Simmons Reports First Quarter 2021 Earnings


PINE BLUFF, Ark., April 20, 2021 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or “Simmons”) today announced net income of $67.4 million for the quarter ended March 31, 2021, compared to $77.2 million for the same period in 2020, a decrease of $9.8 million, or 12.7%, due in significant part to the difference in the gains on sale of securities recognized during the periods. Diluted earnings per share were $0.62, a decrease of $0.06, or 8.8%, compared to the same period in the prior year. Included in first quarter 2021 results were $634,000 in net after-tax merger-related and net branch right-sizing costs as well as a $4.0 million after-tax gain primarily associated with the sale of branches in Illinois.

Excluding the impact of these items, core earnings were $64.0 million for the quarter ended March 31, 2021, compared to $73.8 million for the quarter ended March 31, 2020, a decrease of $9.8 million, or 13.3%. Core diluted earnings per share were $0.59, a decrease of $0.06, or 9.2%, from the same period in 2020.

“We are very pleased with our solid performance in the first quarter. It reflects the benefit of our diverse operating model,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “We are still feeling the effects of COVID in the economy. Some industries are still struggling to return to pre-COVID levels of performance and the government’s economic stimulus packages have created a rapid rise in liquidity. Loan demand has been well below historical levels, but we are encouraged by the rebuilding of the pipeline during the first quarter. Asset quality has improved as compared to 2020 and we are optimistic that trend will continue. Based on our current levels of capital and liquidity, we have lending capacity that we have not seen in several years, so Simmons is poised to do our part as the economy continues to return to normal.”

Selected Highlights:1st Qtr 20214th Qtr 20201st Qtr 2020
Net income$67.4 million$53.0 million$77.2 million
Diluted earnings per share$0.62$0.49$0.68
Return on avg assets1.20%0.96%1.48%
Return on avg common equity9.20%7.13%10.83%
Return on tangible common equity (1)15.85%12.48%19.00%
    
Core earnings (2)$64.0 million$62.0 million$73.8 million
Core diluted earnings per share (2)$0.59$0.57$0.65
Core return on avg assets (2)1.14%1.13%1.42%
Core return on avg common equity (2)8.73%8.34%10.35%
Core return on tangible common equity (1)(2)15.08%14.51%18.19%
Efficiency ratio (3)57.77%55.27%57.79%
Adjusted pre-tax, pre-provision earnings (2)$73.1 million$83.1 million$84.4 million


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

Loans

($ in billions)1st Qtr 20214th Qtr 20201st Qtr 2020
Total loans$12.20$12.90$14.37

Total loans were $12.2 billion at March 31, 2021, a decrease of $705.0 million on a linked-quarter basis. Of this decrease, $228.7 million was related to declines in seasonal credit card and agricultural portfolios ($33.4 million), Paycheck Protection Program (“PPP”) loans ($107.1 million) and mortgage warehouse line of credit ($88.2 million). The remaining decrease was related in significant part to planned loan payoffs, normal paydowns and weakened loan demand as a result of the economic uncertainty stemming from the COVID-19 pandemic.

Loan demand appears to be recovering going into the second quarter of 2021. The Company’s total loan pipeline consisting of all loan opportunities was $1.2 billion at March 31, 2021 compared to $674 million at December 31, 2020. Loans approved and ready to close were $284 million as of March 31, 2021.

As of March 31, 2021, the Company had $797.6 million in loans outstanding under the PPP. The change in the total PPP loan balance during the first quarter of 2021 was as follows:

($ in millions)PPP Round 1PPP Round 2Total PPP Loans
Beginning balance, January 1, 2021$904.7$  -$904.7
PPP loan originations-227.9227.9
PPP loan forgiveness and repayments(335.0)-(335.0)
Ending balance, March 31, 2021$569.7$227.9$797.6

Deposits

($ in billions)1st Qtr 20214th Qtr 20201st Qtr 2020
Total deposits$18.2$17.0$15.6
Non-interest bearing deposits$4.9$4.5$3.6
Interest bearing deposits$10.3$9.7$8.8
Time deposits$3.0$2.8$3.2

Total deposits were $18.2 billion at March 31, 2021, representing increases of $2.6 billion, or 16.9%, since March 31, 2020 and $1.2 billion, or 7.1% since last quarter. The increase in deposit balances was driven in significant part by multiple rounds of economic stimulus legislation and changes in customer spending as a result of the ongoing COVID-19 pandemic. Trends affected by the increasing customer cash balances are paydowns on loans, decreased loan demand, reduced credit card balances and fewer overdraft activities.

Net Interest Income

 1st Qtr
2021
4th Qtr
2020
3rd Qtr
2020
2nd Qtr
2020
1st Qtr
2020
Loan yield (1)4.75%4.74%4.54%4.84%5.19%
Core loan yield (1) (2)4.53%4.47%4.29%4.52%4.86%
Security yield (1)2.36%2.48%2.60%2.50%2.63%
Cost of interest bearing deposits0.41%0.47%0.54%0.59%1.03%
Cost of deposits (3)0.30%0.34%0.39%0.44%0.80%
Cost of borrowed funds1.91%1.88%1.85%1.84%2.06%
Net interest margin (1)2.99%3.22%3.21%3.42%3.68%
Core net interest margin (1) (2)2.86%3.04%3.02%3.18%3.42%


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

The Company’s net interest income for the first quarter of 2021 was $146.7 million, a decrease of $20.8 million, or 12.4%, from the same period in 2020. The decrease in net interest income was primarily due to the decline in the loan yield of 44 basis points and the lower average loan balance during the current period. This decrease was partially offset by the 50 basis point decline in the cost of deposits. Loan and deposits yields were impacted by the continuing low interest rate environment during the first quarter of 2021. Included in interest income was the yield accretion recognized on loans acquired of $6.6 million and $11.8 million for the first quarters of 2021 and 2020, respectively.

The loan yield essentially remained flat for the quarter ended March 31, 2021, compared to the fourth quarter of 2020 at 4.75%. The core loan yield, which excludes accretion on acquired loans, was 4.53%, an increase of 6 basis points for the same period. The yield on PPP loans was approximately 5.26% during the first quarter of 2021 (including accretion of net fees), which increased the Company’s overall loan yield by approximately 4 basis points.

Net interest margin (FTE) was 2.99% for the quarter ended March 31, 2021, while core net interest margin, which excludes the accretion, was 2.86% for the same period. The decline in the net interest margin during the first quarter of 2021 was primarily due to an $804 million increase in average cash and cash equivalents. The Company added $1.1 billion to its average investment security portfolio balance during the quarter. The net interest margin during the first quarter of 2021 was affected by additional liquidity and the PPP loans, which decreased the net interest margin by approximately 35 basis points.

Non-Interest Income

Non-interest income for the first quarter of 2021 was $51.9 million, a decrease of $30.5 million compared to the same period in the previous year. The decline in non-interest income was primarily related to the incremental gains on the sale of securities recognized during the first quarter of last year. During the first quarter of 2020, the Company sold approximately $1.0 billion in securities resulting in a gain of $30.1 million, to begin creating additional liquidity in response to the unfolding COVID-19 pandemic. During the first quarter of 2021, the Company generated a gain of $5.5 million on sales of securities.

Debit and credit card fees for the first quarter of 2021 were $9.0 million, an increase of $1.1 million, or 13.3%, compared to the first quarter of 2020. Makris stated, “This increase appears to highlight new consumer habits and the effects of the government economic impact payments.”

Selected Non-Interest Income Items
($ in millions)
1st Qtr
2021
4th Qtr
2020
3rd Qtr
2020
2nd Qtr
2020
1st Qtr
2020
Service charges on deposit accounts$9.7$10.8$10.4$8.6$13.3
Mortgage lending income$6.4$3.0$14.0$12.5$5.0
SBA lending income$0.2$0.5$0.3$0.2$0.3
Debit and credit card fees$9.0$8.7$8.9$8.0$7.9
Gain on sale of securities$5.5-$22.3$0.4$32.1
Other income$10.3$10.6$5.4$9.8$12.8
      
Core other income (1)$4.8$10.3$5.0$7.6$6.9


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

Non-Interest Expense

Non-interest expense for the first quarter of 2021 was $115.4 million, a decrease of $13.5 million compared to the first quarter of 2020. Included in this quarter were $858,000 of pre-tax non-core items for merger-related expenses and branch right-sizing costs. Excluding these expenses, core non-interest expense was $114.5 million for the first quarter of 2021, a decrease of $13.0 million compared to the same period in 2020. The decrease in other operating expenses is related to the realization of expected synergies from the continuous evaluation of the Company’s branch network and the branch sales and closures that began in 2020 and have continued in 2021.

The efficiency ratio for the first quarter of 2021 was 57.77% compared to 57.79% for the same period in 2020.

Selected Non-Interest Expense Items
($ in millions)
1st Qtr
2021
4th Qtr
2020
3rd Qtr
2020
2nd Qtr
2020
1st Qtr
2020
Salaries and employee benefits$60.3$55.8$61.1$57.6$67.9
Merger related costs$0.2$0.7$0.9$1.8$1.1
Other operating expenses$38.4$54.3$38.2$39.7$41.8
      
Core salaries and employee benefits(1)$60.3$55.6$58.7$57.2$67.9
Core merger related costs(1)-----
Core other operating expenses(1)$38.2$44.1$38.2$38.0$41.6

 

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

Asset Quality


($ in millions)
1st Qtr
2021
4th Qtr
2020
3rd Qtr
2020
2nd Qtr
2020
1st Qtr
2020
Allowance for credit losses on loans to total loans1.93%1.85%1.77%1.59%1.69%
Allowance for credit losses on loans to non-performing loans204%193%148%176%155%
Non-performing loans to total loans0.95%0.96%1.20%0.90%1.09%
Net charge-off ratio (annualized)0.10%0.52%0.16%1.04%0.07%
Net charge-off ratio YTD (annualized)0.10%0.45%0.43%0.56%0.07%
      
Total non-performing loans$115.5$123.5$167.9$131.9$157.0
Total other non-performing assets$12.4$20.4$14.6$16.1$23.0

At March 31, 2021, the allowance for credit losses was $235.1 million. Total non-performing assets at March 31, 2021 decreased $52.1 million from the first quarter of 2020 and decreased $16.0 million from year end. Provision for credit losses for the first quarter of 2021 was $1.4 million, a decrease of $5.5 million, or 79.2%, from the previous quarter.

Foreclosed Assets and Other Real Estate Owned

At March 31, 2021, foreclosed assets and other real estate owned were $11.2 million, a decrease of $9.6 million, or 46.3%, compared to the same period in 2020 and a decrease of $7.2 million, or 39.3% from December 31, 2020. The composition of these assets is divided into three types:        



($ in millions)
1st Qtr
2021
4th Qtr
2020
3rd Qtr
2020
2nd Qtr
2020
1st Qtr
2020
Closed bank branches and branch sites$0.5$0.6$0.6$2.7$8.8
Foreclosed assets – acquired$7.7$15.3$9.3$9.2$9.2
Foreclosed assets – legacy$3.0$2.5$2.7$2.2$2.8

Capital

 1st Qtr
2021
4th Qtr
2020
3rd Qtr
2020
2nd Qtr
2020
1st Qtr
2020
Stockholders’ equity to total assets12.6%13.3%13.7%13.3%13.7%
Tangible common equity to tangible assets (1)7.9%8.5%8.7%8.3%8.4%
Regulatory common equity tier 1 ratio14.1%13.4%12.6%11.9%11.1%
Regulatory tier 1 leverage ratio9.0%9.1%9.1%8.8%9.0%
Regulatory tier 1 risk-based capital ratio14.1%13.4%12.6%11.9%11.1%
Regulatory total risk-based capital ratio17.5%16.8%15.8%14.9%14.1%

 

(1) Tangible common equity to tangible assets is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
   

At March 31, 2021, common stockholders' equity was $2.9 billion. Book value per share was $27.04 and tangible book value per share was $16.13 at March 31, 2021, compared to $27.53 and $16.56, respectively, at December 31, 2020. The ratio of stockholders’ equity to total assets was 12.6% at March 31, 2021, compared to 13.3% at December 31, 2020, while tangible common equity to tangible assets was 7.9% at March 31, 2021, compared to 8.5% at the previous year-end.

During the first quarter of 2021, the Company repurchased approximately 131,000 shares of its common stock at an average price per share of $23.53. Market conditions and capital needs will drive the decisions regarding additional, future stock repurchases.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $23.3 billion as of March 31, 2021. The Company, through its subsidiaries, conducts financial operations in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas and offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock is listed on the NASDAQ Global Select Market under the symbol “SFNC.”

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT today, Tuesday, April 20, 2021. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 1443639. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com for at least 60 days.

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 income available to common shareholders, non-interest income, and non-interest expense certain income and expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches, early retirement program expenses and net branch right-sizing expenses. 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. 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. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses, and management uses these non-GAAP financial measures to assess the performance of the Company’s core 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

Some of the statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Makris’s quotes, may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, lending capacity and lending activity, revenue, assets, asset quality, profitability, 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 benefits associated with the Company’s early retirement program, branch closures and branch sales, the adequacy of the allowance for credit losses, the ability of the Company to manage the impact of the COVID-19 pandemic, and the impacts of the Company’s and its customers participation in the PPP. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons common stock specifically, and information technology affecting the financial industry; the effect of steps the Company takes and has taken in response to the COVID-19 pandemic; the severity and duration of the pandemic, including the effectiveness of vaccination efforts; the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; unemployment; claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the PPP loan program authorized by the Coronavirus Aid, Relief and Economic Security Act); changes in accounting principles relating to loan loss recognition (current expected credit losses, or CECL); the Company’s ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; government legislation; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in the Company’s Form 10-K for the year ended December 31, 2020, which has been filed with, and is available from, the U.S. Securities and Exchange Commission.

FOR MORE INFORMATION CONTACT:
Stephen C. Massanelli
EVP, Chief Administrative Officer
Simmons First National Corporation
steve.massanelli@simmonsbank.com

      
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) 2021   2020   2020   2020   2020 
($ in thousands)                   
ASSETS                   
Cash and non-interest bearing balances due from banks$227,713  $217,499  $382,691  $234,998  $244,123 
Interest bearing balances due from banks and federal funds sold 3,677,750   3,254,653   2,139,440   2,310,162   1,493,076 
Cash and cash equivalents 3,905,463   3,472,152   2,522,131   2,545,160   1,737,199 
Interest bearing balances due from banks - time 1,334   1,579   4,061   4,561   4,309 
Investment securities - held-to-maturity 609,500   333,031   47,102   51,720   53,968 
Investment securities - available-for-sale 4,528,348   3,473,598   2,607,288   2,496,896   2,466,640 
Mortgage loans held for sale 63,655   137,378   192,729   120,034   49,984 
Other assets held for sale 100   100   389   399   115,315 
Loans:                   
Loans 12,195,873   12,900,897   14,017,442   14,606,900   14,374,277 
Allowance for credit losses on loans (235,116)  (238,050)  (248,251)  (231,643)  (243,195)
Net loans 11,960,757   12,662,847   13,769,191   14,375,257   14,131,082 
Premises and equipment 427,540   441,692   470,491   478,896   484,990 
Premises held for sale 13,613   15,008   4,486   4,576   - 
Foreclosed assets and other real estate owned 11,168   18,393   12,590   14,111   20,805 
Interest receivable 71,359   72,597   77,352   79,772   57,039 
Bank owned life insurance 257,152   255,630   257,718   256,643   255,197 
Goodwill 1,075,305   1,075,305   1,075,305   1,064,765   1,064,978 
Other intangible assets 107,091   111,110   114,460   117,823   121,673 
Other assets 315,732   289,332   282,102   293,071   278,173 
Total assets$23,348,117  $22,359,752  $21,437,395  $21,903,684  $20,841,352 
                    
LIABILITIES AND STOCKHOLDERS' EQUITY                   
Deposits:                   
Non-interest bearing transaction accounts$4,884,667  $4,482,091  $4,451,385  $4,608,098  $3,572,244 
Interest bearing transaction accounts and savings deposits 10,279,997   9,672,608   8,993,255   8,978,045   8,840,678 
Time deposits 3,024,724   2,832,327   2,802,007   3,029,975   3,146,811 
Total deposits 18,189,388   16,987,026   16,246,647   16,616,118   15,559,733 
Federal funds purchased and securities sold                   
under agreements to repurchase 323,053   299,111   313,694   387,025   377,859 
Other borrowings 1,340,467   1,342,067   1,342,769   1,393,689   1,396,829 
Subordinated notes and debentures 383,008   382,874   382,739   382,604   388,396 
Other liabilities held for sale -   154,620   -   -   58,405 
Accrued interest and other liabilities 181,426   217,398   209,305   219,545   214,730 
Total liabilities 20,417,342   19,383,096   18,495,154   18,998,981   17,995,952 
                    
Stockholders' equity:                   
Preferred stock 767   767   767   767   767 
Common stock 1,083   1,081   1,090   1,090   1,090 
Surplus 2,017,188   2,014,076   2,032,372   2,029,383   2,026,420 
Undivided profits 948,913   901,006   866,503   819,153   778,893 
Accumulated other comprehensive income (loss):                   
Unrealized (depreciation) accretion on AFS securities (37,176)  59,726   41,509   54,310   38,230 
Total stockholders' equity 2,930,775   2,976,656   2,942,241   2,904,703   2,845,400 
Total liabilities and stockholders' equity$23,348,117  $22,359,752  $21,437,395  $21,903,684  $20,841,352 
                    


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) 2021  2020  2020  2020  2020 
($ in thousands, except per share data)               
INTEREST INCOME               
   Loans (including fees)$146,424 $160,115 $163,180 $176,910 $187,566 
   Interest bearing balances due from banks and federal funds sold 798  716  623  603  2,441 
   Investment securities 21,573  17,207  14,910  13,473  18,943 
   Mortgage loans held for sale 639  1,070  1,012  668  281 
           TOTAL INTEREST INCOME 169,434  179,108  179,725  191,654  209,231 
INTEREST EXPENSE               
   Time deposits 7,091  7,835  9,437  10,803  13,323 
   Other deposits 6,088  6,536  6,769  7,203  17,954 
   Federal funds purchased and securities               
     sold under agreements to repurchase 245  284  335  337  759 
   Other borrowings 4,802  4,869  4,943  4,963  4,877 
   Subordinated notes and debentures 4,527  4,624  4,631  4,667  4,835 
           TOTAL INTEREST EXPENSE 22,753  24,148  26,115  27,973  41,748 
NET INTEREST INCOME 146,681  154,960  153,610  163,681  167,483 
   Provision for credit losses 1,445  6,943  22,981  21,915  23,134 
NET INTEREST INCOME AFTER PROVISION               
   FOR CREDIT LOSSES 145,236  148,017  130,629  141,766  144,349 
NON-INTEREST INCOME               
   Trust income 6,666  6,557  6,744  7,253  7,151 
   Service charges on deposit accounts 9,715  10,799  10,385  8,570  13,328 
   Other service charges and fees 1,922  1,783  1,764  1,489  1,588 
   Mortgage lending income 6,447  2,993  13,971  12,459  5,046 
   SBA lending income 240  484  304  245  296 
   Investment banking income 695  676  557  571  877 
   Debit and credit card fees 8,964  8,710  8,850  7,996  7,914 
   Bank owned life insurance income 1,523  1,481  1,591  1,445  1,298 
   Gain on sale of securities, net 5,471  16  22,305  390  32,095 
   Other income 10,260  10,557  5,380  9,809  12,801 
           TOTAL NON-INTEREST INCOME 51,903  44,056  71,851  50,227  82,394 
NON-INTEREST EXPENSE               
   Salaries and employee benefits 60,340  55,762  61,144  57,644  67,924 
   Occupancy expense, net 9,300  9,182  9,647  9,217  9,510 
   Furniture and equipment expense 5,415  5,940  6,231  6,144  5,723 
   Other real estate and foreclosure expense 343  551  602  274  325 
   Deposit insurance 1,308  1,627  2,244  2,838  2,475 
   Merger-related costs 233  731  902  1,830  1,068 
   Other operating expenses 38,417  54,342  38,179  39,651  41,788 
           TOTAL NON-INTEREST EXPENSE 115,356  128,135  118,949  117,598  128,813 
NET INCOME BEFORE INCOME TAXES 81,783  63,938  83,531  74,395  97,930 
   Provision for income taxes 14,363  10,970  17,633  15,593  20,694 
NET INCOME 67,420  52,968  65,898  58,802  77,236 
   Preferred stock dividends 13  13  13  13  13 
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$67,407 $52,955 $65,885 $58,789 $77,223 
BASIC EARNINGS PER SHARE$0.62 $0.49 $0.60 $0.54 $0.68 
DILUTED EARNINGS PER SHARE$0.62 $0.49 $0.60 $0.54 $0.68 
                


Simmons First National Corporation    SFNC 
Consolidated Risk-Based Capital     
For the Quarters Ended Mar 31   Dec 31   Sep 30   Jun 30   Mar 31 
(Unaudited) 2021   2020   2020   2020   2020 
($ in thousands)                   
Tier 1 capital                   
Stockholders' equity$2,930,775  $2,976,656  $2,942,241  $2,904,703  $2,845,400 
CECL transition provision (1) 131,637   131,430   134,798   130,480   134,558 
Disallowed intangible assets, net of deferred tax (1,159,720)  (1,163,797)  (1,167,357)  (1,160,385)  (1,164,038)
Unrealized loss (gain) on AFS securities 37,176   (59,726)  (41,509)  (54,310)  (38,230)
Total Tier 1 capital 1,939,868   1,884,563   1,868,173   1,820,488   1,777,690 
                    
Tier 2 capital                   
Trust preferred securities and subordinated debt 383,008   382,874   382,739   382,604   388,396 
Qualifying allowance for loan losses and                   
reserve for unfunded commitments 87,251   89,546   96,734   83,780   96,015 
Total Tier 2 capital 470,259   472,420   479,473   466,384   484,411 
Total risk-based capital$2,410,127  $2,356,983  $2,347,646  $2,286,872  $2,262,101 
                    
Risk weighted assets$13,771,244  $14,048,608  $14,878,932  $15,362,175  $16,012,233 
                    
Adjusted average assets for leverage ratio$21,668,406  $20,765,127  $20,652,454  $20,742,824  $19,832,219 
                    
Ratios at end of quarter                   
Equity to assets 12.55%  13.31%  13.72%  13.26%  13.65%
Tangible common equity to tangible assets (2) 7.88%  8.45%  8.65%  8.31%  8.44%
Common equity Tier 1 ratio (CET1) 14.08%  13.41%  12.55%  11.85%  11.10%
Tier 1 leverage ratio 8.95%  9.08%  9.05%  8.78%  8.96%
Tier 1 risk-based capital ratio 14.09%  13.41%  12.56%  11.85%  11.10%
Total risk-based capital ratio 17.50%  16.78%  15.78%  14.89%  14.13%
                    
(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) 2021  2020  2020  2020  2020 
($ in thousands)               
Investment Securities - End of Period               
Held-to-Maturity               
U.S. Government agencies$77,396 $- $- $- $- 
Mortgage-backed securities 47,988  22,354  24,297  25,980  27,121 
State and political subdivisions 484,116  310,109  21,930  24,777  25,985 
Other securities -  568  875  963  862 
Total held-to-maturity (net of credit losses) 609,500  333,031  47,102  51,720  53,968 
Available-for-Sale               
U.S. Treasury$600 $- $- $- $424,989 
U.S. Government agencies 487,679  477,237  471,973  210,921  161,289 
Mortgage-backed securities 2,133,086  1,394,936  903,687  1,154,086  1,179,837 
State and political subdivisions 1,571,910  1,470,723  1,133,006  1,054,068  678,243 
Other securities 335,073  130,702  98,622  77,821  22,282 
Total available-for-sale (net of credit losses) 4,528,348  3,473,598  2,607,288  2,496,896  2,466,640 
Total investment securities (net of credit losses)$5,137,848 $3,806,629 $2,654,390 $2,548,616 $2,520,608 
Fair value - HTM investment securities$597,694 $341,925 $49,064 $53,751 $55,714 
                
Investment Securities - QTD Average               
Taxable securities$2,471,291 $1,757,234 $1,534,742 $1,642,083 $2,324,188 
Tax exempt securities 1,919,919  1,528,127  1,155,099  866,944  900,223 
Total investment securities - QTD average$4,391,210 $3,285,361 $2,689,841 $2,509,027 $3,224,411 
                


Simmons First National Corporation   SFNC 
Consolidated Loans               
For the Quarters Ended Mar 31  Dec 31  Sep 30  Jun 30  Mar 31 
(Unaudited) 2021  2020  2020  2020  2020 
($ in thousands)               
Loan Portfolio - End of Period               
Consumer               
Credit cards$175,458 $188,845 $180,848 $184,348 $188,596 
Other consumer 172,965  202,379  182,768  214,024  267,870 
Total consumer 348,423  391,224  363,616  398,372  456,466 
Real Estate               
Construction 1,451,841  1,596,255  1,853,360  2,010,256  2,024,118 
Single-family residential 1,730,056  1,880,673  1,997,070  2,207,087  2,343,543 
Other commercial real estate 5,638,010  5,746,863  6,132,823  6,316,444  6,466,104 
Total real estate 8,819,907  9,223,791  9,983,253  10,533,787  10,833,765 
Commercial               
Commercial 2,444,700  2,574,386  2,907,798  3,038,216  2,314,472 
Agricultural 155,921  175,905  241,687  217,715  191,535 
Total commercial 2,600,621  2,750,291  3,149,485  3,255,931  2,506,007 
Other 426,922  535,591  521,088  418,810  578,039 
Total Loans$12,195,873 $12,900,897 $14,017,442 $14,606,900 $14,374,277 
                


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) 2021   2020   2020   2020   2020 
($ in thousands)                   
Allowance for Credit Losses on Loans                   
Beginning balance, prior to adoption of ASC 326                $68,244 
Impact of adopting ASC 326 (1)                $151,377 
Beginning balance, after adoption of ASC 326$238,050  $248,251  $231,641  $243,195  $219,621 
                    
Loans charged off                   
Credit cards 1,003   787   832   1,053   1,441 
Other consumer 731   960   1,091   592   1,379 
Real estate 1,687   10,415   1,153   1,824   396 
Commercial 830   8,199   4,327   35,687   523 
Total loans charged off 4,251   20,361   7,403   39,156   3,739 
                    
Recoveries of loans previously charged off                   
Credit cards 290   241   276   272   225 
Other consumer 314   355   366   301   443 
Real estate 403   431   120   253   101 
Commercial 310   1,835   936   98   347 
Total recoveries 1,317   2,862   1,698   924   1,116 
Net loans charged off 2,934   17,499   5,705   38,232   2,623 
Provision for credit losses on loans -   7,298   22,315   26,678   26,197 
Balance, end of quarter$235,116  $238,050  $248,251  $231,641  $243,195 
                    
Non-performing assets                   
Non-performing loans                   
Nonaccrual loans$114,856  $122,879  $167,713  $131,383  $155,863 
Loans past due 90 days or more 635   578   174   494   1,160 
Total non-performing loans 115,491   123,457   167,887   131,877   157,023 
Other non-performing assets                   
Foreclosed assets and other real estate owned 11,168   18,393   12,590   14,111   20,805 
Other non-performing assets 1,229   2,016   1,983   2,008   2,169 
Total other non-performing assets 12,397   20,409   14,573   16,119   22,974 
Total non-performing assets$127,888  $143,866  $182,460  $147,996  $179,997 
Performing TDRs (troubled debt restructurings)$3,804  $3,138  $3,379  $3,960  $4,110 
                    
Ratios                   
Allowance for credit losses on loans to total loans 1.93%  1.85%  1.77%  1.59%  1.69%
Allowance for credit losses to non-performing loans 204%  193%  148%  176%  155%
Non-performing loans to total loans 0.95%  0.96%  1.20%  0.90%  1.09%
Non-performing assets (including performing TDRs)                   
to total assets 0.56%  0.66%  0.87%  0.69%  0.88%
Non-performing assets to total assets 0.55%  0.64%  0.85%  0.68%  0.86%
Annualized net charge offs to total loans 0.10%  0.52%  0.16%  1.04%  0.07%
Annualized net credit card charge offs to                   
total credit card loans 1.39%  1.15%  1.20%  1.67%  2.29%
                    
(1) The Company adopted ASC 326.effective January 1, 2020.    
      


Simmons First National Corporation         SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis      
For the Quarters Ended                          
(Unaudited)                          
 Three Months Ended
Mar 2021
 Three Months Ended
Dec 2020
 Three Months Ended
Mar 2020

($ 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$3,477,989 $798 0.09% $2,651,938 $716 0.11% $764,639 $2,441 1.28%
   Investment securities - taxable 2,471,291  10,120 1.66%  1,757,234  7,720 1.75%  2,324,188  12,752 2.21%
   Investment securities - non-taxable (FTE) 1,919,919  15,439 3.26%  1,528,127  12,778 3.33%  900,223  8,315 3.71%
   Mortgage loans held for sale 97,409  639 2.66%  179,275  1,070 2.37%  43,588  281 2.59%
   Loans - including fees (FTE) 12,518,300  146,601 4.75%  13,457,077  160,306 4.74%  14,548,853  187,747 5.19%
      Total interest earning assets (FTE) 20,484,908  173,597 3.44%  19,573,651  182,590 3.71%  18,581,491  211,536 4.58%
   Non-earning assets 2,253,913        2,278,443        2,338,732      
     Total assets$22,738,821       $21,852,094       $20,920,223      
                           
LIABILITIES AND STOCKHOLDERS' EQUITY                          
Interest bearing liabilities:                          
   Interest bearing transaction and                          
     savings accounts$10,093,868 $6,088 0.24% $9,389,570 $6,536 0.28% $9,005,701 $17,954 0.80%
   Time deposits 3,043,000  7,091 0.95%  2,823,166  7,835 1.10%  3,150,909  13,323 1.70%
      Total interest bearing deposits 13,136,868  13,179 0.41%  12,212,736  14,371 0.47%  12,156,610  31,277 1.03%
   Federal funds purchased and securities                          
     sold under agreement to repurchase 307,540  245 0.32%  340,333  284 0.33%  330,902  759 0.92%
   Other borrowings 1,341,059  4,802 1.45%  1,342,403  4,869 1.44%  1,320,245  4,877 1.49%
   Subordinated notes and debentures 382,943  4,527 4.79%  382,808  4,624 4.81%  388,330  4,835 5.01%
      Total interest bearing liabilities 15,168,410  22,753 0.61%  14,278,280  24,148 0.67%  14,196,087  41,748 1.18%
Non-interest bearing liabilities:                          
   Non-interest bearing deposits 4,419,136        4,413,168        3,602,678      
   Other liabilities 177,819        204,014        251,514      
      Total liabilities 19,765,365        18,895,462        18,050,279      
Stockholders' equity 2,973,456        2,956,632        2,869,944      
      Total liabilities and stockholders' equity$22,738,821       $21,852,094       $20,920,223      
Net interest income (FTE)   $150,844       $158,442       $169,788   
Net interest spread (FTE)      2.83%       3.04%       3.40%
Net interest margin (FTE) - quarter-to-date      2.99%       3.22%       3.68%
                           
Net interest margin (FTE) - year-to-date      2.99%       3.38%       3.68%
                           
Core net interest margin (FTE) - quarter-to-date (1)      2.86%       3.04%       3.42%
Core loan yield (FTE) - quarter-to-date (1)      4.53%       4.47%       4.86%
                           
Core net interest margin (FTE) - year-to-date (1)      2.86%       3.16%       3.42%
Core loan yield (FTE) - year-to-date (1)      4.53%       4.54%       4.86%
                           
(1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.
            


Simmons First National Corporation   SFNC
 
Consolidated - Selected Financial Data     
For the Quarters Ended Mar 31   Dec 31   Sep 30   Jun 30   Mar 31 
(Unaudited) 2021   2020   2020   2020   2020 
($ in thousands, except share data)                   
QUARTER-TO-DATE                   
Financial Highlights - GAAP                   
Net Income$67,407  $52,955  $65,885  $58,789  $77,223 
Diluted earnings per share 0.62   0.49   0.60   0.54   0.68 
Return on average assets 1.20%  0.96%  1.20%  1.08%  1.48%
Return on average common equity 9.20%  7.13%  8.91%  8.21%  10.83%
Return on tangible common equity 15.85%  12.48%  15.45%  14.55%  19.00%
Net interest margin (FTE) 2.99%  3.22%  3.21%  3.42%  3.68%
FTE adjustment 4,163   3,482   2,864   2,350   2,305 
Amortization of intangibles 3,344   3,351   3,362   3,369   3,413 
Amortization of intangibles, net of taxes 2,470   2,475   2,483   2,489   2,521 
Average diluted shares outstanding 108,655,293   108,888,264   109,207,294   109,130,866   113,137,223 
Shares repurchased under plan 130,916   1,034,364   -   -   4,922,336 
Average price of shares repurchased 23.53   19.36   -   -   18.96 
Cash dividends declared per common share 0.18   0.17   0.17   0.17   0.17 
Financial Highlights - Core (non-GAAP)                   
Core earnings (excludes non-core items) (1)$63,995  $61,977  $68,338  $60,147  $73,838 
Core diluted earnings per share (1) 0.59   0.57   0.63   0.55   0.65 
Core net interest margin (FTE) (2) 2.86%  3.04%  3.02%  3.18%  3.42%
Accretable yield on acquired loans 6,630   8,999   8,948   11,723   11,837 
Efficiency ratio (1) 57.77%  55.27%  54.12%  51.46%  57.79%
Core return on average assets (1) 1.14%  1.13%  1.25%  1.11%  1.42%
Core return on average common equity (1) 8.73%  8.34%  9.24%  8.40%  10.35%
Core return on tangible common equity (1) 15.08%  14.51%  16.00%  14.87%  18.19%
YEAR-TO-DATE                   
Financial Highlights - GAAP                   
Net Income$67,407  $254,852  $201,897  $136,012  $77,223 
Diluted earnings per share 0.62   2.31   1.83   1.22   0.68 
Return on average assets 1.20%  1.18%  1.25%  1.28%  1.48%
Return on average common equity 9.20%  8.72%  9.27%  9.45%  10.83%
Return on tangible common equity 15.85%  15.25%  16.19%  16.57%  19.00%
Net interest margin (FTE) 2.99%  3.38%  3.43%  3.55%  3.68%
FTE adjustment 4,163   11,001   7,519   4,655   2,305 
Amortization of intangibles 3,344   13,495   10,144   6,782   3,413 
Amortization of intangibles, net of taxes 2,470   9,968   7,493   5,010   2,521 
Average diluted shares outstanding 108,655,293   110,173,661   110,480,508   111,083,999   113,137,223 
Cash dividends declared per common share 0.18   0.68   0.51   0.34   0.17 
Financial Highlights - Core (non-GAAP)                   
Core earnings (excludes non-core items) (1)$63,995  $264,300  $202,323  $133,985  $73,838 
Core diluted earnings per share (1) 0.59   2.40   1.83   1.21   0.65 
Core net interest margin (FTE) (2) 2.86%  3.16%  3.20%  3.30%  3.42%
Accretable yield on acquired loans 6,630   41,507   32,508   23,560   11,837 
Efficiency ratio (1) 57.77%  54.66%  54.46%  54.62%  57.79%
Core return on average assets (1) 1.14%  1.22%  1.26%  1.26%  1.42%
Core return on average common equity (1) 8.73%  9.05%  9.29%  9.31%  10.35%
Core return on tangible common equity (1) 15.08%  15.79%  16.22%  16.33%  18.19%
END OF PERIOD                   
Book value per share$27.04  $27.53  $26.98  $26.64  $26.11 
Tangible book value per share 16.13   16.56   16.07   15.79   15.22 
Shares outstanding 108,345,732   108,077,662   109,023,781   108,994,389   108,966,331 
Full-time equivalent employees 2,962   2,923   2,904   2,939   3,079 
Total number of financial centers 198   204   226   226   240 
                    
(1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.
(2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.
      


Simmons First National Corporation   SFNC
 
Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Quarter-to-Date 
For the Quarters Ended Mar 31   Dec 31   Sep 30   Jun 30   Mar 31 
(Unaudited) 2021   2020   2020   2020   2020 
($ in thousands, except per share data)                   
QUARTER-TO-DATE                   
Net Income$67,407  $52,955  $65,885  $58,789  $77,223 
Non-core items                   
Gain on sale of branches (5,477)  (275)  -   (2,204)  (5,889)
Merger-related costs 233   731   902   1,830   1,068 
Early retirement program -   62   2,346   493   - 
Branch right-sizing (net) 625   11,696   72   1,721   238 
Tax effect (1) 1,207   (3,192)  (867)  (482)  1,198 
Net non-core items (3,412)  9,022   2,453   1,358   (3,385)
Core earnings (non-GAAP)$63,995  $61,977  $68,338  $60,147  $73,838 
                    
Diluted earnings per share$0.62  $0.49  $0.60  $0.54  $0.68 
Non-core items                   
Gain on sale of branches (0.05)  -   -   (0.02)  (0.05)
Merger-related costs -   -   0.01   0.02   0.01 
Early retirement program -   -   0.02   -   - 
Branch right-sizing (net) 0.01   0.11   -   0.02   - 
Tax effect (1) 0.01   (0.03)  -   (0.01)  0.01 
Net non-core items (0.03)  0.08   0.03   0.01   (0.03)
Core diluted earnings per share (non-GAAP)$0.59  $0.57  $0.63  $0.55  $0.65 
                    
(1) Effective tax rate of 26.135%.                   
                    
Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP) 
      
QUARTER-TO-DATE                   
Other income$10,260  $10,557  $5,380  $9,809  $12,801 
Non-core items (1) (5,477)  (275)  (370)  (2,204)  (5,889)
Core other income (non-GAAP)$4,783  $10,282  $5,010  $7,605  $6,912 
                    
Non-interest expense$115,356  $128,135  $118,949  $117,598  $128,813 
Non-core items (1) (858)  (12,489)  (3,690)  (4,044)  (1,306)
Core non-interest expense (non-GAAP)$114,498  $115,646  $115,259  $113,554  $127,507 
                    
Salaries and employee benefits$60,340  $55,762  $61,144  $57,644  $67,924 
Non-core items (1) -   (144)  (2,448)  (493)  - 
Core salaries and employee benefits (non-GAAP)$60,340  $55,618  $58,696  $57,151  $67,924 
                    
Merger related costs$233  $731  $902  $1,830  $1,068 
Non-core items (1) (233)  (731)  (902)  (1,830)  (1,068)
Core merger related costs (non-GAAP)$-  $-  $-  $-  $- 
                    
Other operating expenses$38,417  $54,342  $38,179  $39,651  $41,788 
Non-core items (1) (208)  (10,270)  (11)  (1,662)  (212)
Core other operating expenses (non-GAAP)$38,209  $44,072  $38,168  $37,989  $41,576 
                    
(1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and branch right-sizing costs.
      


Simmons First National Corporation    SFNC 
Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Year-to-Date 
For the Quarters Ended Mar 31   Dec 31   Sep 30   Jun 30   Mar 31 
(Unaudited) 2021   2020   2020   2020   2020 
($ in thousands, except per share data)                   
YEAR-TO-DATE                   
Net Income$67,407  $254,852  $201,897  $136,012  $77,223 
Non-core items                   
Gain on sale of branches (5,477)  (8,368)  (8,093)  (8,093)  (5,889)
Merger-related costs 233   4,531   3,800   2,898   1,068 
Early retirement program -   2,901   2,839   493   - 
Branch right-sizing (net) 625   13,727   2,031   1,959   238 
Tax effect (1) 1,207   (3,343)  (151)  716   1,198 
Net non-core items (3,412)  9,448   426   (2,027)  (3,385)
Core earnings (non-GAAP)$63,995  $264,300  $202,323  $133,985  $73,838 
                    
Diluted earnings per share$0.62  $2.31  $1.83  $1.22  $0.68 
Non-core items                   
Gain on sale of branches (0.05)  (0.07)  (0.07)  (0.07)  (0.05)
Merger-related costs -   0.04   0.03   0.03   0.01 
Early retirement program -   0.03   0.02   -   - 
Branch right-sizing (net) 0.01   0.12   0.02   0.02   - 
Tax effect (1) 0.01   (0.03)  -   0.01   0.01 
Net non-core items (0.03)  0.09   -   (0.01)  (0.03)
Core diluted earnings per share (non-GAAP)$0.59  $2.40  $1.83  $1.21  $0.65 
                    
(1) Effective tax rate of 26.135%.                   
                    
Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP) 
      
YEAR-TO-DATE     
Other income$10,260  $38,547  $27,990  $22,610  $12,801 
Non-core items (1) (5,477)  (8,738)  (8,463)  (8,093)  (5,889)
Core other income (non-GAAP)$4,783  $29,809  $19,527  $14,517  $6,912 
                    
Non-interest expense$115,356  $493,495  $365,360  $246,411  $128,813 
Non-core items (1) (858)  (21,529)  (9,040)  (5,350)  (1,306)
Core non-interest expense (non-GAAP)$114,498  $471,966  $356,320  $241,061  $127,507 
                    
Salaries and employee benefits$60,340  $242,474  $186,712  $125,568  $67,924 
Non-core items (1) -   (3,085)  (2,941)  (493)  - 
Core salaries and employee benefits (non-GAAP)$60,340  $239,389  $183,771  $125,075  $67,924 
                    
Merger related costs$233  $4,531  $3,800  $2,898  $1,068 
Non-core items (1) (233)  (4,531)  (3,800)  (2,898)  (1,068)
Core merger related costs (non-GAAP)$-  $-  $-  $-  $- 
                    
Other operating expenses$38,417  $173,960  $119,618  $81,439  $41,788 
Non-core items (1) (208)  (12,155)  (1,885)  (1,874)  (212)
Core other operating expenses (non-GAAP)$38,209  $161,805  $117,733  $79,565  $41,576 
                    
(1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and branch right-sizing costs.
      


Simmons First National Corporation     SFNC 
Reconciliation Of Non-GAAP Financial Measures - End of Period   
For the Quarters Ended Mar 31   Dec 31   Sep 30   Jun 30   Mar 31 
(Unaudited) 2021   2020   2020   2020   2020 
($ in thousands, except per share data)                   
                    
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets 
      
Total common stockholders' equity$2,930,008  $2,975,889  $2,941,474  $2,903,936  $2,844,633 
Intangible assets:                   
Goodwill (1,075,305)  (1,075,305)  (1,075,305)  (1,064,765)  (1,064,978)
Other intangible assets (107,091)  (111,110)  (114,460)  (117,823)  (121,673)
Total intangibles (1,182,396)  (1,186,415)  (1,189,765)  (1,182,588)  (1,186,651)
Tangible common stockholders' equity$1,747,612  $1,789,474  $1,751,709  $1,721,348  $1,657,982 
                    
Total assets$23,348,117  $22,359,752  $21,437,395  $21,903,684  $20,841,352 
Intangible assets:                   
Goodwill (1,075,305)  (1,075,305)  (1,075,305)  (1,064,765)  (1,064,978)
Other intangible assets (107,091)  (111,110)  (114,460)  (117,823)  (121,673)
Total intangibles (1,182,396)  (1,186,415)  (1,189,765)  (1,182,588)  (1,186,651)
Tangible assets$22,165,721  $21,173,337  $20,247,630  $20,721,096  $19,654,701 
                    
Paycheck protection program ("PPP") loans (797,629)  (904,673)  (970,488)  (963,712)    
Total assets excluding PPP loans$22,550,488  $21,455,079  $20,466,907  $20,939,972     
Tangible assets excluding PPP loans$21,368,092  $20,268,664  $19,277,142  $19,757,384     
                    
Ratio of equity to assets 12.55%  13.31%  13.72%  13.26%  13.65%
Ratio of equity to assets excluding PPP loans 13.00%  13.87%  14.38%  13.87%    
Ratio of tangible common equity to tangible assets 7.88%  8.45%  8.65%  8.31%  8.44%
Ratio of tangible common equity to tangible assets excluding PPP loans 8.18%  8.83%  9.09%  8.71%    
                    
Calculation of Tangible Book Value per Share                   
                    
Total common stockholders' equity$2,930,008  $2,975,889  $2,941,474  $2,903,936  $2,844,633 
Intangible assets:                   
Goodwill (1,075,305)  (1,075,305)  (1,075,305)  (1,064,765)  (1,064,978)
Other intangible assets (107,091)  (111,110)  (114,460)  (117,823)  (121,673)
Total intangibles (1,182,396)  (1,186,415)  (1,189,765)  (1,182,588)  (1,186,651)
Tangible common stockholders' equity$1,747,612  $1,789,474  $1,751,709  $1,721,348  $1,657,982 
Shares of common stock outstanding 108,345,732   108,077,662   109,023,781   108,994,389   108,966,331 
Book value per common share$27.04  $27.53  $26.98  $26.64  $26.11 
Tangible book value per common share$16.13  $16.56  $16.07  $15.79  $15.22 
                    
Calculation of Regulatory Tier 1 Leverage Ratio Excluding Average PPP Loans   
                    
Total Tier 1 capital$1,939,868  $1,884,563  $1,868,173  $1,820,488     
                    
Adjusted average assets for leverage ratio$21,668,406  $20,765,127  $20,652,454  $20,742,824     
Average PPP loans (891,070)  (937,544)  (967,152)  (645,172)    
Adjusted average assets excluding average PPP loans$20,777,336  $19,827,583  $19,685,302  $20,097,652     
                    
Tier 1 leverage ratio 8.95%  9.08%  9.05%  8.78%    
Tier 1 leverage ratio excluding average PPP loans 9.34%  9.50%  9.49%  9.06%    
                    


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) 2021   2020   2020   2020   2020 
($ in thousands)                   
Calculation of Core Return on Average Assets                   
                    
Net income$67,407  $52,955  $65,885  $58,789  $77,223 
Net non-core items, net of taxes, adjustment (3,412)  9,022   2,453   1,358   (3,385)
Core earnings$63,995  $61,977  $68,338  $60,147  $73,838 
                    
Average total assets$22,738,821  $21,852,094  $21,765,321  $21,822,273  $20,920,223 
                    
Return on average assets 1.20%  0.96%  1.20%  1.08%  1.48%
Core return on average assets 1.14%  1.13%  1.25%  1.11%  1.42%
                    
Calculation of Return on Tangible Common Equity                   
                    
Net income$67,407  $52,955  $65,885  $58,789  $77,223 
Amortization of intangibles, net of taxes 2,470   2,475   2,483   2,489   2,521 
Total income available to common stockholders$69,877  $55,430  $68,368  $61,278  $79,744 
                    
Net non-core items, net of taxes (3,412)  9,022   2,453   1,358   (3,385)
Core earnings 63,995   61,977   68,338   60,147   73,838 
Amortization of intangibles, net of taxes 2,470   2,475   2,483   2,489   2,521 
Total core income available to common stockholders$66,465  $64,452  $70,821  $62,636  $76,359 
                    
Average common stockholders' equity$2,972,689  $2,955,865  $2,942,045  $2,879,337  $2,869,177 
Average intangible assets:                   
Goodwill (1,075,305)  (1,075,305)  (1,064,893)  (1,064,955)  (1,055,498)
Other intangibles (109,850)  (113,098)  (116,385)  (120,111)  (125,746)
Total average intangibles (1,185,155)  (1,188,403)  (1,181,278)  (1,185,066)  (1,181,244)
Average tangible common stockholders' equity$1,787,534  $1,767,462  $1,760,767  $1,694,271  $1,687,933 
                    
Return on average common equity 9.20%  7.13%  8.91%  8.21%  10.83%
Return on tangible common equity 15.85%  12.48%  15.45%  14.55%  19.00%
Core return on average common equity 8.73%  8.34%  9.24%  8.40%  10.35%
Core return on tangible common equity 15.08%  14.51%  16.00%  14.87%  18.19%
                    
Calculation of Efficiency Ratio (1)                   
                    
Non-interest expense$115,356  $128,135  $118,949  $117,598  $128,813 
Non-core non-interest expense adjustment (858)  (12,489)  (3,690)  (4,044)  (1,306)
Other real estate and foreclosure expense adjustment (343)  (545)  (600)  (242)  (319)
Amortization of intangibles adjustment (3,344)  (3,351)  (3,362)  (3,369)  (3,413)
Efficiency ratio numerator$110,811  $111,750  $111,297  $109,943  $123,775 
                    
Net-interest income$146,681  $154,960  $153,610  $163,681  $167,483 
Non-interest income 51,903   44,056   71,851   50,227   82,394 
Non-core non-interest income adjustment (5,477)  (275)  (370)  (2,204)  (5,889)
Fully tax-equivalent adjustment (effective tax rate of 26.135%) 4,163   3,482   2,864   2,350   2,305 
Gain on sale of securities (5,471)  (16)  (22,305)  (390)  (32,095)
Efficiency ratio denominator$191,799  $202,207  $205,650  $213,664  $214,198 
                    
Efficiency ratio (1) 57.77%  55.27%  54.12%  51.46%  57.79%
                    
(1) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items.
  


Simmons First National Corporation     SFNC 
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)  
For the Quarters Ended Mar 31   Dec 31   Sep 30   Jun 30   Mar 31 
(Unaudited) 2021   2020   2020   2020   2020 
($ in thousands)                   
Calculation of Core Net Interest Margin                   
                    
Net interest income$146,681  $154,960  $153,610  $163,681  $167,483 
Fully tax-equivalent adjustment (effective tax rate of 26.135%) 4,163   3,482   2,864   2,350   2,305 
Fully tax-equivalent net interest income 150,844   158,442   156,474   166,031   169,788 
                    
Total accretable yield (6,630)  (8,999)  (8,948)  (11,723)  (11,837)
Core net interest income$144,214  $149,443  $147,526  $154,308  $157,951 
                    
PPP loan and additional liquidity interest income (12,257)  (6,983)  (6,131) $(5,623)    
Net interest income adjusted for PPP loans and liquidity$138,587  $151,459  $150,343  $160,408     
                    
Average earning assets$20,484,908  $19,573,651  $19,415,314  $19,517,475  $18,581,491 
Average PPP loan balance and additional liquidity (3,617,567)  (2,837,125)  (2,359,928) $(2,071,411)    
Average earning assets adjusted for PPP loans and liquidity$16,867,341  $16,736,526  $17,055,386  $17,446,064     
                    
Net interest margin 2.99%  3.22%  3.21%  3.42%  3.68%
Core net interest margin 2.86%  3.04%  3.02%  3.18%  3.42%
Net interest margin adjusted for PPP loans and liquidity 3.33%  3.60%  3.51%  3.70%    
                    
Calculation of Core Loan Yield                   
                    
Loan interest income (FTE)$146,601  $160,306  $163,379  $177,168  $187,566 
Total accretable yield (6,630)  (8,999)  (8,948)  (11,723)  (11,837)
Core loan interest income$139,971  $151,307  $154,431  $165,445  $175,729 
PPP loan interest income (11,652)  (6,457)  (5,782) $(3,733)    
Core loan interest income without PPP loans$128,319  $144,850  $148,649  $161,712     
                    
Average loan balance$12,518,300  $13,457,077  $14,315,014  $14,731,306  $14,548,853 
Average PPP loan balance (891,070)  (937,544)  (967,152) $(645,172)    
Average loan balance without PPP loans$11,627,230  $12,519,533  $13,347,862  $14,086,134     
                    
Core loan yield 4.53%  4.47%  4.29%  4.52%  4.86%
Core loan yield without PPP loans 4.48%  4.60%  4.43%  4.62%    
                    
Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings    
      
Net income available to common stockholders$67,407  $52,955  $65,885  $58,789  $77,223 
Provision for income taxes 14,363   10,970   17,633   15,593   20,694 
Provision for credit losses (including provision for unfunded commitments) 1,445   6,943   22,981   21,915   23,134 
(Gain) loss on sale of securities (5,471)  (16)  (22,305)  (390)  (32,095)
Net pre-tax non-core items (4,619)  12,214   3,320   1,840   (4,583)
Adjusted Pre-tax, pre-provision (PTPP) earnings$73,125  $83,066  $87,514  $97,747  $84,373 
                    


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) 2021   2020   2020   2020   2020 
($ in thousands)                   
Calculation of Core Return on Average Assets                   
                    
Net income$67,407  $254,852  $201,897  $136,012  $77,223 
Net non-core items, net of taxes, adjustment (3,412)  9,448   426   (2,027)  (3,385)
Core earnings$63,995  $264,300  $202,323  $133,985  $73,838 
                    
Average total assets$22,738,821  $21,590,745  $21,503,564  $21,371,248  $20,920,223 
                    
Return on average assets 1.20%  1.18%  1.25%  1.28%  1.48%
Core return on average assets 1.14%  1.22%  1.26%  1.26%  1.42%
                    
Calculation of Return on Tangible Common Equity                   
                    
Net income$67,407  $254,852  $201,897  $136,012  $77,223 
Amortization of intangibles, net of taxes 2,470   9,968   7,493   5,010   2,521 
Total income available to common stockholders$69,877  $264,820  $209,390  $141,022  $79,744 
                    
Net non-core items, net of taxes (3,412)  9,448   426   (2,027)  (3,385)
Core earnings 63,995   264,300   202,323   133,985   73,838 
Amortization of intangibles, net of taxes 2,470   9,968   7,493   5,010   2,521 
Total core income available to common stockholders$66,465  $274,268  $209,816  $138,995  $76,359 
                    
Average common stockholders' equity$2,972,689  $2,921,039  $2,910,366  $2,894,351  $2,869,177 
Average intangible assets:                   
Goodwill (1,075,305)  (1,065,190)  (1,061,793)  (1,060,226)  (1,055,498)
Other intangibles (109,850)  (118,812)  (120,731)  (122,928)  (125,746)
Total average intangibles (1,185,155)  (1,184,002)  (1,182,524)  (1,183,154)  (1,181,244)
Average tangible common stockholders' equity$1,787,534  $1,737,037  $1,727,842  $1,711,197  $1,687,933 
                    
Return on average common equity 9.20%  8.72%  9.27%  9.45%  10.83%
Return on tangible common equity 15.85%  15.25%  16.19%  16.57%  19.00%
Core return on average common equity 8.73%  9.05%  9.29%  9.31%  10.35%
Core return on tangible common equity 15.08%  15.79%  16.22%  16.33%  18.19%
                    
Calculation of Efficiency Ratio (1)                   
                    
Non-interest expense$115,356  $493,495  $365,360  $246,411  $128,813 
Non-core non-interest expense adjustment (858)  (21,529)  (9,040)  (5,350)  (1,306)
Other real estate and foreclosure expense adjustment (343)  (1,706)  (1,161)  (561)  (319)
Amortization of intangibles adjustment (3,344)  (13,495)  (10,144)  (6,782)  (3,413)
Efficiency ratio numerator$110,811  $456,765  $345,015  $233,718  $123,775 
                    
Net-interest income$146,681  $639,734  $484,774  $331,164  $167,483 
Non-interest income 51,903   248,528   204,472   132,621   82,394 
Non-core non-interest income adjustment (5,477)  (8,738)  (8,463)  (8,093)  (5,889)
Fully tax-equivalent adjustment (effective tax rate of 26.135%) 4,163   11,001   7,519   4,655   2,305 
Gain on sale of securities (5,471)  (54,806)  (54,790)  (32,485)  (32,095)
Efficiency ratio denominator$191,799  $835,719  $633,512  $427,862  $214,198 
                    
Efficiency ratio (1) 57.77%  54.66%  54.46%  54.62%  57.79%
                    
(1) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items.
  


Simmons First National Corporation      SFNC  
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date (continued)   
For the Quarters Ended Mar 31   Dec 31   Sep 30   Jun 30   Mar 31 
(Unaudited) 2021   2020   2020   2020   2020 
($ in thousands)                   
Calculation of Core Net Interest Margin                   
                    
Net interest income$146,681  $639,734  $484,774  $331,164  $167,483 
Fully tax-equivalent adjustment (effective tax rate of 26.135%) 4,163   11,001   7,519   4,655   2,305 
Fully tax-equivalent net interest income 150,844   650,735   492,293   335,819   169,788 
                    
Total accretable yield (6,630)  (41,507)  (32,508)  (23,560)  (11,837)
Core net interest income$144,214  $609,228  $459,785  $312,259  $157,951 
Average earning assets$20,484,908  $19,272,886  $19,172,318  $19,049,487  $18,581,491 
                    
Net interest margin 2.99%  3.38%  3.43%  3.55%  3.68%
Core net interest margin 2.86%  3.16%  3.20%  3.30%  3.42%
                    
Calculation of Core Loan Yield                   
                    
Loan interest income (FTE)$146,601  $688,600  $528,294  $364,915  $187,566 
Total accretable yield (6,630)  (41,507)  (32,508)  (23,560)  (11,837)
Core loan interest income$139,971  $647,093  $495,786  $341,355  $175,729 
Average loan balance$12,518,300  $14,260,689  $14,530,938  $14,640,082  $14,548,853 
                    
Core loan yield 4.53%  4.54%  4.56%  4.69%  4.86%
                    
Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings                   
                    
Net income available to common stockholders$67,407  $254,852  $201,897  $136,012  $77,223 
Provision for income taxes 14,363   64,890   53,920   36,287   20,694 
Provision for credit losses (including provision for unfunded commitments) 1,445   74,973   68,030   45,049   23,134 
(Gain) loss on sale of securities (5,471)  (54,806)  (54,790)  (32,485)  (32,095)
Net pre-tax non-core items (4,619)  12,791   577   (2,743)  (4,583)
Adjusted Pre-tax, pre-provision (PTPP) earnings$73,125  $352,700  $269,634  $182,120  $84,373