Board of Directors authorizes new $175 million share repurchase program and
approves a 5 percent increase in the quarterly cash
dividend
PINE
BLUFF, Ark., Jan. 24,
2024 /PRNewswire/ -- Bob
Fehlman, Simmons' Chief Executive Officer, commented on
fourth quarter 2023 results:
Overall, we were encouraged by the underlying trends
experienced during the quarter, as well as the strategic decision
we made to selectively sell certain lower yielding bonds in our
securities portfolio given advantageous market conditions. Both net
interest income and net interest margin were up on a linked quarter
basis, reflecting our focus on maintaining strong loan and deposit
pricing discipline. Equally important, deposit growth was driven by
an increase in customer deposits – primarily money market and
savings accounts.
A strong risk profile has always been a key attribute of
Simmons and our results for the quarter continue to bear this out.
Net charge-offs for the quarter were 11 basis points and our
allowance for credit losses on loans to total loans ended the
quarter at 1.34 percent as provision expense exceeded net
charge-offs. Expense growth, other than the impact of a FDIC
special assessment, was also well contained and reflected the
success of our Better Bank Initiative.
As we enter 2024 against a backdrop of economic uncertainty,
we believe certain strategic actions we have taken this past year
position us well to take advantage of opportunities and meet the
challenges ahead.
Financial
Highlights
|
4Q23
|
3Q23
|
4Q22
|
|
4Q 23
Highlights
|
Balance Sheet
(in millions)
|
|
|
|
|
Comparisons reflect
4Q23 vs 3Q23
• Net
income of $23.9 million and diluted EPS of $0.19
• Adjusted
earnings1 of $50.2 million and adjusted diluted
EPS1 of $0.40
• Net
interest income up 1%; Net interest margin 2.68%, up 7
bps
• Total
revenue of $177.6 million; Adjusted total revenue1 of
$197.8 million. PPNR1 of $29.5 million; Adjusted
PPNR1 of $65.1 million
• NCO 11
bps in 4Q23; NCO 12 bps for the full-year 2023
•
Provision for credit losses on loans exceeded net charge-offs in
the quarter by $6.7 million
• ACL
ratio ends the quarter at 1.34%; NPA to total assets ratio at
0.33%, relatively unchanged
• Sold
$241 million of AFS securities; Proceeds used to paydown higher
rate wholesale funding; Earn back period estimated at ~2.5
years
• Book
value per share up 4% and TBVPS1 up 8%
• EA ratio
12.53%; TCE ratio1 up 62 bps to 7.69%
|
Total loans
|
$16,846
|
$16,772
|
$16,142
|
|
Total investment
securities
|
6,878
|
7,101
|
7,613
|
|
Total
deposits
|
22,245
|
22,231
|
22,548
|
|
Total assets
|
27,346
|
27,564
|
27,461
|
|
Total shareholders'
equity
|
3,426
|
3,286
|
3,269
|
|
Asset
Quality
|
|
|
|
|
Net charge-off ratio
(NCO ratio)
|
0.11 %
|
0.28 %
|
0.13 %
|
|
Nonperforming loan
ratio
|
0.50
|
0.49
|
0.37
|
|
Nonperforming assets to
total assets
|
0.33
|
0.32
|
0.23
|
|
Allowance for credit
losses to total loans
|
1.34
|
1.30
|
1.22
|
|
Nonperforming loan
coverage ratio
|
267
|
267
|
334
|
|
Performance
Measures (in millions)
|
|
|
|
|
Total
revenue
|
$177.6
|
$196.2
|
$237.7
|
|
Adjusted total
revenue1
|
197.8
|
196.2
|
233.7
|
|
Pre-provision net
revenue1 (PPNR)
|
29.5
|
64.2
|
95.1
|
|
Adjusted pre-provision
net revenue1
|
65.1
|
66.3
|
92.2
|
|
Provision for credit
losses
|
10.0
|
7.7
|
-
|
|
Per share
Data
|
|
|
|
|
Diluted
earnings
|
$ 0.19
|
$ 0.37
|
$ 0.65
|
|
Adjusted diluted
earnings1
|
0.40
|
0.39
|
0.64
|
|
Book value
|
27.37
|
26.26
|
25.73
|
|
Tangible book
value1 (TBVPS)
|
15.92
|
14.77
|
14.33
|
|
Capital
Ratios
|
|
|
|
|
Equity to assets (EA
ratio)
|
12.53 %
|
11.92 %
|
11.91 %
|
|
Tangible common equity
(TCE) ratio1
|
7.69
|
7.07
|
7.00
|
|
Common equity tier 1
(CET1) ratio
|
12.11
|
12.02
|
11.90
|
|
Total risk-based
capital ratio
|
14.39
|
14.27
|
14.22
|
|
Liquidity ($ in
millions)
|
|
|
|
|
Loan to deposit
ratio
|
75.73 %
|
75.44 %
|
71.59 %
|
|
Borrowed funds to total
liabilities
|
5.88
|
7.37
|
5.73
|
|
Uninsured,
non-collateralized deposits (UCD)
|
$
4,753
|
$
4,631
|
$
5,626
|
|
Additional liquidity
sources
|
11,216
|
11,447
|
10,604
|
|
Coverage ratio of
UCD
|
2.4x
|
2.5x
|
1.9x
|
|
Simmons First National Corporation (NASDAQ:
SFNC) (Simmons or Company) today reported net income of
$23.9 million for the fourth quarter
of 2023, compared to $47.2 million in
the third quarter of 2023 and $83.3
million in the fourth quarter of 2022. Diluted earnings per
share were $0.19 for the fourth
quarter of 2023, compared to $0.37
per share in the third quarter of 2023 and $0.65 per share in the fourth quarter of 2022.
Adjusted earnings1 for the fourth quarter of 2023 were
$50.2 million, compared to
$48.8 million in the third quarter of
2023 and $81.1 million in the fourth
quarter of 2022. Adjusted diluted earnings per share1
for the fourth quarter of 2023 were $0.40, compared to $0.39 in the third quarter of 2023 and
$0.64 in the fourth quarter of
2022.
During the fourth quarter of 2023, we executed a strategic
decision to sell approximately $241
million of low yield available-for-sale (AFS) investment
securities, resulting in a pre-tax loss of approximately
$20.2 million. The proceeds from the
sale were used to pay off higher rate wholesale fundings, including
both brokered deposits and FHLB advances. The earn back period of
this initiative is estimated at approximately 2.5 years. In
addition, during the quarter we also recorded $10.5 million of noninterest expense for a FDIC
special assessment levied to support the Deposit Insurance Fund
following the failure of certain banks in 2023. The table below
summarizes the impact of these items, along with the impact of
other items, consisting primarily of branch right sizing and early
retirement program, and they are also described in further detail
in the "Reconciliation of Non-GAAP Financial Measures" tables
contained in this press release.
Impact of Certain Items on Earnings and Diluted EPS
$ in millions, except
per share data
|
Q4 23
|
Q3 23
|
Q4 22
|
Net
income
|
$
23.9
|
$
47.2
|
$
83.3
|
|
|
|
|
Loss on sale of AFS
investment securities
|
20.2
|
-
|
0.1
|
FDIC special
assessment
|
10.5
|
-
|
-
|
Branch right sizing,
net
|
3.9
|
0.5
|
1.1
|
Early retirement
program
|
1.0
|
1.6
|
-
|
Gain on insurance
settlement
|
-
|
-
|
(4.1)
|
Total
pre-tax impact
|
35.6
|
2.1
|
(2.9)
|
Tax
effect2
|
(9.3)
|
(0.5)
|
0.7
|
Total
impact on earnings
|
26.3
|
1.6
|
(2.2)
|
Adjusted
earnings1
|
$
50.2
|
$
48.8
|
$
81.1
|
|
|
|
|
Diluted
EPS
|
$
0.19
|
$
0.37
|
$
0.65
|
|
|
|
|
Loss on sale of AFS
investment securities
|
0.16
|
-
|
-
|
FDIC special
assessment
|
0.08
|
-
|
-
|
Branch right sizing,
net
|
0.03
|
0.01
|
0.01
|
Early retirement
program
|
0.01
|
0.01
|
-
|
Gain on insurance
settlement
|
-
|
-
|
(0.03)
|
Total
pre-tax impact
|
0.28
|
0.02
|
(0.02)
|
Tax
effect2
|
(0.07)
|
-
|
0.01
|
Total
impact on earnings
|
0.21
|
0.02
|
(0.01)
|
Adjusted Diluted
EPS1
|
$
0.40
|
$
0.39
|
$
0.64
|
Net Interest Income
Net interest income for the fourth quarter of 2023 totaled
$155.6 million, compared to
$153.4 million in the third quarter
of 2023 and $193.0 million in the
fourth quarter of 2022. Interest income totaled $323.5 million in the fourth quarter of 2023, up
$13.2 million on a linked quarter
basis. Interest expense totaled $167.9
million in the fourth quarter of 2023, up $11.0 million on a linked quarter basis. The
increase in net interest income was primarily due to a $5.6 million increase in interest income on
loans, coupled with an $8.1 million
increase in interest income on investment securities, offset in
part by a $10.7 million increase in
interest expense associated with interest bearing deposits.
Included in net interest income is accretion recognized on assets
acquired, which totaled $1.8 million
in the fourth quarter of 2023, $2.1
million in the third quarter of 2023 and $4.5 million in the fourth quarter of 2022.
The yield on loans on a fully taxable equivalent (FTE) basis for
the fourth quarter of 2023 was 6.20 percent, compared to 6.08
percent in the third quarter of 2023 and 5.40 percent in the fourth
quarter of 2022. The yield on investment securities on an FTE basis
for the fourth quarter of 2023 was 3.67 percent, compared to 3.08
percent in the third quarter of 2023 and 2.68 percent in the fourth
quarter of 2022. Costs of deposits for the fourth quarter of 2023
was 2.58 percent, compared to 2.37 percent in the third quarter of
2023 and 1.02 percent in the fourth quarter of 2022. The net
interest margin on an FTE basis for the fourth quarter of 2023 was
2.68 percent, compared to 2.61 percent in the third quarter of 2023
and 3.31 percent in the fourth quarter of 2022.
Select
Yield/Rates
|
Q4 23
|
Q3 23
|
Q2 23
|
Q1 23
|
Q4 22
|
Loan yield
(FTE)2
|
6.20 %
|
6.08 %
|
5.89 %
|
5.67 %
|
5.40 %
|
Investment securities
yield (FTE)2
|
3.67
|
3.08
|
2.91
|
2.92
|
2.68
|
Cost of interest
bearing deposits
|
3.31
|
3.06
|
2.57
|
2.10
|
1.41
|
Cost of
deposits
|
2.58
|
2.37
|
1.96
|
1.58
|
1.02
|
Cost of borrowed
funds
|
5.79
|
5.60
|
5.31
|
4.29
|
3.92
|
Net interest spread
(FTE)2
|
1.93
|
1.87
|
2.10
|
2.52
|
2.87
|
Net interest margin
(FTE)2
|
2.68
|
2.61
|
2.76
|
3.09
|
3.31
|
Noninterest Income
Noninterest income for the fourth quarter of 2023 was
$22.0 million, compared to
$42.8 million in the third quarter of
2023 and $44.6 million in the fourth
quarter of 2022. Included in the fourth quarter of 2023 was a
$20.2 million loss on the strategic
sale of AFS investment securities. Excluding this item, adjusted
noninterest income1 was $42.2
million in the fourth quarter of 2023, compared to
$42.8 million in the third quarter of
2023. Adjusted noninterest income1 for the fourth
quarter of 2022 was $40.6
million.
Noninterest
Income
$ in
millions
|
Q4 23
|
Q3 23
|
Q2 23
|
Q1 23
|
Q4 22
|
Service charges on
deposit accounts
|
$ 12.8
|
$ 12.4
|
$ 12.9
|
$ 12.4
|
11.9
|
Wealth management
fees
|
7.7
|
7.7
|
7.4
|
7.4
|
8.2
|
Debit and credit card
fees
|
7.8
|
7.7
|
8.0
|
8.0
|
7.8
|
Mortgage lending
income
|
1.6
|
2.2
|
2.4
|
1.6
|
1.1
|
Other service charges
and fees
|
2.3
|
2.2
|
2.3
|
2.3
|
2.0
|
Bank owned life
insurance
|
3.1
|
3.1
|
2.6
|
3.0
|
3.0
|
Gain (loss) on sale of
securities
|
(20.2)
|
-
|
(0.4)
|
-
|
(0.1)
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
4.1
|
Other income
|
6.9
|
7.4
|
9.8
|
11.3
|
6.6
|
Total
noninterest income
|
$ 22.0
|
$ 42.8
|
$ 45.0
|
$ 45.8
|
$ 44.6
|
|
|
|
|
|
|
Adjusted noninterest
income1
|
$ 42.2
|
$ 42.8
|
$ 45.4
|
$ 45.8
|
$ 40.6
|
Noninterest Expense
Noninterest expense for the fourth quarter of 2023 was
$148.1 million, compared to
$132.0 million in the third quarter
of 2023 and $142.6 million in the
fourth quarter of 2022. Included in noninterest expense are certain
items consisting primarily of early retirement program, branch
right sizing and merger related costs, as well as a FDIC special
assessment recorded in the fourth quarter of 2023. These items
totaled $15.4 million in the fourth
quarter of 2023, $2.1 million in the
third quarter of 2023 and $1.1
million in the fourth quarter of 2022. Excluding these items
(which are described in the "Reconciliation of Non-GAAP Financial
Measures" tables below), adjusted noninterest expense1
was $132.7 million in the fourth
quarter of 2023, $129.9 million in
the third quarter of 2023 and $141.4
million in the fourth quarter of 2022. The increase in
noninterest expense on a linked quarter basis was primarily the
result of the FDIC special assessment, branch right sizing and
early retirement program costs. The increase in adjusted
noninterest expense1 on a linked quarter basis was
primarily due to sundry items included in other operating
expenses.
Provision for income taxes for the fourth quarter of 2023 was
$(4.5) million, compared to
$9.2 million in the third quarter of
2023 and $11.8 million in the fourth
quarter of 2022. Provision for income taxes in the fourth quarter
of 2023 reflected an effective tax rate adjustment based on the
level of taxable income primarily due to the FDIC special
assessment and loss on sale of securities.
Noninterest
Expense
$ in
millions
|
Q4 23
|
Q3 23
|
Q2 23
|
Q1 23
|
Q4 22
|
Salaries and employee
benefits
|
$ 67.0
|
$
67.4
|
$ 74.7
|
$ 77.0
|
$ 73.0
|
Occupancy expense,
net
|
11.7
|
12.0
|
11.4
|
11.6
|
11.6
|
Furniture and
equipment
|
5.4
|
5.1
|
5.1
|
5.1
|
5.4
|
Deposit
insurance
|
4.7
|
4.7
|
5.2
|
4.9
|
3.7
|
Other real estate and
foreclosure expense
|
0.2
|
0.2
|
0.3
|
0.2
|
0.4
|
Merger related
costs
|
-
|
-
|
-
|
1.4
|
-
|
FDIC special
assessment
|
10.5
|
-
|
-
|
-
|
-
|
Other operating
expenses
|
48.6
|
42.6
|
42.9
|
43.1
|
48.5
|
Total
noninterest expense
|
$148.1
|
$132.0
|
$139.7
|
$143.2
|
$142.6
|
|
|
|
|
|
|
Adjusted salaries and
employee benefits1
|
$
66.0
|
$ 65.8
|
$ 71.1
|
$
77.0
|
$ 73.0
|
Adjusted other
operating expenses1
|
44.9
|
42.1
|
43.0
|
42.3
|
47.5
|
Adjusted noninterest
expense1
|
132.7
|
129.9
|
136.0
|
140.9
|
141.4
|
Efficiency
ratio
|
80.46 %
|
65.11 %
|
65.18 %
|
62.28 %
|
58.33 %
|
Adjusted efficiency
ratio1
|
62.91
|
61.94
|
61.29
|
59.38
|
56.97
|
Full-time equivalent
employees
|
3,007
|
3,005
|
3,066
|
3,189
|
3,236
|
Loans and Unfunded Loan Commitments
Total loans at the end of the fourth quarter of 2023 were
$16.8 billion, up $704 million, or 4 percent, compared to
$16.1 billion at the end of the
fourth quarter of 2022. Total loans on a linked quarter basis
increased $74 million, reflecting
moderating demand, as well as our focus on maintaining disciplined
pricing strategies and our conservative underwriting standards
given projections surrounding near-term future economic activity
and conditions. Unfunded commitments at the end of the fourth
quarter of 2023 were $3.9 billion,
compared to $4.0 billion at the end
of the third quarter of 2023 and $5.0
billion at the end of the fourth quarter of 2022. At the
same time, our commercial loan pipeline experienced measured growth
for the second consecutive quarter. Commercial loans ready to close
at the end of the fourth quarter of 2023 were $416 million, and the rate on ready to close
commercial loans was 8.44 percent.
Loans and Unfunded
Commitments
$ in
millions
|
Q4 23
|
Q3 23
|
Q2 23
|
Q1 23
|
Q4 22
|
Total loans
|
$16,846
|
$16,772
|
$16,834
|
$16,555
|
$16,142
|
Unfunded loan
commitments
|
3,880
|
4,049
|
4,443
|
4,725
|
5,000
|
Deposits
Total deposits at the end of the fourth quarter of 2023 were
$22.2 billion, compared to
$22.5 billion at the end of the
fourth quarter of 2022. On a linked quarter basis, total deposits
were up slightly, driven by increased levels of interest bearing
transaction accounts (interest bearing checking, money market and
savings accounts) and time deposits, offset primarily by a decrease
in brokered deposits. Noninterest bearing deposits totaled
$4.8 billion, compared to
$5.0 billion at the end of the third
quarter of 2023. Interest bearing transaction accounts totaled
$10.3 billion at the end of the
fourth quarter of 2023, compared to $9.9
billion at the end of the third quarter of 2023. Time
deposits totaled $4.3 billion,
compared to $4.1 billion at the end
of the third quarter of 2023. Brokered deposits totaled
$2.9 billion at the end of the fourth
quarter of 2023, compared to $3.3
billion at the end of the third quarter of 2023. The
loan-to-deposit ratio at the end of the fourth quarter of 2023 was
76 percent, compared to 75 percent at the end of the third quarter
of 2023 and 72 percent at the end of the fourth quarter of
2022.
Deposits
$ in
millions
|
Q4 23
|
Q3 23
|
Q2 23
|
Q1 23
|
Q4 22
|
Noninterest bearing
deposits
|
$
4,801
|
$
4,991
|
$
5,265
|
$
5,489
|
$
6,017
|
Interest bearing
transaction accounts
|
10,277
|
9,875
|
10,203
|
10,625
|
10,936
|
Time
deposits
|
4,266
|
4,103
|
3,784
|
3,385
|
2,849
|
Brokered
deposits
|
2,901
|
3,262
|
3,237
|
2,953
|
2,746
|
Total
deposits
|
$22,245
|
$22,231
|
$22,489
|
$22,452
|
$22,548
|
|
|
|
|
|
|
Noninterest bearing
deposits to total deposits
|
22 %
|
22 %
|
23 %
|
24 %
|
27 %
|
Total loans to total
deposits
|
76
|
75
|
75
|
74
|
72
|
Asset Quality
Total nonperforming loans at the end of the fourth quarter of
2023 were $84.5 million, compared to
$81.9 million at the end of the third
quarter of 2023 and $58.9 million at
the end of the fourth quarter of 2022. Total nonperforming assets
as a percentage of total assets were 0.33 percent at the end of the
fourth quarter of 2023, compared to 0.32 percent at the end of the
third quarter of 2023 and 0.23 percent at the end of the fourth
quarter of 2022. Activity in the quarter included the remaining
$6.7 million payoff of a commercial
credit originally totaling approximately $9.6 million that was placed on nonaccrual status
during the second quarter of 2023, thus resulting in no loss of
principal or interest to the company. Net charge-offs as a
percentage of average loans for the fourth quarter of 2023 were 11
basis points, compared to 28 basis points in the third quarter of
2023 and 13 basis points in the fourth quarter of 2022. For the
full-year of 2023, net charge-offs as a percentage of average loans
were 12 basis points, compared to 9 basis points for the full-year
of 2022.
Provision for credit losses totaled $10.0
million in the fourth quarter of 2023, compared to
$7.7 million in the third quarter of
2023 and less than $1.0 million in
the fourth quarter of 2022. Included in provision for credit losses
was the recapture of provision expense related to investment
securities totaling $1.2 million in
both the third quarter and fourth quarter of 2023. The increase in
provision for credit losses on a linked quarter and year-over-year
basis reflected in part increased activity in the loan portfolio,
as well as changes in macroeconomic conditions and variables. The
allowance for credit losses at the end of the fourth quarter of
2023 was $225.2 million, compared to
$218.5 million at the end of the
third quarter of 2023 and $197.0
million at the end of the fourth quarter of 2022. The
allowance for credit losses as a percentage of total loans at the
end of the fourth quarter of 2023 was 1.34 percent, compared to
1.30 percent at the end of the third quarter of 2023 and 1.22
percent at the end of the fourth quarter of 2022. The nonperforming
loan coverage ratio ended the quarter at 267 percent, and the
reserve for unfunded commitments totaled $25.6 million, both unchanged from third quarter
2023 levels.
Asset
Quality
$ in
millions
|
Q4 23
|
Q3 23
|
Q2 23
|
Q1 23
|
Q4 22
|
Allowance for credit
losses on loans to total loans
|
1.34 %
|
1.30 %
|
1.25 %
|
1.25 %
|
1.22 %
|
Allowance for credit
losses on loans to nonperforming loans
|
267
|
267
|
292
|
324
|
334
|
Nonperforming loans to
total loans
|
0.50
|
0.49
|
0.43
|
0.38
|
0.37
|
Net charge-off ratio
(annualized)
|
0.11
|
0.28
|
0.04
|
0.03
|
0.13
|
Net charge-off ratio
YTD (annualized)
|
0.12
|
0.12
|
0.04
|
0.03
|
0.09
|
|
|
|
|
|
|
Total nonperforming
loans
|
$84.5
|
$81.9
|
$72.0
|
$63.7
|
$58.9
|
Total other
nonperforming assets
|
5.8
|
5.2
|
4.9
|
7.7
|
3.6
|
Total
nonperforming assets
|
$90.3
|
$87.1
|
$76.9
|
$71.4
|
$62.5
|
|
|
|
|
|
|
Reserve for unfunded
commitments
|
$25.6
|
$25.6
|
$36.9
|
$41.9
|
$41.9
|
Capital
Total common stockholders' equity at the end of the fourth
quarter of 2023 was $3.4 billion,
compared to $3.3 billion at the end
of both the third quarter of 2023 and the fourth quarter of 2022.
Book value per share at the end of the fourth quarter of 2023 was
$27.37, an increase of $1.11, or 4 percent, compared to $26.26 at the end of the third quarter of 2023
and an increase of $1.64, or 6
percent, compared to $25.73 at the
end of the fourth quarter of 2022. Tangible book value per
share1 at the end of the fourth quarter of 2023 was
$15.92, an increase of $1.15, or 8 percent, compared to $14.77 at the end of the third quarter of 2023
and an increase of $1.59, or 11
percent, compared to $14.33 at the
end of the fourth quarter of 2022.
Stockholders' equity as a percentage of total assets at
December 31, 2023, was 12.5 percent,
compared to 11.9 percent at September 30,
2023 and at December 31, 2022.
Tangible common equity as a percentage of tangible
assets1 was 7.7 percent at December 31, 2023, compared to 7.1 percent at
September 30, 2023, and 7.0 percent
at December 31, 2022. Simmons
continued to maintain a strong regulatory capital position with all
regulatory capital ratios significantly exceeding "well
capitalized" guidelines.
Share Repurchase Program and Cash Dividend
As a result of the Company's strong capital position and ability
to organically generate capital, the Company's board of directors
declared a quarterly cash dividend on the Company's Class A common
stock of $0.21 per share, which is
payable on April 1, 2024, to
shareholders of record as of March 15,
2024. The cash dividend rate represents an increase of
$0.01 per share, or 5 percent, from
the dividend paid for the same time period last year.
During the fourth quarter of 2023, Simmons did not repurchase
any shares of its Class A common stock under its 2022 stock
repurchase program (2022 Program). With the 2022 Program set to
terminate on January 31, 2024, the
Company also announced today that its Board of Directors has
authorized a new stock repurchase program (New Program) under which
the Company may repurchase up to $175,000,000 of its Class A common stock
currently issued and outstanding. The New Program replaces
the 2022 Program.
Under the New Program, the Company may repurchase shares of its
common stock through open market and privately negotiated
transactions or otherwise. The timing, pricing, and amount of any
repurchases under the New Program will be determined by the
Company's management at its discretion based on a variety of
factors, including, but not limited to, trading volume and market
price of the Company's common stock, corporate considerations, the
Company's working capital and investment requirements, general
market and economic conditions, and legal requirements. The New
Program does not obligate the Company to repurchase any common
stock and may be modified, discontinued, or suspended at any time
without prior notice. The Company anticipates funding for the New
Program to come from available sources of liquidity, including cash
on hand and future cash flow. The New Program will terminate
on January 31, 2026 (unless
terminated sooner).
Select Capital
Ratios
|
Q4 23
|
Q3 23
|
Q2 23
|
Q1 23
|
Q4 22
|
Stockholders' equity to
total assets
|
12.5 %
|
11.9 %
|
12.0 %
|
12.1 %
|
11.9 %
|
Tangible common equity
to tangible assets1
|
7.7
|
7.1
|
7.2
|
7.3
|
7.0
|
Common equity tier 1
(CET1) ratio
|
12.1
|
12.0
|
11.9
|
11.9
|
11.9
|
Tier 1 leverage
ratio
|
9.4
|
9.3
|
9.2
|
9.2
|
9.3
|
Tier 1 risk-based
capital ratio
|
12.1
|
12.0
|
11.9
|
11.9
|
11.9
|
Total risk-based
capital ratio
|
14.4
|
14.3
|
14.2
|
14.5
|
14.2
|
___________________________________________________
|
(1)
|
Non-GAAP measurement.
See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP
Financial Measures" below
|
(2)
|
FTE – fully taxable
equivalent basis using an effective tax rate of 26.135%
|
Conference Call
Management will conduct a live conference call to review this
information beginning at 9:00 a.m. Central
Time today, Wednesday, January 24,
2024. Interested persons can listen to this call by
dialing toll-free 1-844-481-2779 (North America only) and asking for the Simmons
First National Corporation conference call, conference
ID 10185194. In addition, the call will be available live or
in recorded version on Simmons' website at simmonsbank.com for
at least 60 days following the date of the call.
Simmons First National Corporation
Simmons First National Corporation (NASDAQ: SFNC) is a Mid-South
based financial holding company that has paid cash dividends to its
shareholders for 115 consecutive years. Its principal subsidiary,
Simmons Bank, operates 234 branches
in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. Founded in 1903, Simmons Bank offers comprehensive financial
solutions delivered with a client-centric approach. In 2023,
Simmons Bank was recognized by
Forbes as one of America's Best Midsize Employers and among
the World's Best Banks for the fourth consecutive year. In 2022,
Simmons Bank was named to
Forbes' list of "America's Best Banks" for the second
consecutive year. Additional information about Simmons Bank can be found on our website at
simmonsbank.com, by following @Simmons_Bank on X (formerly Twitter)
or by visiting our newsroom.
Non-GAAP Financial Measures
This press release contains financial information determined by
methods other than in accordance with U.S. generally accepted
accounting principles (GAAP). The Company's management uses these
non-GAAP financial measures in their analysis of the Company's
performance. These measures adjust GAAP performance measures to,
among other things, include the tax benefit associated with revenue
items that are tax-exempt, as well as exclude from net income
(including on a per share diluted basis), pre-tax, pre-provision
earnings, net charge-offs, income available to common shareholders,
non-interest income, and non-interest expense certain income and
expense items attributable to, for example, merger activity
(primarily including merger-related expenses and Day 2 CECL
provisions), gains and/or losses on sale of branches, net branch
right-sizing initiatives, loss on redemption of trust preferred
securities, gain on sale of intellectual property, FDIC special
assessment charges and gain/loss on the sale of AFS investment
securities. The Company has updated its calculation of certain
non-GAAP financial measures to exclude the impact of gains or
losses on the sale of AFS investment securities in light of the
impact of the Company's strategic AFS investment securities
transactions during the fourth quarter of 2023 and has presented
past periods on a comparable basis.
In addition, the Company also presents certain figures based on
tangible common stockholders' equity, tangible assets and tangible
book value, which exclude goodwill and other intangible assets. The
Company further presents certain figures that are exclusive of the
impact of deposits and/or loans acquired through acquisitions,
mortgage warehouse loans, and/or energy loans, or gains and/or
losses on the sale of securities. The Company's management believes
that these non-GAAP financial measures are useful to investors
because they, among other things, present the results of the
Company's ongoing operations without the effect of mergers or other
items not central to the Company's ongoing business, as well as
normalize for tax effects and certain other effects. Management,
therefore, believes presentations of these non-GAAP financial
measures provide useful supplemental information that is essential
to a proper understanding of the operating results of the Company's
ongoing businesses, and management uses these non-GAAP financial
measures to assess the performance of the Company's ongoing
businesses as related to prior financial periods. These non-GAAP
disclosures should not be viewed as a substitute for operating
results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies. Where non-GAAP financial measures are
used, the comparable GAAP financial measure, as well as the
reconciliation to the comparable GAAP financial measure, can be
found in the tables of this release.
Forward-Looking Statements
Certain statements in this press release may not be based on
historical facts and should be considered "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements, including,
without limitation, statements made in Mr. Fehlman's quote and
estimated earn back periods, may be identified by reference to
future periods or by the use of forward-looking terminology, such
as "believe," "budget," "expect," "foresee," "anticipate,"
"intend," "indicate," "target," "estimate," "plan," "project,"
"continue," "contemplate," "positions," "prospects," "predict," or
"potential," by future conditional verbs such as "will," "would,"
"should," "could," "might" or "may," or by variations of such words
or by similar expressions. These forward-looking statements
include, without limitation, statements relating to Simmons' future
growth, business strategies, lending capacity and lending activity,
loan demand, revenue, assets, asset quality, profitability,
dividends, net interest margin, non-interest revenue, share
repurchase program, acquisition strategy, digital banking
initiatives, the Company's ability to recruit and retain key
employees, the estimated cost savings associated with the Company's
Better Bank Initiative, the adequacy of the allowance for credit
losses, and future economic conditions and interest rates. Any
forward-looking statement speaks only as of the date of this press
release, and Simmons undertakes no obligation to update these
forward-looking statements to reflect events or circumstances that
occur after the date of this press release. By nature,
forward-looking statements are based on various assumptions and
involve inherent risk and uncertainties. Various factors,
including, but not limited to, changes in economic conditions,
changes in credit quality, changes in interest rates and related
governmental policies, changes in loan demand, changes in deposit
flows, changes in real estate values, changes in the assumptions
used in making the forward- looking statements, changes in
the securities markets generally or the price of Simmons' common
stock specifically, changes in information technology affecting the
financial industry, and changes in customer behaviors, including
consumer spending, borrowing, and saving habits; general economic
and market conditions; market disruptions including pandemics or
significant health hazards, severe weather conditions, natural
disasters, terrorist activities, financial crises, political
crises, war and other military conflicts (including the ongoing
military conflicts between Russia
and Ukraine and between
Israel and Hamas) or other major
events, or the prospect of these events; the soundness of other
financial institutions and indirect exposure related to the
closings of Silicon Valley Bank (SVB), Signature Bank and
Silvergate Bank and their impact on the broader market through
other customers, suppliers and partners (or that the conditions
which resulted in the liquidity concerns with SVB, Signature Bank
and Silvergate Bank may also adversely impact, directly or
indirectly, other financial institutions and market participants
with which the Company has commercial or deposit relationships);
increased inflation; the loss of key employees; increased
competition in the markets in which the Company operates; increased
unemployment; labor shortages; claims, damages, and fines related
to litigation or government actions; changes in accounting
principles relating to loan loss recognition (current expected
credit losses); the Company's ability to manage and successfully
integrate its mergers and acquisitions and to fully realize cost
savings and other benefits associated with acquisitions; increased
delinquency and foreclosure rates on commercial real estate loans;
cyber threats, attacks or events; reliance on third parties for key
services; government legislation; and other factors, many of which
are beyond the control of the Company, could cause actual results
to differ materially from those projected in or contemplated by the
forward-looking statements. Additional information on factors that
might affect the Company's financial results is included in the
Company's Form 10-K for the year ended December 31, 2022, the Company's Form 10-Q for
the quarterly period ended March 31,
2023, and other reports that the Company has filed with or
furnished to the U.S. Securities and Exchange Commission (the SEC),
all of which are available from the SEC on its website,
www.sec.gov. In addition, there can be no guarantee that the board
of directors (Board) of Simmons will approve a quarterly dividend
in future quarters, and the timing, payment, and amount of future
dividends (if any) is subject to, among other things, the
discretion of the Board and may differ significantly from past
dividends.
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated End of Period Balance
Sheets
|
|
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and
noninterest bearing balances due from banks
|
$
345,258
|
$
181,822
|
$
181,268
|
$
199,316
|
$
200,616
|
Interest bearing
balances due from banks and federal funds sold
|
268,834
|
423,826
|
564,644
|
325,135
|
481,506
|
Cash and cash
equivalents
|
614,092
|
605,648
|
745,912
|
524,451
|
682,122
|
Interest bearing
balances due from banks - time
|
100
|
100
|
545
|
795
|
795
|
Investment
securities - held-to-maturity
|
3,726,288
|
3,742,292
|
3,756,754
|
3,765,483
|
3,759,706
|
Investment
securities - available-for-sale
|
3,152,153
|
3,358,421
|
3,579,758
|
3,755,956
|
3,852,854
|
Mortgage loans
held for sale
|
9,373
|
11,690
|
10,342
|
4,244
|
3,486
|
Loans:
|
|
|
|
|
|
Loans
|
16,845,670
|
16,771,888
|
16,833,653
|
16,555,098
|
16,142,124
|
Allowance for
credit losses on loans
|
(225,231)
|
(218,547)
|
(209,966)
|
(206,557)
|
(196,955)
|
Net
loans
|
16,620,439
|
16,553,341
|
16,623,687
|
16,348,541
|
15,945,169
|
Premises and
equipment
|
570,678
|
567,167
|
562,025
|
564,497
|
548,741
|
Foreclosed assets
and other real estate owned
|
4,073
|
3,809
|
3,909
|
2,721
|
2,887
|
Interest
receivable
|
122,430
|
110,361
|
103,431
|
98,775
|
102,892
|
Bank owned life
insurance
|
500,559
|
497,465
|
494,370
|
493,191
|
491,340
|
Goodwill
|
1,320,799
|
1,320,799
|
1,320,799
|
1,320,799
|
1,319,598
|
Other intangible
assets
|
112,645
|
116,660
|
120,758
|
124,854
|
128,951
|
Other
assets
|
592,045
|
676,572
|
636,833
|
579,139
|
622,520
|
Total
assets
|
$
27,345,674
|
$
27,564,325
|
$
27,959,123
|
$
27,583,446
|
$
27,461,061
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest
bearing transaction accounts
|
$ 4,800,880
|
$ 4,991,034
|
$ 5,264,962
|
$ 5,489,434
|
$ 6,016,651
|
Interest bearing
transaction accounts and savings deposits
|
10,997,425
|
10,571,807
|
10,866,078
|
11,283,584
|
11,762,885
|
Time
deposits
|
6,446,673
|
6,668,370
|
6,357,682
|
5,678,757
|
4,768,558
|
Total deposits
|
22,244,978
|
22,231,211
|
22,488,722
|
22,451,775
|
22,548,094
|
Federal funds
purchased and securities sold
|
|
|
|
|
|
under agreements
to repurchase
|
67,969
|
74,482
|
102,586
|
142,862
|
160,403
|
Other
borrowings
|
972,366
|
1,347,855
|
1,373,339
|
1,023,826
|
859,296
|
Subordinated
notes and debentures
|
366,141
|
366,103
|
366,065
|
366,027
|
365,989
|
Accrued interest
and other liabilities
|
267,732
|
259,119
|
272,085
|
259,055
|
257,917
|
Total
liabilities
|
23,919,186
|
24,278,770
|
24,602,797
|
24,243,545
|
24,191,699
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
1,252
|
1,251
|
1,262
|
1,273
|
1,270
|
Surplus
|
2,499,930
|
2,497,874
|
2,516,398
|
2,533,589
|
2,530,066
|
Undivided
profits
|
1,329,681
|
1,330,810
|
1,308,654
|
1,275,720
|
1,255,586
|
Accumulated
other comprehensive (loss) income
|
(404,375)
|
(544,380)
|
(469,988)
|
(470,681)
|
(517,560)
|
Total
stockholders' equity
|
3,426,488
|
3,285,555
|
3,356,326
|
3,339,901
|
3,269,362
|
Total
liabilities and stockholders' equity
|
$
27,345,674
|
$
27,564,325
|
$
27,959,123
|
$
27,583,446
|
$
27,461,061
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated Statements of Income -
Quarter-to-Date
|
|
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands, except per share
data)
|
|
|
|
|
|
INTEREST INCOME
|
|
|
|
|
|
Loans (including fees)
|
$
261,505
|
$
255,901
|
$
244,292
|
$
227,498
|
$
216,091
|
Interest bearing balances due from banks and federal funds
sold
|
3,115
|
3,569
|
4,023
|
2,783
|
2,593
|
Investment securities
|
58,755
|
50,638
|
48,751
|
48,774
|
45,689
|
Mortgage loans held for sale
|
143
|
178
|
154
|
82
|
152
|
Other loans held for sale
|
-
|
-
|
-
|
-
|
59
|
TOTAL INTEREST INCOME
|
323,518
|
310,286
|
297,220
|
279,137
|
264,584
|
INTEREST EXPENSE
|
|
|
|
|
|
Time
deposits
|
72,458
|
68,062
|
53,879
|
39,538
|
22,434
|
Other deposits
|
71,412
|
65,095
|
54,485
|
47,990
|
34,615
|
Federal funds purchased and securities
|
|
|
|
|
|
sold under agreements
to repurchase
|
232
|
277
|
318
|
323
|
449
|
Other borrowings
|
16,607
|
16,450
|
18,612
|
8,848
|
9,263
|
Subordinated notes and debentures
|
7,181
|
6,969
|
6,696
|
4,603
|
4,797
|
TOTAL INTEREST EXPENSE
|
167,890
|
156,853
|
133,990
|
101,302
|
71,558
|
NET INTEREST INCOME
|
155,628
|
153,433
|
163,230
|
177,835
|
193,026
|
PROVISION FOR CREDIT
LOSSES
|
|
|
|
|
|
Provision for credit losses on loans
|
11,225
|
20,222
|
5,061
|
10,916
|
26
|
Provision for credit losses on unfunded commitments
|
-
|
(11,300)
|
(5,000)
|
-
|
-
|
Provision for credit losses on investment securities -
AFS
|
(1,196)
|
(1,200)
|
(1,326)
|
12,800
|
-
|
Provision for credit losses on investment securities -
HTM
|
-
|
-
|
1,326
|
500
|
-
|
TOTAL PROVISION FOR CREDIT LOSSES
|
10,029
|
7,722
|
61
|
24,216
|
26
|
NET INTEREST INCOME AFTER
PROVISION
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
145,599
|
145,711
|
163,169
|
153,619
|
193,000
|
NONINTEREST INCOME
|
|
|
|
|
|
Service charges on deposit accounts
|
12,782
|
12,429
|
12,882
|
12,437
|
11,892
|
Debit and credit card fees
|
7,822
|
7,712
|
7,986
|
7,952
|
7,845
|
Wealth management fees
|
7,679
|
7,719
|
7,440
|
7,365
|
8,151
|
Mortgage lending income
|
1,603
|
2,157
|
2,403
|
1,570
|
1,139
|
Bank
owned life insurance income
|
3,094
|
3,095
|
2,555
|
2,973
|
2,975
|
Other service charges and fees (includes insurance
income)
|
2,346
|
2,232
|
2,262
|
2,282
|
2,023
|
Gain
(loss) on sale of securities
|
(20,218)
|
-
|
(391)
|
-
|
(52)
|
Gain
on insurance settlement
|
-
|
-
|
-
|
-
|
4,074
|
Other income
|
6,866
|
7,433
|
9,843
|
11,256
|
6,600
|
TOTAL NONINTEREST INCOME
|
21,974
|
42,777
|
44,980
|
45,835
|
44,647
|
NONINTEREST EXPENSE
|
|
|
|
|
|
Salaries and employee benefits
|
66,982
|
67,374
|
74,723
|
77,038
|
73,018
|
Occupancy expense, net
|
11,733
|
12,020
|
11,410
|
11,578
|
11,620
|
Furniture and equipment expense
|
5,445
|
5,117
|
5,128
|
5,051
|
5,392
|
Other real estate and foreclosure expense
|
189
|
228
|
289
|
186
|
350
|
Deposit insurance
|
15,220
|
4,672
|
5,201
|
4,893
|
3,680
|
Merger-related costs
|
-
|
5
|
19
|
1,396
|
35
|
Other operating expenses
|
48,570
|
42,582
|
42,926
|
43,086
|
48,480
|
TOTAL NONINTEREST EXPENSE
|
148,139
|
131,998
|
139,696
|
143,228
|
142,575
|
NET INCOME BEFORE INCOME
TAXES
|
19,434
|
56,490
|
68,453
|
56,226
|
95,072
|
Provision for income taxes
|
(4,473)
|
9,243
|
10,139
|
10,637
|
11,812
|
NET INCOME
|
$ 23,907
|
$ 47,247
|
$ 58,314
|
$ 45,589
|
$ 83,260
|
BASIC EARNINGS PER SHARE
|
$
0.19
|
$
0.38
|
$
0.46
|
$
0.36
|
$
0.66
|
DILUTED EARNINGS PER
SHARE
|
$
0.19
|
$
0.37
|
$
0.46
|
$
0.36
|
$
0.65
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated Risk-Based
Capital
|
|
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands)
|
|
|
|
|
|
Tier 1 capital
|
|
|
|
|
|
Stockholders' equity
|
$ 3,426,488
|
$ 3,285,555
|
$ 3,356,326
|
$ 3,339,901
|
$ 3,269,362
|
CECL
transition provision (1)
|
61,746
|
61,746
|
61,746
|
61,746
|
92,619
|
Disallowed
intangible assets, net of deferred tax
|
(1,398,810)
|
(1,402,682)
|
(1,406,500)
|
(1,410,141)
|
(1,412,667)
|
Unrealized
loss (gain) on AFS securities
|
404,375
|
544,380
|
469,988
|
470,681
|
517,560
|
Total Tier 1
capital
|
2,493,799
|
2,488,999
|
2,481,560
|
2,462,187
|
2,466,874
|
|
|
|
|
|
|
Tier 2 capital
|
|
|
|
|
|
Subordinated notes and debentures
|
366,141
|
366,103
|
366,065
|
366,027
|
365,989
|
Subordinated debt phase out
|
(66,000)
|
(66,000)
|
(66,000)
|
-
|
-
|
Qualifying
allowance for loan losses and
|
|
|
|
|
|
reserve for unfunded
commitments
|
170,977
|
165,490
|
169,409
|
173,077
|
115,627
|
Total Tier 2
capital
|
471,118
|
465,593
|
469,474
|
539,104
|
481,616
|
Total risk-based
capital
|
$ 2,964,917
|
$ 2,954,592
|
$ 2,951,034
|
$ 3,001,291
|
$ 2,948,490
|
|
|
|
|
|
|
Risk weighted
assets
|
$
20,599,238
|
$
20,703,669
|
$
20,821,075
|
$
20,748,605
|
$
20,738,727
|
|
|
|
|
|
|
Adjusted average assets
for leverage ratio
|
$
26,552,988
|
$
26,733,658
|
$
26,896,289
|
$
26,632,691
|
$
26,407,061
|
|
|
|
|
|
|
Ratios at end of quarter
|
|
|
|
|
|
Equity to
assets
|
12.53 %
|
11.92 %
|
12.00 %
|
12.11 %
|
11.91 %
|
Tangible
common equity to tangible assets (2)
|
7.69 %
|
7.07 %
|
7.22 %
|
7.25 %
|
7.00 %
|
Common
equity Tier 1 ratio (CET1)
|
12.11 %
|
12.02 %
|
11.92 %
|
11.87 %
|
11.90 %
|
Tier 1
leverage ratio
|
9.39 %
|
9.31 %
|
9.23 %
|
9.24 %
|
9.34 %
|
Tier 1
risk-based capital ratio
|
12.11 %
|
12.02 %
|
11.92 %
|
11.87 %
|
11.90 %
|
Total
risk-based capital ratio
|
14.39 %
|
14.27 %
|
14.17 %
|
14.47 %
|
14.22 %
|
|
|
|
|
|
|
(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
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands)
|
|
|
|
|
|
Investment Securities - End of
Period
|
|
|
|
|
|
Held-to-Maturity
|
|
|
|
|
|
U.S.
Government agencies
|
$ 453,121
|
$ 452,428
|
$ 451,737
|
$
451,052
|
$ 448,012
|
Mortgage-backed securities
|
1,161,694
|
1,178,324
|
1,193,118
|
1,201,418
|
1,190,781
|
State and political subdivisions
|
1,856,674
|
1,857,652
|
1,859,022
|
1,859,970
|
1,860,992
|
Other securities
|
254,799
|
253,888
|
252,877
|
253,043
|
259,921
|
Total
held-to-maturity (net of credit losses)
|
3,726,288
|
3,742,292
|
3,756,754
|
3,765,483
|
3,759,706
|
Available-for-Sale
|
|
|
|
|
|
U.S.
Treasury
|
$
2,254
|
$
2,224
|
$
2,209
|
$
2,220
|
$
2,197
|
U.S.
Government agencies
|
72,502
|
172,759
|
176,564
|
181,843
|
184,279
|
Mortgage-backed securities
|
1,940,307
|
2,157,092
|
2,282,328
|
2,433,530
|
2,542,902
|
State and political subdivisions
|
902,793
|
790,344
|
885,505
|
895,896
|
871,074
|
Other securities
|
234,297
|
236,002
|
233,152
|
242,467
|
252,402
|
Total
available-for-sale (net of credit losses)
|
3,152,153
|
3,358,421
|
3,579,758
|
3,755,956
|
3,852,854
|
Total investment
securities (net of credit losses)
|
$
6,878,441
|
$
7,100,713
|
$
7,336,512
|
$
7,521,439
|
$
7,612,560
|
Fair value - HTM
investment securities
|
$
3,135,370
|
$
2,848,211
|
$
3,094,958
|
$
3,148,976
|
$
3,063,233
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated Loans
|
|
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands)
|
|
|
|
|
|
Loan Portfolio - End of Period
|
|
|
|
|
|
Consumer:
|
|
|
|
|
|
Credit cards
|
$
191,204
|
$
191,550
|
$
209,452
|
$
188,590
|
$
196,928
|
Other consumer
|
127,462
|
112,832
|
148,333
|
142,817
|
152,882
|
Total
consumer
|
318,666
|
304,382
|
357,785
|
331,407
|
349,810
|
Real
Estate:
|
|
|
|
|
|
Construction
|
3,144,220
|
3,022,321
|
2,930,586
|
2,777,122
|
2,566,649
|
Single-family residential
|
2,641,556
|
2,657,879
|
2,633,365
|
2,589,831
|
2,546,115
|
Other commercial real estate
|
7,552,410
|
7,565,008
|
7,546,130
|
7,520,964
|
7,468,498
|
Total real
estate
|
13,338,186
|
13,245,208
|
13,110,081
|
12,887,917
|
12,581,262
|
Commercial:
|
|
|
|
|
|
Commercial
|
2,490,176
|
2,477,077
|
2,569,330
|
2,669,731
|
2,632,290
|
Agricultural
|
232,710
|
296,912
|
280,541
|
220,641
|
205,623
|
Total
commercial
|
2,722,886
|
2,773,989
|
2,849,871
|
2,890,372
|
2,837,913
|
Other
|
465,932
|
448,309
|
515,916
|
445,402
|
373,139
|
Total
loans
|
$
16,845,670
|
$
16,771,888
|
$
16,833,653
|
$
16,555,098
|
$
16,142,124
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated Allowance and Asset
Quality
|
|
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands)
|
|
|
|
|
|
Allowance for Credit Losses on
Loans
|
|
|
|
|
|
Beginning
balance
|
$ 218,547
|
$ 209,966
|
$ 206,557
|
$ 196,955
|
$ 197,589
|
|
|
|
|
|
|
Day 1 PCD
allowance from acquisitions:
|
|
|
|
|
|
Spirit of Texas (04/08/2022)
|
-
|
-
|
-
|
-
|
4,523
|
Total Day 1 PCD
allowance
|
-
|
-
|
-
|
-
|
4,523
|
|
|
|
|
|
|
Loans charged
off:
|
|
|
|
|
|
Credit cards
|
1,500
|
1,318
|
1,409
|
1,076
|
1,035
|
Other consumer
|
767
|
633
|
666
|
456
|
439
|
Real
estate
|
1,023
|
9,723
|
435
|
1,204
|
3,392
|
Commercial
|
3,105
|
1,219
|
1,225
|
413
|
5,389
|
Total loans
charged off
|
6,395
|
12,893
|
3,735
|
3,149
|
10,255
|
|
|
|
|
|
|
Recoveries of
loans previously charged off:
|
|
|
|
|
|
Credit cards
|
242
|
234
|
298
|
234
|
251
|
Other consumer
|
518
|
344
|
436
|
240
|
230
|
Real
estate
|
785
|
429
|
878
|
294
|
4,117
|
Commercial
|
309
|
245
|
471
|
1,067
|
475
|
Total
recoveries
|
1,854
|
1,252
|
2,083
|
1,835
|
5,073
|
Net
loans charged off
|
4,541
|
11,641
|
1,652
|
1,314
|
5,182
|
Provision for
credit losses on loans
|
11,225
|
20,222
|
5,061
|
10,916
|
25
|
Balance, end of
quarter
|
$ 225,231
|
$ 218,547
|
$ 209,966
|
$ 206,557
|
$ 196,955
|
|
|
|
|
|
|
Nonperforming assets
|
|
|
|
|
|
Nonperforming
loans:
|
|
|
|
|
|
Nonaccrual loans
|
$
83,325
|
$
81,135
|
$
71,279
|
$
63,218
|
$
58,434
|
Loans past due 90 days or more
|
1,147
|
806
|
738
|
437
|
507
|
Total
nonperforming loans
|
84,472
|
81,941
|
72,017
|
63,655
|
58,941
|
Other
nonperforming assets:
|
|
|
|
|
|
Foreclosed
assets and other real estate owned
|
4,073
|
3,809
|
3,909
|
2,721
|
2,887
|
Other nonperforming assets
|
1,726
|
1,417
|
1,013
|
5,012
|
644
|
Total other
nonperforming assets
|
5,799
|
5,226
|
4,922
|
7,733
|
3,531
|
Total nonperforming assets
|
$
90,271
|
$
87,167
|
$
76,939
|
$
71,388
|
$
62,472
|
Performing FDMs
(modifications to borrowers
|
|
|
|
|
|
experiencing financial difficulty)
|
$
33,577
|
$
33,723
|
$
2,996
|
$
2,183
|
$
1,849
|
|
|
|
|
|
|
Ratios
|
|
|
|
|
|
Allowance for
credit losses on loans to total loans
|
1.34 %
|
1.30 %
|
1.25 %
|
1.25 %
|
1.22 %
|
Allowance for
credit losses to nonperforming loans
|
267 %
|
267 %
|
292 %
|
324 %
|
334 %
|
Nonperforming
loans to total loans
|
0.50 %
|
0.49 %
|
0.43 %
|
0.38 %
|
0.37 %
|
Nonperforming
assets (including performing FDMs)
|
|
|
|
|
|
to total
assets
|
0.45 %
|
0.44 %
|
0.29 %
|
0.27 %
|
0.23 %
|
Nonperforming
assets to total assets
|
0.33 %
|
0.32 %
|
0.28 %
|
0.26 %
|
0.23 %
|
Annualized net
charge offs to average loans (QTD)
|
0.11 %
|
0.28 %
|
0.04 %
|
0.03 %
|
0.13 %
|
Annualized net
charge offs to average loans (YTD)
|
0.12 %
|
0.12 %
|
0.04 %
|
0.03 %
|
0.09 %
|
Annualized net
credit card charge offs to
|
|
|
|
|
|
average
credit card loans (QTD)
|
2.49 %
|
2.19 %
|
2.25 %
|
1.69 %
|
1.52 %
|
Simmons First National
Corporation
|
|
|
|
|
|
|
|
|
|
|
SFNC
|
Consolidated - Average Balance Sheet and Net
Interest Income Analysis
|
|
|
|
|
|
|
|
|
|
|
For the Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Dec 2023
|
|
Three Months Ended
Sep 2023
|
|
Three Months Ended
Dec 2022
|
($ in thousands)
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing balances due from banks
|
|
|
|
|
|
|
|
|
|
|
|
and federal funds
sold
|
$
230,464
|
$
3,115
|
5.36 %
|
|
$
331,444
|
$ 3,569
|
4.27 %
|
|
$
361,856
|
$ 2,593
|
2.84 %
|
Investment
securities - taxable
|
4,410,681
|
42,895
|
3.86 %
|
|
4,638,486
|
34,734
|
2.97 %
|
|
5,085,960
|
29,645
|
2.31 %
|
Investment
securities - non-taxable (FTE)
|
2,555,125
|
21,523
|
3.34 %
|
|
2,617,152
|
21,563
|
3.27 %
|
|
2,582,050
|
22,123
|
3.40 %
|
Mortgage
loans held for sale
|
7,644
|
143
|
7.42 %
|
|
9,542
|
178
|
7.40 %
|
|
8,601
|
152
|
7.01 %
|
Other
loans held for sale
|
-
|
-
|
0.00 %
|
|
-
|
-
|
0.00 %
|
|
1,704
|
59
|
13.74 %
|
Loans -
including fees (FTE)
|
16,793,211
|
262,353
|
6.20 %
|
|
16,758,597
|
256,757
|
6.08 %
|
|
15,929,957
|
216,782
|
5.40 %
|
Total interest earning
assets (FTE)
|
23,997,125
|
330,029
|
5.46 %
|
|
24,355,221
|
316,801
|
5.16 %
|
|
23,970,128
|
271,354
|
4.49 %
|
Non-earning assets
|
3,373,686
|
|
|
|
3,239,390
|
|
|
|
3,210,447
|
|
|
Total assets
|
$
27,370,811
|
|
|
|
$
27,594,611
|
|
|
|
$
27,180,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing transaction and
|
|
|
|
|
|
|
|
|
|
|
|
savings accounts
|
$
10,730,701
|
$ 71,412
|
2.64 %
|
|
$
10,682,767
|
$
65,095
|
2.42 %
|
|
$
11,859,322
|
$
34,615
|
1.16 %
|
Time
deposits
|
6,509,663
|
72,458
|
4.42 %
|
|
6,558,110
|
68,062
|
4.12 %
|
|
4,212,271
|
22,434
|
2.11 %
|
Total interest bearing
deposits
|
17,240,364
|
143,870
|
3.31 %
|
|
17,240,877
|
133,157
|
3.06 %
|
|
16,071,593
|
57,049
|
1.41 %
|
Federal
funds purchased and securities
|
|
|
|
|
|
|
|
|
|
|
|
sold under agreement to
repurchase
|
65,871
|
232
|
1.40 %
|
|
89,769
|
277
|
1.22 %
|
|
178,948
|
449
|
1.00 %
|
Other
borrowings
|
1,212,501
|
16,607
|
5.43 %
|
|
1,222,557
|
16,450
|
5.34 %
|
|
923,189
|
9,263
|
3.98 %
|
Subordinated notes and debentures
|
366,123
|
7,181
|
7.78 %
|
|
366,085
|
6,969
|
7.55 %
|
|
365,971
|
4,797
|
5.20 %
|
Total interest bearing
liabilities
|
18,884,859
|
167,890
|
3.53 %
|
|
18,919,288
|
156,853
|
3.29 %
|
|
17,539,701
|
71,558
|
1.62 %
|
Noninterest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing deposits
|
4,864,274
|
|
|
|
5,032,631
|
|
|
|
6,161,732
|
|
|
Other
liabilities
|
285,431
|
|
|
|
271,014
|
|
|
|
264,230
|
|
|
Total
liabilities
|
24,034,564
|
|
|
|
24,222,933
|
|
|
|
23,965,663
|
|
|
Stockholders'
equity
|
3,336,247
|
|
|
|
3,371,678
|
|
|
|
3,214,912
|
|
|
Total liabilities and
stockholders' equity
|
$
27,370,811
|
|
|
|
$
27,594,611
|
|
|
|
$
27,180,575
|
|
|
Net interest income
(FTE)
|
|
$
162,139
|
|
|
|
$
159,948
|
|
|
|
$
199,796
|
|
Net interest spread
(FTE)
|
|
|
1.93 %
|
|
|
|
1.87 %
|
|
|
|
2.87 %
|
Net interest margin
(FTE)
|
|
|
2.68 %
|
|
|
|
2.61 %
|
|
|
|
3.31 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated - Selected Financial
Data
|
|
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands, except share
data)
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Financial Highlights - As Reported
|
|
|
|
|
|
Net Income
|
$
23,907
|
$
47,247
|
$
58,314
|
$
45,589
|
$
83,260
|
Diluted earnings per
share
|
0.19
|
0.37
|
0.46
|
0.36
|
0.65
|
Return on average
assets
|
0.35 %
|
0.68 %
|
0.84 %
|
0.67 %
|
1.22 %
|
Return on average
common equity
|
2.84 %
|
5.56 %
|
6.96 %
|
5.49 %
|
10.27 %
|
Return on tangible
common equity (non-GAAP) (1)
|
5.61 %
|
10.33 %
|
12.85 %
|
10.25 %
|
19.29 %
|
Net interest margin
(FTE)
|
2.68 %
|
2.61 %
|
2.76 %
|
3.09 %
|
3.31 %
|
Efficiency ratio
(2)
|
80.46 %
|
65.11 %
|
65.18 %
|
62.28 %
|
58.33 %
|
FTE
adjustment
|
6,511
|
6,515
|
6,106
|
6,311
|
6,770
|
Average diluted shares
outstanding
|
125,609,265
|
126,283,609
|
127,379,976
|
127,516,478
|
127,505,996
|
Shares repurchased
under plan
|
-
|
1,128,962
|
1,128,087
|
-
|
-
|
Average price of
shares repurchased
|
-
|
17.69
|
17.75
|
-
|
-
|
Cash dividends
declared per common share
|
0.200
|
0.200
|
0.200
|
0.200
|
0.190
|
Accretable yield on
acquired loans
|
1,762
|
2,146
|
2,267
|
2,579
|
4,473
|
Financial Highlights - Adjusted (non-GAAP)
(1)
|
|
|
|
|
|
Adjusted
earnings
|
$
50,215
|
$
48,804
|
$
61,354
|
$
47,343
|
$
81,131
|
Adjusted diluted
earnings per share
|
0.40
|
0.39
|
0.48
|
0.37
|
0.64
|
Adjusted return on
average assets
|
0.73 %
|
0.70 %
|
0.89 %
|
0.70 %
|
1.18 %
|
Adjusted return on
average common equity
|
5.97 %
|
5.74 %
|
7.33 %
|
5.70 %
|
10.01 %
|
Adjusted return on
tangible common equity
|
11.10 %
|
10.64 %
|
13.48 %
|
10.62 %
|
18.82 %
|
Adjusted efficiency
ratio (2)
|
62.91 %
|
61.94 %
|
61.29 %
|
59.38 %
|
56.97 %
|
YEAR-TO-DATE
|
|
|
|
|
|
Financial Highlights - GAAP
|
|
|
|
|
|
Net Income
|
$
175,057
|
$
151,150
|
$
103,903
|
$
45,589
|
$
256,412
|
Diluted earnings per
share
|
1.38
|
1.19
|
0.82
|
0.36
|
2.06
|
Return on average
assets
|
0.64 %
|
0.73 %
|
0.76 %
|
0.67 %
|
0.97 %
|
Return on average
common equity
|
5.21 %
|
6.00 %
|
6.23 %
|
5.49 %
|
7.87 %
|
Return on tangible
common equity (non-GAAP) (1)
|
9.76 %
|
11.14 %
|
11.55 %
|
10.25 %
|
14.33 %
|
Net interest margin
(FTE)
|
2.78 %
|
2.82 %
|
2.92 %
|
3.09 %
|
3.17 %
|
Efficiency ratio
(2)
|
67.75 %
|
64.13 %
|
63.68 %
|
62.28 %
|
62.14 %
|
FTE
adjustment
|
25,443
|
18,932
|
12,417
|
6,311
|
24,671
|
Average diluted shares
outstanding
|
126,775,704
|
127,099,727
|
127,421,034
|
127,516,478
|
124,470,184
|
Cash dividends
declared per common share
|
0.800
|
0.600
|
0.400
|
0.200
|
0.760
|
Financial Highlights - Adjusted (non-GAAP)
(1)
|
|
|
|
|
|
Adjusted
earnings
|
$
207,716
|
$
157,501
|
$
108,697
|
$
47,343
|
$
298,840
|
Adjusted diluted
earnings per share
|
1.64
|
1.24
|
0.85
|
0.37
|
2.40
|
Adjusted return on
average assets
|
0.75 %
|
0.76 %
|
0.79 %
|
0.70 %
|
1.13 %
|
Adjusted return on
average common equity
|
6.18 %
|
6.25 %
|
6.51 %
|
5.70 %
|
9.17 %
|
Adjusted return on
tangible common equity
|
11.46 %
|
11.58 %
|
12.06 %
|
10.62 %
|
16.60 %
|
Adjusted efficiency
ratio (2)
|
61.32 %
|
60.81 %
|
60.30 %
|
59.38 %
|
57.50 %
|
END OF PERIOD
|
|
|
|
|
|
Book value per
share
|
$
27.37
|
$
26.26
|
$
26.59
|
$
26.24
|
$
25.73
|
Tangible book value
per share
|
15.92
|
14.77
|
15.17
|
14.88
|
14.33
|
Shares
outstanding
|
125,184,119
|
125,133,281
|
126,224,707
|
127,282,192
|
127,046,654
|
Full-time equivalent
employees
|
3,007
|
3,005
|
3,066
|
3,189
|
3,236
|
Total number of
financial centers
|
234
|
232
|
231
|
231
|
230
|
|
|
|
|
|
|
(1) Non-GAAP measurement that management
believes aids in the understanding and discussion of results.
Reconciliations to GAAP are
|
included in the schedules accompanying this
release.
|
|
|
|
|
|
(2) Efficiency ratio is noninterest expense as
a percent of net interest income (fully taxable equivalent) and
noninterest revenues.
|
Adjusted efficiency ratio is noninterest
expense before foreclosed property expense, amortization of
intangibles and certain adjusting
|
items as a percent of net interest income
(fully taxable equivalent) and noninterest revenues, excluding
gains and losses from
|
securities transactions and certain adjusting
items, and is a non-GAAP measurement.
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Adjusted Earnings - Quarter-to-Date
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
(in thousands, except per share
data)
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Net
income
|
$
23,907
|
$
47,247
|
$
58,314
|
$
45,589
|
$
83,260
|
Certain items
(non-GAAP)
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
FDIC Deposit Insurance
special assessment
|
10,521
|
-
|
-
|
-
|
-
|
Merger related
costs
|
-
|
5
|
19
|
1,396
|
35
|
Early retirement
program
|
1,032
|
1,557
|
3,609
|
-
|
-
|
Loss (gain) on sale of
securities
|
20,218
|
-
|
391
|
-
|
52
|
Branch right sizing
(net)
|
3,846
|
547
|
95
|
979
|
1,104
|
Tax effect of certain
items (1)
|
(9,309)
|
(552)
|
(1,074)
|
(621)
|
754
|
Certain items, net of tax
|
26,308
|
1,557
|
3,040
|
1,754
|
(2,129)
|
Adjusted earnings
(non-GAAP)
|
$
50,215
|
$
48,804
|
$
61,354
|
$
47,343
|
$
81,131
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.19
|
$
0.37
|
$
0.46
|
$
0.36
|
$
0.65
|
Certain items
(non-GAAP)
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(0.03)
|
FDIC Deposit Insurance
special assessment
|
0.08
|
-
|
-
|
-
|
-
|
Merger related
costs
|
-
|
-
|
-
|
0.01
|
-
|
Early retirement
program
|
0.01
|
0.01
|
0.03
|
-
|
-
|
Loss (gain) on sale of
securities
|
0.16
|
-
|
-
|
-
|
-
|
Branch right sizing
(net)
|
0.03
|
0.01
|
-
|
0.01
|
0.01
|
Tax effect of certain
items (1)
|
(0.07)
|
-
|
(0.01)
|
(0.01)
|
0.01
|
Certain items, net of tax
|
0.21
|
0.02
|
0.02
|
0.01
|
(0.01)
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
0.40
|
$
0.39
|
$
0.48
|
$
0.37
|
$
0.64
|
|
|
|
|
|
|
(1) Effective tax rate of
26.135%.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Certain Noninterest Income and
Expense Items (non-GAAP)
|
|
|
|
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Noninterest income
|
$
21,974
|
$
42,777
|
$
44,980
|
$
45,835
|
$
44,647
|
Certain noninterest
income items
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
Loss (gain) on sale of
securities
|
20,218
|
-
|
391
|
-
|
52
|
Branch right sizing
income
|
-
|
-
|
-
|
-
|
-
|
Adjusted noninterest income (non-GAAP)
|
$
42,192
|
$
42,777
|
$
45,371
|
$
45,835
|
$
40,625
|
|
|
|
|
|
|
Other income
|
$
6,866
|
$
7,433
|
$
9,843
|
$
11,256
|
$
6,600
|
Certain other income
items
|
|
|
|
|
|
Branch right sizing
income
|
-
|
-
|
-
|
-
|
-
|
Adjusted other income (non-GAAP)
|
$
6,866
|
$
7,433
|
$
9,843
|
$
11,256
|
$
6,600
|
|
|
|
|
|
|
Noninterest expense
|
$ 148,139
|
$ 131,998
|
$ 139,696
|
$ 143,228
|
$ 142,575
|
Certain noninterest
expense items
|
|
|
|
|
|
Merger related
costs
|
-
|
(5)
|
(19)
|
(1,396)
|
(35)
|
Early retirement
program
|
(1,032)
|
(1,557)
|
(3,609)
|
-
|
-
|
FDIC Deposit Insurance
special assessment
|
(10,521)
|
-
|
-
|
-
|
-
|
Branch right sizing
expense
|
(3,846)
|
(547)
|
(95)
|
(979)
|
(1,104)
|
Adjusted noninterest expense (non-GAAP)
|
$ 132,740
|
$ 129,889
|
$ 135,973
|
$ 140,853
|
$ 141,436
|
|
|
|
|
|
|
Salaries and employee benefits
|
$
66,982
|
$
67,374
|
$
74,723
|
$
77,038
|
$
73,018
|
Certain salaries and
employee benefits items
|
|
|
|
|
|
Early retirement
program
|
(1,032)
|
(1,557)
|
(3,609)
|
-
|
-
|
Other
|
2
|
-
|
-
|
-
|
-
|
Adjusted salaries and employee benefits (non-GAAP)
|
$
65,952
|
$
65,817
|
$
71,114
|
$
77,038
|
$
73,018
|
|
|
|
|
|
|
Other operating expenses
|
$
48,570
|
$
42,582
|
$
42,926
|
$
43,086
|
$
48,480
|
Certain other
operating expenses items
|
|
|
|
|
|
Branch right sizing
expense
|
(3,708)
|
(466)
|
53
|
(816)
|
(953)
|
Adjusted other operating expenses (non-GAAP)
|
$
44,862
|
$
42,116
|
$
42,979
|
$
42,270
|
$
47,527
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Adjusted Earnings - Year-to-Date
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
(in thousands, except per share
data)
|
|
|
|
|
|
YEAR-TO-DATE
|
|
|
|
|
|
Net
income
|
$ 175,057
|
$ 151,150
|
$ 103,903
|
$
45,589
|
$ 256,412
|
Certain items
(non-GAAP)
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
-
|
-
|
365
|
Gain on sale of
intellectual property
|
-
|
-
|
-
|
-
|
(750)
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
FDIC Deposit Insurance
special assessment
|
10,521
|
-
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
-
|
1,738
|
Merger related
costs
|
1,420
|
1,420
|
1,415
|
1,396
|
22,476
|
Early retirement
program
|
6,198
|
5,166
|
3,609
|
-
|
-
|
Loss (gain) on sale of
securities
|
20,609
|
391
|
391
|
-
|
278
|
Branch right sizing
(net)
|
5,467
|
1,621
|
1,074
|
979
|
3,628
|
Day 2 CECL
provision
|
-
|
-
|
-
|
-
|
33,779
|
Tax effect of certain
items (1)
|
(11,556)
|
(2,247)
|
(1,695)
|
(621)
|
(15,012)
|
Certain items, net of tax
|
32,659
|
6,351
|
4,794
|
1,754
|
42,428
|
Adjusted earnings
(non-GAAP)
|
$ 207,716
|
$ 157,501
|
$ 108,697
|
$
47,343
|
$ 298,840
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
1.38
|
$
1.19
|
$
0.82
|
$
0.36
|
$
2.06
|
Certain items
(non-GAAP)
|
|
|
|
|
|
Gain on sale of
intellectual property
|
-
|
-
|
-
|
-
|
(0.01)
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(0.03)
|
FDIC Deposit Insurance
special assessment
|
0.08
|
-
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
-
|
0.01
|
Merger related
costs
|
0.01
|
0.01
|
0.01
|
0.01
|
0.18
|
Early retirement
program
|
0.05
|
0.04
|
0.03
|
-
|
-
|
Loss (gain) on sale of
securities
|
0.17
|
-
|
-
|
-
|
-
|
Branch right sizing
(net)
|
0.04
|
0.02
|
0.01
|
0.01
|
0.03
|
Day 2 CECL
provision
|
-
|
-
|
-
|
-
|
0.28
|
Tax effect of certain
items (1)
|
(0.09)
|
(0.02)
|
(0.02)
|
(0.01)
|
(0.12)
|
Certain items, net of tax
|
0.26
|
0.05
|
0.03
|
0.01
|
0.34
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
1.64
|
$
1.24
|
$
0.85
|
$
0.37
|
$
2.40
|
|
|
|
|
|
|
(1) Effective tax rate of
26.135%.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Certain Noninterest Income and
Expense Items (non-GAAP)
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
|
|
|
|
|
|
Noninterest income
|
$ 155,566
|
$ 133,592
|
$
90,815
|
$
45,835
|
$
170,066
|
Certain
noninterest income items
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
-
|
-
|
365
|
Gain on sale of
intellectual property
|
-
|
-
|
-
|
-
|
(750)
|
Loss (gain) on sale of
securities
|
20,609
|
391
|
391
|
-
|
278
|
Branch right sizing
income
|
-
|
-
|
-
|
-
|
153
|
Adjusted noninterest income (non-GAAP)
|
$ 176,175
|
$ 133,983
|
$
91,206
|
$
45,835
|
$ 166,038
|
|
|
|
|
|
|
Other income
|
$
35,398
|
$
28,532
|
$
21,099
|
$
11,256
|
$
27,361
|
Certain
other income items
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
-
|
-
|
365
|
Gain on sale of
intellectual property
|
-
|
-
|
-
|
-
|
(750)
|
Branch right sizing
income
|
-
|
-
|
-
|
-
|
153
|
Adjusted other income (non-GAAP)
|
$
35,398
|
$
28,532
|
$
21,099
|
$
11,256
|
$
27,129
|
|
|
|
|
|
|
Noninterest expense
|
$ 563,061
|
$ 414,922
|
$ 282,924
|
$ 143,228
|
$ 566,748
|
Certain
noninterest expense items
|
|
|
|
|
|
Merger related
costs
|
(1,420)
|
(1,420)
|
(1,415)
|
(1,396)
|
(22,476)
|
Early retirement
program
|
(6,198)
|
(5,166)
|
(3,609)
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
-
|
(1,738)
|
FDIC Deposit Insurance
special assessment
|
(10,521)
|
-
|
-
|
-
|
-
|
Branch right sizing
expense
|
(5,467)
|
(1,621)
|
(1,074)
|
(979)
|
(3,475)
|
Adjusted noninterest expense (non-GAAP)
|
$ 539,455
|
$ 406,715
|
$ 276,826
|
$ 140,853
|
$ 539,059
|
|
|
|
|
|
|
Salaries and employee benefits
|
$ 286,117
|
$ 219,135
|
$ 151,761
|
$
77,038
|
$
286,982
|
Certain
salaries and employee benefits items
|
|
|
|
|
|
Early retirement
program
|
(6,198)
|
(5,166)
|
(3,609)
|
-
|
-
|
Other
|
2
|
-
|
-
|
-
|
-
|
Adjusted salaries and employee benefits (non-GAAP)
|
$ 279,921
|
$ 213,969
|
$ 148,152
|
$
77,038
|
$ 286,982
|
|
|
|
|
|
|
Merger related costs
|
$
1,420
|
$
1,420
|
$
1,415
|
$
1,396
|
$
22,476
|
Adjustment for merger
related costs
|
(1,420)
|
(1,420)
|
(1,415)
|
(1,396)
|
(22,476)
|
Adjusted merger related costs (non-GAAP)
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
|
|
|
|
|
|
Other operating expenses
|
$ 177,164
|
$ 128,594
|
$
86,012
|
$
43,086
|
$ 179,693
|
Certain
other operating expenses items
|
|
|
|
|
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
-
|
(1,738)
|
Branch right sizing
expense
|
(4,937)
|
(1,229)
|
(763)
|
(816)
|
(2,650)
|
Adjusted other operating expenses (non-GAAP)
|
$ 172,227
|
$ 127,365
|
$
85,249
|
$
42,270
|
$ 175,305
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
End of Period
|
|
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Tangible Common Equity and the Ratio
of Tangible Common Equity to Tangible Assets
|
|
|
|
|
|
|
|
|
|
Total common
stockholders' equity
|
$ 3,426,488
|
$ 3,285,555
|
$ 3,356,326
|
$ 3,339,901
|
$ 3,269,362
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,319,598)
|
Other
intangible assets
|
(112,645)
|
(116,660)
|
(120,758)
|
(124,854)
|
(128,951)
|
Total
intangibles
|
(1,433,444)
|
(1,437,459)
|
(1,441,557)
|
(1,445,653)
|
(1,448,549)
|
Tangible common
stockholders' equity
|
$ 1,993,044
|
$ 1,848,096
|
$ 1,914,769
|
$ 1,894,248
|
$ 1,820,813
|
|
|
|
|
|
|
Total assets
|
$
27,345,674
|
$
27,564,325
|
$
27,959,123
|
$
27,583,446
|
$
27,461,061
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,319,598)
|
Other
intangible assets
|
(112,645)
|
(116,660)
|
(120,758)
|
(124,854)
|
(128,951)
|
Total
intangibles
|
(1,433,444)
|
(1,437,459)
|
(1,441,557)
|
(1,445,653)
|
(1,448,549)
|
Tangible
assets
|
$
25,912,230
|
$
26,126,866
|
$
26,517,566
|
$
26,137,793
|
$
26,012,512
|
|
|
|
|
|
|
Ratio of common equity
to assets
|
12.53 %
|
11.92 %
|
12.00 %
|
12.11 %
|
11.91 %
|
Ratio of tangible
common equity to tangible assets
|
7.69 %
|
7.07 %
|
7.22 %
|
7.25 %
|
7.00 %
|
|
|
|
|
|
|
Calculation of Tangible Book Value per
Share
|
|
|
|
|
|
|
|
|
|
|
|
Total common
stockholders' equity
|
$ 3,426,488
|
$ 3,285,555
|
$ 3,356,326
|
$ 3,339,901
|
$ 3,269,362
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,319,598)
|
Other
intangible assets
|
(112,645)
|
(116,660)
|
(120,758)
|
(124,854)
|
(128,951)
|
Total
intangibles
|
(1,433,444)
|
(1,437,459)
|
(1,441,557)
|
(1,445,653)
|
(1,448,549)
|
Tangible common
stockholders' equity
|
$ 1,993,044
|
$ 1,848,096
|
$ 1,914,769
|
$ 1,894,248
|
$ 1,820,813
|
Shares of common stock
outstanding
|
125,184,119
|
125,133,281
|
126,224,707
|
127,282,192
|
127,046,654
|
Book value per common
share
|
$
27.37
|
$
26.26
|
$
26.59
|
$
26.24
|
$
25.73
|
Tangible book value per
common share
|
$
15.92
|
$
14.77
|
$
15.17
|
$
14.88
|
$
14.33
|
|
|
|
|
|
|
Calculation of Coverage Ratio of Uninsured,
Non-Collateralized Deposits
|
|
|
|
|
|
|
|
|
|
Uninsured deposits at
Simmons Bank
|
$ 8,328,444
|
$ 8,143,200
|
$ 8,507,395
|
$ 8,978,581
|
$ 8,913,990
|
Less: Collateralized
deposits (excluding portion that is FDIC insured)
|
2,846,716
|
2,835,405
|
3,030,550
|
3,081,829
|
2,759,248
|
Less: Intercompany
eliminations
|
728,480
|
676,840
|
674,552
|
628,592
|
529,042
|
Total uninsured,
non-collateralized deposits
|
$ 4,753,248
|
$ 4,630,955
|
$ 4,802,293
|
$ 5,268,160
|
$ 5,625,700
|
|
|
|
|
|
|
FHLB borrowing
availability
|
$ 5,401,000
|
$ 5,372,000
|
$ 5,345,000
|
$ 5,574,000
|
$ 5,442,000
|
Unpledged
securities
|
3,817,000
|
4,124,000
|
3,877,000
|
3,000,000
|
3,180,000
|
Fed funds lines, Fed
discount window and
|
|
|
|
|
|
Bank Term
Funding Program
|
1,998,000
|
1,951,000
|
1,874,000
|
2,206,000
|
1,982,000
|
Additional liquidity
sources
|
$
11,216,000
|
$
11,447,000
|
$
11,096,000
|
$
10,780,000
|
$
10,604,000
|
|
|
|
|
|
|
Uninsured,
non-collateralized deposit coverage ratio
|
2.4
|
2.5
|
2.3
|
2.0
|
1.9
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Quarter-to-Date
|
|
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands)
|
|
|
|
|
|
Calculation of Adjusted Return on Average
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
23,907
|
$
47,247
|
$
58,314
|
$
45,589
|
$
83,260
|
Certain items
(non-GAAP)
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
FDIC Deposit Insurance
special assessment
|
10,521
|
-
|
-
|
-
|
-
|
Merger related
costs
|
-
|
5
|
19
|
1,396
|
35
|
Early retirement
program
|
1,032
|
1,557
|
3,609
|
-
|
-
|
Loss (gain) on sale of
securities
|
20,218
|
-
|
391
|
-
|
52
|
Branch right sizing
(net)
|
3,846
|
547
|
95
|
979
|
1,104
|
Tax effect of certain
items (2)
|
(9,309)
|
(552)
|
(1,074)
|
(621)
|
754
|
Adjusted earnings
(non-GAAP)
|
$
50,215
|
$
48,804
|
$
61,354
|
$
47,343
|
$
81,131
|
|
|
|
|
|
|
Average total
assets
|
$ 27,370,811
|
$ 27,594,611
|
$ 27,766,139
|
$ 27,488,732
|
$ 27,180,575
|
|
|
|
|
|
|
Return on average
assets
|
0.35 %
|
0.68 %
|
0.84 %
|
0.67 %
|
1.22 %
|
Adjusted return on
average assets (non-GAAP)
|
0.73 %
|
0.70 %
|
0.89 %
|
0.70 %
|
1.18 %
|
|
|
|
|
|
|
Calculation of Return on Tangible Common
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
23,907
|
$
47,247
|
$
58,314
|
$
45,589
|
$
83,260
|
Amortization of
intangibles, net of taxes
|
2,965
|
3,027
|
3,026
|
3,026
|
3,035
|
Total income available
to common stockholders
|
$
26,872
|
$
50,274
|
$
61,340
|
$
48,615
|
$
86,295
|
Certain items
(non-GAAP)
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
FDIC Deposit Insurance
special assessment
|
10,521
|
-
|
-
|
-
|
-
|
Merger related
costs
|
-
|
5
|
19
|
1,396
|
35
|
Early retirement
program
|
1,032
|
1,557
|
3,609
|
-
|
-
|
Loss (gain) on sale of
securities
|
20,218
|
-
|
391
|
-
|
52
|
Branch right sizing
(net)
|
3,846
|
547
|
95
|
979
|
1,104
|
Tax effect of certain
items (2)
|
(9,309)
|
(552)
|
(1,074)
|
(621)
|
754
|
Adjusted earnings
(non-GAAP)
|
50,215
|
48,804
|
61,354
|
47,343
|
81,131
|
Amortization of
intangibles, net of taxes
|
2,965
|
3,027
|
3,026
|
3,026
|
3,035
|
Total adjusted earnings
available to common stockholders (non-GAAP)
|
$
53,180
|
$
51,831
|
$
64,380
|
$
50,369
|
$
84,166
|
|
|
|
|
|
|
Average common
stockholders' equity
|
$
3,336,247
|
$
3,371,678
|
$
3,358,924
|
$
3,370,651
|
$
3,214,912
|
Average intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,319,624)
|
(1,309,124)
|
Other
intangibles
|
(114,861)
|
(119,125)
|
(123,173)
|
(127,394)
|
(131,229)
|
Total average
intangibles
|
(1,435,660)
|
(1,439,924)
|
(1,443,972)
|
(1,447,018)
|
(1,440,353)
|
Average tangible common
stockholders' equity (non-GAAP)
|
$
1,900,587
|
$
1,931,754
|
$
1,914,952
|
$
1,923,633
|
$
1,774,559
|
|
|
|
|
|
|
Return on average
common equity
|
2.84 %
|
5.56 %
|
6.96 %
|
5.49 %
|
10.27 %
|
Return on tangible
common equity
|
5.61 %
|
10.33 %
|
12.85 %
|
10.25 %
|
19.29 %
|
Adjusted return on
average common equity (non-GAAP)
|
5.97 %
|
5.74 %
|
7.33 %
|
5.70 %
|
10.01 %
|
Adjusted return on
tangible common equity (non-GAAP)
|
11.10 %
|
10.64 %
|
13.48 %
|
10.62 %
|
18.82 %
|
|
|
|
|
|
|
Calculation of Efficiency Ratio and Adjusted
Efficiency Ratio (1)
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(efficiency ratio numerator)
|
$
148,139
|
$
131,998
|
$
139,696
|
$
143,228
|
$
142,575
|
Certain noninterest
expense items (non-GAAP)
|
|
|
|
|
|
Merger related
costs
|
-
|
(5)
|
(19)
|
(1,396)
|
(35)
|
Early retirement
program
|
(1,032)
|
(1,557)
|
(3,609)
|
-
|
-
|
FDIC Deposit Insurance
special assessment
|
(10,521)
|
-
|
-
|
-
|
-
|
Branch right sizing
expense
|
(3,846)
|
(547)
|
(95)
|
(979)
|
(1,104)
|
Other real estate and
foreclosure expense adjustment
|
(189)
|
(228)
|
(289)
|
(186)
|
(350)
|
Amortization of
intangibles adjustment
|
(4,015)
|
(4,097)
|
(4,098)
|
(4,096)
|
(4,108)
|
Adjusted efficiency
ratio numerator
|
$
128,536
|
$
125,564
|
$
131,586
|
$
136,571
|
$
136,978
|
|
|
|
|
|
|
Net interest
income
|
$
155,628
|
$
153,433
|
$
163,230
|
$
177,835
|
$
193,026
|
Noninterest
income
|
21,974
|
42,777
|
44,980
|
45,835
|
44,647
|
Fully tax-equivalent
adjustment (effective tax rate of 26.135%)
|
6,511
|
6,515
|
6,106
|
6,311
|
6,770
|
Efficiency ratio
denominator
|
184,113
|
202,725
|
214,316
|
229,981
|
244,443
|
Certain noninterest
income items (non-GAAP)
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
(Gain) loss on sale of
securities
|
20,218
|
-
|
391
|
-
|
52
|
Adjusted efficiency
ratio denominator
|
$
204,331
|
$
202,725
|
$
214,707
|
$
229,981
|
$
240,421
|
|
|
|
|
|
|
Efficiency ratio
(1)
|
80.46 %
|
65.11 %
|
65.18 %
|
62.28 %
|
58.33 %
|
Adjusted efficiency
ratio (non-GAAP) (1)
|
62.91 %
|
61.94 %
|
61.29 %
|
59.38 %
|
56.97 %
|
|
|
|
|
|
|
(1) Efficiency ratio is noninterest expense as
a percent of net interest income (fully taxable equivalent) and
noninterest revenues. Adjusted
efficiency
|
ratio is noninterest expense before foreclosed
property expense, amortization of intangibles and certain adjusting
items as a percent of net interest
|
income (fully taxable equivalent) and
noninterest revenues, excluding gains and losses from securities
transactions and certain adjusting items, and
is
|
a non-GAAP measurement.
|
|
|
|
(2) Effective tax rate of
26.135%.
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Quarter-to-Date (continued)
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands)
|
|
|
|
|
|
Calculation of Total Revenue and Adjusted Total
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
155,628
|
$
153,433
|
$
163,230
|
$
177,835
|
$
193,026
|
Noninterest
income
|
21,974
|
42,777
|
44,980
|
45,835
|
44,647
|
Total
revenue
|
177,602
|
196,210
|
208,210
|
223,670
|
237,673
|
Certain items, pre-tax
(non-GAAP)
|
|
|
|
|
|
Less: Gain on
insurance settlement
|
-
|
-
|
-
|
-
|
4,074
|
Less: Gain (loss) on
sale of securities
|
(20,218)
|
-
|
(391)
|
-
|
(52)
|
Adjusted total
revenue
|
$
197,820
|
$
196,210
|
$
208,601
|
$
223,670
|
$
233,651
|
|
|
|
|
|
|
Calculation of Pre-Provision Net Revenue
(PPNR)
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
155,628
|
$
153,433
|
$
163,230
|
$
177,835
|
$
193,026
|
Noninterest
income
|
21,974
|
42,777
|
44,980
|
45,835
|
44,647
|
Total
revenue
|
177,602
|
196,210
|
208,210
|
223,670
|
237,673
|
Less: Noninterest
expense
|
148,139
|
131,998
|
139,696
|
143,228
|
142,575
|
Pre-Provision Net
Revenue (PPNR)
|
$
29,463
|
$
64,212
|
$
68,514
|
$
80,442
|
$
95,098
|
|
|
|
|
|
|
Calculation of Adjusted Pre-Provision Net
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Provision Net
Revenue (PPNR)
|
$
29,463
|
$
64,212
|
$
68,514
|
$
80,442
|
$
95,098
|
Certain items, pre-tax
(non-GAAP)
|
|
|
|
|
|
Less: Gain on
insurance settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
Plus: Loss (gain) on
sale of securities
|
20,218
|
-
|
391
|
-
|
52
|
Plus: FDIC Deposit
Insurance special assessment
|
10,521
|
-
|
-
|
-
|
-
|
Plus: Merger related
costs
|
-
|
5
|
19
|
1,396
|
35
|
Plus: Early retirement
program costs
|
1,032
|
1,557
|
3,609
|
-
|
-
|
Plus: Branch right
sizing costs (net)
|
3,846
|
547
|
95
|
979
|
1,104
|
Adjusted Pre-Provision
Net Revenue
|
$
65,080
|
$
66,321
|
$
72,628
|
$
82,817
|
$
92,215
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Year-to-Date
|
|
|
|
|
|
For the Quarters Ended
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
Dec 31
|
(Unaudited)
|
2023
|
2023
|
2023
|
2023
|
2022
|
($ in thousands)
|
|
|
|
|
|
Calculation of Adjusted Return on Average
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
175,057
|
$
151,150
|
$
103,903
|
$
45,589
|
$
256,412
|
Certain items
(non-GAAP)
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
-
|
-
|
365
|
Gain on sale of
intellectual property
|
-
|
-
|
-
|
-
|
(750)
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
FDIC Deposit Insurance
special assessment
|
10,521
|
-
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
-
|
1,738
|
Merger related
costs
|
1,420
|
1,420
|
1,415
|
1,396
|
22,476
|
Early retirement
program
|
6,198
|
5,166
|
3,609
|
-
|
-
|
Loss (gain) on sale of
securities
|
20,609
|
391
|
391
|
-
|
278
|
Branch right sizing
(net)
|
5,467
|
1,621
|
1,074
|
979
|
3,628
|
Day 2 CECL
provision
|
-
|
-
|
-
|
-
|
33,779
|
Tax effect of certain
items (2)
|
(11,556)
|
(2,247)
|
(1,695)
|
(621)
|
(15,012)
|
Adjusted earnings
(non-GAAP)
|
$
207,716
|
$
157,501
|
$
108,697
|
$
47,343
|
$
298,840
|
|
|
|
|
|
|
Average total
assets
|
$ 27,554,859
|
$ 27,616,882
|
$ 27,628,202
|
$ 27,488,732
|
$ 26,418,838
|
|
|
|
|
|
|
Return on average
assets
|
0.64 %
|
0.73 %
|
0.76 %
|
0.67 %
|
0.97 %
|
Adjusted return on
average assets (non-GAAP)
|
0.75 %
|
0.76 %
|
0.79 %
|
0.70 %
|
1.13 %
|
|
|
|
|
|
|
Calculation of Return on Tangible Common
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
175,057
|
$
151,150
|
$
103,903
|
$
45,589
|
$
256,412
|
Amortization of
intangibles, net of taxes
|
12,044
|
9,079
|
6,052
|
3,026
|
11,756
|
Total income available
to common stockholders
|
$
187,101
|
$
160,229
|
$
109,955
|
$
48,615
|
$
268,168
|
Certain items
(non-GAAP)
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
$
-
|
$
-
|
$
-
|
$
-
|
$
365
|
Gain on sale of
intellectual property
|
-
|
-
|
-
|
-
|
(750)
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
FDIC Deposit Insurance
special assessment
|
10,521
|
-
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
-
|
1,738
|
Merger related
costs
|
1,420
|
1,420
|
1,415
|
1,396
|
22,476
|
Early retirement
program
|
6,198
|
5,166
|
3,609
|
-
|
-
|
Loss (gain) on sale of
securities
|
20,609
|
391
|
391
|
-
|
278
|
Branch right sizing
(net)
|
5,467
|
1,621
|
1,074
|
979
|
3,628
|
Day 2 CECL
provision
|
-
|
-
|
-
|
-
|
33,779
|
Tax effect of certain
items (2)
|
(11,556)
|
(2,247)
|
(1,695)
|
(621)
|
(15,012)
|
Adjusted earnings
(non-GAAP)
|
207,716
|
157,501
|
108,697
|
47,343
|
298,840
|
Amortization of
intangibles, net of taxes
|
12,044
|
9,079
|
6,052
|
3,026
|
11,756
|
Total adjusted earnings
available to common stockholders (non-GAAP)
|
$
219,760
|
$
166,580
|
$
114,749
|
$
50,369
|
$
310,596
|
|
|
|
|
|
|
Average common
stockholders' equity
|
$
3,359,312
|
$
3,367,088
|
$
3,364,755
|
$
3,370,651
|
$
3,259,664
|
Average intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,510)
|
(1,320,412)
|
(1,320,215)
|
(1,319,624)
|
(1,266,762)
|
Other
intangibles
|
(121,098)
|
(123,200)
|
(125,272)
|
(127,394)
|
(121,622)
|
Total average
intangibles
|
(1,441,608)
|
(1,443,612)
|
(1,445,487)
|
(1,447,018)
|
(1,388,384)
|
Average tangible common
stockholders' equity (non-GAAP)
|
$
1,917,704
|
$
1,923,476
|
$
1,919,268
|
$
1,923,633
|
$
1,871,280
|
|
|
|
|
|
|
Return on average
common equity
|
5.21 %
|
6.00 %
|
6.23 %
|
5.49 %
|
7.87 %
|
Return on tangible
common equity
|
9.76 %
|
11.14 %
|
11.55 %
|
10.25 %
|
14.33 %
|
Adjusted return on
average common equity (non-GAAP)
|
6.18 %
|
6.25 %
|
6.51 %
|
5.70 %
|
9.17 %
|
Adjusted return on
tangible common equity (non-GAAP)
|
11.46 %
|
11.58 %
|
12.06 %
|
10.62 %
|
16.60 %
|
|
|
|
|
|
|
Calculation of Efficiency Ratio and Adjusted
Efficiency Ratio (1)
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(efficiency ratio numerator)
|
$
563,061
|
$
414,922
|
$
282,924
|
$
143,228
|
$
566,748
|
Certain noninterest
expense items (non-GAAP)
|
|
|
|
|
|
Merger related
costs
|
(1,420)
|
(1,420)
|
(1,415)
|
(1,396)
|
(22,476)
|
Early retirement
program
|
(6,198)
|
(5,166)
|
(3,609)
|
-
|
-
|
FDIC Deposit Insurance
special assessment
|
(10,521)
|
-
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
-
|
(1,738)
|
Branch right sizing
expense
|
(5,467)
|
(1,621)
|
(1,074)
|
(979)
|
(3,475)
|
Other real estate and
foreclosure expense adjustment
|
(892)
|
(703)
|
(475)
|
(186)
|
(1,003)
|
Amortization of
intangibles adjustment
|
(16,306)
|
(12,291)
|
(8,194)
|
(4,096)
|
(15,915)
|
Adjusted efficiency
ratio numerator
|
$
522,257
|
$
393,721
|
$
268,157
|
$
136,571
|
$
522,141
|
|
|
|
|
|
|
Net interest
income
|
$
650,126
|
$
494,498
|
$
341,065
|
$
177,835
|
$
717,316
|
Noninterest
income
|
155,566
|
133,592
|
90,815
|
45,835
|
170,066
|
Fully tax-equivalent
adjustment (effective tax rate of 26.135%)
|
25,443
|
18,932
|
12,417
|
6,311
|
24,671
|
Efficiency ratio
denominator
|
831,135
|
647,022
|
444,297
|
229,981
|
912,053
|
Certain noninterest
income items (non-GAAP)
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
-
|
-
|
-
|
(4,074)
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
-
|
-
|
365
|
Gain on sale of
intellectual property
|
-
|
-
|
-
|
-
|
(750)
|
Branch right sizing
income
|
-
|
-
|
-
|
-
|
153
|
(Gain) loss on sale of
securities
|
20,609
|
391
|
391
|
-
|
278
|
Adjusted efficiency
ratio denominator
|
$
851,744
|
$
647,413
|
$
444,688
|
$
229,981
|
$
908,025
|
|
|
|
|
|
|
Efficiency ratio
(1)
|
67.75 %
|
64.13 %
|
63.68 %
|
62.28 %
|
62.14 %
|
Adjusted efficiency
ratio (non-GAAP) (1)
|
61.32 %
|
60.81 %
|
60.30 %
|
59.38 %
|
57.50 %
|
|
|
|
|
|
|
(1) Efficiency ratio is noninterest expense as
a percent of net interest income (fully taxable equivalent) and
noninterest revenues. Adjusted
efficiency
|
ratio is noninterest expense before foreclosed
property expense, amortization of intangibles and certain adjusting
items as a percent of net interest
|
income (fully taxable equivalent) and
noninterest revenues, excluding gains and losses from securities
transactions and certain adjusting items, and
is
|
a non-GAAP measurement.
|
|
|
|
|
|
(2) Effective tax rate of
26.135%.
|
|
|
|
|
|
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SOURCE Simmons First National Corporation