Simmons First National Corporation Reports First Quarter 2022 Diluted EPS of $0.58

Rhea-AI Summary

Simmons First National Corporation (NASDAQ: SFNC) reported Q1 2022 net income of $65.1 million ($0.58 per share), down from $67.4 million in Q1 2021. Core earnings rose to $67.2 million ($0.59 per share). Newly funded loans reached $2.5 billion, exceeding paydowns, while total deposits remained stable at $19.4 billion. The commercial loan pipeline grew to $2.4 billion, marking the sixth quarter of increased activity. Regulatory capital ratios exceed guidelines, with a CET1 ratio of 13.52%. Post-quarter, the acquisition of Spirit of Texas Bancshares was completed, enhancing Simmons' Texas presence.

Positive

• Core earnings increased to $67.2 million, up from $64.0 million in Q1 2021.
• Total deposits stable at $19.4 billion, driven by low-cost deposit growth.
• Commercial loan pipeline expanded to $2.4 billion, indicating robust demand.
• Improved credit quality metrics, as nonperforming loans dropped to 0.53%.
• Regulatory capital ratios well above 'well-capitalized' standards; CET1 at 13.52%.

Negative

• Net income decreased to $65.1 million from $67.4 million YoY.
• Total loans unchanged at $12.0 billion, impacted by PPP loan forgiveness.
• Net interest income decreased to $145.6 million, down from $146.7 million YoY.

Key Highlights in the First Quarter of 2022:

• Net income of $65.1 million, or $0.58 on a fully diluted per share basis

• Core earnings of $67.2 million, or $0.59 on a fully diluted per share basis
  

• Newly funded loans and advances top $2.5 billion in the quarter, outpacing loan paydowns and payoffs
  

• Commercial loan pipeline reaches $2.4 billion, marks 6th consecutive quarter of increased activity; unfunded commitments record second straight double-digit quarterly increase, rising to $3.4 billion
  

• Total deposits increase to $19.4 billion while reflecting continued success in growth of low-cost deposits and effectively managing rates; cost of deposits drops to 14 bps, down 3 bps on a linked quarter basis
  

• Continued improvement in credit quality metrics and economic scenarios drive provision benefit in the quarter; nonperforming loan ratio drops to 53 bps, NPL coverage ratio remains strong at 278 percent
  

• Regulatory capital ratios remain significantly above “well-capitalized” guidelines; CET1 ratio ends the quarter at 13.52 percent, total risked-based capital ratio stands at 16.42 percent
  

• Acquisition of Spirit of Texas Bancshares, Inc. closed shortly after quarter end, less than five months after announcement; systems conversion completed over two-day weekend, and branches opened on April 11 as Simmons Bank
  

PINE BLUFF, Ark., April 28, 2022 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $65.1 million for the first quarter of 2022, compared to $67.4 million in the first quarter of 2021. Diluted earnings per share were $0.58 for the first quarter of 2022, compared to $0.62 for the first quarter of 2021. Included in first quarter 2022 results were $2.1 million in net after-tax merger related and net branch right-sizing costs, while first quarter 2021 results included a $3.4 million net after-tax benefit primarily associated with a gain on sale of branches in Illinois. Excluding the impact of these items, core earnings for the first quarter of 2022 were $67.2 million, compared to $64.0 million for the first quarter of 2021. Core diluted earnings per share were $0.59 for both the first quarter of 2022 and the first quarter of 2021.

“Simmons posted solid results in the quarter driven by accelerating loan demand across our footprint and continued growth of low-cost deposits,” said George A. Makris, Jr., Simmons’ chairman and CEO. “We also delivered another quarter of exceptional credit performance, with nonperforming assets dropping to historically low levels. Equally important, we were able to achieve these results while simultaneously completing the acquisition and conversion of Spirit of Texas Bancshares, Inc. shortly after the end of the quarter. This acquisition more than doubles our size and scale in the Lone Star State, while complementing our existing presence in the Dallas-Fort Worth market and adding a platform for growth in Houston, Austin, San Antonio, Corpus Christi and College Station, as well as a number of other attractive community markets.”

“While we are encouraged by our results to start the year, we also recognize the challenges ahead given expectations that interest rates are most likely to increase further during the remainder of 2022, the impact elevated inflation levels have on the cost of everyday goods and services, and the global unrest that adds uncertainty to the financial markets and potentially future economic growth. In times like this, it certainly helps to have strong capital and liquidity positions, a commitment to maintaining strong underwriting standards and a team that is focused on meeting challenges head-on, while working to ensure we provide our customers exceptional service and access to the products and services they need to successfully manage their financial needs.”  

Selected Highlights: $ in millions, except per share data	Q1 22	Q4 21	Q3 21	Q2 21	Q1 21
Net income	$65.1	$48.2	$80.6	$74.9	$67.4
Diluted earnings per share	$0.58	$0.42	$0.74	$0.69	$0.62
Cash dividend per share	$0.19	$0.18	$0.18	$0.18	$0.18
Return on average assets	1.06%	0.77%	1.37%	1.29%	1.20%
Return on average common equity	8.33%	5.87%	10.42%	10.08%	9.20%
Return on tangible common equity (1)	14.31%	9.98%	17.43%	17.25%	15.85%
Core earnings (2)	$67.2	$59.5	$79.4	$75.4	$64.0
Core diluted earnings per share (2)	$0.59	$0.52	$0.73	$0.69	$0.59
Core return on average assets (2)	1.10%	0.96%	1.35%	1.30%	1.14%
Core return on average common equity (2)	8.59%	7.24%	10.26%	10.15%	8.73%
Core return on tangible common equity (1)(2)	14.74%	12.19%	17.18%	17.36%	15.08%
Efficiency ratio (3)	62.95%	59.48%	58.10%	56.75%	57.25%
Adjusted pre-tax, pre-provision earnings (2)	$62.3	$73.7	$72.6	$74.6	$73.1

^{(1)   Return on tangible common equity excludes goodwill and other intangible assets and is a non-GAAP measurement. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(2)   Core and adjusted figures exclude certain items and are non-GAAP measurements. See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
(3)   Efficiency ratio is a non-GAAP measurement. See “Reconciliation of Non-GAAP Financial Measures” below.}

Loans and Unfunded Loan Commitments
$ in millions	Q1 22		Q4 21		Q3 21		Q2 21		Q1 21
Total loans	$12,029		$12,013		$10,825		$11,386		$12,196
PPP loans	$62		$117		$212		$441		$798
Mortgage warehouse loans	$166		$230		$275		$307		$355
Energy loans	$48		$105		$128		$174		$247
Total loans, excluding PPP, mortgage warehouse, and energy loans (core loans)	$11,753		$11,561		$10,210		$10,464		$10,796
Unfunded loan commitments	$3,428		$2,943		$2,254		$2,130		$2,039

Total loans at the end of the first quarter of 2022 were $12.0 billion, compared to $12.0 billion at the end of the fourth quarter of 2021 and $12.2 billion at the end of the first quarter of 2021. While total loans were up slightly on a linked quarter basis, continued forgiveness of Paycheck Protection Program (PPP) loans, an industry-wide decline in mortgage warehouse loans due to changing market conditions and continued planned run-off in the energy portfolio offset overall loan growth. Excluding these items, core loans on a linked quarter annualized basis were up 7 percent. Equally important, newly funded loans and advances during the quarter totaled $2.5 billion, significantly outpacing loan paydowns and payoffs in the quarter.

Further evidence suggesting a return to more normalized levels of loan demand continued to materialize during the quarter. Unfunded commitments – which the Company considers a strong indicator of potential future loan growth – rose for the fourth consecutive quarter to $3.4 billion at quarter end, up 16 percent on a linked quarter basis and following a 31 percent linked quarter increase in the fourth quarter of 2021. At the same time, momentum in our commercial loan pipeline continued to strengthen with all loan opportunities totaling $2.4 billion at the end of the quarter, up from $2.3 billion at the end of the fourth quarter of 2021. This marked the sixth consecutive quarter of increased activity in our commercial loan pipeline. As expected, loan growth was more heavily weighted toward the latter portion of the quarter, with commercial loans approved and ready to close at the end of the quarter totaling $775.7 million, up 25 percent compared to the balance at the end of the fourth quarter of 2021.

Deposits
$ in billions	Q1 22		Q4 21		Q3 21		Q2 21		Q1 21
Total deposits	$19.4		$19.4		$18.1		$18.3		$18.2
Noninterest bearing deposits	$5.2		$5.3		$4.9		$4.9		$4.9
Interest bearing deposits	$12.1		$11.6		$10.7		$10.6		$10.3
Time deposits	$2.1		$2.5		$2.5		$2.8		$3.0

Total deposits at the end of the first quarter of 2022 were $19.4 billion, unchanged from fourth quarter 2021 levels and up $1.2 billion, or 7 percent, from $18.2 billion at the end of the first quarter of 2021. The increase in deposits from the year-ago quarter primarily reflects the acquisitions of Landmark Community Bank and Triumph Bancshares, Inc., which were completed in the fourth quarter of 2021. Total noninterest bearing deposit accounts totaled $5.2 billion at the end of the first quarter of 2022, compared to $5.3 billion at the end of the fourth quarter of 2021 and $4.9 billion at the end of the first quarter of 2021. Interest bearing deposits (checking, savings and money market accounts) totaled $12.1 billion at the end of the first quarter of 2022, up $517 million, or 4 percent, compared to $11.6 billion at the end of the fourth quarter of 2021, and up $1.8 billion, or 18 percent, compared to $10.3 billion at the end of the first quarter of 2021. At the same time, time deposits totaled $2.1 billion at the end of the first quarter of 2022, down $390 million, or 16 percent, compared to $2.5 billion at the end of the fourth quarter of 2021, and down $962 million, or 32 percent, from the first quarter of 2021. The decrease in time deposits is attributable to maturing time deposits, coupled with a continued effort to improve our mix of deposits into lower cost deposits.

Net Interest Income
	Q1 22	Q4 21	Q3 21	Q2 21	Q1 21
Loan yield (1)	4.34%	4.58%	4.76%	4.73%	4.75%
Security yield (1)	1.86%	1.74%	1.77%	1.97%	2.36%
Cost of interest bearing deposits	0.19%	0.23%	0.27%	0.32%	0.41%
Cost of deposits (2)	0.14%	0.17%	0.20%	0.24%	0.30%
Cost of borrowed funds	1.94%	1.95%	1.96%	1.97%	1.91%
Net interest spread (1)	2.66%	2.74%	2.72%	2.74%	2.83%
Net interest margin (1)	2.76%	2.86%	2.85%	2.89%	2.99%

^{(1)   Fully tax equivalent using an effective tax rate of 26.135%.
(2)   Includes noninterest bearing deposits.}

Net interest income for the first quarter of 2022 totaled $145.6 million, compared to $153.1 million in the fourth quarter of 2021 and $146.7 million for the first quarter of 2021. Included in net interest income is interest income from PPP loans totaling $2.1 million in the first quarter of 2022, $5.1 million in the fourth quarter of 2021 and $11.7 million in the first quarter of 2021. Also included in net interest income is accretion recognized on loans acquired, which totaled $3.7 million in the first quarter of 2022, $5.8 million in the fourth quarter of 2021 and $6.6 million in the first quarter of 2021. The decrease in net interest income on a linked quarter and year-over-year basis reflects the lower contributions from accretion and PPP loans, a decrease in new loan yields compared to maturing or paid off loans and lower average loan balances, offset in part by our ability to continue to successfully reduce deposit costs.

The yield on loans for the first quarter of 2022 was 4.34 percent, compared to 4.58 percent in the fourth quarter of 2021 and 4.75 percent in the first quarter of 2021. Cost of deposits for the first quarter of 2022 was 14 basis points, down 3 basis points on a linked quarter basis and down 16 basis points compared to the first quarter of 2021. Net interest margin on a fully taxable equivalent basis was 2.76 percent, compared to 2.86 percent in the fourth quarter of 2021 and 2.99 percent in the first quarter of 2021. Excluding the impact of PPP loan interest income, the net interest margin was 2.74 percent for the first quarter of 2022, 2.79 percent for the fourth quarter of 2021 and 2.88 percent for the first quarter of 2021.

Noninterest Income
Noninterest income for the first quarter of 2022 was $42.2 million, compared to $46.6 million in the fourth quarter of 2021 and $49.5 million in the first quarter of 2021. Included in noninterest income is a settlement award of $1.4 million recorded in the first quarter of 2022, a settlement award of $3.1 million recorded in the fourth quarter of 2021 and a $5.3 million gain recorded in the first quarter of 2021 associated with the sale of branches in Illinois. Gains (losses) on sales of investment securities totaled $(54) thousand in the first quarter of 2022, $(348) thousand in the fourth quarter of 2021 and $5.5 million in the first quarter of 2021. The decrease in noninterest income compared to the year ago quarter was primarily attributable to the aforementioned items, coupled with a decrease in mortgage lending due to market conditions, offset in part by increases in service charges on deposit accounts (+10 percent), wealth management fees (+8 percent) and debit and credit card fees (+13 percent). The decrease in noninterest income on a linked quarter basis is partially due to the items noted above along with two fewer business days in the first quarter of 2022.

Select Noninterest Income Items $ in millions	Q1 22		Q4 21		Q3 21		Q2 21		Q1 21
Service charges on deposit accounts	$10.7		$11.9		$11.6		$10.1		$9.7
Wealth management fees	$8.0		$8.0		$7.9		$7.9		$7.4
Debit and credit card fees (1)	$7.4		$7.5		$7.1		$7.1		$6.6
Mortgage lending income	$4.6		$5.0		$5.8		$4.5		$6.4
Bank owned life insurance	$2.7		$2.8		$2.6		$2.0		$1.5
Gain on sale of securities	$(0.1)		$(0.4)		$5.2		$5.1		$5.5
Other income	$7.3		$10.0		$6.4		$8.4		$10.5
Core other income (2)	$7.3		$10.0		$6.7		$8.0		$5.0

^{(1)   During the second quarter of 2021, certain debit and credit card transaction fees were reclassified from noninterest expense to noninterest income. Prior periods have been adjusted to reflect this reclassification.
(2)   Core figures exclude certain items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.}

Noninterest Expense
Noninterest expense for the first quarter of 2022 was $128.4 million, compared to $141.6 million in the fourth quarter of 2021 and $113.0 million in the first quarter of 2021. Included in noninterest expense are certain items totaling $2.8 million in the first quarter of 2022, primarily associated with merger related costs and branch right-sizing costs. Excluding these items, core noninterest expense for the first quarter of 2022 was $125.6 million, compared to $126.4 million in the fourth quarter of 2021 and $112.1 million in the first quarter of 2021. The increase in noninterest expense on a year-over-year basis reflects the acquisitions of Landmark Community Bank and Triumph Bancshares, Inc., which were completed in the fourth quarter of 2021. The change in noninterest expense on a linked quarter basis reflects a decline in merger related costs, offset in part by normal seasonality with respect to payroll taxes at the beginning of the year, as well as a profit-sharing contribution associated with the Company’s 401(k) plan and costs associated with equity compensation. Noninterest expense as a percentage of average assets was 2.07 percent for the first quarter of 2022 and core noninterest expense as a percentage of average assets was 2.02 percent for the period.

Select Noninterest Expense Items $ in millions	Q1 22		Q4 21		Q3 21		Q2 21		Q1 21
Salaries and employee benefits	$67.9		$63.9		$61.9		$60.3		$60.3
Occupancy expense, net	$10.0		$11.0		$9.4		$9.1		$9.3
Furniture and equipment	$4.8		$4.7		$4.9		$4.9		$5.4
Merger related costs	$1.9		$13.6		$1.4		$0.7		$0.2
Other operating expenses (1)	$41.6		$45.7		$34.6		$37.2		$36.1
Core salaries and employee benefits (2)	$67.9		$63.8		$61.8		$60.3		$60.3
Core other operating expenses (2)	$40.9		$45.8		$38.3		$37.1		$35.9

^{(1)   During the second quarter of 2021, certain debit and credit card transaction fees were reclassified from noninterest expense to noninterest income. Prior periods have been adjusted to reflect this reclassification.
(2)   Core figures exclude certain items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.}

Asset Quality
$ in millions	Q1 22	Q4 21	Q3 21	Q2 21	Q1 21
Allowance for credit losses on loans to total loans	1.49%	1.71%	1.87%	2.00%	1.93%
Allowance for credit losses on loans to nonperforming loans	278%	300%	341%	281%	204%
Nonperforming loans to total loans	0.53%	0.57%	0.55%	0.71%	0.95%
Net charge-off ratio (annualized)	0.22%	0.31%	0.17%	(0.07%)	0.10%
Net charge-off ratio YTD (annualized)	0.22%	0.13%	0.06%	0.01%	0.10%
Total nonperforming loans	$64.3	$68.6	$59.4	$80.9	$115.5
Total other nonperforming assets	$6.6	$7.7	$13.5	$16.3	$12.4

Continued improvements in the economic outlook and positive credit performance during the quarter resulted in a net $19.9 million benefit from credit losses for the first quarter of 2022. Total nonperforming loans at the end of the first quarter of 2022 dropped to $64.3 million, down $4.2 million compared to $68.6 million at the end of the fourth quarter of 2021 and down $51.2 million compared to $115.5 million at the end of the first quarter of 2021. Total nonperforming assets as a percentage of total assets were 0.29 percent at the end of the first quarter of 2022, compared to 0.31 percent at the end of the fourth quarter of 2021 and 0.55 percent at the end of the first quarter of 2021.

Net charge-offs as a percentage of average loans were 22 basis points for the quarter, compared to 31 basis points in the fourth quarter of 2021 and 10 basis points for the first quarter of 2021. Net charge-offs in the quarter included a single, isolated healthcare related credit that had been fully provisioned totaling $6.1 million. The charge-off of this credit accounted for 21 of the 22 basis points to the net charge-off ratio during the first quarter of 2022. The allowance for credit losses on loans at the end of the first quarter of 2022 was $178.9 million, compared to $205.3 million at the end of the fourth quarter of 2021 and $235.1 million at the end of the first quarter of 2021. The allowance to loan ratio ended the quarter at 1.49 percent, compared to 1.71 percent at the end of 2021 and 1.93 percent and the end of the first quarter of 2021. The nonperforming loan coverage ratio ended the quarter at 278 percent, compared to 300 percent at the end of 2021 and 204 percent at the end of the first quarter of 2021.

Capital
	Q1 22	Q4 21	Q3 21	Q2 21	Q1 21
Stockholders’ equity to total assets	12.1%	13.1%	13.1%	13.0%	12.6%
Tangible common equity to tangible assets (1)	7.4%	8.5%	8.4%	8.4%	7.9%
Regulatory common equity tier 1 ratio	13.5%	13.8%	14.3%	14.2%	14.1%
Regulatory tier 1 leverage ratio	9.0%	9.1%	9.1%	9.0%	9.0%
Regulatory tier 1 risk-based capital ratio	13.5%	13.8%	14.3%	14.2%	14.1%
Regulatory total risk-based capital ratio	16.4%	16.8%	17.4%	17.5%	17.5%

^{(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.}
Total common stockholders’ equity at the end of the first quarter of 2022 was $3.0 billion, compared to $3.2 billion at the end of the fourth quarter of 2021 and $2.9 billion at the end of the first quarter of 2021. The decrease in common stockholders’ equity compared to the previous quarter was primarily due to an increase in unrealized losses associated with investment securities classified as available-for-sale resulting from a significant increase in interest rates during the first quarter of 2022. Book value per share at the end of the first quarter of 2022 was $26.32, compared to $28.82 at the end of the fourth quarter of 2021 and $27.04 and the end of the first quarter of 2021. Tangible book value per share was $15.22 at the end of the first quarter of 2022, compared to $17.71 at the end of the fourth quarter of 2021 and $16.13 at the end of the first quarter of 2021. The ratio of stockholders’ equity to total assets at March 31, 2022, was 12.1 percent and the ratio of tangible common equity to tangible assets was 7.4 percent. All of Simmons’ regulatory capital ratios continue to significantly exceed “well-capitalized” guidelines.

Share Repurchase Program and Cash Dividend
As previously announced, as a result of the Simmons’ strong capital position and ability to organically generate capital, the board of directors declared a quarterly cash dividend on Simmons’ Class A common stock of $0.19 per share, which was paid on April 4, 2022, to shareholders of record as of March 15, 2022. The cash dividend rate represents an increase of $0.01 per share, or 6 percent, from the dividend paid for the same time period last year. This marked the 113th consecutive year that Simmons has paid a cash dividend to its shareholders.

During the first quarter of 2022, Simmons repurchased approximately 514,000 shares of its Class A common stock at an average price of $31.25 pursuant to Simmons’ stock repurchase program that was originally approved in October 2019 and subsequently amended in March 2020 and July 2021 (2019 Program), substantially exhausting the remaining capacity under the 2019 Program. In January 2022, Simmons announced that its board of directors authorized a new stock repurchase program (2022 Program), which replaced the 2019 Program and authorized Simmons to repurchase up to $175,000,000 of its Class A common stock currently issued and outstanding. No shares were repurchased under the 2022 Program during the first quarter of 2022. Market conditions and our capital needs will drive the decisions regarding additional, future stock repurchases.

The 2022 Program permits Simmons to repurchase shares of its Class A common stock through open market and privately negotiated transactions or otherwise. The timing, pricing, and amount of any repurchases under the 2022 Program will be determined by Simmons’ management at its discretion based on a variety of factors, including, but not limited to, trading volume and market price of the common stock, corporate considerations, Simmons’ working capital and investment requirements, general market and economic conditions, and legal requirements. 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.

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 113 consecutive years. Its principal subsidiary, Simmons Bank, operates more than 200 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. Founded in 1903, Simmons Bank offers comprehensive financial solutions delivered with a client-centric approach. Simmons Bank was named to Forbes list of “America’s Best Banks” in 2022 and was recently named to Forbes list of “World’s Best Banks” for the third 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.

Conference Call
Management will conduct a live conference call to review this information beginning at 9:00 a.m. Central Time today, Thursday, April 28, 2022. 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 3439828. In addition, the call will be available live or in recorded version on the Company’s website at 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 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 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, mortgage warehouse loans, and/or energy 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 and the effects of the PPP. 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
Certain 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, loan demand, 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 adequacy of the allowance for credit losses, the ability of the Company to manage the impacts 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 COVID-19 pandemic, including the effectiveness of “booster” vaccination efforts and developments with respect to COVID-19 variants; the pace of recovery when the COVID-19 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; 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; 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, 2021, 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.

FOR MORE INFORMATION CONTACT:
Ed Bilek
EVP, Director of Investor and Media Relations
Simmons First National Corporation
ed.bilek@simmonsbank.com
205.612.3378 (cell) 

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)		2022				2021				2021				2021				2021
($ in thousands)
ASSETS
Cash and non-interest bearing balances due from banks	$	195,510			$	209,190			$	225,500			$	215,381			$	227,713
Interest bearing balances due from banks and federal funds sold		1,491,507				1,441,463				1,555,913				2,123,743				3,677,750
Cash and cash equivalents		1,687,017				1,650,653				1,781,413				2,339,124				3,905,463
Interest bearing balances due from banks - time		1,857				1,882				1,780				1,335				1,334
Investment securities - held-to-maturity		1,556,825				1,529,221				1,516,797				931,352				609,500
Investment securities - available-for-sale		6,640,069				7,113,545				6,822,203				6,556,581				4,528,348
Mortgage loans held for sale		18,206				36,356				34,628				36,011				63,655
Other assets held for sale		-				100				100				100				100
Loans:
Loans		12,028,593				12,012,503				10,825,227				11,386,352				12,195,873
Allowance for credit losses on loans		(178,924	)			(205,332	)			(202,508	)			(227,239	)			(235,116	)
Net loans		11,849,669				11,807,171				10,622,719				11,159,113				11,960,757
Premises and equipment		486,531				483,469				463,924				429,587				427,540
Premises held for sale		-				-				-				6,090				13,613
Foreclosed assets and other real estate owned		5,118				6,032				11,759				15,239				11,168
Interest receivable		69,357				72,990				68,405				67,916				71,359
Bank owned life insurance		448,011				445,305				421,762				419,198				257,152
Goodwill		1,147,007				1,146,007				1,075,305				1,075,305				1,075,305
Other intangible assets		102,748				106,235				100,428				103,759				107,091
Other assets		469,853				325,793				304,707				282,449				315,732
Total assets	$	24,482,268			$	24,724,759			$	23,225,930			$	23,423,159			$	23,348,117
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing transaction accounts	$	5,223,862			$	5,325,318			$	4,918,845			$	4,893,959			$	4,884,667
Interest bearing transaction accounts and savings deposits		12,105,948				11,588,770				10,697,451				10,569,602				10,279,997
Time deposits		2,062,612				2,452,460				2,455,774				2,841,052				3,024,724
Total deposits		19,392,422				19,366,548				18,072,070				18,304,613				18,189,388
Federal funds purchased and securities sold under agreements to repurchase		196,828				185,403				217,276				187,215				323,053
Other borrowings		1,337,243				1,337,973				1,338,585				1,339,193				1,340,467
Subordinated notes and debentures		384,242				384,131				383,278				383,143				383,008
Other liabilities held for sale		-				-				-				-				-
Accrued interest and other liabilities		209,926				201,863				184,190				169,629				181,426
Total liabilities		21,520,661				21,475,918				20,195,399				20,383,793				20,417,342
Stockholders' equity:
Preferred stock		-				-				767				767				767
Common stock		1,125				1,127				1,066				1,084				1,083
Surplus		2,150,453				2,164,989				1,974,561				2,021,128				2,017,188
Undivided profits		1,136,990				1,093,270				1,065,566				1,004,314				948,913
Accumulated other comprehensive (loss) income:
Unrealized (depreciation) appreciation on AFS securities		(326,961	)			(10,545	)			(11,429	)			12,073				(37,176	)
Total stockholders' equity		2,961,607				3,248,841				3,030,531				3,039,366				2,930,775
Total liabilities and stockholders' equity	$	24,482,268			$	24,724,759			$	23,225,930			$	23,423,159			$	23,348,117

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)		2022				2021				2021				2021				2021
($ in thousands, except per share data)
INTEREST INCOME
Loans (including fees)	$	127,176			$	137,564			$	132,216			$	138,804			$	146,424
Interest bearing balances due from banks and federal funds sold		649				583				763				651				798
Investment securities		33,712				32,275				30,717				27,128				21,573
Mortgage loans held for sale		190				310				230				386				639
TOTAL INTEREST INCOME		161,727				170,732				163,926				166,969				169,434
INTEREST EXPENSE
Time deposits		2,503				3,705				4,747				6,061				7,091
Other deposits		4,314				4,390				4,369				4,721				6,088
Federal funds purchased and securities sold under agreements to repurchase		68				72				70				192				245
Other borrowings		4,779				4,903				4,893				4,897				4,802
Subordinated notes and debentures		4,457				4,581				4,610				4,565				4,527
TOTAL INTEREST EXPENSE		16,121				17,651				18,689				20,436				22,753
NET INTEREST INCOME		145,606				153,081				145,237				146,533				146,681
Provision for credit losses		(19,914	)			(1,308	)			(19,890	)			(12,951	)			1,445
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		165,520				154,389				165,127				159,484				145,236
NON-INTEREST INCOME
Wealth management fees		7,968				8,042				7,877				7,892				7,361
Service charges on deposit accounts		10,696				11,909				11,557				10,050				9,715
Other service charges and fees		1,637				1,762				1,964				2,048				1,922
Mortgage lending income		4,550				5,043				5,818				4,490				6,447
Debit and credit card fees		7,449				7,460				7,102				7,073				6,610
Bank owned life insurance income		2,706				2,768				2,573				2,038				1,523
(Loss) gain on sale of securities, net		(54	)			(348	)			5,248				5,127				5,471
Other income		7,266				9,965				6,411				8,397				10,500
TOTAL NON-INTEREST INCOME		42,218				46,601				48,550				47,115				49,549
NON-INTEREST EXPENSE
Salaries and employee benefits		67,906				63,832				61,902				60,261				60,340
Occupancy expense, net		10,023				11,033				9,361				9,103				9,300
Furniture and equipment expense		4,775				4,721				4,895				4,859				5,415
Other real estate and foreclosure expense		343				576				339				863				343
Deposit insurance		1,838				2,108				1,870				1,687				1,308
Merger-related costs		1,886				13,591				1,401				686				233
Other operating expenses		41,646				45,736				34,565				37,198				36,063
TOTAL NON-INTEREST EXPENSE		128,417				141,597				114,333				114,657				113,002
NET INCOME BEFORE INCOME TAXES		79,321				59,393				99,344				91,942				81,783
Provision for income taxes		14,226				11,155				18,770				17,018				14,363
NET INCOME		65,095				48,238				80,574				74,924				67,420
Preferred stock dividends		-				8				13				13				13
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	65,095			$	48,230			$	80,561			$	74,911			$	67,407
BASIC EARNINGS PER SHARE	$	0.58			$	0.42			$	0.75			$	0.69			$	0.62
DILUTED EARNINGS PER SHARE	$	0.58			$	0.42			$	0.74			$	0.69			$	0.62

Simmons First National Corporation																	SFNC
Consolidated Risk-Based Capital
For the Quarters Ended	Mar 31				Dec 31				Sep 30				Jun 30				Mar 31
(Unaudited)		2022				2021				2021				2021				2021
($ in thousands)
Tier 1 capital
Stockholders' equity	$	2,961,607			$	3,248,841			$	3,030,531			$	3,039,366			$	2,930,775
CECL transition provision (1)		92,619				114,458				122,787				128,933				131,637
Disallowed intangible assets, net of deferred tax		(1,224,691	)			(1,226,686	)			(1,152,688	)			(1,156,203	)			(1,159,720	)
Unrealized loss (gain) on AFS securities		326,961				10,545				11,429				(12,073	)			37,176
Total Tier 1 capital		2,156,496				2,147,158				2,012,059				2,000,023				1,939,868
Tier 2 capital
Subordinated notes and debentures		384,242				384,131				383,278				383,143				383,008
Qualifying allowance for loan losses and reserve for unfunded commitments		78,057				71,853				60,700				79,138				87,251
Total Tier 2 capital		462,299				455,984				443,978				462,281				470,259
Total risk-based capital	$	2,618,795			$	2,603,142			$	2,456,037			$	2,462,304			$	2,410,127
Risk weighted assets	$	15,953,622			$	15,538,967			$	14,098,320			$	14,076,975			$	13,771,244
Adjusted average assets for leverage ratio	$	23,966,206			$	23,647,901			$	22,189,921			$	22,244,118			$	21,668,406
Ratios at end of quarter
Equity to assets		12.10	%			13.14	%			13.05	%			12.98	%			12.55	%
Tangible common equity to tangible assets (2)		7.37	%			8.51	%			8.41	%			8.36	%			7.88	%
Common equity Tier 1 ratio (CET1)		13.52	%			13.82	%			14.27	%			14.20	%			14.08	%
Tier 1 leverage ratio		9.00	%			9.08	%			9.07	%			8.99	%			8.95	%
Tier 1 risk-based capital ratio		13.52	%			13.82	%			14.27	%			14.21	%			14.09	%
Total risk-based capital ratio		16.42	%			16.75	%			17.42	%			17.49	%			17.50	%
(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)		2022			2021			2021			2021			2021
($ in thousands)
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies	$	232,670		$	232,609		$	232,549		$	77,396		$	77,396
Mortgage-backed securities		112,496			70,342			57,930			60,649			47,988
State and political subdivisions		1,194,459			1,209,051			1,209,091			793,307			484,116
Other securities		17,200			17,219			17,227			-			-
Total held-to-maturity (net of credit losses)		1,556,825			1,529,221			1,516,797			931,352			609,500
Available-for-Sale
U.S. Treasury	$	-		$	300		$	300		$	600		$	600
U.S. Government agencies		333,231			364,641			354,382			554,937			487,679
Mortgage-backed securities		4,166,108			4,448,616			4,421,620			3,987,209			2,133,086
State and political subdivisions		1,653,694			1,819,658			1,575,208			1,557,497			1,571,910
Other securities		487,036			480,330			470,693			456,338			335,073
Total available-for-sale (net of credit losses)		6,640,069			7,113,545			6,822,203			6,556,581			4,528,348
Total investment securities (net of credit losses)	$	8,196,894		$	8,642,766		$	8,339,000		$	7,487,933		$	5,137,848
Fair value - HTM investment securities	$	1,307,058		$	1,517,378		$	1,487,916		$	935,596		$	597,694
Investment Securities - QTD Average
Taxable securities	$	5,688,306		$	5,790,429		$	5,475,932		$	4,265,545		$	2,471,291
Tax exempt securities		2,844,777			2,787,301			2,496,958			2,157,076			1,919,919
Total investment securities - QTD average	$	8,533,083		$	8,577,730		$	7,972,890		$	6,422,621		$	4,391,210

Simmons First National Corporation													SFNC
Consolidated Loans
For the Quarters Ended	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2022			2021			2021			2021			2021
($ in thousands)
Loan Portfolio - End of Period
Consumer
Credit cards	$	184,372		$	187,052		$	175,884		$	177,634		$	175,458
Other consumer		180,602			168,318			182,492			181,712			172,965
Total consumer		364,974			355,370			358,376			359,346			348,423
Real Estate
Construction		1,423,445			1,326,371			1,229,740			1,428,165			1,451,841
Single-family residential		2,042,978			2,101,975			1,540,701			1,608,028			1,730,056
Other commercial real estate		5,762,567			5,738,904			5,308,902			5,332,655			5,638,010
Total real estate		9,228,990			9,167,250			8,079,343			8,368,848			8,819,907
Commercial
Commercial		2,016,405			1,992,043			1,821,905			2,074,729			2,444,700
Agricultural		150,465			168,717			216,735			193,462			155,921
Total commercial		2,166,870			2,160,760			2,038,640			2,268,191			2,600,621
Other		267,759			329,123			348,868			389,967			426,922
Total loans	$	12,028,593		$	12,012,503		$	10,825,227		$	11,386,352		$	12,195,873

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)		2022				2021				2021				2021				2021
($ in thousands)
Allowance for Credit Losses on Loans
Beginning balance	$	205,332			$	202,508			$	227,239			$	235,116			$	238,050
Day 1 PCD allowance from acquisitions
Landmark (10/08/2021)						2,359
Triumph (10/08/2021)						11,092
Total Day 1 PCD allowance						13,451
Loans charged off
Credit cards		920				865				711				1,046				1,003
Other consumer		414				477				463				411				702
Real estate		485				2,624				5,941				439				1,687
Commercial		6,319				8,513				932				309				859
Total loans charged off		8,138				12,479				8,047				2,205				4,251
Recoveries of loans previously charged off
Credit cards		274				247				267				244				290
Other consumer		387				267				408				425				304
Real estate		426				916				2,068				1,523				403
Commercial		557				1,730				463				2,147				320
Total recoveries		1,644				3,160				3,206				4,339				1,317
Net loans charged off		6,494				9,319				4,841				(2,134	)			2,934
Provision for credit losses on loans		(19,914	)			(1,308	)			(19,890	)			(10,011	)			-
Balance, end of quarter	$	178,924			$	205,332			$	202,508			$	227,239			$	235,116
Non-performing assets
Non-performing loans
Nonaccrual loans	$	64,096			$	68,204			$	59,054			$	80,282			$	114,856
Loans past due 90 days or more		240				349				334				653				635
Total non-performing loans		64,336				68,553				59,388				80,935				115,491
Other non-performing assets
Foreclosed assets and other real estate owned		5,118				6,032				11,759				15,239				11,168
Other non-performing assets		1,479				1,667				1,724				1,062				1,229
Total other non-performing assets		6,597				7,699				13,483				16,301				12,397
Total non-performing assets	$	70,933			$	76,252			$	72,871			$	97,236			$	127,888
Performing TDRs (troubled debt restructurings)	$	3,424			$	4,289			$	4,251			$	4,436			$	3,805
Ratios
Allowance for credit losses on loans to total loans		1.49	%			1.71	%			1.87	%			2.00	%			1.93	%
Allowance for credit losses to non-performing loans		278	%			300	%			341	%			281	%			204	%
Non-performing loans to total loans		0.53	%			0.57	%			0.55	%			0.71	%			0.95	%
Non-performing assets (including performing TDRs) to total assets		0.30	%			0.33	%			0.33	%			0.43	%			0.56	%
Non-performing assets to total assets		0.29	%			0.31	%			0.31	%			0.42	%			0.55	%
Annualized net charge offs to total loans		0.22	%			0.31	%			0.17	%			-0.07	%			0.10	%
Annualized net credit card charge offs to total credit card loans		1.39	%			1.29	%			0.96	%			1.78	%			1.58	%

Simmons First National Corporation																											SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
	Three Months Ended Mar 2022										Three Months Ended Dec 2021										Three Months Ended Mar 2021
($ 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	$	1,728,694		$	649		0.15	%			$	1,484,752		$	583		0.16	%			$	3,477,989		$	798		0.09	%
Investment securities - taxable		5,688,306			18,148		1.29	%				5,790,429			17,186		1.18	%				2,334,078			10,120		1.76	%
Investment securities - non-taxable (FTE)		2,844,777			20,937		2.98	%				2,787,301			20,470		2.91	%				2,057,132			15,439		3.04	%
Mortgage loans held for sale		27,633			190		2.79	%				42,866			310		2.87	%				97,409			639		2.66	%
Loans - including fees (FTE)		11,895,805			127,405		4.34	%				11,924,444			137,762		4.58	%				12,518,300			146,601		4.75	%
Total interest earning assets (FTE)		22,185,215			167,329		3.06	%				22,029,792			176,311		3.18	%				20,484,908			173,597		3.44	%
Non-earning assets		2,640,984										2,668,230										2,253,913
Total assets	$	24,826,199									$	24,698,022									$	22,738,821
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and savings accounts	$	12,083,516		$	4,314		0.14	%			$	11,413,325		$	4,390		0.15	%			$	10,093,868		$	6,088		0.24	%
Time deposits		2,241,123			2,503		0.45	%				2,607,011			3,705		0.56	%				3,043,000			7,091		0.95	%
Total interest bearing deposits		14,324,639			6,817		0.19	%				14,020,336			8,095		0.23	%				13,136,868			13,179		0.41	%
Federal funds purchased and securities sold under agreement to repurchase		218,186			68		0.13	%				223,008			72		0.13	%				307,540			245		0.32	%
Other borrowings		1,337,654			4,779		1.45	%				1,340,825			4,903		1.45	%				1,341,059			4,802		1.45	%
Subordinated notes and debentures		384,187			4,457		4.70	%				383,489			4,581		4.74	%				382,943			4,527		4.79	%
Total interest bearing liabilities		16,264,666			16,121		0.40	%				15,967,658			17,651		0.44	%				15,168,410			22,753		0.61	%
Non-interest bearing liabilities:
Non-interest bearing deposits		5,184,828										5,288,933										4,419,136
Other liabilities		207,597										179,362										177,819
Total liabilities		21,657,091										21,435,953										19,765,365
Stockholders' equity		3,169,108										3,262,069										2,973,456
Total liabilities and stockholders' equity	$	24,826,199									$	24,698,022									$	22,738,821
Net interest income (FTE)				$	151,208									$	158,660									$	150,844
Net interest spread (FTE)							2.66	%									2.74	%									2.83	%
Net interest margin (FTE) - quarter-to-date							2.76	%									2.86	%									2.99	%
Net interest margin (FTE) - year-to-date							2.76	%									2.89	%									2.99	%

Simmons First National Corporation													SFNC
Consolidated - Selected Financial Data
For the Quarters Ended	Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
(Unaudited)		2022			2021			2021			2021			2021
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - GAAP
Net Income	$	65,095		$	48,230		$	80,561		$	74,911		$	67,407
Diluted earnings per share		0.58			0.42			0.74			0.69			0.62
Return on average assets		1.06	%		0.77	%		1.37	%		1.29	%		1.20	%
Return on average common equity		8.33	%		5.87	%		10.42	%		10.08	%		9.20	%
Return on tangible common equity		14.31	%		9.98	%		17.43	%		17.25	%		15.85	%
Net interest margin (FTE)		2.76	%		2.86	%		2.85	%		2.89	%		2.99	%
FTE adjustment		5,602			5,579			4,941			4,548			4,163
Average diluted shares outstanding		113,026,911			114,491,119			108,359,890			108,822,175			108,655,293
Shares repurchased under plan		513,725			2,625,348			1,806,205			-			130,916
Average price of shares repurchased		31.25			29.69			28.48			-			23.53
Cash dividends declared per common share		0.19			0.18			0.18			0.18			0.18
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)	$	67,159		$	59,486		$	79,350		$	75,435		$	63,995
Core diluted earnings per share (1)		0.59			0.52			0.73			0.69			0.59
Accretable yield on acquired loans		3,703			5,758			4,122			5,619			6,630
Efficiency ratio (1)		62.95	%		59.48	%		58.10	%		56.75	%		57.25	%
Core return on average assets (1)		1.10	%		0.96	%		1.35	%		1.30	%		1.14	%
Core return on average common equity (1)		8.59	%		7.24	%		10.26	%		10.15	%		8.73	%
Core return on tangible common equity (1)		14.74	%		12.19	%		17.18	%		17.36	%		15.08	%
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income	$	65,095		$	271,109		$	222,879		$	142,318		$	67,407
Diluted earnings per share		0.58			2.46			2.05			1.31			0.62
Return on average assets		1.06	%		1.15	%		1.29	%		1.25	%		1.20	%
Return on average common equity		8.33	%		8.83	%		9.91	%		9.64	%		9.20	%
Return on tangible common equity		14.31	%		14.99	%		16.86	%		16.56	%		15.85	%
Net interest margin (FTE)		2.76	%		2.89	%		2.91	%		2.94	%		2.99	%
FTE adjustment		5,602			19,231			13,652			8,711			4,163
Average diluted shares outstanding		113,026,911			110,198,094			108,667,928			108,746,439			108,655,293
Cash dividends declared per common share		0.19			0.72			0.54			0.36			0.18
Financial Highlights - Core (non-GAAP)
Core earnings (excludes non-core items) (1)	$	67,159		$	278,266		$	218,780		$	139,430		$	63,995
Core diluted earnings per share (1)		0.59			2.53			2.01			1.28			0.59
Accretable yield on acquired loans		3,703			22,129			16,371			12,249			6,630
Efficiency ratio (1)		62.95	%		57.92	%		57.37	%		57.00	%		57.25	%
Core return on average assets (1)		1.10	%		1.18	%		1.27	%		1.22	%		1.14	%
Core return on average common equity (1)		8.59	%		9.06	%		9.73	%		9.45	%		8.73	%
Core return on tangible common equity (1)		14.74	%		15.38	%		16.56	%		16.23	%		15.08	%
END OF PERIOD
Book value per share	$	26.32		$	28.82		$	28.42		$	28.03		$	27.04
Tangible book value per share		15.22			17.71			17.39			17.16			16.13
Shares outstanding		112,505,555			112,715,444			106,603,231			108,386,669			108,345,732
Full-time equivalent employees		2,893			2,877			2,740			2,783			2,817
Total number of financial centers		197			199			185			198			198
(1) Core earnings excludes non-core items, 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)		2022				2021				2021				2021				2021
($ in thousands, except per share data)
QUARTER-TO-DATE
Net Income	$	65,095			$	48,230			$	80,561			$	74,911			$	67,407
Non-core items
Gain on sale of branches		-				-				-				(16	)			(5,300	)
Merger-related costs		1,886				13,591				1,401				686				233
Branch right-sizing (net)		909				1,648				(3,041	)			39				448
Tax effect (1)		(731	)			(3,983	)			429				(185	)			1,207
Net non-core items		2,064				11,256				(1,211	)			524				(3,412	)
Core earnings (non-GAAP)	$	67,159			$	59,486			$	79,350			$	75,435			$	63,995
Diluted earnings per share	$	0.58			$	0.42			$	0.74			$	0.69			$	0.62
Non-core items
Gain on sale of branches		-				-				-				-				(0.05	)
Merger-related costs		0.01				0.12				0.01				0.01				-
Branch right-sizing (net)		0.01				0.01				(0.03	)			-				0.01
Tax effect (1)		(0.01	)			(0.03	)			0.01				(0.01	)			0.01
Net non-core items		0.01				0.10				(0.01	)			-				(0.03	)
Core diluted earnings per share (non-GAAP)	$	0.59			$	0.52			$	0.73			$	0.69			$	0.59
(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	$	7,266			$	9,965			$	6,411			$	8,397			$	10,500
Non-core items (1)		-				(2	)			239				(445	)			(5,477	)
Core other income (non-GAAP)	$	7,266			$	9,963			$	6,650			$	7,952			$	5,023
Non-interest expense	$	128,417			$	141,597			$	114,333			$	114,657			$	113,002
Non-core items (1)		(2,795	)			(15,241	)			1,879				(1,154	)			(858	)
Core non-interest expense (non-GAAP)	$	125,622			$	126,356			$	116,212			$	113,503			$	112,144
Salaries and employee benefits	$	67,906			$	63,832			$	61,902			$	60,261			$	60,340
Non-core items (1)		-				-				(66	)			-				-
Core salaries and employee benefits (non-GAAP)	$	67,906			$	63,832			$	61,836			$	60,261			$	60,340
Merger related costs	$	1,886			$	13,591			$	1,401			$	686			$	233
Non-core items (1)		(1,886	)			(13,591	)			(1,401	)			(686	)			(233	)
Core merger related costs (non-GAAP)	$	-			$	-			$	-			$	-			$	-
Other operating expenses	$	41,646			$	45,736			$	34,565			$	37,198			$	36,063
Non-core items (1)		(717	)			96				3,759				(89	)			(208	)
Core other operating expenses (non-GAAP)	$	40,929			$	45,832			$	38,324			$	37,109			$	35,855
(1) Non-core items include gain on sale of branches, merger related costs 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)		2022				2021				2021				2021				2021
($ in thousands, except per share data)
YEAR-TO-DATE
Net Income	$	65,095			$	271,109			$	222,879			$	142,318			$	67,407
Non-core items
Gain on sale of branches		-				(5,316	)			(5,316	)			(5,316	)			(5,300	)
Merger-related costs		1,886				15,911				2,320				919				233
Branch right-sizing (net)		909				(906	)			(2,554	)			487				448
Tax effect (1)		(731	)			(2,532	)			1,451				1,022				1,207
Net non-core items		2,064				7,157				(4,099	)			(2,888	)			(3,412	)
Core earnings (non-GAAP)	$	67,159			$	278,266			$	218,780			$	139,430			$	63,995
Diluted earnings per share	$	0.58			$	2.46			$	2.05			$	1.31			$	0.62
Non-core items
Gain on sale of branches		-				(0.05	)			(0.05	)			(0.05	)			(0.05	)
Merger-related costs		0.01				0.15				0.02				0.01				-
Branch right-sizing (net)		0.01				(0.01	)			(0.02	)			-				0.01
Tax effect (1)		(0.01	)			(0.02	)			0.01				0.01				0.01
Net non-core items		0.01				0.07				(0.04	)			(0.03	)			(0.03	)
Core diluted earnings per share (non-GAAP)	$	0.59			$	2.53			$	2.01			$	1.28			$	0.59
(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	$	7,266			$	35,273			$	25,308			$	18,897			$	10,500
Non-core items (1)		-				(5,685	)			(5,683	)			(5,922	)			(5,477	)
Core other income (non-GAAP)	$	7,266			$	29,588			$	19,625			$	12,975			$	5,023
Non-interest expense	$	128,417			$	483,589			$	341,992			$	227,659			$	113,002
Non-core items (1)		(2,795	)			(15,374	)			(133	)			(2,012	)			(858	)
Core non-interest expense (non-GAAP)	$	125,622			$	468,215			$	341,859			$	225,647			$	112,144
Salaries and employee benefits	$	67,906			$	246,335			$	182,503			$	120,601			$	60,340
Non-core items (1)		-				(66	)			(66	)			-				-
Core salaries and employee benefits (non-GAAP)	$	67,906			$	246,269			$	182,437			$	120,601			$	60,340
Merger related costs	$	1,886			$	15,911			$	2,320			$	919			$	233
Non-core items (1)		(1,886	)			(15,911	)			(2,320	)			(919	)			(233	)
Core merger related costs (non-GAAP)	$	-			$	-			$	-			$	-			$	-
Other operating expenses	$	41,646			$	153,562			$	107,826			$	73,261			$	36,063
Non-core items (1)		(717	)			3,558				3,462				(297	)			(208	)
Core other operating expenses (non-GAAP)	$	40,929			$	157,120			$	111,288			$	72,964			$	35,855
(1) Non-core items include gain on sale of branches, merger related costs 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)		2022				2021				2021				2021				2021
($ 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	$	2,961,607			$	3,248,841			$	3,029,764			$	3,038,599			$	2,930,008
Intangible assets:
Goodwill		(1,147,007	)			(1,146,007	)			(1,075,305	)			(1,075,305	)			(1,075,305	)
Other intangible assets		(102,748	)			(106,235	)			(100,428	)			(103,759	)			(107,091	)
Total intangibles		(1,249,755	)			(1,252,242	)			(1,175,733	)			(1,179,064	)			(1,182,396	)
Tangible common stockholders' equity	$	1,711,852			$	1,996,599			$	1,854,031			$	1,859,535			$	1,747,612
Total assets	$	24,482,268			$	24,724,759			$	23,225,930			$	23,423,159			$	23,348,117
Intangible assets:
Goodwill		(1,147,007	)			(1,146,007	)			(1,075,305	)			(1,075,305	)			(1,075,305	)
Other intangible assets		(102,748	)			(106,235	)			(100,428	)			(103,759	)			(107,091	)
Total intangibles		(1,249,755	)			(1,252,242	)			(1,175,733	)			(1,179,064	)			(1,182,396	)
Tangible assets	$	23,232,513			$	23,472,517			$	22,050,197			$	22,244,095			$	22,165,721
Paycheck protection program ("PPP") loans		(61,887	)			(116,659	)			(212,087	)			(441,353	)			(797,629	)
Total assets excluding PPP loans	$	24,420,381			$	24,608,100			$	23,013,843			$	22,981,806			$	22,550,488
Tangible assets excluding PPP loans	$	23,170,626			$	23,355,858			$	21,838,110			$	21,802,742			$	21,368,092
Ratio of common equity to assets		12.10	%			13.14	%			13.04	%			12.97	%			12.55	%
Ratio of common equity to assets excluding PPP loans		12.13	%			13.20	%			13.16	%			13.22	%			12.99	%
Ratio of tangible common equity to tangible assets		7.37	%			8.51	%			8.41	%			8.36	%			7.88	%
Ratio of tangible common equity to tangible assets excluding PPP loans		7.39	%			8.55	%			8.49	%			8.53	%			8.18	%
Calculation of Tangible Book Value per Share
Total common stockholders' equity	$	2,961,607			$	3,248,841			$	3,029,764			$	3,038,599			$	2,930,008
Intangible assets:
Goodwill		(1,147,007	)			(1,146,007	)			(1,075,305	)			(1,075,305	)			(1,075,305	)
Other intangible assets		(102,748	)			(106,235	)			(100,428	)			(103,759	)			(107,091	)
Total intangibles		(1,249,755	)			(1,252,242	)			(1,175,733	)			(1,179,064	)			(1,182,396	)
Tangible common stockholders' equity	$	1,711,852			$	1,996,599			$	1,854,031			$	1,859,535			$	1,747,612
Shares of common stock outstanding		112,505,555				112,715,444				106,603,231				108,386,669				108,345,732
Book value per common share	$	26.32			$	28.82			$	28.42			$	28.03			$	27.04
Tangible book value per common share	$	15.22			$	17.71			$	17.39			$	17.16			$	16.13

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)		2022				2021				2021				2021				2021
($ in thousands)
Calculation of Core Return on Average Assets
Net income	$	65,095			$	48,230			$	80,561			$	74,911			$	67,407
Net non-core items, net of taxes, adjustment		2,064				11,256				(1,211	)			524				(3,412	)
Core earnings	$	67,159			$	59,486			$	79,350			$	75,435			$	63,995
Average total assets	$	24,826,199			$	24,698,022			$	23,255,541			$	23,257,921			$	22,738,821
Return on average assets		1.06	%			0.77	%			1.37	%			1.29	%			1.20	%
Core return on average assets		1.10	%			0.96	%			1.35	%			1.30	%			1.14	%
Calculation of Return on Tangible Common Equity
Net income	$	65,095			$	48,230			$	80,561			$	74,911			$	67,407
Amortization of intangibles, net of taxes		2,575				2,575				2,460				2,462				2,470
Total income available to common stockholders	$	67,670			$	50,805			$	83,021			$	77,373			$	69,877
Net non-core items, net of taxes		2,064				11,256				(1,211	)			524				(3,412	)
Core earnings		67,159				59,486				79,350				75,435				63,995
Amortization of intangibles, net of taxes		2,575				2,575				2,460				2,462				2,470
Total core income available to common stockholders	$	69,734			$	62,061			$	81,810			$	77,897			$	66,465
Average common stockholders' equity	$	3,169,108			$	3,261,627			$	3,067,205			$	2,980,609			$	2,972,689
Average intangible assets:
Goodwill		(1,146,034	)			(1,137,441	)			(1,075,305	)			(1,075,305	)			(1,075,305	)
Other intangibles		(104,905	)			(105,155	)			(102,576	)			(105,785	)			(109,850	)
Total average intangibles		(1,250,939	)			(1,242,596	)			(1,177,881	)			(1,181,090	)			(1,185,155	)
Average tangible common stockholders' equity	$	1,918,169			$	2,019,031			$	1,889,324			$	1,799,519			$	1,787,534
Return on average common equity		8.33	%			5.87	%			10.42	%			10.08	%			9.20	%
Return on tangible common equity		14.31	%			9.98	%			17.43	%			17.25	%			15.85	%
Core return on average common equity		8.59	%			7.24	%			10.26	%			10.15	%			8.73	%
Core return on tangible common equity		14.74	%			12.19	%			17.18	%			17.36	%			15.08	%
Calculation of Efficiency Ratio (1)
Non-interest expense	$	128,417			$	141,597			$	114,333			$	114,657			$	113,002
Non-core non-interest expense adjustment		(2,795	)			(15,241	)			1,879				(1,154	)			(858	)
Other real estate and foreclosure expense adjustment		(343	)			(576	)			(339	)			(863	)			(343	)
Amortization of intangibles adjustment		(3,486	)			(3,486	)			(3,331	)			(3,333	)			(3,344	)
Efficiency ratio numerator	$	121,793			$	122,294			$	112,542			$	109,307			$	108,457
Net-interest income	$	145,606			$	153,081			$	145,237			$	146,533			$	146,681
Non-interest income		42,218				46,601				48,550				47,115				49,549
Non-core non-interest income adjustment		-				(2	)			239				(445	)			(5,477	)
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		5,602				5,579				4,941				4,548				4,163
Loss (gain) on sale of securities		54				348				(5,248	)			(5,127	)			(5,471	)
Efficiency ratio denominator	$	193,480			$	205,607			$	193,719			$	192,624			$	189,445
Efficiency ratio (1)		62.95	%			59.48	%			58.10	%			56.75	%			57.25	%
(1) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully axable 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)		2022				2021				2021				2021				2021
($ in thousands)
Calculation of Adjusted Net Interest Margin
Net interest income	$	145,606			$	153,081			$	145,237			$	146,533			$	146,681
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		5,602				5,579				4,941				4,548				4,163
Fully tax-equivalent net interest income		151,208				158,660				150,178				151,081				150,844
PPP loan interest income		(2,113	)			(5,107	)			(9,614	)			(8,958	)			(11,652	)
Net interest income adjusted for PPP loans	$	149,095			$	153,553			$	140,564			$	142,123			$	139,192
Average earning assets	$	22,185,215			$	22,029,792			$	20,901,992			$	20,959,642			$	20,484,908
Average PPP loan balance		(89,757	)			(172,130	)			(359,828	)			(707,296	)			(891,070	)
Average earning assets adjusted for PPP loans	$	22,095,458			$	21,857,662			$	20,542,164			$	20,252,346			$	19,593,838
Net interest margin		2.76	%			2.86	%			2.85	%			2.89	%			2.99	%
Net interest margin adjusted for PPP loans		2.74	%			2.79	%			2.71	%			2.81	%			2.88	%
Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings
Net income available to common stockholders	$	65,095			$	48,230			$	80,561			$	74,911			$	67,407
Provision for income taxes		14,226				11,155				18,770				17,018				14,363
Provision for credit losses (including provision for unfunded commitments)		(19,914	)			(1,308	)			(19,890	)			(12,951	)			1,445
Loss (gain) on sale of securities		54				348				(5,248	)			(5,127	)			(5,471	)
Net pre-tax non-core items		2,795				15,239				(1,640	)			709				(4,619	)
Adjusted pre-tax, pre-provision (PTPP) earnings	$	62,256			$	73,664			$	72,553			$	74,560			$	73,125

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)		2022				2021				2021				2021				2021
($ in thousands)
Calculation of Core Return on Average Assets
Net income	$	65,095			$	271,109			$	222,879			$	142,318			$	67,407
Net non-core items, net of taxes, adjustment		2,064				7,157				(4,099	)			(2,888	)			(3,412	)
Core earnings	$	67,159			$	278,266			$	218,780			$	139,430			$	63,995
Average total assets	$	24,826,199			$	23,492,308			$	23,085,987			$	22,999,805			$	22,738,821
Return on average assets		1.06	%			1.15	%			1.29	%			1.25	%			1.20	%
Core return on average assets		1.10	%			1.18	%			1.27	%			1.22	%			1.14	%
Calculation of Return on Tangible Common Equity
Net income	$	65,095			$	271,109			$	222,879			$	142,318			$	67,407
Amortization of intangibles, net of taxes		2,575				9,967				7,392				4,932				2,470
Total income available to common stockholders	$	67,670			$	281,076			$	230,271			$	147,250			$	69,877
Net non-core items, net of taxes		2,064				7,157				(4,099	)			(2,888	)			(3,412	)
Core earnings		67,159				278,266				218,780				139,430				63,995
Amortization of intangibles, net of taxes		2,575				9,967				7,392				4,932				2,470
Total core income available to common stockholders	$	69,734			$	288,233			$	226,172			$	144,362			$	66,465
Average common stockholders' equity	$	3,169,108			$	3,071,313			$	3,007,181			$	2,976,671			$	2,972,689
Average intangible assets:
Goodwill		(1,146,034	)			(1,090,967	)			(1,075,305	)			(1,075,305	)			(1,075,305	)
Other intangibles		(104,905	)			(105,820	)			(106,043	)			(107,806	)			(109,850	)
Total average intangibles		(1,250,939	)			(1,196,787	)			(1,181,348	)			(1,183,111	)			(1,185,155	)
Average tangible common stockholders' equity	$	1,918,169			$	1,874,526			$	1,825,833			$	1,793,560			$	1,787,534
Return on average common equity		8.33	%			8.83	%			9.91	%			9.64	%			9.20	%
Return on tangible common equity		14.31	%			14.99	%			16.86	%			16.56	%			15.85	%
Core return on average common equity		8.59	%			9.06	%			9.73	%			9.45	%			8.73	%
Core return on tangible common equity		14.74	%			15.38	%			16.56	%			16.23	%			15.08	%
Calculation of Efficiency Ratio (1)
Non-interest expense	$	128,417			$	483,589			$	341,992			$	227,659			$	113,002
Non-core non-interest expense adjustment		(2,795	)			(15,374	)			(133	)			(2,012	)			(858	)
Other real estate and foreclosure expense adjustment		(343	)			(2,121	)			(1,545	)			(1,206	)			(343	)
Amortization of intangibles adjustment		(3,486	)			(13,494	)			(10,008	)			(6,677	)			(3,344	)
Efficiency ratio numerator	$	121,793			$	452,600			$	330,306			$	217,764			$	108,457
Net-interest income	$	145,606			$	591,532			$	438,451			$	293,214			$	146,681
Non-interest income		42,218				191,815				145,214				96,664				49,549
Non-core non-interest income adjustment		-				(5,685	)			(5,683	)			(5,922	)			(5,477	)
Fully tax-equivalent adjustment (effective tax rate of 26.135%)		5,602				19,231				13,652				8,711				4,163
Gain on sale of securities		54				(15,498	)			(15,846	)			(10,598	)			(5,471	)
Efficiency ratio denominator	$	193,480			$	781,395			$	575,788			$	382,069			$	189,445
Efficiency ratio (1)		62.95	%			57.92	%			57.37	%			57.00	%			57.25	%
(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)		2022				2021				2021				2021				2021
($ in thousands)
Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings
Net income available to common stockholders	$	65,095			$	271,109			$	222,879			$	142,318			$	67,407
Provision for income taxes		14,226				61,306				50,151				31,381				14,363
Provision for credit losses (including provision for unfunded commitments)		(19,914	)			(32,704	)			(31,396	)			(11,506	)			1,445
Loss (gain) on sale of securities		54				(15,498	)			(15,846	)			(10,598	)			(5,471	)
Adjustments, pre-tax		2,795				9,689				(5,550	)			(3,910	)			(4,619	)
Adjusted pre-tax, pre-provision (PTPP) earnings	$	62,256			$	293,902			$	220,238			$	147,685			$	73,125

FAQ

What were the Q1 2022 earnings for Simmons First National Corporation (SFNC)?

Simmons First National Corporation reported Q1 2022 net income of $65.1 million, or $0.58 per share.

How did core earnings perform in Q1 2022 for SFNC?

Core earnings for SFNC in Q1 2022 were $67.2 million, or $0.59 per share, compared to $64.0 million in Q1 2021.

What is the status of the commercial loan pipeline for SFNC?

The commercial loan pipeline for SFNC reached $2.4 billion in Q1 2022, marking the sixth consecutive quarter of increased activity.

How did total deposits change for SFNC in Q1 2022?

Total deposits for SFNC in Q1 2022 remained stable at $19.4 billion.

What are the regulatory capital ratios for SFNC as of Q1 2022?

Simmons First National Corporation's CET1 ratio stood at 13.52%, significantly above 'well-capitalized' guidelines.