SFNC Simmons First National Corporation

Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or “Simmons”) today announced net income of $58.8 million for the quarter ended June 30, 2020, compared to $55.6 million for the same period in 2019, an increase of $3.2 million, or 5.7%. Diluted earnings per share were $0.54, a decrease of $0.04, or 6.9%, compared to the same period in the prior year. Included in second quarter 2020 results were $3.0 million in net after-tax merger-related, early retirement program and branch right-sizing costs as well as a $1.6 million after-tax gain associated with the sale of branches.

Excluding the impact of these items, core earnings were $60.1 million for the quarter ended June 30, 2020, compared to $65.5 million for the quarter ended June 30, 2019, a decrease of $5.3 million, or 8.1%. Core diluted earnings per share were $0.55, a decrease of $0.13, or 19.1%, from the same period in 2019.

Year-to-date net income for the first half of 2020 was $136.0 million, or $1.22 diluted earnings per share, compared to $103.3 million, or $1.09 diluted earnings per share, for the same period in 2019. Excluding $2.0 million in net after-tax merger-related, early retirement program and branch right-sizing costs and the gains on the sales of branches in south Texas and Colorado, year-to-date core earnings for 2020 were $134.0 million, an increase of $19.5 million compared to the same period last year. Core diluted earnings per share for the first half of 2020 were $1.21, equal to the same period in 2019.

“Our associates at Simmons Bank have done an amazing job of adapting to the changes that have occurred over the past four months,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “We continue to operate in an uncertain environment, and we will continue to adjust as necessary. We have consolidated various operations to provide capacity for continued service to our customers and communities. Our digital banking options have been very well received by our customers, and we expect to continue to see the trend toward more self-service. We need a sustainable plan for the opening of the economy, including public education across the country. We remain optimistic we will get one soon.”

Selected Highlights:		2nd Qtr 2020			1st Qtr 2020			2nd Qtr 2019
Net income	$	58.8 million		$	77.2 million		$	55.6 million
Diluted earnings per share	$	0.54		$	0.68		$	0.58
Return on avg assets		1.08	%		1.48	%		1.28	%
Return on avg common equity		8.21	%		10.83	%		9.48	%
Return on tangible common equity (1)		14.55	%		19.00	%		17.40	%
Core earnings (2)	$	60.1 million		$	73.8 million		$	65.5 million
Core diluted earnings per share (2)	$	0.55		$	0.65		$	0.68
Core return on avg assets (2)		1.11	%		1.42	%		1.51	%
Core return on avg common equity (2)		8.40	%		10.35	%		11.16	%
Core return on tangible common equity (1)(2)		14.87	%		18.19	%		20.36	%
Efficiency ratio (3)		49.12	%		56.38	%		49.88	%
Pre-tax, pre-provision (PTPP) earnings (2)	$	97.7 million		$	84.4 million		$	88.8 million

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

Loans

($ in billions)	2nd Qtr 2020		1st Qtr 2020		2nd Qtr 2019
Total loans	$	14.61	$	14.37	$	13.13

Total loans were $14.6 billion at June 30, 2020, an increase of $1.5 billion, or 11.3%, compared to June 30, 2019, primarily due to The Landrum Company (“Landrum”) merger completed during the fourth quarter 2019. On a linked-quarter basis (June 30, 2020 compared to March 31, 2020), total loans increased $232.6 million, or 1.6%. During the second quarter of 2020, the Company had $963.7 million in loan originations under the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and an increase in agricultural loans of $26.2 million. These increases were partially offset by decreases in energy loan lending, commercial real estate and single-family real estate loan categories of $64.8 million, $149.7 million and $136.5 million, respectively. 

Deposits

($ in billions)	2nd Qtr 2020		1st Qtr 2020		2nd Qtr 2019
Total deposits	$	16.6	$	15.6	$	13.5
Non-interest bearing deposits	$	4.6	$	3.6	$	2.9
Interest bearing deposits	$	9.0	$	8.8	$	7.3
Time deposits	$	3.0	$	3.2	$	3.3

Total deposits were $16.6 billion at June 30, 2020, an increase of $3.1 billion, or 22.9%, since June 30, 2019, primarily due to the Landrum merger. On a linked-quarter basis, total deposits increased $1.1 billion, or 6.8%, primarily due to the $1.0 billion increase in non-interest bearing deposits. This increase was partially offset by a decrease in brokered funds of $308.9 million during the second quarter.   

Net Interest Income

	2nd Qtr 2020		1st Qtr 2020		4th Qtr 2019		3rd Qtr 2019		2nd Qtr 2019
Loan yield (1)	4.84	%	5.19	%	5.43	%	5.47	%	5.58	%
Core loan yield (1) (2)	4.52	%	4.86	%	5.00	%	5.19	%	5.26	%
Security yield (1)	2.50	%	2.63	%	2.73	%	2.87	%	3.06	%
Cost of interest bearing deposits	0.59	%	1.03	%	1.22	%	1.40	%	1.37	%
Cost of deposits (3)	0.44	%	0.80	%	0.94	%	1.09	%	1.07	%
Cost of borrowed funds	1.84	%	2.06	%	2.30	%	2.52	%	2.50	%
Net interest margin (1)	3.42	%	3.68	%	3.78	%	3.82	%	3.94	%
Core net interest margin (1) (2)	3.18	%	3.42	%	3.44	%	3.59	%	3.67	%

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

The Company’s net interest income for the second quarter of 2020 was $163.7 million, an increase of $14.3 million, or 9.5%, from the same period of 2019, primarily due to the 78 basis point decline in the cost of interest bearing deposits year over year. Included in interest income was the yield accretion recognized on loans acquired of $11.7 million and $10.2 million for the second quarters of 2020 and 2019, respectively.

The loan yield was 4.84% for the quarter ended June 30, 2020, while the core loan yield, which excludes the accretion, was 4.52% for the same period. The decrease in the loan yield during the second quarter of 2020 was primarily driven by the lower yielding PPP loans originated during the quarter. The PPP loan yield was approximately 2.33% (including accretion of net fees), which decreased the loan yield by approximately 10 basis points.

Net interest margin (FTE) was 3.42% for the quarter ended June 30, 2020, while the core net interest margin, which excludes the accretion, was 3.18% for the same period. The decrease in the net interest margin during the second quarter of 2020 was primarily driven by the additional liquidity and the lower yielding PPP loans, which decreased the net interest margin by approximately 25 basis points.

Non-Interest Income

Non-interest income for the second quarter of 2020 was $50.2 million, an increase of $10.3 million compared to the same period in the previous year. During the second quarter 2020, the Company recognized a $2.2 million gain associated with the sale of the branches recorded in other income, which the Company considers a non-core item.

The increase in non-interest income was primarily due to the increase in mortgage lending income driven by the current low mortgage interest rate environment. The decrease in service charges on deposit accounts was primarily attributable to a lower number of customer transactions, related to the impact of the COVID-19 pandemic.

Selected Non-Interest Income Items($ in millions)	2nd Qtr 2020		1st Qtr 2020		4th Qtr 2019		3rd Qtr 2019		2nd Qtr 2019
Service charges on deposit accounts	$	8.6	$	13.3	$	13.3	$	10.8	$	10.6
Mortgage lending income	$	12.5	$	5.0	$	4.0	$	4.5	$	3.7
SBA lending income	$	0.2	$	0.3	$	0.3	$	1.0	$	0.9
Debit and credit card fees	$	8.0	$	7.9	$	8.9	$	7.1	$	7.2
Gain on sale of securities	$	0.4	$	32.1	$	0.4	$	7.4	$	2.8
Other income	$	9.8	$	12.8	$	7.1	$	44.7	$	6.1
Core other income(1)	$	7.6	$	6.9	$	7.1	$	44.7	$	6.1

1. Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Non-Interest Expense

Non-interest expense for the second quarter of 2020 was $112.6 million, an increase of $1.9 million compared to the second quarter of 2019. Included in this quarter were $4.0 million of pre-tax non-core items for merger-related, early retirement program and branch right-sizing costs. Excluding these expenses, core non-interest expense was $108.6 million for the second quarter of 2020, an increase of $11.2 million compared to the same period in 2019, primarily the result of the Landrum merger and additional software and technology costs related to the Company’s Next Generation Banking (“NGB”) initiative.

The efficiency ratio for the second quarter of 2020 was 49.12%, compared to 49.88% for the same period in 2019.

Selected Non-Interest Expense Items($ in millions)	2nd Qtr 2020		1st Qtr 2020		4th Qtr 2019		3rd Qtr 2019		2nd Qtr 2019
Salaries and employee benefits	$	57.6	$	67.9	$	63.2	$	52.1	$	56.1
Merger related costs	$	1.8	$	1.1	$	24.8	$	2.6	$	7.5
Other operating expenses	$	34.7	$	38.8	$	38.0	$	37.9	$	32.9
Core salaries and employee benefits(1)	$	57.2	$	67.9	$	63.2	$	51.9	$	53.2
Core merger related costs(1)		-		-		-		-		-
Core other operating expenses(1)	$	33.0	$	38.6	$	38.0	$	37.8	$	30.0

1. Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

On a linked-quarter basis, salaries and employee benefits decreased by $10.3 million, which included the impact of cost savings from the Landrum merger.  The decrease was primarily driven by the following categories:

• Employee benefits - $3.1 million decrease (payroll taxes, insurance utilization, and other employee benefits)
• Salaries - $2.3 million decrease
• Incentive based plans - $4.9 million decrease (executive, lender and retail incentive plans)

On a linked-quarter basis, other operating expenses decreased $4.1 million. The remaining decrease was primarily related to cost savings from the Landrum merger and lower operating expenses due to the impact of COVID-19.

Early in 2020, the Company offered qualifying associates an early retirement option resulting in $493,000 of non-core expense during the second quarter. The Company expects ongoing net annualized savings of approximately $2.9 million.

Management continuously evaluates the Company’s branch network as part of its analysis of the profitability of the Company’s operations and the efficiency with which it delivers banking services to its markets. As a result of this ongoing evaluation, the Company closed 11 branch locations during June 2020, with estimated net annual cost savings of approximately $2.4 million related to these locations. In addition, the Company expects to close an additional 23 branch locations and one loan production office during the fourth quarter of 2020, with an expected net annual cost savings of approximately $6.8 million.

Asset Quality

	2nd Qtr 2020		1st Qtr 2020		4th Qtr 2019		3rd Qtr 2019		2nd Qtr 2019
Allowance for credit losses to total loans	1.59	%	1.69	%	0.47	%	0.51	%	0.49	%
Allowance for credit losses to non-performing loans	175	%	154	%	74	%	78	%	60	%
Non-performing loans to total loans	0.91	%	1.10	%	0.64	%	0.65	%	0.81	%
Net charge-off ratio (annualized)	1.04	%	0.07	%	0.09	%	0.59	%	0.11	%
Net charge-off ratio YTD (annualized)	0.56	%	0.07	%	0.24	%	0.30	%	0.15	%

At June 30, 2020, the allowance for credit losses was $231.6 million. Provision for credit losses for the second quarter of 2020 was $26.9 million. Included in total loans was $963.7 million of government guaranteed PPP loans.  Excluding the PPP loans, the allowance for credit losses to total loans was 1.70%.

Net charge-offs for the second quarter of 2020 were $38.2 million, of which $32.6 million were from loans included in the energy lending portfolios acquired from Bank SNB and Southwest Bank in 2017.  Of the second quarter charge-offs, $27.8 million was specifically reserved for and included in the March 31, 2020 allowance for credit loss.  Therefore, additional provision related to these charges was not required.

Foreclosed Assets and Other Real Estate Owned

At June 30, 2020, foreclosed assets and other real estate owned were $14.1 million, decreases of $10.7 million, or 43.0%, compared to the same period in 2019 and $6.7 million, or 32.2% from March 31, 2020. The composition of these assets is divided into three types:      

($ in millions)	2nd Qtr 2020		1st Qtr 2020		4th Qtr 2019		3rd Qtr 2019		2nd Qtr 2019
Closed bank branches and branch sites	$	2.7	$	8.8	$	5.7	$	5.9	$	6.5
Foreclosed assets – acquired	$	9.2	$	9.2	$	10.3	$	10.1	$	13.3
Foreclosed assets – legacy	$	2.2	$	2.8	$	3.1	$	3.6	$	5.0

Capital

	2nd Qtr 2020		1st Qtr 2020		4th Qtr 2019		3rd Qtr 2019		2nd Qtr 2019
Stockholders’ equity to total assets	13.3	%	13.7	%	14.1	%	14.3	%	13.8	%
Tangible common equity to tangible assets(1)	8.3	%	8.4	%	9.0	%	9.1	%	8.5	%
Regulatory common equity tier 1 ratio	11.9	%	11.1	%	10.9	%	10.3	%	9.8	%
Regulatory tier 1 leverage ratio	8.8	%	9.0	%	9.6	%	9.1	%	8.9	%
Regulatory tier 1 risk-based capital ratio	11.9	%	11.1	%	10.9	%	10.3	%	9.8	%
Regulatory total risk-based capital ratio	14.9	%	14.1	%	13.7	%	13.2	%	12.7	%

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.

At June 30, 2020, common stockholders' equity was $2.9 billion. Book value per share was $26.64 and tangible book value per share was $15.79 at June 30, 2020. The ratio of stockholders’ equity to total assets was 13.3% at June 30, 2020 while the tangible common equity to tangible assets was 8.3% at June 30, 2020. As of June 30, 2020, PPP loans totaled $963.7 million, which are 100% federally guaranteed and have a zero percent risk-weight for regulatory capital ratios.  Excluding PPP loans from total assets, equity to total assets was 13.9%, tangible common equity to tangible assets was 8.7% and the regulatory tier 1 leverage ratio was 9.1%.

No shares have been repurchased under the Company’s stock repurchase program since March 31, 2020. Market conditions and the Company’s capital needs will drive the decisions regarding additional, future stock repurchases.

Digital Banking

Since the end of February 2020, the Company has added over 38,000 new digital banking users, a 23% increase.  More than 78% of deposit transaction accounts are now enrolled in digital banking.  For the first time, in March, the Company processed more weekly transactions using the digital channels than at the branches.  During May 2020, the Company completed the conversion of all consumer customers to the new online platform.  All consumer customers are now on the same online and mobile platforms, including acquired institutions.

COVID-19 Impact

Through June 30, 2020, the Company originated over 7,800 PPP loans with an average balance of $123,000 per loan.  Approximately 93% of the PPP loans had a balance less than $350,000.

PPP Loansas of June 30, 2020	# ofLoans			Balance($ in millions)
Loan balance less than $350,000	7,286	93	%	$	392.3	41	%
Loan balance $350,000 or less than $2 million	478	6	%	$	355.4	37	%
Loan balance $2 million to $10 million	62	1	%	$	216.0	22	%
Total	7,826	100	%	$	963.7	100	%

In March and in response to the pandemic, the Company announced temporary closure of 52 branches and has been focusing on the enhanced digital banking experience.  While the majority of these branches have been reopened, the Company has continued to review its branch network.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $21.9 billion as of June 30, 2020, conducting financial operations in Arkansas, Illinois, Kansas, Missouri, Oklahoma, Tennessee and Texas. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock is listed on the NASDAQ Global Select Market under the symbol “SFNC.”

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT today, Tuesday, July 21, 2020. 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 9275743. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches, early retirement program expenses and branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of PPP loans.  The Company’s management believes that these non-GAAP financial measures are useful to investors because they 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 normalizing for tax effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. 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

Some of the 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, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, NGB and other digital banking initiatives, the Company’s ability to recruit and retain key employees, the benefits associated with the Company’s early retirement program and completed and future branch closures, the adequacy of the allowance for credit losses, and the ability of the Company to manage the impact of the COVID-19 pandemic. 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 in response to COVID-19, the severity and duration of the pandemic, including whether there is a “second wave” as a result of the loosening of governmental restrictions, the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; unemployment; potential claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the CARES Act); changes in accounting principles relating to loan loss recognition (current expected credit losses, or CECL); the Company’s ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in its Form 10-K for the year ended December 31, 2019, which has been filed with, and is available from, the U.S. Securities and Exchange Commission.

FOR MORE INFORMATION CONTACT:Stephen C. MassanelliEVP, Chief Administrative Officer and Investor Relations OfficerSimmons First National Corporationsteve.massanelli@simmonsbank.com

Simmons First National Corporation													SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended		Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2020			2020			2019			2019			2019
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	234,998		$	244,123		$	277,208		$	161,440		$	145,491
Interest bearing balances due from banks and federal funds sold		2,310,162			1,493,076			719,415			368,530			509,765
Cash and cash equivalents		2,545,160			1,737,199			996,623			529,970			655,256
Interest bearing balances due from banks - time		4,561			4,309			4,554			5,041			5,041
Investment securities - held-to-maturity		51,720			53,968			40,927			42,237			47,455
Investment securities - available-for-sale		2,496,896			2,466,640			3,288,343			2,210,931			2,191,573
Mortgage loans held for sale		120,034			49,984			58,102			50,099			34,999
Other assets held for sale		399			115,315			260,332			383			397
Loans:
Loans		14,606,900			14,374,277			14,425,704			13,003,549			13,128,125
Allowance for credit losses on loans		(231,643	)		(243,195	)		(68,244	)		(66,590	)		(64,179	)
Net loans		14,375,257			14,131,082			14,357,460			12,936,959			13,063,946
Premises and equipment		478,896			484,990			492,384			378,678			370,551
Premises held for sale		4,576			-			-			-			-
Foreclosed assets and other real estate owned		14,111			20,805			19,121			19,576			24,761
Interest receivable		79,772			57,039			62,707			53,966			54,781
Bank owned life insurance		256,643			255,197			254,152			234,655			233,345
Goodwill		1,064,765			1,064,978			1,055,520			926,648			926,450
Other intangible assets		117,823			121,673			127,340			101,149			104,096
Other assets		293,071			278,173			241,578			268,219			224,784
Total assets	$	21,903,684		$	20,841,352		$	21,259,143		$	17,758,511		$	17,937,435
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	4,608,098		$	3,572,244		$	3,741,093		$	3,044,330		$	2,954,032
Interest bearing transaction accounts and savings deposits		8,978,045			8,840,678			9,090,878			7,337,571			7,258,005
Time deposits		3,029,975			3,146,811			3,276,969			3,086,108			3,304,176
Total deposits		16,616,118			15,559,733			16,108,940			13,468,009			13,516,213
Federal funds purchased and securities sold under agreements to repurchase		387,025			377,859			150,145			116,536			130,470
Other borrowings		1,393,689			1,396,829			1,297,599			1,098,395			1,324,094
Subordinated notes and debentures		382,604			388,396			388,260			354,223			354,132
Other liabilities held for sale		-			58,405			159,853			-			162
Accrued interest and other liabilities		219,545			214,730			165,422			174,277			142,851
Total liabilities		18,998,981			17,995,952			18,270,219			15,211,440			15,467,922
Stockholders' equity:
Preferred stock		767			767			767			-			-
Common stock		1,090			1,090			1,136			966			966
Surplus		2,029,383			2,026,420			2,117,282			1,708,058			1,705,262
Undivided profits		819,153			778,893			848,848			814,338			747,969
Accumulated other comprehensive income (loss):
Unrealized accretion (depreciation) on AFS securities		54,310			38,230			20,891			23,709			15,316
Total stockholders' equity		2,904,703			2,845,400			2,988,924			2,547,071			2,469,513
Total liabilities and stockholders' equity	$	21,903,684		$	20,841,352		$	21,259,143		$	17,758,511		$	17,937,435

Simmons First National Corporation										SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended		Jun 30		Mar 31		Dec 31			Sep 30		Jun 30
(Unaudited)		2020		2020		2019			2019		2019
($ in thousands, except per share data)
INTEREST INCOME
Loans	$	176,910	$	187,566	$	193,402		$	179,971	$	178,122
Interest bearing balances due from banks and federal funds sold		603		2,441		2,625			1,586		1,121
Investment securities		13,473		18,943		16,962			14,467		15,666
Mortgage loans held for sale		668		281		402			382		332
TOTAL INTEREST INCOME		191,654		209,231		213,391			196,406		195,241
INTEREST EXPENSE
Time deposits		10,803		13,323		16,198			15,573		14,606
Other deposits		7,203		17,954		20,331			21,363		20,190
Federal funds purchased and securities sold under agreements to repurchase		337		759		368			249		257
Other borrowings		4,963		4,877		4,615			5,381		6,219
Subordinated notes and debentures		4,667		4,835		4,813			4,576		4,541
TOTAL INTEREST EXPENSE		27,973		41,748		46,325			47,142		45,813
NET INTEREST INCOME		163,681		167,483		167,066			149,264		149,428
Provision for credit losses		26,915		26,134		4,903			21,973		7,079
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		136,766		141,349		162,163			127,291		142,349
NON-INTEREST INCOME
Trust income		7,253		7,151		7,430			6,108		5,794
Service charges on deposit accounts		8,570		13,328		13,332			10,825		10,557
Other service charges and fees		1,489		1,588		1,915			1,308		1,312
Mortgage lending income		12,459		5,046		4,029			4,509		3,656
SBA lending income		245		296		321			956		895
Investment banking income		571		877		822			513		360
Debit and credit card fees		7,996		7,914		8,920			7,059		7,212
Bank owned life insurance income		1,445		1,298		1,411			1,302		1,260
Gain on sale of securities, net		390		32,095		377			7,374		2,823
Other income		9,809		12,801		7,073			44,721		6,065
TOTAL NON-INTEREST INCOME		50,227		82,394		45,630			84,675		39,934
NON-INTEREST EXPENSE
Salaries and employee benefits		57,644		67,924		63,235			52,065		56,128
Occupancy expense, net		9,217		9,510		9,272			8,342		6,919
Furniture and equipment expense		6,144		5,723		5,758			4,898		4,206
Other real estate and foreclosure expense		274		325		1,089			1,125		591
Deposit insurance		2,838		2,475		(134	)		-		2,510
Merger-related costs		1,830		1,068		24,831			2,556		7,522
Other operating expenses		34,651		38,788		38,044			37,879		32,867
TOTAL NON-INTEREST EXPENSE		112,598		125,813		142,095			106,865		110,743
NET INCOME BEFORE INCOME TAXES		74,395		97,930		65,698			105,101		71,540
Provision for income taxes		15,593		20,694		12,976			23,275		15,616
NET INCOME		58,802		77,236		52,722			81,826		55,924
Preferred stock dividends		13		13		13			-		326
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	58,789	$	77,223	$	52,709		$	81,826	$	55,598
BASIC EARNINGS PER SHARE	$	0.54	$	0.68	$	0.49		$	0.85	$	0.58
DILUTED EARNINGS PER SHARE	$	0.54	$	0.68	$	0.49		$	0.84	$	0.58

Simmons First National Corporation													SFNC
Consolidated Risk-Based Capital
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2020			2020			2019			2019			2019
($ in thousands)
Tier 1 capital
Stockholders' equity	$	2,904,703		$	2,845,400		$	2,988,924		$	2,547,071		$	2,469,513
CECL transition provision (1)		130,480			134,558			-			-			-
Disallowed intangible assets, net of deferred tax		(1,160,385	)		(1,164,038	)		(1,160,079	)		(1,013,309	)		(1,001,676	)
Unrealized (gain) loss on AFS securities		(54,310	)		(38,230	)		(20,891	)		(23,709	)		(15,316	)
Total Tier 1 capital		1,820,488			1,777,690			1,807,954			1,510,053			1,452,521
Tier 2 capital
Trust preferred securities and subordinated debt		382,604			388,396			388,260			354,223			354,132
Qualifying allowance for loan losses and reserve for unfunded commitments		83,780			96,015			76,644			74,455			72,044
Total Tier 2 capital		466,384			484,411			464,904			428,678			426,176
Total risk-based capital	$	2,286,872		$	2,262,101		$	2,272,858		$	1,938,731		$	1,878,697
Risk weighted assets	$	15,362,175		$	16,012,233		$	16,554,081		$	14,725,571		$	14,825,253
Adjusted average assets for leverage ratio	$	20,742,824		$	19,832,219		$	18,852,798		$	16,681,527		$	16,382,520
Ratios at end of quarter
Equity to assets		13.26	%		13.65	%		14.06	%		14.34	%		13.77	%
Tangible common equity to tangible assets (2)		8.31	%		8.44	%		8.99	%		9.08	%		8.51	%
Common equity Tier 1 ratio (CET1)		11.85	%		11.10	%		10.92	%		10.25	%		9.80	%
Tier 1 leverage ratio		8.78	%		8.96	%		9.59	%		9.05	%		8.87	%
Tier 1 risk-based capital ratio		11.85	%		11.10	%		10.92	%		10.25	%		9.80	%
Total risk-based capital ratio		14.89	%		14.13	%		13.73	%		13.17	%		12.67	%
(1) The Company has elected to use the CECL transition provision allowed for in the year of adopting ASC 326.
(2) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation									SFNC
Consolidated Investment Securities
For the Quarters Ended	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30
(Unaudited)	2020		2020		2019		2019		2019
($ in thousands)
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies	$	-	$	-	$	-	$	-	$	999
Mortgage-backed securities		25,980		27,121		10,796		11,549		12,225
State and political subdivisions		24,777		25,985		27,082		28,692		32,236
Other securities		963		862		3,049		1,996		1,995
Total held-to-maturity (net of credit losses)		51,720		53,968		40,927		42,237		47,455
Available-for-Sale
U.S. Treasury	$	-	$	424,989	$	449,729	$	-	$	-
U.S. Government agencies		210,921		161,289		194,249		178,139		197,656
Mortgage-backed securities		1,154,086		1,179,837		1,742,945		1,337,794		1,345,760
State and political subdivisions		1,054,068		678,243		880,524		681,202		636,558
Other securities		77,821		22,282		20,896		13,796		11,599
Total available-for-sale (net of credit losses)		2,496,896		2,466,640		3,288,343		2,210,931		2,191,573
Total investment securities (net of credit losses)	$	2,548,616	$	2,520,608	$	3,329,270	$	2,253,168	$	2,239,028
Fair value - HTM investment securities	$	53,751	$	55,714	$	41,855	$	43,302	$	48,640
Investment Securities - QTD Average
Taxable securities	$	1,642,083	$	2,324,188	$	1,940,755	$	1,561,308	$	1,641,986
Tax exempt securities		866,944		900,223		825,000		681,505		624,898
Total investment securities - QTD average	$	2,509,027	$	3,224,411	$	2,765,755	$	2,242,813	$	2,266,884

Simmons First National Corporation									SFNC
Consolidated Loans
For the Quarters Ended	Jun 30		Mar 31		Dec 31		Sep 30		Jun 30
(Unaudited)	2020		2020		2019		2019		2019
($ in thousands)
Loan Portfolio - End of Period
Consumer
Credit cards	$	184,348	$	188,596	$	204,802	$	195,083	$	187,919
Other consumer		214,024		267,870		249,195		215,283		216,144
Total consumer		398,372		456,466		453,997		410,366		404,063
Real Estate
Construction		2,010,256		2,024,118		2,248,673		2,081,595		1,975,179
Single-family residential		2,207,087		2,343,543		2,414,753		1,951,842		1,998,655
Other commercial real estate		6,316,444		6,466,104		6,358,514		5,758,511		5,983,488
Total real estate		10,533,787		10,833,765		11,021,940		9,791,948		9,957,322
Commercial
Commercial		3,038,216		2,314,472		2,451,119		2,215,539		2,249,078
Agricultural		217,715		191,535		191,525		214,610		192,988
Total commercial		3,255,931		2,506,007		2,642,644		2,430,149		2,442,066
Other		418,810		578,039		307,123		371,086		324,674
Total Loans	$	14,606,900	$	14,374,277	$	14,425,704	$	13,003,549	$	13,128,125

Simmons First National Corporation													SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2020			2020			2019			2019			2019
($ in thousands)
Allowance for Credit Losses on Loans
Beginning balance, prior to adoption of ASC 326				$	68,244		$	66,590		$	64,179		$	60,555
Impact of adopting ASC 326 (1)					151,377
Beginning balance, after adoption of ASC 326	$	243,195		$	219,621
Loans charged off
Credit cards		1,053			1,441			1,287			1,117			1,039
Other consumer		592			1,379			1,425			1,065			964
Real estate		1,824			396			892			1,367			1,216
Commercial		35,687			523			459			17,778			1,963
Total loans charged off		39,156			3,739			4,063			21,327			5,182
Recoveries of loans previously charged off
Credit cards		272			225			287			223			271
Other consumer		301			443			304			1,422			331
Real estate		253			101			146			55			158
Commercial		98			347			77			65			967
Total recoveries		924			1,116			814			1,765			1,727
Net loans charged off		38,232			2,623			3,249			19,562			3,455
Provision for credit losses on loans		26,678			26,197			4,903			21,973			7,079
Balance, end of quarter	$	231,641		$	243,195		$	68,244		$	66,590		$	64,179
Non-performing assets
Non-performing loans
Nonaccrual loans	$	131,888		$	156,746		$	91,723		$	84,660		$	106,670
Loans past due 90 days or more		537			1,305			855			177			277
Total non-performing loans		132,425			158,051			92,578			84,837			106,947
Other non-performing assets
Foreclosed assets and other real estate owned		14,111			20,805			19,121			19,576			24,761
Other non-performing assets		2,008			2,169			1,964			540			613
Total other non-performing assets		16,119			22,974			21,085			20,116			25,374
Total non-performing assets	$	148,544		$	181,025		$	113,663		$	104,953		$	132,321
Performing TDRs (troubled debt restructurings)	$	3,960		$	4,110		$	4,411		$	6,519		$	6,246
Ratios
Allowance for credit losses to total loans		1.59	%		1.69	%		0.47	%		0.51	%		0.49	%
Allowance for credit losses to non-performing loans		175	%		154	%		74	%		78	%		60	%
Non-performing loans to total loans		0.91	%		1.10	%		0.64	%		0.65	%		0.81	%
Non-performing assets (including performing TDRs) to total assets		0.70	%		0.89	%		0.56	%		0.63	%		0.77	%
Non-performing assets to total assets		0.68	%		0.87	%		0.53	%		0.59	%		0.74	%
Annualized net charge offs to total loans		1.04	%		0.07	%		0.09	%		0.59	%		0.11	%
Annualized net credit card charge offs to total credit card loans		1.67	%		2.29	%		1.99	%		1.82	%		1.63	%
(1) The Company adopted ASC 326.effective January 1, 2020.
.

Simmons First National Corporation																			SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
	Three Months Ended Jun 2020							Three Months Ended Mar 2020							Three Months Ended Jun 2019
($ 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	$	2,190,878	$	603	0.11	%		$	764,639	$	2,441	1.28	%		$	276,370	$	1,121	1.63	%
Investment securities - taxable		1,642,083		7,131	1.75	%			2,324,188		12,752	2.21	%			1,641,986		11,066	2.70	%
Investment securities - non-taxable (FTE)		866,944		8,434	3.91	%			900,223		8,315	3.71	%			624,898		6,209	3.99	%
Mortgage loans held for sale		86,264		668	3.11	%			43,588		281	2.59	%			32,030		332	4.16	%
Loans (FTE)		14,731,306		177,168	4.84	%			14,548,853		187,747	5.19	%			12,814,386		178,219	5.58	%
Total interest earning assets (FTE)		19,517,475		194,004	4.00	%			18,581,491		211,536	4.58	%			15,389,670		196,947	5.13	%
Non-earning assets		2,304,798							2,338,732							1,993,202
Total assets	$	21,822,273						$	20,920,223						$	17,382,872
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and savings accounts	$	9,138,563	$	7,203	0.32	%		$	9,005,701	$	17,954	0.80	%		$	7,139,356	$	20,190	1.13	%
Time deposits		3,057,153		10,803	1.42	%			3,150,909		13,323	1.70	%			3,072,246		14,606	1.91	%
Total interest bearing deposits		12,195,716		18,006	0.59	%			12,156,610		31,277	1.03	%			10,211,602		34,796	1.37	%
Federal funds purchased and securities sold under agreement to repurchase		392,633		337	0.35	%			330,902		759	0.92	%			133,242		257	0.77	%
Other borrowings		1,395,109		4,963	1.43	%			1,320,245		4,877	1.49	%			1,277,450		6,219	1.95	%
Subordinated notes and debentures		387,422		4,667	4.84	%			388,330		4,835	5.01	%			354,088		4,541	5.14	%
Total interest bearing liabilities		14,370,880		27,973	0.78	%			14,196,087		41,748	1.18	%			11,976,382		45,813	1.53	%
Non-interest bearing liabilities:
Non-interest bearing deposits		4,354,781							3,602,678							2,834,452
Other liabilities		216,508							251,514							207,500
Total liabilities		18,942,169							18,050,279							15,018,334
Stockholders' equity		2,880,104							2,869,944							2,364,538
Total liabilities and stockholders' equity	$	21,822,273						$	20,920,223						$	17,382,872
Net interest income (FTE)			$	166,031						$	169,788						$	151,134
Net interest spread (FTE)					3.22	%						3.40	%						3.60	%
Net interest margin (FTE) - quarter-to-date					3.42	%						3.68	%						3.94	%
Net interest margin (FTE) - year-to-date					3.55	%						3.68	%						3.90	%
Core net interest margin (FTE) - quarter-to-date (1)					3.18	%						3.42	%						3.67	%
Core loan yield (FTE) - quarter-to-date (1)					4.52	%						4.86	%						5.26	%
Core net interest margin (FTE) - year-to-date (1)					3.30	%						3.42	%						3.68	%
Core loan yield (FTE) - year-to-date (1)					4.69	%						4.86	%						5.27	%
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation													SFNC
Consolidated - Selected Financial Data
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2020			2020			2019			2019			2019
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income	$	58,789		$	77,223		$	52,709		$	81,826		$	55,598
Diluted earnings per share		0.54			0.68			0.49			0.84			0.58
Return on average assets		1.08	%		1.48	%		1.04	%		1.83	%		1.28	%
Return on average common equity		8.21	%		10.83	%		8.01	%		13.70	%		9.48	%
Return on tangible common equity		14.55	%		19.00	%		14.62	%		24.89	%		17.40	%
Net interest margin (FTE)		3.42	%		3.68	%		3.78	%		3.82	%		3.94	%
FTE adjustment		2,350			2,305			2,172			1,843			1,706
Amortization of intangibles		3,369			3,413			3,270			2,947			2,947
Amortization of intangibles, net of taxes		2,489			2,521			2,416			2,176			2,177
Average diluted shares outstanding		109,130,866			113,137,223			108,472,559			96,968,775			96,367,857
Shares repurchased under plan		-			4,922,336			390,000			-			-
Average price of shares repurchased		-			18.96			25.95			-			-
Cash dividends declared per common share		0.17			0.17			0.16			0.16			0.16
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)	$	60,147		$	73,838		$	71,074		$	83,963		$	65,453
Core diluted earnings per share (1)		0.55			0.65			0.66			0.87			0.68
Core net interest margin (FTE) (2)		3.18	%		3.42	%		3.44	%		3.59	%		3.67	%
Accretable yield on acquired loans		11,723			11,837			15,100			9,322			10,162
Efficiency ratio (1)		49.12	%		56.38	%		52.63	%		43.77	%		49.88	%
Core return on average assets (1)		1.11	%		1.42	%		1.41	%		1.88	%		1.51	%
Core return on average common equity (1)		8.40	%		10.35	%		10.80	%		14.06	%		11.16	%
Core return on tangible common equity (1)		14.87	%		18.19	%		19.49	%		25.52	%		20.36	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income	$	136,012		$	77,223		$	237,828		$	185,119		$	103,293
Diluted earnings per share		1.22			0.68			2.41			1.94			1.09
Return on average assets		1.28	%		1.48	%		1.33	%		1.44	%		1.24	%
Return on average common equity		9.45	%		10.83	%		9.93	%		10.65	%		9.05	%
Return on tangible common equity		16.57	%		19.00	%		17.99	%		19.27	%		16.38	%
Net interest margin (FTE)		3.55	%		3.68	%		3.85	%		3.88	%		3.90	%
FTE adjustment		4,655			2,305			7,322			5,150			3,307
Amortization of intangibles		6,782			3,413			11,805			8,535			5,588
Amortization of intangibles, net of taxes		5,010			2,521			8,720			6,304			4,128
Average diluted shares outstanding		111,083,999			113,137,223			98,796,628			95,450,732			94,588,739
Cash dividends declared per common share		0.34			0.17			0.64			0.48			0.32
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)	$	133,985		$	73,838		$	269,566		$	198,492		$	114,529
Core diluted earnings per share (1)		1.21			0.65			2.73			2.08			1.21
Core net interest margin (FTE) (2)		3.30	%		3.42	%		3.59	%		3.64	%		3.68	%
Accretable yield on acquired loans		23,560			11,837			41,244			26,144			16,822
Efficiency ratio (1)		52.75	%		56.38	%		50.33	%		49.49	%		53.14	%
Core return on average assets (1)		1.26	%		1.42	%		1.51	%		1.55	%		1.37	%
Core return on average common equity (1)		9.31	%		10.35	%		11.25	%		11.42	%		10.04	%
Core return on tangible common equity (1)		16.33	%		18.19	%		20.31	%		20.62	%		18.09	%
END OF PERIOD
Book value per share	$	26.64		$	26.11		$	26.30		$	26.36		$	25.57
Tangible book value per share		15.79			15.22			15.89			15.73			14.90
Shares outstanding		108,994,389			108,966,331			113,628,601			96,613,855			96,590,656
Full-time equivalent employees		2,939			3,079			3,270			2,701			2,700
Total number of financial centers		226			240			251			212			212
(1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.

Simmons First National Corporation													SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP)
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30
(Unaudited)		2020			2020			2019			2019			2019
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	58,789		$	77,223		$	52,709		$	81,826		$	55,598
Non-core items
Gain on sale of branches		(2,204	)		(5,889	)		-			-			-
Merger-related costs		1,830			1,068			24,831			2,556			7,522
Early retirement program		493			-			-			177			2,932
Branch right-sizing		1,721			238			37			160			2,887
Tax effect (1)		(482	)		1,198			(6,503	)		(756	)		(3,486	)
Net non-core items		1,358			(3,385	)		18,365			2,137			9,855
Core earnings (non-GAAP)	$	60,147		$	73,838		$	71,074		$	83,963		$	65,453
Diluted earnings per share	$	0.54		$	0.68		$	0.49		$	0.84		$	0.58
Non-core items
Gain on sale of branches		(0.02	)		(0.05	)		-			-			-
Merger-related costs		0.02			0.01			0.23			0.04			0.08
Early retirement program		-			-			-			-			0.03
Branch right-sizing		0.02			-			-			-			0.03
Tax effect (1)		(0.01	)		0.01			(0.06	)		(0.01	)		(0.04	)
Net non-core items		0.01			(0.03	)		0.17			0.03			0.10
Core diluted earnings per share (non-GAAP)	$	0.55		$	0.65		$	0.66		$	0.87		$	0.68
YEAR-TO-DATE
Net Income	$	136,012		$	77,223		$	237,828		$	185,119		$	103,293
Non-core items
Gain on sale of branches		(8,093	)		(5,889	)		-			-			-
Merger-related costs		2,898			1,068			36,379			11,548			8,992
Early retirement program		493			-			3,464			3,464			3,287
Branch right-sizing		1,959			238			3,129			3,092			2,932
Tax effect (1)		716			1,198			(11,234	)		(4,731	)		(3,975	)
Net non-core items		(2,027	)		(3,385	)		31,738			13,373			11,236
Core earnings (non-GAAP)	$	133,985		$	73,838		$	269,566		$	198,492		$	114,529
Diluted earnings per share	$	1.22		$	0.68		$	2.41		$	1.94		$	1.09
Non-core items
Gain on sale of branches		(0.07	)		(0.05	)		-			-			-
Merger-related costs		0.03			0.01			0.37			0.12			0.10
Early retirement program		-			-			0.03			0.04			0.03
Branch right-sizing		0.02			-			0.03			0.03			0.03
Tax effect (1)		0.01			0.01			(0.11	)		(0.05	)		(0.04	)
Net non-core items		(0.01	)		(0.03	)		0.32			0.14			0.12
Core diluted earnings per share (non-GAAP)	$	1.21		$	0.65		$	2.73		$	2.08		$	1.21
(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	$	9,809		$	12,801		$	7,073		$	44,721		$	6,065
Non-core items (1)		(2,204	)		(5,889	)		-			-			-
Core other income (non-GAAP)	$	7,605		$	6,912		$	7,073		$	44,721		$	6,065
Non-interest expense	$	112,598		$	125,813		$	142,095		$	106,865		$	110,743
Non-core items (1)		(4,044	)		(1,306	)		(24,868	)		(2,893	)		(13,341	)
Core non-interest expense (non-GAAP)	$	108,554		$	124,507		$	117,227		$	103,972		$	97,402
Salaries and employee benefits	$	57,644		$	67,924		$	63,235		$	52,065		$	56,128
Non-core items (1)		(493	)		-			-			(176	)		(2,937	)
Core salaries and employee benefits (non-GAAP)	$	57,151		$	67,924		$	63,235		$	51,889		$	53,191
Merger related costs	$	1,830		$	1,068		$	24,831		$	2,556		$	7,522
Non-core items (1)		(1,830	)		(1,068	)		(24,831	)		(2,556	)		(7,522	)
Core merger related costs (non-GAAP)	$	-		$	-		$	-		$	-		$	-
Other operating expenses	$	34,651		$	38,788		$	38,044		$	37,881		$	32,867
Non-core items (1)		(1,662	)		(212	)		(4	)		(90	)		(2,834	)
Core other operating expenses (non-GAAP)	$	32,989		$	38,576		$	38,040		$	37,791		$	30,033
(1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and branch right sizing costs.

Simmons First National Corporation													SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sept 30			Jun 30
(Unaudited)		2020			2020			2019			2019			2019
($ 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	$	2,903,936		$	2,844,633		$	2,988,157		$	2,547,071		$	2,469,513
Intangible assets:
Goodwill		(1,064,765	)		(1,064,978	)		(1,055,520	)		(926,648	)		(926,450	)
Other intangible assets		(117,823	)		(121,673	)		(127,340	)		(101,149	)		(104,096	)
Total intangibles		(1,182,588	)		(1,186,651	)		(1,182,860	)		(1,027,797	)		(1,030,546	)
Tangible common stockholders' equity	$	1,721,348		$	1,657,982		$	1,805,297		$	1,519,274		$	1,438,967
Total assets	$	21,903,684		$	20,841,352		$	21,259,143		$	17,758,511		$	17,937,435
Intangible assets:
Goodwill		(1,064,765	)		(1,064,978	)		(1,055,520	)		(926,648	)		(926,450	)
Other intangible assets		(117,823	)		(121,673	)		(127,340	)		(101,149	)		(104,096	)
Total intangibles		(1,182,588	)		(1,186,651	)		(1,182,860	)		(1,027,797	)		(1,030,546	)
Tangible assets	$	20,721,096		$	19,654,701		$	20,076,283		$	16,730,714		$	16,906,889
Paycheck protection program ("PPP") loans		(963,712	)
Total assets less PPP loans	$	20,939,972
Tangible assets less PPP loans	$	19,757,384
Ratio of equity to assets		13.26	%		13.65	%		14.06	%		14.34	%		13.77	%
Ratio of equity to assets less PPP loans		13.87	%
Ratio of tangible common equity to tangible assets		8.31	%		8.44	%		8.99	%		9.08	%		8.51	%
Ratio of tangible common equity to tangible assets less PPP loans		8.71	%
Calculation of Tangible Book Value per Share
Total common stockholders' equity	$	2,903,936		$	2,844,633		$	2,988,157		$	2,547,071		$	2,469,513
Intangible assets:
Goodwill		(1,064,765	)		(1,064,978	)		(1,055,520	)		(926,648	)		(926,450	)
Other intangible assets		(117,823	)		(121,673	)		(127,340	)		(101,149	)		(104,096	)
Total intangibles		(1,182,588	)		(1,186,651	)		(1,182,860	)		(1,027,797	)		(1,030,546	)
Tangible common stockholders' equity	$	1,721,348		$	1,657,982		$	1,805,297		$	1,519,274		$	1,438,967
Shares of common stock outstanding		108,994,389			108,966,331			113,628,601			96,613,855			96,590,656
Book value per common share	$	26.64		$	26.11		$	26.30		$	26.36		$	25.57
Tangible book value per common share	$	15.79		$	15.22		$	15.89		$	15.73		$	14.90
Calculation of Regulatory Tier 1 Leverage Ratio Less Average PPP Loans
Total Tier 1 capital	$	1,820,488
Adjusted average assets for leverage ratio	$	20,742,824
Average PPP loans		(645,172	)
Adjusted average assets less average PPP loans	$	20,097,652
Tier 1 leverage ratio		8.78	%
Tier 1 leverage ratio less average PPP loans		9.06	%

Simmons First National Corporation													SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sept 30			Jun 30
(Unaudited)		2020			2020			2019			2019			2019
($ in thousands)
Calculation of Core Return on Average Assets
Net income	$	58,789		$	77,223		$	52,709		$	81,826		$	55,598
Net non-core items, net of taxes, adjustment		1,358			(3,385	)		18,365			2,137			9,855
Core earnings	$	60,147		$	73,838		$	71,074		$	83,963		$	65,453
Average total assets	$	21,822,273		$	20,920,223		$	20,041,890		$	17,720,598		$	17,382,872
Return on average assets		1.08	%		1.48	%		1.04	%		1.83	%		1.28	%
Core return on average assets		1.11	%		1.42	%		1.41	%		1.88	%		1.51	%
Calculation of Return on Tangible Common Equity
Net income	$	58,789		$	77,223		$	52,709		$	81,826		$	55,598
Amortization of intangibles, net of taxes		2,489			2,521			2,416			2,176			2,177
Total income available to common stockholders	$	61,278		$	79,744		$	55,125		$	84,002		$	57,775
Net non-core items, net of taxes		1,358			(3,385	)		18,365			2,137			9,855
Core earnings		60,147			73,838			71,074			83,963			65,453
Amortization of intangibles, net of taxes		2,489			2,521			2,416			2,176			2,177
Total core income available to common stockholders	$	62,636		$	76,359		$	73,490		$	86,139		$	67,630
Average common stockholders' equity	$	2,879,337		$	2,869,177		$	2,611,143		$	2,368,773		$	2,351,603
Average intangible assets:
Goodwill		(1,064,955	)		(1,055,498	)		(997,004	)		(926,687	)		(915,445	)
Other intangibles		(120,111	)		(125,746	)		(118,311	)		(103,028	)		(104,050	)
Total average intangibles		(1,185,066	)		(1,181,244	)		(1,115,315	)		(1,029,715	)		(1,019,495	)
Average tangible common stockholders' equity	$	1,694,271		$	1,687,933		$	1,495,828		$	1,339,058		$	1,332,108
Return on average common equity		8.21	%		10.83	%		8.01	%		13.70	%		9.48	%
Return on tangible common equity		14.55	%		19.00	%		14.62	%		24.89	%		17.40	%
Core return on average common equity		8.40	%		10.35	%		10.80	%		14.06	%		11.16	%
Core return on tangible common equity		14.87	%		18.19	%		19.49	%		25.52	%		20.36	%
Calculation of Efficiency Ratio (1)
Non-interest expense	$	112,598		$	125,813		$	142,095		$	106,865		$	110,743
Non-core non-interest expense adjustment		(4,044	)		(1,306	)		(24,868	)		(2,893	)		(13,341	)
Other real estate and foreclosure expense adjustment		(242	)		(319	)		(1,063	)		(1,057	)		(563	)
Amortization of intangibles adjustment		(3,369	)		(3,413	)		(3,270	)		(2,947	)		(2,947	)
Efficiency ratio numerator	$	104,943		$	120,775		$	112,894		$	99,968		$	93,892
Net-interest income	$	163,681		$	167,483		$	167,066		$	149,264		$	149,428
Non-interest income		50,227			82,394			45,630			84,675			39,934
Fully tax-equivalent adjustment		2,350			2,305			2,172			1,843			1,706
Gain on sale of securities		(390	)		(32,095	)		(377	)		(7,374	)		(2,823	)
Efficiency ratio denominator	$	213,664		$	214,198		$	214,491		$	228,408		$	188,245
Efficiency ratio (1)		49.12	%		56.38	%		52.63	%		43.77	%		49.88	%
(1) Efficiency ratio is 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 - Quarter-to-Date (continued)
For the Quarters Ended	Jun 30			Mar 31			Dec 31			Sept 30			Jun 30
(Unaudited)		2020			2020			2019			2019			2019
($ in thousands)
Calculation of Core Net Interest Margin
Net interest income	$	163,681		$	167,483		$	167,066		$	149,264		$	149,428
Fully tax-equivalent adjustment		2,350			2,305			2,172			1,843			1,706
Fully tax-equivalent net interest income		166,031			169,788			169,238			151,107			151,134
Total accretable yield		(11,723	)		(11,837	)		(15,100	)		(9,322	)		(10,162	)
Core net interest income	$	154,308		$	157,951		$	154,138		$	141,785		$	140,972
PPP loan and excess liquidity interest income		(5,623	)
Core net interest adjusted for PPP loans and liquidity	$	148,685
Average earning assets	$	19,517,475		$	18,581,491		$	17,753,004		$	15,680,665		$	15,389,670
Average PPP loan balance and excess liquidity		(2,071,411	)
Average earning assets adjusted for PPL loans and liquidity	$	17,446,064
Net interest margin		3.42	%		3.68	%		3.78	%		3.82	%		3.94	%
Core net interest margin		3.18	%		3.42	%		3.44	%		3.59	%		3.67	%
Core net interest margin adjusted for PPP loans and liquidity		3.43	%
Calculation of Core Loan Yield
Loan interest income	$	177,168		$	187,566		$	193,402		$	179,971		$	178,122
Total accretable yield		(11,723	)		(11,837	)		(15,100	)		(9,322	)		(10,162	)
Core loan interest income	$	165,445		$	175,729		$	178,302		$	170,649		$	167,960
PPP loan interest income		(3,733	)
Core loan interest income without PPP loans	$	161,712
Average loan balance	$	14,731,306		$	14,548,853		$	14,144,703		$	13,053,540		$	12,814,386
Average PPP loan balance		(645,172	)
Core loan interest income without PPP loans	$	14,086,134
Core loan yield		4.52	%		4.86	%		5.00	%		5.19	%		5.26	%
Core loan yield without PPP loans		4.62	%
Calculation of Pre-Tax, Pre-Provision (PTPP) Earnings
Net income available to common stockholders	$	58,789		$	77,223		$	52,709		$	81,826		$	55,598
Provision for income taxes		15,593			20,694			12,976			23,275			15,616
Provision for credit losses		26,915			26,134			4,903			21,973			7,079
Provision for unfunded commitments		(5,000	)		(3,000	)		-			-			-
(Gain) loss on sale of securities		(390	)		(32,095	)		(377	)		(7,374	)		(2,823	)
Net pre-tax non-core items		1,840			(4,583	)		24,868			2,893			13,341
Pre-tax, pre-provision (PTPP) earnings	$	97,747		$	84,373		$	95,079		$	122,593		$	88,811

Simmons First National Corporation													SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended
(Unaudited)	Jun 30			Mar 31			Dec 31			Sept 30			Jun 30
		2020			2020			2019			2019			2019
($ in thousands)
Calculation of Core Return on Average Assets
Net income	$	136,012		$	77,223		$	237,828		$	185,119		$	103,293
Net non-core items, net of taxes, adjustment		(2,027	)		(3,385	)		31,738			13,373			11,236
Core earnings	$	133,985		$	73,838		$	269,566		$	198,492		$	114,529
Average total assets	$	21,371,248		$	20,920,223		$	17,871,748		$	17,140,419		$	16,845,528
Return on average assets		1.28	%		1.48	%		1.33	%		1.44	%		1.24	%
Core return on average assets		1.26	%		1.42	%		1.51	%		1.55	%		1.37	%
Calculation of Return on Tangible Common Equity
Net income	$	136,012		$	77,223		$	237,828		$	185,119		$	103,293
Amortization of intangibles, net of taxes		5,010			2,521			8,720			6,304			4,128
Total income available to common stockholders	$	141,022		$	79,744		$	246,548		$	191,423		$	107,421
Net non-core items, net of taxes		(2,027	)		(3,385	)		31,738			13,373			11,236
Core earnings		133,985			73,838			269,566			198,492			114,529
Amortization of intangibles, net of taxes		5,010			2,521			8,720			6,304			4,128
Total core income available to common stockholders	$	138,995		$	76,359		$	278,286		$	204,796		$	118,657
Average common stockholders' equity	$	2,894,351		$	2,869,177		$	2,396,024		$	2,323,530		$	2,300,535
Average intangible assets:
Goodwill		(1,060,226	)		(1,055,498	)		(921,635	)		(896,236	)		(880,759	)
Other intangibles		(122,928	)		(125,746	)		(104,000	)		(99,178	)		(97,221	)
Total average intangibles		(1,183,154	)		(1,181,244	)		(1,025,635	)		(995,414	)		(977,980	)
Average tangible common stockholders' equity	$	1,711,197		$	1,687,933		$	1,370,389		$	1,328,116		$	1,322,555
Return on average common equity		9.45	%		10.83	%		9.93	%		10.65	%		9.05	%
Return on tangible common equity		16.57	%		19.00	%		17.99	%		19.27	%		16.38	%
Core return on average common equity		9.31	%		10.35	%		11.25	%		11.42	%		10.04	%
Core return on tangible common equity		16.33	%		18.19	%		20.31	%		20.62	%		18.09	%
Calculation of Efficiency Ratio (1)
Non-interest expense	$	238,411		$	125,813		$	461,112		$	319,017		$	212,152
Non-core non-interest expense adjustment		(5,350	)		(1,306	)		(42,972	)		(18,104	)		(15,211	)
Other real estate and foreclosure expense adjustment		(561	)		(319	)		(3,282	)		(2,219	)		(1,162	)
Amortization of intangibles adjustment		(6,782	)		(3,413	)		(11,805	)		(8,535	)		(5,588	)
Efficiency ratio numerator	$	225,718		$	120,775		$	403,053		$	290,159		$	190,191
Net-interest income	$	331,164		$	167,483		$	601,753		$	434,687		$	285,423
Non-interest income		132,621			82,394			205,031			159,401			74,726
Fully tax-equivalent adjustment		4,655			2,305			7,322			5,150			3,307
Gain on sale of securities		(32,485	)		(32,095	)		(13,314	)		(12,937	)		(5,563	)
Efficiency ratio denominator	$	427,862		$	214,198		$	800,792		$	586,301		$	357,893
Efficiency ratio (1)		52.75	%		56.38	%		50.33	%		49.49	%		53.14	%
Calculation of Core Net Interest Margin
Net interest income	$	331,164		$	167,483		$	601,753		$	434,687		$	285,423
Fully tax-equivalent adjustment		4,655			2,305			7,322			5,150			3,307
Fully tax-equivalent net interest income		335,819			169,788			609,075			439,837			288,730
Total accretable yield		(23,560	)		(11,837	)		(41,244	)		(26,144	)		(16,822	)
Core net interest income	$	312,259		$	157,951		$	567,831		$	413,693		$	271,908
Average earning assets	$	19,049,487		$	18,581,491		$	15,824,571		$	15,174,671		$	14,917,493
Net interest margin		3.55	%		3.68	%		3.85	%		3.88	%		3.90	%
Core net interest margin		3.30	%		3.42	%		3.59	%		3.64	%		3.68	%
Calculation of Core Loan Yield
Loan interest income	$	364,476		$	187,566		$	710,935		$	517,533		$	337,562
Total accretable yield		(23,560	)		(11,837	)		(41,244	)		(26,144	)		(16,822	)
Core loan interest income	$	340,916		$	175,729		$	669,691		$	491,389		$	320,740
Average loan balance	$	14,640,082		$	14,548,853		$	12,938,013		$	12,531,355		$	12,265,936
Core loan yield		4.68	%		4.86	%		5.18	%		5.24	%		5.27	%
(1) Efficiency ratio is 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.