PINE
BLUFF, Ark., April 24,
2024 /PRNewswire/ -- Bob
Fehlman, Simmons' Chief Executive Officer, commented on
first quarter 2024 results:
Simmons delivered solid results in the quarter that clearly
reflect our driving principles centered on a strong risk management
culture, profitability and organic growth.
Total loans increased 4 percent on a linked quarter
annualized basis and our commercial loan pipeline expanded for the
third consecutive quarter. Total deposits were up 2 percent on a
linked quarter annualized basis. We were particularly encouraged by
the growth in money market and savings accounts again this quarter
after robust growth in the fourth quarter of 2023. Importantly, the
growth in loans and deposits, coupled with lower wholesale funding
costs, enabled us to maintain a relatively stable net interest
margin despite continued low-cost deposit migration.
Credit trends throughout the industry are beginning to
normalize after an extended period at historically low levels. To
that end, provision expense exceeded net charge-offs in the quarter
and our allowance for credit losses as a percentage of loans stood
at 1.34 percent. Moreover, our strong capital and liquidity
positions provide us a solid foundation to continue delivering
sound, profitable growth.
Financial Highlights
|
1Q24
|
4Q23
|
1Q23
|
|
1Q24 Highlights
|
Balance Sheet (in millions)
|
|
|
|
|
Comparisons reflect 1Q24 vs
4Q23
• Net income of
$38.9 million and diluted EPS of $0.31
• Adjusted
earnings1 of $40.4 million and adjusted diluted
EPS1 of $0.32
• Total revenue
of $195.1 million. PPNR1 of $55.2 million; Adjusted
PPNR1 of $57.2 million
• Net interest
margin at 2.66%, relatively stable on a linked quarter
basis
• Provision for
credit losses on loans exceeded net charge-offs in the quarter by
$2.1 million
• Noninterest
expense includes $1.6 million FDIC special assessment in 1Q24 and
$10.5 million in 4Q23
• NCO 19 bps in
1Q24; 11 bps of NCOs associated with run-off/ acquired
portfolios
• Increase in
NPAs primarily due to two loans from run-off/ acquired
portfolios
• ACL ratio ends
the quarter at 1.34%; NPL coverage ratio at 212%
• EA ratio
12.56%; TCE ratio1 up 6 bps to 7.75%
|
Total loans
|
$17,002
|
$16,846
|
$16,555
|
|
Total investment
securities
|
6,735
|
6,878
|
7,521
|
|
Total
deposits
|
22,353
|
22,245
|
22,452
|
|
Total assets
|
27,372
|
27,346
|
27,583
|
|
Total shareholders'
equity
|
3,439
|
3,426
|
3,340
|
|
Asset Quality
|
|
|
|
|
Net charge-off ratio
(NCO ratio)
|
0.19 %
|
0.11 %
|
0.03 %
|
|
Nonperforming loan
ratio
|
0.63
|
0.50
|
0.38
|
|
Nonperforming assets to
total assets
|
0.41
|
0.33
|
0.26
|
|
Allowance for credit
losses to total loans
|
1.34
|
1.34
|
1.25
|
|
Nonperforming loan
coverage ratio
|
212
|
267
|
324
|
|
Performance Measures (in
millions)
|
|
|
|
|
Total
revenue
|
$195.1
|
$177.6
|
$223.7
|
|
Adjusted total
revenue1
|
195.1
|
197.8
|
223.7
|
|
Pre-provision net
revenue1 (PPNR)
|
55.2
|
29.5
|
80.4
|
|
Adjusted pre-provision
net revenue1
|
57.2
|
65.1
|
82.8
|
|
Provision for credit
losses
|
10.2
|
10.0
|
24.2
|
|
Per share Data
|
|
|
|
|
Diluted
earnings
|
$ 0.31
|
$ 0.19
|
$ 0.36
|
|
Adjusted diluted
earnings1
|
0.32
|
0.40
|
0.37
|
|
Book value
|
27.42
|
27.37
|
26.24
|
|
Tangible book
value1
|
16.02
|
15.92
|
14.88
|
|
Capital Ratios
|
|
|
|
|
Equity to assets (EA
ratio)
|
12.56 %
|
12.53 %
|
12.11 %
|
|
Tangible common equity
(TCE) ratio1
|
7.75
|
7.69
|
7.25
|
|
Common equity tier 1
(CET1) ratio
|
11.95
|
12.11
|
11.87
|
|
Total risk-based
capital ratio
|
14.43
|
14.39
|
14.47
|
|
Liquidity ($ in millions)
|
|
|
|
|
Loan to deposit
ratio
|
76.06 %
|
75.73 %
|
73.74 %
|
|
Borrowed funds to total
liabilities
|
5.42
|
5.88
|
6.32
|
|
Uninsured,
non-collateralized deposits (UCD)
|
$
4,643
|
$
4,753
|
$
5,268
|
|
Additional liquidity
sources
|
11,457
|
11,216
|
10,780
|
|
Coverage ratio of
UCD
|
2.5x
|
2.4x
|
2.0x
|
|
Simmons First National Corporation (NASDAQ:
SFNC) (Simmons or Company) today reported net income of
$38.9 million for the first quarter
of 2024, compared to $23.9 million
for the fourth quarter of 2023 and $45.6
million for the first quarter of 2023. Diluted earnings per
share were $0.31 for the first
quarter of 2024, compared to $0.19 in
the fourth quarter of 2023 and $0.36
for the first quarter of 2023. Adjusted earnings1 for
the first quarter of 2024 were $40.4
million, compared to $50.2
million for the fourth quarter of 2023 and $47.3 million for the first quarter of 2023.
Adjusted diluted earnings per share1 for the first
quarter of 2024 were $0.32, compared
to $0.40 for the fourth quarter of
2023 and $0.37 for the first quarter
of 2023.
During the first quarter of 2024, we recorded $1.6 million of noninterest expense for an FDIC
special assessment levied to support the Deposit Insurance Fund
following the failure of certain banks in 2023. This expense was in
addition to the $10.5 million FDIC
special assessment we recorded in the fourth quarter of 2023. The
table below summarizes the impact of these items, along with the
impact of certain other items, consisting primarily of branch right
sizing, early retirement and a loss recorded in connection with the
strategic sale of available-for-sale securities. 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
|
1Q24
|
4Q23
|
1Q23
|
Net
income
|
$
38.9
|
$
23.9
|
$
45.6
|
|
|
|
|
Loss on sale of AFS
investment securities
|
-
|
20.2
|
-
|
FDIC special
assessment
|
1.6
|
10.5
|
-
|
Branch right sizing,
net
|
0.2
|
3.9
|
0.9
|
Early retirement
program
|
0.2
|
1.0
|
-
|
Merger related
costs
|
-
|
-
|
1.4
|
Total
pre-tax impact
|
2.0
|
35.6
|
2.3
|
Tax
effect2
|
(0.5)
|
(9.3)
|
(0.6)
|
Total
impact on earnings
|
1.5
|
26.3
|
1.7
|
Adjusted
earnings1
|
$
40.4
|
$
50.2
|
$
47.3
|
|
|
|
|
Diluted
EPS
|
$
0.31
|
$
0.19
|
$
0.36
|
|
|
|
|
Loss on sale of AFS
investment securities
|
-
|
0.16
|
-
|
FDIC special
assessment
|
0.01
|
0.08
|
-
|
Branch right sizing,
net
|
-
|
0.03
|
0.01
|
Early retirement
program
|
-
|
0.01
|
-
|
Merger related
costs
|
-
|
-
|
0.01
|
Total
pre-tax impact
|
0.01
|
0.28
|
0.02
|
Tax
effect2
|
-
|
(0.07)
|
(0.01)
|
Total
impact on earnings
|
0.01
|
0.21
|
0.01
|
Adjusted Diluted
EPS1
|
$
0.32
|
$
0.40
|
$
0.37
|
Net Interest Income
Net interest income for the first
quarter of 2024 totaled $151.9
million, compared to $155.6
million for the fourth quarter of 2023 and $177.8 million for the first quarter of 2023.
Interest income totaled $322.6
million for the first quarter of 2024, compared to
$323.5 million for the fourth quarter
of 2023. The decrease in interest income on a linked quarter basis
was primarily due to a decline in the contribution from investment
securities resulting from a lower average balance in the portfolio.
Interest expense totaled $170.7
million for the first quarter of 2024, up $2.9 million on a linked quarter basis as an
increase in deposit costs more than offset a decline in other
borrowings. Included in net interest income is accretion recognized
on assets, which totaled $1.1 million
for the first quarter of 2024, $1.8
million in the fourth quarter of 2023 and $2.6 million in the first quarter of 2023.
The yield on loans on a fully taxable equivalent (FTE) basis for
the first quarter of 2024 was 6.24 percent, compared to 6.20
percent in the fourth quarter of 2023 and 5.67 percent in the first
quarter of 2023. The yield on investment securities in the first
quarter of 2024 was 3.76 percent, compared to 3.67 percent in the
fourth quarter of 2023 and 2.92 percent in the first quarter of
2023. Cost of deposits for the first quarter of 2024 was 2.75
percent, compared to 2.58 percent in the fourth quarter of 2023 and
1.58 percent in the first quarter of 2023. The net interest margin
on an FTE basis for the first quarter of 2024 was 2.66 percent,
compared to 2.68 percent in the fourth quarter of 2023 and 3.09
percent in the first quarter of 2023.
Select
Yield/Rates
|
1Q24
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
Loan yield
(FTE)2
|
6.24 %
|
6.20 %
|
6.08 %
|
5.89 %
|
5.67 %
|
Investment securities
yield (FTE)2
|
3.76
|
3.67
|
3.08
|
2.91
|
2.92
|
Cost of interest
bearing deposits
|
3.48
|
3.31
|
3.06
|
2.57
|
2.10
|
Cost of
deposits
|
2.75
|
2.58
|
2.37
|
1.96
|
1.58
|
Cost of borrowed
funds
|
5.85
|
5.79
|
5.60
|
5.31
|
4.29
|
Net interest spread
(FTE)2
|
1.89
|
1.93
|
1.87
|
2.10
|
2.52
|
Net interest margin
(FTE)2
|
2.66
|
2.68
|
2.61
|
2.76
|
3.09
|
Noninterest Income
Noninterest income for the first
quarter of 2024 was $43.2 million,
compared to $22.0 million in the
fourth quarter of 2023 and $45.8
million in the first quarter of 2023. Adjusted noninterest
income1 was $43.2 million
in the first quarter of 2024, compared to $42.2 million in the fourth quarter of 2023 and
$45.8 million in the first quarter of
2023. The increase in noninterest income on a linked quarter basis
was primarily the result of increased activity related to debit and
credit card fees, mortgage banking income and bank owned life
insurance income, as well as a $20.2
million loss on the strategic sale of available-for-sale
securities recorded in the fourth quarter of 2023.
Noninterest
Income
$ in
millions
|
1Q24
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
Service charges on
deposit accounts
|
$ 12.0
|
$ 12.8
|
$ 12.4
|
$ 12.9
|
$ 12.4
|
Wealth management
fees
|
7.5
|
7.7
|
7.7
|
7.4
|
7.4
|
Debit and credit card
fees
|
8.2
|
7.8
|
7.7
|
8.0
|
8.0
|
Mortgage lending
income
|
2.3
|
1.6
|
2.2
|
2.4
|
1.6
|
Other service charges
and fees
|
2.2
|
2.3
|
2.2
|
2.3
|
2.3
|
Bank owned life
insurance
|
3.8
|
3.1
|
3.1
|
2.6
|
3.0
|
Gain (loss) on sale of
securities
|
-
|
(20.2)
|
-
|
(0.4)
|
-
|
Other income
|
7.2
|
6.9
|
7.4
|
9.8
|
11.3
|
Total
noninterest income
|
$ 43.2
|
$ 22.0
|
$ 42.8
|
$ 45.0
|
$ 45.8
|
|
|
|
|
|
|
Adjusted noninterest
income1
|
$ 43.2
|
$ 42.2
|
$ 42.8
|
$ 45.4
|
$ 45.8
|
Noninterest Expense
Noninterest expense for the first
quarter of 2024 was $139.9 million,
compared to $148.1 million for the
fourth quarter of 2023 and $143.2
million for the first quarter of 2023. During the first
quarter of 2024 and fourth quarter of 2023, noninterest expense
included an FDIC special assessment of $1.6
million and $10.5 million,
respectively. Also included in noninterest expense are certain
items consisting of branch right sizing, early retirement and
merger and integration costs. Collectively, these items totaled
$2.0 million for the first quarter of
2024, $15.4 million for the fourth
quarter of 2023 and $2.4 million for
the first quarter of 2023. Excluding these items (which are
described in the "Reconciliation of Non-GAAP Financial Measures"
tables below), adjusted noninterest expense1 was
$137.9 million for the first quarter
of 2024, $132.7 million for the
fourth quarter of 2023 and $140.9
million for the first quarter of 2023. The decrease in
noninterest expense on a linked quarter basis was primarily the
result of lower FDIC special assessment charges and branch right
sizing costs during the first quarter of 2024, offset in part by an
increase in salaries and employee benefits principally due to
higher payroll taxes typically incurred during the first
quarter.
Noninterest
Expense
$ in
millions
|
1Q24
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
Salaries and employee
benefits
|
$ 72.7
|
$ 67.0
|
$ 67.4
|
$ 74.7
|
$ 77.0
|
Occupancy expense,
net
|
12.3
|
11.7
|
12.0
|
11.4
|
11.6
|
Furniture and
equipment
|
5.1
|
5.4
|
5.1
|
5.1
|
5.1
|
Deposit
insurance
|
5.5
|
4.7
|
4.7
|
5.2
|
4.9
|
Other real estate and
foreclosure expense
|
0.2
|
0.2
|
0.2
|
0.3
|
0.2
|
Merger related
costs
|
-
|
-
|
-
|
-
|
1.4
|
FDIC special
assessment
|
1.6
|
10.5
|
-
|
-
|
-
|
Other operating
expenses
|
42.5
|
48.6
|
42.6
|
42.9
|
43.1
|
Total
noninterest expense
|
$139.9
|
$148.1
|
$132.0
|
$139.7
|
$143.2
|
|
|
|
|
|
|
Adjusted salaries and
employee benefits1
|
$ 72.4
|
$ 66.0
|
$ 65.8
|
$ 71.1
|
$ 77.0
|
Adjusted other
operating expenses1
|
42.4
|
44.9
|
42.1
|
43.0
|
42.3
|
Adjusted noninterest
expense1
|
137.9
|
132.7
|
129.9
|
136.0
|
140.9
|
Efficiency
ratio
|
69.41 %
|
80.46 %
|
65.11 %
|
65.18 %
|
62.28 %
|
Adjusted efficiency
ratio1
|
66.42
|
62.91
|
61.94
|
61.29
|
59.38
|
Full-time equivalent
employees
|
2,989
|
3,007
|
3,005
|
3,066
|
3,189
|
Loans and Unfunded Loan Commitments
Total loans at the
end of the first quarter of 2024 were $17.0
billion, up $447 million, or 3
percent, compared to $16.6 billion at
the end of the first quarter of 2023. Total loans on a linked
quarter basis increased $156 million,
or 1 percent, reflecting our focus on maintaining disciplined
pricing strategies and prudent underwriting standards given
projections surrounding near-term economic activity and conditions.
Unfunded loan commitments at the end of the first quarter of 2024
were $3.9 billion, compared to
$3.9 billion at the end of the fourth
quarter of 2023 and $4.7 billion at
the end of the first quarter of 2023. At the same time, our
commercial loan pipeline experienced measured growth for the third
consecutive quarter. Commercial loans ready to close at the end of
the first quarter of 2024 were $381
million and the rate on ready to close commercial loans was
8.38 percent.
Loans and Unfunded
Loan Commitments
$ in
millions
|
1Q24
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
Total loans
|
$17,002
|
$16,846
|
$16,772
|
$16,834
|
$16,555
|
Unfunded loan
commitments
|
3,875
|
3,880
|
4,049
|
4,443
|
4,725
|
Deposits
Total deposits at the end of the first
quarter of 2024 were $22.4 billion,
compared to $22.2 billion at the end
of the fourth quarter of 2023 and $22.5
billion at the end of the first quarter of 2023. On a linked
quarter basis, deposit growth was driven by increased levels of
interest bearing transaction accounts (interest bearing checking,
money market and savings accounts), time deposits and brokered
deposits. Noninterest bearing deposits totaled $4.7 billion at the end of the first quarter of
2024, compared to $4.8 billion at the
end of the fourth quarter of 2023. The loan-to-deposit ratio at the
end of the first quarter of 2024 was 76 percent, unchanged from the
end of the fourth quarter of 2023 and up slightly from 74 percent
at the end of the first quarter of 2023.
Deposits
$ in
millions
|
1Q24
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
Noninterest bearing
deposits
|
$
4,698
|
$
4,801
|
$
4,991
|
$
5,265
|
$
5,489
|
Interest bearing
transaction accounts
|
10,316
|
10,277
|
9,875
|
10,203
|
10,625
|
Time
deposits
|
4,314
|
4,266
|
4,103
|
3,784
|
3,385
|
Brokered
deposits
|
3,025
|
2,901
|
3,262
|
3,237
|
2,953
|
Total
deposits
|
$22,353
|
$22,245
|
$22,231
|
$22,489
|
$22,452
|
|
|
|
|
|
|
Noninterest bearing
deposits to total deposits
|
21 %
|
22 %
|
22 %
|
23 %
|
24 %
|
Total loans to total
deposits
|
76
|
76
|
75
|
75
|
74
|
Asset Quality
Provision for credit losses totaled
$10.2 million for the first quarter
of 2024, compared to $10.0 million
for the fourth quarter of 2023 and $24.2
million for the first quarter of 2023. Included in provision
for credit losses was the recapture of provision expense on
investment securities totaling $1.2
million for the fourth quarter of 2023, while the first
quarter of 2023 included provision expense on investment securities
totaling $13.3 million. The allowance
for credit losses on loans at the end of the first quarter of 2024
was $227.4 million, compared to
$225.2 million at the end of the
fourth quarter of 2023 and $206.6
million at the end of the first quarter of 2023. The
increase in allowance for credit losses on loans 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. The allowance for credit losses on loans as a
percentage of total loans was 1.34 percent at the end of the first
quarter of 2024, unchanged from fourth quarter 2023 levels and up
from 1.25 percent at the end of the first quarter of 2023.
Net charge-offs as a percentage of average loans for the first
quarter of 2024 were 19 basis points, compared to 11 basis points
for the fourth quarter of 2023 and 3 basis points for the first
quarter of 2023. The increase in net charge-offs on a linked
quarter basis was primarily due to $4.5
million of charge-offs associated with the small ticket
equipment finance portfolio that has been designated for run-off,
as well as certain loans acquired through mergers since 2020. Net
charge-offs from run-off and acquired portfolios accounted for 11
basis points of total net charge-offs recorded during the first
quarter of 2024.
Total nonperforming loans at the end of the first quarter of
2024 were $107.3 million, compared to
$84.5 million at the end of the
fourth quarter of 2023 and $63.7
million at the end of the first quarter of 2023. The
increase in nonperforming loans on a linked quarter basis was
primarily due to an $11.0 million
asset based lending loan and a $6.6
million non-owner occupied real estate loan to a business
that was negatively impacted by Covid. The asset based lending
portfolio was acquired in 2021 and has also been designated for
run-off. The nonperforming loan coverage ratio ended the first
quarter of 2024 at 212 percent. Total nonperforming assets as a
percentage of total assets were 0.41 percent at the end of the
first quarter of 2024, compared to 0.33 percent at the end of the
fourth quarter of 2023 and 0.26 percent at the end of the first
quarter of 2023.
Asset
Quality
$ in
millions
|
1Q24
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
Allowance for credit
losses on loans to total loans
|
1.34 %
|
1.34 %
|
1.30 %
|
1.25 %
|
1.25 %
|
Allowance for credit
losses on loans to nonperforming loans
|
212
|
267
|
267
|
292
|
324
|
Nonperforming loans to
total loans
|
0.63
|
0.50
|
0.49
|
0.43
|
0.38
|
Net charge-off ratio
(annualized)
|
0.19
|
0.11
|
0.28
|
0.04
|
0.03
|
Net charge-off ratio
YTD (annualized)
|
0.19
|
0.12
|
0.12
|
0.04
|
0.03
|
|
|
|
|
|
|
Total nonperforming
loans
|
$107.3
|
$84.5
|
$81.9
|
$72.0
|
$63.7
|
Total other
nonperforming assets
|
5.0
|
5.8
|
5.2
|
4.9
|
7.7
|
Total
nonperforming assets
|
$112.3
|
$90.3
|
$87.1
|
$76.9
|
$71.4
|
|
|
|
|
|
|
Reserve for unfunded
commitments
|
$25.6
|
$25.6
|
$25.6
|
$36.9
|
$41.9
|
Capital
Total stockholders' equity at the end of the
first quarter of 2024 was $3.4
billion, compared to $3.3
billion at the end of the first quarter of 2023. On a linked
quarter basis, total stockholders' equity increased $12.6 million, primarily as a result of a
$12.5 million increase in retained
earnings. Book value per share at the end of the first quarter of
2024 was $27.42, compared to
$27.37 at the end of the fourth
quarter of 2023 and $26.24 at the end
of the first quarter of 2023. Tangible book value per
share1 at the end of the first quarter of 2024 was
$16.02, compared to $15.92 at the end of the fourth quarter of 2023
and $14.88 at the end of the first
quarter of 2023.
Stockholders' equity as a percentage of total assets at
March 31, 2024, was 12.6 percent,
compared to 12.5 percent at December 31,
2023, and 12.1 percent at March 31,
2023. Tangible common equity as a percentage of tangible
assets1 was 7.8 percent at March
31, 2024, compared to 7.7 percent at December 31, 2023, and 7.3 percent at
March 31, 2023. Both Simmons and Simmons Bank continue to maintain
strong regulatory capital positions with all regulatory capital
ratios significantly exceeding "well-capitalized" guidelines.
Select Capital
Ratios
|
1Q24
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
Stockholders' equity to
total assets
|
12.6 %
|
12.5 %
|
11.9 %
|
12.0 %
|
12.1 %
|
Tangible common equity
to tangible assets1
|
7.8
|
7.7
|
7.1
|
7.2
|
7.3
|
Common equity tier 1
(CET1) ratio
|
12.0
|
12.1
|
12.0
|
11.9
|
11.9
|
Tier 1 leverage
ratio
|
9.4
|
9.4
|
9.3
|
9.2
|
9.2
|
Tier 1 risk-based
capital ratio
|
12.0
|
12.1
|
12.0
|
11.9
|
11.9
|
Total risk-based
capital ratio
|
14.4
|
14.4
|
14.3
|
14.2
|
14.5
|
Cash Dividend and Share Repurchase Program
As a result
of Simmons' solid capital position and its ability to organically
generate capital, the board of directors declared a quarterly cash
dividend on Simmons' Class A common stock of $0.21 per share, which represents a 5 percent
increase from the cash dividend paid for the same time period last
year. The cash dividend is payable on July
1, 2024, to shareholders of record as of June 14, 2024. Simmons has paid cash dividends
for 115 consecutive years, and 2024 represents the 13th consecutive
year that Simmons has increased its dividend. According to research
by Dividend Power, Simmons is one of only 26 U.S. publicly traded
companies that have paid dividends for 100+ uninterrupted years.
Simmons also earned Dividend Power's designation as a "Dividend
Contender," a title reserved exclusively for companies that have
increased their dividend for 10 to 24 consecutive years. As of
April 8, 2024, Dividend Power
research noted that Simmons is one of only 347 companies out of
nearly 6,000 companies listed on the New York Stock Exchange and
NASDAQ to achieve this distinction.
During the first quarter of 2024, Simmons did not repurchase
shares under its stock repurchase program that was authorized in
January 2024 (2024 Program) and which
replaced its former repurchase program that was authorized in
January 2022. Remaining authorization
under the 2024 Program as of March 31,
2024, was approximately $175
million. The timing, pricing and amount of any repurchases
under the 2024 Program will be determined by Simmons' management at
its discretion based on a variety of factors including, but not
limited to, market conditions, trading volume and market price of
Simmons' common stock, Simmons' capital needs, Simmons' working
capital and investment requirements, other corporate
considerations, economic conditions, and legal requirements.
The 2024 Program does not obligate Simmons to repurchase any common
stock and may be modified, discontinued or suspended at any time
without prior notice.
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Non-GAAP measurement.
See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP
Financial Measures" below
|
(2)
|
FTE – fully taxable
equivalent basis using an effective tax rate of 26.135%
|
Conference Call
Management will conduct a live
conference call to review this information beginning at
9:00 a.m. Central Time today,
Wednesday, April 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 10187669. 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 233 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. Additional
information about Simmons Bank can
be found on our website at simmonsbank.com, by following
@Simmons_Bank on X (formerly Twitter) or by visiting our
newsroom.
Non-GAAP Financial Measures
This press release
contains financial information determined by methods other than in
accordance with U.S. generally accepted accounting principles
(GAAP). The Company's management uses these non-GAAP financial
measures in their analysis of the Company's performance. These
measures adjust GAAP performance measures to, among other things,
include the tax benefit associated with revenue items that are
tax-exempt, as well as exclude from net income (including on a per
share diluted basis), pre-tax, pre-provision earnings, net
charge-offs, income available to common shareholders, non-interest
income, and non-interest expense certain income and expense items
attributable to, for example, merger activity (primarily including
merger-related expenses), gains and/or losses on sale of branches,
net branch right-sizing initiatives, FDIC special assessment
charges and gain/loss on the sale of AFS investment securities. The
Company has updated its calculation of certain non-GAAP financial
measures to exclude the impact of gains or losses on the sale of
AFS investment securities in light of the impact of the Company's
strategic AFS investment securities transactions during the fourth
quarter of 2023 and has presented past periods on a comparable
basis.
In addition, the Company also presents certain figures based on
tangible common stockholders' equity, tangible assets and tangible
book value, which exclude goodwill and other intangible assets. The
Company further presents certain figures that are exclusive of the
impact of deposits and/or loans acquired through acquisitions,
mortgage warehouse loans, and/or energy loans, or gains and/or
losses on the sale of securities. The Company's management believes
that these non-GAAP financial measures are useful to investors
because they, among other things, present the results of the
Company's ongoing operations without the effect of mergers or other
items not central to the Company's ongoing business, as well as
normalize for tax effects and certain other effects. Management,
therefore, believes presentations of these non-GAAP financial
measures provide useful supplemental information that is essential
to a proper understanding of the operating results of the Company's
ongoing businesses, and management uses these non-GAAP financial
measures to assess the performance of the Company's ongoing
businesses as related to prior financial periods. These non-GAAP
disclosures should not be viewed as a substitute for operating
results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies. Where non-GAAP financial measures are
used, the comparable GAAP financial measure, as well as the
reconciliation to the comparable GAAP financial measure, can be
found in the tables of this release.
Forward-Looking Statements
Certain statements in this
press release may not be based on historical facts and should be
considered "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements, including, without limitation,
statements made in Mr. Fehlman's quote 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 adequacy of the
allowance for credit losses, and future economic conditions and
interest rates. Any forward-looking statement speaks only as of the
date of this press release, and Simmons undertakes no obligation to
update these forward-looking statements to reflect events or
circumstances that occur after the date of this press release. By
nature, forward-looking statements are based on various assumptions
and involve inherent risk and uncertainties. Various factors,
including, but not limited to, changes in economic conditions,
changes in credit quality, changes in interest rates and related
governmental policies, changes in loan demand, changes in deposit
flows, changes in real estate values, changes in the assumptions
used in making the forward- looking statements, changes in
the securities markets generally or the price of Simmons' common
stock specifically, changes in information technology affecting the
financial industry, and changes in customer behaviors, including
consumer spending, borrowing, and saving habits; general economic
and market conditions; market disruptions including pandemics or
significant health hazards, severe weather conditions, natural
disasters, terrorist activities, financial crises, political
crises, war and other military conflicts (including the ongoing
military conflicts between Russia
and Ukraine and between
Israel and Hamas) or other major
events, or the prospect of these events; the soundness of other
financial institutions and any indirect exposure related to the
closings of other financial institutions and their impact on the
broader market through other customers, suppliers and partners, or
that the conditions which resulted in the liquidity concerns
experienced by closed financial institutions may also adversely
impact, directly or indirectly, other financial institutions and
market participants with which the Company has commercial or
deposit relationships; increased inflation; the loss of key
employees; increased competition in the markets in which the
Company operates; increased unemployment; labor shortages; claims,
damages, and fines related to litigation or government actions;
changes in accounting principles relating to loan loss recognition
(current expected credit losses); the Company's ability to manage
and successfully integrate its mergers and acquisitions and to
fully realize cost savings and other benefits associated with
acquisitions; increased delinquency and foreclosure rates on
commercial real estate loans; cyber threats, attacks or events;
reliance on third parties for key services; government legislation;
and other factors, many of which are beyond the control of the
Company, could cause actual results to differ materially from those
projected in or contemplated by the forward-looking statements.
Additional information on factors that might affect the Company's
financial results is included in the Company's Form 10-K for the
year ended December 31, 2023, and
other reports that the Company has filed with or furnished to the
U.S. Securities and Exchange Commission (the SEC), all of which are
available from the SEC on its website, www.sec.gov. In addition,
there can be no guarantee that the board of directors (Board) of
Simmons will approve a quarterly dividend in future quarters, and
the timing, payment, and amount of future dividends (if any) is
subject to, among other things, the discretion of the Board and may
differ significantly from past dividends.
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated End of Period Balance
Sheets
|
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and
noninterest bearing balances due from banks
|
$
380,324
|
$
345,258
|
$
181,822
|
$
181,268
|
$
199,316
|
Interest bearing
balances due from banks and federal funds sold
|
222,979
|
268,834
|
423,826
|
564,644
|
325,135
|
Cash and cash
equivalents
|
603,303
|
614,092
|
605,648
|
745,912
|
524,451
|
Interest bearing
balances due from banks - time
|
100
|
100
|
100
|
545
|
795
|
Investment
securities - held-to-maturity
|
3,707,258
|
3,726,288
|
3,742,292
|
3,756,754
|
3,765,483
|
Investment
securities - available-for-sale
|
3,027,558
|
3,152,153
|
3,358,421
|
3,579,758
|
3,755,956
|
Mortgage loans
held for sale
|
11,899
|
9,373
|
11,690
|
10,342
|
4,244
|
Loans:
|
|
|
|
|
|
Loans
|
17,001,760
|
16,845,670
|
16,771,888
|
16,833,653
|
16,555,098
|
Allowance for
credit losses on loans
|
(227,367)
|
(225,231)
|
(218,547)
|
(209,966)
|
(206,557)
|
Net
loans
|
16,774,393
|
16,620,439
|
16,553,341
|
16,623,687
|
16,348,541
|
Premises and
equipment
|
576,466
|
570,678
|
567,167
|
562,025
|
564,497
|
Foreclosed assets
and other real estate owned
|
3,511
|
4,073
|
3,809
|
3,909
|
2,721
|
Interest
receivable
|
122,781
|
122,430
|
110,361
|
103,431
|
98,775
|
Bank owned life
insurance
|
503,348
|
500,559
|
497,465
|
494,370
|
493,191
|
Goodwill
|
1,320,799
|
1,320,799
|
1,320,799
|
1,320,799
|
1,320,799
|
Other intangible
assets
|
108,795
|
112,645
|
116,660
|
120,758
|
124,854
|
Other
assets
|
611,964
|
592,045
|
676,572
|
636,833
|
579,139
|
Total
assets
|
$
27,372,175
|
$
27,345,674
|
$
27,564,325
|
$
27,959,123
|
$
27,583,446
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest
bearing transaction accounts
|
$ 4,697,539
|
$ 4,800,880
|
$ 4,991,034
|
$ 5,264,962
|
$ 5,489,434
|
Interest bearing
transaction accounts and savings deposits
|
11,071,762
|
10,997,425
|
10,571,807
|
10,866,078
|
11,283,584
|
Time
deposits
|
6,583,703
|
6,446,673
|
6,668,370
|
6,357,682
|
5,678,757
|
Total deposits
|
22,353,004
|
22,244,978
|
22,231,211
|
22,488,722
|
22,451,775
|
Federal funds
purchased and securities sold
|
|
|
|
|
|
under agreements
to repurchase
|
58,760
|
67,969
|
74,482
|
102,586
|
142,862
|
Other
borrowings
|
871,874
|
972,366
|
1,347,855
|
1,373,339
|
1,023,826
|
Subordinated
notes and debentures
|
366,179
|
366,141
|
366,103
|
366,065
|
366,027
|
Accrued interest
and other liabilities
|
283,232
|
267,732
|
259,119
|
272,085
|
259,055
|
Total
liabilities
|
23,933,049
|
23,919,186
|
24,278,770
|
24,602,797
|
24,243,545
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
1,254
|
1,252
|
1,251
|
1,262
|
1,273
|
Surplus
|
2,503,673
|
2,499,930
|
2,497,874
|
2,516,398
|
2,533,589
|
Undivided
profits
|
1,342,215
|
1,329,681
|
1,330,810
|
1,308,654
|
1,275,720
|
Accumulated
other comprehensive (loss) income
|
(408,016)
|
(404,375)
|
(544,380)
|
(469,988)
|
(470,681)
|
Total
stockholders' equity
|
3,439,126
|
3,426,488
|
3,285,555
|
3,356,326
|
3,339,901
|
Total
liabilities and stockholders' equity
|
$
27,372,175
|
$
27,345,674
|
$
27,564,325
|
$
27,959,123
|
$
27,583,446
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated Statements of Income -
Quarter-to-Date
|
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands, except per share
data)
|
|
|
|
|
|
INTEREST INCOME
|
|
|
|
|
|
Loans (including fees)
|
$
261,490
|
$
261,505
|
$
255,901
|
$
244,292
|
$
227,498
|
Interest bearing balances due from banks and federal funds
sold
|
3,010
|
3,115
|
3,569
|
4,023
|
2,783
|
Investment securities
|
58,001
|
58,755
|
50,638
|
48,751
|
48,774
|
Mortgage loans held for sale
|
148
|
143
|
178
|
154
|
82
|
TOTAL INTEREST INCOME
|
322,649
|
323,518
|
310,286
|
297,220
|
279,137
|
INTEREST EXPENSE
|
|
|
|
|
|
Time
deposits
|
73,241
|
72,458
|
68,062
|
53,879
|
39,538
|
Other deposits
|
78,692
|
71,412
|
65,095
|
54,485
|
47,990
|
Federal funds purchased and securities
|
|
|
|
|
|
sold under agreements
to repurchase
|
189
|
232
|
277
|
318
|
323
|
Other borrowings
|
11,649
|
16,607
|
16,450
|
18,612
|
8,848
|
Subordinated notes and debentures
|
6,972
|
7,181
|
6,969
|
6,696
|
4,603
|
TOTAL INTEREST EXPENSE
|
170,743
|
167,890
|
156,853
|
133,990
|
101,302
|
NET INTEREST INCOME
|
151,906
|
155,628
|
153,433
|
163,230
|
177,835
|
PROVISION FOR CREDIT
LOSSES
|
|
|
|
|
|
Provision for credit losses on loans
|
10,206
|
11,225
|
20,222
|
5,061
|
10,916
|
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
|
10,206
|
10,029
|
7,722
|
61
|
24,216
|
NET INTEREST INCOME AFTER
PROVISION
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
141,700
|
145,599
|
145,711
|
163,169
|
153,619
|
NONINTEREST INCOME
|
|
|
|
|
|
Service charges on deposit accounts
|
11,955
|
12,782
|
12,429
|
12,882
|
12,437
|
Debit and credit card fees
|
8,246
|
7,822
|
7,712
|
7,986
|
7,952
|
Wealth management fees
|
7,478
|
7,679
|
7,719
|
7,440
|
7,365
|
Mortgage lending income
|
2,320
|
1,603
|
2,157
|
2,403
|
1,570
|
Bank
owned life insurance income
|
3,814
|
3,094
|
3,095
|
2,555
|
2,973
|
Other service charges and fees (includes insurance
income)
|
2,199
|
2,346
|
2,232
|
2,262
|
2,282
|
Gain
(loss) on sale of securities
|
-
|
(20,218)
|
-
|
(391)
|
-
|
Other income
|
7,172
|
6,866
|
7,433
|
9,843
|
11,256
|
TOTAL NONINTEREST INCOME
|
43,184
|
21,974
|
42,777
|
44,980
|
45,835
|
NONINTEREST EXPENSE
|
|
|
|
|
|
Salaries and employee benefits
|
72,653
|
66,982
|
67,374
|
74,723
|
77,038
|
Occupancy expense, net
|
12,258
|
11,733
|
12,020
|
11,410
|
11,578
|
Furniture and equipment expense
|
5,141
|
5,445
|
5,117
|
5,128
|
5,051
|
Other real estate and foreclosure expense
|
179
|
189
|
228
|
289
|
186
|
Deposit insurance
|
7,135
|
15,220
|
4,672
|
5,201
|
4,893
|
Merger-related costs
|
-
|
-
|
5
|
19
|
1,396
|
Other operating expenses
|
42,513
|
48,570
|
42,582
|
42,926
|
43,086
|
TOTAL NONINTEREST EXPENSE
|
139,879
|
148,139
|
131,998
|
139,696
|
143,228
|
NET INCOME BEFORE INCOME
TAXES
|
45,005
|
19,434
|
56,490
|
68,453
|
56,226
|
Provision for income taxes
|
6,134
|
(4,473)
|
9,243
|
10,139
|
10,637
|
NET INCOME
|
$ 38,871
|
$ 23,907
|
$ 47,247
|
$ 58,314
|
$ 45,589
|
BASIC EARNINGS PER SHARE
|
$
0.31
|
$
0.19
|
$
0.38
|
$
0.46
|
$
0.36
|
DILUTED EARNINGS PER
SHARE
|
$
0.31
|
$
0.19
|
$
0.37
|
$
0.46
|
$
0.36
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated Risk-Based
Capital
|
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands)
|
|
|
|
|
|
Tier 1 capital
|
|
|
|
|
|
Stockholders' equity
|
$ 3,439,126
|
$ 3,426,488
|
$ 3,285,555
|
$ 3,356,326
|
$ 3,339,901
|
CECL
transition provision (1)
|
30,873
|
61,746
|
61,746
|
61,746
|
61,746
|
Disallowed
intangible assets, net of deferred tax
|
(1,394,672)
|
(1,398,810)
|
(1,402,682)
|
(1,406,500)
|
(1,410,141)
|
Unrealized
loss (gain) on AFS securities
|
408,016
|
404,375
|
544,380
|
469,988
|
470,681
|
Total Tier 1
capital
|
2,483,343
|
2,493,799
|
2,488,999
|
2,481,560
|
2,462,187
|
|
|
|
|
|
|
Tier 2 capital
|
|
|
|
|
|
Subordinated notes and debentures
|
366,179
|
366,141
|
366,103
|
366,065
|
366,027
|
Subordinated debt phase out
|
(66,000)
|
(66,000)
|
(66,000)
|
(66,000)
|
-
|
Qualifying
allowance for loan losses and
|
|
|
|
|
|
reserve for unfunded
commitments
|
214,660
|
170,977
|
165,490
|
169,409
|
173,077
|
Total Tier 2
capital
|
514,839
|
471,118
|
465,593
|
469,474
|
539,104
|
Total risk-based
capital
|
$ 2,998,182
|
$ 2,964,917
|
$ 2,954,592
|
$ 2,951,034
|
$ 3,001,291
|
|
|
|
|
|
|
Risk weighted
assets
|
$
20,782,094
|
$
20,599,238
|
$
20,703,669
|
$
20,821,075
|
$
20,748,605
|
|
|
|
|
|
|
Adjusted average assets
for leverage ratio
|
$
26,312,873
|
$
26,552,988
|
$
26,733,658
|
$
26,896,289
|
$
26,632,691
|
|
|
|
|
|
|
Ratios at end of quarter
|
|
|
|
|
|
Equity to
assets
|
12.56 %
|
12.53 %
|
11.92 %
|
12.00 %
|
12.11 %
|
Tangible
common equity to tangible assets (2)
|
7.75 %
|
7.69 %
|
7.07 %
|
7.22 %
|
7.25 %
|
Common
equity Tier 1 ratio (CET1)
|
11.95 %
|
12.11 %
|
12.02 %
|
11.92 %
|
11.87 %
|
Tier 1
leverage ratio
|
9.44 %
|
9.39 %
|
9.31 %
|
9.23 %
|
9.24 %
|
Tier 1
risk-based capital ratio
|
11.95 %
|
12.11 %
|
12.02 %
|
11.92 %
|
11.87 %
|
Total
risk-based capital ratio
|
14.43 %
|
14.39 %
|
14.27 %
|
14.17 %
|
14.47 %
|
|
|
|
|
|
|
(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
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands)
|
|
|
|
|
|
Investment Securities - End of
Period
|
|
|
|
|
|
Held-to-Maturity
|
|
|
|
|
|
U.S.
Government agencies
|
$ 453,805
|
$ 453,121
|
$ 452,428
|
$ 451,737
|
$ 451,052
|
Mortgage-backed securities
|
1,142,352
|
1,161,694
|
1,178,324
|
1,193,118
|
1,201,418
|
State and political subdivisions
|
1,855,642
|
1,856,674
|
1,857,652
|
1,859,022
|
1,859,970
|
Other securities
|
255,459
|
254,799
|
253,888
|
252,877
|
253,043
|
Total
held-to-maturity (net of credit losses)
|
3,707,258
|
3,726,288
|
3,742,292
|
3,756,754
|
3,765,483
|
Available-for-Sale
|
|
|
|
|
|
U.S.
Treasury
|
$
1,964
|
$
2,254
|
$
2,224
|
$
2,209
|
$
2,220
|
U.S.
Government agencies
|
69,801
|
72,502
|
172,759
|
176,564
|
181,843
|
Mortgage-backed securities
|
1,845,364
|
1,940,307
|
2,157,092
|
2,282,328
|
2,433,530
|
State and political subdivisions
|
874,849
|
902,793
|
790,344
|
885,505
|
895,896
|
Other securities
|
235,580
|
234,297
|
236,002
|
233,152
|
242,467
|
Total
available-for-sale (net of credit losses)
|
3,027,558
|
3,152,153
|
3,358,421
|
3,579,758
|
3,755,956
|
Total investment
securities (net of credit losses)
|
$
6,734,816
|
$
6,878,441
|
$
7,100,713
|
$
7,336,512
|
$
7,521,439
|
Fair value - HTM
investment securities
|
$
3,049,281
|
$
3,135,370
|
$
2,848,211
|
$
3,094,958
|
$
3,148,976
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated Loans
|
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands)
|
|
|
|
|
|
Loan Portfolio - End of Period
|
|
|
|
|
|
Consumer:
|
|
|
|
|
|
Credit cards
|
$
182,742
|
$
191,204
|
$
191,550
|
$
209,452
|
$
188,590
|
Other consumer
|
124,531
|
127,462
|
112,832
|
148,333
|
142,817
|
Total
consumer
|
307,273
|
318,666
|
304,382
|
357,785
|
331,407
|
Real
Estate:
|
|
|
|
|
|
Construction
|
3,331,739
|
3,144,220
|
3,022,321
|
2,930,586
|
2,777,122
|
Single-family residential
|
2,624,738
|
2,641,556
|
2,657,879
|
2,633,365
|
2,589,831
|
Other commercial real estate
|
7,508,049
|
7,552,410
|
7,565,008
|
7,546,130
|
7,520,964
|
Total real
estate
|
13,464,526
|
13,338,186
|
13,245,208
|
13,110,081
|
12,887,917
|
Commercial:
|
|
|
|
|
|
Commercial
|
2,499,311
|
2,490,176
|
2,477,077
|
2,569,330
|
2,669,731
|
Agricultural
|
226,642
|
232,710
|
296,912
|
280,541
|
220,641
|
Total
commercial
|
2,725,953
|
2,722,886
|
2,773,989
|
2,849,871
|
2,890,372
|
Other
|
504,008
|
465,932
|
448,309
|
515,916
|
445,402
|
Total
loans
|
$
17,001,760
|
$
16,845,670
|
$
16,771,888
|
$
16,833,653
|
$
16,555,098
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated Allowance and Asset
Quality
|
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands)
|
|
|
|
|
|
Allowance for Credit Losses on
Loans
|
|
|
|
|
|
Beginning
balance
|
$ 225,231
|
$ 218,547
|
$ 209,966
|
$ 206,557
|
$ 196,955
|
|
|
|
|
|
|
Loans charged
off:
|
|
|
|
|
|
Credit cards
|
1,646
|
1,500
|
1,318
|
1,409
|
1,076
|
Other consumer
|
732
|
767
|
633
|
666
|
456
|
Real
estate
|
2,857
|
1,023
|
9,723
|
435
|
1,204
|
Commercial
|
4,593
|
3,105
|
1,219
|
1,225
|
413
|
Total loans
charged off
|
9,828
|
6,395
|
12,893
|
3,735
|
3,149
|
|
|
|
|
|
|
Recoveries of
loans previously charged off:
|
|
|
|
|
|
Credit cards
|
248
|
242
|
234
|
298
|
234
|
Other consumer
|
333
|
518
|
344
|
436
|
240
|
Real
estate
|
735
|
785
|
429
|
878
|
294
|
Commercial
|
442
|
309
|
245
|
471
|
1,067
|
Total
recoveries
|
1,758
|
1,854
|
1,252
|
2,083
|
1,835
|
Net
loans charged off
|
8,070
|
4,541
|
11,641
|
1,652
|
1,314
|
Provision for
credit losses on loans
|
10,206
|
11,225
|
20,222
|
5,061
|
10,916
|
Balance, end of
quarter
|
$ 227,367
|
$ 225,231
|
$ 218,547
|
$ 209,966
|
$ 206,557
|
|
|
|
|
|
|
Nonperforming assets
|
|
|
|
|
|
Nonperforming
loans:
|
|
|
|
|
|
Nonaccrual loans
|
$ 105,788
|
$
83,325
|
$
81,135
|
$
71,279
|
$
63,218
|
Loans past due 90 days or more
|
1,527
|
1,147
|
806
|
738
|
437
|
Total
nonperforming loans
|
107,315
|
84,472
|
81,941
|
72,017
|
63,655
|
Other
nonperforming assets:
|
|
|
|
|
|
Foreclosed
assets and other real estate owned
|
3,511
|
4,073
|
3,809
|
3,909
|
2,721
|
Other nonperforming assets
|
1,491
|
1,726
|
1,417
|
1,013
|
5,012
|
Total other
nonperforming assets
|
5,002
|
5,799
|
5,226
|
4,922
|
7,733
|
Total nonperforming assets
|
$ 112,317
|
$
90,271
|
$
87,167
|
$
76,939
|
$
71,388
|
Performing FDMs
(modifications to borrowers
|
|
|
|
|
|
experiencing financial difficulty)
|
$
33,576
|
$
33,577
|
$
33,723
|
$
2,996
|
$
2,183
|
|
|
|
|
|
|
Ratios
|
|
|
|
|
|
Allowance for
credit losses on loans to total loans
|
1.34 %
|
1.34 %
|
1.30 %
|
1.25 %
|
1.25 %
|
Allowance for
credit losses to nonperforming loans
|
212 %
|
267 %
|
267 %
|
292 %
|
324 %
|
Nonperforming
loans to total loans
|
0.63 %
|
0.50 %
|
0.49 %
|
0.43 %
|
0.38 %
|
Nonperforming
assets (including performing FDMs)
|
|
|
|
|
|
to total
assets
|
0.53 %
|
0.45 %
|
0.44 %
|
0.29 %
|
0.27 %
|
Nonperforming
assets to total assets
|
0.41 %
|
0.33 %
|
0.32 %
|
0.28 %
|
0.26 %
|
Annualized net
charge offs to average loans (QTD)
|
0.19 %
|
0.11 %
|
0.28 %
|
0.04 %
|
0.03 %
|
Annualized net
charge offs to average loans (YTD)
|
0.19 %
|
0.12 %
|
0.12 %
|
0.04 %
|
0.03 %
|
Annualized net
credit card charge offs to
|
|
|
|
|
|
average
credit card loans (QTD)
|
2.88 %
|
2.49 %
|
2.19 %
|
2.25 %
|
1.69 %
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
|
|
|
|
|
|
SFNC
|
Consolidated - Average Balance Sheet and Net
Interest Income Analysis
|
|
|
|
|
|
|
|
|
|
|
For the Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Mar 2024
|
|
Three Months Ended
Dec 2023
|
|
Three Months Ended
Mar 2023
|
($ in thousands)
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing balances due from banks
|
|
|
|
|
|
|
|
|
|
|
|
and federal funds
sold
|
$
211,121
|
$
3,010
|
5.73 %
|
|
$
230,464
|
$ 3,115
|
5.36 %
|
|
$
315,307
|
$ 2,783
|
3.58 %
|
Investment
securities - taxable
|
4,162,455
|
42,198
|
4.08 %
|
|
4,410,681
|
42,895
|
3.86 %
|
|
4,930,945
|
32,804
|
2.70 %
|
Investment
securities - non-taxable (FTE)
|
2,635,368
|
21,301
|
3.25 %
|
|
2,555,125
|
21,523
|
3.34 %
|
|
2,624,642
|
21,522
|
3.33 %
|
Mortgage
loans held for sale
|
9,048
|
148
|
6.58 %
|
|
7,644
|
143
|
7.42 %
|
|
5,470
|
82
|
6.08 %
|
Loans -
including fees (FTE)
|
16,900,496
|
262,414
|
6.24 %
|
|
16,793,211
|
262,353
|
6.20 %
|
|
16,329,761
|
228,257
|
5.67 %
|
Total interest earning
assets (FTE)
|
23,918,488
|
329,071
|
5.53 %
|
|
23,997,125
|
330,029
|
5.46 %
|
|
24,206,125
|
285,448
|
4.78 %
|
Non-earning assets
|
3,340,911
|
|
|
|
3,373,686
|
|
|
|
3,282,607
|
|
|
Total assets
|
$
27,259,399
|
|
|
|
$
27,370,811
|
|
|
|
$
27,488,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing transaction and
|
|
|
|
|
|
|
|
|
|
|
|
savings accounts
|
$
11,132,396
|
$ 78,692
|
2.84 %
|
|
$
10,730,701
|
$
71,412
|
2.64 %
|
|
$
11,722,591
|
$
47,990
|
1.66 %
|
Time
deposits
|
6,448,014
|
73,241
|
4.57 %
|
|
6,509,663
|
72,458
|
4.42 %
|
|
5,155,055
|
39,538
|
3.11 %
|
Total interest bearing
deposits
|
17,580,410
|
151,933
|
3.48 %
|
|
17,240,364
|
143,870
|
3.31 %
|
|
16,877,646
|
87,528
|
2.10 %
|
Federal
funds purchased and securities
|
|
|
|
|
|
|
|
|
|
|
|
sold under agreement to
repurchase
|
54,160
|
189
|
1.40 %
|
|
65,871
|
232
|
1.40 %
|
|
148,673
|
323
|
0.88 %
|
Other
borrowings
|
873,278
|
11,649
|
5.37 %
|
|
1,212,501
|
16,607
|
5.43 %
|
|
787,783
|
8,848
|
4.56 %
|
Subordinated notes and debentures
|
366,160
|
6,972
|
7.66 %
|
|
366,123
|
7,181
|
7.78 %
|
|
366,009
|
4,603
|
5.10 %
|
Total interest bearing
liabilities
|
18,874,008
|
170,743
|
3.64 %
|
|
18,884,859
|
167,890
|
3.53 %
|
|
18,180,111
|
101,302
|
2.26 %
|
Noninterest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing deposits
|
4,654,179
|
|
|
|
4,864,274
|
|
|
|
5,642,779
|
|
|
Other
liabilities
|
284,191
|
|
|
|
285,431
|
|
|
|
295,191
|
|
|
Total
liabilities
|
23,812,378
|
|
|
|
24,034,564
|
|
|
|
24,118,081
|
|
|
Stockholders'
equity
|
3,447,021
|
|
|
|
3,336,247
|
|
|
|
3,370,651
|
|
|
Total liabilities and
stockholders' equity
|
$
27,259,399
|
|
|
|
$
27,370,811
|
|
|
|
$
27,488,732
|
|
|
Net interest income
(FTE)
|
|
$
158,328
|
|
|
|
$
162,139
|
|
|
|
$
184,146
|
|
Net interest spread
(FTE)
|
|
|
1.89 %
|
|
|
|
1.93 %
|
|
|
|
2.52 %
|
Net interest margin
(FTE)
|
|
|
2.66 %
|
|
|
|
2.68 %
|
|
|
|
3.09 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated - Selected Financial
Data
|
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands, except share
data)
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Financial Highlights - As Reported
|
|
|
|
|
|
Net Income
|
$
38,871
|
$
23,907
|
$
47,247
|
$
58,314
|
$
45,589
|
Diluted earnings per
share
|
0.31
|
0.19
|
0.37
|
0.46
|
0.36
|
Return on average
assets
|
0.57 %
|
0.35 %
|
0.68 %
|
0.84 %
|
0.67 %
|
Return on average
common equity
|
4.54 %
|
2.84 %
|
5.56 %
|
6.96 %
|
5.49 %
|
Return on tangible
common equity (non-GAAP) (1)
|
8.33 %
|
5.61 %
|
10.33 %
|
12.85 %
|
10.25 %
|
Net interest margin
(FTE)
|
2.66 %
|
2.68 %
|
2.61 %
|
2.76 %
|
3.09 %
|
Efficiency ratio
(2)
|
69.41 %
|
80.46 %
|
65.11 %
|
65.18 %
|
62.28 %
|
FTE
adjustment
|
6,422
|
6,511
|
6,515
|
6,106
|
6,311
|
Average diluted shares
outstanding
|
125,661,950
|
125,609,265
|
126,283,609
|
127,379,976
|
127,516,478
|
Shares repurchased
under plan
|
-
|
-
|
1,128,962
|
1,128,087
|
-
|
Average price of
shares repurchased
|
-
|
-
|
17.69
|
17.75
|
-
|
Cash dividends
declared per common share
|
0.210
|
0.200
|
0.200
|
0.200
|
0.200
|
Accretable yield on
acquired loans
|
1,123
|
1,762
|
2,146
|
2,267
|
2,579
|
Financial Highlights - Adjusted (non-GAAP)
(1)
|
|
|
|
|
|
Adjusted
earnings
|
$
40,351
|
$
50,215
|
$
48,804
|
$
61,354
|
$
47,343
|
Adjusted diluted
earnings per share
|
0.32
|
0.40
|
0.39
|
0.48
|
0.37
|
Adjusted return on
average assets
|
0.60 %
|
0.73 %
|
0.70 %
|
0.89 %
|
0.70 %
|
Adjusted return on
average common equity
|
4.71 %
|
5.97 %
|
5.74 %
|
7.33 %
|
5.70 %
|
Adjusted return on
tangible common equity
|
8.62 %
|
11.10 %
|
10.64 %
|
13.48 %
|
10.62 %
|
Adjusted efficiency
ratio (2)
|
66.42 %
|
62.91 %
|
61.94 %
|
61.29 %
|
59.38 %
|
YEAR-TO-DATE
|
|
|
|
|
|
Financial Highlights - GAAP
|
|
|
|
|
|
Net Income
|
$
38,871
|
$
175,057
|
$
151,150
|
$
103,903
|
$
45,589
|
Diluted earnings per
share
|
0.31
|
1.38
|
1.19
|
0.82
|
0.36
|
Return on average
assets
|
0.57 %
|
0.64 %
|
0.73 %
|
0.76 %
|
0.67 %
|
Return on average
common equity
|
4.54 %
|
5.21 %
|
6.00 %
|
6.23 %
|
5.49 %
|
Return on tangible
common equity (non-GAAP) (1)
|
8.33 %
|
9.76 %
|
11.14 %
|
11.55 %
|
10.25 %
|
Net interest margin
(FTE)
|
2.66 %
|
2.78 %
|
2.82 %
|
2.92 %
|
3.09 %
|
Efficiency ratio
(2)
|
69.41 %
|
67.75 %
|
64.13 %
|
63.68 %
|
62.28 %
|
FTE
adjustment
|
6,422
|
25,443
|
18,932
|
12,417
|
6,311
|
Average diluted shares
outstanding
|
125,661,950
|
126,775,704
|
127,099,727
|
127,421,034
|
127,516,478
|
Cash dividends
declared per common share
|
0.210
|
0.800
|
0.600
|
0.400
|
0.200
|
Financial Highlights - Adjusted (non-GAAP)
(1)
|
|
|
|
|
|
Adjusted
earnings
|
$
40,351
|
$
207,716
|
$
157,501
|
$
108,697
|
$
47,343
|
Adjusted diluted
earnings per share
|
0.32
|
1.64
|
1.24
|
0.85
|
0.37
|
Adjusted return on
average assets
|
0.60 %
|
0.75 %
|
0.76 %
|
0.79 %
|
0.70 %
|
Adjusted return on
average common equity
|
4.71 %
|
6.18 %
|
6.25 %
|
6.51 %
|
5.70 %
|
Adjusted return on
tangible common equity
|
8.62 %
|
11.46 %
|
11.58 %
|
12.06 %
|
10.62 %
|
Adjusted efficiency
ratio (2)
|
66.42 %
|
61.32 %
|
60.81 %
|
60.30 %
|
59.38 %
|
END OF PERIOD
|
|
|
|
|
|
Book value per
share
|
$
27.42
|
$
27.37
|
$
26.26
|
$
26.59
|
$
26.24
|
Tangible book value
per share
|
16.02
|
15.92
|
14.77
|
15.17
|
14.88
|
Shares
outstanding
|
125,419,618
|
125,184,119
|
125,133,281
|
126,224,707
|
127,282,192
|
Full-time equivalent
employees
|
2,989
|
3,007
|
3,005
|
3,066
|
3,189
|
Total number of
financial centers
|
233
|
234
|
232
|
231
|
231
|
|
|
|
|
|
|
(1) Non-GAAP measurement that management
believes aids in the understanding and discussion of results.
Reconciliations to GAAP are
|
|
|
|
included in the schedules accompanying this
release.
|
|
|
|
|
|
(2) Efficiency ratio is noninterest expense as
a percent of net interest income (fully taxable equivalent) and
noninterest revenues.
|
|
|
|
Adjusted efficiency ratio is noninterest
expense before foreclosed property expense, amortization of
intangibles and certain adjusting
|
|
|
|
items as a percent of net interest income
(fully taxable equivalent) and noninterest revenues, excluding
gains and losses from
|
|
|
|
securities transactions and certain adjusting
items, and is a non-GAAP measurement.
|
|
|
|
|
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Adjusted Earnings - Quarter-to-Date
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
(in thousands, except per share
data)
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Net
income
|
$
38,871
|
$
23,907
|
$
47,247
|
$
58,314
|
$
45,589
|
Certain items
(non-GAAP)
|
|
|
|
|
|
FDIC Deposit Insurance
special assessment
|
1,549
|
10,521
|
-
|
-
|
-
|
Merger related
costs
|
-
|
-
|
5
|
19
|
1,396
|
Early retirement
program
|
219
|
1,032
|
1,557
|
3,609
|
-
|
Loss (gain) on sale of
securities
|
-
|
20,218
|
-
|
391
|
-
|
Branch right sizing
(net)
|
236
|
3,846
|
547
|
95
|
979
|
Tax effect of certain
items (1)
|
(524)
|
(9,309)
|
(552)
|
(1,074)
|
(621)
|
Certain items, net of tax
|
1,480
|
26,308
|
1,557
|
3,040
|
1,754
|
Adjusted earnings
(non-GAAP)
|
$
40,351
|
$
50,215
|
$
48,804
|
$
61,354
|
$
47,343
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.31
|
$
0.19
|
$
0.37
|
$
0.46
|
$
0.36
|
Certain items
(non-GAAP)
|
|
|
|
|
|
FDIC Deposit Insurance
special assessment
|
0.01
|
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
|
Tax effect of certain
items (1)
|
-
|
(0.07)
|
-
|
(0.01)
|
(0.01)
|
Certain items, net of tax
|
0.01
|
0.21
|
0.02
|
0.02
|
0.01
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
0.32
|
$
0.40
|
$
0.39
|
$
0.48
|
$
0.37
|
|
|
|
|
|
|
(1) Effective tax rate of
26.135%.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Certain Noninterest Income and
Expense Items (non-GAAP)
|
|
|
|
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Noninterest income
|
$
43,184
|
$
21,974
|
$
42,777
|
$
44,980
|
$
45,835
|
Certain noninterest
income items
|
|
|
|
|
|
Loss (gain) on sale of
securities
|
-
|
20,218
|
-
|
391
|
-
|
Adjusted noninterest income (non-GAAP)
|
$
43,184
|
$
42,192
|
$
42,777
|
$
45,371
|
$
45,835
|
|
|
|
|
|
|
Noninterest expense
|
$ 139,879
|
$ 148,139
|
$ 131,998
|
$ 139,696
|
$ 143,228
|
Certain noninterest
expense items
|
|
|
|
|
|
Merger related
costs
|
-
|
-
|
(5)
|
(19)
|
(1,396)
|
Early retirement
program
|
(219)
|
(1,032)
|
(1,557)
|
(3,609)
|
-
|
FDIC Deposit Insurance
special assessment
|
(1,549)
|
(10,521)
|
-
|
-
|
-
|
Branch right sizing
expense
|
(236)
|
(3,846)
|
(547)
|
(95)
|
(979)
|
Adjusted noninterest expense (non-GAAP)
|
$ 137,875
|
$ 132,740
|
$ 129,889
|
$ 135,973
|
$ 140,853
|
|
|
|
|
|
|
Salaries and employee benefits
|
$
72,653
|
$
66,982
|
$
67,374
|
$
74,723
|
$
77,038
|
Certain salaries and
employee benefits items
|
|
|
|
|
|
Early retirement
program
|
(219)
|
(1,032)
|
(1,557)
|
(3,609)
|
-
|
Other
|
-
|
2
|
-
|
-
|
-
|
Adjusted salaries and employee benefits (non-GAAP)
|
$
72,434
|
$
65,952
|
$
65,817
|
$
71,114
|
$
77,038
|
|
|
|
|
|
|
Other operating expenses
|
$
42,513
|
$
48,570
|
$
42,582
|
$
42,926
|
$
43,086
|
Certain other
operating expenses items
|
|
|
|
|
|
Branch right sizing
expense
|
(83)
|
(3,708)
|
(466)
|
53
|
(816)
|
Adjusted other operating expenses (non-GAAP)
|
$
42,430
|
$
44,862
|
$
42,116
|
$
42,979
|
$
42,270
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Adjusted Earnings - Year-to-Date
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
(in thousands, except per share
data)
|
|
|
|
|
|
YEAR-TO-DATE
|
|
|
|
|
|
Net
income
|
$
38,871
|
$ 175,057
|
$ 151,150
|
$ 103,903
|
$
45,589
|
Certain items
(non-GAAP)
|
|
|
|
|
|
FDIC Deposit Insurance
special assessment
|
1,549
|
10,521
|
-
|
-
|
-
|
Merger related
costs
|
-
|
1,420
|
1,420
|
1,415
|
1,396
|
Early retirement
program
|
219
|
6,198
|
5,166
|
3,609
|
-
|
Loss (gain) on sale of
securities
|
-
|
20,609
|
391
|
391
|
-
|
Branch right sizing
(net)
|
236
|
5,467
|
1,621
|
1,074
|
979
|
Tax effect of certain
items (1)
|
(524)
|
(11,556)
|
(2,247)
|
(1,695)
|
(621)
|
Certain items, net of tax
|
1,480
|
32,659
|
6,351
|
4,794
|
1,754
|
Adjusted earnings
(non-GAAP)
|
$
40,351
|
$ 207,716
|
$ 157,501
|
$ 108,697
|
$
47,343
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.31
|
$
1.38
|
$
1.19
|
$
0.82
|
$
0.36
|
Certain items
(non-GAAP)
|
|
|
|
|
|
FDIC Deposit Insurance
special assessment
|
0.01
|
0.08
|
-
|
-
|
-
|
Merger related
costs
|
-
|
0.01
|
0.01
|
0.01
|
0.01
|
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
|
Tax effect of certain
items (1)
|
-
|
(0.09)
|
(0.02)
|
(0.02)
|
(0.01)
|
Certain items, net of tax
|
0.01
|
0.26
|
0.05
|
0.03
|
0.01
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
0.32
|
$
1.64
|
$
1.24
|
$
0.85
|
$
0.37
|
|
|
|
|
|
|
(1) Effective tax rate of
26.135%.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Certain Noninterest Income and
Expense Items (non-GAAP)
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
|
|
|
|
|
|
Noninterest income
|
$
43,184
|
$ 155,566
|
$ 133,592
|
$
90,815
|
$
45,835
|
Certain noninterest
income items
|
|
|
|
|
|
Loss (gain) on sale of
securities
|
-
|
20,609
|
391
|
391
|
-
|
Adjusted noninterest income (non-GAAP)
|
$
43,184
|
$ 176,175
|
$ 133,983
|
$
91,206
|
$
45,835
|
|
|
|
|
|
|
Noninterest expense
|
$ 139,879
|
$ 563,061
|
$ 414,922
|
$ 282,924
|
$ 143,228
|
Certain noninterest
expense items
|
|
|
|
|
|
Merger related
costs
|
-
|
(1,420)
|
(1,420)
|
(1,415)
|
(1,396)
|
Early retirement
program
|
(219)
|
(6,198)
|
(5,166)
|
(3,609)
|
-
|
FDIC Deposit Insurance
special assessment
|
(1,549)
|
(10,521)
|
-
|
-
|
-
|
Branch right sizing
expense
|
(236)
|
(5,467)
|
(1,621)
|
(1,074)
|
(979)
|
Adjusted noninterest expense (non-GAAP)
|
$ 137,875
|
$ 539,455
|
$ 406,715
|
$ 276,826
|
$ 140,853
|
|
|
|
|
|
|
Salaries and employee benefits
|
$
72,653
|
$ 286,117
|
$ 219,135
|
$ 151,761
|
$
77,038
|
Certain salaries and
employee benefits items
|
|
|
|
|
|
Early retirement
program
|
(219)
|
(6,198)
|
(5,166)
|
(3,609)
|
-
|
Other
|
-
|
2
|
-
|
-
|
-
|
Adjusted salaries and employee benefits (non-GAAP)
|
$
72,434
|
$ 279,921
|
$ 213,969
|
$ 148,152
|
$
77,038
|
|
|
|
|
|
|
Merger related costs
|
$
-
|
$
1,420
|
$
1,420
|
$
1,415
|
$
1,396
|
Adjustment for merger
related costs
|
-
|
(1,420)
|
(1,420)
|
(1,415)
|
(1,396)
|
Adjusted merger related costs (non-GAAP)
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
|
|
|
|
|
|
Other operating expenses
|
$
42,513
|
$ 177,164
|
$ 128,594
|
$
86,012
|
$
43,086
|
Certain other
operating expenses items
|
|
|
|
|
|
Branch right sizing
expense
|
(83)
|
(4,937)
|
(1,229)
|
(763)
|
(816)
|
Adjusted other operating expenses (non-GAAP)
|
$
42,430
|
$ 172,227
|
$ 127,365
|
$
85,249
|
$
42,270
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
End of Period
|
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Tangible Common Equity and the Ratio
of Tangible Common Equity to Tangible Assets
|
|
|
|
|
|
|
|
|
|
Total common
stockholders' equity
|
$ 3,439,126
|
$ 3,426,488
|
$ 3,285,555
|
$ 3,356,326
|
$ 3,339,901
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
Other
intangible assets
|
(108,795)
|
(112,645)
|
(116,660)
|
(120,758)
|
(124,854)
|
Total
intangibles
|
(1,429,594)
|
(1,433,444)
|
(1,437,459)
|
(1,441,557)
|
(1,445,653)
|
Tangible common
stockholders' equity
|
$ 2,009,532
|
$ 1,993,044
|
$ 1,848,096
|
$ 1,914,769
|
$ 1,894,248
|
|
|
|
|
|
|
Total assets
|
$
27,372,175
|
$
27,345,674
|
$
27,564,325
|
$
27,959,123
|
$
27,583,446
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
Other
intangible assets
|
(108,795)
|
(112,645)
|
(116,660)
|
(120,758)
|
(124,854)
|
Total
intangibles
|
(1,429,594)
|
(1,433,444)
|
(1,437,459)
|
(1,441,557)
|
(1,445,653)
|
Tangible
assets
|
$
25,942,581
|
$
25,912,230
|
$
26,126,866
|
$
26,517,566
|
$
26,137,793
|
|
|
|
|
|
|
Ratio of common equity
to assets
|
12.56 %
|
12.53 %
|
11.92 %
|
12.00 %
|
12.11 %
|
Ratio of tangible
common equity to tangible assets
|
7.75 %
|
7.69 %
|
7.07 %
|
7.22 %
|
7.25 %
|
|
|
|
|
|
|
Calculation of Tangible Book Value per
Share
|
|
|
|
|
|
|
|
|
|
|
|
Total common
stockholders' equity
|
$ 3,439,126
|
$ 3,426,488
|
$ 3,285,555
|
$ 3,356,326
|
$ 3,339,901
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
Other
intangible assets
|
(108,795)
|
(112,645)
|
(116,660)
|
(120,758)
|
(124,854)
|
Total
intangibles
|
(1,429,594)
|
(1,433,444)
|
(1,437,459)
|
(1,441,557)
|
(1,445,653)
|
Tangible common
stockholders' equity
|
$ 2,009,532
|
$ 1,993,044
|
$ 1,848,096
|
$ 1,914,769
|
$ 1,894,248
|
Shares of common stock
outstanding
|
125,419,618
|
125,184,119
|
125,133,281
|
126,224,707
|
127,282,192
|
Book value per common
share
|
$
27.42
|
$
27.37
|
$
26.26
|
$
26.59
|
$
26.24
|
Tangible book value per
common share
|
$
16.02
|
$
15.92
|
$
14.77
|
$
15.17
|
$
14.88
|
|
|
|
|
|
|
Calculation of Coverage Ratio of Uninsured,
Non-Collateralized Deposits
|
|
|
|
|
|
|
|
|
|
|
Uninsured deposits at
Simmons Bank
|
$ 8,413,514
|
$ 8,328,444
|
$
8,143,200
|
$ 8,507,395
|
$ 8,978,581
|
Less: Collateralized
deposits (excluding portion that is FDIC insured)
|
2,995,241
|
2,846,716
|
2,835,405
|
3,030,550
|
3,081,829
|
Less: Intercompany
eliminations
|
775,461
|
728,480
|
676,840
|
674,552
|
628,592
|
Total uninsured,
non-collateralized deposits
|
$ 4,642,812
|
$ 4,753,248
|
$ 4,630,955
|
$ 4,802,293
|
$ 5,268,160
|
|
|
|
|
|
|
FHLB borrowing
availability
|
$ 5,326,000
|
$ 5,401,000
|
$ 5,372,000
|
$ 5,345,000
|
$ 5,574,000
|
Unpledged
securities
|
4,122,000
|
3,817,000
|
4,124,000
|
3,877,000
|
3,000,000
|
Fed funds lines, Fed
discount window and
|
|
|
|
|
|
Bank Term
Funding Program (1)
|
2,009,000
|
1,998,000
|
1,951,000
|
1,874,000
|
2,206,000
|
Additional liquidity
sources
|
$
11,457,000
|
$
11,216,000
|
$
11,447,000
|
$
11,096,000
|
$
10,780,000
|
|
|
|
|
|
|
Uninsured,
non-collateralized deposit coverage ratio
|
2.5
|
2.4
|
2.5
|
2.3
|
2.0
|
|
|
|
|
|
|
(1) The Bank Term Funding Program closed for
new loans on March 11, 2024. At no time did Simmons borrow funds
under this program.
|
|
|
|
|
|
|
|
Calculation of Net Charge Off
Ratio
|
|
|
|
|
|
|
|
|
|
|
|
Net charge
offs
|
$
8,070
|
|
|
|
|
Less: Net charge offs
from run-off (1) and acquired portfolios
|
4,500
|
|
|
|
|
Net charge offs
excluding run-off and acquired portfolios
|
$
3,570
|
|
|
|
|
|
|
|
|
|
|
Average total
loans
|
$
16,900,496
|
|
|
|
|
|
|
|
|
|
|
Annualized net charge
offs to average loans (NCO ratio)
|
0.19 %
|
|
|
|
|
NCO ratio, excluding
net charge offs of run-off and acquired
|
|
|
|
|
|
portfolios
(annualized)
|
0.08 %
|
|
|
|
|
|
|
|
|
|
|
(1) Run-off portfolio consists of asset based
lending and small equipment finance portfolios obtained in
acquisitions.
|
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Quarter-to-Date
|
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands)
|
|
|
|
|
|
Calculation of Adjusted Return on Average
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
38,871
|
$
23,907
|
$
47,247
|
$
58,314
|
$
45,589
|
Certain items
(non-GAAP)
|
|
|
|
|
|
FDIC Deposit Insurance
special assessment
|
1,549
|
10,521
|
-
|
-
|
-
|
Merger related
costs
|
-
|
-
|
5
|
19
|
1,396
|
Early retirement
program
|
219
|
1,032
|
1,557
|
3,609
|
-
|
Loss (gain) on sale of
securities
|
-
|
20,218
|
-
|
391
|
-
|
Branch right sizing
(net)
|
236
|
3,846
|
547
|
95
|
979
|
Tax effect of certain
items (2)
|
(524)
|
(9,309)
|
(552)
|
(1,074)
|
(621)
|
Adjusted earnings
(non-GAAP)
|
$
40,351
|
$
50,215
|
$
48,804
|
$
61,354
|
$
47,343
|
|
|
|
|
|
|
Average total
assets
|
$ 27,259,399
|
$ 27,370,811
|
$ 27,594,611
|
$ 27,766,139
|
$ 27,488,732
|
|
|
|
|
|
|
Return on average
assets
|
0.57 %
|
0.35 %
|
0.68 %
|
0.84 %
|
0.67 %
|
Adjusted return on
average assets (non-GAAP)
|
0.60 %
|
0.73 %
|
0.70 %
|
0.89 %
|
0.70 %
|
|
|
|
|
|
|
Calculation of Return on Tangible Common
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
38,871
|
$
23,907
|
$
47,247
|
$
58,314
|
$
45,589
|
Amortization of
intangibles, net of taxes
|
2,844
|
2,965
|
3,027
|
3,026
|
3,026
|
Total income available
to common stockholders
|
$
41,715
|
$
26,872
|
$
50,274
|
$
61,340
|
$
48,615
|
Certain items
(non-GAAP)
|
|
|
|
|
|
Gain on insurance
settlement
|
$
-
|
$
-
|
$
-
|
$
-
|
$
-
|
FDIC Deposit Insurance
special assessment
|
1,549
|
10,521
|
-
|
-
|
-
|
Merger related
costs
|
-
|
-
|
5
|
19
|
1,396
|
Early retirement
program
|
219
|
1,032
|
1,557
|
3,609
|
-
|
Loss (gain) on sale of
securities
|
-
|
20,218
|
-
|
391
|
-
|
Branch right sizing
(net)
|
236
|
3,846
|
547
|
95
|
979
|
Tax effect of certain
items (2)
|
(524)
|
(9,309)
|
(552)
|
(1,074)
|
(621)
|
Adjusted earnings
(non-GAAP)
|
40,351
|
50,215
|
48,804
|
61,354
|
47,343
|
Amortization of
intangibles, net of taxes
|
2,844
|
2,965
|
3,027
|
3,026
|
3,026
|
Total adjusted earnings
available to common stockholders (non-GAAP)
|
$
43,195
|
$
53,180
|
$
51,831
|
$
64,380
|
$
50,369
|
|
|
|
|
|
|
Average common
stockholders' equity
|
$
3,447,021
|
$
3,336,247
|
$
3,371,678
|
$
3,358,924
|
$
3,370,651
|
Average intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,320,799)
|
(1,319,624)
|
Other
intangibles
|
(111,023)
|
(114,861)
|
(119,125)
|
(123,173)
|
(127,394)
|
Total average
intangibles
|
(1,431,822)
|
(1,435,660)
|
(1,439,924)
|
(1,443,972)
|
(1,447,018)
|
Average tangible common
stockholders' equity (non-GAAP)
|
$
2,015,199
|
$
1,900,587
|
$
1,931,754
|
$
1,914,952
|
$
1,923,633
|
|
|
|
|
|
|
Return on average
common equity
|
4.54 %
|
2.84 %
|
5.56 %
|
6.96 %
|
5.49 %
|
Return on tangible
common equity
|
8.33 %
|
5.61 %
|
10.33 %
|
12.85 %
|
10.25 %
|
Adjusted return on
average common equity (non-GAAP)
|
4.71 %
|
5.97 %
|
5.74 %
|
7.33 %
|
5.70 %
|
Adjusted return on
tangible common equity (non-GAAP)
|
8.62 %
|
11.10 %
|
10.64 %
|
13.48 %
|
10.62 %
|
|
|
|
|
|
|
Calculation of Efficiency Ratio and Adjusted
Efficiency Ratio(1)
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(efficiency ratio numerator)
|
$
139,879
|
$
148,139
|
$
131,998
|
$
139,696
|
$
143,228
|
Certain noninterest
expense items (non-GAAP)
|
|
|
|
|
|
Merger related
costs
|
-
|
-
|
(5)
|
(19)
|
(1,396)
|
Early retirement
program
|
(219)
|
(1,032)
|
(1,557)
|
(3,609)
|
-
|
FDIC Deposit Insurance
special assessment
|
(1,549)
|
(10,521)
|
-
|
-
|
-
|
Branch right sizing
expense
|
(236)
|
(3,846)
|
(547)
|
(95)
|
(979)
|
Other real estate and
foreclosure expense adjustment
|
(179)
|
(189)
|
(228)
|
(289)
|
(186)
|
Amortization of
intangibles adjustment
|
(3,850)
|
(4,015)
|
(4,097)
|
(4,098)
|
(4,096)
|
Adjusted efficiency
ratio numerator
|
$
133,846
|
$
128,536
|
$
125,564
|
$
131,586
|
$
136,571
|
|
|
|
|
|
|
Net interest
income
|
$
151,906
|
$
155,628
|
$
153,433
|
$
163,230
|
$
177,835
|
Noninterest
income
|
43,184
|
21,974
|
42,777
|
44,980
|
45,835
|
Fully tax-equivalent
adjustment (effective tax rate of 26.135%)
|
6,422
|
6,511
|
6,515
|
6,106
|
6,311
|
Efficiency ratio
denominator
|
201,512
|
184,113
|
202,725
|
214,316
|
229,981
|
Certain noninterest
income items (non-GAAP)
|
|
|
|
|
|
Branch right sizing
income
|
-
|
-
|
-
|
-
|
-
|
(Gain) loss on sale of
securities
|
-
|
20,218
|
-
|
391
|
-
|
Adjusted efficiency
ratio denominator
|
$
201,512
|
$
204,331
|
$
202,725
|
$
214,707
|
$
229,981
|
|
|
|
|
|
|
Efficiency
ratio(1)
|
69.41 %
|
80.46 %
|
65.11 %
|
65.18 %
|
62.28 %
|
Adjusted efficiency
ratio (non-GAAP)(1)
|
66.42 %
|
62.91 %
|
61.94 %
|
61.29 %
|
59.38 %
|
|
|
|
|
|
|
(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
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands)
|
|
|
|
|
|
Calculation of Total Revenue and Adjusted Total
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
151,906
|
$
155,628
|
$
153,433
|
$
163,230
|
$
177,835
|
Noninterest
income
|
43,184
|
21,974
|
42,777
|
44,980
|
45,835
|
Total
revenue
|
195,090
|
177,602
|
196,210
|
208,210
|
223,670
|
Certain items, pre-tax
(non-GAAP)
|
|
|
|
|
|
Less: Gain (loss) on
sale of securities
|
-
|
(20,218)
|
-
|
(391)
|
-
|
Adjusted total
revenue
|
$
195,090
|
$
197,820
|
$
196,210
|
$
208,601
|
$
223,670
|
|
|
|
|
|
|
Calculation of Pre-Provision Net Revenue
(PPNR)
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
151,906
|
$
155,628
|
$
153,433
|
$
163,230
|
$
177,835
|
Noninterest
income
|
43,184
|
21,974
|
42,777
|
44,980
|
45,835
|
Total
revenue
|
195,090
|
177,602
|
196,210
|
208,210
|
223,670
|
Less: Noninterest
expense
|
139,879
|
148,139
|
131,998
|
139,696
|
143,228
|
Pre-Provision Net
Revenue (PPNR)
|
$
55,211
|
$
29,463
|
$
64,212
|
$
68,514
|
$
80,442
|
|
|
|
|
|
|
Calculation of Adjusted Pre-Provision Net
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Provision Net
Revenue (PPNR)
|
$
55,211
|
$
29,463
|
$
64,212
|
$
68,514
|
$
80,442
|
Certain items, pre-tax
(non-GAAP)
|
|
|
|
|
|
Plus: Loss (gain) on
sale of securities
|
-
|
20,218
|
-
|
391
|
-
|
Plus: FDIC Deposit
Insurance special assessment
|
1,549
|
10,521
|
-
|
-
|
-
|
Plus: Merger related
costs
|
-
|
-
|
5
|
19
|
1,396
|
Plus: Early retirement
program costs
|
219
|
1,032
|
1,557
|
3,609
|
-
|
Plus: Branch right
sizing costs (net)
|
236
|
3,846
|
547
|
95
|
979
|
Adjusted Pre-Provision
Net Revenue
|
$
57,215
|
$
65,080
|
$
66,321
|
$
72,628
|
$
82,817
|
|
|
|
|
|
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Year-to-Date
|
|
|
|
|
|
For the Quarters Ended
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
(Unaudited)
|
2024
|
2023
|
2023
|
2023
|
2023
|
($ in thousands)
|
|
|
|
|
|
Calculation of Adjusted Return on Average
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
38,871
|
$
175,057
|
$
151,150
|
$
103,903
|
$
45,589
|
Certain items
(non-GAAP)
|
|
|
|
|
|
FDIC Deposit Insurance
special assessment
|
1,549
|
10,521
|
-
|
-
|
-
|
Merger related
costs
|
-
|
1,420
|
1,420
|
1,415
|
1,396
|
Early retirement
program
|
219
|
6,198
|
5,166
|
3,609
|
-
|
Loss (gain) on sale of
securities
|
-
|
20,609
|
391
|
391
|
-
|
Branch right sizing
(net)
|
236
|
5,467
|
1,621
|
1,074
|
979
|
Tax effect of certain
items (2)
|
(524)
|
(11,556)
|
(2,247)
|
(1,695)
|
(621)
|
Adjusted earnings
(non-GAAP)
|
$
40,351
|
$
207,716
|
$
157,501
|
$
108,697
|
$
47,343
|
|
|
|
|
|
|
Average total
assets
|
$ 27,259,399
|
$ 27,554,859
|
$ 27,616,882
|
$ 27,628,202
|
$ 27,488,732
|
|
|
|
|
|
|
Return on average
assets
|
0.57 %
|
0.64 %
|
0.73 %
|
0.76 %
|
0.67 %
|
Adjusted return on
average assets (non-GAAP)
|
0.60 %
|
0.75 %
|
0.76 %
|
0.79 %
|
0.70 %
|
|
|
|
|
|
|
Calculation of Return on Tangible Common
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
38,871
|
$
175,057
|
$
151,150
|
$
103,903
|
$
45,589
|
Amortization of
intangibles, net of taxes
|
2,844
|
12,044
|
9,079
|
6,052
|
3,026
|
Total income available
to common stockholders
|
$
41,715
|
$
187,101
|
$
160,229
|
$
109,955
|
$
48,615
|
Certain items
(non-GAAP)
|
|
|
|
|
|
FDIC Deposit Insurance
special assessment
|
$
1,549
|
$
10,521
|
$
-
|
$
-
|
$
-
|
Merger related
costs
|
-
|
1,420
|
1,420
|
1,415
|
1,396
|
Early retirement
program
|
219
|
6,198
|
5,166
|
3,609
|
-
|
Loss (gain) on sale of
securities
|
-
|
20,609
|
391
|
391
|
-
|
Branch right sizing
(net)
|
236
|
5,467
|
1,621
|
1,074
|
979
|
Tax effect of certain
items (2)
|
(524)
|
(11,556)
|
(2,247)
|
(1,695)
|
(621)
|
Adjusted earnings
(non-GAAP)
|
40,351
|
207,716
|
157,501
|
108,697
|
47,343
|
Amortization of
intangibles, net of taxes
|
2,844
|
12,044
|
9,079
|
6,052
|
3,026
|
Total adjusted earnings
available to common stockholders (non-GAAP)
|
$
43,195
|
$
219,760
|
$
166,580
|
$
114,749
|
$
50,369
|
|
|
|
|
|
|
Average common
stockholders' equity
|
$
3,447,021
|
$
3,359,312
|
$
3,367,088
|
$
3,364,755
|
$
3,370,651
|
Average intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,510)
|
(1,320,412)
|
(1,320,215)
|
(1,319,624)
|
Other
intangibles
|
(111,023)
|
(121,098)
|
(123,200)
|
(125,272)
|
(127,394)
|
Total average
intangibles
|
(1,431,822)
|
(1,441,608)
|
(1,443,612)
|
(1,445,487)
|
(1,447,018)
|
Average tangible common
stockholders' equity (non-GAAP)
|
$
2,015,199
|
$
1,917,704
|
$
1,923,476
|
$
1,919,268
|
$
1,923,633
|
|
|
|
|
|
|
Return on average
common equity
|
4.54 %
|
5.21 %
|
6.00 %
|
6.23 %
|
5.49 %
|
Return on tangible
common equity
|
8.33 %
|
9.76 %
|
11.14 %
|
11.55 %
|
10.25 %
|
Adjusted return on
average common equity (non-GAAP)
|
4.71 %
|
6.18 %
|
6.25 %
|
6.51 %
|
5.70 %
|
Adjusted return on
tangible common equity (non-GAAP)
|
8.62 %
|
11.46 %
|
11.58 %
|
12.06 %
|
10.62 %
|
|
|
|
|
|
|
Calculation of Efficiency Ratio and Adjusted
Efficiency Ratio(1)
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(efficiency ratio numerator)
|
$
139,879
|
$
563,061
|
$
414,922
|
$
282,924
|
$
143,228
|
Certain noninterest
expense items (non-GAAP)
|
|
|
|
|
|
Merger related
costs
|
-
|
(1,420)
|
(1,420)
|
(1,415)
|
(1,396)
|
Early retirement
program
|
(219)
|
(6,198)
|
(5,166)
|
(3,609)
|
-
|
FDIC Deposit Insurance
special assessment
|
(1,549)
|
(10,521)
|
-
|
-
|
-
|
Branch right sizing
expense
|
(236)
|
(5,467)
|
(1,621)
|
(1,074)
|
(979)
|
Other real estate and
foreclosure expense adjustment
|
(179)
|
(892)
|
(703)
|
(475)
|
(186)
|
Amortization of
intangibles adjustment
|
(3,850)
|
(16,306)
|
(12,291)
|
(8,194)
|
(4,096)
|
Adjusted efficiency
ratio numerator
|
$
133,846
|
$
522,257
|
$
393,721
|
$
268,157
|
$
136,571
|
|
|
|
|
|
|
Net interest
income
|
$
151,906
|
$
650,126
|
$
494,498
|
$
341,065
|
$
177,835
|
Noninterest
income
|
43,184
|
155,566
|
133,592
|
90,815
|
45,835
|
Fully tax-equivalent
adjustment (effective tax rate of 26.135%)
|
6,422
|
25,443
|
18,932
|
12,417
|
6,311
|
Efficiency ratio
denominator
|
201,512
|
831,135
|
647,022
|
444,297
|
229,981
|
Certain noninterest
income items (non-GAAP)
|
|
|
|
|
|
Branch right sizing
income
|
-
|
-
|
-
|
-
|
-
|
(Gain) loss on sale of
securities
|
-
|
20,609
|
391
|
391
|
-
|
Adjusted efficiency
ratio denominator
|
$
201,512
|
$
851,744
|
$
647,413
|
$
444,688
|
$
229,981
|
|
|
|
|
|
|
Efficiency
ratio(1)
|
69.41 %
|
67.75 %
|
64.13 %
|
63.68 %
|
62.28 %
|
Adjusted efficiency
ratio (non-GAAP)(1)
|
66.42 %
|
61.32 %
|
60.81 %
|
60.30 %
|
59.38 %
|
|
|
|
|
|
|
(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