Simmons First National Corp. SFNC

NAS: SFNC | ISIN: US8287302009   28/03/2024
19,46 USD (+0,62%)
(+0,62%)   28/03/2024

Simmons First National Corporation Reports First Quarter 2023 Results

PINE BLUFF, Ark., April 25, 2023 /PRNewswire/ --

Bob Fehlman, Simmons' Chief Executive Officer, commented on first quarter 2023 results

While the continued challenges from rising interest rates, coupled this quarter with heightened market volatility, brought amplified attention to the financial services industry, our focus remained on the fundamentals that have served us well during our 120-year history.

Deposit levels were stable, further highlighting the granularity of our deposit base, as well as the long-term relationships we have with many of our customers. Consistent with industry trends, we experienced migration to higher rate deposits throughout the quarter, resulting in an increase in the cost of deposits. Despite these challenges, we continued to operate from a position of strength given our solid liquidity position. Uninsured deposits represented only 23 percent of total deposits. At $10.8 billion, additional liquidity sources available to the company represented 2.0 times the level of uninsured deposits. Capital levels increased with all regulatory capital ratios significantly above "well-capitalized" guidelines, and our TCE ratio ended the quarter at 7.3 percent. Key credit quality metrics also remained strong with our NPL coverage ratio at 324 percent and our allowance to loan ratio at 1.25 percent.

Overall expenses were well contained in the quarter. Through our Better Bank Initiative, we have identified an estimated $15 million in annual noninterest expense cost savings that we expect to be fully incorporated into our run-rate by the end of 2023. The programs under this initiative are designed to optimize operational processes, further improve the customer experience and increase our capacity to capitalize on organic growth opportunities, while at the same time improving our long-term growth profile.

Financial Highlights

   1Q23

   4Q22

    1Q22


Q1 23 Highlights

Balance Sheet (in millions)





        Metrics as of quarter end:

 

·  Stable deposit levels further
highlight the granularity of our
deposit portfolio and long-term
relationships with many
customers

 

·  Solid liquidity position with
loan to deposit ratio at 74%;
other borrowings unchanged at
6% of total liabilities 

 

·  Uninsured deposits represented
23% of total deposits;
additional liquidity sources
provide 2.0x coverage of
uninsured deposits

 

·  Disciplined loan growth as total
loans increase 3% on a linked
quarter basis

 

·  Maintained strong credit quality
metrics; NPL coverage ratio at
324% and allowance to loan
ratio of 1.25%

 

·  All regulatory capital ratios
continue to significantly exceed
"well-capitalized guidelines;
TCE ratio1 at 7.3%

Total deposits

$22,452

$22,548

$19,392


Total loans

16,555

16,142

12,029


Total investment securities

7,521

7,613

8,197


Total shareholders' equity

3,340

3,269

2,962


Asset Quality





Net charge-off ratio

0.03 %

0.13 %

0.22 %


Nonperforming loan ratio

0.38

0.37

0.53


Nonperforming assets to total assets

0.26

0.23

0.29


Allowance for credit losses to total loans

1.25

1.22

1.49


Nonperforming loan coverage ratio

324

334

278


Capital Ratios





Equity to assets

12.11 %

11.91 %

12.10 %


Tangible common equity (TCE) ratio1

7.25

7.00

7.37


Common equity tier 1 (CET1) ratio

11.87

11.90

13.52


Total risk-based capital ratio

14.47

14.22

16.42


Liquidity ($ in millions)





Loan to deposit ratio

73.74 %

71.59 %

62.03 %


Borrowed funds to total liabilities

6.32 %

5.73 %

8.91 %


Uninsured deposits

$  5,268

$  6,740

$5,910


Additional liquidity sources

$10,780

$10,604

$8,358


Coverage ratio of uninsured deposits

       2.0x

        1.6x

        1.4x


Performance Measures (in millions)





Total revenue

$223.7

$237.7

$187.8


Pre-provision net revenue1

80.4

95.2

59.5


Adjusted pre-provision net revenue1

82.8

92.2

62.3


Provision for credit losses on loans

10.9

-

(19.9)


Provision for credit losses on securities

13.3

-

-


Noninterest income

45.8

44.6

42.2


Noninterest expense

143.2

142.6

128.4


Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $45.6 million for the first quarter of 2023, compared to $83.3 million in the fourth quarter of 2022 and $65.1 million in the first quarter of 2022. Diluted earnings per share were $0.36 for the first quarter of 2023, compared to $0.65 in the fourth quarter of 2022 and $0.58 in the first quarter of 2022. Adjusted earnings1 for the first quarter of 2023 were $47.3 million, compared to $81.1 million in the fourth quarter of 2022 and $67.2 million in the first quarter of 2022. A summary of certain items, consisting primarily of merger related costs and branch right-sizing costs, are described in the "Reconciliation of Non-GAAP Financial Measures" tables below.

Total revenue for the first quarter of 2023 was $223.7 million, compared to $237.7 million in the fourth quarter of 2022 and $187.8 million in the first quarter of 2022. Pre-provision net revenue1 for the first quarter of 2023 was $80.4 million, compared to $95.2 million in the fourth quarter of 2022 and $59.5 million in the first quarter of 2022. Adjusted pre-provision net revenue1 was $82.8 million, compared to $92.2 million in the fourth quarter of 2022 and $62.3 million in the first quarter of 2022.

The decline in revenue and pre-provision net revenue on a linked quarter basis primarily reflected a decrease in net interest income, as an increase in deposit cost and the continued change in the mix of deposits more than offset an increase in interest income on earning assets, an increase in noninterest income and well contained noninterest expense growth. Results for the first quarter of 2023 also include a provision for credit losses of $24.2 million, reflecting loan growth in the quarter, the impact of updated economic assumptions and the identification of two nonperforming corporate bonds in the securities portfolio. During the fourth quarter of 2022, the Company did not record a provision for credit losses, and in the first quarter of 2022 recorded a recapture of provision expense of $19.9 million.

Net Interest Income
Net interest income for the first quarter of 2023 totaled $177.8 million, compared to $193.0 million for the fourth quarter of 2022 and $145.6 million for the first quarter of 2022. Included in net interest income is accretion recognized on assets acquired, which totaled $2.6 million in the first quarter of 2023, $4.5 million in the fourth quarter of 2022 and $3.7 million in the first quarter of 2022. On a linked quarter basis, interest income increased $14.6 million, while interest expense increased $29.7 million primarily as a result of the competitive interest rate environment and the corresponding migration to higher rate deposits products.

The yield on loans for the first quarter of 2023 was 5.67 percent, compared to 5.40 percent in the fourth quarter of 2022 and 4.34 percent in the first quarter of 2022. The yield on investment securities for the first quarter of 2023 was 2.92 percent, compared to 2.68 percent for the fourth quarter of 2022 and 1.86 percent for the first quarter of 2022. Cost of deposits for the first quarter of 2023 was 1.58 percent, compared to 1.02 percent for the fourth quarter of 2022 and 0.14 percent for the first quarter of 2022. The increase in the cost of deposits reflected the dramatic increase in interest rates during 2022 and the first quarter of 2023, customer migration to higher rate deposit products and increased competition for deposits. The net interest margin on a fully taxable equivalent basis for the first quarter of 2023 was 3.09 percent, compared to 3.31 percent for the fourth quarter of 2022 and 2.76 percent for the first quarter of 2022.


Q1 23

Q4 22

Q3 22

Q2 22

Q1 22

Loan yield (FTE) 2

5.67 %

5.40 %

4.86 %

4.54 %

4.34 %

Investment securities yield (FTE) 2

2.92

2.68

2.29

2.08

1.86

Cost of interest bearing deposits

2.10

1.41

0.65

0.25

0.19

Cost of deposits

1.58

1.02

0.47

0.18

0.14

Cost of borrowed funds

4.29

3.92

2.66

2.13

1.94

Net interest spread (FTE) 2

2.52

2.87

3.11

3.11

2.66

Net interest margin (FTE) 2

3.09

3.31

3.34

3.24

2.76

Noninterest Income
Noninterest income for the first quarter of 2023 was $45.8 million, compared to $44.6 million in the fourth quarter of 2022 and $42.2 million in the first quarter of 2022. Included in first quarter 2023 results is a $4.0 million legal reserve recapture associated with previously disclosed legal matters. The fourth quarter of 2022 included a $4.1 million gain on insurance settlement related to a weather event that caused severe damage to one of our branches. Adjusted noninterest income1 for the first quarter of 2023 was $45.8 million, compared to $40.6 million in the fourth quarter of 2022 and $42.2 million for the first quarter of 2022. The increase in adjusted noninterest income on a linked quarter basis was primarily attributable to an increase in service charges on deposit accounts and mortgage lending income and legal reserve recapture, offset by a market driven decline in wealth management fees. On a year-over-year basis, the increase in noninterest income was primarily attributable to an increase in service charges on deposit accounts, debit and credit card fees and legal reserve recapture, offset in part by a decline in mortgage lending income resulting from reduced activity throughout the housing market given the dramatic increase in interest rates.

Noninterest Income

$ in millions

Q1 23

Q4 22

Q3 22

Q2 22

Q1 22

Service charges on deposit accounts

$ 12.4

$ 11.9

$ 12.6

$ 11.4

$ 10.7

Wealth management fees

7.4

8.2

8.6

7.2

8.0

Debit and credit card fees

8.0

7.8

7.7

8.2

7.4

Mortgage lending income

1.6

1.1

2.6

2.2

4.6

Other service charges and fees

2.3

2.0

2.1

1.9

1.6

Bank owned life insurance

3.0

3.0

2.9

2.6

2.7

Gain (loss) on sale of securities

-

(0.1)

-

(0.2)

(0.1)

Gain on insurance settlement

-

4.1

-

-

-

Other income

11.3

6.6

6.7

6.8

7.3







Adjusted other income 1

11.3

6.6

6.3

6.9

7.3

Noninterest Expense
Noninterest expense for the first quarter of 2023 was $143.2 million, compared to $142.6 million in the fourth quarter of 2022 and $128.4 million in the first quarter of 2022. Included in noninterest expense are certain items, primarily consisting of merger related and branch right sizing costs, totaling $2.4 million in the first quarter of 2023, $1.1 million the fourth quarter of 2022 and $2.8 million in the first quarter of 2022. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest expense1 was $140.9 million in the first quarter of 2023, $141.4 million in the fourth quarter of 2022 and $125.6 million in the first quarter of 2022. The decrease in adjusted noninterest expense on a linked quarter basis was primarily due to a decrease in other operating expenses, which in the fourth quarter of 2022 included $1.2 million related to the amortization of certain tax credits. The increase in salaries and employee benefits on a linked quarter basis reflected seasonal payroll taxes incurred during the first quarter, 401(k) profit sharing contribution and equity awards compensation. The increase in adjusted noninterest expense compared to the first quarter of 2022 primarily reflects the aforementioned items, as well as the acquisition of Spirit of Texas Bancshares, Inc. (Spirit) which closed early in the second quarter of 2022.

Noninterest Expense

$ in millions

Q1 23

Q4 22

Q3 22

Q2 22

Q1 22

Salaries and employee benefits

$77.0

$73.0

$71.9

$74.1

$67.9

Occupancy expense, net

11.6

11.6

11.7

11.0

10.0

Furniture and equipment

5.1

5.4

5.4

5.1

4.8

Deposit insurance

4.9

3.7

3.3

2.8

1.8

Other real estate and foreclosure expense

0.2

0.4

0.2

0.1

0.3

Merger related costs

1.4

-

1.4

19.1

1.9

Other operating expenses

43.1

48.5

45.1

44.5

41.6







Adjusted other operating expenses 1

42.3

47.5

44.1

42.7

40.9

Efficiency ratio

62.28 %

58.33 %

57.22 %

67.77 %

66.39 %

Adjusted efficiency ratio 1

59.38 %

56.97 %

54.41 %

56.74 %

62.95 %

Loans and Unfunded Loan Commitments
Total loans at the end of the first quarter of 2023 were $16.6 billion, an increase of $413 million, or 3 percent, compared to $16.1 billion at the end of the fourth quarter of 2022. The increase in total loans was supported by diverse growth in terms of type and by geographic market. On a year-over-year basis, total loans were up $4.5 billion, or 38 percent, reflecting, in large part, the acquisition of Spirit.

Unfunded commitments at the end of the first quarter of 2023 were $4.7 billion, compared to $5.0 billion at the end of the fourth quarter of 2022 and $3.4 billion at the end of the first quarter of 2022. While unfunded commitments are considered a key indicator of future loan growth, higher interest rates, softening economic conditions and forecasts of a potential recession in the U.S. have resulted in lower activity in our commercial loan pipeline. Commercial loans approved and ready to close at the end of the first quarter of 2023 totaled $504 million and the rate on ready to close commercial loans was 7.32 percent, up 47 basis points from the rate on ready to close commercial loans at the end of the fourth quarter of 2022.

 

$ in millions

Q1 23

Q4 22

Q3 22

Q2 22

Q1 22

Total loans

$16,555

$16,142

$15,607

$15,110

$12,029

Unfunded loan commitments

$4,725

$5,000

$5,138

$4,473

$3,428

Deposits
Total deposits at the end of the first quarter of 2023 were $22.5 billion, relatively unchanged from the end of the fourth quarter of 2022, and up $3.1 billion compared to the first quarter of 2022. Noninterest bearing deposits totaled $5.5 billion at the end of the first quarter of 2023, compared to $6.0 billion at the end of the fourth quarter of 2022 and $5.2 billion at the end of the first quarter of 2022. Noninterest bearing deposits represent 24 percent of total deposits at the end of the first quarter of 2023, compared to 27 percent at the end of both the fourth quarter of 2022 and the first quarter of 2022. Interest bearing transaction accounts totaled $11.3 billion at the end of the first quarter of 2023, compared to $11.8 billion at the end of the fourth quarter of 2022 and $12.1 billion at the end of the first quarter of 2022. Time deposits totaled $5.7 billion at the end of the first quarter of 2023, compared to $4.8 billion at the end of the fourth quarter of 2022 and $2.1 billion at the end of the first quarter of 2022. The change in the mix of deposits on a linked quarter basis continued to reflect increased market competition and consumer migration toward higher rate deposits, principally certificates of deposits, given the rapid increase in interest rates that has occurred over the past year. The loan to deposit ratio ended the first quarter of 2023 at 74 percent, compared to 72 percent at the end of the fourth quarter of 2022 and 62 percent at the end of the first quarter of 2022.

 

$ in millions

Q1 23

Q4 22

Q3 22

Q2 22

Q1 22

Noninterest bearing deposits

$   5,489

$   6,017

$   6,218

$  6,057

$   5,224

Interest bearing transaction accounts

11,284

11,763

12,104

12,816

12,106

Time deposits

5,679

4,768

3,827

3,163

2,062

   Total deposits

$22,452

$22,548

$22,149

$22,036

$19,392







Noninterest bearing deposits to total deposits

24 %

27 %

28 %

27 %

27 %

Total loans to total deposits

74

72

70

69

62

Asset Quality
Total nonperforming loans at the end of the first quarter of 2023 were $63.7 million, compared to $58.9 million at the end of the fourth quarter of 2022 and $64.3 million at the end of the first quarter of 2022. Total nonperforming assets as a percentage of total assets were 0.26 percent at the end of the first quarter of 2023, compared to 0.23 percent at the end of the fourth quarter 2022 and 0.29 percent at the end of the first quarter of 2022. The increase in nonperforming assets on a linked quarter basis was primarily due to isolated corporate bonds in the investment securities portfolio totaling approximately $4.0 million. Net charge-offs as a percentage of average loans for the first quarter of 2023 were 3 basis points, compared to 13 basis points in the fourth quarter of 2022 and 22 basis points in the first quarter of 2022.

Provision for credit losses totaled $24.2 million in the first quarter of 2023, compared to provision recapture of $19.9 million in the first quarter of 2022. Of the total provision for credit losses recorded in the first quarter of 2023, approximately $10.9 million was related to loans, reflecting loan growth in the quarter, as well as the impact of updated economic assumptions. Approximately $13.3 million of provision for credit losses was related to decreases in the value of corporate bonds in the investment securities portfolio, including the previously noted securities classified as nonperforming during the quarter. The allowance for credit losses on loans at the end of the first quarter of 2023 was $206.6 million, compared to $197.0 million at the end of the fourth quarter of 2022 and $178.9 million at the end of the first quarter of 2022. The nonperforming loan coverage ratio ended the quarter at 324 percent, compared to 334 percent at the end of the fourth quarter of 2022 and 278 percent at the end of the first quarter of 2022. The reserve for unfunded commitments totaled $41.9 million at the end of the first quarter of 2023, unchanged from fourth quarter 2022 levels and up from $22.4 million at the end of the first quarter of 2022.

 

$ in millions

Q1 23

Q4 22

Q3 22

Q2 22

Q1 22

Allowance for credit losses on loans to total loans

 

1.25 %

 

1.22 %

 

1.27 %

 

1.41 %

 

1.49 %

Allowance for credit losses on loans to nonperforming loans

 

324

 

334

 

342

 

334

 

278

Nonperforming loans to total loans

0.38

0.37

0.37

0.42

0.53

Net charge-off ratio (annualized)

0.03

0.13

-

0.02

0.22

Net charge-off ratio YTD (annualized)

0.03

0.09

0.07

0.11

0.22







Total nonperforming loans

$63.7

$58.9

$57.8

$63.6

$64.3

Total other nonperforming assets

7.7

3.6

4.7

6.4

6.6

   Total nonperforming assets

$71.4

$62.5

$62.5

$70.0

$70.9







Reserve for unfunded commitments

$41.9

$41.9

$41.9

$25.9

$22.4

Capital
Total common stockholders' equity at the end of the first quarter of 2023 was $3.3 billion, compared to $3.0 billion at the end of the first quarter of 2022. On a linked quarter basis, total common stockholders' equity increased $70.5 million primarily as a result of a $46.9 million decrease in unrealized losses associated with investment securities classified as available-for-sale. Book value per share at the end of the first quarter of 2023 was $26.24, compared to $25.73 at the end of the fourth quarter of 2022 and $26.32 at the end of the first quarter of 2022. Tangible book value per share1 was $14.88 at the end of the first quarter of 2023, compared to $14.33 at the end of the fourth quarter of 2022 and $15.22 at the end of the first quarter of 2022. Stockholders' equity to total assets at March 31, 2023, was 12.1 percent, compared to 11.9 percent at the end of the fourth quarter of 2022 and 12.1 percent at the end of the first quarter of 2022. Tangible common equity to tangible assets1 was 7.3 percent at March 31, 2023, compared to 7.0 percent at December 31, 2022, and 7.4 percent at March 31, 2022. All of Simmons' regulatory capital ratios significantly exceed "well-capitalized" guidelines.


Q1 23

Q4 22

Q3 22

Q2 22

Q1 22

Stockholders' equity to total assets

12.1 %

11.9 %

11.7 %

12.0 %

12.1 %

Tangible common equity to tangible assets 1

 

7.3

 

7.0

 

6.7

 

7.0

 

7.4

Common equity tier 1 (CET1) ratio

11.9

11.9

11.7

12.1

13.5

Tier 1 leverage ratio

9.2

9.3

9.2

9.2

9.0

Tier 1 risk-based capital ratio

11.9

11.9

11.7

12.1

13.5

Total risk-based capital ratio

14.5

14.2

14.1

14.8

16.4

Share Repurchase Program and Cash Dividend
As a result of Simmons' solid capital position and its ability to organically generate capital, the board of directors declared a cash dividend on Simmons' Class A common stock for the second quarter of 2023 of $0.20 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 3, 2023, to shareholders of record as of June 15, 2023. The indicated annualized cash dividend rate of $0.80 represents a ten-year compound annual growth rate of 7 percent. 2023 represents the 114th consecutive year that Simmons has paid cash dividends and the 12th consecutive year that Simmons has increased its dividend. According to research by Dividend Power, Simmons is one of only 24 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 21, 2023, Dividend Power research noted that Simmons is one of only 371 companies out of nearly 6,000 companies listed on the New York Stock Exchange and NASDAQ in 2022 to achieve this distinction.

During the first quarter of 2023, Simmons did not repurchase shares under its 2022 stock repurchase program (2022 Program). Remaining authorization under the 2022 Program as of March 31, 2023, was approximately $80 million. Market conditions and our capital needs will drive the decision regarding future stock repurchases; the timing, pricing and amount of any repurchases under the 2022 Program will be determined by Simmons' management at its discretion; and the 2022 Program does not obligate Simmons to repurchase any common stock and may be modified, discontinued or suspended at any time without prior notice.




(1)

Non-GAAP measurement. See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" below

(2)

FTE – fully taxable equivalent using an effective tax rate of 26.135%

(3)

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, Tuesday, April 25, 2023. Interested persons can listen to this call by dialing toll-free 1-888-222-5806 (North America only) and asking for the Simmons First National Corporation conference call, conference ID 10176799. 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 114 consecutive years. Its principal subsidiary, Simmons Bank, operates 231 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 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 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 and gain on sale of intellectual property. In addition, the Company also presents certain figures based on tangible common stockholders' equity, tangible assets and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of the impact of PPP loans, 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, the effects of the PPP, and certain other effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's ongoing businesses, and management uses these non-GAAP financial measures to assess the performance of the Company's ongoing businesses as related to prior financial periods. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements
Certain statements in this press release may not be based on historical facts and should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Fehlman's quote, may be identified by reference to future periods or by the use of forward-looking terminology, such as "believe," "budget," "expect," "foresee," "anticipate," "intend," "indicate," "target," "estimate," "plan," "project," "continue," "contemplate," "positions," "prospects," "predict," or "potential," by future conditional verbs such as "will," "would," "should," "could," "might" or "may," or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons' future growth, business strategies, lending capacity and lending activity, loan demand, revenue, assets, asset quality, profitability, dividends, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, digital banking initiatives, the Company's ability to recruit and retain key employees, the 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 news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, 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, and changes in information technology affecting the financial industry; changes in customer behaviors, including consumer spending, borrowing, and saving habits; the effects of the COVID-19 pandemic on, among other things, the Company's operations, liquidity, and credit quality; general economic and market conditions; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflict between Russia and Ukraine) or other major events, or the prospect of these events; 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 those transactions; cyber threats, attacks or events; reliance on third parties for key services; government legislation; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those projected in or contemplated by the forward-looking statements. Additional information on factors that might affect the Company's financial results is included in the Company's Form 10-K for the year ended December 31, 2022, 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) 

2023

2022

2022

2022

2022

($ in thousands)






 ASSETS 






 Cash and noninterest bearing balances due from banks 

$      199,316

$      200,616

$      175,547

$      193,473

$      195,510

 Interest bearing balances due from banks and federal funds sold 

325,135

481,506

503,863

771,374

1,491,507

     Cash and cash equivalents 

524,451

682,122

679,410

964,847

1,687,017

 Interest bearing balances due from banks - time 

795

795

1,290

1,535

1,857

 Investment securities - held-to-maturity 

3,765,483

3,759,706

3,787,076

3,819,682

1,556,825

 Investment securities - available-for-sale 

3,755,956

3,852,854

3,937,543

4,341,647

6,640,069

 Mortgage loans held for sale 

4,244

3,486

12,759

14,437

18,206

 Other loans held for sale 

-

-

2,292

16,375

-

 Loans: 






 Loans 

16,555,098

16,142,124

15,607,135

15,110,344

12,028,593

 Allowance for credit losses on loans 

(206,557)

(196,955)

(197,589)

(212,611)

(178,924)

 Net loans 

16,348,541

15,945,169

15,409,546

14,897,733

11,849,669

 Premises and equipment 

564,497

548,741

549,932

553,062

486,531

 Foreclosed assets and other real estate owned 

2,721

2,887

3,612

4,084

5,118

 Interest receivable 

98,775

102,892

86,637

82,332

69,357

 Bank owned life insurance 

493,191

491,340

488,364

486,355

448,011

 Goodwill 

1,320,799

1,319,598

1,309,000

1,310,528

1,147,007

 Other intangible assets 

124,854

128,951

133,059

137,285

102,748

 Other assets 

579,139

622,520

675,554

588,707

469,853

 Total assets 

$ 27,583,446

$ 27,461,061

$ 27,076,074

$ 27,218,609

$ 24,482,268







 LIABILITIES AND STOCKHOLDERS' EQUITY 






 Deposits: 






 Noninterest bearing transaction accounts 

$   5,489,434

$   6,016,651

$   6,218,283

$   6,057,186

$   5,223,862

 Interest bearing transaction accounts and savings deposits 

11,283,584

11,762,885

12,103,994

12,816,198

12,105,948

 Time deposits 

5,678,757

4,768,558

3,826,415

3,162,479

2,062,612

         Total deposits 

22,451,775

22,548,094

22,148,692

22,035,863

19,392,422

 Federal funds purchased and securities sold 






 under agreements to repurchase 

142,862

160,403

168,513

155,101

196,828

 Other borrowings 

1,023,826

859,296

964,772

1,060,244

1,337,243

 Subordinated notes and debentures 

366,027

365,989

365,951

421,693

384,242

 Accrued interest and other liabilities 

259,055

257,917

270,995

285,813

209,926

 Total liabilities 

24,243,545

24,191,699

23,918,923

23,958,714

21,520,661







 Stockholders' equity: 






 Preferred stock 

-

-

-

-

-

 Common stock 

1,273

1,270

1,269

1,288

1,125

 Surplus 

2,533,589

2,530,066

2,527,153

2,569,060

2,150,453

 Undivided profits 

1,275,720

1,255,586

1,196,459

1,139,975

1,136,990

 Accumulated other comprehensive (loss) income

(470,681)

(517,560)

(567,730)

(450,428)

(326,961)

 Total stockholders' equity 

3,339,901

3,269,362

3,157,151

3,259,895

2,961,607

 Total liabilities and stockholders' equity 

$ 27,583,446

$ 27,461,061

$ 27,076,074

$ 27,218,609

$ 24,482,268

 

 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) 

2023

2022

2022

2022

2022

($ in thousands, except per share data)






 INTEREST INCOME 






    Loans (including fees) 

$ 227,498

$ 216,091

$ 187,347

$ 163,578

$  127,176

    Interest bearing balances due from banks and federal funds sold 

2,783

2,593

1,141

1,117

649

    Investment securities 

48,774

45,689

40,954

37,848

33,712

    Mortgage loans held for sale 

82

152

178

200

190

    Other loans held for sale 

-

59

998

2,063

-

            TOTAL INTEREST INCOME 

279,137

264,584

230,618

204,806

161,727

 INTEREST EXPENSE 






    Time deposits 

39,538

22,434

8,204

2,875

2,503

    Other deposits 

47,990

34,615

17,225

6,879

4,314

    Federal funds purchased and securities 






      sold under agreements to repurchase 

323

449

305

119

68

    Other borrowings 

8,848

9,263

6,048

4,844

4,779

    Subordinated notes and debentures 

4,603

4,797

5,251

4,990

4,457

            TOTAL INTEREST EXPENSE 

101,302

71,558

37,033

19,707

16,121

 NET INTEREST INCOME 

177,835

193,026

193,585

185,099

145,606

 PROVISION FOR CREDIT LOSSES 






    Provision for credit losses on loans 

10,916

26

(15,897)

30,406

(19,914)

    Provision for credit losses on unfunded commitments 

-

-

16,000

3,453

-

    Provision for credit losses on investment securities - AFS 

12,800

-

-

-

-

    Provision for credit losses on investment securities - HTM 

500

-

-

-

-

            TOTAL PROVISION FOR CREDIT LOSSES 

24,216

26

103

33,859

(19,914)

 NET INTEREST INCOME AFTER PROVISION 






    FOR CREDIT LOSSES 

153,619

193,000

193,482

151,240

165,520

 NONINTEREST INCOME 






    Service charges on deposit accounts 

12,437

11,892

12,560

11,379

10,696

    Debit and credit card fees 

7,952

7,845

7,685

8,224

7,449

    Wealth management fees 

7,365

8,151

8,562

7,214

7,968

    Mortgage lending income 

1,570

1,139

2,593

2,240

4,550

    Bank owned life insurance income 

2,973

2,975

2,902

2,563

2,706

    Other service charges and fees (includes insurance income) 

2,282

2,023

2,085

1,871

1,637

    Gain (loss) on sale of securities 

-

(52)

(22)

(150)

(54)

    Gain on insurance settlement 

-

4,074

-

-

-

    Other income 

11,256

6,600

6,658

6,837

7,266

            TOTAL NONINTEREST INCOME 

45,835

44,647

43,023

40,178

42,218

 NONINTEREST EXPENSE 






    Salaries and employee benefits 

77,038

73,018

71,923

74,135

67,906

    Occupancy expense, net 

11,578

11,620

11,674

11,004

10,023

    Furniture and equipment expense 

5,051

5,392

5,394

5,104

4,775

    Other real estate and foreclosure expense 

186

350

168

142

343

    Deposit insurance 

4,893

3,680

3,278

2,812

1,838

    Merger-related costs 

1,396

35

1,422

19,133

1,886

    Other operating expenses 

43,086

48,480

45,084

44,483

41,646

            TOTAL NONINTEREST EXPENSE 

143,228

142,575

138,943

156,813

128,417

 NET INCOME BEFORE INCOME TAXES 

56,226

95,072

97,562

34,605

79,321

    Provision for income taxes 

10,637

11,812

16,959

7,151

14,226

 NET INCOME 

45,589

83,260

80,603

27,454

65,095

    Preferred stock dividends 

-

-

-

-

-

 NET INCOME AVAILABLE TO COMMON STOCKHOLDERS 

$   45,589

$   83,260

$   80,603

$   27,454

$    65,095

 BASIC EARNINGS PER SHARE 

$       0.36

$       0.66

$       0.63

$       0.21

$        0.58

 DILUTED EARNINGS PER SHARE 

$       0.36

$       0.65

$       0.63

$       0.21

$        0.58

 

 Simmons First National Corporation 




 SFNC 

 Consolidated Risk-Based Capital 






 For the Quarters Ended 

 Mar 31 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 (Unaudited) 

2023

2022

2022

2022

2022

($ in thousands)






Tier 1 capital






   Stockholders' equity

$   3,339,901

$   3,269,362

$   3,157,151

$   3,259,895

$   2,961,607

   CECL transition provision (1)

61,746

92,619

92,619

92,619

92,619

   Disallowed intangible assets, net of deferred tax

(1,410,141)

(1,412,667)

(1,416,453)

(1,423,323)

(1,224,691)

   Unrealized loss (gain) on AFS securities

470,681

517,560

567,730

450,428

326,961

      Total Tier 1 capital

2,462,187

2,466,874

2,401,047

2,379,619

2,156,496







Tier 2 capital






   Subordinated notes and debentures

366,027

365,989

365,951

421,693

384,242

   Qualifying allowance for loan losses and






      reserve for unfunded commitments

173,077

115,627

116,257

114,733

78,057

      Total Tier 2 capital

539,104

481,616

482,208

536,426

462,299

      Total risk-based capital

$   3,001,291

$   2,948,490

$   2,883,255

$   2,916,045

$   2,618,795







Risk weighted assets

$ 20,748,605

$ 20,738,727

$ 20,470,918

$ 19,669,149

$ 15,953,622







Adjusted average assets for leverage ratio

$ 26,632,691

$ 26,407,061

$ 25,986,938

$ 25,807,113

$ 23,966,206







Ratios at end of quarter






   Equity to assets

12.11 %

11.91 %

11.66 %

11.98 %

12.10 %

   Tangible common equity to tangible assets (2)

7.25 %

7.00 %

6.69 %

7.03 %

7.37 %

   Common equity Tier 1 ratio (CET1)

11.87 %

11.90 %

11.73 %

12.10 %

13.52 %

   Tier 1 leverage ratio

9.24 %

9.34 %

9.24 %

9.22 %

9.00 %

   Tier 1 risk-based capital ratio

11.87 %

11.90 %

11.73 %

12.10 %

13.52 %

   Total risk-based capital ratio

14.47 %

14.22 %

14.08 %

14.83 %

16.42 %







(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) 

2023

2022

2022

2022

2022

($ in thousands)






Investment Securities - End of Period






 Held-to-Maturity 






    U.S. Government agencies 

$      451,052

$      448,012

$      447,400

$      446,789

$    232,670

    Mortgage-backed securities 

1,201,418

1,190,781

1,214,882

1,244,713

112,496

    State and political subdivisions 

1,859,970

1,860,992

1,865,203

1,868,924

1,194,459

    Other securities 

253,043

259,921

259,591

259,256

17,200

       Total held-to-maturity (net of credit losses) 

3,765,483

3,759,706

3,787,076

3,819,682

1,556,825

 Available-for-Sale 






    U.S. Treasury 

$          2,220

$          2,197

$          2,191

$          1,441

$              -

    U.S. Government agencies 

181,843

184,279

188,060

198,333

333,231

    Mortgage-backed securities 

2,433,530

2,542,902

2,670,348

2,963,934

4,166,108

    State and political subdivisions 

895,896

871,074

822,509

915,255

1,653,694

    Other securities 

242,467

252,402

254,435

262,684

487,036

       Total available-for-sale (net of credit losses) 

3,755,956

3,852,854

3,937,543

4,341,647

6,640,069

       Total investment securities (net of credit losses) 

$   7,521,439

$   7,612,560

$   7,724,619

$   8,161,329

$ 8,196,894

       Fair value - HTM investment securities 

$   3,148,976

$   3,063,233

$   2,984,040

$   3,278,962

$ 1,307,058

 

 Simmons First National Corporation 




 SFNC 

 Consolidated Loans 






 For the Quarters Ended 

 Mar 31 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 (Unaudited) 

2023

2022

2022

2022

2022

($ in thousands)






Loan Portfolio - End of Period






 Consumer: 






    Credit cards 

$      188,590

$      196,928

$      192,559

$      189,684

$      184,372

    Other consumer 

142,817

152,882

180,604

204,692

180,602

 Total consumer 

331,407

349,810

373,163

394,376

364,974

 Real Estate: 






    Construction 

2,777,122

2,566,649

2,372,294

2,082,688

1,423,445

    Single-family residential 

2,589,831

2,546,115

2,467,008

2,357,942

2,042,978

    Other commercial real estate 

7,520,964

7,468,498

7,249,891

7,082,055

5,762,567

 Total real estate 

12,887,917

12,581,262

12,089,193

11,522,685

9,228,990

 Commercial: 






    Commercial 

2,669,731

2,632,290

2,525,218

2,612,256

2,016,405

    Agricultural 

220,641

205,623

263,539

218,743

150,465

 Total commercial 

2,890,372

2,837,913

2,788,757

2,830,999

2,166,870

 Other 

445,402

373,139

356,022

362,284

267,759

       Total loans 

$ 16,555,098

$ 16,142,124

$ 15,607,135

$ 15,110,344

$ 12,028,593

 

 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) 

2023

2022

2022

2022

2022

($ in thousands)






Allowance for Credit Losses on Loans






 Beginning balance 

$   196,955

$  197,589

$  212,611

$ 178,924

$   205,332







 Day 1 PCD allowance from acquisitions: 






    Spirit of Texas (04/08/2022) 

-

4,523

1,057

4,043

-

       Total Day 1 PCD allowance 

-

4,523

1,057

4,043

-







 Loans charged off: 






    Credit cards 

1,076

1,035

903

1,004

920

    Other consumer 

456

439

505

518

414

    Real estate 

1,204

3,392

130

115

485

    Commercial 

413

5,389

1,874

688

6,319

       Total loans charged off 

3,149

10,255

3,412

2,325

8,138







 Recoveries of loans previously charged off: 






    Credit cards 

234

251

250

249

274

    Other consumer 

240

230

278

302

387

    Real estate 

294

4,117

1,982

391

426

    Commercial 

1,067

475

720

621

557

       Total recoveries 

1,835

5,073

3,230

1,563

1,644

    Net loans charged off 

1,314

5,182

182

762

6,494

 Provision for credit losses on loans 

10,916

25

(15,897)

30,406

(19,914)

 Balance, end of quarter 

$   206,557

$  196,955

$  197,589

$ 212,611

$   178,924







Nonperforming assets






 Nonperforming loans: 






    Nonaccrual loans 

$     63,218

$    58,434

$    57,534

$   62,670

$     64,096

    Loans past due 90 days or more 

437

507

242

904

240

       Total nonperforming loans 

63,655

58,941

57,776

63,574

64,336

 Other nonperforming assets: 






   Foreclosed assets and other real estate owned

2,721

2,887

3,612

4,084

5,118

    Other nonperforming assets 

5,012

644

1,146

2,314

1,479

       Total other nonperforming assets 

7,733

3,531

4,758

6,398

6,597

          Total nonperforming assets 

$     71,388

$    62,472

$    62,534

$   69,972

$     70,933

 Performing FDMs (modifications to borrowers 






   experiencing financial difficulty) 

$       2,183

$      1,849

$      1,869

$     2,655

$       3,424







Ratios






 Allowance for credit losses on loans to total loans 

1.25 %

1.22 %

1.27 %

1.41 %

1.49 %

 Allowance for credit losses to nonperforming loans 

324 %

334 %

342 %

334 %

278 %

 Nonperforming loans to total loans 

0.38 %

0.37 %

0.37 %

0.42 %

0.53 %

 Nonperforming assets (including performing FDMs) 






   to total assets 

0.27 %

0.23 %

0.24 %

0.27 %

0.30 %

 Nonperforming assets to total assets 

0.26 %

0.23 %

0.23 %

0.26 %

0.29 %

 Annualized net charge offs to average loans (QTD) 

0.03 %

0.13 %

0.00 %

0.02 %

0.22 %

 Annualized net charge offs to average loans (YTD) 

0.03 %

0.09 %

0.07 %

0.11 %

0.22 %

 Annualized net credit card charge offs to 






   average credit card loans 

1.69 %

1.52 %

1.30 %

1.55 %

1.39 %

 

 Simmons First National Corporation 








 SFNC 

 Consolidated - Average Balance Sheet and Net Interest Income Analysis 





 For the Quarters Ended 










 (Unaudited) 













 Three Months Ended
Mar 2023 


 Three Months Ended
Dec 2022 


 Three Months Ended
Mar 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

$      315,307

$      2,783

3.58 %


$      361,856

$      2,593

2.84 %


$   1,728,694

$         649

0.15 %

   Investment securities - taxable

4,930,945

32,804

2.70 %


5,085,960

29,645

2.31 %


5,688,306

18,148

1.29 %

   Investment securities - non-taxable (FTE)

2,624,642

21,522

3.33 %


2,582,050

22,123

3.40 %


2,844,777

20,937

2.98 %

   Mortgage loans held for sale

5,470

82

6.08 %


8,601

152

7.01 %


27,633

190

2.79 %

   Other loans held for sale

-

-

0.00 %


1,704

59

13.74 %


-

-

0.00 %

   Loans - including fees (FTE)

16,329,761

228,257

5.67 %


15,929,957

216,782

5.40 %


11,895,805

127,405

4.34 %

      Total interest earning assets (FTE)

24,206,125

285,448

4.78 %


23,970,128

271,354

4.49 %


22,185,215

167,329

3.06 %

   Non-earning assets

3,282,607




3,210,447




2,640,984



     Total assets

$ 27,488,732




$ 27,180,575




$ 24,826,199















LIABILITIES AND STOCKHOLDERS' EQUITY











Interest bearing liabilities:












   Interest bearing transaction and












     savings accounts

$ 11,722,591

$    47,990

1.66 %


$ 11,859,322

$    34,615

1.16 %


$ 12,083,516

$      4,314

0.14 %

   Time deposits

5,155,055

39,538

3.11 %


4,212,271

22,434

2.11 %


2,241,123

2,503

0.45 %

      Total interest bearing deposits

16,877,646

87,528

2.10 %


16,071,593

57,049

1.41 %


14,324,639

6,817

0.19 %

   Federal funds purchased and securities












     sold under agreement to repurchase

148,673

323

0.88 %


178,948

449

1.00 %


218,186

68

0.13 %

   Other borrowings

787,783

8,848

4.56 %


923,189

9,263

3.98 %


1,337,654

4,779

1.45 %

   Subordinated notes and debentures

366,009

4,603

5.10 %


365,971

4,797

5.20 %


384,187

4,457

4.70 %

      Total interest bearing liabilities

18,180,111

101,302

2.26 %


17,539,701

71,558

1.62 %


16,264,666

16,121

0.40 %

Noninterest bearing liabilities:












   Noninterest bearing deposits

5,642,779




6,161,732




5,184,828



   Other liabilities

295,191




264,230




207,597



      Total liabilities

24,118,081




23,965,663




21,657,091



Stockholders' equity

3,370,651




3,214,912




3,169,108



      Total liabilities and stockholders' equity

$ 27,488,732




$ 27,180,575




$ 24,826,199



Net interest income (FTE)


$  184,146




$  199,796




$  151,208


Net interest spread (FTE)



2.52 %




2.87 %




2.66 %

Net interest margin (FTE)



3.09 %




3.31 %




2.76 %

 

 Simmons First National Corporation 




 SFNC 

 Consolidated - Selected Financial Data 





 For the Quarters Ended 

 Mar 31 

 Dec 31 

 Sep 30 

 Jun 30 

 Mar 31 

 (Unaudited) 

2023

2022

2022

2022

2022

($ in thousands, except share data)






QUARTER-TO-DATE






Financial Highlights - As Reported






Net Income

$        45,589

$        83,260

$        80,603

$        27,454

$        65,095

Diluted earnings per share

0.36

0.65

0.63

0.21

0.58

Return on average assets

0.67 %

1.22 %

1.19 %

0.41 %

1.06 %

Return on average common equity

5.49 %

10.27 %

9.71 %

3.28 %

8.33 %

Return on tangible common equity (non-GAAP) (1)

10.25 %

19.29 %

17.99 %

6.28 %

14.31 %

Net interest margin (FTE)

3.09 %

3.31 %

3.34 %

3.24 %

2.76 %

Efficiency ratio (2)

62.28 %

58.33 %

57.22 %

67.77 %

66.39 %

FTE adjustment

6,311

6,770

6,203

6,096

5,602

Average diluted shares outstanding

127,516,478

127,505,996

128,336,422

128,720,078

113,026,911

Shares repurchased under plan

-

-

1,883,713

2,035,324

513,725

Average price of shares repurchased

-

-

23.91

24.59

31.25

Cash dividends declared per common share

0.200

0.190

0.190

0.190

0.190

Accretable yield on acquired loans

2,579

4,473

5,834

9,898

3,703

Financial Highlights - Adjusted (non-GAAP) (1)






Adjusted earnings

$        47,343

$        81,093

$        82,281

$        68,102

$        67,159

Adjusted diluted earnings per share

0.37

0.64

0.64

0.53

0.59

Adjusted return on average assets

0.70 %

1.18 %

1.21 %

1.02 %

1.10 %

Adjusted return on average common equity

5.70 %

10.01 %

9.92 %

8.13 %

8.59 %

Adjusted return on tangible common equity

10.62 %

18.81 %

18.35 %

14.65 %

14.74 %

Adjusted efficiency ratio (2)

59.38 %

56.97 %

54.41 %

56.74 %

62.95 %

YEAR-TO-DATE






Financial Highlights - GAAP






Net Income

$        45,589

$      256,412

$      173,152

$        92,549

$        65,095

Diluted earnings per share

0.36

2.06

1.40

0.77

0.58

Return on average assets

0.67 %

0.97 %

0.88 %

0.72 %

1.06 %

Return on average common equity

5.49 %

7.87 %

7.07 %

5.71 %

8.33 %

Return on tangible common equity (non-GAAP) (1)

10.25 %

14.33 %

12.77 %

10.24 %

14.31 %

Net interest margin (FTE)

3.09 %

3.17 %

3.12 %

3.01 %

2.76 %

Efficiency ratio (2)

62.28 %

62.14 %

63.54 %

67.14 %

66.39 %

FTE adjustment

6,311

24,671

17,901

11,698

5,602

Average diluted shares outstanding

127,516,478

124,470,184

123,387,503

120,826,798

113,026,911

Cash dividends declared per common share

0.200

0.760

0.570

0.380

0.190

Financial Highlights - Adjusted (non-GAAP) (1)






Adjusted earnings

$        47,343

$      298,635

$      217,542

$      135,261

$        67,159

Adjusted diluted earnings per share

0.37

2.40

1.76

1.12

0.59

Adjusted return on average assets

0.70 %

1.13 %

1.11 %

1.06 %

1.10 %

Adjusted return on average common equity

5.70 %

9.16 %

8.88 %

8.35 %

8.59 %

Adjusted return on tangible common equity

10.62 %

16.59 %

15.89 %

14.70 %

14.74 %

Adjusted efficiency ratio (2)

59.38 %

57.50 %

57.69 %

59.56 %

62.95 %

END OF PERIOD






Book value per share

$          26.24

$          25.73

$          24.87

$          25.31

$          26.32

Tangible book value per share

14.88

14.33

13.51

14.07

15.22

Shares outstanding

127,282,192

127,046,654

126,943,467

128,787,764

112,505,555

Full-time equivalent employees

3,189

3,236

3,206

3,233

2,893

Total number of financial centers

231

230

230

233

197







 (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) 

2023

2022

2022

2022

2022

 (in thousands, except per share data) 






QUARTER-TO-DATE






Net income available to common stockholders

$     45,589

$    83,260

$    80,603

$   27,454

$     65,095

 Certain items: 






(Gain) loss from early retirement of TruPS

-

-

365

-

-

Gain on sale of intellectual property

-

-

(750)

-

-

Gain on insurance settlement

-

(4,074)

-

-

-

Donation to Simmons First Foundation

-

-

-

1,738

-

Merger related costs

1,396

35

1,422

19,133

1,886

Branch right sizing (net)

979

1,104

1,235

380

909

Day 2 CECL provision

-

-

-

33,779

-

Tax effect (1)

(621)

768

(594)

(14,382)

(731)

    Certain items, net of tax 

1,754

(2,167)

1,678

40,648

2,064

 Adjusted earnings (non-GAAP) 

$     47,343

$    81,093

$    82,281

$   68,102

$     67,159







 Diluted earnings per share 

$         0.36

$        0.65

$        0.63

$       0.21

$         0.58

 Certain items: 






(Gain) loss from early retirement of TruPS

-

-

-

-

-

Gain on sale of intellectual property

-

-

(0.01)

-

-

Gain on insurance settlement

-

(0.03)




Donation to Simmons First Foundation

-

-

-

0.01

-

Merger related costs

0.01

-

0.01

0.15

0.01

Branch right sizing (net)

0.01

0.01

0.01

-

0.01

Day 2 CECL provision

-

-

-

0.27


Tax effect (1)

(0.01)

0.01

-

(0.11)

(0.01)

    Certain items, net of tax 

0.01

(0.01)

0.01

0.32

0.01

 Adjusted diluted earnings per share (non-GAAP) 

$         0.37

$        0.64

$        0.64

$       0.53

$         0.59







 (1) Effective tax rate of 26.135%. 












Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)










QUARTER-TO-DATE






    Noninterest income 

$     45,835

$    44,647

$    43,023

$   40,178

$     42,218

Certain noninterest income items (1)






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

-

-

65

88

-

    Adjusted noninterest income (non-GAAP) 

$     45,835

$    40,573

$    42,703

$   40,266

$     42,218







    Other income 

$     11,256

$      6,600

$      6,658

$     6,837

$       7,266

Certain other income items (1)






(Gain) loss from early retirement of TruPS

-

-

365

-

-

Gain on sale of intellectual property

-

-

(750)

-

-

Branch right sizing income

-

-

65

88

-

    Adjusted other income (non-GAAP) 

$     11,256

$      6,600

$      6,338

$     6,925

$       7,266







    Noninterest expense 

$   143,228

$  142,575

$  138,943

$ 156,813

$   128,417

Certain noninterest expense items (1)






Merger related costs

(1,396)

(35)

(1,422)

(19,133)

(1,886)

Donation to Simmons First Foundation

-

-

-

(1,738)

-

Branch right sizing expense

(979)

(1,104)

(1,170)

(292)

(909)

    Adjusted noninterest expense (non-GAAP) 

$   140,853

$  141,436

$  136,351

$ 135,650

$   125,622







    Other operating expenses 

$     43,086

$    48,480

$    45,084

$   44,483

$     41,646

Certain other operating expenses items (1)






Donation to Simmons First Foundation

-

-

-

(1,738)

-

Branch right sizing expense

(816)

(953)

(973)

(7)

(717)

    Adjusted other operating expenses (non-GAAP) 

$     42,270

$    47,527

$    44,111

$   42,738

$     40,929







 (1) Certain items include gain from early retirement of trust preferred securities, gain on sale of intellectual property, gain on insurance settlement, donation to Simmons First Foundation, merger related costs, branch right sizing costs and Day 2 CECL provision. 

 

 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) 

2023

2022

2022

2022

2022

 (in thousands, except per share data) 






YEAR-TO-DATE






Net income available to common stockholders

$     45,589

$  256,412

$  173,152

$   92,549

$     65,095

 Certain items: 






(Gain) loss from early retirement of TruPS

-

365

365

-

-

Gain on sale of intellectual property

-

(750)

(750)

-

-

Gain on insurance settlement

-

(4,074)

-

-

-

Donation to Simmons First Foundation

-

1,738

1,738

1,738

-

Merger related costs

1,396

22,476

22,441

21,019

1,886

Branch right sizing (net)

979

3,628

2,524

1,289

909

Day 2 CECL provision

-

33,779

33,779

33,779

-

Tax effect (1)

(621)

(14,939)

(15,707)

(15,113)

(731)

    Certain items, net of tax 

1,754

42,223

44,390

42,712

2,064

 Adjusted earnings (non-GAAP) 

$     47,343

$  298,635

$  217,542

$ 135,261

$     67,159







 Diluted earnings per share 

$         0.36

$        2.06

$        1.40

$       0.77

$         0.58

 Certain items: 






(Gain) loss from early retirement of TruPS

-

-

-

-

-

Gain on sale of intellectual property

-

(0.01)

(0.01)

-

-

Gain on insurance settlement

-

(0.03)

-

-

-

Donation to Simmons First Foundation

-

0.01

0.01

0.01

-

Merger related costs

0.01

0.18

0.18

0.17

0.01

Branch right sizing (net)

0.01

0.03

0.02

0.01

0.01

Day 2 CECL provision

-

0.28

0.28

0.28


Tax effect (1)

(0.01)

(0.12)

(0.12)

(0.12)

(0.01)

    Certain items, net of tax 

0.01

0.34

0.36

0.35

0.01

 Adjusted diluted earnings per share (non-GAAP) 

$         0.37

$        2.40

$        1.76

$       1.12

$         0.59







 (1) Effective tax rate of 26.135%. 












Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)










YEAR-TO-DATE






    Noninterest income 

$     45,835

$  170,066

$  125,419

$   82,396

$     42,218

Certain noninterest income items (1)






Gain on insurance settlement

-

(4,074)

-

-

-

(Gain) loss from early retirement of TruPS

-

365

365

-

-

Gain on sale of intellectual property

-

(750)

(750)

-

-

Branch right sizing income

-

153

153

88

-

    Adjusted noninterest income (non-GAAP) 

$     45,835

$  165,760

$  125,187

$   82,484

$     42,218







    Other income 

$     11,256

$    27,361

$    20,761

$   14,103

$       7,266

Certain other income items (1)






(Gain) loss from early retirement of TruPS

-

365

365

-

-

Gain on sale of intellectual property

-

(750)

(750)

-

-

Branch right sizing income

-

153

153

88

-

    Adjusted other income (non-GAAP) 

$     11,256

$    27,129

$    20,529

$   14,191

$       7,266







    Noninterest expense 

$   143,228

$  566,748

$  424,173

$ 285,230

$   128,417

Certain noninterest expense items (1)






Merger related costs

(1,396)

(22,476)

(22,441)

(21,019)

(1,886)

Donation to Simmons First Foundation

-

(1,738)

(1,738)

(1,738)

-

Branch right sizing expense

(979)

(3,475)

(2,371)

(1,201)

(909)

    Adjusted noninterest expense (non-GAAP) 

$   140,853

$  539,059

$  397,623

$ 261,272

$   125,622







    Other operating expenses 

$     43,086

$  179,693

$  131,213

$   86,129

$     41,646

Certain other operating expenses items (1)






Donation to Simmons First Foundation

-

(1,738)

(1,738)

(1,738)

-

Branch right sizing expense

(816)

(2,650)

(1,697)

(724)

(717)

    Adjusted other operating expenses (non-GAAP) 

$     42,270

$  175,305

$  127,778

$   83,667

$     40,929







 (1) Certain items include gain from early retirement of trust preferred securities, gain on sale of intellectual property, gain on insurance settlement, donation to Simmons First Foundation, merger related costs, branch right sizing costs and Day 2 CECL provision. 

 

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) 

2023

2022

2022

2022

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

$   3,339,901

$   3,269,362

$   3,157,151

$   3,259,895

$   2,961,607

Intangible assets:






   Goodwill

(1,320,799)

(1,319,598)

(1,309,000)

(1,310,528)

(1,147,007)

   Other intangible assets

(124,854)

(128,951)

(133,059)

(137,285)

(102,748)

Total intangibles

(1,445,653)

(1,448,549)

(1,442,059)

(1,447,813)

(1,249,755)

Tangible common stockholders' equity

$   1,894,248

$   1,820,813

$   1,715,092

$   1,812,082

$   1,711,852







Total assets

$ 27,583,446

$ 27,461,061

$ 27,076,074

$ 27,218,609

$ 24,482,268

Intangible assets:






   Goodwill

(1,320,799)

(1,319,598)

(1,309,000)

(1,310,528)

(1,147,007)

   Other intangible assets

(124,854)

(128,951)

(133,059)

(137,285)

(102,748)

Total intangibles

(1,445,653)

(1,448,549)

(1,442,059)

(1,447,813)

(1,249,755)

Tangible assets

$ 26,137,793

$ 26,012,512

$ 25,634,015

$ 25,770,796

$ 23,232,513







Ratio of common equity to assets

12.11 %

11.91 %

11.66 %

11.98 %

12.10 %

Ratio of tangible common equity to tangible assets

7.25 %

7.00 %

6.69 %

7.03 %

7.37 %







Calculation of Tangible Book Value per Share












Total common stockholders' equity

$   3,339,901

$   3,269,362

$   3,157,151

$   3,259,895

$   2,961,607

Intangible assets:






   Goodwill

(1,320,799)

(1,319,598)

(1,309,000)

(1,310,528)

(1,147,007)

   Other intangible assets

(124,854)

(128,951)

(133,059)

(137,285)

(102,748)

Total intangibles

(1,445,653)

(1,448,549)

(1,442,059)

(1,447,813)

(1,249,755)

Tangible common stockholders' equity

$   1,894,248

$   1,820,813

$   1,715,092

$   1,812,082

$   1,711,852

Shares of common stock outstanding

127,282,192

127,046,654

126,943,467

128,787,764

112,505,555

Book value per common share

$          26.24

$          25.73

$          24.87

$          25.31

$          26.32

Tangible book value per common share

$          14.88

$          14.33

$          13.51

$          14.07

$          15.22







Calculation of Uninsured Deposit Coverage Ratio












Uninsured deposits at Simmons Bank

$   5,896,752

$   7,267,220



$   6,414,459

Less: Intercompany eliminations

628,592

527,542



504,306

Total uninsured deposits

$   5,268,160

$   6,739,678



$   5,910,153







FHLB borrowing availability

$   5,574,000

$   5,442,000



$   3,597,000

Unpledged securities

3,000,000

3,180,000



4,335,000

Fed funds lines, Fed discount window and






  Bank Term Funding Program

2,206,000

1,982,000



426,000

Additional liquidity sources

$ 10,780,000

$ 10,604,000



$   8,358,000







Uninsured deposit coverage ratio

2.0

1.6



1.4

 

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) 

2023

2022

2022

2022

2022

($ in thousands)






Calculation of Adjusted Return on Average Assets












Net income available to common stockholders

$        45,589

$        83,260

$        80,603

$        27,454

$        65,095

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)

-

-

-

Donation to Simmons First Foundation

-

-

-

1,738

-

Merger related costs

1,396

35

1,422

19,133

1,886

Branch right sizing (net)

979

1,104

1,235

380

909

Day 2 CECL provision

-

-

-

33,779

-

Tax effect of certain items (2)

(621)

768

(594)

(14,382)

(731)

Adjusted earnings (non-GAAP)

$        47,343

$        81,093

$        82,281

$        68,102

$        67,159







Average total assets

$ 27,488,732

$ 27,180,575

$ 26,868,731

$ 26,769,032

$ 24,826,199







Return on average assets

0.67 %

1.22 %

1.19 %

0.41 %

1.06 %

Adjusted return on average assets (non-GAAP)

0.70 %

1.18 %

1.21 %

1.02 %

1.10 %







Calculation of Return on Tangible Common Equity












Net income available to common stockholders

$        45,589

$        83,260

$        80,603

$        27,454

$        65,095

Amortization of intangibles, net of taxes

3,026

3,035

3,121

3,025

2,575

Total income available to common stockholders

$        48,615

$        86,295

$        83,724

$        30,479

$        67,670

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)

-

-

-

Donation to Simmons First Foundation

-

-

-

1,738

-

Merger related costs

1,396

35

1,422

19,133

1,886

Branch right sizing (net)

979

1,104

1,235

380

909

Day 2 CECL provision

-

-

-

33,779

-

Tax effect of certain items (2)

(621)

768

(594)

(14,382)

(731)

Adjusted earnings (non-GAAP)

47,343

81,093

82,281

68,102

67,159

Amortization of intangibles, net of taxes

3,026

3,035

3,121

3,025

2,575

Total adjusted earnings available to common stockholders (non-GAAP)

$        50,369

$        84,128

$        85,402

$        71,127

$        69,734







Average common stockholders' equity

$   3,370,651

$   3,214,912

$   3,292,071

$   3,361,703

$   3,169,108

Average intangible assets:






   Goodwill

(1,319,624)

(1,309,124)

(1,309,804)

(1,299,821)

(1,146,034)

   Other intangibles

(127,394)

(131,229)

(135,718)

(114,195)

(104,905)

Total average intangibles

(1,447,018)

(1,440,353)

(1,445,522)

(1,414,016)

(1,250,939)

Average tangible common stockholders' equity (non-GAAP)

$   1,923,633

$   1,774,559

$   1,846,549

$   1,947,687

$   1,918,169







Return on average common equity

5.49 %

10.27 %

9.71 %

3.28 %

8.33 %

Return on tangible common equity

10.25 %

19.29 %

17.99 %

6.28 %

14.31 %

Adjusted return on average common equity (non-GAAP)

5.70 %

10.01 %

9.92 %

8.13 %

8.59 %

Adjusted return on tangible common equity (non-GAAP)

10.62 %

18.81 %

18.35 %

14.65 %

14.74 %







Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)












Noninterest expense (efficiency ratio numerator)

$      143,228

$      142,575

$      138,943

$      156,813

$      128,417

Certain noninterest expense items (non-GAAP)






Merger related costs

(1,396)

(35)

(1,422)

(19,133)

(1,886)

Donation to Simmons First Foundation

-

-

-

(1,738)

-

Branch right sizing expense

(979)

(1,104)

(1,170)

(292)

(909)

Other real estate and foreclosure expense adjustment

(186)

(350)

(168)

(142)

(343)

Amortization of intangibles adjustment

(4,096)

(4,108)

(4,225)

(4,096)

(3,486)

Adjusted efficiency ratio numerator

$      136,571

$      136,978

$      131,958

$      131,412

$      121,793







Net interest income

$      177,835

$      193,026

$      193,585

$      185,099

$      145,606

Noninterest income

45,835

44,647

43,023

40,178

42,218

Fully tax-equivalent adjustment (effective tax rate of 26.135%)

6,311

6,770

6,203

6,096

5,602

Efficiency ratio denominator

229,981

244,443

242,811

231,373

193,426







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

-

-

65

88

-

(Gain) loss on sale of securities

-

52

22

150

54

Adjusted efficiency ratio denominator

$      229,981

$      240,421

$      242,513

$      231,611

$      193,480







Efficiency ratio (1)

62.28 %

58.33 %

57.22 %

67.77 %

66.39 %

Adjusted efficiency ratio (non-GAAP) (1)

59.38 %

56.97 %

54.41 %

56.74 %

62.95 %







 (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) 

2023

2022

2022

2022

2022

($ in thousands)












Calculation of Pre-Provision Net Revenue (PPNR)












Net interest income

$      177,835

$      193,026

$      193,585

$      185,099

$      145,606

Noninterest income

45,835

44,647

43,023

40,178

42,218

Revenue

223,670

237,673

236,608

225,277

187,824

Less: Gain (loss) on sale of securities

-

(52)

(22)

(150)

(54)

Less: Noninterest expense

143,228

142,575

138,943

156,813

128,417

Pre-Provision Net Revenue (PPNR)

$        80,442

$        95,150

$        97,687

$        68,614

$        59,461







Calculation of Adjusted Pre-Provision Net Revenue












Pre-Provision Net Revenue (PPNR)

$        80,442

$        95,150

$        97,687

$        68,614

$        59,461

Plus: Loss from early retirement of TruPS

-

-

365

-

-

Less: Gain on sale of intellectual property

-

-

(750)

-

-

Less: Gain on insurance settlement

-

(4,074)

-

-

-

Plus: Donation to Simmons First Foundation

-

-

-

1,738

-

Plus: Merger related costs

1,396

35

1,422

19,133

1,886

Plus: Branch right sizing costs

979

1,104

1,235

380

909

Adjusted Pre-Provision Net Revenue

$        82,817

$        92,215

$        99,959

$        89,865

$        62,256

 

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) 

2023

2022

2022

2022

2022

($ in thousands)






Calculation of Adjusted Return on Average Assets












Net income available to common stockholders

$        45,589

$      256,412

$      173,152

$        92,549

$        65,095

Certain items (non-GAAP)






(Gain) loss from early retirement of TruPS

-

365

365

-

-

Gain on sale of intellectual property

-

(750)

(750)

-

-

Gain on insurance settlement

-

(4,074)

-

-

-

Donation to Simmons First Foundation

-

1,738

1,738

1,738

-

Merger related costs

1,396

22,476

22,441

21,019

1,886

Branch right sizing (net)

979

3,628

2,524

1,289

909

Day 2 CECL provision

-

33,779

33,779

33,779

-

Tax effect of certain items (2)

(621)

(14,939)

(15,707)

(15,113)

(731)

Adjusted earnings (non-GAAP)

$        47,343

$      298,635

$      217,542

$      135,261

$        67,159







Average total assets

$ 27,488,732

$ 26,418,838

$ 26,162,136

$ 25,802,982

$ 24,826,199







Return on average assets

0.67 %

0.97 %

0.88 %

0.72 %

1.06 %

Adjusted return on average assets (non-GAAP)

0.70 %

1.13 %

1.11 %

1.06 %

1.10 %







Calculation of Return on Tangible Common Equity












Net income available to common stockholders

$        45,589

$      256,412

$      173,152

$        92,549

$        65,095

Amortization of intangibles, net of taxes

3,026

11,756

8,721

5,600

2,575

Total income available to common stockholders

$        48,615

$      268,168

$      181,873

$        98,149

$        67,670

Certain items (non-GAAP)






(Gain) loss from early retirement of TruPS

-

365

365

-

-

Gain on sale of intellectual property

-

(750)

(750)

-

-

Gain on insurance settlement

-

(4,074)

-

-

-

Donation to Simmons First Foundation

-

1,738

1,738

1,738

-

Merger related costs

1,396

22,476

22,441

21,019

1,886

Branch right sizing (net)

979

3,628

2,524

1,289

909

Day 2 CECL provision

-

33,779

33,779

33,779

-

Tax effect of certain items (2)

(621)

(14,939)

(15,707)

(15,113)

(731)

Adjusted earnings (non-GAAP)

47,343

298,635

217,542

135,261

67,159

Amortization of intangibles, net of taxes

3,026

11,756

8,721

5,600

2,575

Total adjusted earnings available to common stockholders (non-GAAP)

$        50,369

$      310,391

$      226,263

$      140,861

$        69,734







Average common stockholders' equity

$   3,370,651

$   3,259,664

$   3,274,743

$   3,265,935

$   3,169,108

Average intangible assets:






   Goodwill

(1,319,624)

(1,266,762)

(1,252,486)

(1,223,352)

(1,146,034)

   Other intangibles

(127,394)

(121,622)

(118,385)

(109,575)

(104,905)

Total average intangibles

(1,447,018)

(1,388,384)

(1,370,871)

(1,332,927)

(1,250,939)

Average tangible common stockholders' equity (non-GAAP)

$   1,923,633

$   1,871,280

$   1,903,872

$   1,933,008

$   1,918,169







Return on average common equity

5.49 %

7.87 %

7.07 %

5.71 %

8.33 %

Return on tangible common equity

10.25 %

14.33 %

12.77 %

10.24 %

14.31 %

Adjusted return on average common equity (non-GAAP)

5.70 %

9.16 %

8.88 %

8.35 %

8.59 %

Adjusted return on tangible common equity (non-GAAP)

10.62 %

16.59 %

15.89 %

14.70 %

14.74 %







Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)












Noninterest expense (efficiency ratio numerator)

$      143,228

$      566,748

$      424,173

$      285,230

$      128,417

Certain noninterest expense items (non-GAAP)






Merger related costs

(1,396)

(22,476)

(22,441)

(21,019)

(1,886)

Donation to Simmons First Foundation

-

(1,738)

(1,738)

(1,738)

-

Branch right sizing expense

(979)

(3,475)

(2,371)

(1,201)

(909)

Other real estate and foreclosure expense adjustment

(186)

(1,003)

(653)

(485)

(343)

Amortization of intangibles adjustment

(4,096)

(15,915)

(11,807)

(7,582)

(3,486)

Adjusted efficiency ratio numerator

$      136,571

$      522,141

$      385,163

$      253,205

$      121,793







Net interest income

$      177,835

$      717,316

$      524,290

$      330,705

$      145,606

Noninterest income

45,835

170,066

125,419

82,396

42,218

Fully tax-equivalent adjustment (effective tax rate of 26.135%)

6,311

24,671

17,901

11,698

5,602

Efficiency ratio denominator

229,981

912,053

667,610

424,799

193,426







Certain noninterest income items (non-GAAP)






Gain on insurance settlement

-

(4,074)

-

-

-

(Gain) loss from early retirement of TruPS

-

365

365

-

-

Gain on sale of intellectual property

-

(750)

(750)

-

-

Gain on sale of branches

-

-

-

-

-

Branch right sizing income

-

153

153

88

-

(Gain) loss on sale of securities

-

278

226

204

54

Adjusted efficiency ratio denominator

$      229,981

$      908,025

$      667,604

$      425,091

$      193,480







Efficiency ratio (1)

62.28 %

62.14 %

63.54 %

67.14 %

66.39 %

Adjusted efficiency ratio (non-GAAP) (1)

59.38 %

57.50 %

57.69 %

59.56 %

62.95 %







 (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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