PINE
BLUFF, Ark., July 25,
2023 /PRNewswire/ --
Bob Fehlman, Simmons' Chief
Executive Officer, commented on second quarter 2023
results:
Simmons posted net income of $58.3
million and diluted earnings per share of $0.46 for the quarter. Adjusted
earnings1 were $61.1
million and adjusted diluted earnings per share1
were $0.48. Balance sheet growth was
steady, with total loans ending the quarter at $16.8 billion, up 2 percent, and total deposits
at $22.5 billion, up slightly, both
on a linked quarter basis.
Our Better Bank Initiative, which is focused on programs
designed to optimize operational processes and increase capacity to
capitalize on organic growth opportunities, achieved continued
success across multiple fronts. During the quarter, we
substantially completed our early retirement program, which is
expected to result in approximately $5.1
million in annual cost savings. Extensive progress was also
completed on other identified opportunities related to process
improvements and streamlining or upgrading systems; and, as a
result, we are on track to meet or exceed the estimated
$15 million in annual cost savings we
have identified to date by the end of 2023.
While we continue to navigate the challenging economic
environment, like many in our industry we have experienced an
increase in funding costs given the rapid rise in interest rates
and resulting steps taken to defend our core customer deposit base.
Given our strong liquidity and capital positions, our focus on
maintaining prudent underwriting standards and our 120-year
history, we believe we are in a position to continue to serve our
customers and expand market share across our attractive
footprint.
Financial
Highlights
|
2Q23
|
1Q23
|
2Q22
|
|
Q2 23
Highlights
|
Balance Sheet
(in millions)
|
|
|
|
|
Metrics as of quarter
end:
- Net income of $58.3 million
and diluted EPS of $0.46
- Adjusted earnings1 of $61.1
million and adjusted diluted
EPS1 of $0.48
- Strong expense management
with noninterest expense down
2% on a linked quarter basis
- Maintained strong funding and
liquidity positions as deposits
increased on a linked quarter
basis and coverage of uninsured
deposits rose to 2.3x
- Disciplined loan growth as total
loans increased 2% on a linked
quarter basis
- 4 bps of net charge-offs; ACL to
total loans unchanged at 1.25%
- Book value per share up 5% and
tangible book value per share1 up 8%, both
year-over-year
- Repurchased 1.1 million shares
in the quarter
|
Total
deposits
|
$22,489
|
$22,452
|
$22,036
|
|
Total loans
|
16,834
|
16,555
|
15,110
|
|
Total investment
securities
|
7,337
|
7,521
|
8,161
|
|
Total shareholders'
equity
|
3,356
|
3,340
|
3,260
|
|
Asset
Quality
|
|
|
|
|
Net charge-off
ratio
|
0.04 %
|
0.03 %
|
0.02 %
|
|
Nonperforming loan
ratio
|
0.43
|
0.38
|
0.42
|
|
Nonperforming assets to
total assets
|
0.28
|
0.26
|
0.26
|
|
Allowance for credit
losses to total loans
|
1.25
|
1.25
|
1.41
|
|
Nonperforming loan
coverage ratio
|
292
|
324
|
334
|
|
Capital
Ratios
|
|
|
|
|
Equity to
assets
|
12.00 %
|
12.11 %
|
11.98 %
|
|
Tangible common equity
(TCE) ratio 1
|
7.22
|
7.25
|
7.03
|
|
Common equity tier 1
(CET1) ratio
|
11.92
|
11.87
|
12.10
|
|
Total risk-based
capital ratio
|
14.17
|
14.47
|
14.83
|
|
Liquidity ($ in
millions)
|
|
|
|
|
Loan to deposit
ratio
|
74.85 %
|
73.74 %
|
68.57 %
|
|
Borrowed funds to total
liabilities
|
7.49 %
|
6.32 %
|
6.83 %
|
|
Uninsured
deposits
|
$
4,817
|
$
5,268
|
$6,516
|
|
Additional liquidity
sources
|
$11,096
|
$10,780
|
$7,808
|
|
Coverage ratio of
uninsured deposits
|
2.3x
|
2.0x
|
1.2x
|
|
Performance
Measures (in millions)
|
|
|
|
|
Total
revenue
|
$208.2
|
$223.7
|
$225.3
|
|
Pre-provision net
revenue1
|
68.9
|
80.4
|
68.6
|
|
Adjusted pre-provision
net revenue1
|
72.6
|
82.8
|
89.9
|
|
Provision for credit
losses on loans
|
0.1
|
10.9
|
33.9
|
|
Provision for credit
losses on securities
|
-
|
13.3
|
-
|
|
Noninterest
income
|
45.0
|
45.8
|
40.2
|
|
Noninterest
expense
|
139.7
|
143.2
|
156.8
|
|
Simmons First National Corporation (NASDAQ:
SFNC) (Simmons or Company) today reported net income of
$58.3 million for the second quarter
of 2023, compared to $45.6 million in
the first quarter of 2023 and $27.5
million in the second quarter of 2022. Diluted earnings per
share were $0.46 for the second
quarter of 2023, compared to $0.36 in
the first quarter of 2023 and $0.21
in the second quarter of 2022. Adjusted earnings1 for
the second quarter of 2023 were $61.1
million, compared to $47.3
million in the first quarter of 2023 and $68.1 million in the second quarter of 2022. A
summary of certain items, consisting primarily of merger related
costs, branch right-sizing costs and early retirement program costs
are described in the "Reconciliation of Non-GAAP Financial
Measures" tables below.
Net Interest Income
Net interest income for the second
quarter of 2023 totaled $163.2
million, compared to $177.8
million in the first quarter of 2023 and $185.1 million for the second quarter of 2022.
Included in net interest income is accretion recognized on assets
acquired, which totaled $2.3 million
in the second quarter of 2023, $2.6
million in the first quarter of 2023 and $9.9 million in the second quarter of 2022. On a
linked quarter basis, interest income increased $18.1 million, while interest expense increased
$32.7 million reflecting the
competitive interest rate environment and resulting pricing
measures to defend the core deposit base, continued customer
migration to higher rate deposit products and a strategic decision
to utilize short-term borrowings to elevate our liquidity position
given the macroeconomic environment and the debt ceiling debate. On
April 1, 2023, approximately
$330.0 million of the Company's
outstanding subordinated debt converted from fixed rate to floating
rate, resulting in a $2.1 million
increase in interest expense during the quarter.
The yield on loans for the second quarter of 2023 was 5.89
percent, compared to 5.67 percent in the first quarter of 2023 and
4.54 percent in the second quarter of 2022. The yield on investment
securities for the second quarter of 2023 was 2.91 percent,
compared to 2.92 percent in the first quarter of 2023 and 2.08
percent in the second quarter of 2022. Cost of deposits for the
second quarter of 2023 was 1.96 percent, compared to 1.58 percent
in the first quarter of 2023 and 0.18 percent in the second quarter
of 2022. The increase in the cost of deposits reflected the
dramatic increase in interest rates, customer migration to higher
rate deposit products and increased competition for deposits. The
net interest margin on a fully taxable equivalent basis for the
second quarter of 2023 was 2.76 percent, compared to 3.09 percent
in the first quarter of 2023 and 3.24 percent in the second quarter
of 2022.
|
Q2 23
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Loan yield
(FTE)2
|
5.89 %
|
5.67 %
|
5.40 %
|
4.86 %
|
4.54 %
|
Investment securities
yield (FTE)2
|
2.91
|
2.92
|
2.68
|
2.29
|
2.08
|
Cost of interest
bearing deposits
|
2.57
|
2.10
|
1.41
|
0.65
|
0.25
|
Cost of
deposits
|
1.96
|
1.58
|
1.02
|
0.47
|
0.18
|
Cost of borrowed
funds
|
5.31
|
4.29
|
3.92
|
2.66
|
2.13
|
Net interest spread
(FTE)2
|
2.10
|
2.52
|
2.87
|
3.11
|
3.11
|
Net interest margin
(FTE)2
|
2.76
|
3.09
|
3.31
|
3.34
|
3.24
|
Noninterest Income
Noninterest income for the second
quarter of 2023 was $45.0 million,
compared to $45.8 million in the
first quarter of 2023 and $40.2
million in the second quarter of 2022. Included in first
quarter 2023 results is a $4.0
million legal reserve recapture associated with previously
disclosed legal matters. On a linked quarter and year-over-year
basis, most fee-based businesses posted positive gains, led by
service charges on deposits accounts, wealth management fees and
mortgage lending income, offset in part by a decline in bank owned
life insurance. Other noninterest income increased on a year-over
year basis, primarily as a result of fair value adjustments
associated with certain equity investments and death benefits from
bank owned life insurance.
Noninterest
Income
$ in
millions
|
Q2 23
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Service charges on
deposit accounts
|
$ 12.9
|
$ 12.4
|
$ 11.9
|
$ 12.6
|
$ 11.4
|
Wealth management
fees
|
7.4
|
7.4
|
8.2
|
8.6
|
7.2
|
Debit and credit card
fees
|
8.0
|
8.0
|
7.8
|
7.7
|
8.2
|
Mortgage lending
income
|
2.4
|
1.6
|
1.1
|
2.6
|
2.2
|
Other service charges
and fees
|
2.3
|
2.3
|
2.0
|
2.1
|
1.9
|
Bank owned life
insurance
|
2.6
|
3.0
|
3.0
|
2.9
|
2.6
|
Gain (loss) on sale of
securities
|
(0.4)
|
-
|
(0.1)
|
-
|
(0.2)
|
Gain on insurance
settlement
|
-
|
-
|
4.1
|
-
|
-
|
Other income
|
9.8
|
11.3
|
6.6
|
6.7
|
6.8
|
|
|
|
|
|
|
Adjusted other
income1
|
9.8
|
11.3
|
6.6
|
6.3
|
6.9
|
Noninterest Expense
Noninterest expense for the second
quarter of 2023 was $139.7 million,
compared to $143.2 million in the
first quarter of 2023 and $156.8
million in the second quarter of 2022. Included in
noninterest expense are certain items consisting primarily of
merger related costs, branch right sizing costs and early
retirement program costs, totaling $3.7
million in the second quarter of 2023, $2.4 million in the first quarter of 2023 and
$21.2 million in the second quarter
of 2022. Excluding these items (which are described in the
"Reconciliation of Non-GAAP Financial Measures" tables below),
adjusted noninterest expense1 was $136.0 million in the second quarter of 2023,
$140.9 million in the first quarter
of 2023 and $135.7 million in the
second quarter of 2022. The decrease in adjusted noninterest
expense on a linked quarter basis was primarily attributable to
successful execution of our Better Bank Initiative as well as a
$3.0 million incentive accrual
adjustment recorded in the second quarter of 2023.
Noninterest
Expense
$ in
millions
|
Q2 23
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Salaries and employee
benefits
|
$74.7
|
$77.0
|
$73.0
|
$71.9
|
$74.1
|
Occupancy expense,
net
|
11.4
|
11.6
|
11.6
|
11.7
|
11.0
|
Furniture and
equipment
|
5.1
|
5.1
|
5.4
|
5.4
|
5.1
|
Deposit
insurance
|
5.2
|
4.9
|
3.7
|
3.3
|
2.8
|
Other real estate and
foreclosure expense
|
0.3
|
0.2
|
0.4
|
0.2
|
0.1
|
Merger related
costs
|
-
|
1.4
|
-
|
1.4
|
19.1
|
Other operating
expenses
|
42.9
|
43.1
|
48.5
|
45.1
|
44.5
|
|
|
|
|
|
|
Adjusted salaries and
employee benefits1
|
71.1
|
77.0
|
73.0
|
71.9
|
74.1
|
Adjusted other
operating expenses1
|
43.0
|
42.3
|
47.5
|
44.1
|
42.7
|
Efficiency
ratio
|
65.18 %
|
62.28 %
|
58.33 %
|
57.22 %
|
67.77 %
|
Adjusted efficiency
ratio1
|
61.29 %
|
59.38 %
|
56.97 %
|
54.41 %
|
56.74 %
|
Loans and Unfunded Loan Commitments
Total loans at the
end of the second quarter of 2023 were $16.8
billion, an increase of $279
million, or 2 percent, compared to $16.6 billion at the end of the first quarter of
2023. On a year-over year basis, total loans were up $1.7 billion, or 11 percent. While loan growth
has moderated as expected, the increase in total loans on a linked
quarter basis was broad-based, both in terms of industry type and
geographic market. Unfunded commitments at the end of the second
quarter of 2023 were $4.4 million,
compared to $4.7 billion at the end
of the first quarter of 2023 and $4.5
billion at the end of the second quarter of 2022. While
unfunded commitments are considered a key indicator of future loan
growth, the rapid increase in interest rates, coupled with softer
economic conditions, have resulted in lower activity in our
commercial loan pipeline. Commercial loans approved and ready to
close at the end of the second quarter of 2023 totaled $274 million, and the rate on ready to close
commercial loans was 7.94 percent, up 62 basis points on a linked
quarter basis.
$ in
millions
|
Q2 23
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Total loans
|
$16,834
|
$16,555
|
$16,142
|
$15,607
|
$15,110
|
Unfunded loan
commitments
|
$4,443
|
$4,725
|
$5,000
|
$5,138
|
$4,473
|
Deposits
Total deposits at the end of the second
quarter of 2023 were $22.5 billion,
up slightly from the end of the first quarter of 2023, and up
$453 million compared to the second
quarter of 2022. Noninterest bearing deposits totaled $5.3 billion at the end of the second quarter of
2023, compared to $5.5 billion at the
end of the first quarter of 2023 and $6.1
billion at the end of the second quarter of 2022. Interest
bearing transaction accounts totaled $10.9
billion at the end of the second quarter of 2023, compared
to $11.3 billion at the end of the
first quarter of 2023 and $12.8
billion at the end of the second quarter of 2022. Time
deposits totaled $6.4 billion at the
end of the second quarter of 2023, compared to $5.7 billion at the end of the first quarter of
2023 and $3.2 billion at the end of
the second quarter of 2022. The change in mix of deposits, both on
a linked quarter and year-over-year basis, reflects continued
customer migration into higher rate deposits, principally
certificates of deposits, given the rapid rise in interest rates,
as well as increased market competition. The loan to deposit ratio
ended the second quarter of 2023 at 75 percent, compared to 74
percent at the end of the first quarter of 2023 and 69 percent at
the end of the second quarter of 2022.
$ in
millions
|
Q2 23
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Noninterest bearing
deposits
|
$
5,265
|
$
5,489
|
$
6,017
|
$
6,218
|
$
6,057
|
Interest bearing
transaction accounts
|
10,866
|
11,284
|
11,763
|
12,104
|
12,816
|
Time
deposits
|
6,358
|
5,679
|
4,768
|
3,827
|
3,163
|
Total
deposits
|
$22,489
|
$22,452
|
$22,548
|
$22,149
|
$22,036
|
|
|
|
|
|
|
Noninterest bearing
deposits to total deposits
|
23 %
|
24 %
|
27 %
|
28 %
|
27 %
|
Total loans to total
deposits
|
75
|
74
|
72
|
70
|
69
|
Asset Quality
Total nonperforming loans at the end of
the second quarter of 2023 were $72.0
million, compared to $63.7
million at the end of the first quarter of 2023 and
$63.6 million at the end of the
second quarter of 2022. Total nonperforming assets as a percentage
of total assets were 0.28 percent at the end of the second quarter
of 2023, compared to 0.26 percent at the end of both the first
quarter of 2023 and the second quarter of 2022. The increase in
nonperforming assets on a linked quarter basis was primarily due to
a single, commercial relationship totaling $9.6 million, offset, in part, by a $2.8 million decrease in other nonperforming
assets. Shortly after the end of the quarter, an initial payment of
$2.9 million was received on the
commercial relationship previously noted. Net charge-offs as a
percentage of average loans for the second quarter of 2023 were 4
basis points, compared to 3 basis points in the first quarter of
2023 and 2 basis points in the second quarter of 2022. Net
charge-offs as a percentage of average total loans, excluding
credit cards, were 1 basis point for the second quarter of
2023.
Provision for credit losses totaled $0.1
million in the second quarter of 2023, compared to
$33.9 million in the second quarter
of 2022. Included in the year ago period was $30.3 million of Day 2 CECL provision recorded in
connection with the Company's acquisition of Spirt of Texas
Bancshares, Inc. The allowance for credit losses on loans at the
end of the second quarter of 2023 was $210.0
million compared to $206.6
million at the end of the first quarter of 2023 and
$212.6 million at the end of the
second quarter of 2022. The allowance for credit losses as a
percentage of total loans at the end of the second quarter of 2023
was 1.25 percent, unchanged on a linked quarter basis. The
nonperforming loan coverage ratio ended the quarter at 292 percent,
compared to 324 percent at the end of the first quarter of 2023 and
334 percent at the end of the second quarter of 2022. The reserve
for unfunded commitments totaled $36.9
million at the end of the second quarter of 2023, compared
to $41.9 million at the end of the
first quarter of 2023 and $25.9
million at the end of the second quarter of 2022. The
decrease in the reserve for unfunded commitments on a linked
quarter basis was primarily due to a decline in unfunded
commitments resulting from customers utilizing lines of
credit.
$ in
millions
|
Q2 23
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Allowance for credit
losses on loans to total
loans
|
1.25 %
|
1.25 %
|
1.22 %
|
1.27 %
|
1.41 %
|
Allowance for credit
losses on loans to
nonperforming loans
|
292
|
324
|
334
|
342
|
334
|
Nonperforming loans to
total loans
|
0.43
|
0.38
|
0.37
|
0.37
|
0.42
|
Net charge-off ratio
(annualized)
|
0.04
|
0.03
|
0.13
|
-
|
0.02
|
Net charge-off ratio
YTD (annualized)
|
0.04
|
0.03
|
0.09
|
0.07
|
0.11
|
|
|
|
|
|
|
Total nonperforming
loans
|
$72.0
|
$63.7
|
$58.9
|
$57.8
|
$63.6
|
Total other
nonperforming assets
|
4.9
|
7.7
|
3.6
|
4.7
|
6.4
|
Total
nonperforming assets
|
$76.9
|
$71.4
|
$62.5
|
$62.5
|
$70.0
|
|
|
|
|
|
|
Reserve for unfunded
commitments
|
$36.9
|
$41.9
|
$41.9
|
$41.9
|
$25.9
|
Capital
Total common stockholders' equity at the end
of the second quarter of 2023 was $3.4
billion, compared to $3.3
billion at the end of both the first quarter of 2023 and the
second quarter of 2022. Book value per share at the end of the
second quarter of 2023 was $26.59,
compared to $26.24 at the end of the
first quarter of 2023 and $25.31 at
the end of the second quarter of 2022. Tangible book value per
share1 was $15.17 at the
end of the second quarter of 2023, compared to $14.88 per share at the end of the first quarter
of 2023 and $14.07 at the end of the
second quarter of 2022. Stockholders' equity to total assets at
June 30, 2023, was 12.0 percent,
compared to 12.1 percent at the end of the first quarter of 2023
and unchanged from the levels reported at the end of the second
quarter of 2022. Tangible common equity to tangible
assets1 was 7.2 percent at June
30, 2023, compared to 7.3 percent at the end of the first
quarter of 2023 and 7.0 percent at the end of the second quarter of
2022. All of Simmons' regulatory capital ratios continue to
significantly exceed "well capitalized" guidelines.
|
Q2 23
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Stockholders' equity to
total assets
|
12.0 %
|
12.1 %
|
11.9 %
|
11.7 %
|
12.0 %
|
Tangible common equity
to tangible assets1
|
7.2
|
7.3
|
7.0
|
6.7
|
7.0
|
Common equity tier 1
(CET1) ratio
|
11.9
|
11.9
|
11.9
|
11.7
|
12.1
|
Tier 1 leverage
ratio
|
9.2
|
9.2
|
9.3
|
9.2
|
9.2
|
Tier 1 risk-based
capital ratio
|
11.9
|
11.9
|
11.9
|
11.7
|
12.1
|
Total risk-based
capital ratio
|
14.2
|
14.5
|
14.2
|
14.1
|
14.8
|
Share Repurchase Program
During the second quarter of
2023, Simmons repurchased approximately 1.1 million shares of its
Class A common stock at an average price of $17.75 under its 2022 stock repurchase program
(2022 Program). Remaining authorization under the 2022 Program as
of June 30, 2023, was approximately
$60 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%
|
Conference Call
Management will conduct a live
conference call to review this information beginning at
9:00 a.m. Central Time today,
Tuesday, July 25, 2023. 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 10180510. 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, for example, merger activity (primarily including
merger-related expenses and Day 2 CECL provisions), gains and/or
losses on sale of branches, net branch right-sizing initiatives,
loss on redemption of trust preferred securities 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, the Company's Form 10-Q for
the quarterly period ended March 31,
2023, and other reports that the Company has filed with or
furnished to the U.S. Securities and Exchange Commission (the SEC),
all of which are available from the SEC on its website,
www.sec.gov. In addition, there can be no guarantee that the board
of directors (Board) of Simmons will approve a quarterly dividend
in future quarters, and the timing, payment, and amount of future
dividends (if any) is subject to, among other things, the
discretion of the Board and may differ significantly from past
dividends.
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated End of Period Balance
Sheets
|
|
|
|
|
|
For the Quarters Ended
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
($ in thousands)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and
noninterest bearing balances due from banks
|
$
181,268
|
$
199,316
|
$
200,616
|
$
175,547
|
$
193,473
|
Interest bearing
balances due from banks and federal funds sold
|
564,644
|
325,135
|
481,506
|
503,863
|
771,374
|
Cash and cash
equivalents
|
745,912
|
524,451
|
682,122
|
679,410
|
964,847
|
Interest bearing
balances due from banks - time
|
545
|
795
|
795
|
1,290
|
1,535
|
Investment
securities - held-to-maturity
|
3,756,754
|
3,765,483
|
3,759,706
|
3,787,076
|
3,819,682
|
Investment
securities - available-for-sale
|
3,579,758
|
3,755,956
|
3,852,854
|
3,937,543
|
4,341,647
|
Mortgage loans
held for sale
|
10,342
|
4,244
|
3,486
|
12,759
|
14,437
|
Other loans held
for sale
|
-
|
-
|
-
|
2,292
|
16,375
|
Loans:
|
|
|
|
|
|
Loans
|
16,833,653
|
16,555,098
|
16,142,124
|
15,607,135
|
15,110,344
|
Allowance for
credit losses on loans
|
(209,966)
|
(206,557)
|
(196,955)
|
(197,589)
|
(212,611)
|
Net
loans
|
16,623,687
|
16,348,541
|
15,945,169
|
15,409,546
|
14,897,733
|
Premises and
equipment
|
562,025
|
564,497
|
548,741
|
549,932
|
553,062
|
Foreclosed assets
and other real estate owned
|
3,909
|
2,721
|
2,887
|
3,612
|
4,084
|
Interest
receivable
|
103,431
|
98,775
|
102,892
|
86,637
|
82,332
|
Bank owned life
insurance
|
494,370
|
493,191
|
491,340
|
488,364
|
486,355
|
Goodwill
|
1,320,799
|
1,320,799
|
1,319,598
|
1,309,000
|
1,310,528
|
Other intangible
assets
|
120,758
|
124,854
|
128,951
|
133,059
|
137,285
|
Other
assets
|
636,833
|
579,139
|
622,520
|
675,554
|
588,707
|
Total
assets
|
$
27,959,123
|
$
27,583,446
|
$
27,461,061
|
$
27,076,074
|
$
27,218,609
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest
bearing transaction accounts
|
$ 5,264,962
|
$ 5,489,434
|
$ 6,016,651
|
$ 6,218,283
|
$ 6,057,186
|
Interest bearing
transaction accounts and savings deposits
|
10,866,078
|
11,283,584
|
11,762,885
|
12,103,994
|
12,816,198
|
Time
deposits
|
6,357,682
|
5,678,757
|
4,768,558
|
3,826,415
|
3,162,479
|
Total deposits
|
22,488,722
|
22,451,775
|
22,548,094
|
22,148,692
|
22,035,863
|
Federal funds
purchased and securities sold
|
|
|
|
|
|
under agreements
to repurchase
|
102,586
|
142,862
|
160,403
|
168,513
|
155,101
|
Other
borrowings
|
1,373,339
|
1,023,826
|
859,296
|
964,772
|
1,060,244
|
Subordinated
notes and debentures
|
366,065
|
366,027
|
365,989
|
365,951
|
421,693
|
Accrued interest
and other liabilities
|
272,085
|
259,055
|
257,917
|
270,995
|
285,813
|
Total
liabilities
|
24,602,797
|
24,243,545
|
24,191,699
|
23,918,923
|
23,958,714
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Common
stock
|
1,262
|
1,273
|
1,270
|
1,269
|
1,288
|
Surplus
|
2,516,398
|
2,533,589
|
2,530,066
|
2,527,153
|
2,569,060
|
Undivided
profits
|
1,308,654
|
1,275,720
|
1,255,586
|
1,196,459
|
1,139,975
|
Accumulated other
comprehensive (loss) income
|
(469,988)
|
(470,681)
|
(517,560)
|
(567,730)
|
(450,428)
|
Total
stockholders' equity
|
3,356,326
|
3,339,901
|
3,269,362
|
3,157,151
|
3,259,895
|
Total liabilities
and stockholders' equity
|
$
27,959,123
|
$
27,583,446
|
$
27,461,061
|
$
27,076,074
|
$
27,218,609
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Consolidated Statements of Income -
Quarter-to-Date
|
|
|
|
|
|
For the Quarters
Ended
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
($ in thousands, except per share
data)
|
|
|
|
|
|
INTEREST INCOME
|
|
|
|
|
|
Loans (including fees)
|
$
244,292
|
$
227,498
|
$
216,091
|
$
187,347
|
$
163,578
|
Interest bearing balances due from banks and federal funds
sold
|
4,023
|
2,783
|
2,593
|
1,141
|
1,117
|
Investment securities
|
48,751
|
48,774
|
45,689
|
40,954
|
37,848
|
Mortgage loans held for sale
|
154
|
82
|
152
|
178
|
200
|
Other loans held for sale
|
-
|
-
|
59
|
998
|
2,063
|
TOTAL INTEREST INCOME
|
297,220
|
279,137
|
264,584
|
230,618
|
204,806
|
INTEREST EXPENSE
|
|
|
|
|
|
Time
deposits
|
53,879
|
39,538
|
22,434
|
8,204
|
2,875
|
Other deposits
|
54,485
|
47,990
|
34,615
|
17,225
|
6,879
|
Federal funds purchased and securities
|
|
|
|
|
|
sold under agreements
to repurchase
|
318
|
323
|
449
|
305
|
119
|
Other borrowings
|
18,612
|
8,848
|
9,263
|
6,048
|
4,844
|
Subordinated notes and debentures
|
6,696
|
4,603
|
4,797
|
5,251
|
4,990
|
TOTAL INTEREST EXPENSE
|
133,990
|
101,302
|
71,558
|
37,033
|
19,707
|
NET INTEREST INCOME
|
163,230
|
177,835
|
193,026
|
193,585
|
185,099
|
PROVISION FOR CREDIT
LOSSES
|
|
|
|
|
|
Provision for credit losses on loans
|
5,061
|
10,916
|
26
|
(15,897)
|
30,406
|
Provision for credit losses on unfunded
commitments
|
(5,000)
|
-
|
-
|
16,000
|
3,453
|
Provision for credit losses on investment securities -
AFS
|
(1,326)
|
12,800
|
-
|
-
|
-
|
Provision for credit losses on investment securities -
HTM
|
1,326
|
500
|
-
|
-
|
-
|
TOTAL PROVISION FOR CREDIT LOSSES
|
61
|
24,216
|
26
|
103
|
33,859
|
NET INTEREST INCOME AFTER
PROVISION
|
|
|
|
|
|
FOR CREDIT
LOSSES
|
163,169
|
153,619
|
193,000
|
193,482
|
151,240
|
NONINTEREST INCOME
|
|
|
|
|
|
Service charges on deposit accounts
|
12,882
|
12,437
|
11,892
|
12,560
|
11,379
|
Debit and credit card fees
|
7,986
|
7,952
|
7,845
|
7,685
|
8,224
|
Wealth management fees
|
7,440
|
7,365
|
8,151
|
8,562
|
7,214
|
Mortgage lending income
|
2,403
|
1,570
|
1,139
|
2,593
|
2,240
|
Bank
owned life insurance income
|
2,555
|
2,973
|
2,975
|
2,902
|
2,563
|
Other service charges and fees (includes insurance
income)
|
2,262
|
2,282
|
2,023
|
2,085
|
1,871
|
Gain
(loss) on sale of securities
|
(391)
|
-
|
(52)
|
(22)
|
(150)
|
Gain
on insurance settlement
|
-
|
-
|
4,074
|
-
|
-
|
Other income
|
9,843
|
11,256
|
6,600
|
6,658
|
6,837
|
TOTAL NONINTEREST INCOME
|
44,980
|
45,835
|
44,647
|
43,023
|
40,178
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
Salaries and employee benefits
|
74,723
|
77,038
|
73,018
|
71,923
|
74,135
|
Occupancy expense, net
|
11,410
|
11,578
|
11,620
|
11,674
|
11,004
|
Furniture and equipment expense
|
5,128
|
5,051
|
5,392
|
5,394
|
5,104
|
Other real estate and foreclosure expense
|
289
|
186
|
350
|
168
|
142
|
Deposit insurance
|
5,201
|
4,893
|
3,680
|
3,278
|
2,812
|
Merger-related costs
|
19
|
1,396
|
35
|
1,422
|
19,133
|
Other operating expenses
|
42,926
|
43,086
|
48,480
|
45,084
|
44,483
|
TOTAL NONINTEREST EXPENSE
|
139,696
|
143,228
|
142,575
|
138,943
|
156,813
|
NET INCOME
BEFORE INCOME TAXES
|
68,453
|
56,226
|
95,072
|
97,562
|
34,605
|
Provision for income taxes
|
10,139
|
10,637
|
11,812
|
16,959
|
7,151
|
NET INCOME
|
$ 58,314
|
$ 45,589
|
$ 83,260
|
$ 80,603
|
$ 27,454
|
BASIC EARNINGS PER
SHARE
|
$
0.46
|
$
0.36
|
$
0.66
|
$
0.63
|
$
0.21
|
DILUTED EARNINGS PER
SHARE
|
$
0.46
|
$
0.36
|
$
0.65
|
$
0.63
|
$
0.21
|
Simmons First National
Corporation
|
|
|
|
SFNC
|
Consolidated Risk-Based
Capital
|
|
|
|
|
|
For the Quarters
Ended
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
($ in thousands)
|
|
|
|
|
|
Tier 1 capital
|
|
|
|
|
|
Stockholders' equity
|
$
3,356,326
|
$
3,339,901
|
$
3,269,362
|
$
3,157,151
|
$
3,259,895
|
CECL
transition provision (1)
|
61,746
|
61,746
|
92,619
|
92,619
|
92,619
|
Disallowed
intangible assets, net of deferred tax
|
(1,406,500)
|
(1,410,141)
|
(1,412,667)
|
(1,416,453)
|
(1,423,323)
|
Unrealized
loss (gain) on AFS securities
|
469,988
|
470,681
|
517,560
|
567,730
|
450,428
|
Total Tier 1
capital
|
2,481,560
|
2,462,187
|
2,466,874
|
2,401,047
|
2,379,619
|
|
|
|
|
|
|
Tier 2 capital
|
|
|
|
|
|
Subordinated notes and debentures
|
366,065
|
366,027
|
365,989
|
365,951
|
421,693
|
Subordinated debt phase out
|
(66,000)
|
-
|
-
|
-
|
-
|
Qualifying
allowance for loan losses and
|
|
|
|
|
|
reserve for unfunded
commitments
|
169,409
|
173,077
|
115,627
|
116,257
|
114,733
|
Total Tier 2
capital
|
469,474
|
539,104
|
481,616
|
482,208
|
536,426
|
Total risk-based
capital
|
$
2,951,034
|
$
3,001,291
|
$
2,948,490
|
$
2,883,255
|
$
2,916,045
|
|
|
|
|
|
|
Risk weighted
assets
|
$ 20,821,075
|
$ 20,748,605
|
$ 20,738,727
|
$ 20,470,918
|
$ 19,669,149
|
|
|
|
|
|
|
Adjusted average assets
for leverage ratio
|
$ 26,896,289
|
$ 26,632,691
|
$ 26,407,061
|
$ 25,986,938
|
$ 25,807,113
|
|
|
|
|
|
|
Ratios at end of quarter
|
|
|
|
|
|
Equity to
assets
|
12.00 %
|
12.11 %
|
11.91 %
|
11.66 %
|
11.98 %
|
Tangible
common equity to tangible assets (2)
|
7.22 %
|
7.25 %
|
7.00 %
|
6.69 %
|
7.03 %
|
Common
equity Tier 1 ratio (CET1)
|
11.92 %
|
11.87 %
|
11.90 %
|
11.73 %
|
12.10 %
|
Tier 1
leverage ratio
|
9.23 %
|
9.24 %
|
9.34 %
|
9.24 %
|
9.22 %
|
Tier 1
risk-based capital ratio
|
11.92 %
|
11.87 %
|
11.90 %
|
11.73 %
|
12.10 %
|
Total
risk-based capital ratio
|
14.17 %
|
14.47 %
|
14.22 %
|
14.08 %
|
14.83 %
|
|
|
|
|
|
|
(1) The Company has elected to use the CECL
transition provision allowed for in the year of adopting ASC
326.
|
(2) Calculations of tangible common equity to
tangible assets and the reconciliations to GAAP are included in the
schedules accompanying this
release.
|
Simmons First National
Corporation
|
|
|
|
SFNC
|
Consolidated Investment
Securities
|
|
|
|
|
|
For the Quarters
Ended
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
($ in thousands)
|
|
|
|
|
|
Investment Securities - End of
Period
|
|
|
|
|
|
Held-to-Maturity
|
|
|
|
|
|
U.S.
Government agencies
|
$ 451,737
|
$ 451,052
|
$ 448,012
|
$ 447,400
|
$ 446,789
|
Mortgage-backed securities
|
1,193,118
|
1,201,418
|
1,190,781
|
1,214,882
|
1,244,713
|
State and political subdivisions
|
1,859,022
|
1,859,970
|
1,860,992
|
1,865,203
|
1,868,924
|
Other securities
|
252,877
|
253,043
|
259,921
|
259,591
|
259,256
|
Total
held-to-maturity (net of credit losses)
|
3,756,754
|
3,765,483
|
3,759,706
|
3,787,076
|
3,819,682
|
Available-for-Sale
|
|
|
|
|
|
U.S.
Treasury
|
$
2,209
|
$
2,220
|
$
2,197
|
$
2,191
|
$
1,441
|
U.S.
Government agencies
|
176,564
|
181,843
|
184,279
|
188,060
|
198,333
|
Mortgage-backed securities
|
2,282,328
|
2,433,530
|
2,542,902
|
2,670,348
|
2,963,934
|
State and political subdivisions
|
885,505
|
895,896
|
871,074
|
822,509
|
915,255
|
Other securities
|
233,152
|
242,467
|
252,402
|
254,435
|
262,684
|
Total
available-for-sale (net of credit losses)
|
3,579,758
|
3,755,956
|
3,852,854
|
3,937,543
|
4,341,647
|
Total investment
securities (net of credit losses)
|
$
7,336,512
|
$
7,521,439
|
$
7,612,560
|
$
7,724,619
|
$
8,161,329
|
Fair value - HTM
investment securities
|
$
3,094,958
|
$
3,148,976
|
$
3,063,233
|
$
2,984,040
|
$
3,278,962
|
Simmons First National
Corporation
|
|
|
|
SFNC
|
Consolidated Loans
|
|
|
|
|
|
For the Quarters
Ended
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
($ in thousands)
|
|
|
|
|
|
Loan Portfolio - End of Period
|
|
|
|
|
|
Consumer:
|
|
|
|
|
|
Credit cards
|
$ 209,452
|
$ 188,590
|
$ 196,928
|
$ 192,559
|
$ 189,684
|
Other consumer
|
148,333
|
142,817
|
152,882
|
180,604
|
204,692
|
Total
consumer
|
357,785
|
331,407
|
349,810
|
373,163
|
394,376
|
Real
Estate:
|
|
|
|
|
|
Construction
|
2,930,586
|
2,777,122
|
2,566,649
|
2,372,294
|
2,082,688
|
Single-family residential
|
2,633,365
|
2,589,831
|
2,546,115
|
2,467,008
|
2,357,942
|
Other commercial real estate
|
7,546,130
|
7,520,964
|
7,468,498
|
7,249,891
|
7,082,055
|
Total real
estate
|
13,110,081
|
12,887,917
|
12,581,262
|
12,089,193
|
11,522,685
|
Commercial:
|
|
|
|
|
|
Commercial
|
2,569,330
|
2,669,731
|
2,632,290
|
2,525,218
|
2,612,256
|
Agricultural
|
280,541
|
220,641
|
205,623
|
263,539
|
218,743
|
Total
commercial
|
2,849,871
|
2,890,372
|
2,837,913
|
2,788,757
|
2,830,999
|
Other
|
515,916
|
445,402
|
373,139
|
356,022
|
362,284
|
Total
loans
|
$ 16,833,653
|
$ 16,555,098
|
$ 16,142,124
|
$ 15,607,135
|
$ 15,110,344
|
Simmons First National
Corporation
|
|
|
|
SFNC
|
Consolidated Allowance and Asset
Quality
|
|
|
|
|
|
For the Quarters
Ended
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
($ in thousands)
|
|
|
|
|
|
Allowance for Credit Losses on
Loans
|
|
|
|
|
|
Beginning
balance
|
$ 206,557
|
$
196,955
|
$
197,589
|
$
212,611
|
$
178,924
|
|
|
|
|
|
|
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
|
1,409
|
1,076
|
1,035
|
903
|
1,004
|
Other consumer
|
666
|
456
|
439
|
505
|
518
|
Real
estate
|
435
|
1,204
|
3,392
|
130
|
115
|
Commercial
|
1,225
|
413
|
5,389
|
1,874
|
688
|
Total loans
charged off
|
3,735
|
3,149
|
10,255
|
3,412
|
2,325
|
|
|
|
|
|
|
Recoveries of
loans previously charged off:
|
|
|
|
|
|
Credit cards
|
298
|
234
|
251
|
250
|
249
|
Other consumer
|
436
|
240
|
230
|
278
|
302
|
Real
estate
|
878
|
294
|
4,117
|
1,982
|
391
|
Commercial
|
471
|
1,067
|
475
|
720
|
621
|
Total
recoveries
|
2,083
|
1,835
|
5,073
|
3,230
|
1,563
|
Net
loans charged off
|
1,652
|
1,314
|
5,182
|
182
|
762
|
Provision for
credit losses on loans
|
5,061
|
10,916
|
25
|
(15,897)
|
30,406
|
Balance, end of
quarter
|
$ 209,966
|
$
206,557
|
$
196,955
|
$
197,589
|
$
212,611
|
|
|
|
|
|
|
Nonperforming assets
|
|
|
|
|
|
Nonperforming
loans:
|
|
|
|
|
|
Nonaccrual loans
|
$
71,279
|
$ 63,218
|
$
58,434
|
$
57,534
|
$
62,670
|
Loans past due 90 days or more
|
738
|
437
|
507
|
242
|
904
|
Total
nonperforming loans
|
72,017
|
63,655
|
58,941
|
57,776
|
63,574
|
Other
nonperforming assets:
|
|
|
|
|
|
Foreclosed
assets and other real estate owned
|
3,909
|
2,721
|
2,887
|
3,612
|
4,084
|
Other nonperforming assets
|
1,013
|
5,012
|
644
|
1,146
|
2,314
|
Total other
nonperforming assets
|
4,922
|
7,733
|
3,531
|
4,758
|
6,398
|
Total nonperforming assets
|
$
76,939
|
$ 71,388
|
$
62,472
|
$
62,534
|
$
69,972
|
Performing FDMs
(modifications to borrowers
|
|
|
|
|
|
experiencing financial difficulty)
|
$ 2,996
|
$
2,183
|
$ 1,849
|
$ 1,869
|
$ 2,655
|
|
|
|
|
|
|
Ratios
|
|
|
|
|
|
Allowance for
credit losses on loans to total loans
|
1.25 %
|
1.25 %
|
1.22 %
|
1.27 %
|
1.41 %
|
Allowance for
credit losses to nonperforming loans
|
292 %
|
324 %
|
334 %
|
342 %
|
334 %
|
Nonperforming
loans to total loans
|
0.43 %
|
0.38 %
|
0.37 %
|
0.37 %
|
0.42 %
|
Nonperforming
assets (including performing FDMs)
|
|
|
|
|
|
to total
assets
|
0.29 %
|
0.27 %
|
0.23 %
|
0.24 %
|
0.27 %
|
Nonperforming
assets to total assets
|
0.28 %
|
0.26 %
|
0.23 %
|
0.23 %
|
0.26 %
|
Annualized net
charge offs to average loans (QTD)
|
0.04 %
|
0.03 %
|
0.13 %
|
0.00 %
|
0.02 %
|
Annualized net
charge offs to average loans (YTD)
|
0.04 %
|
0.03 %
|
0.09 %
|
0.07 %
|
0.11 %
|
Annualized net
credit card charge offs to
|
|
|
|
|
|
average
credit card loans (QTD)
|
2.25 %
|
1.69 %
|
1.52 %
|
1.30 %
|
1.55 %
|
Simmons First National
Corporation
|
|
|
|
|
|
|
|
|
|
SFNC
|
Consolidated - Average Balance Sheet and Net
Interest Income Analysis
|
|
|
|
|
|
|
For the Quarters
Ended
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
Jun 2023
|
|
Three Months Ended
Mar 2023
|
|
Three Months Ended
Jun 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
|
$ 404,639
|
$ 4,023
|
3.99 %
|
|
$ 315,307
|
$ 2,783
|
3.58 %
|
|
$ 777,098
|
$ 1,117
|
0.58 %
|
Investment
securities - taxable
|
4,821,231
|
32,745
|
2.72 %
|
|
4,930,945
|
32,804
|
2.70 %
|
|
5,674,470
|
21,794
|
1.54 %
|
Investment
securities - non-taxable (FTE)
|
2,627,192
|
21,253
|
3.24 %
|
|
2,624,642
|
21,522
|
3.33 %
|
|
2,725,610
|
21,733
|
3.20 %
|
Mortgage
loans held for sale
|
9,560
|
154
|
6.46 %
|
|
5,470
|
82
|
6.08 %
|
|
17,173
|
200
|
4.67 %
|
Other
loans held for sale
|
-
|
-
|
0.00 %
|
|
-
|
-
|
0.00 %
|
|
22,114
|
2,063
|
37.42 %
|
Loans -
including fees (FTE)
|
16,702,403
|
245,151
|
5.89 %
|
|
16,329,761
|
228,257
|
5.67 %
|
|
14,478,183
|
163,995
|
4.54 %
|
Total interest earning
assets (FTE)
|
24,565,025
|
303,326
|
4.95 %
|
|
24,206,125
|
285,448
|
4.78 %
|
|
23,694,648
|
210,902
|
3.57 %
|
Non-earning assets
|
3,201,114
|
|
|
|
3,282,607
|
|
|
|
3,074,384
|
|
|
Total assets
|
$ 27,766,139
|
|
|
|
$ 27,488,732
|
|
|
|
$ 26,769,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing transaction and
|
|
|
|
|
|
|
|
|
|
|
|
savings accounts
|
$ 11,011,746
|
$
54,485
|
1.98 %
|
|
$ 11,722,591
|
$
47,990
|
1.66 %
|
|
$ 12,807,502
|
$ 6,879
|
0.22 %
|
Time
deposits
|
5,911,139
|
53,879
|
3.66 %
|
|
5,155,055
|
39,538
|
3.11 %
|
|
2,586,567
|
2,875
|
0.45 %
|
Total interest bearing
deposits
|
16,922,885
|
108,364
|
2.57 %
|
|
16,877,646
|
87,528
|
2.10 %
|
|
15,394,069
|
9,754
|
0.25 %
|
Federal
funds purchased and securities
|
|
|
|
|
|
|
|
|
|
|
|
sold under agreement to
repurchase
|
119,985
|
318
|
1.06 %
|
|
148,673
|
323
|
0.88 %
|
|
210,280
|
119
|
0.23 %
|
Other
borrowings
|
1,449,403
|
18,612
|
5.15 %
|
|
787,783
|
8,848
|
4.56 %
|
|
1,241,501
|
4,844
|
1.56 %
|
Subordinated notes and debentures
|
366,047
|
6,696
|
7.34 %
|
|
366,009
|
4,603
|
5.10 %
|
|
418,327
|
4,990
|
4.78 %
|
Total interest bearing
liabilities
|
18,858,320
|
133,990
|
2.85 %
|
|
18,180,111
|
101,302
|
2.26 %
|
|
17,264,177
|
19,707
|
0.46 %
|
Noninterest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing deposits
|
5,276,267
|
|
|
|
5,642,779
|
|
|
|
5,926,304
|
|
|
Other
liabilities
|
272,628
|
|
|
|
295,191
|
|
|
|
216,848
|
|
|
Total
liabilities
|
24,407,215
|
|
|
|
24,118,081
|
|
|
|
23,407,329
|
|
|
Stockholders'
equity
|
3,358,924
|
|
|
|
3,370,651
|
|
|
|
3,361,703
|
|
|
Total liabilities and
stockholders' equity
|
$ 27,766,139
|
|
|
|
$ 27,488,732
|
|
|
|
$ 26,769,032
|
|
|
Net interest income
(FTE)
|
|
$
169,336
|
|
|
|
$
184,146
|
|
|
|
$
191,195
|
|
Net interest spread
(FTE)
|
|
|
2.10 %
|
|
|
|
2.52 %
|
|
|
|
3.11 %
|
Net interest margin
(FTE)
|
|
|
2.76 %
|
|
|
|
3.09 %
|
|
|
|
3.24 %
|
Simmons First National
Corporation
|
|
|
|
SFNC
|
|
Consolidated - Selected Financial
Data
|
|
|
|
|
|
|
For the Quarters
Ended
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
|
($ in thousands, except share
data)
|
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
|
Financial Highlights - As Reported
|
|
|
|
|
|
|
Net Income
|
$
58,314
|
$
45,589
|
$
83,260
|
$
80,603
|
$
27,454
|
|
Diluted earnings per
share
|
0.46
|
0.36
|
0.65
|
0.63
|
0.21
|
|
Return on average
assets
|
0.84 %
|
0.67 %
|
1.22 %
|
1.19 %
|
0.41 %
|
|
Return on average
common equity
|
6.96 %
|
5.49 %
|
10.27 %
|
9.71 %
|
3.28 %
|
|
Return on tangible
common equity (non-GAAP) (1)
|
12.85 %
|
10.25 %
|
19.29 %
|
17.99 %
|
6.28 %
|
|
Net interest margin
(FTE)
|
2.76 %
|
3.09 %
|
3.31 %
|
3.34 %
|
3.24 %
|
|
Efficiency ratio
(2)
|
65.18 %
|
62.28 %
|
58.33 %
|
57.22 %
|
67.77 %
|
|
FTE
adjustment
|
6,106
|
6,311
|
6,770
|
6,203
|
6,096
|
|
Average diluted shares
outstanding
|
127,379,976
|
127,516,478
|
127,505,996
|
128,336,422
|
128,720,078
|
|
Shares repurchased
under plan
|
1,128,087
|
-
|
-
|
1,883,713
|
2,035,324
|
|
Average price of shares
repurchased
|
17.73
|
-
|
-
|
23.91
|
24.59
|
|
Cash dividends declared
per common share
|
0.200
|
0.200
|
0.190
|
0.190
|
0.190
|
|
Accretable yield on
acquired loans
|
2,267
|
2,579
|
4,473
|
5,834
|
9,898
|
|
Financial Highlights - Adjusted (non-GAAP)
(1)
|
|
|
|
|
|
|
Adjusted
earnings
|
$
61,065
|
$
47,343
|
$
81,093
|
$
82,281
|
$
68,102
|
|
Adjusted diluted
earnings per share
|
0.48
|
0.37
|
0.64
|
0.64
|
0.53
|
|
Adjusted return on
average assets
|
0.88 %
|
0.70 %
|
1.18 %
|
1.21 %
|
1.02 %
|
|
Adjusted return on
average common equity
|
7.29 %
|
5.70 %
|
10.01 %
|
9.92 %
|
8.13 %
|
|
Adjusted return on
tangible common equity
|
13.42 %
|
10.62 %
|
18.81 %
|
18.35 %
|
14.65 %
|
|
Adjusted efficiency
ratio (2)
|
61.29 %
|
59.38 %
|
56.97 %
|
54.41 %
|
56.74 %
|
|
YEAR-TO-DATE
|
|
|
|
|
|
|
Financial Highlights - GAAP
|
|
|
|
|
|
|
Net Income
|
$ 103,903
|
$
45,589
|
$ 256,412
|
$ 173,152
|
$
92,549
|
|
Diluted earnings per
share
|
0.82
|
0.36
|
2.06
|
1.40
|
0.77
|
|
Return on average
assets
|
0.76 %
|
0.67 %
|
0.97 %
|
0.88 %
|
0.72 %
|
|
Return on average
common equity
|
6.23 %
|
5.49 %
|
7.87 %
|
7.07 %
|
5.71 %
|
|
Return on tangible
common equity (non-GAAP) (1)
|
11.55 %
|
10.25 %
|
14.33 %
|
12.77 %
|
10.24 %
|
|
Net interest margin
(FTE)
|
2.92 %
|
3.09 %
|
3.17 %
|
3.12 %
|
3.01 %
|
|
Efficiency ratio
(2)
|
63.68 %
|
62.28 %
|
62.14 %
|
63.54 %
|
67.14 %
|
|
FTE
adjustment
|
12,417
|
6,311
|
24,671
|
17,901
|
11,698
|
|
Average diluted shares
outstanding
|
127,421,034
|
127,516,478
|
124,470,184
|
123,387,503
|
120,826,798
|
|
Cash dividends declared
per common share
|
0.400
|
0.200
|
0.760
|
0.570
|
0.380
|
|
Financial Highlights - Adjusted (non-GAAP)
(1)
|
|
|
|
|
|
|
Adjusted
earnings
|
$ 108,408
|
$
47,343
|
$ 298,635
|
$ 217,542
|
$ 135,261
|
|
Adjusted diluted
earnings per share
|
0.85
|
0.37
|
2.40
|
1.76
|
1.12
|
|
Adjusted return on
average assets
|
0.79 %
|
0.70 %
|
1.13 %
|
1.11 %
|
1.06 %
|
|
Adjusted return on
average common equity
|
6.50 %
|
5.70 %
|
9.16 %
|
8.88 %
|
8.35 %
|
|
Adjusted return on
tangible common equity
|
12.03 %
|
10.62 %
|
16.59 %
|
15.89 %
|
14.70 %
|
|
Adjusted efficiency
ratio (2)
|
60.30 %
|
59.38 %
|
57.50 %
|
57.69 %
|
59.56 %
|
|
END OF PERIOD
|
|
|
|
|
|
|
Book value per
share
|
$
26.59
|
$
26.24
|
$
25.73
|
$
24.87
|
$
25.31
|
|
Tangible book value per
share
|
15.17
|
14.88
|
14.33
|
13.51
|
14.07
|
|
Shares
outstanding
|
126,224,707
|
127,282,192
|
127,046,654
|
126,943,467
|
128,787,764
|
|
Full-time equivalent
employees
|
3,066
|
3,189
|
3,236
|
3,206
|
3,233
|
|
Total number of
financial centers
|
231
|
231
|
230
|
230
|
233
|
|
|
|
|
|
|
|
|
(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
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
(in thousands, except per share
data)
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Net
income
|
$
58,314
|
$ 45,589
|
$
83,260
|
$
80,603
|
$
27,454
|
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
|
19
|
1,396
|
35
|
1,422
|
19,133
|
Early retirement
program
|
3,609
|
-
|
-
|
-
|
-
|
Branch right sizing
(net)
|
95
|
979
|
1,104
|
1,235
|
380
|
Day 2 CECL
provision
|
-
|
-
|
-
|
-
|
33,779
|
Tax effect
(1)
|
(972)
|
(621)
|
768
|
(594)
|
(14,382)
|
Certain items, net of tax
|
2,751
|
1,754
|
(2,167)
|
1,678
|
40,648
|
Adjusted earnings
(non-GAAP)
|
$
61,065
|
$ 47,343
|
$
81,093
|
$
82,281
|
$
68,102
|
|
|
|
|
|
|
Diluted earnings
per share
|
$ 0.46
|
$
0.36
|
$
0.65
|
$
0.63
|
$
0.21
|
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
|
Early retirement
program
|
0.03
|
-
|
-
|
-
|
-
|
Branch right sizing
(net)
|
-
|
0.01
|
0.01
|
0.01
|
-
|
Day 2 CECL
provision
|
-
|
-
|
-
|
-
|
0.27
|
Tax effect
(1)
|
(0.01)
|
(0.01)
|
0.01
|
-
|
(0.11)
|
Certain items, net of tax
|
0.02
|
0.01
|
(0.01)
|
0.01
|
0.32
|
Adjusted diluted
earnings per share (non-GAAP)
|
$ 0.48
|
$
0.37
|
$
0.64
|
$
0.64
|
$
0.53
|
|
|
|
|
|
|
(1) Effective tax rate of
26.135%.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Certain Noninterest Income and
Expense Items (non-GAAP)
|
|
|
|
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Noninterest income
|
$
44,980
|
$ 45,835
|
$
44,647
|
$
43,023
|
$
40,178
|
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)
|
$
44,980
|
$ 45,835
|
$
40,573
|
$
42,703
|
$
40,266
|
|
|
|
|
|
|
Other income
|
$ 9,843
|
$ 11,256
|
$ 6,600
|
$ 6,658
|
$ 6,837
|
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)
|
$ 9,843
|
$ 11,256
|
$ 6,600
|
$ 6,338
|
$ 6,925
|
|
|
|
|
|
|
Noninterest expense
|
$ 139,696
|
$
143,228
|
$
142,575
|
$
138,943
|
$
156,813
|
Certain noninterest
expense items (1)
|
|
|
|
|
|
Merger related
costs
|
(19)
|
(1,396)
|
(35)
|
(1,422)
|
(19,133)
|
Early retirement
program
|
(3,609)
|
-
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
-
|
(1,738)
|
Branch right sizing
expense
|
(95)
|
(979)
|
(1,104)
|
(1,170)
|
(292)
|
Adjusted noninterest expense (non-GAAP)
|
$ 135,973
|
$
140,853
|
$
141,436
|
$
136,351
|
$
135,650
|
|
|
|
|
|
|
Salaries and employee benefits
|
$
74,723
|
$ 77,038
|
$
73,018
|
$
71,923
|
$
74,135
|
Certain salaries and
employee benefits items (1)
|
|
|
|
|
|
Early retirement
program
|
(3,609)
|
-
|
-
|
-
|
-
|
Other
|
-
|
-
|
-
|
-
|
-
|
Adjusted salaries and employee benefits (non-GAAP)
|
$
71,114
|
$ 77,038
|
$
73,018
|
$
71,923
|
$
74,135
|
|
|
|
|
|
|
Other operating expenses
|
$
42,926
|
$ 43,086
|
$
48,480
|
$
45,084
|
$
44,483
|
Certain other operating
expenses items (1)
|
|
|
|
|
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
-
|
(1,738)
|
Branch right sizing
expense
|
53
|
(816)
|
(953)
|
(973)
|
(7)
|
Adjusted other operating expenses (non-GAAP)
|
$
42,979
|
$ 42,270
|
$
47,527
|
$
44,111
|
$
42,738
|
|
|
|
|
|
|
(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, early retirement program 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
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
(in thousands, except per share
data)
|
|
|
|
|
|
YEAR-TO-DATE
|
|
|
|
|
|
Net
income
|
$ 103,903
|
$ 45,589
|
$
256,412
|
$
173,152
|
$
92,549
|
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
|
1,415
|
1,396
|
22,476
|
22,441
|
21,019
|
Early retirement
program
|
3,609
|
-
|
-
|
-
|
-
|
Branch right sizing
(net)
|
1,074
|
979
|
3,628
|
2,524
|
1,289
|
Day 2 CECL
provision
|
-
|
-
|
33,779
|
33,779
|
33,779
|
Tax effect
(1)
|
(1,593)
|
(621)
|
(14,939)
|
(15,707)
|
(15,113)
|
Certain items, net of tax
|
4,505
|
1,754
|
42,223
|
44,390
|
42,712
|
Adjusted earnings
(non-GAAP)
|
$ 108,408
|
$ 47,343
|
$
298,635
|
$
217,542
|
$
135,261
|
|
|
|
|
|
|
Diluted earnings
per share
|
$ 0.82
|
$
0.36
|
$
2.06
|
$
1.40
|
$
0.77
|
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
|
0.01
|
0.18
|
0.18
|
0.17
|
Early retirement
program
|
0.03
|
-
|
-
|
-
|
-
|
Branch right sizing
(net)
|
0.01
|
0.01
|
0.03
|
0.02
|
0.01
|
Day 2 CECL
provision
|
-
|
-
|
0.28
|
0.28
|
0.28
|
Tax effect
(1)
|
(0.02)
|
(0.01)
|
(0.12)
|
(0.12)
|
(0.12)
|
Certain items, net of tax
|
0.03
|
0.01
|
0.34
|
0.36
|
0.35
|
Adjusted diluted
earnings per share (non-GAAP)
|
$ 0.85
|
$
0.37
|
$
2.40
|
$
1.76
|
$
1.12
|
|
|
|
|
|
|
(1) Effective
tax rate of 26.135%.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Certain Noninterest Income and
Expense Items (non-GAAP)
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
|
|
|
|
|
|
Noninterest income
|
$
90,815
|
$ 45,835
|
$
170,066
|
$
125,419
|
$
82,396
|
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)
|
$
90,815
|
$ 45,835
|
$
165,760
|
$
125,187
|
$
82,484
|
|
|
|
|
|
|
Other income
|
$
21,099
|
$ 11,256
|
$
27,361
|
$
20,761
|
$
14,103
|
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)
|
$
21,099
|
$ 11,256
|
$
27,129
|
$
20,529
|
$
14,191
|
|
|
|
|
|
|
Noninterest expense
|
$ 282,924
|
$
143,228
|
$
566,748
|
$
424,173
|
$
285,230
|
Certain noninterest
expense items (1)
|
|
|
|
|
|
Merger related
costs
|
(1,415)
|
(1,396)
|
(22,476)
|
(22,441)
|
(21,019)
|
Early retirement
program
|
(3,609)
|
-
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
(1,738)
|
(1,738)
|
(1,738)
|
Branch right sizing
expense
|
(1,074)
|
(979)
|
(3,475)
|
(2,371)
|
(1,201)
|
Adjusted noninterest expense (non-GAAP)
|
$ 276,826
|
$
140,853
|
$
539,059
|
$
397,623
|
$
261,272
|
|
|
|
|
|
|
Salaries and employee benefits
|
$ 151,761
|
$ 77,038
|
$
286,982
|
$
213,964
|
$
142,041
|
Certain salaries and
employee benefits items (1)
|
|
|
|
|
|
Early retirement
program
|
(3,609)
|
-
|
-
|
-
|
-
|
Other
|
-
|
-
|
-
|
-
|
-
|
Adjusted salaries and employee benefits (non-GAAP)
|
$ 148,152
|
$ 77,038
|
$
286,982
|
$
213,964
|
$
142,041
|
|
|
|
|
|
|
Other operating expenses
|
$
86,012
|
$ 43,086
|
$
179,693
|
$
131,213
|
$
86,129
|
Certain other operating
expenses items (1)
|
|
|
|
|
|
Donation to Simmons
First Foundation
|
-
|
-
|
(1,738)
|
(1,738)
|
(1,738)
|
Branch right sizing
expense
|
(763)
|
(816)
|
(2,650)
|
(1,697)
|
(724)
|
Adjusted other operating expenses (non-GAAP)
|
$
85,249
|
$ 42,270
|
$
175,305
|
$
127,778
|
$
83,667
|
|
|
|
|
|
|
(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, early retirement program 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
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
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
|
$
3,356,326
|
$
3,339,901
|
$
3,269,362
|
$
3,157,151
|
$
3,259,895
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,319,598)
|
(1,309,000)
|
(1,310,528)
|
Other
intangible assets
|
(120,758)
|
(124,854)
|
(128,951)
|
(133,059)
|
(137,285)
|
Total
intangibles
|
(1,441,557)
|
(1,445,653)
|
(1,448,549)
|
(1,442,059)
|
(1,447,813)
|
Tangible common
stockholders' equity
|
$
1,914,769
|
$
1,894,248
|
$
1,820,813
|
$
1,715,092
|
$
1,812,082
|
|
|
|
|
|
|
Total assets
|
$ 27,959,123
|
$ 27,583,446
|
$ 27,461,061
|
$ 27,076,074
|
$ 27,218,609
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,319,598)
|
(1,309,000)
|
(1,310,528)
|
Other
intangible assets
|
(120,758)
|
(124,854)
|
(128,951)
|
(133,059)
|
(137,285)
|
Total
intangibles
|
(1,441,557)
|
(1,445,653)
|
(1,448,549)
|
(1,442,059)
|
(1,447,813)
|
Tangible
assets
|
$ 26,517,566
|
$ 26,137,793
|
$ 26,012,512
|
$ 25,634,015
|
$ 25,770,796
|
|
|
|
|
|
|
Ratio of common equity
to assets
|
12.00 %
|
12.11 %
|
11.91 %
|
11.66 %
|
11.98 %
|
Ratio of tangible
common equity to tangible assets
|
7.22 %
|
7.25 %
|
7.00 %
|
6.69 %
|
7.03 %
|
|
|
|
|
|
|
Calculation of Tangible Book Value per
Share
|
|
|
|
|
|
|
|
|
|
|
|
Total common
stockholders' equity
|
$
3,356,326
|
$
3,339,901
|
$
3,269,362
|
$
3,157,151
|
$
3,259,895
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,320,799)
|
(1,319,598)
|
(1,309,000)
|
(1,310,528)
|
Other
intangible assets
|
(120,758)
|
(124,854)
|
(128,951)
|
(133,059)
|
(137,285)
|
Total
intangibles
|
(1,441,557)
|
(1,445,653)
|
(1,448,549)
|
(1,442,059)
|
(1,447,813)
|
Tangible common
stockholders' equity
|
$
1,914,769
|
$
1,894,248
|
$
1,820,813
|
$
1,715,092
|
$
1,812,082
|
Shares of common stock
outstanding
|
126,224,707
|
127,282,192
|
127,046,654
|
126,943,467
|
128,787,764
|
Book value per common
share
|
$
26.59
|
$
26.24
|
$
25.73
|
$
24.87
|
$
25.31
|
Tangible book value per
common share
|
$
15.17
|
$
14.88
|
$
14.33
|
$
13.51
|
$
14.07
|
|
|
|
|
|
|
Calculation of Uninsured Deposit Coverage
Ratio
|
|
|
|
|
|
|
|
|
|
|
|
Uninsured deposits at
Simmons Bank
|
$
5,491,062
|
$
5,896,752
|
$
7,267,220
|
|
$
7,071,483
|
Less: Intercompany
eliminations
|
674,552
|
628,592
|
527,542
|
|
555,636
|
Total uninsured
deposits
|
$
4,816,510
|
$
5,268,160
|
$
6,739,678
|
|
$
6,515,847
|
|
|
|
|
|
|
FHLB borrowing
availability
|
$
5,345,000
|
$
5,574,000
|
$
5,442,000
|
|
$
3,707,000
|
Unpledged
securities
|
3,877,000
|
3,000,000
|
3,180,000
|
|
3,597,000
|
Fed funds lines, Fed
discount window and
|
|
|
|
|
|
Bank Term
Funding Program
|
1,874,000
|
2,206,000
|
1,982,000
|
|
504,000
|
Additional liquidity
sources
|
$ 11,096,000
|
$ 10,780,000
|
$ 10,604,000
|
|
$
7,808,000
|
|
|
|
|
|
|
Uninsured deposit
coverage ratio
|
2.3
|
2.0
|
1.6
|
|
1.2
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Quarter-to-Date
|
|
|
|
For the Quarters
Ended
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
($ in thousands)
|
|
|
|
|
|
Calculation of Adjusted Return on Average
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
58,314
|
$
45,589
|
$
83,260
|
$
80,603
|
$
27,454
|
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
|
19
|
1,396
|
35
|
1,422
|
19,133
|
Early retirement
program
|
3,609
|
-
|
-
|
-
|
-
|
Branch right sizing
(net)
|
95
|
979
|
1,104
|
1,235
|
380
|
Day 2 CECL
provision
|
-
|
-
|
-
|
-
|
33,779
|
Tax effect of certain
items (2)
|
(972)
|
(621)
|
768
|
(594)
|
(14,382)
|
Adjusted earnings
(non-GAAP)
|
$
61,065
|
$
47,343
|
$
81,093
|
$
82,281
|
$
68,102
|
|
|
|
|
|
|
Average total
assets
|
$ 27,766,139
|
$ 27,488,732
|
$ 27,180,575
|
$ 26,868,731
|
$ 26,769,032
|
|
|
|
|
|
|
Return on average
assets
|
0.84 %
|
0.67 %
|
1.22 %
|
1.19 %
|
0.41 %
|
Adjusted return on
average assets (non-GAAP)
|
0.88 %
|
0.70 %
|
1.18 %
|
1.21 %
|
1.02 %
|
|
|
|
|
|
|
Calculation of Return on Tangible Common
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
58,314
|
$
45,589
|
$
83,260
|
$
80,603
|
$
27,454
|
Amortization of
intangibles, net of taxes
|
3,026
|
3,026
|
3,035
|
3,121
|
3,025
|
Total income available
to common stockholders
|
$
61,340
|
$
48,615
|
$
86,295
|
$
83,724
|
$
30,479
|
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
|
19
|
1,396
|
35
|
1,422
|
19,133
|
Early retirement
program
|
3,609
|
-
|
-
|
-
|
-
|
Branch right sizing
(net)
|
95
|
979
|
1,104
|
1,235
|
380
|
Day 2 CECL
provision
|
-
|
-
|
-
|
-
|
33,779
|
Tax effect of certain
items (2)
|
(972)
|
(621)
|
768
|
(594)
|
(14,382)
|
Adjusted earnings
(non-GAAP)
|
61,065
|
47,343
|
81,093
|
82,281
|
68,102
|
Amortization of
intangibles, net of taxes
|
3,026
|
3,026
|
3,035
|
3,121
|
3,025
|
Total adjusted earnings
available to common stockholders (non-GAAP)
|
$
64,091
|
$
50,369
|
$
84,128
|
$
85,402
|
$
71,127
|
|
|
|
|
|
|
Average common
stockholders' equity
|
$
3,358,924
|
$
3,370,651
|
$
3,214,912
|
$
3,292,071
|
$
3,361,703
|
Average intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,319,624)
|
(1,309,124)
|
(1,309,804)
|
(1,299,821)
|
Other
intangibles
|
(123,173)
|
(127,394)
|
(131,229)
|
(135,718)
|
(114,195)
|
Total average
intangibles
|
(1,443,972)
|
(1,447,018)
|
(1,440,353)
|
(1,445,522)
|
(1,414,016)
|
Average tangible common
stockholders' equity (non-GAAP)
|
$
1,914,952
|
$
1,923,633
|
$
1,774,559
|
$
1,846,549
|
$
1,947,687
|
|
|
|
|
|
|
Return on average
common equity
|
6.96 %
|
5.49 %
|
10.27 %
|
9.71 %
|
3.28 %
|
Return on tangible
common equity
|
12.85 %
|
10.25 %
|
19.29 %
|
17.99 %
|
6.28 %
|
Adjusted return on
average common equity (non-GAAP)
|
7.29 %
|
5.70 %
|
10.01 %
|
9.92 %
|
8.13 %
|
Adjusted return on
tangible common equity (non-GAAP)
|
13.42 %
|
10.62 %
|
18.81 %
|
18.35 %
|
14.65 %
|
|
|
|
|
|
|
Calculation of Efficiency Ratio and Adjusted
Efficiency Ratio (1)
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(efficiency ratio numerator)
|
$ 139,696
|
$ 143,228
|
$ 142,575
|
$ 138,943
|
$ 156,813
|
Certain noninterest
expense items (non-GAAP)
|
|
|
|
|
|
Merger related
costs
|
(19)
|
(1,396)
|
(35)
|
(1,422)
|
(19,133)
|
Early retirement
program
|
(3,609)
|
-
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
-
|
(1,738)
|
Branch right sizing
expense
|
(95)
|
(979)
|
(1,104)
|
(1,170)
|
(292)
|
Other real estate and
foreclosure expense adjustment
|
(289)
|
(186)
|
(350)
|
(168)
|
(142)
|
Amortization of
intangibles adjustment
|
(4,098)
|
(4,096)
|
(4,108)
|
(4,225)
|
(4,096)
|
Adjusted efficiency
ratio numerator
|
$ 131,586
|
$ 136,571
|
$ 136,978
|
$ 131,958
|
$ 131,412
|
|
|
|
|
|
|
Net interest
income
|
$ 163,230
|
$ 177,835
|
$ 193,026
|
$ 193,585
|
$ 185,099
|
Noninterest
income
|
44,980
|
45,835
|
44,647
|
43,023
|
40,178
|
Fully tax-equivalent
adjustment (effective tax rate of 26.135%)
|
6,106
|
6,311
|
6,770
|
6,203
|
6,096
|
Efficiency ratio
denominator
|
214,316
|
229,981
|
244,443
|
242,811
|
231,373
|
|
|
|
|
|
|
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
|
391
|
-
|
52
|
22
|
150
|
Adjusted efficiency
ratio denominator
|
$ 214,707
|
$ 229,981
|
$ 240,421
|
$ 242,513
|
$ 231,611
|
|
|
|
|
|
|
Efficiency
ratio (1)
|
65.18 %
|
62.28 %
|
58.33 %
|
57.22 %
|
67.77 %
|
Adjusted efficiency
ratio (non-GAAP) (1)
|
61.29 %
|
59.38 %
|
56.97 %
|
54.41 %
|
56.74 %
|
|
|
|
|
|
|
(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
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Pre-Provision Net Revenue
(PPNR)
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
163,230
|
$ 177,835
|
$ 193,026
|
$ 193,585
|
$ 185,099
|
Noninterest
income
|
44,980
|
45,835
|
44,647
|
43,023
|
40,178
|
Revenue
|
208,210
|
223,670
|
237,673
|
236,608
|
225,277
|
Less: Gain (loss) on
sale of securities
|
(391)
|
-
|
(52)
|
(22)
|
(150)
|
Less: Noninterest
expense
|
139,696
|
143,228
|
142,575
|
138,943
|
156,813
|
Pre-Provision Net
Revenue (PPNR)
|
$
68,905
|
$
80,442
|
$
95,150
|
$
97,687
|
$
68,614
|
|
|
|
|
|
|
Calculation of Adjusted Pre-Provision Net
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Provision Net
Revenue (PPNR)
|
$
68,905
|
$
80,442
|
$
95,150
|
$
97,687
|
$
68,614
|
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
|
19
|
1,396
|
35
|
1,422
|
19,133
|
Plus: Early retirement
program costs
|
3,609
|
-
|
-
|
-
|
-
|
Plus: Branch right
sizing costs
|
95
|
979
|
1,104
|
1,235
|
380
|
Adjusted Pre-Provision
Net Revenue
|
$
72,628
|
$
82,817
|
$
92,215
|
$
99,959
|
$
89,865
|
Simmons First National
Corporation
|
|
|
|
|
SFNC
|
Reconciliation Of Non-GAAP Financial Measures -
Year-to-Date
|
|
|
|
|
For the Quarters
Ended
|
Jun 30
|
Mar 31
|
Dec 31
|
Sep 30
|
Jun 30
|
(Unaudited)
|
2023
|
2023
|
2022
|
2022
|
2022
|
($ in thousands)
|
|
|
|
|
|
Calculation of Adjusted Return on Average
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
103,903
|
$
45,589
|
$
256,412
|
$
173,152
|
$
92,549
|
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
|
1,415
|
1,396
|
22,476
|
22,441
|
21,019
|
Early retirement
program
|
3,609
|
-
|
-
|
-
|
-
|
Branch right sizing
(net)
|
1,074
|
979
|
3,628
|
2,524
|
1,289
|
Day 2 CECL
provision
|
-
|
-
|
33,779
|
33,779
|
33,779
|
Tax effect of certain
items (2)
|
(1,593)
|
(621)
|
(14,939)
|
(15,707)
|
(15,113)
|
Adjusted earnings
(non-GAAP)
|
$
108,408
|
$
47,343
|
$
298,635
|
$
217,542
|
$
135,261
|
|
|
|
|
|
|
Average total
assets
|
$
27,628,202
|
$
27,488,732
|
$
26,418,838
|
$
26,162,136
|
$
25,802,982
|
|
|
|
|
|
|
Return on average
assets
|
0.76 %
|
0.67 %
|
0.97 %
|
0.88 %
|
0.72 %
|
Adjusted return on
average assets (non-GAAP)
|
0.79 %
|
0.70 %
|
1.13 %
|
1.11 %
|
1.06 %
|
|
|
|
|
|
|
Calculation of Return on Tangible Common
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
103,903
|
$
45,589
|
$
256,412
|
$
173,152
|
$
92,549
|
Amortization of
intangibles, net of taxes
|
6,052
|
3,026
|
11,756
|
8,721
|
5,600
|
Total income available
to common stockholders
|
$
109,955
|
$
48,615
|
$
268,168
|
$
181,873
|
$
98,149
|
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
|
1,415
|
1,396
|
22,476
|
22,441
|
21,019
|
Early retirement
program
|
3,609
|
-
|
-
|
-
|
-
|
Branch right sizing
(net)
|
1,074
|
979
|
3,628
|
2,524
|
1,289
|
Day 2 CECL
provision
|
-
|
-
|
33,779
|
33,779
|
33,779
|
Tax effect of certain
items (2)
|
(1,593)
|
(621)
|
(14,939)
|
(15,707)
|
(15,113)
|
Adjusted earnings
(non-GAAP)
|
108,408
|
47,343
|
298,635
|
217,542
|
135,261
|
Amortization of
intangibles, net of taxes
|
6,052
|
3,026
|
11,756
|
8,721
|
5,600
|
Total adjusted earnings
available to common stockholders (non-GAAP)
|
$
114,460
|
$
50,369
|
$
310,391
|
$
226,263
|
$
140,861
|
|
|
|
|
|
|
Average common
stockholders' equity
|
$
3,364,755
|
$
3,370,651
|
$
3,259,664
|
$
3,274,743
|
$
3,265,935
|
Average intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,215)
|
(1,319,624)
|
(1,266,762)
|
(1,252,486)
|
(1,223,352)
|
Other
intangibles
|
(125,272)
|
(127,394)
|
(121,622)
|
(118,385)
|
(109,575)
|
Total average
intangibles
|
(1,445,487)
|
(1,447,018)
|
(1,388,384)
|
(1,370,871)
|
(1,332,927)
|
Average tangible common
stockholders' equity (non-GAAP)
|
$
1,919,268
|
$
1,923,633
|
$
1,871,280
|
$
1,903,872
|
$
1,933,008
|
|
|
|
|
|
|
Return on average
common equity
|
6.23 %
|
5.49 %
|
7.87 %
|
7.07 %
|
5.71 %
|
Return on tangible
common equity
|
11.55 %
|
10.25 %
|
14.33 %
|
12.77 %
|
10.24 %
|
Adjusted return on
average common equity (non-GAAP)
|
6.50 %
|
5.70 %
|
9.16 %
|
8.88 %
|
8.35 %
|
Adjusted return on
tangible common equity (non-GAAP)
|
12.03 %
|
10.62 %
|
16.59 %
|
15.89 %
|
14.70 %
|
|
|
|
|
|
|
Calculation of Efficiency Ratio and Adjusted
Efficiency Ratio (1)
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(efficiency ratio numerator)
|
$
282,924
|
$
143,228
|
$
566,748
|
$
424,173
|
$
285,230
|
Certain noninterest
expense items (non-GAAP)
|
|
|
|
|
|
Merger related
costs
|
(1,415)
|
(1,396)
|
(22,476)
|
(22,441)
|
(21,019)
|
Early retirement
program
|
(3,609)
|
-
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
(1,738)
|
(1,738)
|
(1,738)
|
Branch right sizing
expense
|
(1,074)
|
(979)
|
(3,475)
|
(2,371)
|
(1,201)
|
Other real estate and
foreclosure expense adjustment
|
(475)
|
(186)
|
(1,003)
|
(653)
|
(485)
|
Amortization of
intangibles adjustment
|
(8,194)
|
(4,096)
|
(15,915)
|
(11,807)
|
(7,582)
|
Adjusted efficiency
ratio numerator
|
$
268,157
|
$
136,571
|
$
522,141
|
$
385,163
|
$
253,205
|
|
|
|
|
|
|
Net interest
income
|
$
341,065
|
$
177,835
|
$
717,316
|
$
524,290
|
$
330,705
|
Noninterest
income
|
90,815
|
45,835
|
170,066
|
125,419
|
82,396
|
Fully tax-equivalent
adjustment (effective tax rate of 26.135%)
|
12,417
|
6,311
|
24,671
|
17,901
|
11,698
|
Efficiency ratio
denominator
|
444,297
|
229,981
|
912,053
|
667,610
|
424,799
|
|
|
|
|
|
|
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)
|
-
|
Branch right sizing
income
|
-
|
-
|
153
|
153
|
88
|
(Gain) loss on sale of
securities
|
391
|
-
|
278
|
226
|
204
|
Adjusted efficiency
ratio denominator
|
$
444,688
|
$
229,981
|
$
908,025
|
$
667,604
|
$
425,091
|
|
|
|
|
|
|
Efficiency
ratio (1)
|
63.68 %
|
62.28 %
|
62.14 %
|
63.54 %
|
67.14 %
|
Adjusted efficiency
ratio (non-GAAP) (1)
|
60.30 %
|
59.38 %
|
57.50 %
|
57.69 %
|
59.56 %
|
|
|
|
|
|
|
(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