• Simmons First National Corporation Reports First Quarter 2022 Diluted EPS of $0.58

    ソース: Nasdaq GlobeNewswire / 28 4 2022 08:00:05   America/New_York

    Key Highlights in the First Quarter of 2022:

    • Net income of $65.1 million, or $0.58 on a fully diluted per share basis
    • Core earnings of $67.2 million, or $0.59 on a fully diluted per share basis
    • Newly funded loans and advances top $2.5 billion in the quarter, outpacing loan paydowns and payoffs
    • Commercial loan pipeline reaches $2.4 billion, marks 6th consecutive quarter of increased activity; unfunded commitments record second straight double-digit quarterly increase, rising to $3.4 billion
    • Total deposits increase to $19.4 billion while reflecting continued success in growth of low-cost deposits and effectively managing rates; cost of deposits drops to 14 bps, down 3 bps on a linked quarter basis
    • Continued improvement in credit quality metrics and economic scenarios drive provision benefit in the quarter; nonperforming loan ratio drops to 53 bps, NPL coverage ratio remains strong at 278 percent
    • Regulatory capital ratios remain significantly above “well-capitalized” guidelines; CET1 ratio ends the quarter at 13.52 percent, total risked-based capital ratio stands at 16.42 percent
    • Acquisition of Spirit of Texas Bancshares, Inc. closed shortly after quarter end, less than five months after announcement; systems conversion completed over two-day weekend, and branches opened on April 11 as Simmons Bank

    PINE BLUFF, Ark., April 28, 2022 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $65.1 million for the first quarter of 2022, compared to $67.4 million in the first quarter of 2021. Diluted earnings per share were $0.58 for the first quarter of 2022, compared to $0.62 for the first quarter of 2021. Included in first quarter 2022 results were $2.1 million in net after-tax merger related and net branch right-sizing costs, while first quarter 2021 results included a $3.4 million net after-tax benefit primarily associated with a gain on sale of branches in Illinois. Excluding the impact of these items, core earnings for the first quarter of 2022 were $67.2 million, compared to $64.0 million for the first quarter of 2021. Core diluted earnings per share were $0.59 for both the first quarter of 2022 and the first quarter of 2021.

    “Simmons posted solid results in the quarter driven by accelerating loan demand across our footprint and continued growth of low-cost deposits,” said George A. Makris, Jr., Simmons’ chairman and CEO. “We also delivered another quarter of exceptional credit performance, with nonperforming assets dropping to historically low levels. Equally important, we were able to achieve these results while simultaneously completing the acquisition and conversion of Spirit of Texas Bancshares, Inc. shortly after the end of the quarter. This acquisition more than doubles our size and scale in the Lone Star State, while complementing our existing presence in the Dallas-Fort Worth market and adding a platform for growth in Houston, Austin, San Antonio, Corpus Christi and College Station, as well as a number of other attractive community markets.”

    “While we are encouraged by our results to start the year, we also recognize the challenges ahead given expectations that interest rates are most likely to increase further during the remainder of 2022, the impact elevated inflation levels have on the cost of everyday goods and services, and the global unrest that adds uncertainty to the financial markets and potentially future economic growth. In times like this, it certainly helps to have strong capital and liquidity positions, a commitment to maintaining strong underwriting standards and a team that is focused on meeting challenges head-on, while working to ensure we provide our customers exceptional service and access to the products and services they need to successfully manage their financial needs.”  

    Selected Highlights:
    $ in millions, except per share data
    Q1 22Q4 21Q3 21Q2 21Q1 21
    Net income$65.1$48.2$80.6$74.9$67.4
    Diluted earnings per share$0.58$0.42$0.74$0.69$0.62
    Cash dividend per share$0.19$0.18$0.18$0.18$0.18
    Return on average assets1.06%0.77%1.37%1.29%1.20%
    Return on average common equity8.33%5.87%10.42%10.08%9.20%
    Return on tangible common equity (1)14.31%9.98%17.43%17.25%15.85%
          
    Core earnings (2)$67.2$59.5$79.4$75.4$64.0
    Core diluted earnings per share (2)$0.59$0.52$0.73$0.69$0.59
    Core return on average assets (2)1.10%0.96%1.35%1.30%1.14%
    Core return on average common equity (2)8.59%7.24%10.26%10.15%8.73%
    Core return on tangible common equity (1)(2)14.74%12.19%17.18%17.36%15.08%
    Efficiency ratio (3)62.95%59.48%58.10%56.75%57.25%
    Adjusted pre-tax, pre-provision earnings (2)$62.3$73.7$72.6$74.6$73.1

    (1)   Return on tangible common equity excludes goodwill and other intangible assets and is a non-GAAP measurement. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
    (2)   Core and adjusted figures exclude certain items and are non-GAAP measurements. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
    (3)   Efficiency ratio is a non-GAAP measurement. See “Reconciliation of Non-GAAP Financial Measures” below.

    Loans and Unfunded Loan Commitments
         
          
    $ in millionsQ1 22Q4 21Q3 21Q2 21Q1 21
    Total loans$12,029$12,013$10,825$11,386$12,196
          
    PPP loans$62$117$212$441$798
    Mortgage warehouse loans$166$230$275$307$355
    Energy loans$48$105$128$174$247
          
    Total loans, excluding PPP, mortgage warehouse, and energy loans (core loans)$11,753$11,561$10,210$10,464$10,796
          
    Unfunded loan commitments$3,428$2,943$2,254$2,130$2,039

    Total loans at the end of the first quarter of 2022 were $12.0 billion, compared to $12.0 billion at the end of the fourth quarter of 2021 and $12.2 billion at the end of the first quarter of 2021. While total loans were up slightly on a linked quarter basis, continued forgiveness of Paycheck Protection Program (PPP) loans, an industry-wide decline in mortgage warehouse loans due to changing market conditions and continued planned run-off in the energy portfolio offset overall loan growth. Excluding these items, core loans on a linked quarter annualized basis were up 7 percent. Equally important, newly funded loans and advances during the quarter totaled $2.5 billion, significantly outpacing loan paydowns and payoffs in the quarter.

    Further evidence suggesting a return to more normalized levels of loan demand continued to materialize during the quarter. Unfunded commitments – which the Company considers a strong indicator of potential future loan growth – rose for the fourth consecutive quarter to $3.4 billion at quarter end, up 16 percent on a linked quarter basis and following a 31 percent linked quarter increase in the fourth quarter of 2021. At the same time, momentum in our commercial loan pipeline continued to strengthen with all loan opportunities totaling $2.4 billion at the end of the quarter, up from $2.3 billion at the end of the fourth quarter of 2021. This marked the sixth consecutive quarter of increased activity in our commercial loan pipeline. As expected, loan growth was more heavily weighted toward the latter portion of the quarter, with commercial loans approved and ready to close at the end of the quarter totaling $775.7 million, up 25 percent compared to the balance at the end of the fourth quarter of 2021.

    Deposits
         
    $ in billionsQ1 22Q4 21Q3 21Q2 21Q1 21
    Total deposits$19.4$19.4$18.1$18.3$18.2
    Noninterest bearing deposits$5.2$5.3$4.9$4.9$4.9
    Interest bearing deposits$12.1$11.6$10.7$10.6$10.3
    Time deposits$2.1$2.5$2.5$2.8$3.0

    Total deposits at the end of the first quarter of 2022 were $19.4 billion, unchanged from fourth quarter 2021 levels and up $1.2 billion, or 7 percent, from $18.2 billion at the end of the first quarter of 2021. The increase in deposits from the year-ago quarter primarily reflects the acquisitions of Landmark Community Bank and Triumph Bancshares, Inc., which were completed in the fourth quarter of 2021. Total noninterest bearing deposit accounts totaled $5.2 billion at the end of the first quarter of 2022, compared to $5.3 billion at the end of the fourth quarter of 2021 and $4.9 billion at the end of the first quarter of 2021. Interest bearing deposits (checking, savings and money market accounts) totaled $12.1 billion at the end of the first quarter of 2022, up $517 million, or 4 percent, compared to $11.6 billion at the end of the fourth quarter of 2021, and up $1.8 billion, or 18 percent, compared to $10.3 billion at the end of the first quarter of 2021. At the same time, time deposits totaled $2.1 billion at the end of the first quarter of 2022, down $390 million, or 16 percent, compared to $2.5 billion at the end of the fourth quarter of 2021, and down $962 million, or 32 percent, from the first quarter of 2021. The decrease in time deposits is attributable to maturing time deposits, coupled with a continued effort to improve our mix of deposits into lower cost deposits.


    Net Interest Income
         
     Q1 22Q4 21Q3 21Q2 21Q1 21
    Loan yield (1)4.34%4.58%4.76%4.73%4.75%
    Security yield (1)1.86%1.74%1.77%1.97%2.36%
    Cost of interest bearing deposits0.19%0.23%0.27%0.32%0.41%
    Cost of deposits (2)0.14%0.17%0.20%0.24%0.30%
    Cost of borrowed funds1.94%1.95%1.96%1.97%1.91%
    Net interest spread (1)2.66%2.74%2.72%2.74%2.83%
    Net interest margin (1)2.76%2.86%2.85%2.89%2.99%

    (1)   Fully tax equivalent using an effective tax rate of 26.135%.
    (2)   Includes noninterest bearing deposits.

    Net interest income for the first quarter of 2022 totaled $145.6 million, compared to $153.1 million in the fourth quarter of 2021 and $146.7 million for the first quarter of 2021. Included in net interest income is interest income from PPP loans totaling $2.1 million in the first quarter of 2022, $5.1 million in the fourth quarter of 2021 and $11.7 million in the first quarter of 2021. Also included in net interest income is accretion recognized on loans acquired, which totaled $3.7 million in the first quarter of 2022, $5.8 million in the fourth quarter of 2021 and $6.6 million in the first quarter of 2021. The decrease in net interest income on a linked quarter and year-over-year basis reflects the lower contributions from accretion and PPP loans, a decrease in new loan yields compared to maturing or paid off loans and lower average loan balances, offset in part by our ability to continue to successfully reduce deposit costs.

    The yield on loans for the first quarter of 2022 was 4.34 percent, compared to 4.58 percent in the fourth quarter of 2021 and 4.75 percent in the first quarter of 2021. Cost of deposits for the first quarter of 2022 was 14 basis points, down 3 basis points on a linked quarter basis and down 16 basis points compared to the first quarter of 2021. Net interest margin on a fully taxable equivalent basis was 2.76 percent, compared to 2.86 percent in the fourth quarter of 2021 and 2.99 percent in the first quarter of 2021. Excluding the impact of PPP loan interest income, the net interest margin was 2.74 percent for the first quarter of 2022, 2.79 percent for the fourth quarter of 2021 and 2.88 percent for the first quarter of 2021.

    Noninterest Income
    Noninterest income for the first quarter of 2022 was $42.2 million, compared to $46.6 million in the fourth quarter of 2021 and $49.5 million in the first quarter of 2021. Included in noninterest income is a settlement award of $1.4 million recorded in the first quarter of 2022, a settlement award of $3.1 million recorded in the fourth quarter of 2021 and a $5.3 million gain recorded in the first quarter of 2021 associated with the sale of branches in Illinois. Gains (losses) on sales of investment securities totaled $(54) thousand in the first quarter of 2022, $(348) thousand in the fourth quarter of 2021 and $5.5 million in the first quarter of 2021. The decrease in noninterest income compared to the year ago quarter was primarily attributable to the aforementioned items, coupled with a decrease in mortgage lending due to market conditions, offset in part by increases in service charges on deposit accounts (+10 percent), wealth management fees (+8 percent) and debit and credit card fees (+13 percent). The decrease in noninterest income on a linked quarter basis is partially due to the items noted above along with two fewer business days in the first quarter of 2022.

    Select Noninterest Income Items
    $ in millions
    Q1 22Q4 21Q3 21Q2 21Q1 21
    Service charges on deposit accounts$10.7$11.9$11.6$10.1$9.7
    Wealth management fees$8.0$8.0$7.9$7.9$7.4
    Debit and credit card fees (1)$7.4$7.5$7.1$7.1$6.6
    Mortgage lending income$4.6$5.0$5.8$4.5$6.4
    Bank owned life insurance$2.7$2.8$2.6$2.0$1.5
    Gain on sale of securities$(0.1)$(0.4)$5.2$5.1$5.5
    Other income$7.3$10.0$6.4$8.4$10.5
          
    Core other income (2)$7.3$10.0$6.7$8.0$5.0

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

    Noninterest Expense
    Noninterest expense for the first quarter of 2022 was $128.4 million, compared to $141.6 million in the fourth quarter of 2021 and $113.0 million in the first quarter of 2021. Included in noninterest expense are certain items totaling $2.8 million in the first quarter of 2022, primarily associated with merger related costs and branch right-sizing costs. Excluding these items, core noninterest expense for the first quarter of 2022 was $125.6 million, compared to $126.4 million in the fourth quarter of 2021 and $112.1 million in the first quarter of 2021. The increase in noninterest expense on a year-over-year basis reflects the acquisitions of Landmark Community Bank and Triumph Bancshares, Inc., which were completed in the fourth quarter of 2021. The change in noninterest expense on a linked quarter basis reflects a decline in merger related costs, offset in part by normal seasonality with respect to payroll taxes at the beginning of the year, as well as a profit-sharing contribution associated with the Company’s 401(k) plan and costs associated with equity compensation. Noninterest expense as a percentage of average assets was 2.07 percent for the first quarter of 2022 and core noninterest expense as a percentage of average assets was 2.02 percent for the period.

    Select Noninterest Expense Items
    $ in millions
    Q1 22Q4 21Q3 21Q2 21Q1 21
    Salaries and employee benefits$67.9$63.9$61.9$60.3$60.3
    Occupancy expense, net$10.0$11.0$9.4$9.1$9.3
    Furniture and equipment$4.8$4.7$4.9$4.9$5.4
    Merger related costs$1.9$13.6$1.4$0.7$0.2
    Other operating expenses (1)$41.6$45.7$34.6$37.2$36.1
          
    Core salaries and employee benefits (2)$67.9$63.8$61.8$60.3$60.3
    Core other operating expenses (2)$40.9$45.8$38.3$37.1$35.9

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

    Asset Quality
         
          
    $ in millionsQ1 22Q4 21Q3 21Q2 21Q1 21
    Allowance for credit losses on loans to total loans1.49%1.71%1.87%2.00%1.93%
    Allowance for credit losses on loans to nonperforming loans278%300%341%281%204%
    Nonperforming loans to total loans0.53%0.57%0.55%0.71%0.95%
    Net charge-off ratio (annualized)0.22%0.31%0.17%(0.07%)0.10%
    Net charge-off ratio YTD (annualized)0.22%0.13%0.06%0.01%0.10%
          
    Total nonperforming loans$64.3$68.6$59.4$80.9$115.5
    Total other nonperforming assets$6.6$7.7$13.5$16.3$12.4

    Continued improvements in the economic outlook and positive credit performance during the quarter resulted in a net $19.9 million benefit from credit losses for the first quarter of 2022. Total nonperforming loans at the end of the first quarter of 2022 dropped to $64.3 million, down $4.2 million compared to $68.6 million at the end of the fourth quarter of 2021 and down $51.2 million compared to $115.5 million at the end of the first quarter of 2021. Total nonperforming assets as a percentage of total assets were 0.29 percent at the end of the first quarter of 2022, compared to 0.31 percent at the end of the fourth quarter of 2021 and 0.55 percent at the end of the first quarter of 2021.

    Net charge-offs as a percentage of average loans were 22 basis points for the quarter, compared to 31 basis points in the fourth quarter of 2021 and 10 basis points for the first quarter of 2021. Net charge-offs in the quarter included a single, isolated healthcare related credit that had been fully provisioned totaling $6.1 million. The charge-off of this credit accounted for 21 of the 22 basis points to the net charge-off ratio during the first quarter of 2022. The allowance for credit losses on loans at the end of the first quarter of 2022 was $178.9 million, compared to $205.3 million at the end of the fourth quarter of 2021 and $235.1 million at the end of the first quarter of 2021. The allowance to loan ratio ended the quarter at 1.49 percent, compared to 1.71 percent at the end of 2021 and 1.93 percent and the end of the first quarter of 2021. The nonperforming loan coverage ratio ended the quarter at 278 percent, compared to 300 percent at the end of 2021 and 204 percent at the end of the first quarter of 2021.

    Capital
         
          
     Q1 22Q4 21Q3 21Q2 21Q1 21
    Stockholders’ equity to total assets12.1%13.1%13.1%13.0%12.6%
    Tangible common equity to tangible assets (1)7.4%        8.5%        8.4%        8.4%       7.9%
    Regulatory common equity tier 1 ratio13.5%13.8%14.3%14.2%14.1%
    Regulatory tier 1 leverage ratio9.0%9.1%9.1%9.0%9.0%
    Regulatory tier 1 risk-based capital ratio13.5%13.8%14.3%14.2%14.1%
    Regulatory total risk-based capital ratio16.4%16.8%17.4%17.5%17.5%

    (1)   Tangible common equity to tangible assets is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
    Total common stockholders’ equity at the end of the first quarter of 2022 was $3.0 billion, compared to $3.2 billion at the end of the fourth quarter of 2021 and $2.9 billion at the end of the first quarter of 2021. The decrease in common stockholders’ equity compared to the previous quarter was primarily due to an increase in unrealized losses associated with investment securities classified as available-for-sale resulting from a significant increase in interest rates during the first quarter of 2022. Book value per share at the end of the first quarter of 2022 was $26.32, compared to $28.82 at the end of the fourth quarter of 2021 and $27.04 and the end of the first quarter of 2021. Tangible book value per share was $15.22 at the end of the first quarter of 2022, compared to $17.71 at the end of the fourth quarter of 2021 and $16.13 at the end of the first quarter of 2021. The ratio of stockholders’ equity to total assets at March 31, 2022, was 12.1 percent and the ratio of tangible common equity to tangible assets was 7.4 percent. All of Simmons’ regulatory capital ratios continue to significantly exceed “well-capitalized” guidelines.

    Share Repurchase Program and Cash Dividend
    As previously announced, as a result of the Simmons’ strong capital position and ability to organically generate capital, the board of directors declared a quarterly cash dividend on Simmons’ Class A common stock of $0.19 per share, which was paid on April 4, 2022, to shareholders of record as of March 15, 2022. The cash dividend rate represents an increase of $0.01 per share, or 6 percent, from the dividend paid for the same time period last year. This marked the 113th consecutive year that Simmons has paid a cash dividend to its shareholders.

    During the first quarter of 2022, Simmons repurchased approximately 514,000 shares of its Class A common stock at an average price of $31.25 pursuant to Simmons’ stock repurchase program that was originally approved in October 2019 and subsequently amended in March 2020 and July 2021 (2019 Program), substantially exhausting the remaining capacity under the 2019 Program. In January 2022, Simmons announced that its board of directors authorized a new stock repurchase program (2022 Program), which replaced the 2019 Program and authorized Simmons to repurchase up to $175,000,000 of its Class A common stock currently issued and outstanding. No shares were repurchased under the 2022 Program during the first quarter of 2022. Market conditions and our capital needs will drive the decisions regarding additional, future stock repurchases.

    The 2022 Program permits Simmons to repurchase shares of its Class A common stock through open market and privately negotiated transactions or otherwise. The timing, pricing, and amount of any repurchases under the 2022 Program will be determined by Simmons’ management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price of the common stock, corporate considerations, Simmons’ working capital and investment requirements, general market and economic conditions, and legal requirements. The 2022 Program does not obligate Simmons to repurchase any common stock and may be modified, discontinued, or suspended at any time without prior notice.

    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 113 consecutive years. Its principal subsidiary, Simmons Bank, operates more than 200 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. Founded in 1903, Simmons Bank offers comprehensive financial solutions delivered with a client-centric approach. Simmons Bank was named to Forbes list of “America’s Best Banks” in 2022 and was recently named to Forbes list of “World’s Best Banks” for the third consecutive year. Additional information about Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on Twitter or by visiting our newsroom.

    Conference Call
    Management will conduct a live conference call to review this information beginning at 9:00 a.m. Central Time today, Thursday, April 28, 2022. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 3439828. In addition, the call will be available live or in recorded version on the Company’s website at simmonsbank.com for at least 60 days.

    Non-GAAP Financial Measures
    This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from 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 expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches, early retirement program expenses and net branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity, tangible assets and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of the impact of PPP loans, mortgage warehouse loans, and/or energy loans. The Company’s management believes that these non-GAAP financial measures are useful to investors because they, among other things, present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalize for tax effects and the effects of the PPP. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses, and management uses these non-GAAP financial measures to assess the performance of the Company’s core businesses as related to prior financial periods. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

    Forward-Looking Statements
    Certain statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Makris’s quotes, may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, lending capacity and lending activity, loan demand, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, digital banking initiatives, the Company’s ability to recruit and retain key employees, the adequacy of the allowance for credit losses, the ability of the Company to manage the impacts of the COVID-19 pandemic, and the impacts of the Company’s and its customers’ participation in the PPP. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons’ common stock specifically, and information technology affecting the financial industry; the effect of steps the Company takes and has taken in response to the COVID-19 pandemic; the severity and duration of the COVID-19 pandemic, including the effectiveness of “booster” vaccination efforts and developments with respect to COVID-19 variants; the pace of recovery when the COVID-19 pandemic subsides and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflict between Russia and Ukraine) or other major events, or the prospect of these events; increased competition in the markets in which the Company operates; increased unemployment; labor shortages; claims, damages, and fines related to litigation or government actions; changes in accounting principles relating to loan loss recognition (current expected credit losses); the Company’s ability to manage and successfully integrate its mergers and acquisitions and to fully realize cost savings and other benefits associated with those transactions; cyber threats, attacks or events; reliance on third parties for key services; government legislation; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those projected in or contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in the Company’s Form 10-K for the year ended December 31, 2021, 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.

    FOR MORE INFORMATION CONTACT:
    Ed Bilek
    EVP, Director of Investor and Media Relations
    Simmons First National Corporation
    ed.bilek@simmonsbank.com
    205.612.3378 (cell) 


    Simmons First National Corporation    SFNC
    Consolidated End of Period Balance Sheets     
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31
    (Unaudited) 2022   2021   2021   2021   2021 
    ($ in thousands)     
    ASSETS     
    Cash and non-interest bearing balances due from banks$195,510  $209,190  $225,500  $215,381  $227,713 
    Interest bearing balances due from banks and federal funds sold 1,491,507   1,441,463   1,555,913   2,123,743   3,677,750 
    Cash and cash equivalents 1,687,017   1,650,653   1,781,413   2,339,124   3,905,463 
    Interest bearing balances due from banks - time 1,857   1,882   1,780   1,335   1,334 
    Investment securities - held-to-maturity 1,556,825   1,529,221   1,516,797   931,352   609,500 
    Investment securities - available-for-sale 6,640,069   7,113,545   6,822,203   6,556,581   4,528,348 
    Mortgage loans held for sale 18,206   36,356   34,628   36,011   63,655 
    Other assets held for sale -   100   100   100   100 
    Loans:     
    Loans 12,028,593   12,012,503   10,825,227   11,386,352   12,195,873 
    Allowance for credit losses on loans (178,924)  (205,332)  (202,508)  (227,239)  (235,116)
    Net loans 11,849,669   11,807,171   10,622,719   11,159,113   11,960,757 
    Premises and equipment 486,531   483,469   463,924   429,587   427,540 
    Premises held for sale -   -   -   6,090   13,613 
    Foreclosed assets and other real estate owned 5,118   6,032   11,759   15,239   11,168 
    Interest receivable 69,357   72,990   68,405   67,916   71,359 
    Bank owned life insurance 448,011   445,305   421,762   419,198   257,152 
    Goodwill 1,147,007   1,146,007   1,075,305   1,075,305   1,075,305 
    Other intangible assets 102,748   106,235   100,428   103,759   107,091 
    Other assets 469,853   325,793   304,707   282,449   315,732 
    Total assets$24,482,268  $24,724,759  $23,225,930  $23,423,159  $23,348,117 
          
    LIABILITIES AND STOCKHOLDERS' EQUITY     
    Deposits:     
    Non-interest bearing transaction accounts$5,223,862  $5,325,318  $4,918,845  $4,893,959  $4,884,667 
    Interest bearing transaction accounts and savings deposits 12,105,948   11,588,770   10,697,451   10,569,602   10,279,997 
    Time deposits 2,062,612   2,452,460   2,455,774   2,841,052   3,024,724 
    Total deposits 19,392,422   19,366,548   18,072,070   18,304,613   18,189,388 
    Federal funds purchased and securities sold under agreements to repurchase 196,828   185,403   217,276   187,215   323,053 
    Other borrowings 1,337,243   1,337,973   1,338,585   1,339,193   1,340,467 
    Subordinated notes and debentures 384,242   384,131   383,278   383,143   383,008 
    Other liabilities held for sale -   -   -   -   - 
    Accrued interest and other liabilities 209,926   201,863   184,190   169,629   181,426 
    Total liabilities 21,520,661   21,475,918   20,195,399   20,383,793   20,417,342 
          
    Stockholders' equity:     
    Preferred stock -   -   767   767   767 
    Common stock 1,125   1,127   1,066   1,084   1,083 
    Surplus 2,150,453   2,164,989   1,974,561   2,021,128   2,017,188 
    Undivided profits 1,136,990   1,093,270   1,065,566   1,004,314   948,913 
    Accumulated other comprehensive (loss) income:     
    Unrealized (depreciation) appreciation on AFS securities (326,961)  (10,545)  (11,429)  12,073   (37,176)
    Total stockholders' equity 2,961,607   3,248,841   3,030,531   3,039,366   2,930,775 
    Total liabilities and stockholders' equity$24,482,268  $24,724,759  $23,225,930  $23,423,159  $23,348,117 



    Simmons First National Corporation    SFNC 
    Consolidated Statements of Income - Quarter-to-Date     
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31 
    (Unaudited) 2022   2021   2021   2021   2021 
    ($ in thousands, except per share data)      
    INTEREST INCOME      
    Loans (including fees)$127,176  $137,564  $132,216  $138,804  $146,424 
    Interest bearing balances due from banks and federal funds sold 649   583   763   651   798 
    Investment securities 33,712   32,275   30,717   27,128   21,573 
    Mortgage loans held for sale 190   310   230   386   639 
    TOTAL INTEREST INCOME 161,727   170,732   163,926   166,969   169,434 
    INTEREST EXPENSE      
    Time deposits 2,503   3,705   4,747   6,061   7,091 
    Other deposits 4,314   4,390   4,369   4,721   6,088 
    Federal funds purchased and securities sold under agreements to repurchase 68   72   70   192   245 
    Other borrowings 4,779   4,903   4,893   4,897   4,802 
    Subordinated notes and debentures 4,457   4,581   4,610   4,565   4,527 
    TOTAL INTEREST EXPENSE 16,121   17,651   18,689   20,436   22,753 
    NET INTEREST INCOME 145,606   153,081   145,237   146,533   146,681 
    Provision for credit losses (19,914)  (1,308)  (19,890)  (12,951)  1,445 
     NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 165,520   154,389   165,127   159,484   145,236 
    NON-INTEREST INCOME      
    Wealth management fees 7,968   8,042   7,877   7,892   7,361 
    Service charges on deposit accounts 10,696   11,909   11,557   10,050   9,715 
    Other service charges and fees 1,637   1,762   1,964   2,048   1,922 
    Mortgage lending income 4,550   5,043   5,818   4,490   6,447 
    Debit and credit card fees 7,449   7,460   7,102   7,073   6,610 
    Bank owned life insurance income 2,706   2,768   2,573   2,038   1,523 
    (Loss) gain on sale of securities, net (54)  (348)  5,248   5,127   5,471 
    Other income 7,266   9,965   6,411   8,397   10,500 
    TOTAL NON-INTEREST INCOME 42,218   46,601   48,550   47,115   49,549 
    NON-INTEREST EXPENSE      
    Salaries and employee benefits 67,906   63,832   61,902   60,261   60,340 
    Occupancy expense, net 10,023   11,033   9,361   9,103   9,300 
    Furniture and equipment expense 4,775   4,721   4,895   4,859   5,415 
    Other real estate and foreclosure expense 343   576   339   863   343 
    Deposit insurance 1,838   2,108   1,870   1,687   1,308 
    Merger-related costs 1,886   13,591   1,401   686   233 
    Other operating expenses 41,646   45,736   34,565   37,198   36,063 
    TOTAL NON-INTEREST EXPENSE 128,417   141,597   114,333   114,657   113,002 
    NET INCOME BEFORE INCOME TAXES 79,321   59,393   99,344   91,942   81,783 
    Provision for income taxes 14,226   11,155   18,770   17,018   14,363 
    NET INCOME 65,095   48,238   80,574   74,924   67,420 
    Preferred stock dividends -   8   13   13   13 
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$65,095  $48,230  $80,561  $74,911  $67,407 
    BASIC EARNINGS PER SHARE$0.58  $0.42  $0.75  $0.69  $0.62 
    DILUTED EARNINGS PER SHARE$0.58  $0.42  $0.74  $0.69  $0.62 



    Simmons First National Corporation   SFNC
    Consolidated Risk-Based Capital     
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31
    (Unaudited) 2022   2021   2021   2021   2021 
    ($ in thousands)     
    Tier 1 capital     
    Stockholders' equity$2,961,607  $3,248,841  $3,030,531  $3,039,366  $2,930,775 
    CECL transition provision (1) 92,619   114,458   122,787   128,933   131,637 
    Disallowed intangible assets, net of deferred tax (1,224,691)  (1,226,686)  (1,152,688)  (1,156,203)  (1,159,720)
    Unrealized loss (gain) on AFS securities 326,961   10,545   11,429   (12,073)  37,176 
    Total Tier 1 capital 2,156,496   2,147,158   2,012,059   2,000,023   1,939,868 
          
    Tier 2 capital     
    Subordinated notes and debentures 384,242   384,131   383,278   383,143   383,008 
    Qualifying allowance for loan losses and reserve for unfunded commitments 78,057   71,853   60,700   79,138   87,251 
    Total Tier 2 capital 462,299   455,984   443,978   462,281   470,259 
    Total risk-based capital$2,618,795  $2,603,142  $2,456,037  $2,462,304  $2,410,127 
          
    Risk weighted assets$15,953,622  $15,538,967  $14,098,320  $14,076,975  $13,771,244 
          
    Adjusted average assets for leverage ratio$23,966,206  $23,647,901  $22,189,921  $22,244,118  $21,668,406 
          
    Ratios at end of quarter     
    Equity to assets 12.10%  13.14%  13.05%  12.98%  12.55%
    Tangible common equity to tangible assets (2) 7.37%  8.51%  8.41%  8.36%  7.88%
    Common equity Tier 1 ratio (CET1) 13.52%  13.82%  14.27%  14.20%  14.08%
    Tier 1 leverage ratio 9.00%  9.08%  9.07%  8.99%  8.95%
    Tier 1 risk-based capital ratio 13.52%  13.82%  14.27%  14.21%  14.09%
    Total risk-based capital ratio 16.42%  16.75%  17.42%  17.49%  17.50%
          
    (1) The Company has elected to use the CECL transition provision allowed for in the year of adopting ASC 326.
    (2) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.


    Simmons First National Corporation   SFNC 
    Consolidated Investment Securities      
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31 
    (Unaudited) 2022  2021  2021  2021  2021 
    ($ in thousands)      
    Investment Securities - End of Period      
    Held-to-Maturity      
    U.S. Government agencies$232,670 $232,609 $232,549 $77,396 $77,396 
    Mortgage-backed securities 112,496  70,342  57,930  60,649  47,988 
    State and political subdivisions 1,194,459  1,209,051  1,209,091  793,307  484,116 
    Other securities 17,200  17,219  17,227  -  - 
    Total held-to-maturity (net of credit losses) 1,556,825  1,529,221  1,516,797  931,352  609,500 
    Available-for-Sale      
    U.S. Treasury$- $300 $300 $600 $600 
    U.S. Government agencies 333,231  364,641  354,382  554,937  487,679 
    Mortgage-backed securities 4,166,108  4,448,616  4,421,620  3,987,209  2,133,086 
    State and political subdivisions 1,653,694  1,819,658  1,575,208  1,557,497  1,571,910 
    Other securities 487,036  480,330  470,693  456,338  335,073 
    Total available-for-sale (net of credit losses) 6,640,069  7,113,545  6,822,203  6,556,581  4,528,348 
    Total investment securities (net of credit losses)$8,196,894 $8,642,766 $8,339,000 $7,487,933 $5,137,848 
    Fair value - HTM investment securities$1,307,058 $1,517,378 $1,487,916 $935,596 $597,694 
           
    Investment Securities - QTD Average      
    Taxable securities$5,688,306 $5,790,429 $5,475,932 $4,265,545 $2,471,291 
    Tax exempt securities 2,844,777  2,787,301  2,496,958  2,157,076  1,919,919 
    Total investment securities - QTD average$8,533,083 $8,577,730 $7,972,890 $6,422,621 $4,391,210 



    Simmons First National Corporation   SFNC 
    Consolidated Loans      
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31 
    (Unaudited) 2022  2021  2021  2021  2021 
    ($ in thousands)      
    Loan Portfolio - End of Period      
    Consumer      
    Credit cards$184,372 $187,052 $175,884 $177,634 $175,458 
    Other consumer 180,602  168,318  182,492  181,712  172,965 
    Total consumer 364,974  355,370  358,376  359,346  348,423 
    Real Estate      
    Construction 1,423,445  1,326,371  1,229,740  1,428,165  1,451,841 
    Single-family residential 2,042,978  2,101,975  1,540,701  1,608,028  1,730,056 
    Other commercial real estate 5,762,567  5,738,904  5,308,902  5,332,655  5,638,010 
    Total real estate 9,228,990  9,167,250  8,079,343  8,368,848  8,819,907 
    Commercial      
    Commercial 2,016,405  1,992,043  1,821,905  2,074,729  2,444,700 
    Agricultural 150,465  168,717  216,735  193,462  155,921 
    Total commercial 2,166,870  2,160,760  2,038,640  2,268,191  2,600,621 
    Other 267,759  329,123  348,868  389,967  426,922 
    Total loans$12,028,593 $12,012,503 $10,825,227 $11,386,352 $12,195,873 


    Simmons First National Corporation   SFNC
    Consolidated Allowance and Asset Quality     
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31
    (Unaudited) 2022   2021   2021   2021   2021 
    ($ in thousands)     
    Allowance for Credit Losses on Loans     
    Beginning balance$205,332  $202,508  $227,239  $235,116  $238,050 
          
    Day 1 PCD allowance from acquisitions     
    Landmark (10/08/2021)  2,359     
    Triumph (10/08/2021)  11,092     
    Total Day 1 PCD allowance  13,451     
          
    Loans charged off     
    Credit cards 920   865   711   1,046   1,003 
    Other consumer 414   477   463   411   702 
    Real estate 485   2,624   5,941   439   1,687 
    Commercial 6,319   8,513   932   309   859 
    Total loans charged off 8,138   12,479   8,047   2,205   4,251 
          
    Recoveries of loans previously charged off     
    Credit cards 274   247   267   244   290 
    Other consumer 387   267   408   425   304 
    Real estate 426   916   2,068   1,523   403 
    Commercial 557   1,730   463   2,147   320 
    Total recoveries 1,644   3,160   3,206   4,339   1,317 
    Net loans charged off 6,494   9,319   4,841   (2,134)  2,934 
    Provision for credit losses on loans (19,914)  (1,308)  (19,890)  (10,011)  - 
    Balance, end of quarter$178,924  $205,332  $202,508  $227,239  $235,116 
          
    Non-performing assets     
    Non-performing loans     
    Nonaccrual loans$64,096  $68,204  $59,054  $80,282  $114,856 
    Loans past due 90 days or more 240   349   334   653   635 
    Total non-performing loans 64,336   68,553   59,388   80,935   115,491 
    Other non-performing assets     
    Foreclosed assets and other real estate owned 5,118   6,032   11,759   15,239   11,168 
    Other non-performing assets 1,479   1,667   1,724   1,062   1,229 
    Total other non-performing assets 6,597   7,699   13,483   16,301   12,397 
    Total non-performing assets$70,933  $76,252  $72,871  $97,236  $127,888 
    Performing TDRs (troubled debt restructurings)$3,424  $4,289  $4,251  $4,436  $3,805 
          
    Ratios     
    Allowance for credit losses on loans to total loans 1.49%  1.71%  1.87%  2.00%  1.93%
    Allowance for credit losses to non-performing loans 278%  300%  341%  281%  204%
    Non-performing loans to total loans 0.53%  0.57%  0.55%  0.71%  0.95%
    Non-performing assets (including performing TDRs) to total assets 0.30%  0.33%  0.33%  0.43%  0.56%
    Non-performing assets to total assets 0.29%  0.31%  0.31%  0.42%  0.55%
    Annualized net charge offs to total loans 0.22%  0.31%  0.17%  -0.07%  0.10%
    Annualized net credit card charge offs to total credit card loans 1.39%  1.29%  0.96%  1.78%  1.58%



    Simmons First National Corporation         SFNC
    Consolidated - Average Balance Sheet and Net Interest Income Analysis      
    For the Quarters Ended           
    (Unaudited)           
     Three Months Ended
    Mar 2022
     Three Months Ended
    Dec 2021
     Three Months Ended
    Mar 2021
    ($ in thousands)Average Balance
     Income/ Expense
     Yield/
    Rate

      Average Balance
     Income/ Expense
     Yield/
    Rate

      Average Balance
     Income/ Expense
     Yield/ Rate 
    ASSETS           
    Earning assets:           
    Interest bearing balances due from banks and federal funds sold$1,728,694 $649 0.15%  $1,484,752 $583 0.16%  $3,477,989 $798 0.09%
    Investment securities - taxable 5,688,306  18,148 1.29%   5,790,429  17,186 1.18%   2,334,078  10,120 1.76%
    Investment securities - non-taxable (FTE) 2,844,777  20,937 2.98%   2,787,301  20,470 2.91%   2,057,132  15,439 3.04%
    Mortgage loans held for sale 27,633  190 2.79%   42,866  310 2.87%   97,409  639 2.66%
    Loans - including fees (FTE) 11,895,805  127,405 4.34%   11,924,444  137,762 4.58%   12,518,300  146,601 4.75%
    Total interest earning assets (FTE) 22,185,215  167,329 3.06%   22,029,792  176,311 3.18%   20,484,908  173,597 3.44%
    Non-earning assets 2,640,984     2,668,230     2,253,913   
    Total assets$24,826,199    $24,698,022    $22,738,821   
                
    LIABILITIES AND STOCKHOLDERS' EQUITY          
    Interest bearing liabilities:           
    Interest bearing transaction and savings accounts$12,083,516 $4,314 0.14%  $11,413,325 $4,390 0.15%  $10,093,868 $6,088 0.24%
    Time deposits 2,241,123  2,503 0.45%   2,607,011  3,705 0.56%   3,043,000  7,091 0.95%
    Total interest bearing deposits 14,324,639  6,817 0.19%   14,020,336  8,095 0.23%   13,136,868  13,179 0.41%
    Federal funds purchased and securities sold under agreement to repurchase 218,186  68 0.13%   223,008  72 0.13%   307,540  245 0.32%
    Other borrowings 1,337,654  4,779 1.45%   1,340,825  4,903 1.45%   1,341,059  4,802 1.45%
    Subordinated notes and debentures 384,187  4,457 4.70%   383,489  4,581 4.74%   382,943  4,527 4.79%
    Total interest bearing liabilities 16,264,666  16,121 0.40%   15,967,658  17,651 0.44%   15,168,410  22,753 0.61%
    Non-interest bearing liabilities:           
    Non-interest bearing deposits 5,184,828     5,288,933     4,419,136   
    Other liabilities 207,597     179,362     177,819   
    Total liabilities 21,657,091     21,435,953     19,765,365   
    Stockholders' equity 3,169,108     3,262,069     2,973,456   
    Total liabilities and stockholders' equity$24,826,199    $24,698,022    $22,738,821   
    Net interest income (FTE) $151,208    $158,660    $150,844  
    Net interest spread (FTE)  2.66%    2.74%    2.83%
    Net interest margin (FTE) - quarter-to-date  2.76%    2.86%    2.99%
                
    Net interest margin (FTE) - year-to-date  2.76%    2.89%    2.99%



    Simmons First National Corporation   SFNC 
    Consolidated - Selected Financial Data      
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31 
    (Unaudited) 2022  2021  2021  2021  2021  
    ($ in thousands, except share data)      
    QUARTER-TO-DATE      
    Financial Highlights - GAAP      
    Net Income$65,095 $48,230 $80,561 $74,911 $67,407  
    Diluted earnings per share 0.58  0.42  0.74  0.69  0.62  
    Return on average assets 1.06% 0.77% 1.37% 1.29% 1.20% 
    Return on average common equity 8.33% 5.87% 10.42% 10.08% 9.20% 
    Return on tangible common equity 14.31% 9.98% 17.43% 17.25% 15.85% 
    Net interest margin (FTE) 2.76% 2.86% 2.85% 2.89% 2.99% 
    FTE adjustment 5,602  5,579  4,941  4,548  4,163  
    Average diluted shares outstanding 113,026,911  114,491,119  108,359,890  108,822,175  108,655,293  
    Shares repurchased under plan 513,725  2,625,348  1,806,205  -  130,916  
    Average price of shares repurchased 31.25  29.69  28.48  -  23.53  
    Cash dividends declared per common share 0.19  0.18  0.18  0.18  0.18  
    Financial Highlights - Core (non-GAAP)      
    Core earnings (excludes non-core items) (1)$67,159 $59,486 $79,350 $75,435 $63,995  
    Core diluted earnings per share (1) 0.59  0.52  0.73  0.69  0.59  
    Accretable yield on acquired loans 3,703  5,758  4,122  5,619  6,630  
    Efficiency ratio (1) 62.95% 59.48% 58.10% 56.75% 57.25% 
    Core return on average assets (1) 1.10% 0.96% 1.35% 1.30% 1.14% 
    Core return on average common equity (1) 8.59% 7.24% 10.26% 10.15% 8.73% 
    Core return on tangible common equity (1) 14.74% 12.19% 17.18% 17.36% 15.08% 
    YEAR-TO-DATE      
    Financial Highlights - GAAP      
    Net Income$65,095 $271,109 $222,879 $142,318 $67,407  
    Diluted earnings per share 0.58  2.46  2.05  1.31  0.62  
    Return on average assets 1.06% 1.15% 1.29% 1.25% 1.20% 
    Return on average common equity 8.33% 8.83% 9.91% 9.64% 9.20% 
    Return on tangible common equity 14.31% 14.99% 16.86% 16.56% 15.85% 
    Net interest margin (FTE) 2.76% 2.89% 2.91% 2.94% 2.99% 
    FTE adjustment 5,602  19,231  13,652  8,711  4,163  
    Average diluted shares outstanding 113,026,911  110,198,094  108,667,928  108,746,439  108,655,293  
    Cash dividends declared per common share 0.19  0.72  0.54  0.36  0.18  
    Financial Highlights - Core (non-GAAP)      
    Core earnings (excludes non-core items) (1)$67,159 $278,266 $218,780 $139,430 $63,995  
    Core diluted earnings per share (1) 0.59  2.53  2.01  1.28  0.59  
    Accretable yield on acquired loans 3,703  22,129  16,371  12,249  6,630  
    Efficiency ratio (1) 62.95% 57.92% 57.37% 57.00% 57.25% 
    Core return on average assets (1) 1.10% 1.18% 1.27% 1.22% 1.14% 
    Core return on average common equity (1) 8.59% 9.06% 9.73% 9.45% 8.73% 
    Core return on tangible common equity (1) 14.74% 15.38% 16.56% 16.23% 15.08% 
    END OF PERIOD      
    Book value per share$26.32 $28.82 $28.42 $28.03 $27.04  
    Tangible book value per share 15.22  17.71  17.39  17.16  16.13  
    Shares outstanding 112,505,555  112,715,444  106,603,231  108,386,669  108,345,732  
    Full-time equivalent employees 2,893  2,877  2,740  2,783  2,817  
    Total number of financial centers 197  199  185  198  198  
           
    (1) Core earnings excludes non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.


    Simmons First National Corporation   SFNC
    Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Quarter-to-Date 
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31
    (Unaudited) 2022   2021   2021   2021   2021 
    ($ in thousands, except per share data)     
    QUARTER-TO-DATE     
    Net Income$65,095  $48,230  $80,561  $74,911  $67,407 
    Non-core items     
    Gain on sale of branches -   -   -   (16)  (5,300)
    Merger-related costs 1,886   13,591   1,401   686   233 
    Branch right-sizing (net) 909   1,648   (3,041)  39   448 
    Tax effect (1) (731)  (3,983)  429   (185)  1,207 
    Net non-core items 2,064   11,256   (1,211)  524   (3,412)
    Core earnings (non-GAAP)$67,159  $59,486  $79,350  $75,435  $63,995 
          
    Diluted earnings per share$0.58  $0.42  $0.74  $0.69  $0.62 
    Non-core items     
    Gain on sale of branches -   -   -   -   (0.05)
    Merger-related costs 0.01   0.12   0.01   0.01   - 
    Branch right-sizing (net) 0.01   0.01   (0.03)  -   0.01 
    Tax effect (1) (0.01)  (0.03)  0.01   (0.01)  0.01 
    Net non-core items 0.01   0.10   (0.01)  -   (0.03)
    Core diluted earnings per share (non-GAAP)$0.59  $0.52  $0.73  $0.69  $0.59 
          
    (1) Effective tax rate of 26.135%.     
          
    Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP) 
          
    QUARTER-TO-DATE     
    Other income$7,266  $9,965  $6,411  $8,397  $10,500 
    Non-core items (1) -   (2)  239   (445)  (5,477)
    Core other income (non-GAAP)$7,266  $9,963  $6,650  $7,952  $5,023 
          
    Non-interest expense$128,417  $141,597  $114,333  $114,657  $113,002 
    Non-core items (1) (2,795)  (15,241)  1,879   (1,154)  (858)
    Core non-interest expense (non-GAAP)$125,622  $126,356  $116,212  $113,503  $112,144 
          
    Salaries and employee benefits$67,906  $63,832  $61,902  $60,261  $60,340 
    Non-core items (1) -   -   (66)  -   - 
    Core salaries and employee benefits (non-GAAP)$67,906  $63,832  $61,836  $60,261  $60,340 
          
    Merger related costs$1,886  $13,591  $1,401  $686  $233 
    Non-core items (1) (1,886)  (13,591)  (1,401)  (686)  (233)
    Core merger related costs (non-GAAP)$-  $-  $-  $-  $- 
          
    Other operating expenses$41,646  $45,736  $34,565  $37,198  $36,063 
    Non-core items (1) (717)  96   3,759   (89)  (208)
    Core other operating expenses (non-GAAP)$40,929  $45,832  $38,324  $37,109  $35,855 
          
    (1) Non-core items include gain on sale of branches, merger related costs and branch right-sizing costs. 



    Simmons First National Corporation   SFNC 
    Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Year-to-Date  
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31 
    (Unaudited) 2022   2021   2021   2021   2021  
    ($ in thousands, except per share data)      
    YEAR-TO-DATE      
    Net Income$65,095  $271,109  $222,879  $142,318  $67,407  
    Non-core items      
    Gain on sale of branches -   (5,316)  (5,316)  (5,316)  (5,300) 
    Merger-related costs 1,886   15,911   2,320   919   233  
    Branch right-sizing (net) 909   (906)  (2,554)  487   448  
    Tax effect (1) (731)  (2,532)  1,451   1,022   1,207  
    Net non-core items 2,064   7,157   (4,099)  (2,888)  (3,412) 
    Core earnings (non-GAAP)$67,159  $278,266  $218,780  $139,430  $63,995  
           
    Diluted earnings per share$0.58  $2.46  $2.05  $1.31  $0.62  
    Non-core items      
    Gain on sale of branches -   (0.05)  (0.05)  (0.05)  (0.05) 
    Merger-related costs 0.01   0.15   0.02   0.01   -  
    Branch right-sizing (net) 0.01   (0.01)  (0.02)  -   0.01  
    Tax effect (1) (0.01)  (0.02)  0.01   0.01   0.01  
    Net non-core items 0.01   0.07   (0.04)  (0.03)  (0.03) 
    Core diluted earnings per share (non-GAAP)$0.59  $2.53  $2.01  $1.28  $0.59  
           
    (1) Effective tax rate of 26.135%.      
           
    Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP)  
           
    YEAR-TO-DATE      
    Other income$7,266  $35,273  $25,308  $18,897  $10,500  
    Non-core items (1) -   (5,685)  (5,683)  (5,922)  (5,477) 
    Core other income (non-GAAP)$7,266  $29,588  $19,625  $12,975  $5,023  
           
    Non-interest expense$128,417  $483,589  $341,992  $227,659  $113,002  
    Non-core items (1) (2,795)  (15,374)  (133)  (2,012)  (858) 
    Core non-interest expense (non-GAAP)$125,622  $468,215  $341,859  $225,647  $112,144  
           
    Salaries and employee benefits$67,906  $246,335  $182,503  $120,601  $60,340  
    Non-core items (1) -   (66)  (66)  -   -  
    Core salaries and employee benefits (non-GAAP)$67,906  $246,269  $182,437  $120,601  $60,340  
           
    Merger related costs$1,886  $15,911  $2,320  $919  $233  
    Non-core items (1) (1,886)  (15,911)  (2,320)  (919)  (233) 
    Core merger related costs (non-GAAP)$-  $-  $-  $-  $-  
           
    Other operating expenses$41,646  $153,562  $107,826  $73,261  $36,063  
    Non-core items (1) (717)  3,558   3,462   (297)  (208) 
    Core other operating expenses (non-GAAP)$40,929  $157,120  $111,288  $72,964  $35,855  
           
    (1) Non-core items include gain on sale of branches, merger related costs and branch right-sizing costs.  



    Simmons First National Corporation    SFNC 
    Reconciliation Of Non-GAAP Financial Measures - End of Period    
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31 
    (Unaudited) 2022   2021   2021   2021   2021  
    ($ 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$2,961,607  $3,248,841  $3,029,764  $3,038,599  $2,930,008  
    Intangible assets:      
    Goodwill (1,147,007)  (1,146,007)  (1,075,305)  (1,075,305)  (1,075,305) 
    Other intangible assets (102,748)  (106,235)  (100,428)  (103,759)  (107,091) 
    Total intangibles (1,249,755)  (1,252,242)  (1,175,733)  (1,179,064)  (1,182,396) 
    Tangible common stockholders' equity$1,711,852  $1,996,599  $1,854,031  $1,859,535  $1,747,612  
           
    Total assets$24,482,268  $24,724,759  $23,225,930  $23,423,159  $23,348,117  
    Intangible assets:      
    Goodwill (1,147,007)  (1,146,007)  (1,075,305)  (1,075,305)  (1,075,305) 
    Other intangible assets (102,748)  (106,235)  (100,428)  (103,759)  (107,091) 
    Total intangibles (1,249,755)  (1,252,242)  (1,175,733)  (1,179,064)  (1,182,396) 
    Tangible assets$23,232,513  $23,472,517  $22,050,197  $22,244,095  $22,165,721  
           
    Paycheck protection program ("PPP") loans (61,887)  (116,659)  (212,087)  (441,353)  (797,629) 
    Total assets excluding PPP loans$24,420,381  $24,608,100  $23,013,843  $22,981,806  $22,550,488  
    Tangible assets excluding PPP loans$23,170,626  $23,355,858  $21,838,110  $21,802,742  $21,368,092  
           
    Ratio of common equity to assets 12.10%  13.14%  13.04%  12.97%  12.55% 
    Ratio of common equity to assets excluding PPP loans 12.13%  13.20%  13.16%  13.22%  12.99% 
    Ratio of tangible common equity to tangible assets 7.37%  8.51%  8.41%  8.36%  7.88% 
    Ratio of tangible common equity to tangible assets excluding PPP loans 7.39%  8.55%  8.49%  8.53%  8.18% 
           
    Calculation of Tangible Book Value per Share      
           
    Total common stockholders' equity$2,961,607  $3,248,841  $3,029,764  $3,038,599  $2,930,008  
    Intangible assets:      
    Goodwill (1,147,007)  (1,146,007)  (1,075,305)  (1,075,305)  (1,075,305) 
    Other intangible assets (102,748)  (106,235)  (100,428)  (103,759)  (107,091) 
    Total intangibles (1,249,755)  (1,252,242)  (1,175,733)  (1,179,064)  (1,182,396) 
    Tangible common stockholders' equity$1,711,852  $1,996,599  $1,854,031  $1,859,535  $1,747,612  
    Shares of common stock outstanding 112,505,555   112,715,444   106,603,231   108,386,669   108,345,732  
    Book value per common share$26.32  $28.82  $28.42  $28.03  $27.04  
    Tangible book value per common share$15.22  $17.71  $17.39  $17.16  $16.13  



    Simmons First National Corporation    SFNC 
    Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date    
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31 
    (Unaudited) 2022   2021   2021   2021   2021  
    ($ in thousands)      
    Calculation of Core Return on Average Assets      
           
    Net income$65,095  $48,230  $80,561  $74,911  $67,407  
    Net non-core items, net of taxes, adjustment 2,064   11,256   (1,211)  524   (3,412) 
    Core earnings$67,159  $59,486  $79,350  $75,435  $63,995  
           
    Average total assets$24,826,199  $24,698,022  $23,255,541  $23,257,921  $22,738,821  
           
    Return on average assets 1.06%  0.77%  1.37%  1.29%  1.20% 
    Core return on average assets 1.10%  0.96%  1.35%  1.30%  1.14% 
           
    Calculation of Return on Tangible Common Equity      
           
    Net income$65,095  $48,230  $80,561  $74,911  $67,407  
    Amortization of intangibles, net of taxes 2,575   2,575   2,460   2,462   2,470  
    Total income available to common stockholders$67,670  $50,805  $83,021  $77,373  $69,877  
           
    Net non-core items, net of taxes 2,064   11,256   (1,211)  524   (3,412) 
    Core earnings 67,159   59,486   79,350   75,435   63,995  
    Amortization of intangibles, net of taxes 2,575   2,575   2,460   2,462   2,470  
    Total core income available to common stockholders$69,734  $62,061  $81,810  $77,897  $66,465  
           
    Average common stockholders' equity$3,169,108  $3,261,627  $3,067,205  $2,980,609  $2,972,689  
    Average intangible assets:      
    Goodwill (1,146,034)  (1,137,441)  (1,075,305)  (1,075,305)  (1,075,305) 
    Other intangibles (104,905)  (105,155)  (102,576)  (105,785)  (109,850) 
    Total average intangibles (1,250,939)  (1,242,596)  (1,177,881)  (1,181,090)  (1,185,155) 
    Average tangible common stockholders' equity$1,918,169  $2,019,031  $1,889,324  $1,799,519  $1,787,534  
           
    Return on average common equity 8.33%  5.87%  10.42%  10.08%  9.20% 
    Return on tangible common equity 14.31%  9.98%  17.43%  17.25%  15.85% 
    Core return on average common equity 8.59%  7.24%  10.26%  10.15%  8.73% 
    Core return on tangible common equity 14.74%  12.19%  17.18%  17.36%  15.08% 
           
    Calculation of Efficiency Ratio (1)      
           
    Non-interest expense$128,417  $141,597  $114,333  $114,657  $113,002  
    Non-core non-interest expense adjustment (2,795)  (15,241)  1,879   (1,154)  (858) 
    Other real estate and foreclosure expense adjustment (343)  (576)  (339)  (863)  (343) 
    Amortization of intangibles adjustment (3,486)  (3,486)  (3,331)  (3,333)  (3,344) 
    Efficiency ratio numerator$121,793  $122,294  $112,542  $109,307  $108,457  
           
    Net-interest income$145,606  $153,081  $145,237  $146,533  $146,681  
    Non-interest income 42,218   46,601   48,550   47,115   49,549  
    Non-core non-interest income adjustment -   (2)  239   (445)  (5,477) 
    Fully tax-equivalent adjustment (effective tax rate of 26.135%) 5,602   5,579   4,941   4,548   4,163  
    Loss (gain) on sale of securities 54   348   (5,248)  (5,127)  (5,471) 
    Efficiency ratio denominator$193,480  $205,607  $193,719  $192,624  $189,445  
           
    Efficiency ratio (1) 62.95%  59.48%  58.10%  56.75%  57.25% 
           
    (1) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully axable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items. 



    Simmons First National Corporation    SFNC 
    Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)   
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31 
    (Unaudited) 2022   2021   2021   2021   2021  
    ($ in thousands)      
    Calculation of Adjusted Net Interest Margin      
           
    Net interest income$145,606  $153,081  $145,237  $146,533  $146,681  
    Fully tax-equivalent adjustment (effective tax rate of 26.135%) 5,602   5,579   4,941   4,548   4,163  
    Fully tax-equivalent net interest income 151,208   158,660   150,178   151,081   150,844  
    PPP loan interest income (2,113)  (5,107)  (9,614)  (8,958)  (11,652) 
    Net interest income adjusted for PPP loans$149,095  $153,553  $140,564  $142,123  $139,192  
           
    Average earning assets$22,185,215  $22,029,792  $20,901,992  $20,959,642  $20,484,908  
    Average PPP loan balance (89,757)  (172,130)  (359,828)  (707,296)  (891,070) 
    Average earning assets adjusted for PPP loans$22,095,458  $21,857,662  $20,542,164  $20,252,346  $19,593,838  
           
    Net interest margin 2.76%  2.86%  2.85%  2.89%  2.99% 
    Net interest margin adjusted for PPP loans 2.74%  2.79%  2.71%  2.81%  2.88% 
           
    Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings     
           
    Net income available to common stockholders$65,095  $48,230  $80,561  $74,911  $67,407  
    Provision for income taxes 14,226   11,155   18,770   17,018   14,363  
    Provision for credit losses (including provision for unfunded commitments) (19,914)  (1,308)  (19,890)  (12,951)  1,445  
    Loss (gain) on sale of securities 54   348   (5,248)  (5,127)  (5,471) 
    Net pre-tax non-core items 2,795   15,239   (1,640)  709   (4,619) 
    Adjusted pre-tax, pre-provision (PTPP) earnings$62,256  $73,664  $72,553  $74,560  $73,125  


    Simmons First National Corporation    SFNC
    Reconciliation Of Non-GAAP Financial Measures - Year-to-Date   
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31
    (Unaudited) 2022   2021   2021   2021   2021 
    ($ in thousands)     
    Calculation of Core Return on Average Assets     
          
    Net income$65,095  $271,109  $222,879  $142,318  $67,407 
    Net non-core items, net of taxes, adjustment 2,064   7,157   (4,099)  (2,888)  (3,412)
    Core earnings$67,159  $278,266  $218,780  $139,430  $63,995 
          
    Average total assets$24,826,199  $23,492,308  $23,085,987  $22,999,805  $22,738,821 
          
    Return on average assets 1.06%  1.15%  1.29%  1.25%  1.20%
    Core return on average assets 1.10%  1.18%  1.27%  1.22%  1.14%
          
    Calculation of Return on Tangible Common Equity     
          
    Net income$65,095  $271,109  $222,879  $142,318  $67,407 
    Amortization of intangibles, net of taxes 2,575   9,967   7,392   4,932   2,470 
    Total income available to common stockholders$67,670  $281,076  $230,271  $147,250  $69,877 
          
    Net non-core items, net of taxes 2,064   7,157   (4,099)  (2,888)  (3,412)
    Core earnings 67,159   278,266   218,780   139,430   63,995 
    Amortization of intangibles, net of taxes 2,575   9,967   7,392   4,932   2,470 
    Total core income available to common stockholders$69,734  $288,233  $226,172  $144,362  $66,465 
          
    Average common stockholders' equity$3,169,108  $3,071,313  $3,007,181  $2,976,671  $2,972,689 
    Average intangible assets:     
    Goodwill (1,146,034)  (1,090,967)  (1,075,305)  (1,075,305)  (1,075,305)
    Other intangibles (104,905)  (105,820)  (106,043)  (107,806)  (109,850)
    Total average intangibles (1,250,939)  (1,196,787)  (1,181,348)  (1,183,111)  (1,185,155)
    Average tangible common stockholders' equity$1,918,169  $1,874,526  $1,825,833  $1,793,560  $1,787,534 
          
    Return on average common equity 8.33%  8.83%  9.91%  9.64%  9.20%
    Return on tangible common equity 14.31%  14.99%  16.86%  16.56%  15.85%
    Core return on average common equity 8.59%  9.06%  9.73%  9.45%  8.73%
    Core return on tangible common equity 14.74%  15.38%  16.56%  16.23%  15.08%
          
    Calculation of Efficiency Ratio (1)     
          
    Non-interest expense$128,417  $483,589  $341,992  $227,659  $113,002 
    Non-core non-interest expense adjustment (2,795)  (15,374)  (133)  (2,012)  (858)
    Other real estate and foreclosure expense adjustment (343)  (2,121)  (1,545)  (1,206)  (343)
    Amortization of intangibles adjustment (3,486)  (13,494)  (10,008)  (6,677)  (3,344)
    Efficiency ratio numerator$121,793  $452,600  $330,306  $217,764  $108,457 
          
    Net-interest income$145,606  $591,532  $438,451  $293,214  $146,681 
    Non-interest income 42,218   191,815   145,214   96,664   49,549 
    Non-core non-interest income adjustment -   (5,685)  (5,683)  (5,922)  (5,477)
    Fully tax-equivalent adjustment (effective tax rate of 26.135%) 5,602   19,231   13,652   8,711   4,163 
    Gain on sale of securities 54   (15,498)  (15,846)  (10,598)  (5,471)
    Efficiency ratio denominator$193,480  $781,395  $575,788  $382,069  $189,445 
          
    Efficiency ratio (1) 62.95%  57.92%  57.37%  57.00%  57.25%
          
    (1) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items.



    Simmons First National Corporation    SFNC 
    Reconciliation Of Non-GAAP Financial Measures - Year-to-Date (continued)    
    For the Quarters EndedMar 31Dec 31Sep 30Jun 30Mar 31 
    (Unaudited) 2022   2021   2021   2021   2021  
    ($ in thousands)      
    Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings     
           
    Net income available to common stockholders$65,095  $271,109  $222,879  $142,318  $67,407  
    Provision for income taxes 14,226   61,306   50,151   31,381   14,363  
    Provision for credit losses (including provision for unfunded commitments) (19,914)  (32,704)  (31,396)  (11,506)  1,445  
    Loss (gain) on sale of securities 54   (15,498)  (15,846)  (10,598)  (5,471) 
    Adjustments, pre-tax 2,795   9,689   (5,550)  (3,910)  (4,619) 
    Adjusted pre-tax, pre-provision (PTPP) earnings$62,256  $293,902  $220,238  $147,685  $73,125  

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