudent underwriting standards given market uncertainty regarding near-term economic activity and conditions. Unfunded loan commitments at the end of the second quarter of 2024 were $3.8 billion, compared to $3.9 billion at the end of the first quarter of 2024 and $4.4 billion at the end of the second quarter of 2023. The commercial loan pipeline ended the second quarter of 2024 at $1.0 billion, relatively unchanged from levels at the end of the first quarter 2024. The rate on ready to close commercial loans at the end of the second quarter of 2024 was 8.68 percent, up 30 basis points from the end of the first quarter of 2024.
Loans and Unfunded Loan Commitments
$ in millions |
2Q24 | 1Q24 | 4Q23 | 3Q23 | 2Q23 | |||||||||||||||
Total loans |
$ | 17,192 | $ | 17,002 | $ | 16,846 | $ | 16,772 | $ | 16,834 | ||||||||||
Unfunded loan commitments |
3,746 | 3,875 | 3,880 | 4,049 | 4,443 |
Deposits
Total deposits at the end of the second quarter of 2024 were $21.8 billion, compared to $22.4 billion at the end of the first quarter of 2024 and $22.5 billion at the end of the second quarter of 2023. The decrease in total deposits on a linked quarter basis was primarily attributable to activity related to public funds deposits. Noninterest bearing deposits totaled $4.6 billion at the end of the second quarter of 2024, relatively unchanged from first quarter 2024 levels as deposit migration eased in the second quarter. The loan-to-deposit ratio at the end of the second quarter of 2024 was 79 percent, compared to 76 percent at the end of the first quarter of 2024 and 75 percent at the end of the second quarter of 2023.
Deposits
$ in millions |
2Q24 | 1Q24 | 4Q23 | 3Q23 | 2Q23 | |||||||||||||||
Noninterest bearing deposits |
$ | 4,624 | $ | 4,698 | $ | 4,801 | $ | 4,991 | $ | 5,265 | ||||||||||
Interest bearing transaction accounts |
10,092 | 10,316 | 10,277 | 9,875 | 10,203 | |||||||||||||||
Time deposits |
4,185 | 4,314 | 4,266 | 4,103 | 3,784 | |||||||||||||||
Brokered deposits |
2,940 | 3,025 | 2,901 | 3,262 | 3,237 | |||||||||||||||
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Total deposits |
$ | 21,841 | $ | 22,353 | $ | 22,245 | $ | 22,231 | $ | 22,489 | ||||||||||
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Noninterest bearing deposits to total deposits |
21 | % | 21 | % | 22 | % | 22 | % | 23 | % | ||||||||||
Total loans to total deposits |
79 | 76 | 76 | 75 | 75 |
Asset Quality
Provision for credit losses totaled $11.1 million for the second quarter of 2024, compared to $10.2 million for the first quarter of 2024 and $0.1 million for the second quarter of 2023. Provision for credit losses on loans exceeded net charge-offs by $3.0 million during the second quarter of 2024. The allowance for credit losses on loans at the end of the second quarter of 2024 was $230.4 million, compared to $227.4 million at the end of the first quarter of 2024 and $210.0 million at the end of the second quarter of 2023. The increase in allowance for credit losses on loans on a linked quarter and year-over-year basis reflected continued normalization of the credit environment from historical lows, as well as changes in the macroeconomic conditions and increased activity in the loan portfolio. The allowance for credit losses on loans as a percentage of total loans was 1.34 percent at the end of the second quarter of 2024, unchanged from first quarter 2024 levels and up from 1.25 percent at the end of the second quarter of 2023.
Net charge-offs as a percentage of average loans for the second quarter of 2024 were 19 basis points, unchanged from first quarter 2024 levels and up from the 4 basis points recorded in the second quarter of 2023. Net charge-offs in the second quarter of 2024 included $6.7 million of charge-offs related to the previously identified run-off portfolio, which consists of an acquired asset-based lending portfolio and a small ticket equipment finance portfolio. Net charge-offs from the run-off portfolio accounted for 16 basis points of total net charge-offs recorded during the second quarter of 2024.
Total nonperforming loans at the end of the second quarter of 2024 were $103.4 million, compared to $107.3 million at the end of the first quarter of 2024 and $72.0 million at the end of the second quarter of 2023. The decrease in nonperforming loans on a linked quarter basis was primarily due to the run-off portfolio, which included a $5 million charge-off on a single, previously identified nonperforming asset-based lending credit. The nonperforming loan coverage ratio ended the second quarter of 2024 at 223 percent, compared to 212 percent at the end of the first quarter of 2024 and 292 percent at the end of the second quarter of 2023. Total nonperforming assets as a percentage of total assets were 0.39 percent at the end of the second quarter of 2024, compared to 0.41 percent at the end of the first quarter of 2024 and 0.28 percent at the end of the second quarter of 2023.
Asset Quality
$ in millions |
2Q24 | 1Q24 | 4Q23 | 3Q23 | 2Q23 | |||||||||||||||
Allowance for credit losses on loans to total loans |
1.34 | % | 1.34 | % | 1.34 | % | 1.30 | % | 1.25 | % | ||||||||||
Allowance for credit losses on loans to nonperforming loans |
223 | 212 | 267 | 267 | 292 | |||||||||||||||
Nonperforming loans to total loans |
0.60 | 0.63 | 0.50 | 0.49 | 0.43 | |||||||||||||||
Net charge-off ratio (annualized) |
0.19 | 0.19 | 0.11 | 0.28 | 0.04 | |||||||||||||||
Net charge-off ratio YTD (annualized) |
0.19 | 0.19 | 0.12 | 0.12 | 0.04 | |||||||||||||||
Total nonperforming loans |
$ | 103.4 | $ | 107.3 | $ | 84.5 | $ | 81.9 | $ | 72.0 | ||||||||||
Total other nonperforming assets |
3.4 | 5.0 | 5.8 | 5.2 | 4.9 | |||||||||||||||
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Total nonperforming assets |
$ | 106.8 | $ | 112.3 | $ | 90.3 | $ | 87.1 | $ | 76.9 | ||||||||||
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Reserve for unfunded commitments |
$ | 25.6 | $ | 25.6 | $ | 25.6 | $ | 25.6 | $ | 36.9 |
Capital
Total stockholders’ equity at the end of the second quarter of 2024 was $3.5 billion, compared to $3.4 billion at the end of the second quarter of 2023. On a linked quarter basis, total stockholders’ equity increased $19.7 million, primarily as a result of a $14.4 million increase in retained earnings. Book value per share at the end of the second quarter of 2024 was $27.56, compared to $27.42 at the end of the first quarter of 2024 and $26.59 at the end of the second quarter of 2023. Tangible book value per share1 at the end of the second quarter of 2024 was $16.20, compared to $16.02 at the end of the first quarter of 2024 and $15.17 at the end of the second quarter of 2023.
Stockholders’ equity as a percentage of total assets at June 30, 2024, was 12.6 percent, relatively unchanged from first quarter of 2024 levels and up from 12.0 percent reported at the end of the second quarter of 2023. Tangible common equity as a percentage of tangible assets1 was 7.8 percent, relatively unchanged from first quarter of 2024 levels and up from 7.2 percent reported at the end of the second quarter of 2023. Each of the regulatory capital ratios for Simmons and its lead subsidiary, Simmons Bank, continue to significantly exceed “well-capitalized” guidelines.
Select Capital Ratios
2Q24 | 1Q24 | 4Q23 | 3Q23 | 2Q23 | ||||||||||||||||
Stockholders’ equity to total assets |
12.6 | % | 12.6 | % | 12.5 | % | 11.9 | % | 12.0 | % | ||||||||||
Tangible common equity to tangible assets1 |
7.8 | 7.8 | 7.7 | 7.1 | 7.2 | |||||||||||||||
Common equity tier 1 (CET1) ratio |
12.0 | 12.0 | 12.1 | 12.0 | 11.9 | |||||||||||||||
Tier 1 leverage ratio |
9.5 | 9.4 | 9.4 | 9.3 | 9.2 | |||||||||||||||
Tier 1 risk-based capital ratio |
12.0 | 12.0 | 12.1 | 12.0 | 11.9 | |||||||||||||||
Total risk-based capital ratio |
14.2 | 14.4 | 14.4 | 14.3 | 14.2 |
Cash Dividend and Share Repurchase Program
As a result of Simmons’ solid capital position and its ability to organically generate capital, the board of directors declared a quarterly cash dividend on Simmons’ Class A common stock of $0.21 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 October 1, 2024, to shareholders of record as of September 13, 2024. Simmons has paid cash dividends for 115 consecutive years, and 2024 represents the 13th consecutive year that Simmons has increased its dividend. According to research by Dividend Power, Simmons is one of only 26 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 July 1, 2024, Dividend Power research noted that Simmons is one of only 370 companies out of nearly 6,000 companies listed on the New York Stock Exchange and NASDAQ to achieve this distinction.
During the second quarter of 2024, Simmons did not repurchase shares under its stock repurchase program that was authorized in January 2024 (2024 Program), which replaced its former repurchase program that was authorized in January 2022. Remaining authorization under the 2024 Program as of June 30, 2024, was approximately $175 million. The timing, pricing and amount of any repurchases under the 2024 Program will be determined by Simmons’ management at its discretion based on a variety of factors including, but not limited to, market conditions, trading volume and market price of Simmons’ common stock, Simmons’ capital needs, Simmons’ working capital and investment requirements, other corporate considerations, economic conditions, and legal requirements. The 2024 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, Wednesday, July 24, 2024. 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 10190204. 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 115 consecutive years. Its principal subsidiary, Simmons Bank, operates 234 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 2024, Simmons Bank was recognized by U.S. News & World Report as one of the 2024-2025 Best Companies to Work For in the South and by Forbes as one of America’s Best-In-State Banks 2024 in Tennessee. 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. 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), gains and/or losses on sale of branches, net branch right-sizing initiatives, FDIC special assessment charges and gain/loss on the sale of AFS investment securities. The Company has updated its calculation of certain non-GAAP financial measures to exclude the impact of gains or losses on the sale of AFS investment securities in light of the impact of the Company’s strategic AFS investment securities transactions during the fourth quarter of 2023 and has presented past periods on a comparable basis.
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 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 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 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, changes in information technology affecting the financial industry, and 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 any indirect exposure related to the closings of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions 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 and from non-bank financial institutions; 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 acquisitions; increased delinquency and foreclosure rates on commercial real estate loans; 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, 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)
SFNC
Simmons First National Corporation
Consolidated End of Period Balance Sheets
For the Quarters Ended (Unaudited) |
Jun 30 2024 |
Mar 31 2024 |
Dec 31 2023 |
Sep 30 2023 |
Jun 30 2023 |
|||||||||||||||
($ in thousands) | ||||||||||||||||||||
ASSETS |
||||||||||||||||||||
Cash and noninterest bearing balances due from banks |
$ | 320,021 | $ | 380,324 | $ | 345,258 | $ | 181,822 | $ | 181,268 | ||||||||||
Interest bearing balances due from banks and federal funds sold |
254,312 | 222,979 | 268,834 | 423,826 | 564,644 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents |
574,333 | 603,303 | 614,092 | 605,648 | 745,912 | |||||||||||||||
Interest bearing balances due from banks - time |
100 | 100 | 100 | 100 | 545 | |||||||||||||||
Investment securities - held-to-maturity |
3,685,450 | 3,707,258 | 3,726,288 | 3,742,292 | 3,756,754 | |||||||||||||||
Investment securities - available-for-sale |
2,885,904 | 3,027,558 | 3,152,153 | 3,358,421 | 3,579,758 | |||||||||||||||
Mortgage loans held for sale |
13,053 | 11,899 | 9,373 | 11,690 | 10,342 | |||||||||||||||
Loans: |
||||||||||||||||||||
Loans |
17,192,437 | 17,001,760 | 16,845,670 | 16,771,888 | 16,833,653 | |||||||||||||||
Allowance for credit losses on loans |
(230,389 | ) | (227,367 | ) | (225,231 | ) | (218,547 | ) | (209,966 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loans |
16,962,048 | 16,774,393 | 16,620,439 | 16,553,341 | 16,623,687 | |||||||||||||||
Premises and equipment |
581,893 | 576,466 | 570,678 | 567,167 | 562,025 | |||||||||||||||
Foreclosed assets and other real estate owned |
2,209 | 3,511 | 4,073 | 3,809 | 3,909 | |||||||||||||||
Interest receivable |
126,625 | 122,781 | 122,430 | 110,361 | 103,431 | |||||||||||||||
Bank owned life insurance |
505,023 | 503,348 | 500,559 | 497,465 | 494,370 | |||||||||||||||
Goodwill |
1,320,799 | 1,320,799 | 1,320,799 | 1,320,799 | 1,320,799 | |||||||||||||||
Other intangible assets |
104,943 | 108,795 | 112,645 | 116,660 | 120,758 | |||||||||||||||
Other assets |
606,692 | 611,964 | 592,045 | 676,572 | 636,833 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 27,369,072 | $ | 27,372,175 | $ | 27,345,674 | $ | 27,564,325 | $ | 27,959,123 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Noninterest bearing transaction accounts |
$ | 4,624,186 | $ | 4,697,539 | $ | 4,800,880 | $ | 4,991,034 | $ | 5,264,962 | ||||||||||
Interest bearing transaction accounts and savings deposits |
10,925,179 | 11,071,762 | 10,997,425 | 10,571,807 | 10,866,078 | |||||||||||||||
Time deposits |
6,291,518 | 6,583,703 | 6,446,673 | 6,668,370 | 6,357,682 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total deposits |
21,840,883 | 22,353,004 | 22,244,978 | 22,231,211 | 22,488,722 | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase |
52,705 | 58,760 | 67,969 | 74,482 | 102,586 | |||||||||||||||
Other borrowings |
1,346,378 | 871,874 | 972,366 | 1,347,855 | 1,373,339 | |||||||||||||||
Subordinated notes and debentures |
366,217 | 366,179 | 366,141 | 366,103 | 366,065 | |||||||||||||||
Accrued interest and other liabilities |
304,020 | 283,232 | 267,732 | 259,119 | 272,085 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
23,910,203 | 23,933,049 | 23,919,186 | 24,278,770 | 24,602,797 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Stockholders’ equity: |
||||||||||||||||||||
Common stock |
1,255 | 1,254 | 1,252 | 1,251 | 1,262 | |||||||||||||||
Surplus |
2,506,469 | 2,503,673 | 2,499,930 | 2,497,874 | 2,516,398 | |||||||||||||||
Undivided profits |
1,356,626 | 1,342,215 | 1,329,681 | 1,330,810 | 1,308,654 | |||||||||||||||
Accumulated other comprehensive (loss) income |
(405,481 | ) | (408,016 | ) | (404,375 | ) | (544,380 | ) | (469,988 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total stockholders’ equity |
3,458,869 | 3,439,126 | 3,426,488 | 3,285,555 | 3,356,326 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and stockholders’ equity |
$ | 27,369,072 | $ | 27,372,175 | $ | 27,345,674 | $ | 27,564,325 | $ | 27,959,123 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Page 1
SFNC
Simmons First National Corporation
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||||||
INTEREST INCOME |
||||||||||||||||||||
Loans (including fees) |
$ | 270,937 | $ | 261,490 | $ | 261,505 | $ | 255,901 | $ | 244,292 | ||||||||||
Interest bearing balances due from banks and federal funds sold |
2,964 | 3,010 | 3,115 | 3,569 | 4,023 | |||||||||||||||
Investment securities |
55,050 | 58,001 | 58,755 | 50,638 | 48,751 | |||||||||||||||
Mortgage loans held for sale |
194 | 148 | 143 | 178 | 154 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL INTEREST INCOME |
329,145 | 322,649 | 323,518 | 310,286 | 297,220 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
INTEREST EXPENSE |
||||||||||||||||||||
Time deposits |
73,946 | 73,241 | 72,458 | 68,062 | 53,879 | |||||||||||||||
Other deposits |
79,087 | 78,692 | 71,412 | 65,095 | 54,485 | |||||||||||||||
Federal funds purchased and securities |
||||||||||||||||||||
sold under agreements to repurchase |
156 | 189 | 232 | 277 | 318 | |||||||||||||||
Other borrowings |
15,025 | 11,649 | 16,607 | 16,450 | 18,612 | |||||||||||||||
Subordinated notes and debentures |
7,026 | 6,972 | 7,181 | 6,969 | 6,696 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL INTEREST EXPENSE |
175,240 | 170,743 | 167,890 | 156,853 | 133,990 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NET INTEREST INCOME |
153,905 | 151,906 | 155,628 | 153,433 | 163,230 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
PROVISION FOR CREDIT LOSSES |
||||||||||||||||||||
Provision for credit losses on loans |
11,099 | 10,206 | 11,225 | 20,222 | 5,061 | |||||||||||||||
Provision for credit losses on unfunded commitments |
— | — | — | (11,300 | ) | (5,000 | ) | |||||||||||||
Provision for credit losses on investment securities - AFS |
— | — | (1,196 | ) | (1,200 | ) | (1,326 | ) | ||||||||||||
Provision for credit losses on investment securities - HTM |
— | — | — | — | 1,326 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL PROVISION FOR CREDIT LOSSES |
11,099 | 10,206 | 10,029 | 7,722 | 61 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NET INTEREST INCOME AFTER PROVISION |
||||||||||||||||||||
FOR CREDIT LOSSES |
142,806 | 141,700 | 145,599 | 145,711 | 163,169 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NONINTEREST INCOME |
||||||||||||||||||||
Service charges on deposit accounts |
12,252 | 11,955 | 12,782 | 12,429 | 12,882 | |||||||||||||||
Debit and credit card fees |
8,162 | 8,246 | 7,822 | 7,712 | 7,986 | |||||||||||||||
Wealth management fees |
8,274 | 7,478 | 7,679 | 7,719 | 7,440 | |||||||||||||||
Mortgage lending income |
1,973 | 2,320 | 1,603 | 2,157 | 2,403 | |||||||||||||||
Bank owned life insurance income |
3,876 | 3,814 | 3,094 | 3,095 | 2,555 | |||||||||||||||
Other service charges and fees (includes insurance income) |
2,352 | 2,199 | 2,346 | 2,232 | 2,262 | |||||||||||||||
Gain (loss) on sale of securities |
— | — | (20,218 | ) | — | (391 | ) | |||||||||||||
Other income |
6,410 | 7,172 | 6,866 | 7,433 | 9,843 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL NONINTEREST INCOME |
43,299 | 43,184 | 21,974 | 42,777 | 44,980 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NONINTEREST EXPENSE |
||||||||||||||||||||
Salaries and employee benefits |
70,716 | 72,653 | 66,982 | 67,374 | 74,723 | |||||||||||||||
Occupancy expense, net |
11,864 | 12,258 | 11,733 | 12,020 | 11,410 | |||||||||||||||
Furniture and equipment expense |
5,623 | 5,141 | 5,445 | 5,117 | 5,128 | |||||||||||||||
Other real estate and foreclosure expense |
117 | 179 | 189 | 228 | 289 | |||||||||||||||
Deposit insurance |
5,682 | 7,135 | 15,220 | 4,672 | 5,201 | |||||||||||||||
Merger-related costs |
— | — | — | 5 | 19 | |||||||||||||||
Other operating expenses |
45,352 | 42,513 | 48,570 | 42,582 | 42,926 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
TOTAL NONINTEREST EXPENSE |
139,354 | 139,879 | 148,139 | 131,998 | 139,696 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NET INCOME BEFORE INCOME TAXES |
46,751 | 45,005 | 19,434 | 56,490 | 68,453 | |||||||||||||||
Provision for income taxes |
5,988 | 6,134 | (4,473 | ) | 9,243 | 10,139 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
NET INCOME |
$ | 40,763 | $ | 38,871 | $ | 23,907 | $ | 47,247 | $ | 58,314 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
BASIC EARNINGS PER SHARE |
$ | 0.32 | $ | 0.31 | $ | 0.19 | $ | 0.38 | $ | 0.46 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
DILUTED EARNINGS PER SHARE |
$ | 0.32 | $ | 0.31 | $ | 0.19 | $ | 0.37 | $ | 0.46 | ||||||||||
|
|
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Page 2
SFNC
Simmons First National Corporation
Consolidated Risk-Based Capital
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Tier 1 capital | ||||||||||||||||||||
Stockholders’ equity |
$ | 3,458,869 | $ | 3,439,126 | $ | 3,426,488 | $ | 3,285,555 | $ | 3,356,326 | ||||||||||
CECL transition provision (1) |
30,873 | 30,873 | 61,746 | 61,746 | 61,746 | |||||||||||||||
Disallowed intangible assets, net of deferred tax |
(1,391,969 | ) | (1,394,672 | ) | (1,398,810 | ) | (1,402,682 | ) | (1,406,500 | ) | ||||||||||
Unrealized loss (gain) on AFS securities |
405,481 | 408,016 | 404,375 | 544,380 | 469,988 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Tier 1 capital |
2,503,254 | 2,483,343 | 2,493,799 | 2,488,999 | 2,481,560 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tier 2 capital | ||||||||||||||||||||
Subordinated notes and debentures |
366,217 | 366,179 | 366,141 | 366,103 | 366,065 | |||||||||||||||
Subordinated debt phase out |
(132,000 | ) | (66,000 | ) | (66,000 | ) | (66,000 | ) | (66,000 | ) | ||||||||||
Qualifying allowance for loan losses and reserve for unfunded commitments |
217,684 | 214,660 | 170,977 | 165,490 | 169,409 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Tier 2 capital |
451,901 | 514,839 | 471,118 | 465,593 | 469,474 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total risk-based capital |
$ | 2,955,155 | $ | 2,998,182 | $ | 2,964,917 | $ | 2,954,592 | $ | 2,951,034 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Risk weighted assets |
$ | 20,856,194 | $ | 20,782,094 | $ | 20,599,238 | $ | 20,703,669 | $ | 20,821,075 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted average assets for leverage ratio |
$ | 26,371,545 | $ | 26,312,873 | $ | 26,552,988 | $ | 26,733,658 | $ | 26,896,289 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios at end of quarter |
||||||||||||||||||||
Equity to assets |
12.64 | % | 12.56 | % | 12.53 | % | 11.92 | % | 12.00 | % | ||||||||||
Tangible common equity to tangible assets (2) |
7.84 | % | 7.75 | % | 7.69 | % | 7.07 | % | 7.22 | % | ||||||||||
Common equity Tier 1 ratio (CET1) |
12.00 | % | 11.95 | % | 12.11 | % | 12.02 | % | 11.92 | % | ||||||||||
Tier 1 leverage ratio |
9.49 | % | 9.44 | % | 9.39 | % | 9.31 | % | 9.23 | % | ||||||||||
Tier 1 risk-based capital ratio |
12.00 | % | 11.95 | % | 12.11 | % | 12.02 | % | 11.92 | % | ||||||||||
Total risk-based capital ratio |
14.17 | % | 14.43 | % | 14.39 | % | 14.27 | % | 14.17 | % |
(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. |
Page 3
SFNC
Simmons First National Corporation
Consolidated Investment Securities
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Investment Securities - End of Period |
||||||||||||||||||||
Held-to-Maturity |
||||||||||||||||||||
U.S. Government agencies |
$ | 454,488 | $ | 453,805 | $ | 453,121 | $ | 452,428 | $ | 451,737 | ||||||||||
Mortgage-backed securities |
1,119,741 | 1,142,352 | 1,161,694 | 1,178,324 | 1,193,118 | |||||||||||||||
State and political subdivisions |
1,857,409 | 1,855,642 | 1,856,674 | 1,857,652 | 1,859,022 | |||||||||||||||
Other securities |
253,812 | 255,459 | 254,799 | 253,888 | 252,877 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total held-to-maturity (net of credit losses) |
3,685,450 | 3,707,258 | 3,726,288 | 3,742,292 | 3,756,754 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Available-for-Sale |
||||||||||||||||||||
U.S. Treasury |
$ | 1,275 | $ | 1,964 | $ | 2,254 | $ | 2,224 | $ | 2,209 | ||||||||||
U.S. Government agencies |
66,563 | 69,801 | 72,502 | 172,759 | 176,564 | |||||||||||||||
Mortgage-backed securities |
1,730,842 | 1,845,364 | 1,940,307 | 2,157,092 | 2,282,328 | |||||||||||||||
State and political subdivisions |
864,190 | 874,849 | 902,793 | 790,344 | 885,505 | |||||||||||||||
Other securities |
223,034 | 235,580 | 234,297 | 236,002 | 233,152 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total available-for-sale (net of credit losses) |
2,885,904 | 3,027,558 | 3,152,153 | 3,358,421 | 3,579,758 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total investment securities (net of credit losses) |
$ | 6,571,354 | $ | 6,734,816 | $ | 6,878,441 | $ | 7,100,713 | $ | 7,336,512 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fair value - HTM investment securities |
$ | 3,005,524 | $ | 3,049,281 | $ | 3,135,370 | $ | 2,848,211 | $ | 3,094,958 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Page 4
SFNC
Simmons First National Corporation
Consolidated Loans
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Loan Portfolio - End of Period |
||||||||||||||||||||
Consumer: |
||||||||||||||||||||
Credit cards |
$ | 178,354 | $ | 182,742 | $ | 191,204 | $ | 191,550 | $ | 209,452 | ||||||||||
Other consumer |
130,278 | 124,531 | 127,462 | 112,832 | 148,333 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total consumer |
308,632 | 307,273 | 318,666 | 304,382 | 357,785 | |||||||||||||||
Real Estate: |
||||||||||||||||||||
Construction |
3,056,703 | 3,331,739 | 3,144,220 | 3,022,321 | 2,930,586 | |||||||||||||||
Single-family residential |
2,666,201 | 2,624,738 | 2,641,556 | 2,657,879 | 2,633,365 | |||||||||||||||
Other commercial real estate |
7,760,266 | 7,508,049 | 7,552,410 | 7,565,008 | 7,546,130 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total real estate |
13,483,170 | 13,464,526 | 13,338,186 | 13,245,208 | 13,110,081 | |||||||||||||||
Commercial: |
||||||||||||||||||||
Commercial |
2,484,474 | 2,499,311 | 2,490,176 | 2,477,077 | 2,569,330 | |||||||||||||||
Agricultural |
285,181 | 226,642 | 232,710 | 296,912 | 280,541 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total commercial |
2,769,655 | 2,725,953 | 2,722,886 | 2,773,989 | 2,849,871 | |||||||||||||||
Other |
630,980 | 504,008 | 465,932 | 448,309 | 515,916 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total loans |
$ | 17,192,437 | $ | 17,001,760 | $ | 16,845,670 | $ | 16,771,888 | $ | 16,833,653 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Page 5
SFNC
Simmons First National Corporation
Consolidated Allowance and Asset Quality
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Allowance for Credit Losses on Loans | ||||||||||||||||||||
Beginning balance |
$ | 227,367 | $ | 225,231 | $ | 218,547 | $ | 209,966 | $ | 206,557 | ||||||||||
Loans charged off: |
||||||||||||||||||||
Credit cards |
1,418 | 1,646 | 1,500 | 1,318 | 1,409 | |||||||||||||||
Other consumer |
550 | 732 | 767 | 633 | 666 | |||||||||||||||
Real estate |
123 | 2,857 | 1,023 | 9,723 | 435 | |||||||||||||||
Commercial |
7,243 | 4,593 | 3,105 | 1,219 | 1,225 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total loans charged off |
9,334 | 9,828 | 6,395 | 12,893 | 3,735 | |||||||||||||||
Recoveries of loans previously charged off: |
||||||||||||||||||||
Credit cards |
221 | 248 | 242 | 234 | 298 | |||||||||||||||
Other consumer |
509 | 333 | 518 | 344 | 436 | |||||||||||||||
Real estate |
72 | 735 | 785 | 429 | 878 | |||||||||||||||
Commercial |
455 | 442 | 309 | 245 | 471 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total recoveries |
1,257 | 1,758 | 1,854 | 1,252 | 2,083 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loans charged off |
8,077 | 8,070 | 4,541 | 11,641 | 1,652 | |||||||||||||||
Provision for credit losses on loans |
11,099 | 10,206 | 11,225 | 20,222 | 5,061 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, end of quarter |
$ | 230,389 | $ | 227,367 | $ | 225,231 | $ | 218,547 | $ | 209,966 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonperforming loans: |
||||||||||||||||||||
Nonaccrual loans |
$ | 102,891 | $ | 105,788 | $ | 83,325 | $ | 81,135 | $ | 71,279 | ||||||||||
Loans past due 90 days or more |
558 | 1,527 | 1,147 | 806 | 738 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming loans |
103,449 | 107,315 | 84,472 | 81,941 | 72,017 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other nonperforming assets: |
||||||||||||||||||||
Foreclosed assets and other real estate owned |
2,209 | 3,511 | 4,073 | 3,809 | 3,909 | |||||||||||||||
Other nonperforming assets |
1,167 | 1,491 | 1,726 | 1,417 | 1,013 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other nonperforming assets |
3,376 | 5,002 | 5,799 | 5,226 | 4,922 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming assets |
$ | 106,825 | $ | 112,317 | $ | 90,271 | $ | 87,167 | $ | 76,939 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios | ||||||||||||||||||||
Allowance for credit losses on loans to total loans |
1.34 | % | 1.34 | % | 1.34 | % | 1.30 | % | 1.25 | % | ||||||||||
Allowance for credit losses to nonperforming loans |
223 | % | 212 | % | 267 | % | 267 | % | 292 | % | ||||||||||
Nonperforming loans to total loans |
0.60 | % | 0.63 | % | 0.50 | % | 0.49 | % | 0.43 | % | ||||||||||
Nonperforming assets to total assets |
0.39 | % | 0.41 | % | 0.33 | % | 0.32 | % | 0.28 | % | ||||||||||
Annualized net charge offs to average loans (QTD) |
0.19 | % | 0.19 | % | 0.11 | % | 0.28 | % | 0.04 | % | ||||||||||
Annualized net charge offs to average loans (YTD) |
0.19 | % | 0.19 | % | 0.12 | % | 0.12 | % | 0.04 | % | ||||||||||
Annualized net credit card charge offs to average credit card loans (QTD) |
2.50 | % | 2.88 | % | 2.49 | % | 2.19 | % | 2.25 | % |
Page 6
SFNC
Simmons First National Corporation
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended | ||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||
Three Months Ended Jun 2024 |
Three Months Ended Mar 2024 |
Three Months Ended Jun 2023 |
||||||||||||||||||||||||||||||||||
($ 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 |
$ | 214,777 | $ | 2,964 | 5.55 | % | $ | 211,121 | $ | 3,010 | 5.73 | % | $ | 404,639 | $ | 4,023 | 3.99 | % | ||||||||||||||||||
Investment securities - taxable |
4,035,508 | 39,283 | 3.92 | % | 4,162,455 | 42,198 | 4.08 | % | 4,821,231 | 32,745 | 2.72 | % | ||||||||||||||||||||||||
Investment securities - non-taxable (FTE) |
2,597,005 | 21,429 | 3.32 | % | 2,635,368 | 21,301 | 3.25 | % | 2,627,192 | 21,253 | 3.24 | % | ||||||||||||||||||||||||
Mortgage loans held for sale |
10,328 | 194 | 7.55 | % | 9,048 | 148 | 6.58 | % | 9,560 | 154 | 6.46 | % | ||||||||||||||||||||||||
Loans - including fees (FTE) |
17,101,799 | 271,851 | 6.39 | % | 16,900,496 | 262,414 | 6.24 | % | 16,702,403 | 245,151 | 5.89 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total interest earning assets (FTE) |
23,959,417 | 335,721 | 5.64 | % | 23,918,488 | 329,071 | 5.53 | % | 24,565,025 | 303,326 | 4.95 | % | ||||||||||||||||||||||||
Non-earning assets |
3,345,860 | 3,340,911 | 3,201,114 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total assets |
$ | 27,305,277 | $ | 27,259,399 | $ | 27,766,139 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|||||||||||||||||||||||||||||||||||
Interest bearing liabilities: |
||||||||||||||||||||||||||||||||||||
Interest bearing transaction and savings accounts |
$ | 10,973,462 | $ | 79,087 | 2.90 | % | $ | 11,132,396 | $ | 78,692 | 2.84 | % | $ | 11,011,746 | $ | 54,485 | 1.98 | % | ||||||||||||||||||
Time deposits |
6,447,259 | 73,946 | 4.61 | % | 6,448,014 | 73,241 | 4.57 | % | 5,911,139 | 53,879 | 3.66 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total interest bearing deposits |
17,420,721 | 153,033 | 3.53 | % | 17,580,410 | 151,933 | 3.48 | % | 16,922,885 | 108,364 | 2.57 | % | ||||||||||||||||||||||||
Federal funds purchased and securities sold under agreement to repurchase |
50,558 | 156 | 1.24 | % | 54,160 | 189 | 1.40 | % | 119,985 | 318 | 1.06 | % | ||||||||||||||||||||||||
Other borrowings |
1,111,734 | 15,025 | 5.44 | % | 873,278 | 11,649 | 5.37 | % | 1,449,403 | 18,612 | 5.15 | % | ||||||||||||||||||||||||
Subordinated notes and debentures |
366,198 | 7,026 | 7.72 | % | 366,160 | 6,972 | 7.66 | % | 366,047 | 6,696 | 7.34 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total interest bearing liabilities |
18,949,211 | 175,240 | 3.72 | % | 18,874,008 | 170,743 | 3.64 | % | 18,858,320 | 133,990 | 2.85 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Noninterest bearing liabilities: |
||||||||||||||||||||||||||||||||||||
Noninterest bearing deposits |
4,624,819 | 4,654,179 | 5,276,267 | |||||||||||||||||||||||||||||||||
Other liabilities |
280,092 | 284,191 | 272,628 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total liabilities |
23,854,122 | 23,812,378 | 24,407,215 | |||||||||||||||||||||||||||||||||
Stockholders’ equity |
3,451,155 | 3,447,021 | 3,358,924 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity |
$ | 27,305,277 | $ | 27,259,399 | $ | 27,766,139 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net interest income (FTE) |
$ | 160,481 | $ | 158,328 | $ | 169,336 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net interest spread (FTE) |
1.92 | % | 1.89 | % | 2.10 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net interest margin (FTE) |
2.69 | % | 2.66 | % | 2.76 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
Page 7
SFNC
Simmons First National Corporation
Consolidated - Selected Financial Data
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
($ in thousands, except share data) | ||||||||||||||||||||
QUARTER-TO-DATE |
||||||||||||||||||||
Financial Highlights - As Reported |
||||||||||||||||||||
Net Income |
$ | 40,763 | $ | 38,871 | $ | 23,907 | $ | 47,247 | $ | 58,314 | ||||||||||
Diluted earnings per share |
0.32 | 0.31 | 0.19 | 0.37 | 0.46 | |||||||||||||||
Return on average assets |
0.60 | % | 0.57 | % | 0.35 | % | 0.68 | % | 0.84 | % | ||||||||||
Return on average common equity |
4.75 | % | 4.54 | % | 2.84 | % | 5.56 | % | 6.96 | % | ||||||||||
Return on tangible common equity (non-GAAP) (1) |
8.67 | % | 8.33 | % | 5.61 | % | 10.33 | % | 12.85 | % | ||||||||||
Net interest margin (FTE) |
2.69 | % | 2.66 | % | 2.68 | % | 2.61 | % | 2.76 | % | ||||||||||
Efficiency ratio (2) |
68.38 | % | 69.41 | % | 80.46 | % | 65.11 | % | 65.18 | % | ||||||||||
FTE adjustment |
6,576 | 6,422 | 6,511 | 6,515 | 6,106 | |||||||||||||||
Average diluted shares outstanding |
125,758,166 | 125,661,950 | 125,609,265 | 126,283,609 | 127,379,976 | |||||||||||||||
Shares repurchased under plan |
— | — | — | 1,128,962 | 1,128,087 | |||||||||||||||
Average price of shares repurchased |
— | — | — | 17.69 | 17.75 | |||||||||||||||
Cash dividends declared per common share |
0.210 | 0.210 | 0.200 | 0.200 | 0.200 | |||||||||||||||
Accretable yield on acquired loans |
1,569 | 1,123 | 1,762 | 2,146 | 2,267 | |||||||||||||||
Financial Highlights - Adjusted (non-GAAP) (1) |
||||||||||||||||||||
Adjusted earnings |
$ | 41,897 | $ | 40,351 | $ | 50,215 | $ | 48,804 | $ | 61,354 | ||||||||||
Adjusted diluted earnings per share |
0.33 | 0.32 | 0.40 | 0.39 | 0.48 | |||||||||||||||
Adjusted return on average assets |
0.62 | % | 0.60 | % | 0.73 | % | 0.70 | % | 0.89 | % | ||||||||||
Adjusted return on average common equity |
4.88 | % | 4.71 | % | 5.97 | % | 5.74 | % | 7.33 | % | ||||||||||
Adjusted return on tangible common equity |
8.89 | % | 8.62 | % | 11.10 | % | 10.64 | % | 13.48 | % | ||||||||||
Adjusted efficiency ratio (2) |
65.68 | % | 66.42 | % | 62.91 | % | 61.94 | % | 61.29 | % | ||||||||||
YEAR-TO-DATE |
||||||||||||||||||||
Financial Highlights - GAAP |
||||||||||||||||||||
Net Income |
$ | 79,634 | $ | 38,871 | $ | 175,057 | $ | 151,150 | $ | 103,903 | ||||||||||
Diluted earnings per share |
0.63 | 0.31 | 1.38 | 1.19 | 0.82 | |||||||||||||||
Return on average assets |
0.59 | % | 0.57 | % | 0.64 | % | 0.73 | % | 0.76 | % | ||||||||||
Return on average common equity |
4.64 | % | 4.54 | % | 5.21 | % | 6.00 | % | 6.23 | % | ||||||||||
Return on tangible common equity (non-GAAP) (1) |
8.50 | % | 8.33 | % | 9.76 | % | 11.14 | % | 11.55 | % | ||||||||||
Net interest margin (FTE) |
2.68 | % | 2.66 | % | 2.78 | % | 2.82 | % | 2.92 | % | ||||||||||
Efficiency ratio (2) |
68.90 | % | 69.41 | % | 67.75 | % | 64.13 | % | 63.68 | % | ||||||||||
FTE adjustment |
12,998 | 6,422 | 25,443 | 18,932 | 12,417 | |||||||||||||||
Average diluted shares outstanding |
125,693,536 | 125,661,950 | 126,775,704 | 127,099,727 | 127,421,034 | |||||||||||||||
Cash dividends declared per common share |
0.420 | 0.210 | 0.800 | 0.600 | 0.400 | |||||||||||||||
Financial Highlights - Adjusted (non-GAAP) (1) |
||||||||||||||||||||
Adjusted earnings |
$ | 82,248 | $ | 40,351 | $ | 207,716 | $ | 157,501 | $ | 108,697 | ||||||||||
Adjusted diluted earnings per share |
0.65 | 0.32 | 1.64 | 1.24 | 0.85 | |||||||||||||||
Adjusted return on average assets |
0.61 | % | 0.60 | % | 0.75 | % | 0.76 | % | 0.79 | % | ||||||||||
Adjusted return on average common equity |
4.80 | % | 4.71 | % | 6.18 | % | 6.25 | % | 6.51 | % | ||||||||||
Adjusted return on tangible common equity |
8.76 | % | 8.62 | % | 11.46 | % | 11.58 | % | 12.06 | % | ||||||||||
Adjusted efficiency ratio (2) |
66.05 | % | 66.42 | % | 61.32 | % | 60.81 | % | 60.30 | % | ||||||||||
END OF PERIOD |
||||||||||||||||||||
Book value per share |
$ | 27.56 | $ | 27.42 | $ | 27.37 | $ | 26.26 | $ | 26.59 | ||||||||||
Tangible book value per share |
16.20 | 16.02 | 15.92 | 14.77 | 15.17 | |||||||||||||||
Shares outstanding |
125,487,520 | 125,419,618 | 125,184,119 | 125,133,281 | 126,224,707 | |||||||||||||||
Full-time equivalent employees |
2,961 | 2,989 | 3,007 | 3,005 | 3,066 | |||||||||||||||
Total number of financial centers |
234 | 233 | 234 | 232 | 231 |
(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. |
Page 8
SFNC
Simmons First National Corporation
Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Quarter-to-Date
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
QUARTER-TO-DATE |
||||||||||||||||||||
Net income |
$ | 40,763 | $ | 38,871 | $ | 23,907 | $ | 47,247 | $ | 58,314 | ||||||||||
Certain items (non-GAAP) |
||||||||||||||||||||
FDIC Deposit Insurance special assessment |
283 | 1,549 | 10,521 | — | — | |||||||||||||||
Merger related costs |
— | — | — | 5 | 19 | |||||||||||||||
Early retirement program |
118 | 219 | 1,032 | 1,557 | 3,609 | |||||||||||||||
Termination of vendor and software services |
615 | — | — | — | — | |||||||||||||||
Loss (gain) on sale of securities |
— | — | 20,218 | — | 391 | |||||||||||||||
Branch right sizing (net) |
519 | 236 | 3,846 | 547 | 95 | |||||||||||||||
Tax effect of certain items (1) |
(401 | ) | (524 | ) | (9,309 | ) | (552 | ) | (1,074 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Certain items, net of tax |
1,134 | 1,480 | 26,308 | 1,557 | 3,040 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted earnings (non-GAAP) |
$ | 41,897 | $ | 40,351 | $ | 50,215 | $ | 48,804 | $ | 61,354 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted earnings per share |
$ | 0.32 | $ | 0.31 | $ | 0.19 | $ | 0.37 | $ | 0.46 | ||||||||||
Certain items (non-GAAP) |
||||||||||||||||||||
FDIC Deposit Insurance special assessment |
— | 0.01 | 0.08 | — | — | |||||||||||||||
Merger related costs |
— | — | — | — | — | |||||||||||||||
Early retirement program |
— | — | 0.01 | 0.01 | 0.03 | |||||||||||||||
Termination of vendor and software services |
0.01 | — | — | — | — | |||||||||||||||
Loss (gain) on sale of securities |
— | — | 0.16 | — | — | |||||||||||||||
Branch right sizing (net) |
— | — | 0.03 | 0.01 | — | |||||||||||||||
Tax effect of certain items (1) |
— | — | (0.07 | ) | — | (0.01 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Certain items, net of tax |
0.01 | 0.01 | 0.21 | 0.02 | 0.02 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted diluted earnings per share (non-GAAP) |
$ | 0.33 | $ | 0.32 | $ | 0.40 | $ | 0.39 | $ | 0.48 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(1) Effective tax rate of 26.135%. |
||||||||||||||||||||
Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP) | ||||||||||||||||||||
QUARTER-TO-DATE |
||||||||||||||||||||
Noninterest income |
$ | 43,299 | $ | 43,184 | $ | 21,974 | $ | 42,777 | $ | 44,980 | ||||||||||
Certain noninterest income items |
||||||||||||||||||||
Loss (gain) on sale of securities |
— | — | 20,218 | — | 391 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted noninterest income (non-GAAP) |
$ | 43,299 | $ | 43,184 | $ | 42,192 | $ | 42,777 | $ | 45,371 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest expense |
$ | 139,354 | $ | 139,879 | $ | 148,139 | $ | 131,998 | $ | 139,696 | ||||||||||
Certain noninterest expense items |
||||||||||||||||||||
Merger related costs |
— | — | — | (5 | ) | (19 | ) | |||||||||||||
Early retirement program |
(118 | ) | (219 | ) | (1,032 | ) | (1,557 | ) | (3,609 | ) | ||||||||||
FDIC Deposit Insurance special assessment |
(283 | ) | (1,549 | ) | (10,521 | ) | — | — | ||||||||||||
Termination of vendor and software services |
(615 | ) | — | — | — | — | ||||||||||||||
Branch right sizing expense |
(519 | ) | (236 | ) | (3,846 | ) | (547 | ) | (95 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted noninterest expense (non-GAAP) |
$ | 137,819 | $ | 137,875 | $ | 132,740 | $ | 129,889 | $ | 135,973 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries and employee benefits |
$ | 70,716 | $ | 72,653 | $ | 66,982 | $ | 67,374 | $ | 74,723 | ||||||||||
Certain salaries and employee benefits items Early retirement program |
(118 | ) | (219 | ) | (1,032 | ) | (1,557 | ) | (3,609 | ) | ||||||||||
Other |
1 | — | 2 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted salaries and employee benefits (non-GAAP) |
$ | 70,599 | $ | 72,434 | $ | 65,952 | $ | 65,817 | $ | 71,114 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other operating expenses |
$ | 45,352 | $ | 42,513 | $ | 48,570 | $ | 42,582 | $ | 42,926 | ||||||||||
Certain other operating expenses items |
||||||||||||||||||||
Termination of vendor and software services |
(615 | ) | — | — | — | — | ||||||||||||||
Branch right sizing expense |
(392 | ) | (83 | ) | (3,708 | ) | (466 | ) | 53 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted other operating expenses (non-GAAP) |
$ | 44,345 | $ | 42,430 | $ | 44,862 | $ | 42,116 | $ | 42,979 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Page 9
SFNC
Simmons First National Corporation
Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Year-to-Date
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
YEAR-TO-DATE |
||||||||||||||||||||
Net income |
$ | 79,634 | $ | 38,871 | $ | 175,057 | $ | 151,150 | $ | 103,903 | ||||||||||
Certain items (non-GAAP) |
||||||||||||||||||||
FDIC Deposit Insurance special assessment |
1,832 | 1,549 | 10,521 | — | — | |||||||||||||||
Merger related costs |
— | — | 1,420 | 1,420 | 1,415 | |||||||||||||||
Early retirement program |
337 | 219 | 6,198 | 5,166 | 3,609 | |||||||||||||||
Termination of vendor and software services |
615 | — | — | — | — | |||||||||||||||
Loss (gain) on sale of securities |
— | — | 20,609 | 391 | 391 | |||||||||||||||
Branch right sizing (net) |
755 | 236 | 5,467 | 1,621 | 1,074 | |||||||||||||||
Tax effect of certain items (1) |
(925 | ) | (524 | ) | (11,556 | ) | (2,247 | ) | (1,695 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Certain items, net of tax |
2,614 | 1,480 | 32,659 | 6,351 | 4,794 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted earnings (non-GAAP) |
$ | 82,248 | $ | 40,351 | $ | 207,716 | $ | 157,501 | $ | 108,697 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Diluted earnings per share |
$ | 0.63 | $ | 0.31 | $ | 1.38 | $ | 1.19 | $ | 0.82 | ||||||||||
Certain items (non-GAAP) |
||||||||||||||||||||
FDIC Deposit Insurance special assessment |
0.02 | 0.01 | 0.08 | — | — | |||||||||||||||
Merger related costs |
— | — | 0.01 | 0.01 | 0.01 | |||||||||||||||
Early retirement program |
— | — | 0.05 | 0.04 | 0.03 | |||||||||||||||
Termination of vendor and software services |
— | — | — | — | — | |||||||||||||||
Loss (gain) on sale of securities |
— | — | 0.17 | — | — | |||||||||||||||
Branch right sizing (net) |
0.01 | — | 0.04 | 0.02 | 0.01 | |||||||||||||||
Tax effect of certain items (1) |
(0.01 | ) | — | (0.09 | ) | (0.02 | ) | (0.02 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Certain items, net of tax |
0.02 | 0.01 | 0.26 | 0.05 | 0.03 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted diluted earnings per share (non-GAAP) |
$ | 0.65 | $ | 0.32 | $ | 1.64 | $ | 1.24 | $ | 0.85 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
(1) Effective tax rate of 26.135%. |
||||||||||||||||||||
Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP) | ||||||||||||||||||||
YEAR-TO-DATE |
||||||||||||||||||||
Noninterest income |
$ | 86,483 | $ | 43,184 | $ | 155,566 | $ | 133,592 | $ | 90,815 | ||||||||||
Certain noninterest income items |
||||||||||||||||||||
Loss (gain) on sale of securities |
— | — | 20,609 | 391 | 391 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted noninterest income (non-GAAP) |
$ | 86,483 | $ | 43,184 | $ | 176,175 | $ | 133,983 | $ | 91,206 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Noninterest expense |
$ | 279,233 | $ | 139,879 | $ | 563,061 | $ | 414,922 | $ | 282,924 | ||||||||||
Certain noninterest expense items |
||||||||||||||||||||
Merger related costs |
— | — | (1,420 | ) | (1,420 | ) | (1,415 | ) | ||||||||||||
Early retirement program |
(337 | ) | (219 | ) | (6,198 | ) | (5,166 | ) | (3,609 | ) | ||||||||||
FDIC Deposit Insurance special assessment |
(1,832 | ) | (1,549 | ) | (10,521 | ) | — | — | ||||||||||||
Termination of vendor and software services |
(615 | ) | — | — | — | — | ||||||||||||||
Branch right sizing expense |
(755 | ) | (236 | ) | (5,467 | ) | (1,621 | ) | (1,074 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted noninterest expense (non-GAAP) |
$ | 275,694 | $ | 137,875 | $ | 539,455 | $ | 406,715 | $ | 276,826 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries and employee benefits |
$ | 143,369 | $ | 72,653 | $ | 286,117 | $ | 219,135 | $ | 151,761 | ||||||||||
Certain salaries and employee benefits items Early retirement program |
(337 | ) | (219 | ) | (6,198 | ) | (5,166 | ) | (3,609 | ) | ||||||||||
Other |
1 | — | 2 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted salaries and employee benefits (non-GAAP) |
$ | 143,033 | $ | 72,434 | $ | 279,921 | $ | 213,969 | $ | 148,152 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merger related costs |
$ | — | $ | — | $ | 1,420 | $ | 1,420 | $ | 1,415 | ||||||||||
Adjustment for merger related costs |
— | — | (1,420 | ) | (1,420 | ) | (1,415 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted merger related costs (non-GAAP) |
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Other operating expenses |
$ | 87,865 | $ | 42,513 | $ | 177,164 | $ | 128,594 | $ | 86,012 | ||||||||||
Certain other operating expenses items |
||||||||||||||||||||
Termination of vendor and software services |
(615 | ) | — | — | — | — | ||||||||||||||
Branch right sizing expense |
(475 | ) | (83 | ) | (4,937 | ) | (1,229 | ) | (763 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted other operating expenses (non-GAAP) |
$ | 86,775 | $ | 42,430 | $ | 172,227 | $ | 127,365 | $ | 85,249 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Page 10
SFNC
Simmons First National Corporation
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
($ 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 |
$ | 3,458,869 | $ | 3,439,126 | $ | 3,426,488 | $ | 3,285,555 | $ | 3,356,326 | ||||||||||
Intangible assets: |
||||||||||||||||||||
Goodwill |
(1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | ||||||||||
Other intangible assets |
(104,943 | ) | (108,795 | ) | (112,645 | ) | (116,660 | ) | (120,758 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total intangibles |
(1,425,742 | ) | (1,429,594 | ) | (1,433,444 | ) | (1,437,459 | ) | (1,441,557 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tangible common stockholders’ equity |
$ | 2,033,127 | $ | 2,009,532 | $ | 1,993,044 | $ | 1,848,096 | $ | 1,914,769 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ | 27,369,072 | $ | 27,372,175 | $ | 27,345,674 | $ | 27,564,325 | $ | 27,959,123 | ||||||||||
Intangible assets: |
||||||||||||||||||||
Goodwill |
(1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | ||||||||||
Other intangible assets |
(104,943 | ) | (108,795 | ) | (112,645 | ) | (116,660 | ) | (120,758 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total intangibles |
(1,425,742 | ) | (1,429,594 | ) | (1,433,444 | ) | (1,437,459 | ) | (1,441,557 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tangible assets |
$ | 25,943,330 | $ | 25,942,581 | $ | 25,912,230 | $ | 26,126,866 | $ | 26,517,566 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratio of common equity to assets |
12.64 | % | 12.56 | % | 12.53 | % | 11.92 | % | 12.00 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratio of tangible common equity to tangible assets |
7.84 | % | 7.75 | % | 7.69 | % | 7.07 | % | 7.22 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Calculation of Tangible Book Value per Share |
||||||||||||||||||||
Total common stockholders’ equity |
$ | 3,458,869 | $ | 3,439,126 | $ | 3,426,488 | $ | 3,285,555 | $ | 3,356,326 | ||||||||||
Intangible assets: |
||||||||||||||||||||
Goodwill |
(1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | ||||||||||
Other intangible assets |
(104,943 | ) | (108,795 | ) | (112,645 | ) | (116,660 | ) | (120,758 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total intangibles |
(1,425,742 | ) | (1,429,594 | ) | (1,433,444 | ) | (1,437,459 | ) | (1,441,557 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tangible common stockholders’ equity |
$ | 2,033,127 | $ | 2,009,532 | $ | 1,993,044 | $ | 1,848,096 | $ | 1,914,769 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Shares of common stock outstanding |
125,487,520 | 125,419,618 | 125,184,119 | 125,133,281 | 126,224,707 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Book value per common share |
$ | 27.56 | $ | 27.42 | $ | 27.37 | $ | 26.26 | $ | 26.59 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Tangible book value per common share |
$ | 16.20 | $ | 16.02 | $ | 15.92 | $ | 14.77 | $ | 15.17 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Calculation of Coverage Ratio of Uninsured, Non-Collateralized Deposits |
|
|||||||||||||||||||
Uninsured deposits at Simmons Bank |
$ | 8,186,903 | $ | 8,413,514 | $ | 8,328,444 | $ | 8,143,200 | $ | 8,507,395 | ||||||||||
Less: Collateralized deposits (excluding portion that is FDIC insured) |
2,835,424 | 2,995,241 | 2,846,716 | 2,835,405 | 3,030,550 | |||||||||||||||
Less: Intercompany eliminations |
943,979 | 775,461 | 728,480 | 676,840 | 674,552 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total uninsured, non-collateralized deposits |
$ | 4,407,500 | $ | 4,642,812 | $ | 4,753,248 | $ | 4,630,955 | $ | 4,802,293 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
FHLB borrowing availability |
$ | 4,910,000 | $ | 5,326,000 | $ | 5,401,000 | $ | 5,372,000 | $ | 5,345,000 | ||||||||||
Unpledged securities |
4,145,000 | 4,122,000 | 3,817,000 | 4,124,000 | 3,877,000 | |||||||||||||||
Fed funds lines, Fed discount window and |
||||||||||||||||||||
Bank Term Funding Program (1) |
2,065,000 | 2,009,000 | 1,998,000 | 1,951,000 | 1,874,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Additional liquidity sources |
$ | 11,120,000 | $ | 11,457,000 | $ | 11,216,000 | $ | 11,447,000 | $ | 11,096,000 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Uninsured, non-collateralized deposit coverage ratio |
2.5 | 2.5 | 2.4 | 2.5 | 2.3 |
(1) | The Bank Term Funding Program closed for new loans on March 11, 2024. At no time did Simmons borrow funds under this program. |
Calculation of Net Charge Off Ratio |
||||||||
Net charge offs |
$ | 8,077 | $ | 8,070 | ||||
Less: Net charge offs from run-off portfolio (1) |
6,700 | 4,500 | ||||||
|
|
|
|
|||||
Net charge offs excluding run-off portfolio |
$ | 1,377 | $ | 3,570 | ||||
|
|
|
|
|||||
Average total loans |
$ | 17,101,799 | $ | 16,900,496 | ||||
|
|
|
|
|||||
Annualized net charge offs to average loans (NCO ratio) |
0.19 | % | 0.19 | % | ||||
|
|
|
|
|||||
NCO ratio, excluding net charge offs associated with run-off portfolio (annualized) |
0.03 | % | 0.08 | % | ||||
|
|
|
|
(1) | Run-off portfolio consists of asset based lending and small equipment finance portfolios obtained in acquisitions. |
Page 11
SFNC
Simmons First National Corporation
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Calculation of Adjusted Return on Average Assets |
||||||||||||||||||||
Net income |
$ | 40,763 | $ | 38,871 | $ | 23,907 | $ | 47,247 | $ | 58,314 | ||||||||||
Certain items (non-GAAP) |
||||||||||||||||||||
FDIC Deposit Insurance special assessment |
283 | 1,549 | 10,521 | — | — | |||||||||||||||
Merger related costs |
— | — | — | 5 | 19 | |||||||||||||||
Early retirement program |
118 | 219 | 1,032 | 1,557 | 3,609 | |||||||||||||||
Termination of vendor and software services |
615 | — | — | — | — | |||||||||||||||
Loss (gain) on sale of securities |
— | — | 20,218 | — | 391 | |||||||||||||||
Branch right sizing (net) |
519 | 236 | 3,846 | 547 | 95 | |||||||||||||||
Tax effect of certain items (2) |
(401 | ) | (524 | ) | (9,309 | ) | (552 | ) | (1,074 | ) | ||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted earnings (non-GAAP) |
$ | 41,897 | $ | 40,351 | $ | 50,215 | $ | 48,804 | $ | 61,354 | ||||||||||
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|
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|
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Average total assets |
$ | 27,305,277 | $ | 27,259,399 | $ | 27,370,811 | $ | 27,594,611 | $ | 27,766,139 | ||||||||||
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|||||||||||
Return on average assets |
0.60 | % | 0.57 | % | 0.35 | % | 0.68 | % | 0.84 | % | ||||||||||
Adjusted return on average assets (non-GAAP) |
0.62 | % | 0.60 | % | 0.73 | % | 0.70 | % | 0.89 | % | ||||||||||
Calculation of Return on Tangible Common Equity |
||||||||||||||||||||
Net income available to common stockholders |
$ | 40,763 | $ | 38,871 | $ | 23,907 | $ | 47,247 | $ | 58,314 | ||||||||||
Amortization of intangibles, net of taxes |
2,845 | 2,844 | 2,965 | 3,027 | 3,026 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total income available to common stockholders |
$ | 43,608 | $ | 41,715 | $ | 26,872 | $ | 50,274 | $ | 61,340 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Certain items (non-GAAP) |
||||||||||||||||||||
Gain on insurance settlement |
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
FDIC Deposit Insurance special assessment |
283 | 1,549 | 10,521 | — | — | |||||||||||||||
Merger related costs |
— | — | — | 5 | 19 | |||||||||||||||
Early retirement program |
118 | 219 | 1,032 | 1,557 | 3,609 | |||||||||||||||
Termination of vendor and software services |
615 | — | — | — | — | |||||||||||||||
Loss (gain) on sale of securities |
— | — | 20,218 | — | 391 | |||||||||||||||
Branch right sizing (net) |
519 | 236 | 3,846 | 547 | 95 | |||||||||||||||
Tax effect of certain items (2) |
(401 | ) | (524 | ) | (9,309 | ) | (552 | ) | (1,074 | ) | ||||||||||
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|
|||||||||||
Adjusted earnings (non-GAAP) |
41,897 | 40,351 | 50,215 | 48,804 | 61,354 | |||||||||||||||
Amortization of intangibles, net of taxes |
2,845 | 2,844 | 2,965 | 3,027 | 3,026 | |||||||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||
Total adjusted earnings available to common stockholders (non-GAAP) |
$ | 44,742 | $ | 43,195 | $ | 53,180 | $ | 51,831 | $ | 64,380 | ||||||||||
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|||||||||||
Average common stockholders’ equity |
$ | 3,451,155 | $ | 3,447,021 | $ | 3,336,247 | $ | 3,371,678 | $ | 3,358,924 | ||||||||||
Average intangible assets: |
||||||||||||||||||||
Goodwill |
(1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | (1,320,799 | ) | ||||||||||
Other intangibles |
(107,173 | ) | (111,023 | ) | (114,861 | ) | (119,125 | ) | (123,173 | ) | ||||||||||
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|
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|
|||||||||||
Total average intangibles |
(1,427,972 | ) | (1,431,822 | ) | (1,435,660 | ) | (1,439,924 | ) | (1,443,972 | ) | ||||||||||
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|||||||||||
Average tangible common stockholders’ equity (non-GAAP) |
$ | 2,023,183 | $ | 2,015,199 | $ | 1,900,587 | $ | 1,931,754 | $ | 1,914,952 | ||||||||||
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Return on average common equity |
4.75 | % | 4.54 | % | 2.84 | % | 5.56 | % | 6.96 | % | ||||||||||
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|||||||||||
Return on tangible common equity |
8.67 | % | 8.33 | % | 5.61 | % | 10.33 | % | 12.85 | % | ||||||||||
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|
|
|
|
|||||||||||
Adjusted return on average common equity (non-GAAP) |
4.88 | % | 4.71 | % | 5.97 | % | 5.74 | % | 7.33 | % | ||||||||||
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|
|
|
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|
|||||||||||
Adjusted return on tangible common equity (non-GAAP) |
8.89 | % | 8.62 | % | 11.10 | % | 10.64 | % | 13.48 | % | ||||||||||
|
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|
|||||||||||
Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1) |
||||||||||||||||||||
Noninterest expense (efficiency ratio numerator) |
$ | 139,354 | $ | 139,879 | $ | 148,139 | $ | 131,998 | $ | 139,696 | ||||||||||
Certain noninterest expense items (non-GAAP) |
||||||||||||||||||||
Merger related costs |
— | — | — | (5 | ) | (19 | ) | |||||||||||||
Early retirement program |
(118 | ) | (219 | ) | (1,032 | ) | (1,557 | ) | (3,609 | ) | ||||||||||
FDIC Deposit Insurance special assessment |
(283 | ) | (1,549 | ) | (10,521 | ) | — | — | ||||||||||||
Termination of vendor and software services |
(615 | ) | — | — | — | — | ||||||||||||||
Branch right sizing expense |
(519 | ) | (236 | ) | (3,846 | ) | (547 | ) | (95 | ) | ||||||||||
Other real estate and foreclosure expense adjustment |
(117 | ) | (179 | ) | (189 | ) | (228 | ) | (289 | ) | ||||||||||
Amortization of intangibles adjustment |
(3,852 | ) | (3,850 | ) | (4,015 | ) | (4,097 | ) | (4,098 | ) | ||||||||||
|
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|
|||||||||||
Adjusted efficiency ratio numerator |
$ | 133,850 | $ | 133,846 | $ | 128,536 | $ | 125,564 | $ | 131,586 | ||||||||||
|
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|
|
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|
|
|
|
|||||||||||
Net interest income |
$ | 153,905 | $ | 151,906 | $ | 155,628 | $ | 153,433 | $ | 163,230 | ||||||||||
Noninterest income |
43,299 | 43,184 | 21,974 | 42,777 | 44,980 | |||||||||||||||
Fully tax-equivalent adjustment (effective tax rate of 26.135%) |
6,576 | 6,422 | 6,511 | 6,515 | 6,106 | |||||||||||||||
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|
|||||||||||
Efficiency ratio denominator |
203,780 | 201,512 | 184,113 | 202,725 | 214,316 | |||||||||||||||
Certain noninterest income items (non-GAAP) |
||||||||||||||||||||
Branch right sizing income |
— | — | — | — | — | |||||||||||||||
(Gain) loss on sale of securities |
— | — | 20,218 | — | 391 | |||||||||||||||
|
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|
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|
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|
|||||||||||
Adjusted efficiency ratio denominator |
$ | 203,780 | $ | 201,512 | $ | 204,331 | $ | 202,725 | $ | 214,707 | ||||||||||
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|
|
|
|
|||||||||||
Efficiency ratio (1) |
68.38 | % | 69.41 | % | 80.46 | % | 65.11 | % | 65.18 | % | ||||||||||
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|
|
|
|
|
|
|
|
|||||||||||
Adjusted efficiency ratio (non-GAAP) (1) |
65.68 | % | 66.42 | % | 62.91 | % | 61.94 | % | 61.29 | % | ||||||||||
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|
|
|
|
(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 12
SFNC
Simmons First National Corporation
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Calculation of Total Revenue and Adjusted Total Revenue |
||||||||||||||||||||
Net interest income |
$ | 153,905 | $ | 151,906 | $ | 155,628 | $ | 153,433 | $ | 163,230 | ||||||||||
Noninterest income |
43,299 | 43,184 | 21,974 | 42,777 | 44,980 | |||||||||||||||
|
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|
|
|
|
|
|
|
|||||||||||
Total revenue |
197,204 | 195,090 | 177,602 | 196,210 | 208,210 | |||||||||||||||
Certain items, pre-tax (non-GAAP) |
||||||||||||||||||||
Less: Gain (loss) on sale of securities |
— | — | (20,218 | ) | — | (391 | ) | |||||||||||||
|
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|
|||||||||||
Adjusted total revenue |
$ | 197,204 | $ | 195,090 | $ | 197,820 | $ | 196,210 | $ | 208,601 | ||||||||||
|
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|
|
|
|
|
|
|
|||||||||||
Calculation of Pre-Provision Net Revenue (PPNR) |
||||||||||||||||||||
Net interest income |
$ | 153,905 | $ | 151,906 | $ | 155,628 | $ | 153,433 | $ | 163,230 | ||||||||||
Noninterest income |
43,299 | 43,184 | 21,974 | 42,777 | 44,980 | |||||||||||||||
|
|
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|
|
|
|
|
|
|
|||||||||||
Total revenue |
197,204 | 195,090 | 177,602 | 196,210 | 208,210 | |||||||||||||||
Less: Noninterest expense |
139,354 | 139,879 | 148,139 | 131,998 | 139,696 | |||||||||||||||
|
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|
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|
|
|
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|
|||||||||||
Pre-Provision Net Revenue (PPNR) |
$ | 57,850 | $ | 55,211 | $ | 29,463 | $ | 64,212 | $ | 68,514 | ||||||||||
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|
|
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|
|||||||||||
Calculation of Adjusted Pre-Provision Net Revenue |
||||||||||||||||||||
Pre-Provision Net Revenue (PPNR) |
$ | 57,850 | $ | 55,211 | $ | 29,463 | $ | 64,212 | $ | 68,514 | ||||||||||
Certain items, pre-tax (non-GAAP) |
||||||||||||||||||||
Plus: Loss (gain) on sale of securities |
— | — | 20,218 | — | 391 | |||||||||||||||
Plus: FDIC Deposit Insurance special assessment |
283 | 1,549 | 10,521 | — | — | |||||||||||||||
Plus: Merger related costs |
— | — | — | 5 | 19 | |||||||||||||||
Plus: Early retirement program costs |
118 | 219 | 1,032 | 1,557 | 3,609 | |||||||||||||||
Plus: Termination of vendor and software services |
615 | — | — | — | — | |||||||||||||||
Plus: Branch right sizing costs (net) |
519 | 236 | 3,846 | 547 | 95 | |||||||||||||||
|
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|
|||||||||||
Adjusted Pre-Provision Net Revenue |
$ | 59,385 | $ | 57,215 | $ | 65,080 | $ | 66,321 | $ | 72,628 | ||||||||||
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Page 13
SFNC
Simmons First National Corporation
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | |||||||||||||||
(Unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Calculation of Adjusted Return on Average Assets |
||||||||||||||||||||
Net income |
$ | 79,634 | $ | 38,871 | $ | 175,057 | $ | 151,150 | $ | 103,903 | ||||||||||
Certain items (non-GAAP) |
||||||||||||||||||||
FDIC Deposit Insurance special assessment |
1,832 | 1,549 | 10,521 | — | — | |||||||||||||||
Merger related costs |
— | — | 1,420 | 1,420 | 1,415 | |||||||||||||||
Early retirement program |
337 | 219 | 6,198 | 5,166 | 3,609 | |||||||||||||||
Termination of vendor and software services |
615 | — | — | — | — | |||||||||||||||
Loss (gain) on sale of securities |
— | — | 20,609 | 391 | 391 | |||||||||||||||
Branch right sizing (net) |
755 | 236 | 5,467 | 1,621 | 1,074 | |||||||||||||||
Tax effect of certain items (2) |
(925 | ) | (524 | ) | (11,556 | ) | (2,247 | ) | (1,695 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted earnings (non-GAAP) |
$ | 82,248 | $ | 40,351 | $ | 207,716 | $ | 157,501 | $ | 108,697 | ||||||||||
|
|
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|
|
|
|
|
|
|
|||||||||||
Average total assets |
$ | 27,282,338 | $ | 27,259,399 | $ | 27,554,859 | $ | 27,616,882 | $ | 27,628,202 | ||||||||||
|
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|
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|
|||||||||||
Return on average assets |
0.59 | % | 0.57 | % | 0.64 | % | 0.73 | % | 0.76 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted return on average assets (non-GAAP) |
0.61 | % | 0.60 | % | 0.75 | % | 0.76 | % | 0.79 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Calculation of Return on Tangible Common Equity |
||||||||||||||||||||
Net income available to common stockholders |
$ | 79,634 | $ | 38,871 | $ | 175,057 | $ | 151,150 | $ | 103,903 | ||||||||||
Amortization of intangibles, net of taxes |
5,689 | 2,844 | 12,044 | 9,079 | 6,052 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total income available to common stockholders |
$ | 85,323 | $ | 41,715 | $ | 187,101 | $ | 160,229 | $ | 109,955 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Certain items (non-GAAP) |
||||||||||||||||||||
FDIC Deposit Insurance special assessment |
$ | 1,832 | $ | 1,549 | $ | 10,521 | $ | — | $ | — | ||||||||||
Merger related costs |
— | — | 1,420 | 1,420 | 1,415 | |||||||||||||||
Early retirement program |
337 | 219 | 6,198 | 5,166 | 3,609 | |||||||||||||||
Termination of vendor and software services |
615 | — | — | — | — | |||||||||||||||
Loss (gain) on sale of securities |
— | — | 20,609 | 391 | 391 | |||||||||||||||
Branch right sizing (net) |
755 | 236 | 5,467 | 1,621 | 1,074 | |||||||||||||||
Tax effect of certain items (2) |
(925 | ) | (524 | ) | (11,556 | ) | (2,247 | ) | (1,695 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted earnings (non-GAAP) |
82,248 | 40,351 | 207,716 | 157,501 | 108,697 | |||||||||||||||
Amortization of intangibles, net of taxes |
5,689 | 2,844 | 12,044 | 9,079 | 6,052 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total adjusted earnings available to common stockholders (non-GAAP) |
$ | 87,937 | $ | 43,195 | $ | 219,760 | $ | 166,580 | $ | 114,749 | ||||||||||
|
|
|
|
|
|
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|
|
|
|||||||||||
Average common stockholders’ equity |
$ | 3,449,089 | $ | 3,447,021 | $ | 3,359,312 | $ | 3,367,088 | $ | 3,364,755 | ||||||||||
Average intangible assets: |
||||||||||||||||||||
Goodwill |
(1,320,799 | ) | (1,320,799 | ) | (1,320,510 | ) | (1,320,412 | ) | (1,320,215 | ) | ||||||||||
Other intangibles |
(109,098 | ) | (111,023 | ) | (121,098 | ) | (123,200 | ) | (125,272 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total average intangibles |
(1,429,897 | ) | (1,431,822 | ) | (1,441,608 | ) | (1,443,612 | ) | (1,445,487 | ) | ||||||||||
|
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|
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|
|||||||||||
Average tangible common stockholders’ equity (non-GAAP) |
$ | 2,019,192 | $ | 2,015,199 | $ | 1,917,704 | $ | 1,923,476 | $ | 1,919,268 | ||||||||||
|
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|
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|
|||||||||||
Return on average common equity |
4.64 | % | 4.54 | % | 5.21 | % | 6.00 | % | 6.23 | % | ||||||||||
|
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|
|||||||||||
Return on tangible common equity |
8.50 | % | 8.33 | % | 9.76 | % | 11.14 | % | 11.55 | % | ||||||||||
|
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|
|
|
|
|
|
|||||||||||
Adjusted return on average common equity (non-GAAP) |
4.80 | % | 4.71 | % | 6.18 | % | 6.25 | % | 6.51 | % | ||||||||||
|
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|
|
|
|
|
|
|
|||||||||||
Adjusted return on tangible common equity (non-GAAP) |
8.76 | % | 8.62 | % | 11.46 | % | 11.58 | % | 12.06 | % | ||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||
Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1) |
||||||||||||||||||||
Noninterest expense (efficiency ratio numerator) |
$ | 279,233 | $ | 139,879 | $ | 563,061 | $ | 414,922 | $ | 282,924 | ||||||||||
Certain noninterest expense items (non-GAAP) Merger related costs |
— | — | (1,420 | ) | (1,420 | ) | (1,415 | ) | ||||||||||||
Early retirement program |
(337 | ) | (219 | ) | (6,198 | ) | (5,166 | ) | (3,609 | ) | ||||||||||
FDIC Deposit Insurance special assessment |
(1,832 | ) | (1,549 | ) | (10,521 | ) | — | — | ||||||||||||
Termination of vendor and software services |
(615 | ) | — | — | — | — | ||||||||||||||
Branch right sizing expense |
(755 | ) | (236 | ) | (5,467 | ) | (1,621 | ) | (1,074 | ) | ||||||||||
Other real estate and foreclosure expense adjustment |
(296 | ) | (179 | ) | (892 | ) | (703 | ) | (475 | ) | ||||||||||
Amortization of intangibles adjustment |
(7,702 | ) | (3,850 | ) | (16,306 | ) | (12,291 | ) | (8,194 | ) | ||||||||||
|
|
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|
|
|
|
|
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|
|||||||||||
Adjusted efficiency ratio numerator |
$ | 267,696 | $ | 133,846 | $ | 522,257 | $ | 393,721 | $ | 268,157 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net interest income |
$ | 305,811 | $ | 151,906 | $ | 650,126 | $ | 494,498 | $ | 341,065 | ||||||||||
Noninterest income |
86,483 | 43,184 | 155,566 | 133,592 | 90,815 | |||||||||||||||
Fully tax-equivalent adjustment (effective tax rate of 26.135%) |
12,998 | 6,422 | 25,443 | 18,932 | 12,417 | |||||||||||||||
|
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|
|
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|
|
|
|||||||||||
Efficiency ratio denominator |
405,292 | 201,512 | 831,135 | 647,022 | 444,297 | |||||||||||||||
Certain noninterest income items (non-GAAP) Branch right sizing income |
— | — | — | — | — | |||||||||||||||
(Gain) loss on sale of securities |
— | — | 20,609 | 391 | 391 | |||||||||||||||
|
|
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|
|
|
|
|
|
|||||||||||
Adjusted efficiency ratio denominator |
$ | 405,292 | $ | 201,512 | $ | 851,744 | $ | 647,413 | $ | 444,688 | ||||||||||
|
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|
|
|
|
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|
|||||||||||
Efficiency ratio (1) |
68.90 | % | 69.41 | % | 67.75 | % | 64.13 | % | 63.68 | % | ||||||||||
|
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|
|
|
|
|
|
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Adjusted efficiency ratio (non-GAAP) (1) |
66.05 | % | 66.42 | % | 61.32 | % | 60.81 | % | 60.30 | % | ||||||||||
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(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
Exhibit 99.2
Exhibit 99.2 2nd Quarter 2024 Earnings Presentation Contents 3 Company Profile 4 2Q24 Financial Highlights 11 Deposits, Securities, Liquidity, Interest Rate Sensitivity and Capital 17 Loan Portfolio 23 Credit Quality 27 Appendix 1 Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements. Certain statements by Simmons First National Corporation (the “Company”, which where appropriate includes the Company’s wholly-owned banking subsidiary, Simmons Bank) contained in this presentation 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 may be identified by reference to a future period(s) or by the use of forward-looking terminology, such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “foresee,“ “indicate,” “plan,” “potential,” “project,” “target,” “may,” “might,” “will,” “would,” “could,“ “should,” “likely” or “intend,” future or conditional verb tenses, and variations or negatives of such terms or by similar expressions. These forward-looking statements include, without limitation, statements relating to the Company’s future growth; business strategies; product development; revenue; expenses (including interest expense and non-interest expenses); assets; loan demand (including loan growth, loan capacity, and other lending activity); deposit levels; asset quality; profitability; earnings; critical accounting policies; accretion; net interest margin; noninterest income; the Company’s common stock repurchase program; adequacy of the allowance for credit losses; income tax deductions; credit quality; level of credit losses from lending commitments; net interest revenue; interest rate sensitivity (including, among other things, the potential impact of rising rates); loan loss experience; liquidity; capital resources; future economic conditions and market risk; interest rates; the expected benefits, milestones, timelines, and costs associated with the Company’s merger and acquisition strategy and activity; the Company’s ability to recruit and retain key employees; increases in, and cash flows associated with, the Company’s securities portfolio; legal and regulatory limitations and compliance and competition; anticipated loan principal reductions; plans for investments in and cash flows from securities; estimated earn back periods; projections regarding securities investments and maturities thereof; estimates of future swap income set forth on slide 8; the interest rate sensitivity estimates and projections noted on slide 15; and dividends. Readers are cautioned not to place undue reliance on the forward-looking statements contained in this presentation in that actual results could differ materially from those indicated in or implied by such forward-looking statements due to a variety of factors. These factors include, but are not limited to, changes in the Company’s operating or expansion strategy; the availability of and costs associated with obtaining adequate and timely sources of liquidity; the ability to maintain credit quality; changes in general market and economic conditions; increased unemployment; labor shortages; possible adverse rulings, judgments, settlements and other outcomes of pending or future litigation; the ability of the Company to collect amounts due under loan agreements; changes in consumer preferences and loan demand; the effectiveness of the Company’s interest rate risk management strategies; laws and regulations affecting financial institutions in general or relating to taxes; the effect of pending or future legislation; the ability of the Company to repurchase its common stock on favorable terms; the ability of the Company to successfully manage and implement its acquisition strategy and integrate acquired institutions; difficulties and delays in integrating an acquired business or fully realizing cost savings and other benefits of mergers and acquisitions; changes in interest rates, deposit flows, real estate values, and capital markets; increased inflation; customer acceptance of the Company’s products and services; changes or disruptions in technology and IT systems (including cyber threats, attacks and events); changes in accounting principles relating to loan loss recognition (current expected credit losses, or CECL); the benefits associated with the Company’s early retirement program; 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; increased competition in the markets in which the Company operates and from non-bank financial institutions; changes in governmental policies; loss of key employees; the soundness of other financial institutions and any indirect exposure related to the closings of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships; increased delinquency and foreclosure rates on commercial real estate loans; and other risk factors. Other relevant risk factors may be detailed from time to time in the Company’s press releases and filings with the U.S. Securities and Exchange Commission, including, without limitation, the Company’s Form 10-K for the year ended December 31, 2023. In addition, there can be no guarantee that the board of directors (“Board”) of the Company 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. Any forward-looking statement speaks only as of the date of this presentation, and the Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this presentation. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. Non-GAAP Financial Measures. This presentation 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 and capital adequacy. 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), gains and/or losses on sale of branches, net branch right-sizing initiatives, FDIC special assessment charges and gain/loss on the sale of AFS investment securities. The Company has updated its calculation of certain non-GAAP financial measures to exclude the impact of gains or losses on the sale of AFS investment securities in light of the impact of the Company’s strategic AFS investment securities transactions during the fourth quarter of 2023, and has presented past periods on a comparable basis. 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, and presents certain other figures to include the effect that accumulated other comprehensive income could have on the Company’s capital levels . The Company further presents certain figures that are exclusive of the impact of 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, present the Company’s capital inclusive of the potential impact of AOCI (primarily comprised of unrealized losses on securities), as well as normalize for tax effects 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 appendix to this presentation. 2 Simmons First National Corporation A Mid-South based financial holding company serving our customers and the communities where we work and live since 1903 CONSECUTIVE YEARS 115 PAYING DIVIDENDS(3) 121 (YEARS)OF SERVICE 234 (FINANCIAL)CENTERS ACROSS SIX STATES Company Overview $27.4 $21.8 BILLION BILLION TOTAL ASSETS TOTAL DEPOSITS $8.4 $17.2 BILLION BILLION ASSETS UNDER TOTAL LOANS MANAGEMENT/ ADMINISTRATION 14.2% 7.8% TOTAL RBC TCE RATIO1 RATIO 4.5% 79% DIVIDEND YIELD2 LOAN TO DEPOSIT RATIO 1.34% 223% ACL TO TOTAL NPL COVERAGE LOANS RATIO Figures presented on this slide are as of June 30, 2024, unless otherwise noted 1 Non-GAAP measures that management believes aid in the discussion of results.
2Q24 Financial Highlights
4
See appendix for Non-GAAP reconciliation 2 Based on July 12, 2024, closing stock price of $18.81 and projected annualized dividend rate of $0.84 per share 3 The future payment of dividends is not guaranteed and is subject to various factors, including approval by the Company’s board of directors 2Q24 Highlights Second quarter results Average loans up 4% on a linked quarter annualized basis NIM at 2.69%, up 3 bps vs 1Q24 Pace of increase in deposit costs slowed as noninterest bearing deposit migration eased Credit quality remains sound Provision for credit losses on loans exceeded NCOs by $3.0 million 16 bps of net charge-offs associated with run-off portfolio3 ACL ratio unchanged at 1.34% Moody’s affirms credit ratings of both SFNC and Simmons Bank Named by U.S. News & World Report as one of the “Best Companies to Work for in the South” Recognized by Forbes as one of America’s Best-in-State Banks 2024 in Tennessee 1 Non-GAAP measures that management believes aid in the discussion of results. See Appendix for Non-GAAP reconciliation 2 All pre-provision net revenue (PPNR) figures set forth in this row are Non-GAAP measures. See footnote 1 for more information 3 “Run-off portfolio” consists of small ticket equipment finance and acquired asset based lending portfolios.
See pages 23, 24 and 27 for more information 5 Balance Sheet Highlights 2Q24 vs 1Q242Q24 vs 2Q23 $ in millions, except per share data 2Q24 1Q242Q23$ Change% Change$ Change% Change Period End Balances Total loans $17,192.4 $17,001.8$16,833.7$190.71%$358.82% Investment securities 6,571.4 6,734.87,336.5(163.5)(2)(765.2)(10) Total assets 27,369.1 27,372.227,959.1(3.1)-(590.1)(2) Total deposits 21,840.9 22,353.022,488.7(512.1)(2)(647.8)(3) Borrowed funds 1,765.3 1,296.81,842.0468.536(76.7)(4) Total stockholders’ equity 3,458.9 3,439.13,356.319.71102.53 Average Balances Total loans $17,101.8 $16,900.5$16,702.4$201.31%$399.42% Investment securities 6,632.5 6,797.87,448.4(165.3)(2)(815.9)(11) Total assets 27,305.3 27,259.427,766.145.9-(460.9)(2) Total deposits 22,045.5 22,234.622,199.2(189.0)(1)(153.6)(1) Borrowed funds 1,528.5 1,293.61,935.4234.918(406.9)(21) Total stockholders’ equity 3,451.2 3,447.03,358.94.1-92.23 Select Other Data Equity to assets 12.64 %12.56%12.00 % Tangible common equity to tangible assets 1 7.84 7.757.22 Book value per share $27.56 $27.42$26.59$0.141%$0.974% Tangible book value per share 1 16.20 16.0215.170.1811.037 Allowance for credit losses to total loans 1.34 %1.34%1.25% Nonperforming loan coverage ratio 223 212292 1 Non-GAAP measures that management believes aid in the discussion of results.
See appendix for Non-GAAP reconciliation 6 Income Summary 2Q24 Adjusted 2Q24 vs Adjusted $ in millions, except per share data Reported Adjusted11Q242Q23 Net interest income $153.9 $153.9$2.01%$ (9.3)(6)% Noninterest income 43.343.30.1-(2.1)(5) Total revenue 197.2 197.22.11(11.4)(5) Noninterest expense 139.4 137.8(0.1)-1.81 Pre-provision net revenue 2 57.959.42.24(13.2)(18) Provision for credit losses on loans 11.111.10.9911.0NM Provision for income taxes 6.06.4(0.3)(4)(4.8)(43) Earnings $40.8 $41.9$ 1.54%$(19.5)(32)% Diluted EPS $0.32 $0.33$0.013%$(0.15)(31)% Totals may not foot due to rounding NM – Not meaningful 1 Non-GAAP measures that management believes aid in the discussion of results. See appendix for Non-GAAP reconciliation 2 All pre-provision net revenue (PPNR) figures set forth in this row are Non-GAAP measures.
See footnote 1 for more information 7 Net Interest Income and Margin (FTE) Net Interest Income and Margin Net Interest Margin Evolution $ in millions; FTE FTE 2 bps 8 bps $169.3 (1) bp (4) bps2.69% $162.1 $159.9 $160.52.66%1 bp (3) bps $158.3 2Q23 3Q23 4Q231Q242Q241Q24EAEA EA Funding Funding Funding 2Q24 VolumeRateMixVolumeRateMix NIM 2.76% 2.61% 2.68%2.66%2.69% Select Yields/Rates Estimated Future Swap Income1 FTE (%) $ in millions; Based on Forward Fed Funds rates 6.08 6.20 6.246.39 5.89 Assumed Average Effective Fed Funds Rate 5.60 5.79 5.855.845.29%5.10%4.81%4.55%4.31% 5.31 3.67 3.763.68$10.5$10.2 2.91 3.08 $9.1 $8.5$8.0 2.58 2.752.79 1.96 2.37 2Q23 3Q23 4Q231Q242Q24 Loan Yield (FTE) Securities (FTE)3Q244Q241Q252Q253Q25 Cost of Deposits Other Borrowings FTE – Fully taxable equivalent using an effective tax rate of 26.135% EA – Earnings assets Totals may not foot due to rounding 1 Estimated swap income based on projected forward effective fed funds rates as of July 1, 2024. Does not include potential impact of hedge ineffectiveness that is recorded in interest income.
Under the terms of the swap agreement, the Company receives Effective Fed Funds rate and pays a fixed rate of approximately 1.21% 8 Noninterest Income 2Q24 Adjusted 2Q24 vs Adjusted $ in millions Reported Adjusted11Q242Q23 Service charges on deposit accounts $12.3 $12.3$ 0.32%$(0.6)(5)% Wealth management fees 8.38.30.8110.811 Debit and credit card fees 8.28.2(0.1)(1)0.22 Mortgage lending income 2.02.0(0.3)(15)(0.4)(18) Bank owned life insurance 3.93.90.121.352 Other service charges and fees 2.42.40.270.14 Other 6.46.4(0.8)(11)(3.4)(35) Total noninterest income $43.3 $43.3$ 0.1-%$(2.1)(5)% Highlights Adjusted noninterest income1 in 2Q24 up 1 percent annualized on a linked quarter basis Increase in wealth management fees and service charges on deposit accounts more than offsets decline in mortgage lending income and other noninterest income Year-over-year decease in “other” noninterest income primarily related to SBIC fair value adjustments and death benefits from bank owned life insurance recorded in 2Q23 Adjusted Total Revenue Per Employee Adjusted Noninterest IncomeAdjusted Total Revenue (FTE)1 to Adjusted Total Revenue1Per Diluted Share1 ($ in thousands) ($ in thousands) 21.8%21.8%22.1%22.0%$1.64$1.55$1.57$1.55$1.57 21.3% $68.0 $65.3 $65.8 $65.3$66.6 2Q23 3Q23 4Q231Q242Q242Q233Q234Q231Q242Q242Q233Q234Q231Q242Q24 Totals may not foot due to rounding FTE – Full-time equivalent 1 Non-GAAP measures that management believes aid in the discussion of results.
See appendix for Non-GAAP reconciliation 9 Noninterest Expense 2Q24 Adjusted 2Q24 vs Adjusted $ in millions Reported Adjusted11Q242Q23 Salaries and employee benefits $ 70.7 $ 70.6($1.8)(3)%$(0.5)(1)% Occupancy expense, net 11.9 11.7(0.4)(3)0.54 Furniture and equipment 5.6 5.60.590.510 Deposit insurance 5.4 5.4(0.2)(3)0.24 OREO and foreclosure expense 0.1 0.1(0.1)(35)(0.2)(60) FDIC special assessment 0.3 ----- Other 45.4 44.31.951.43 Total noninterest expense $139.4 $137.8($0.1)-%$ 1.81% Adjusted Noninterest Expense as a Adjusted Efficiency Ratio1 Employees (FTE)# of Financial Centers Percentage of Total Average Assets1 66.4%65.7% 61.9%62.9%3,066 2.03%2.03%61.3%3,0053,0072,9892,961234233234 1.96% 1.92%232 1.87% 231 2Q23 3Q23 4Q231Q242Q242Q233Q234Q231Q242Q242Q233Q234Q231Q242Q242Q233Q234Q231Q242Q24 Highlights Adjusted noninterest expense1 decreased from 1Q24 levels Adjusted 2Q24 noninterest expense as a percentage of average assets1 at 2.03 percent, unchanged from 1Q24 levels despite inflationary pressures Headcount down 3.4 percent vs a year ago Note: Numbers may not add due to rounding NM – not meaningful FTE – full-time equivalent 1 Non-GAAP measures that management believes aid in the discussion of results. See appendix for Non-GAAP reconciliation 10 Deposits, Securities, Liquidity, Interest Rate Sensitivity and Capital 11
Deposits Deposit Mix $ in billions (period end balances) $22.5 $22.2 $22.2$22.4$21.8 $3.2 $3.3 $2.9$3.0$2.9 $3.8 $4.1 $4.3$4.3$4.2 $10.2 $9.9 $10.3$10.3$10.1 $5.3 $5.0 $4.8$4.7$4.6 2Q23 3Q23 4Q231Q242Q24 Noninterest Bearing Interest Bearing Transactions Time DepositsBrokered Deposits Highlights Average deposits of $22.0 billion, down $189 million, or less than 1 percent Modest 4 bps increase in costs of deposits vs 17 bps increase in 1Q24 Linked quarter decrease in period end deposits primarily related to seasonality in public funds sector Noninterest bearing deposit migration eased in the quarter (2Q24 vs 1Q24) Period end balances decreased less than 2 percent Average balances decreased less than 1 percent Consumer checking households up on a year-to-date basis ~80% of deposits are FDIC insured or are collateralized deposits2 Linked Quarter Deposit Change1 $ in millions (period end balances) Total Deposits $(512) Noninterest Bearing Transaction Accounts $(72) Interest Bearing Transaction Accounts $(106) Time Deposits $(80) Public Funds $(169) Brokered Deposits (MM & CDs) $(85) Evolution of Funding Rates 51% deposit beta during this cycle3 5.26%5.33%5.33%5.33% 4.99% Interest Bearing Deposits 4.52% Cost of Deposits Avg Fed Funds Rate 3.65% 3.31%3.48%3.53% 3.06% 2.57% 2.20% 2.10% 1.41%2.58%2.75%2.79% 2.37% 0.65% 1.96% 1.58% 1.02% 0.47% 1Q22 2Q22 3Q224Q221Q232Q233Q234Q231Q242Q24 Source: Average Fed Funds rate based on data from www.macrotrends.net 1 Linked quarter growth is 2Q24 vs 1Q24. The categories titled “Noninterest Bearing Transaction Accounts,” “Interest Bearing Transaction Accounts” and “Time Deposits” exclude public funds and brokered deposits, which are each shown as separate categories 2 Non-GAAP measures that management believes aid in the discussion of results. See appendix for Non-GAAP reconciliation 3 Deposit beta calculated as change in cost of deposits from 1Q22 to 2Q24 divided by the change in quarterly average Federal Funds Effective rate for 1Q22 vs 2Q24 12 Securities Portfolio Securities Portfolio by Type At June 30, 2024 7% 8% Treasury/Agency States and Political Subdivisions 43% 42% MBS/CMO Corporate & Other Highlights Average securities to total earning assets of 27% at 6/30/24 compared to 39% at 12/31/21.
Continued focus on balance sheet optimization Continuing to utilize cash flows from securities portfolio to fund loan growth and/or paydown wholesale funding Evaluating targeted bond sales based on prevailing market conditions as part of overall balance sheet optimization strategy Securities Portfolio Bond Ratings2 $ in millions At June 30, 2024 HTM AFS U.S. Guaranteed/GSE $1,574 $1,799 Aaa/AAA 478312 Aa/AA 1,158 507 A 30084 Baa/BBB 158170 Not Rated 1714 Total $3,685 $2,886 Fair value $3,006 $2,886 Securities Portfolio Summary Yield (FTE)1 Effective Duration At June 30, 2024 HTM AFS HTMAFS Fixed Rate Municipal 3.27% 3.27%13.1813.50 MBS/CMO 3.02 1.415.964.48 Treasury/Agency 2.35 2.919.040.66 Corporate 4.11 6.014.571.49 Other 2.35 1.4519.693.42 Variable Rate - 5.63-- Total 3.13% 3.12%9.975.98 FTE – fully taxable equivalent using an effective tax rate of 26.135% Data presented on this slide is as of June 30, 2024, unless otherwise noted 1 Effective yield of securities portfolio at 6/30/24, excluding AOCI impact of HTM transfers made during Q2 22 2 Bond ratings reflect highest rating by Moody’s Investors Service, Inc., Standard & Poor’s or Fitch Ratings 13 Liquidity: Solid liquidity position and access to additional sources Cash and Cash Equivalents + Variable Rate Securities $ in millions $2,321 $1,910 $1,824 $1,572$1,578 $1,406 $1,301$1,245$1,145 2Q22 3Q22 4Q221Q232Q233Q234Q231Q242Q24 Cash & Cash Equivalents Variable Rate Securities Borrowed Funds as a Percent of Total Liabilities Period End Balances 12.7%12.6% 10.0%10.4% 8.9% 6.9% 7.4% 6.2% 5.9% 6.2%5.7%5.9% 5.0% 2012 2013 20142015201620172018201920202021202220232Q24 Loan to Deposit Ratio Peer Median1 73.7% 79.2% 83.0%83.7%84.4%85.2%85.0%85.6% 78.7% 68.6% 70.5% 71.6%73.7%74.9%75.4%75.7%76.1% 2Q22 3Q22 4Q221Q232Q233Q234Q231Q242Q24 Additional Liquidity Sources $ in millions FHLB borrowing availability $ 4,910 Unpledged securities 4,145 Fed Funds lines and Fed Discount Window 2,065 Total at 6.30.24 $11,120 Uninsured, non-collateralized deposits2 $4,408 Coverage ratio 2.5x 1 Source: S&P Global Market Intelligence.
Represents peer median loan to deposit ratio. Peer group includes ABCB, AUB, OZK, BOKF, CADE, CBSH, FBK, HWC, HTLF, HOMB, IBTX, ONB, PNFP, PB, RNST, SSB, SNV, TRMK, UMBF, UCBI 2 Uninsured, non-collateralized deposits represent uninsured deposits of Simmons Bank, less the uninsured portion of collateralized deposits, and deposit balances of SFNC subsidiaries.
See appendix for Non-GAAP reconciliation 14 Interest Rate Sensitivity: Attractively positioned for a lower interest rate environment Loan Portfolio – Repricing and Maturity At June 30, 2024 In millions Repricing TermRate Structure 3 mo 3-12 1-33-5Over 5 TotalVariableFixed or less mo yearsyears years RE—Construction 2,290.7 181.4381.6180.122.83,056.72,240.6816.1 RE—Commercial 2,191.6 690.62,905.11,170.5802.47,760.32,592.95,167.4 RE—Single-Family 442.1 223.0591.5490.3919.42,666.21,327.51,338.7 Commercial 1,330.0 160.7472.1384.7136.92,484.41,425.41,059.0 Consumer 220.0 13.547.617.310.3308.6213.395.4 Other1 524.9 31.263.060.5236.5916.2514.6401.6 Total 6,999.5 1,300.24,460.92,303.42,128.417,192.48,314.28,878.1 Weighted average rate 2 8.17% 5.76%4.80%5.85%4.56%6.30%7.61%5.15% CD Maturities (over the next 12 months) $ in millions Weighted Average Rates 4.64% 5.18% 4.46% 5.32% 3.89% 5.04%3.84% 5.17% $1,867.6 $1,143.9 $973.2 $534.9 $396.2 $375.5 $336.1 $217.2 3Q24 4Q24 1Q252Q25 Additional Interest Rate Sensitivity Factors ~$120 million of projected securities principal maturities per quarter3 ~$2.2 billion of projected cash flows from fixed rate loans at a weighted average rate of 5.60%3 ~$1.3 billion of FHLB advances maturing at a weighted average rate of 5.45%3 ~26% of interest bearing deposits are tied to index rates, principally Fed Funds target rate Balance Sheet Interest Rate Sensitivity Over the next 12 months (estimated) Immediate change in interest rates Estimated NII sensitivity given immediate, parallel shift in interest rates across the yield curve with a static balance sheet 1.55% 0.82% 0.48% D100 bps D50 bps D25 bps Gradual change in interest rates Estimated NII sensitivity given gradual, parallel shift in interest rates across the yield curve with a static balance sheet 0.42% 0.44% 0.40% D100 bps D50 bps D25 bps * Assumptions used in balance sheet interest rate sensitivity estimates under a gradual decrease in interest rates include the following rate cuts at the FOMC meetings: Down 25 bps – 25 bp decrease in September 2024 Down 50 bps – 25 bp decrease in September 2024 and December 30, 2024 Down 100 bps – 25 bp decrease in September 2024, December 2024. January 2025 and March 2025 Totals may not add due to rounding 1 Other includes agriculture, mortgage warehouse and other loans 2 Weighted average rates do not include mortgage warehouse and credit card portfolios 3 Projections over the next 12 months 15
Capital: Focused on maintaining a strong capital position and tangible book value per share Tier 1 Leverage Ratio1 CET 1 Capital Ratio1 Tier 1 Risk-Based Capital Ratio1 Total Risk-Based Capital Ratio1 9.23% 9.44% 9.49% 12.00% 11.95% 12.00% 14.43% 11.92% 11.95% 11.92% 14.17% 14.17% 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 WELL CAPITALIZED WELL CAPITALIZED WELL CAPITALIZED WELL CAPITALIZED 5.0% 6.5% 8.0% 10.0% Book Value Per Common Share1 Tangible Book Value Per Common Share 1,2 Capital Ratios (at 6/30/24) 4% +7% CET 1 Capital Ratio Total Risk-Based Capital Ratio $27.42 $27.56 $26.59 $16.02 $16.20 12.00% 14.17% $15.17 Equity to Assets Tangible Common Equity Ratio2 12.64% 7.84% Share Repurchase Program3 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 No shares were repurchased during the second quarter of 2024 $175M remaining authorization under January 2024 program 1 2Q24 data as of June 30, 2024, 1Q24 data as of March 31, 2024, and 2Q23 data as of June 30, 2023 2 Non-GAAP measures that management believes aid in the discussion of results. See Appendix for Non-GAAP reconciliation 16 3 Market conditions and our capital needs (among other things) will drive decisions regarding additional, future stock repurchases
Loan Portfolio
Loans: Well-diversified, granular portfolio and conservative credit culture Loan Portfolio Waterfall Linked Quarter Loan Growth $ in millions $ in millions Total Loans $190 RE – Commercial $252 RE – Construction $(275) Commercial1 $9 Funded loans Paydowns/ /advances payoffs RE – Single Family $41 Consumer & Other $12 Agricultural $58 Mortgage Warehouse $116 Total loans Total loans Run-Off Portfolio2 $(23) at 3/31/24 at 6/30/24 Unfunded Commitments Highlights $ in millions Well-diversified, granular portfolio with no significant industry or geographic concentrations $4,443 $4,049 $3,880 $3,875 Highly focused on maintaining conservative underwriting standards and structure $3,746 guidelines while emphasizing prudent pricing discipline 88% variable rate Minimal exposure to Shared National Credits (SNC) 65% tied to Prime 35% tied to SOFR SNCs totaled ~1% of total loans Additional banking relationships with all borrowers 2Q23 3Q23 4Q23 1Q24 2Q24 RE—Construction Commercial RE—Single Family RE—Commercial Agriculture Consumer/Other 1 Commercial loan growth excludes the impact of loans included in the run-off portfolio 2 “Run-off portfolio” consists of small ticket equipment finance and acquired asset based lending portfolios 18
Loans: Pipelines represent opportunities that meet pricing and disciplined credit appetite Commercial Loan Pipeline by Category $ in millions $1,122 Opportunity Proposal Ready to Close $1,048 $1,013 $1,002 $270 $948 $877 Highlights $381 $330 $504 Continued focus on maintaining prudent underwriting $689 $416 standards and pricing discipline $433 $121 $274 Rate on ready to close commercial loans1 at end of $147 2Q24 up 30 bps on a linked quarter basis $460 $189 $252 $167 Mortgage loan originations in 2Q24 $200 87% purchase $392 $292 $248 $244 $343 $485 13% refinance $551 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Rate Ready to 6.85% 7.32% 7.94% 8.43% 8.44% 8.38% 8.68% Close1 Mortgage Loan Volume $ in millions Mortgage Closed Loan Volume Mortgage Pipeline Volume $32 $21 $36 $25 $24 $29 $127 $152 $17 $106 $101 $111 $69 $78 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1 Rate ready to close represents the weighted average rate on commercial loans that are ready to close and does not include fees, including FAS 91 fees, associated with those commercial loans 19
Loans: Conservative LTVs underpin prudent underwriting standards in key sectors Loan Portfolio – Geographic diversification Office (non-owner occupied permanent) Key Statistics At 6/30/24 By State By State NPL Ratio2 0.78% 12% 2% Past Due 30+ Days 0.00% 18% 2% Average Loan Size $2.3M 33% 11% 46% 2% $0.8B Median Loan Size $0.5M Number of Loans <$1M 65% 5% 1 12% $16.7B Average LTV 47.7% 9% 15% Weighted Average LTV 54.6% Texas Arkansas Tennessee Missouri Oklahoma Kansas Other Multifamily (permanent) Key Statistics At 6/30/24 15% 18% By State 7% 5% NPL Ratio 0.01% Texas Arkansas Tennessee Missouri 37% 11% Past Due 30+ Days 0.00% Oklahoma Kansas Other Average Loan Size $2.3M 8% $0.7B Median Loan Size $0.6M % of Total % of Total Top 10 MSAs Number of Loans <$1M 68% Loans1 Commitments1 12% 20% Dallas-Plano-Irving 10.6% 10.6% Average LTV 53.6% Texas Arkansas Tennessee Missouri Oklahoma Kansas Other Houston-Sugarland-Baytown 9.0% 8.8% Weighted Average LTV 63.7% Memphis 5.7% 5.8% Retail (non-owner occupied permanent) Key Statistics At 6/30/24 Little Rock-North Little Rock-Conway 5.5% 5.7% By State Nashville-Davidson-Murfreesboro 5.2% 5.7% 15% NPL Ratio 0.51% Fort Worth-Arlington 4.7% 4.6% 1% Past Due 30+ Days 0.01% 6% 45% Average Loan Size $1.8M Fayetteville-Springdale-Rogers 3.2% 3.0% $1.0B Median Loan Size $0.9M 9% St. Louis 2.9% 2.6% Oklahoma City 2.3% 2.1% Number of Loans <$1M 52% 12% Jonesboro, AR 2.1% 2.1% Average LTV 48.6% 12% Weighted Average LTV 56.6% Texas Arkansas Tennessee Missouri Oklahoma Kansas Other Data shown above as of June 30, 2024 1 Total loans or commitments excluding credit card portfolio and mortgage warehouse 2 Represents a single, non-owner occupied real estate loan for a call center whose business was negatively impacted by Covid 20
Loans: Construction and Land Development Construction and Land Development (CLD) By State % of Total % of Total Key Statistics At 6/30/24 MSAs Loans Commitments NPL Ratio 0.07% Dallas-Plano-Irving 16.0% 14.6% 25% Past Due 30+ Days 0.01% Houston-Sugarland-Baytown 13.2% 12.1% 43% Average Loan Size $1.4M Nashville-Davidson-Murfreesboro 6.9% 8.3% Median Loan Size $0.3M $3.1B Fort Worth-Arlington 4.5% 4.9% Number of Loans <$1M 85% 4% Oklahoma City 3.4% 2.4% Average LTV 55.1% 4% Wichita 3.2% 2.3% 2% Weighted Average LTV 55.1% Memphis 3.1% 3.2% 13% 9% Corpus Christi 2.7% 2.2% Texas Arkansas Tennessee Missouri Little Rock-North Little Rock-Conway 2.7% 2.8% Oklahoma Kansas Other CLD—Multifamily CLD—Industrial Warehouse (non-owner occupied) By State By State Key Statistics At 6/30/24 Key Statistics At 6/30/24 16% NPL Ratio 0.00% Texas NPL Ratio 0.00% Texas 33% 24% Past Due 30+ Days 0.00% Past Due 30+ Days 0.00% Arkansas Arkansas 10% 43% Tennessee Average Loan Size $13.0M Tennessee Average Loan Size $15.4M $0.9B $0.6B 1% Kansas Median Loan Size $8.8M Missouri Median Loan Size $6.4M 10% Florida Number of Loans <$1M 33% 12% Number of Loans <$1M 34% Other Oklahoma 16% Average LTV 49.6% 3% Florida Average LTV 41.1% 5% Weighted Average LTV 54.7% 21% 6% Weighted Average LTV 45.0% Other Data shown above as of June 30, 2024 21
Loans: Loan portfolio by type and key credit metrics as of March 31, 2024 as of June 30, 2024 % of % of Unfunded Unfunded Balance Total Balance Total Past Due 30+ Days Classified Nonperforming Commitment ACL Commitment $ in millions $ Loans $ Loans $ $ $ $ % Reserve Total Loan Portfolio Credit Card 183 1% 178 1% 2 1 1—3.2% -Consumer – Other 124 1% 130 1% 1 1—29 2.2% 1.0% Real Estate – Construction 3,332 20% 3,057 18%—7 2 1,791 1.3% 1.2% Real Estate – Commercial 7,508 44% 7,760 45% 6 248 23 202 1.3% 0.4% Real Estate—Single-family 2,625 15% 2,666 15% 14 39 31 318 1.5% 0.6% Commercial 2,499 15% 2,485 14% 2 67 45 1,277 1.7% 0.1% Mortgage Warehouse 200 1% 316 2%— 0.2% -Agriculture 227 1% 285 2% 1 1 1 129 0.6% 0.2% Other 304 2% 315 2% 0.8% 1.1% Total Loan Portfolio 17,002 100% 17,192 100% 26 364 103 3,746 1.34% 0.7% Loan Concentration (Holding Company Level) C&D 111% 103% CRE 278% 277% Select Loan Categories Retail 1,264 7% 1,230 7%—8 5 91 1.0% 0.7% Nursing / Extended Care 283 2% 255 1% 1 101 — 8.4% 0.1% Healthcare 592 3% 602 4% 1 3 3 106 0.9% 0.2% Multifamily 1,532 9% 1,671 10%—13—630 0.9% 0.6% Hotel 678 4% 649 4% 1 65—114 2.5% 1.3% Restaurant 519 3% 541 3%—36 4 49 2.0% 0.4% NOO Office 892 5% 906 5%—13 7 73 2.1% 2.3% NOO Industrial Warehouse 1,692 10% 1,549 9%—1—330 0.2% 0.2% Run-Off Portfolio1 126 1% 103 1% 1 16 16 12 10.5% -% 1 “Run-off portfolio” consists of small ticket equipment finance and acquired asset based lending portfolios 22
Credit Quality
Credit Quality: Nonperforming and past due loans Nonperforming Loans Evolution Highlights $ in millions; FTE Decrease in nonperforming loans primarily driven by a $6 million decrease in run-off portfolio that included a $5 million charge-off related to a single, previously identified nonperforming credit “Run-off portfolio” consists of small ticket equipment finance and acquired asset based lending portfolios. Run-off portfolio totaled ~$103 million at end of 2Q24 Past due 30-89 days at 15 bps, down 4 bps from 1Q24 levels Moody’s affirmed their ratings on SFNC and Simmons Bank (June 6, 2024) 1Q24 RE—RE—Commercial Run-Off 2Q24 Commercial Construction (ex run-off Portfolio portfolio) Nonperforming Loans / Total Loans1 Nonperforming Assets / Total Assets1 Past Due 30-89 days / Total Loans1 Strategic decision to de-risk certain elements of the Annual Quarterly loan portfolio through planned exit of particular 0.29% acquired non-relationship credits Annual Quarterly 0.24% 0.24% 0.24% 0.96% 0.21% 0.19% 0.81% 0.83% 0.67% 0.15% 0.65% 0.63% 0.64% 0.64% 0.19% 0.18% 0.57% 0.60% 0.55% 0.50% 0.49% 0.50% 0.43% 0.41% 0.39% 0.37% 0.33% 0.33% 0.28% 0.32% 0.31% 0.11% 0.11% 0.23% 0.10% Annual Quarterly 2017 2018 2019 2020 2021 2022 2023 2Q23 3Q23 4Q23 1Q24 2Q24 2017 2018 2019 2020 2021 2022 2023 2Q23 3Q23 4Q23 1Q24 2Q24 2017 2018 2019 2020 2021 2022 2023 2Q23 3Q23 4Q23 1Q24 2Q24 Source: S&P Global Market Intelligence 2017 – 2023; Company Reports 1 As of December 31, for each respective year shown above; quarterly data as of the end of the quarter for each respective period 24
Credit Quality: Loan loss provision and net charge-offs Net Charge-Offs to Average Loans1 Highlights Annual Quarterly Provision for credit losses on loans exceeded net charge-offs by $3.0 million during 2Q24 0.45% NCO ratio of 19 bps in 2Q24; 16 bps associated with run-off portfolio 0.31% 0.24% 0.28% ACL to total loans ended 2Q24 at 1.34%, unchanged for the third consecutive quarter 0.21% 0.19% 0.19% 16 bps of NCO ratio associated 0.12% 0.11% 0.09% 0.04% with run-off portfolio 0.13% Loan Loss Provision and Net Charge-Offs 2017 2018 2019 2020 2021 2022 2023 2Q23 3Q23 4Q23 1Q24 2Q24 $ in millions $20.2 Credit Card Portfolio Net Charge-Off Ratio1 2.88% 2.49% 2.50% 2.15% 2.25% 2.19% 1.86% $11.6 $11.2 $11.1 1.64% 1.61% 1.60% $10.2 1.40% 1.44% $8.1 $8.1 Annual Quarterly $5.1 $6.7 million of $4.5 net charge-offs associated with 2017 2018 2019 2020 2021 2022 2023 2Q23 3Q23 4Q23 1Q24 2Q24 $1.7 run-off portfolio 2Q23 3Q23 4Q23 1Q24 2Q24 Key Credit Metrics: Average FICO Scores 752 Provision for credit losses on loans Net Charge-Offs Balance Weighted Average FICO Score 745 Line Utilization 18% Source: S&P Global Market Intelligence 2017 – 2023 1 Net charge-offs to average loans for the full-year for each respective year shown above; quarterly annualized data for each respective quarter 25
CL: Reflects current economic forecast and composition of loan portfolio ACL / Loans (%) and ACL ($)1 $ in millions Allowance for Credit Losses on Loans and Loan Coverage $250 1.85% 2.00% 1.52% 1.71% ACL / $225 1.80% ACL $200 1.60% Loans 1.34% 1.34% $ in millions 1.34% $175 1.22% 1.40% $150 1.20% ACL as of 3/31/23 $ 206.6 1.25% $125 1.00% $100 0.80% 2Q23 Provision 5.1 $75 0.60% 2Q23 Net Charge-Offs (1.6) $50 0.40% ACL as of 6/30/23 $ 210.0 1.25% $25 $220 $238 $205 $197 $225 $227 $230 0.20% $0 0.00% 3Q23 Provision 20.2 1/1/20 CECL 2020 2021 2022 2023 1Q24 2Q24 Adoption 3Q23 Net Charge-Offs (11.7) ACL as of 9/30/23 $ 218.5 1.30% ACL METHODOLOGY AS OF 6/30/24: Moody’s June 2024 scenarios with management’s weighting: 4Q23 Provision 11.2 Baseline (70%) / S1 (20%) / S3 (10%) 4Q23 Net Charge-Offs (4.5) Total credit coverage / total commitments: 1.22% ACL as of 12/31/23 $ 225.2 1.34% 1Q24 Provision 10.2 Reserve for Unfunded Commitments 1Q24 Net Charge-Offs (8.0) As of As of As of As of As of $ in millions 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 ACL as of 3/31/24 $ 227.4 1.34% Unfunded Commitments $4,443 $4,049 $3,880 $3,875 $3,746 2Q24 Provision 11.1 2Q24 Net Charge-Offs (8.1) Reserve for Unfunded Commitments $36.9 $25.6 $25.6 $25.6 $25.6 Provision for Unfunded Commitments $(5.0) $(11.3) ACL as of 6/30/24 $ 230.4 1.34% Reserve / Unfunded Balance 0.83% 0.63% 0.66% 0.66% 0.68% Note: Numbers may not add due to rounding ACL – Allowance for Credit Losses on Loans 1 As of December 31, for each respective year shown above; quarterly data as of the end of the quarter for each respective period 26
Appendix
Non-GAAP Reconciliations 2Q 3Q 4Q 1Q 2Q $ in thousands, except per share data 2023 2023 2023 2024 2024 Calculation of Adjusted Earnings Net Income $ 58,314 $ 47,247 $ 23,907 $ 38,871 $ 40,763 Certain items Merger related costs 19 5 Branch right sizing, net 95 547 3,846 236 519 Loss (gain) on sale of securities 391 20,218 Early retirement program 3,609 1,557 1,032 219 118 FDIC special assessment 10,521 1,549 283 Termination of vendor and software services 615 Tax effect ½¹ ¾ (1,074) (552) (9,309) (524) (401) Certain items, net of tax 3,040 1,557 26,308 1,480 1,134 Adjusted earnings (non-GAAP) $ 61,354 $ 48,804 $ 50,215 $ 40,351 $ 41,897 Calculation of Earnings and Adjusted Earnings per Diluted Share Earnings available to common shareholders $ 58,314 $ 47,247 $ 23,907 $ 38,871 $ 40,763 Diluted earnings per share $ 0.46 $ 0.37 $ 0.19 $ 0.31 $ 0.32 Adjusted earnings available to common shareholders (non-GAAP) $ 61,354 $ 48,804 $ 50,215 $ 40,351 $ 41,897 Adjusted diluted earnings per share (non-GAAP) $ 0.48 $ 0.39 $ 0.40 $ 0.32 $ 0.33 (1) Effective tax rate of 26.135% 28
Non-GAAP Reconciliations 2Q 3Q 4Q 1Q 2Q $ in thousands 2023 2023 2023 2024 2024 Calculation of Pre-Provision Net Revenue (PPNR) Net interest income $ 163,230 $ 153,433 $ 155,628 $ 151,906 $ 153,905 Noninterest income 44,980 42,777 21,974 43,184 43,299 Less: Noninterest expense 139,696 131,998 148,139 139,879 139,354 Pre-Provision Net Revenue (PPNR) (non-GAAP) $ 68,514 $ 64,212 $ 29,463 $ 55,211 $ 57,850 Calculation of Adjusted Pre-Provision Net Revenue Pre-Provision Net Revenue (PPNR) (non-GAAP) $ 68,514 $ 64,212 $ 29,463 $ 55,211 $ 57,850 Plus: (Gain) loss on sale of securities 391—20,218 —Plus: Merger related costs 19 5 — -Plus: Branch right sizing costs, net 95 547 3,846 236 519 Plus: FDIC special assessment — 10,521 1,549 283 Plus: Early retirement program 3,609 1,557 1,032 219 118 Plus: Termination of vendor and software services 615 Adjusted Pre-Provision Net Revenue (non-GAAP) $ 72,628 $ 66,321 $ 65,080 $ 57,215 $ 59,385 Calculation of Book Value and Tangible Book Value per Share Total common stockholders’ equity $ 3,356,326 $ 3,285,555 $ 3,426,488 $ 3,439,126 $ 3,458,869 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799) Other intangible assets (120,758) (116,660) (112,645) (108,795) (104,943) Total intangible assets (1,441,557) (1,437,459) (1,433,444) (1,429,594) (1,425,742) Tangible common stockholders’ equity (non-GAAP) $ 1,914,769 $ 1,848,096 $ 1,993,044 $ 2,009,532 $ 2,033,127 Shares of common stock outstanding 126,224,707 125,133,281 125,184,119 125,419,618 125,487,520 Book value per common share $ 26.59 $ 26.26 $ 27.37 $ 27.42 $ 27.56 Tangible book value per common share (non-GAAP) $ 15.17 $ 14.77 $ 15.92 $ 16.02 $ 16.20 29
Non-GAAP Reconciliations 2Q 3Q 4Q 1Q 2Q $ in thousands, except number of employees (FTE) 2023 2023 2023 2024 2024 Calculation of Total Revenue and Adjusted Total Revenue Net Interest Income (GAAP) $ 163,230 $ 153,433 $ 155,628 $ 151,906 $ 153,905 Noninterest Income (GAAP) 44,980 42,777 21,974 43,184 43,299 Total Revenue (non-GAAP) $ 208,210 $ 196,210 $ 177,602 $ 195,090 $ 197,204 Total Revenue (non-GAAP) $ 208,210 $ 196,210 $ 177,602 $ 195,090 $ 197,204 Less: Gain (loss) on sales of securities (391) (20,218) Adjusted Total Revenue (non-GAAP) $ 208,601 $ 196,210 $ 197,820 $ 195,090 $ 197,204 Employees (FTE) 3,066 3,005 3,007 2,989 2,961 Total Revenue per Employee (FTE) $ 67.91 $ 65.29 $ 59.06 $ 65.27 $ 66.60 Adjusted Total Revenue per Employee (FTE) $ 68.04 $ 65.29 $ 65.79 $ 65.27 $ 66.60 Calculation of Adjusted Noninterest Income Noninterest Income (GAAP) $ 44,980 $ 42,777 $ 21,974 $ 43,184 $ 43,299 Less: Gain (loss) on sale of securities (391) (20,218) — -Adjusted Noninterest Income (non-GAAP) $ 45,371 $ 42,777 $ 42,192 $ 43,184 $ 43,299 Calculation of Noninterest Income to Total Revenue Noninterest Income to Total Revenue 21.60% 21.80% 12.37% 22.14% 21.96% Adjusted Noninterest Income to Adjusted Total Revenue (non-GAAP) 21.75% 21.80% 21.33% 22.14% 21.96% Calculation of Total Revenue and Adjusted Revenue Per Share Average Diluted Shares Outstanding 127,379,976 126,283,609 125,609,265 125,661,950 125,758,166 Total Revenue per Average Diluted Shares Outstanding $ 1.63 $ 1.55 $ 1.41 $ 1.55 $ 1.57 Adjusted Revenue per Average Diluted Shares Outstanding (non-GAAP) $ 1.64 $ 1.55 $ 1.57 $ 1.55 $ 1.57 FTE – Full time equivalent 30
Non-GAAP Reconciliations 2Q 3Q 4Q 1Q 2Q $ in thousands 2023 2023 2023 2024 2024 Calculation of Adjusted Noninterest Expense Noninterest Expense (GAAP) $ 139,696 $ 131,998 $ 148,139 $ 139,879 $ 139,354 Less: Merger related costs 19 5 Less: Branch right sizing expense 95 547 3,846 236 519 Less: Early retirement program 3,609 1,557 1,032 219 118 Less: FDIC special assessment — 10,521 1,549 283 Less: Termination of vendor and software services 615 Adjusted Noninterest Expense (non-GAAP) $ 135,973 $ 129,889 $ 132,740 $ 137,875 $ 137,819 Calculation of Noninterest Expense to Average Assets Average total assets $ 27,766,139 $ 27,594,611 $ 27,370,811 $ 27,259,399 $ 27,305,277 Noninterest expense to average total assets 2.02% 1.90% 2.15% 2.06% 2.05% Adjusted noninterest expense to average assets (non-GAAP) 1.96% 1.87% 1.92% 2.03% 2.03% Calculation of Efficiency Ratio and Adjusted Efficiency Ratio Noninterest Expense (efficiency ratio numerator) $ 139,696 $ 131,998 $ 148,139 $ 139,879 $ 139,354 Total Revenue $ 208,210 $ 196,210 $ 177,602 $ 195,090 $ 197,204 Fully taxable equivalent adjustment 6,106 6,515 6,511 6,422 6,576 Efficiency ratio denominator $ 214,316 $ 202,725 $ 184,113 $ 201,512 $ 203,780 Efficiency ratio (based on GAAP figures) 65.18% 65.11% 80.46% 69.41% 68.38% Adjusted Noninterest Expense (non-GAAP) $ 135,973 $ 129,889 $ 132,740 $ 137,875 $ 137,819 Less: Other real estate and foreclosure expense 289 228 189 179 117 Less: Amortization of intangible assets 4,098 4,097 4,015 3,850 3,852 Adjusted efficiency ratio numerator (non-GAAP) $ 131,586 $ 125,564 $ 128,536 $ 133,846 $ 133,850 Adjusted Total Revenue (non-GAAP) (reconciliation shown on page 31) $ 208,601 $ 196,210 $ 197,820 $ 195,090 $ 197,204 Fully taxable equivalent adjustment 6,106 6,515 6,511 6,422 6,576 Adjusted efficiency ratio denominator non-GAAP) $ 214,707 $ 202,725 $ 204,331 $ 201,512 $ 203,780 Adjusted Efficiency Ratio (non-GAAP) 61.29% 61.94% 62.91% 66.42% 65.68% FTE – Full time equivalent Fully taxable equivalent adjustment using an effective tax rate of 26.135% 31
Non-GAAP Reconciliations 2Q 1Q 2Q $ in thousands 2023 2024 2024 Calculation of Adjusted Salaries and Employee Benefits Salaries and employee benefits (GAAP) $ 74,723 $ 72,653 $ 70,716 Less: Early retirement program 3,609 219 118 Plus: Other ____ _ — — 1 Total Adjusted Salaries and Employee Benefits (non-GAAP) $ 71,114 $ 72,434 $ 70,599 Calculation of Adjusted Deposit Insurance Deposit insurance (GAAP) $ 5,201 $ 7,135 $ 5,682 Less: FDIC special assessment ____ _ — 1,549 283 Total Adjusted Deposit Insurance (non-GAAP) $ 5,201 $ 5,586 $ 5,399 Calculation of Adjusted Occupancy Expense, Net Occupancy expense, net (GAAP) $ 11,410 $ 12,258 $ 11,864 Less: Branch right sizing expense ____ _ 143 145 125 Total Adjusted Occupancy Expense (non-GAAP) $ 11,267 $ 12,113 $ 11,739 Calculation of Adjusted Other Noninterest Expense Other noninterest expense (GAAP) $ 42,926 $ 42,513 $ 45,352 Less: Branch right sizing expense (53) 83 392 Less: Termination of vendor and software services ____ _ — — 615 Total Adjusted Other Noninterest Expense (non-GAAP) $ 42,979 $ 42,430 $ 44,345 Calculation of Adjusted Provision for Income Taxes Provision for income taxes (GAAP) $ 10,139 $ 6,134 $ 5,988 Less: Tax effect of certain items (non-GAAP) (reconciliation shown on page 28) (1,074) (524) (401) Adjusted provision for income taxes (non-GAAP) $ 11,213 $ 6,658 $ 6,389 Fully taxable equivalent adjustment using an effective tax rate of 26.135% 32
Non-GAAP Reconciliations 2Q 1Q 2Q $ in thousands 2023 2024 2024 Calculation of Tangible Common Equity (TCE) Total common stockholders’ equity $ 3,356,326 $ 3,439,126 $ 3,458,869 Total assets $ 27,959,123 $ 27,372,175 $ 27,369,072 Less: Intangible assets (1,441,557) (1,429,594) (1,425,742) Total tangible assets $ 26,517,566 $ 25,942,581 $ 25,943,330 Common equity to total assets 12.00% 12.56% 12.64% Tangible common equity to tangible common assets (non-GAAP) 7.22% 7.75% 7.84% Calculation of CET 1 Capital Ratio, Including the Impact of AOCI Total stockholders’ equity $ 3,356,326 $ 3,439,126 $ 3,458,869 CECL transition provision 61,746 30,873 30,873 Disallowed allowed intangible assets, net of deferred tax (1,406,500) (1,394,672) (1,391,969) Unrealized loss (gain) on available for sale securities (AOCI) ____ _ 469,988 ____ _ 408,016 ____ _ 405,481 Total tier 1 capital (CET 1) $ 2,481,560 $ 2,483,343 $ 2,503,254 Total tier 1 capital (CET 1) $ 2,481,560 $ 2,483,343 $ 2,503,254 Less: Unrealized loss (gain) on available for sale securities (AOCI) 469,988 408,016 405,481 Total tier 1 capital, including AOCI (non-GAAP) $ 2,011,572 $ 2,075,327 $ 2,097,773 Risk weighted assets $ 20,821,075 $ 20,782,094 $ 20,856,194 CET 1 capital ratio 11.92% 11.95% 12.00% CET 1 capital ratio, including AOCI 9.69% 9.99% 10.06% FTE—Fully taxable equivalent adjustment using an effective tax rate of 26.135% 33
Non-GAAP Reconciliations 2Q 1Q 2Q $ in thousands 2023 2024 2024 Calculation of Uninsured, Non-Collateralized Deposit Coverage Ratio Uninsured deposits at Simmons Bank $ 8,507,395 $ 8,413,514 $ 8,186,903 Less: Collateralized deposits (excluding portion that is FDIC insured) 3,030,550 2,995,241 2,835,424 Less: Intercompany eliminations ______674,552 ______775,461 ______943,979 Total uninsured, non-collateralized deposits $ 4,802,293 $ 4,642,812 $ 4,407,500 FHLB borrowing availability $ 5,345,000 $ 5,326,000 $ 4,910,000 Unpledged securities 3,877,000 4,122,000 4,145,000 Fed funds lines, Fed discount window and Bank Term Funding Program1 1,874,000 2,009,000 2,065,000 Additional liquidity sources $ 11,096,000 $ 11,457,000 $ 11,120,000 Uninsured, non-collateralized deposit coverage ratio 2.3x 2.5x 2.5x Calculation of Net Charge-Off Ratio Net charge-offs $ 8,077 Less: Net charge-offs from run-off portfolio ______ 6,700 Net charge offs excluding run-off portfolio $ 1,377 Average total loans $ 17,101,799 Net charge-offs as a percentage of average total loans (annualized) (NCO ratio) 0.19% NCO ratio excluding NCOs associated with run-off portfolios (annualized) 0.03% FTE—Fully taxable equivalent adjustment using an effective tax rate of 26.135% 1 The Bank Term Funding Program closed for new loans on March 11, 2024. At no time did Simmons borrow funds under this program. 34
Nasdaq: SFNC 2nd Quarter 2024 Earnings Presentation Contents 3 Company Profile 4 2Q24 Financial Highlights 11 Deposits, Securities, Liquidity, Interest Rate Sensitivity and Capital 17 Loan Portfolio 23 Credit Quality 27 Appendix