Simmons First National Corporation Reports Fourth Quarter 2024 Results

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Simmons First National (SFNC) reported Q4 2024 net income of $48.3 million, with diluted earnings per share of $0.38, compared to $24.7 million ($0.20 EPS) in Q3 2024 and $23.9 million ($0.19 EPS) in Q4 2023.

Key financial metrics for Q4 2024 include:

• Total revenue: $208.5 million
• Net interest margin: 2.87%, up 13 basis points
• Total loans: $17.0 billion
• Total deposits: $21.9 billion
• Allowance for credit losses ratio: 1.38%

The company's performance showed improvement in profitability trends, with net interest income totaling $164.9 million. The efficiency ratio was 65.66%, and the tangible book value per share increased to $16.80. The company maintained strong capital ratios, with CET1 at 12.38% and total risk-based capital ratio at 14.61%.

Positive

• Net income increased to $48.3 million from $24.7 million in previous quarter
• Net interest margin improved by 13 basis points to 2.87%
• Cost of deposits decreased by 19 basis points to 2.60%
• Tangible book value per share increased 6% year-over-year
• Strong capital ratios with CET1 at 12.38%

Negative

• Total loans decreased to $17.0 billion from $17.3 billion in previous quarter
• Nonperforming loans increased to $110.7 million from $101.7 million in previous quarter
• Net charge-off ratio increased to 0.27% from 0.22% in previous quarter
• Nonperforming assets ratio increased to 0.45% from 0.38% in previous quarter

Insights

Financial Analyst

The Q4 2024 results from Simmons First National reveal a mixed but generally improving picture. The headline $48.3 million net income ($0.38 EPS) represents a substantial 95% increase from Q3, though this improvement was partly due to the absence of one-time charges that affected previous quarters.

The most encouraging aspect is the margin expansion, with NIM increasing 13 basis points to 2.87%. This improvement was driven by management's successful deposit cost optimization, as evidenced by a 19 basis point reduction in deposit costs to 2.60%. The bank's ability to lower funding costs while maintaining stable deposit levels ($21.9 billion) demonstrates solid competitive positioning in its markets.

However, asset quality metrics warrant attention. The increase in nonperforming loans to $110.7 million (up from $101.7 million in Q3) and rising net charge-off ratio to 27 basis points suggest some credit deterioration. While these levels remain manageable and are partly due to a planned portfolio runoff, they bear monitoring given the uncertain economic environment.

Capital levels remain a source of strength, with the CET1 ratio at 12.38% providing ample buffer above regulatory requirements. The tangible book value per share growth of 6% year-over-year to $16.80 reflects solid internal capital generation.

Looking ahead, management's cautious optimism is tempered by several identified headwinds including potential policy changes, inflation trends and regulatory costs. The bank's strong capital position and improving profitability metrics provide a solid foundation, but investors should monitor asset quality trends and the success of deposit cost management initiatives in coming quarters.

PINE BLUFF, Ark., Jan. 21, 2025 /PRNewswire/ --

George Makris, Jr., Simmons' Chairman and Chief Executive Officer, commented on the quarterly results:

Simmons' fourth quarter results were encouraging as we head into 2025.  Profitability trends improved and should be a good foundation from which to build. While we are cautiously optimistic as we enter the new year, we are also watching several factors that could impact us in 2025: a new administration and how its policies affect domestic growth; inflation and employment levels; the trajectory of short-term interest rates; regulatory changes and their effect on our operating costs and growth; insurance availability and costs for both commercial enterprises and consumers; and population migration's effects on housing trends geographically.

I also want to recognize and thank the following leaders who retired from Simmons at the end of 2024: Bob Fehlman, Steve Massanelli, Steve Wade, Johnny McCaleb, and Pat Neely. These leaders have played a significant role in the growth of Simmons, and they will be missed. At the same time, I am excited about the next generation of leadership and the opportunities we see ahead.

 

Financial Highlights	4Q24	3Q24	4Q23		4Q24 Highlights
Balance Sheet (in millions)					Comparisons reflect 4Q24 vs 3Q24,       except as otherwise noted     •  Net income of $48.3 million    and diluted EPS of $0.38     •  Adjusted earnings1 of $49.6    million and adjusted diluted    EPS1 of $0.39   •  Total revenue of $208.5 million    and PPNR1 of $67.4 million   •  Adjusted total revenue1 of    $208.5 million and adjusted    PPNR1 of $69.2 million   •  Net interest margin of 2.87%,    up 13 bps   •  Cost of deposits of 2.60%,    down 19 bps   •  Provision for credit losses on    loans exceeded net charge-offs    in the quarter by $1.8 million     •  NCO ratio of 27 bps in 4Q24;    6 bps of NCO ratio associated    with run-off portfolio    •  ACL ratio ended the quarter at    1.38%, up 3 bps   •  EA ratio of 13.13%; TCE ratio1    up 14 bps to 8.29%   •  Book value per share up 3% and    tangible book value per share1    up 6% year-over-year
Total loans	$17,006	$17,336	$16,846
Total investment securities	6,166	6,350	6,878
Total deposits	21,886	21,935	22,245
Total assets	26,876	27,269	27,346
Total shareholders' equity	3,529	3,529	3,426
Performance Measures (in millions)
Total revenue	$208.5	$174.8	$177.6
Adjusted total revenue1	208.5	203.2	197.8
Pre-provision net revenue1 (PPNR)	67.4	37.6	29.5
Adjusted pre-provision net revenue1	69.2	66.4	65.1
Provision for credit losses	13.3	12.1	10.0
Per share Data
Diluted earnings	$  0.38	$  0.20	$  0.19
Adjusted diluted earnings1	0.39	0.37	0.40
Book value	28.08	28.11	27.37
Tangible book value1	16.80	16.78	15.92
Asset Quality
Net charge-off ratio (NCO ratio)	0.27 %	0.22 %	0.11 %
Nonperforming loan ratio	0.65	0.59	0.50
Nonperforming assets to total assets	0.45	0.38	0.33
Allowance for credit losses to loans (ACL)	1.38	1.35	1.34
Nonperforming loan coverage ratio	212	229	267
Capital Ratios
Equity to assets (EA ratio)	13.13 %	12.94 %	12.53 %
Tangible common equity (TCE) ratio1	8.29	8.15	7.69
Common equity tier 1 (CET1) ratio	12.38	12.06	12.11
Total risk-based capital ratio	14.61	14.25	14.39
other data
Net interest margin (FTE)	2.87 %	2.74 %	2.68 %
Loan yield (FTE)	6.32	6.44	6.20
Cost of deposits	2.60	2.79	2.58
Loan to deposit ratio	77.70	79.03	75.73
Borrowed funds to total liabilities	4.92	6.16	5.88

Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $48.3 million for the fourth quarter of 2024, compared to $24.7 million in the third quarter of 2024 and $23.9 million in the fourth quarter of 2023. Diluted earnings per share were $0.38 for the fourth quarter of 2024, compared to $0.20 in the third quarter of 2024 and $0.19 in the fourth quarter of 2023. Adjusted earnings¹ for the fourth quarter of 2024 were $49.6 million, compared to $46.0 million in the third quarter of 2024 and $50.2 million in the fourth quarter of 2023. Adjusted diluted earnings per share¹ for the fourth quarter of 2024 were $0.39, compared to $0.37 in the third quarter of 2024 and $0.40 in the fourth quarter of 2023.

The table below summarizes the impact of certain items, consisting primarily of branch right sizing, early retirement, loss on sale of available-for-sale (AFS) investment securities and FDIC special assessments. They are also described in further detail in the "Reconciliation of Non-GAAP Financial Measures" tables contained in this press release.

Impact of Certain Items on Earnings and Diluted EPS

$ in millions, except per share data		4Q24	3Q24	4Q23
Net income		$ 48.3	$ 24.7	$ 23.9
Branch right sizing, net		1.6	0.4	3.9
Early retirement program		0.2	-	1.0
Loss on sale of AFS investment securities		-	28.4	20.2
FDIC special assessment		-	-	10.5
Total pre-tax impact		1.8	28.8	35.6
Tax effect2		(0.5)	(7.5)	(9.3)
Total impact on earnings		1.3	21.3	26.3
Adjusted earnings1		$ 49.6	$ 46.0	$ 50.2
Diluted EPS		$ 0.38	$ 0.20	$ 0.19
Branch right sizing, net		0.01	-	0.03
Early retirement program		-	-	0.01
Loss on sale of AFS investment securities		-	0.23	0.16
FDIC special assessment		-	-	0.08
Total pre-tax impact		0.01	0.23	0.28
Tax effect2		-	(0.6)	(0.07)
Total impact on earnings		0.01	0.17	0.21
Adjusted Diluted EPS1		$ 0.39	$ 0.37	$ 0.40

Net Interest Income
Net interest income for the fourth quarter of 2024 totaled $164.9 million, compared to $157.7 million in the third quarter of 2024 and $155.6 million in the fourth quarter of 2023. Interest income totaled $326.0 million for the fourth quarter of 2024, compared to $334.3 million in the third quarter of 2024 and $323.5 million in the fourth quarter of 2023. The decrease in interest income on a linked quarter basis was primarily driven by a decline in the level of interest rates resulting from interest rate cuts at the end of the third quarter and during the fourth quarter of 2024. Interest expense totaled $161.0 million for the fourth quarter of 2024, compared to $176.6 million in the third quarter of 2024 and $167.9 million in the fourth quarter of 2023. The decrease in interest expense was driven by lower interest rates, coupled with management's ability to proactively manage deposit costs and reduced use of wholesale funding sources. Included in net interest income is accretion recognized on loans, which totaled $1.9 million in the fourth quarter of 2024, $1.5 million in the third quarter of 2024 and $1.8 million in the fourth quarter of 2023. 

The yield on loans on a fully taxable equivalent (FTE) basis for the fourth quarter of 2024 was 6.32 percent, down 12 basis points from 6.44 percent for the third quarter of 2024 and up 12 basis points from 6.20 percent in the fourth quarter of 2023. Cost of deposits for the fourth quarter of 2024 was 2.60 percent, down 19 basis points from 2.79 percent for the third quarter of 2024 and up 2 basis points from 2.58 percent in the fourth quarter of 2023. The net interest margin on an FTE basis for the fourth quarter of 2024 was 2.87 percent, up 13 basis points from 2.74 percent for the third quarter of 2024 and up 19 basis points from 2.68 percent in the fourth quarter of 2023. The increase in net interest margin on a linked quarter basis was primarily due to lower deposits costs, as well as the reduced use of and rate paid on other borrowings.

Select Yield/Rates	4Q24	3Q24	2Q24	1Q24	4Q23
Loan yield (FTE)2	6.32 %	6.44 %	6.39 %	6.24 %	6.20 %
Investment securities yield (FTE)2	3.54	3.63	3.68	3.76	3.67
Cost of interest bearing deposits	3.28	3.52	3.53	3.48	3.31
Cost of deposits	2.60	2.79	2.79	2.75	2.58
Cost of borrowed funds	5.32	5.79	5.84	5.85	5.79
Net interest spread (FTE)2	2.15	1.95	1.92	1.89	1.93
Net interest margin (FTE)2	2.87	2.74	2.69	2.66	2.68

Noninterest Income
Noninterest income for the fourth quarter of 2024 was $43.6 million, compared to $17.1 million in the third quarter of 2024 and $22.0 million in the fourth quarter of 2023. Included in the third quarter of 2024 and fourth quarter of 2023 was a $28.4 million and $20.2 million pre-tax loss on the sale of AFS investment securities, respectively. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest income¹ was $45.5 million for the third quarter of 2024 and $42.2 million in the fourth quarter of 2023. The decrease in adjusted noninterest income on a linked quarter basis was primarily due to a higher level of other noninterest income resulting from the gain on sale of other real estate recorded in the third quarter of 2024, offset in part by increases in most of our major fee-based businesses.  

Noninterest Income $ in millions	4Q24	3Q24	2Q24	1Q24	4Q23
Service charges on deposit accounts	$ 13.0	$ 12.7	$ 12.3	$ 12.0	$ 12.8
Wealth management fees	8.8	8.2	8.3	7.5	7.7
Debit and credit card fees	8.3	8.1	8.2	8.2	7.8
Mortgage lending income	1.8	2.0	2.0	2.3	1.6
Other service charges and fees	2.3	2.4	2.4	2.2	2.3
Bank owned life insurance	3.8	3.8	3.9	3.8	3.1
Gain (loss) on sale of securities	-	(28.4)	-	-	(20.2)
Other income	5.6	8.3	6.4	7.2	6.9
Total noninterest income	$ 43.6	$ 17.1	$ 43.3	$ 43.2	$ 22.0
Adjusted noninterest income1	$ 43.6	$ 45.5	$43.3	$43.2	$ 42.2

Noninterest Expense
Noninterest expense for the fourth quarter of 2024 was $141.1 million, compared to $137.2 million in the third quarter of 2024 and $148.1 million in the fourth quarter of 2023. Included in noninterest expense are certain items consisting of branch right sizing, early retirement and an FDIC special assessment. Collectively, these items totaled $1.8 million in the fourth quarter of 2024, $0.4 million in the third quarter of 2024 and $15.4 million in the fourth quarter of 2023. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest expense¹ was $139.3 million for the fourth quarter of 2024, $136.8 million in the third quarter of 2024 and $132.7 million in the fourth quarter of 2023. The increase in adjusted noninterest expense on a linked quarter basis was primarily due to seasonality in salaries and employee benefits.

Noninterest Expense $ in millions	4Q24	3Q24	2Q24	1Q24	4Q23
Salaries and employee benefits	$  71.6	$  69.2	$  70.7	$  72.7	$  67.0
Occupancy expense, net	11.9	12.2	11.9	12.3	11.7
Furniture and equipment	5.7	5.6	5.6	5.1	5.4
Deposit insurance	5.6	5.6	5.4	5.5	4.7
Other real estate and foreclosure expense	0.3	0.1	0.1	0.2	0.2
FDIC special assessment	-	-	0.3	1.6	10.5
Other operating expenses	46.1	44.5	45.4	42.5	48.6
Total noninterest expense	$141.1	$137.2	$139.4	$139.9	$148.1
Adjusted salaries and employee benefits1	$  71.4	$  69.2	$ 70.6	$  72.4	$  66.0
Adjusted other operating expenses1	44.7	44.4	44.3	42.4	44.9
Adjusted noninterest expense1	139.3	136.8	137.8	137.9	132.7
Efficiency ratio	65.66 %	75.70 %	68.38 %	69.41 %	80.46 %
Adjusted efficiency ratio1	62.89	63.38	65.68	66.42	62.91
Full-time equivalent employees	2,946	2,972	2,961	2,989	3,007
Number of financial centers	222	234	234	233	234

Loans and Unfunded Loan Commitments
Total loans at the end of the fourth quarter of 2024 were $17.0 billion, compared to $17.3 billion at the end of the third quarter of 2024 and $16.8 billion at the end of the fourth quarter of 2023. The decrease in total loans on a linked quarter basis was primarily due to normal seasonality in the company's agricultural and mortgage warehouse loan portfolios, as well as further declines in a run-off portfolio consisting of small ticket equipment finance and acquired asset based lending portfolios (run-off portfolio). Unfunded loan commitments at the end of the fourth quarter of 2024 were $3.7 billion, up slightly from third quarter 2024 levels. The commercial loan pipeline ended the fourth quarter of 2024 at $1.3 billion and ready to close loans totaled $552 million, marking the second consecutive quarterly increase in both metrics.

Loans and Unfunded Loan Commitments  $ in millions	4Q24	3Q24	2Q24	1Q24	4Q23
Total loans	$17,006	$17,336	$17,192	$17,002	$16,846
Unfunded loan commitments	3,739	3,681	3,746	3,875	3,880

Deposits and Other Borrowings
Total deposits at the end of the fourth quarter of 2024 were $21.9 billion, down slightly from third quarter 2024 levels. The decrease in deposits on a linked quarter basis was primarily due to a decline in time deposits and brokered deposits, offset in part by increases in interest bearing transaction accounts (checking, money market and savings accounts) and public fund deposits. Other borrowings totaled $1.1 billion at the end of the fourth quarter of 2024, compared to $1.5 billion at the end of the third quarter of 2024 and $1.4 billion at the end of the fourth quarter of 2023. The decrease in other borrowing both on a linked quarter and year-over-year basis was primarily due to lower levels of FHLB advances.

Deposits $ in millions	4Q24	3Q24	2Q24	1Q24	4Q23
Noninterest bearing deposits	$  4,461	$  4,522	$  4,624	$  4,698	$  4,801
Interest bearing transaction accounts	10,331	10,038	10,092	10,316	10,277
Time deposits	3,796	4,014	4,185	4,314	4,266
Brokered deposits	3,298	3,361	2,940	3,025	2,901
Total deposits	$21,886	$21,935	$21,841	$22,353	$22,245
Noninterest bearing deposits to total deposits	20 %	21 %	21 %	21 %	22 %
Total loans to total deposits	78	79	79	76	76

Asset Quality
Provision for credit losses totaled $13.3 million for the fourth quarter of 2024, compared to $12.1 million in the third quarter of 2024 and $10.0 million in the fourth quarter of 2023. Provision for credit losses on loans exceeded net charge-offs by $1.8 million during the fourth quarter of 2024. The allowance for credit losses on loans at the end of the fourth quarter of 2024 was $235.0 million, compared to $233.2 million at the end of the third quarter of 2024 and $225.2 million at the end of the fourth quarter of 2023. The increase in the allowance for credit losses on loans on a linked quarter basis and year-over-year basis reflected continued normalization of the credit environment, macroeconomic conditions and activity in the loan portfolio. The allowance for credit losses on loans was 1.38 percent at the end of the fourth quarter of 2024, compared to 1.35 percent at the end of the third quarter of 2024 and 1.34 percent at the end of the fourth quarter of 2023.

Net charge-offs as a percentage of average loans for the fourth quarter of 2024 were 27 basis points, compared to 22 basis points in the third quarter of 2024 and 11 basis points in the fourth quarter of 2023. Net charge-offs in the fourth quarter of 2024 included $2.5 million of charge-offs associated with the run-off portfolio. Net charge-offs from the run-off portfolio accounted for 6 basis points of total net charge-offs during the fourth quarter and 9 basis points of total net charge-offs during the third quarter of 2024.

Total nonperforming loans at the end of the fourth quarter of 2024 were $110.7 million, compared to $101.7 million at the end of the third quarter of 2024 and $84.5 million at the end of the fourth quarter of 2023. The increase in nonperforming loans on a linked quarter basis was primarily due to increases from the real estate construction and real estate 1-4 family loan portfolios. The nonperforming loan coverage ratio ended the fourth quarter of 2024 at 212 percent, compared to 229 percent at the end of the third quarter of 2024 and 267 percent at the end of the fourth quarter of 2023. Total nonperforming assets as a percentage of total assets were 45 basis points at the end of the fourth quarter of 2024, compared to 38 basis points at the end of the third quarter of 2024 and 33 basis points at the end of the fourth quarter of 2023. The increase in nonperforming assets as a percentage of total assets on a linked quarter basis was primarily due to an increase in nonperforming loans and an increase in other nonperforming assets resulting from the addition of two foreclosed properties.

Asset Quality $ in millions	4Q24	3Q24	2Q24	1Q24	4Q23
Allowance for credit losses on loans to total loans	1.38 %	1.35 %	1.34 %	1.34 %	1.34 %
Allowance for credit losses on loans to nonperforming loans	212	229	223	212	267
Nonperforming loans to total loans	0.65	0.59	0.60	0.63	0.50
Net charge-off ratio (annualized)	0.27	0.22	0.19	0.19	0.11
Net charge-off ratio YTD (annualized)	0.22	0.20	0.19	0.19	0.12
Total nonperforming loans	$110.7	$101.7	$103.4	$107.3	$84.5
Total other nonperforming assets	10.5	2.6	3.4	5.0	5.8
Total nonperforming assets	$121.2	$104.3	$106.8	$112.3	$90.3
Reserve for unfunded commitments	$25.6	$25.6	$25.6	$25.6	$25.6

Capital
Total stockholders' equity at the end of the fourth quarter of 2024 was $3.5 billion, up slightly from the end of the third quarter 2024 and up $102.4 million from $3.4 billion at the end of the fourth quarter of 2023. The increase on a year-over-year basis was primarily due to an increase of $47.3 million in retained earnings, coupled with a $43.5 million recapture of accumulated other comprehensive income principally associated with the mark-to-market adjustment on AFS investment securities. Book value per share at the end of the fourth quarter of 2024 was $28.08, compared to $28.11 at the end of the third quarter of 2024 and $27.37 at the end of the fourth quarter of 2023. Tangible book value per share¹ at the end of the fourth quarter of 2024 was $16.80, compared to $16.78 at the end of the third quarter of 2024 and $15.92 at the end of the fourth quarter of 2023.

Total stockholders' equity as a percentage of total assets at the end of the fourth quarter of 2024 was 13.1 percent, up from 12.9 percent at the end of the third quarter of 2024 and up from 12.5 percent at the end the fourth quarter of 2023. Tangible common equity as a percentage of tangible assets¹ at the end of the fourth quarter of 2024 was 8.3 percent, compared to 8.2 percent at the end of the third quarter of 2024 and 7.7 percent at the end of the fourth quarter of 2023. Each of the regulatory capital ratios for Simmons and its lead subsidiary, Simmons Bank, continue to significantly exceed "well-capitalized" regulatory guidelines.

Select Capital Ratios	4Q24	3Q24	2Q24	1Q24	4Q23
Stockholders' equity to total assets	13.1 %	12.9 %	12.6 %	12.6 %	12.5 %
Tangible common equity to tangible assets1	8.3	8.2	7.8	7.8	7.7
Common equity tier 1 (CET1) ratio	12.4	12.1	12.0	12.0	12.1
Tier 1 leverage ratio	9.7	9.6	9.5	9.4	9.4
Tier 1 risk-based capital ratio	12.4	12.1	12.0	12.0	12.1
Total risk-based capital ratio	14.6	14.3	14.2	14.4	14.4

Share Repurchase Program
During the fourth quarter of 2024, Simmons did not repurchase shares under its stock repurchase program that was authorized in January 2024 (2024 Program), which replaced its former repurchase program that was authorized in January 2022. Remaining authorization under the 2024 Program as of December 31, 2024, was approximately $175 million. The timing, pricing and amount of any repurchases under the 2024 Program will be determined by Simmons' management at its discretion based on a variety of factors including, but not limited to, market conditions, trading volume and market price of Simmons' common stock, Simmons' capital needs, Simmons' working capital and investment requirements, other corporate considerations, economic conditions, and legal requirements.  The 2024 Program does not obligate Simmons to repurchase any common stock and may be modified, discontinued or suspended at any time without prior notice.

(1)	Non-GAAP measurement. See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" below
(2)	FTE – fully taxable equivalent basis using an effective tax rate of 26.135%

Conference Call
Management will conduct a live conference call to review this information beginning at 7:30 a.m. Central Time on Wednesday, January 22, 2025. Interested persons can listen to this call by dialing toll-free 1-844-481-2779 (North America only) and asking for the Simmons First National Corporation conference call, conference ID 10195421. In addition, the call will be available live or in recorded version on Simmons' website at simmonsbank.com for at least 60 days following the date of the call.

Simmons First National Corporation
Simmons First National Corporation (NASDAQ: SFNC) is a Mid-South based financial holding company that has paid cash dividends to its shareholders for 115 consecutive years. Its principal subsidiary, Simmons Bank, operates 222 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. Founded in 1903, Simmons Bank offers comprehensive financial solutions delivered with a client-centric approach. In 2024, Simmons Bank was recognized by Newsweek as one of America's Best Regional Banks 2025, by U.S. News & World Report as one of the 2024-2025 Best Companies to Work For in the South and by Forbes as one of America's Best-In-State Banks 2024 in Tennessee and America's Best-In-State Banks 2024 in Missouri.  Additional information about Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on X (formerly Twitter) or by visiting our newsroom.

Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from net income (including on a per share diluted basis), pre-tax, pre-provision earnings, net charge-offs, income available to common shareholders, noninterest income, and noninterest expense certain income and expense items attributable to, for example, merger activity (primarily including merger-related expenses), gains and/or losses on sale of branches, net branch right-sizing initiatives, early retirement program, FDIC special assessment charges and gain/loss on the sale of AFS investment securities. The Company has updated its calculation of certain non-GAAP financial measures to exclude the impact of gains or losses on the sale of AFS investment securities and has presented past periods on a comparable basis.

In addition, the Company also presents certain figures based on tangible common stockholders' equity, tangible assets and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of the impact of deposits and/or loans acquired through acquisitions, mortgage warehouse loans, and/or energy loans, or gains and/or losses on the sale of securities. The Company's management believes that these non-GAAP financial measures are useful to investors because they, among other things, present the results of the Company's ongoing operations without the effect of mergers or other items not central to the Company's ongoing business, as well as normalize for tax effects and certain other effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's ongoing businesses, and management uses these non-GAAP financial measures to assess the performance of the Company's ongoing businesses as related to prior financial periods. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements
Certain statements in this press release may not be based on historical facts and should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Makris's quote, may be identified by reference to future periods or by the use of forward-looking terminology, such as "believe," "budget," "expect," "foresee," "anticipate," "intend," "indicate," "target," "estimate," "plan," "project," "continue," "contemplate," "positions," "prospects," "predict," or "potential," by future conditional verbs such as "will," "would," "should," "could," "might" or "may," or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons' future growth, business strategies, lending capacity and lending activity, loan demand, revenue, assets, asset quality, profitability, dividends, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, digital banking initiatives, the Company's ability to recruit and retain key employees, the adequacy of the allowance for credit losses, and future economic conditions and interest rates. Any forward-looking statement speaks only as of the date of this press release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this press release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, changes in credit quality, changes in interest rates and related governmental policies, changes in loan demand, changes in deposit flows, changes in real estate values, changes in the assumptions used in making the forward-looking statements, changes in the securities markets generally or the price of Simmons' common stock specifically, changes in information technology affecting the financial industry, and changes in customer behaviors, including consumer spending, borrowing, and saving habits; general economic and market conditions; changes in governmental administrations; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and between Israel and Hamas) or other major events, or the prospect of these events; the soundness of other financial institutions and any indirect exposure related to the closings of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships; increased inflation; the loss of key employees; increased competition in the markets in which the Company operates and from non-bank financial institutions; increased unemployment; labor shortages; claims, damages, and fines related to litigation or government actions; changes in accounting principles relating to loan loss recognition (current expected credit losses); the Company's ability to manage and successfully integrate its mergers and acquisitions and to fully realize cost savings and other benefits associated with acquisitions; increased delinquency and foreclosure rates on commercial real estate loans; cyber or other information technology 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. In addition, there can be no guarantee that the board of directors (Board) of Simmons will approve a quarterly dividend in future quarters, and the timing, payment, and amount of future dividends (if any) is subject to, among other things, the discretion of the Board and may differ significantly from past dividends. Additional information on factors that might affect the Company's financial results is included in the Company's Form 10-K for the year ended December 31, 2023, and other reports that the Company has filed with or furnished to the U.S. Securities and Exchange Commission (the SEC), all of which are available from the SEC on its website, www.sec.gov.

 

Simmons First National Corporation									SFNC
Consolidated End of Period Balance Sheets
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands)
ASSETS
Cash and noninterest bearing balances due from banks	$      429,705		$      398,321		$      320,021		$      380,324		$      345,258
Interest bearing balances due from banks and federal funds sold	257,672		205,081		254,312		222,979		268,834
Cash and cash equivalents	687,377		603,402		574,333		603,303		614,092
Interest bearing balances due from banks - time	100		100		100		100		100
Investment securities - held-to-maturity	3,636,636		3,658,700		3,685,450		3,707,258		3,726,288
Investment securities - available-for-sale	2,529,426		2,691,094		2,885,904		3,027,558		3,152,153
Mortgage loans held for sale	11,417		8,270		13,053		11,899		9,373
Loans:
Loans	17,005,937		17,336,040		17,192,437		17,001,760		16,845,670
Allowance for credit losses on loans	(235,019)		(233,223)		(230,389)		(227,367)		(225,231)
Net loans	16,770,918		17,102,817		16,962,048		16,774,393		16,620,439
Premises and equipment	585,431		584,366		581,893		576,466		570,678
Foreclosed assets and other real estate owned	9,270		1,299		2,209		3,511		4,073
Interest receivable	123,243		125,700		126,625		122,781		122,430
Bank owned life insurance	531,805		508,781		505,023		503,348		500,559
Goodwill	1,320,799		1,320,799		1,320,799		1,320,799		1,320,799
Other intangible assets	97,242		101,093		104,943		108,795		112,645
Other assets	572,385		562,983		606,692		611,964		592,045
Total assets	$ 26,876,049		$ 27,269,404		$ 27,369,072		$ 27,372,175		$ 27,345,674
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing transaction accounts	$   4,460,517		$   4,521,715		$   4,624,186		$   4,697,539		$   4,800,880
Interest bearing transaction accounts and savings deposits	10,982,022		10,863,945		10,925,179		11,071,762		10,997,425
Time deposits	6,443,211		6,549,774		6,291,518		6,583,703		6,446,673
Total deposits	21,885,750		21,935,434		21,840,883		22,353,004		22,244,978
Federal funds purchased and securities sold
under agreements to repurchase	37,109		51,071		52,705		58,760		67,969
Other borrowings	745,372		1,045,878		1,346,378		871,874		972,366
Subordinated notes and debentures	366,293		366,255		366,217		366,179		366,141
Accrued interest and other liabilities	312,653		341,933		304,020		283,232		267,732
Total liabilities	23,347,177		23,740,571		23,910,203		23,933,049		23,919,186
Stockholders' equity:
Common stock	1,257		1,256		1,255		1,254		1,252
Surplus	2,511,590		2,508,438		2,506,469		2,503,673		2,499,930
Undivided profits	1,376,935		1,355,000		1,356,626		1,342,215		1,329,681
Accumulated other comprehensive (loss) income	(360,910)		(335,861)		(405,481)		(408,016)		(404,375)
Total stockholders' equity	3,528,872		3,528,833		3,458,869		3,439,126		3,426,488
Total liabilities and stockholders' equity	$ 26,876,049		$ 27,269,404		$ 27,369,072		$ 27,372,175		$ 27,345,674

 

Simmons First National Corporation									SFNC
Consolidated Statements of Income - Quarter-to-Date
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands, except per share data)
INTEREST INCOME
Loans (including fees)	$ 272,727		$ 277,939		$ 270,937		$ 261,490		$  261,505
Interest bearing balances due from banks and federal funds sold	2,913		2,921		2,964		3,010		3,115
Investment securities	50,162		53,220		55,050		58,001		58,755
Mortgage loans held for sale	180		209		194		148		143
TOTAL INTEREST INCOME	325,982		334,289		329,145		322,649		323,518
INTEREST EXPENSE
Time deposits	70,661		73,937		73,946		73,241		72,458
Other deposits	72,369		78,307		79,087		78,692		71,412
Federal funds purchased and securities
sold under agreements to repurchase	119		138		156		189		232
Other borrowings	11,386		17,067		15,025		11,649		16,607
Subordinated notes and debentures	6,505		7,128		7,026		6,972		7,181
TOTAL INTEREST EXPENSE	161,040		176,577		175,240		170,743		167,890
NET INTEREST INCOME	164,942		157,712		153,905		151,906		155,628
PROVISION FOR CREDIT LOSSES
Provision for credit losses on loans	13,332		12,148		11,099		10,206		11,225
Provision for credit losses on unfunded commitments	-		-		-		-		-
Provision for credit losses on investment securities - AFS	-		-		-		-		(1,196)
Provision for credit losses on investment securities - HTM	-		-		-		-		-
TOTAL PROVISION FOR CREDIT LOSSES	13,332		12,148		11,099		10,206		10,029
NET INTEREST INCOME AFTER PROVISION
FOR CREDIT LOSSES	151,610		145,564		142,806		141,700		145,599
NONINTEREST INCOME
Service charges on deposit accounts	12,978		12,713		12,252		11,955		12,782
Debit and credit card fees	8,323		8,144		8,162		8,246		7,822
Wealth management fees	8,828		8,226		8,274		7,478		7,679
Mortgage lending income	1,828		1,956		1,973		2,320		1,603
Bank owned life insurance income	3,780		3,757		3,876		3,814		3,094
Other service charges and fees (includes insurance income)	2,256		2,381		2,352		2,199		2,346
Gain (loss) on sale of securities	-		(28,393)		-		-		(20,218)
Other income	5,565		8,346		6,410		7,172		6,866
TOTAL NONINTEREST INCOME	43,558		17,130		43,299		43,184		21,974
NONINTEREST EXPENSE
Salaries and employee benefits	71,588		69,167		70,716		72,653		66,982
Occupancy expense, net	11,876		12,216		11,864		12,258		11,733
Furniture and equipment expense	5,671		5,612		5,623		5,141		5,445
Other real estate and foreclosure expense	317		87		117		179		189
Deposit insurance	5,550		5,571		5,682		7,135		15,220
Merger-related costs	-		-		-		-		-
Other operating expenses	46,115		44,540		45,352		42,513		48,570
TOTAL NONINTEREST EXPENSE	141,117		137,193		139,354		139,879		148,139
NET INCOME BEFORE INCOME TAXES	54,051		25,501		46,751		45,005		19,434
Provision for income taxes	5,732		761		5,988		6,134		(4,473)
NET INCOME	$   48,319		$   24,740		$   40,763		$   38,871		$    23,907
BASIC EARNINGS PER SHARE	$       0.38		$       0.20		$       0.32		$       0.31		$        0.19
DILUTED EARNINGS PER SHARE	$       0.38		$       0.20		$       0.32		$       0.31		$        0.19

 

Simmons First National Corporation									SFNC
Consolidated Risk-Based Capital
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands)
Tier 1 capital
Stockholders' equity	$   3,528,872		$   3,528,833		$   3,458,869		$   3,439,126		$   3,426,488
CECL transition provision (1)	30,873		30,873		30,873		30,873		61,746
Disallowed intangible assets, net of deferred tax	(1,385,128)		(1,388,549)		(1,391,969)		(1,394,672)		(1,398,810)
Unrealized loss (gain) on AFS securities	360,910		335,861		405,481		408,016		404,375
Total Tier 1 capital	2,535,527		2,507,018		2,503,254		2,483,343		2,493,799
Tier 2 capital
Subordinated notes and debentures	366,293		366,255		366,217		366,179		366,141
Subordinated debt phase out	(132,000)		(132,000)		(132,000)		(66,000)		(66,000)
Qualifying allowance for loan losses and
reserve for unfunded commitments	222,313		220,517		217,684		214,660		170,977
Total Tier 2 capital	456,606		454,772		451,901		514,839		471,118
Total risk-based capital	$   2,992,133		$   2,961,790		$   2,955,155		$   2,998,182		$   2,964,917
Risk weighted assets	$ 20,473,960		$ 20,790,941		$ 20,856,194		$ 20,782,094		$ 20,599,238
Adjusted average assets for leverage ratio	$ 26,037,459		$ 26,198,178		$ 26,371,545		$ 26,312,873		$ 26,552,988
Ratios at end of quarter
Equity to assets	13.13 %		12.94 %		12.64 %		12.56 %		12.53 %
Tangible common equity to tangible assets (2)	8.29 %		8.15 %		7.84 %		7.75 %		7.69 %
Common equity Tier 1 ratio (CET1)	12.38 %		12.06 %		12.00 %		11.95 %		12.11 %
Tier 1 leverage ratio	9.74 %		9.57 %		9.49 %		9.44 %		9.39 %
Tier 1 risk-based capital ratio	12.38 %		12.06 %		12.00 %		11.95 %		12.11 %
Total risk-based capital ratio	14.61 %		14.25 %		14.17 %		14.43 %		14.39 %

(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	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands)
Investment Securities - End of Period
Held-to-Maturity
U.S. Government agencies	$    455,869		$    455,179		$    454,488		$    453,805		$    453,121
Mortgage-backed securities	1,070,032		1,093,070		1,119,741		1,142,352		1,161,694
State and political subdivisions	1,857,177		1,857,283		1,857,409		1,855,642		1,856,674
Other securities	253,558		253,168		253,812		255,459		254,799
Total held-to-maturity (net of credit losses)	3,636,636		3,658,700		3,685,450		3,707,258		3,726,288
Available-for-Sale
U.S. Treasury	$           996		$        1,290		$        1,275		$        1,964		$        2,254
U.S. Government agencies	54,547		58,397		66,563		69,801		72,502
Mortgage-backed securities	1,392,759		1,510,402		1,730,842		1,845,364		1,940,307
State and political subdivisions	858,182		898,178		864,190		874,849		902,793
Other securities	222,942		222,827		223,034		235,580		234,297
Total available-for-sale (net of credit losses)	2,529,426		2,691,094		2,885,904		3,027,558		3,152,153
Total investment securities (net of credit losses)	$ 6,166,062		$ 6,349,794		$ 6,571,354		$ 6,734,816		$ 6,878,441
Fair value - HTM investment securities	$ 2,949,951		$ 3,109,610		$ 3,005,524		$ 3,049,281		$ 3,135,370

 

Simmons First National Corporation									SFNC
Consolidated Loans
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands)
Loan Portfolio - End of Period
Consumer:
Credit cards	$      181,675		$      177,696		$      178,354		$      182,742		$      191,204
Other consumer	127,319		113,896		130,278		124,531		127,462
Total consumer	308,994		291,592		308,632		307,273		318,666
Real Estate:
Construction	2,789,249		2,796,378		3,056,703		3,331,739		3,144,220
Single-family residential	2,689,946		2,724,648		2,666,201		2,624,738		2,641,556
Other commercial real estate	7,912,336		7,992,437		7,760,266		7,508,049		7,552,410
Total real estate	13,391,531		13,513,463		13,483,170		13,464,526		13,338,186
Commercial:
Commercial	2,434,175		2,467,384		2,484,474		2,499,311		2,490,176
Agricultural	261,154		314,340		285,181		226,642		232,710
Total commercial	2,695,329		2,781,724		2,769,655		2,725,953		2,722,886
Other	610,083		749,261		630,980		504,008		465,932
Total loans	$ 17,005,937		$ 17,336,040		$ 17,192,437		$ 17,001,760		$ 16,845,670

 

Simmons First National Corporation									SFNC
Consolidated Allowance and Asset Quality
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands)
Allowance for Credit Losses on Loans
Beginning balance	$  233,223		$  230,389		$ 227,367		$   225,231		$  218,547
Loans charged off:
Credit cards	1,629		1,744		1,418		1,646		1,500
Other consumer	505		524		550		732		767
Real estate	3,810		159		123		2,857		1,023
Commercial	6,796		8,235		7,243		4,593		3,105
Total loans charged off	12,740		10,662		9,334		9,828		6,395
Recoveries of loans previously charged off:
Credit cards	391		231		221		248		242
Other consumer	279		275		509		333		518
Real estate	275		403		72		735		785
Commercial	259		439		455		442		309
Total recoveries	1,204		1,348		1,257		1,758		1,854
Net loans charged off	11,536		9,314		8,077		8,070		4,541
Provision for credit losses on loans	13,332		12,148		11,099		10,206		11,225
Balance, end of quarter	$  235,019		$  233,223		$ 230,389		$   227,367		$  225,231
Nonperforming assets
Nonperforming loans:
Nonaccrual loans	$  110,154		$  100,865		$ 102,891		$   105,788		$    83,325
Loans past due 90 days or more	603		830		558		1,527		1,147
Total nonperforming loans	110,757		101,695		103,449		107,315		84,472
Other nonperforming assets:
Foreclosed assets and other real estate owned	9,270		1,299		2,209		3,511		4,073
Other nonperforming assets	1,202		1,311		1,167		1,491		1,726
Total other nonperforming assets	10,472		2,610		3,376		5,002		5,799
Total nonperforming assets	$  121,229		$  104,305		$ 106,825		$   112,317		$    90,271
Ratios
Allowance for credit losses on loans to total loans	1.38 %		1.35 %		1.34 %		1.34 %		1.34 %
Allowance for credit losses to nonperforming loans	212 %		229 %		223 %		212 %		267 %
Nonperforming loans to total loans	0.65 %		0.59 %		0.60 %		0.63 %		0.50 %
Nonperforming assets to total assets	0.45 %		0.38 %		0.39 %		0.41 %		0.33 %
Annualized net charge offs to average loans (QTD)	0.27 %		0.22 %		0.19 %		0.19 %		0.11 %
Annualized net charge offs to average loans (YTD)	0.22 %		0.20 %		0.19 %		0.19 %		0.12 %
Annualized net credit card charge offs to
average credit card loans (QTD)	2.63 %		3.23 %		2.50 %		2.88 %		2.49 %

 

Simmons First National Corporation																	SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
	Three Months Ended Dec 2024						Three Months Ended Sep 2024						Three Months Ended Dec 2023
($ in thousands)	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
ASSETS
Earning assets:
Interest bearing balances due from banks
and federal funds sold	$      238,731		$      2,913		4.85 %		$      204,505		$      2,921		5.68 %		$      230,464		$      3,115		5.36 %
Investment securities - taxable	3,633,138		34,459		3.77 %		3,826,934		37,473		3.90 %		4,410,681		42,895		3.86 %
Investment securities - non-taxable (FTE)	2,633,148		21,260		3.21 %		2,617,532		21,318		3.24 %		2,555,125		21,523		3.34 %
Mortgage loans held for sale	10,713		180		6.68 %		12,425		209		6.69 %		7,644		143		7.42 %
Loans - including fees (FTE)	17,212,034		273,594		6.32 %		17,208,162		278,766		6.44 %		16,793,211		262,353		6.20 %
Total interest earning assets (FTE)	23,727,764		332,406		5.57 %		23,869,558		340,687		5.68 %		23,997,125		330,029		5.46 %
Non-earning assets	3,351,179						3,346,882						3,373,686
Total assets	$ 27,078,943						$ 27,216,440						$ 27,370,811
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts	$ 10,967,450		$    72,369		2.63 %		$ 10,826,514		$    78,307		2.88 %		$ 10,730,701		$    71,412		2.64 %
Time deposits	6,397,251		70,661		4.39 %		6,355,801		73,937		4.63 %		6,509,663		72,458		4.42 %
Total interest bearing deposits	17,364,701		143,030		3.28 %		17,182,315		152,244		3.52 %		17,240,364		143,870		3.31 %
Federal funds purchased and securities
sold under agreement to repurchase	47,314		119		1.00 %		51,830		138		1.06 %		65,871		232		1.40 %
Other borrowings	932,366		11,386		4.86 %		1,252,435		17,067		5.42 %		1,212,501		16,607		5.43 %
Subordinated notes and debentures	366,274		6,505		7.07 %		366,236		7,128		7.74 %		366,123		7,181		7.78 %
Total interest bearing liabilities	18,710,655		161,040		3.42 %		18,852,816		176,577		3.73 %		18,884,859		167,890		3.53 %
Noninterest bearing liabilities:
Noninterest bearing deposits	4,491,361						4,535,105						4,864,274
Other liabilities	333,781						323,378						285,431
Total liabilities	23,535,797						23,711,299						24,034,564
Stockholders' equity	3,543,146						3,505,141						3,336,247
Total liabilities and stockholders' equity	$ 27,078,943						$ 27,216,440						$ 27,370,811
Net interest income (FTE)			$  171,366						$  164,110						$  162,139
Net interest spread (FTE)					2.15 %						1.95 %						1.93 %
Net interest margin (FTE)					2.87 %						2.74 %						2.68 %

 

Simmons First National Corporation									SFNC
Consolidated - Selected Financial Data
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands, except share data)
QUARTER-TO-DATE
Financial Highlights - As Reported
Net Income	$        48,319		$        24,740		$        40,763		$        38,871		$        23,907
Diluted earnings per share	0.38		0.20		0.32		0.31		0.19
Return on average assets	0.71 %		0.36 %		0.60 %		0.57 %		0.35 %
Return on average common equity	5.43 %		2.81 %		4.75 %		4.54 %		2.84 %
Return on tangible common equity (non-GAAP) (1)	9.59 %		5.27 %		8.67 %		8.33 %		5.61 %
Net interest margin (FTE)	2.87 %		2.74 %		2.69 %		2.66 %		2.68 %
Efficiency ratio (2)	65.66 %		75.70 %		68.38 %		69.41 %		80.46 %
FTE adjustment	6,424		6,398		6,576		6,422		6,511
Average diluted shares outstanding	126,232,084		125,999,269		125,758,166		125,661,950		125,609,265
Shares repurchased under plan	-		-		-		-		-
Average price of shares repurchased	-		-		-		-		-
Cash dividends declared per common share	0.210		0.210		0.210		0.210		0.200
Accretable yield on acquired loans	1,863		1,496		1,569		1,123		1,762
Financial Highlights - Adjusted (non-GAAP) (1)
Adjusted earnings	$        49,634		$        46,005		$        41,897		$        40,351		$        50,215
Adjusted diluted earnings per share	0.39		0.37		0.33		0.32		0.40
Adjusted return on average assets	0.73 %		0.67 %		0.62 %		0.60 %		0.73 %
Adjusted return on average common equity	5.57 %		5.22 %		4.88 %		4.71 %		5.97 %
Adjusted return on tangible common equity	9.83 %		9.34 %		8.89 %		8.62 %		11.10 %
Adjusted efficiency ratio (2)	62.89 %		63.38 %		65.68 %		66.42 %		62.91 %
YEAR-TO-DATE
Financial Highlights - GAAP
Net Income	$      152,693		$      104,374		$        79,634		$        38,871		$      175,057
Diluted earnings per share	1.21		0.83		0.63		0.31		1.38
Return on average assets	0.56 %		0.51 %		0.59 %		0.57 %		0.64 %
Return on average common equity	4.38 %		4.02 %		4.64 %		4.54 %		5.21 %
Return on tangible common equity (non-GAAP) (1)	7.96 %		7.39 %		8.50 %		8.33 %		9.76 %
Net interest margin (FTE)	2.74 %		2.70 %		2.68 %		2.66 %		2.78 %
Efficiency ratio (2)	69.57 %		71.00 %		68.90 %		69.41 %		67.75 %
FTE adjustment	25,820		19,396		12,998		6,422		25,443
Average diluted shares outstanding	126,115,606		125,910,260		125,693,536		125,661,950		126,775,704
Cash dividends declared per common share	0.840		0.630		0.420		0.210		0.800
Financial Highlights - Adjusted (non-GAAP) (1)
Adjusted earnings	$      177,887		$      128,253		$        82,248		$        40,351		$      207,716
Adjusted diluted earnings per share	1.41		1.02		0.65		0.32		1.64
Adjusted return on average assets	0.65 %		0.63 %		0.61 %		0.60 %		0.75 %
Adjusted return on average common equity	5.10 %		4.94 %		4.80 %		4.71 %		6.18 %
Adjusted return on tangible common equity	9.18 %		8.96 %		8.76 %		8.62 %		11.46 %
Adjusted efficiency ratio (2)	64.56 %		65.14 %		66.05 %		66.42 %		61.32 %
END OF PERIOD
Book value per share	$          28.08		$          28.11		$          27.56		$          27.42		$          27.37
Tangible book value per share	16.80		16.78		16.20		16.02		15.92
Shares outstanding	125,651,540		125,554,598		125,487,520		125,419,618		125,184,119
Full-time equivalent employees	2,946		2,972		2,961		2,989		3,007
Total number of financial centers	222		234		234		233		234

(1) Non-GAAP measurement that management believes aids in the understanding and discussion of results. Reconciliations to GAAP are included in the schedules accompanying this release.

(2) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues. Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is a non-GAAP measurement.

 

Simmons First National Corporation									SFNC
Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Quarter-to-Date
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
(in thousands, except per share data)
QUARTER-TO-DATE
Net income	$    48,319		$    24,740		$   40,763		$     38,871		$    23,907
Certain items (non-GAAP)
FDIC Deposit Insurance special assessment	-		-		283		1,549		10,521
Early retirement program	200		(1)		118		219		1,032
Termination of vendor and software services	-		(13)		615		-		-
Loss (gain) on sale of securities	-		28,393		-		-		20,218
Branch right sizing (net)	1,581		410		519		236		3,846
Tax effect of certain items (1)	(466)		(7,524)		(401)		(524)		(9,309)
Certain items, net of tax	1,315		21,265		1,134		1,480		26,308
Adjusted earnings (non-GAAP)	$    49,634		$    46,005		$   41,897		$     40,351		$    50,215
Diluted earnings per share	$        0.38		$        0.20		$       0.32		$         0.31		$        0.19
Certain items (non-GAAP)
FDIC Deposit Insurance special assessment	-		-		-		0.01		0.08
Early retirement program	-		-		-		-		0.01
Termination of vendor and software services	-		-		0.01		-		-
Loss (gain) on sale of securities	-		0.23		-		-		0.16
Branch right sizing (net)	0.01		-		-		-		0.03
Tax effect of certain items (1)	-		(0.06)		-		-		(0.07)
Certain items, net of tax	0.01		0.17		0.01		0.01		0.21
Adjusted diluted earnings per share (non-GAAP)	$        0.39		$        0.37		$       0.33		$         0.32		$        0.40
(1) Effective tax rate of 26.135%.
Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)
QUARTER-TO-DATE
Noninterest income	$    43,558		$    17,130		$   43,299		$     43,184		$    21,974
Certain noninterest income items
Loss (gain) on sale of securities	-		28,393		-		-		20,218
Adjusted noninterest income (non-GAAP)	$    43,558		$    45,523		$   43,299		$     43,184		$    42,192
Noninterest expense	$  141,117		$  137,193		$ 139,354		$   139,879		$  148,139
Certain noninterest expense items
Early retirement program	(200)		1		(118)		(219)		(1,032)
FDIC Deposit Insurance special assessment	-		-		(283)		(1,549)		(10,521)
Termination of vendor and software services	-		13		(615)		-		-
Branch right sizing expense	(1,581)		(410)		(519)		(236)		(3,846)
Adjusted noninterest expense (non-GAAP)	$  139,336		$  136,797		$ 137,819		$   137,875		$  132,740
Salaries and employee benefits	$    71,588		$    69,167		$   70,716		$     72,653		$    66,982
Certain salaries and employee benefits items
Early retirement program	(200)		1		(118)		(219)		(1,032)
Other	-		(1)		1		-		2
Adjusted salaries and employee benefits (non-GAAP)	$    71,388		$    69,167		$   70,599		$     72,434		$    65,952
Other operating expenses	$    46,115		$    44,540		$   45,352		$     42,513		$    48,570
Certain other operating expenses items
Termination of vendor and software services	-		13		(615)		-		-
Branch right sizing expense	(1,457)		(184)		(392)		(83)		(3,708)
Adjusted other operating expenses (non-GAAP)	$    44,658		$    44,369		$   44,345		$     42,430		$    44,862

 

Simmons First National Corporation									SFNC
Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Year-to-Date
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
(in thousands, except per share data)
YEAR-TO-DATE
Net income	$  152,693		$  104,374		$   79,634		$     38,871		$  175,057
Certain items (non-GAAP)
FDIC Deposit Insurance special assessment	1,832		1,832		1,832		1,549		10,521
Merger related costs	-		-		-		-		1,420
Early retirement program	536		336		337		219		6,198
Termination of vendor and software services	602		602		615		-		-
Loss (gain) on sale of securities	28,393		28,393		-		-		20,609
Branch right sizing (net)	2,746		1,165		755		236		5,467
Tax effect of certain items (1)	(8,915)		(8,449)		(925)		(524)		(11,556)
Certain items, net of tax	25,194		23,879		2,614		1,480		32,659
Adjusted earnings (non-GAAP)	$  177,887		$  128,253		$   82,248		$     40,351		$  207,716
Diluted earnings per share	$        1.21		$        0.83		$       0.63		$         0.31		$        1.38
Certain items (non-GAAP)
FDIC Deposit Insurance special assessment	0.02		0.02		0.02		0.01		0.08
Merger related costs	-		-		-		-		0.01
Early retirement program	-		-		-		-		0.05
Loss (gain) on sale of securities	0.23		0.23		-		-		0.17
Branch right sizing (net)	0.02		0.01		0.01		-		0.04
Tax effect of certain items (1)	(0.07)		(0.07)		(0.01)		-		(0.09)
Certain items, net of tax	0.20		0.19		0.02		0.01		0.26
Adjusted diluted earnings per share (non-GAAP)	$        1.41		$        1.02		$       0.65		$         0.32		$        1.64
(1) Effective tax rate of 26.135%.
Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)
YEAR-TO-DATE
Noninterest income	$  147,171		$  103,613		$   86,483		$     43,184		$  155,566
Certain noninterest income items
Loss (gain) on sale of securities	28,393		28,393		-		-		20,609
Adjusted noninterest income (non-GAAP)	$  175,564		$  132,006		$   86,483		$     43,184		$  176,175
Noninterest expense	$  557,543		$  416,426		$ 279,233		$   139,879		$  563,061
Certain noninterest expense items
Merger related costs	-		-		-		-		(1,420)
Early retirement program	(536)		(336)		(337)		(219)		(6,198)
FDIC Deposit Insurance special assessment	(1,832)		(1,832)		(1,832)		(1,549)		(10,521)
Termination of vendor and software services	(602)		(602)		(615)		-		-
Branch right sizing expense	(2,746)		(1,165)		(755)		(236)		(5,467)
Adjusted noninterest expense (non-GAAP)	$  551,827		$  412,491		$ 275,694		$   137,875		$  539,455
Salaries and employee benefits	$  284,124		$  212,536		$ 143,369		$     72,653		$  286,117
Certain salaries and employee benefits items
Early retirement program	(536)		(336)		(337)		(219)		(6,198)
Other	-		-		1		-		2
Adjusted salaries and employee benefits (non-GAAP)	$  283,588		$  212,200		$ 143,033		$     72,434		$  279,921
Other operating expenses	$  178,520		$  132,405		$   87,865		$     42,513		$  177,164
Certain other operating expenses items
Termination of vendor and software services	(602)		(602)		(615)		-		-
Branch right sizing expense	(2,116)		(659)		(475)		(83)		(4,937)
Adjusted other operating expenses (non-GAAP)	$  175,802		$  131,144		$   86,775		$     42,430		$  172,227

 

Simmons First National Corporation									SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands, except per share data)
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets
Total common stockholders' equity	$   3,528,872		$   3,528,833		$   3,458,869		$   3,439,126		$   3,426,488
Intangible assets:
Goodwill	(1,320,799)		(1,320,799)		(1,320,799)		(1,320,799)		(1,320,799)
Other intangible assets	(97,242)		(101,093)		(104,943)		(108,795)		(112,645)
Total intangibles	(1,418,041)		(1,421,892)		(1,425,742)		(1,429,594)		(1,433,444)
Tangible common stockholders' equity	$   2,110,831		$   2,106,941		$   2,033,127		$   2,009,532		$   1,993,044
Total assets	$ 26,876,049		$ 27,269,404		$ 27,369,072		$ 27,372,175		$ 27,345,674
Intangible assets:
Goodwill	(1,320,799)		(1,320,799)		(1,320,799)		(1,320,799)		(1,320,799)
Other intangible assets	(97,242)		(101,093)		(104,943)		(108,795)		(112,645)
Total intangibles	(1,418,041)		(1,421,892)		(1,425,742)		(1,429,594)		(1,433,444)
Tangible assets	$ 25,458,008		$ 25,847,512		$ 25,943,330		$ 25,942,581		$ 25,912,230
Ratio of common equity to assets	13.13 %		12.94 %		12.64 %		12.56 %		12.53 %
Ratio of tangible common equity to tangible assets	8.29 %		8.15 %		7.84 %		7.75 %		7.69 %
Calculation of Tangible Book Value per Share
Total common stockholders' equity	$   3,528,872		$   3,528,833		$   3,458,869		$   3,439,126		$   3,426,488
Intangible assets:
Goodwill	(1,320,799)		(1,320,799)		(1,320,799)		(1,320,799)		(1,320,799)
Other intangible assets	(97,242)		(101,093)		(104,943)		(108,795)		(112,645)
Total intangibles	(1,418,041)		(1,421,892)		(1,425,742)		(1,429,594)		(1,433,444)
Tangible common stockholders' equity	$   2,110,831		$   2,106,941		$   2,033,127		$   2,009,532		$   1,993,044
Shares of common stock outstanding	125,651,540		125,554,598		125,487,520		125,419,618		125,184,119
Book value per common share	$          28.08		$          28.11		$          27.56		$          27.42		$          27.37
Tangible book value per common share	$          16.80		$          16.78		$          16.20		$          16.02		$          15.92
Calculation of Coverage Ratio of Uninsured, Non-Collateralized Deposits
Uninsured deposits at Simmons Bank	$   8,467,291		$   8,355,496		$   8,186,903		$   8,413,514		$   8,328,444
Less: Collateralized deposits (excluding portion that is FDIC insured)	2,790,339		2,710,167		2,835,424		2,995,241		2,846,716
Less: Intercompany eliminations	1,045,734		986,626		943,979		775,461		728,480
Total uninsured, non-collateralized deposits	$   4,631,218		$   4,658,703		$   4,407,500		$   4,642,812		$   4,753,248
FHLB borrowing availability	$   4,716,000		$   4,955,000		$   4,910,000		$   5,326,000		$   5,401,000
Unpledged securities	4,103,000		4,110,000		4,145,000		4,122,000		3,817,000
Fed funds lines, Fed discount window and
Bank Term Funding Program (1)	2,081,000		2,109,000		2,065,000		2,009,000		1,998,000
Additional liquidity sources	$ 10,900,000		$ 11,174,000		$ 11,120,000		$ 11,457,000		$ 11,216,000
Uninsured, non-collateralized deposit coverage ratio	2.4		2.4		2.5		2.5		2.4
(1) The Bank Term Funding Program closed for new loans on March 11, 2024. At no time did Simmons borrow funds under this program.
Calculation of Net Charge Off Ratio
Net charge offs	$        11,536		$          9,314		$          8,077		$          8,070
Less: Net charge offs from run-off portfolio (1)	2,500		3,500		6,700		4,500
Net charge offs excluding run-off portfolio	$          9,036		$          5,814		$          1,377		$          3,570
Average total loans	$ 17,212,034		$ 17,208,162		$ 17,101,799		$ 16,900,496
Annualized net charge offs to average loans (NCO ratio)	0.27 %		0.22 %		0.19 %		0.19 %
NCO ratio, excluding net charge offs associated with run-off
portfolio (annualized)	0.21 %		0.13 %		0.03 %		0.08 %
(1) Run-off portfolio consists of asset based lending and small equipment finance portfolios obtained in acquisitions.

 

Simmons First National Corporation									SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands)
Calculation of Adjusted Return on Average Assets
Net income	$        48,319		$        24,740		$        40,763		$        38,871		$        23,907
Certain items (non-GAAP)
FDIC Deposit Insurance special assessment	-		-		283		1,549		10,521
Early retirement program	200		(1)		118		219		1,032
Termination of vendor and software services	-		(13)		615		-		-
Loss (gain) on sale of securities	-		28,393		-		-		20,218
Branch right sizing (net)	1,581		410		519		236		3,846
Tax effect of certain items (2)	(466)		(7,524)		(401)		(524)		(9,309)
Adjusted earnings (non-GAAP)	$        49,634		$        46,005		$        41,897		$        40,351		$        50,215
Average total assets	$ 27,078,943		$ 27,216,440		$ 27,305,277		$ 27,259,399		$ 27,370,811
Return on average assets	0.71 %		0.36 %		0.60 %		0.57 %		0.35 %
Adjusted return on average assets (non-GAAP)	0.73 %		0.67 %		0.62 %		0.60 %		0.73 %
Calculation of Return on Tangible Common Equity
Net income available to common stockholders	$        48,319		$        24,740		$        40,763		$        38,871		$        23,907
Amortization of intangibles, net of taxes	2,843		2,845		2,845		2,844		2,965
Total income available to common stockholders	$        51,162		$        27,585		$        43,608		$        41,715		$        26,872
Certain items (non-GAAP)
FDIC Deposit Insurance special assessment	$                -		$                -		$             283		$          1,549		$        10,521
Early retirement program	200		(1)		118		219		1,032
Termination of vendor and software services	-		(13)		615		-		-
Loss (gain) on sale of securities	-		28,393		-		-		20,218
Branch right sizing (net)	1,581		410		519		236		3,846
Tax effect of certain items (2)	(466)		(7,524)		(401)		(524)		(9,309)
Adjusted earnings (non-GAAP)	49,634		46,005		41,897		40,351		50,215
Amortization of intangibles, net of taxes	2,843		2,845		2,845		2,844		2,965
Total adjusted earnings available to common stockholders (non-GAAP)	$        52,477		$        48,850		$        44,742		$        43,195		$        53,180
Average common stockholders' equity	$   3,543,146		$   3,505,141		$   3,451,155		$   3,447,021		$   3,336,247
Average intangible assets:
Goodwill	(1,320,799)		(1,320,799)		(1,320,799)		(1,320,799)		(1,320,799)
Other intangibles	(99,405)		(103,438)		(107,173)		(111,023)		(114,861)
Total average intangibles	(1,420,204)		(1,424,237)		(1,427,972)		(1,431,822)		(1,435,660)
Average tangible common stockholders' equity (non-GAAP)	$   2,122,942		$   2,080,904		$   2,023,183		$   2,015,199		$   1,900,587
Return on average common equity	5.43 %		2.81 %		4.75 %		4.54 %		2.84 %
Return on tangible common equity	9.59 %		5.27 %		8.67 %		8.33 %		5.61 %
Adjusted return on average common equity (non-GAAP)	5.57 %		5.22 %		4.88 %		4.71 %		5.97 %
Adjusted return on tangible common equity (non-GAAP)	9.83 %		9.34 %		8.89 %		8.62 %		11.10 %
Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)
Noninterest expense (efficiency ratio numerator)	$      141,117		$      137,193		$      139,354		$      139,879		$      148,139
Certain noninterest expense items (non-GAAP)
Early retirement program	(200)		1		(118)		(219)		(1,032)
FDIC Deposit Insurance special assessment	-		-		(283)		(1,549)		(10,521)
Termination of vendor and software services	-		13		(615)		-		-
Branch right sizing expense	(1,581)		(410)		(519)		(236)		(3,846)
Other real estate and foreclosure expense adjustment	(317)		(87)		(117)		(179)		(189)
Amortization of intangibles adjustment	(3,850)		(3,851)		(3,852)		(3,850)		(4,015)
Adjusted efficiency ratio numerator	$      135,169		$      132,859		$      133,850		$      133,846		$      128,536
Net interest income	$      164,942		$      157,712		$      153,905		$      151,906		$      155,628
Noninterest income	43,558		17,130		43,299		43,184		21,974
Fully tax-equivalent adjustment (effective tax rate of 26.135%)	6,424		6,398		6,576		6,422		6,511
Efficiency ratio denominator	214,924		181,240		203,780		201,512		184,113
Certain noninterest income items (non-GAAP)
(Gain) loss on sale of securities	-		28,393		-		-		20,218
Adjusted efficiency ratio denominator	$      214,924		$      209,633		$      203,780		$      201,512		$      204,331
Efficiency ratio (1)	65.66 %		75.70 %		68.38 %		69.41 %		80.46 %
Adjusted efficiency ratio (non-GAAP) (1)	62.89 %		63.38 %		65.68 %		66.42 %		62.91 %

(1) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues.  Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is a non-GAAP measurement.

(2) Effective tax rate of 26.135%.

 

Simmons First National Corporation									SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands)
Calculation of Total Revenue and Adjusted Total Revenue
Net interest income	$      164,942		$      157,712		$      153,905		$      151,906		$      155,628
Noninterest income	43,558		17,130		43,299		43,184		21,974
Total revenue	208,500		174,842		197,204		195,090		177,602
Certain items, pre-tax (non-GAAP)
Less: Gain (loss) on sale of securities	-		(28,393)		-		-		(20,218)
Adjusted total revenue	$      208,500		$      203,235		$      197,204		$      195,090		$      197,820
Calculation of Pre-Provision Net Revenue (PPNR)
Net interest income	$      164,942		$      157,712		$      153,905		$      151,906		$      155,628
Noninterest income	43,558		17,130		43,299		43,184		21,974
Total revenue	208,500		174,842		197,204		195,090		177,602
Less: Noninterest expense	141,117		137,193		139,354		139,879		148,139
Pre-Provision Net Revenue (PPNR)	$        67,383		$        37,649		$        57,850		$        55,211		$        29,463
Calculation of Adjusted Pre-Provision Net Revenue
Pre-Provision Net Revenue (PPNR)	$        67,383		$        37,649		$        57,850		$        55,211		$        29,463
Certain items, pre-tax (non-GAAP)
Plus: Loss (gain) on sale of securities	-		28,393		-		-		20,218
Plus: FDIC Deposit Insurance special assessment	-		-		283		1,549		10,521
Plus: Early retirement program costs	200		(1)		118		219		1,032
Plus: Termination of vendor and software services	-		(13)		615		-		-
Plus: Branch right sizing costs (net)	1,581		410		519		236		3,846
Adjusted Pre-Provision Net Revenue	$        69,164		$        66,438		$        59,385		$        57,215		$        65,080

 

Simmons First National Corporation									SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date
For the Quarters Ended	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31
(Unaudited)	2024		2024		2024		2024		2023
($ in thousands)
Calculation of Adjusted Return on Average Assets
Net income	$      152,693		$      104,374		$        79,634		$        38,871		$      175,057
Certain items (non-GAAP)
FDIC Deposit Insurance special assessment	1,832		1,832		1,832		1,549		10,521
Merger related costs	-		-		-		-		1,420
Early retirement program	536		336		337		219		6,198
Termination of vendor and software services	602		602		615		-		-
Loss (gain) on sale of securities	28,393		28,393		-		-		20,609
Branch right sizing (net)	2,746		1,165		755		236		5,467
Tax effect of certain items (2)	(8,915)		(8,449)		(925)		(524)		(11,556)
Adjusted earnings (non-GAAP)	$      177,887		$      128,253		$        82,248		$        40,351		$      207,716
Average total assets	$ 27,214,647		$ 27,260,212		$ 27,282,338		$ 27,259,399		$ 27,554,859
Return on average assets	0.56 %		0.51 %		0.59 %		0.57 %		0.64 %
Adjusted return on average assets (non-GAAP)	0.65 %		0.63 %		0.61 %		0.60 %		0.75 %
Calculation of Return on Tangible Common Equity
Net income available to common stockholders	$      152,693		$      104,374		$        79,634		$        38,871		$      175,057
Amortization of intangibles, net of taxes	11,377		8,534		5,689		2,844		12,044
Total income available to common stockholders	$      164,070		$      112,908		$        85,323		$        41,715		$      187,101
Certain items (non-GAAP)
FDIC Deposit Insurance special assessment	$          1,832		$          1,832		$          1,832		$          1,549		$        10,521
Merger related costs	-		-		-		-		1,420
Early retirement program	536		336		337		219		6,198
Termination of vendor and software services	602		602		615		-		-
Loss (gain) on sale of securities	28,393		28,393		-		-		20,609
Branch right sizing (net)	2,746		1,165		755		236		5,467
Tax effect of certain items (2)	(8,915)		(8,449)		(925)		(524)		(11,556)
Adjusted earnings (non-GAAP)	177,887		128,253		82,248		40,351		207,716
Amortization of intangibles, net of taxes	11,377		8,534		5,689		2,844		12,044
Total adjusted earnings available to common stockholders (non-GAAP)	$      189,264		$      136,787		$        87,937		$        43,195		$      219,760
Average common stockholders' equity	$   3,486,822		$   3,467,908		$   3,449,089		$   3,447,021		$   3,359,312
Average intangible assets:
Goodwill	(1,320,799)		(1,320,799)		(1,320,799)		(1,320,799)		(1,320,510)
Other intangibles	(105,239)		(107,197)		(109,098)		(111,023)		(121,098)
Total average intangibles	(1,426,038)		(1,427,996)		(1,429,897)		(1,431,822)		(1,441,608)
Average tangible common stockholders' equity (non-GAAP)	$   2,060,784		$   2,039,912		$   2,019,192		$   2,015,199		$   1,917,704
Return on average common equity	4.38 %		4.02 %		4.64 %		4.54 %		5.21 %
Return on tangible common equity	7.96 %		7.39 %		8.50 %		8.33 %		9.76 %
Adjusted return on average common equity (non-GAAP)	5.10 %		4.94 %		4.80 %		4.71 %		6.18 %
Adjusted return on tangible common equity (non-GAAP)	9.18 %		8.96 %		8.76 %		8.62 %		11.46 %
Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1)
Noninterest expense (efficiency ratio numerator)	$      557,543		$      416,426		$      279,233		$      139,879		$      563,061
Certain noninterest expense items (non-GAAP)
Merger related costs	-		-		-		-		(1,420)
Early retirement program	(536)		(336)		(337)		(219)		(6,198)
FDIC Deposit Insurance special assessment	(1,832)		(1,832)		(1,832)		(1,549)		(10,521)
Termination of vendor and software services	(602)		(602)		(615)		-		-
Branch right sizing expense	(2,746)		(1,165)		(755)		(236)		(5,467)
Other real estate and foreclosure expense adjustment	(700)		(383)		(296)		(179)		(892)
Amortization of intangibles adjustment	(15,403)		(11,553)		(7,702)		(3,850)		(16,306)
Adjusted efficiency ratio numerator	$      535,724		$      400,555		$      267,696		$      133,846		$      522,257
Net interest income	$      628,465		$      463,523		$      305,811		$      151,906		$      650,126
Noninterest income	147,171		103,613		86,483		43,184		155,566
Fully tax-equivalent adjustment (effective tax rate of 26.135%)	25,820		19,396		12,998		6,422		25,443
Efficiency ratio denominator	801,456		586,532		405,292		201,512		831,135
Certain noninterest income items (non-GAAP)
(Gain) loss on sale of securities	28,393		28,393		-		-		20,609
Adjusted efficiency ratio denominator	$      829,849		$      614,925		$      405,292		$      201,512		$      851,744
Efficiency ratio (1)	69.57 %		71.00 %		68.90 %		69.41 %		67.75 %
Adjusted efficiency ratio (non-GAAP) (1)	64.56 %		65.14 %		66.05 %		66.42 %		61.32 %

(1) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues.  Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is a non-GAAP measurement.

(2) Effective tax rate of 26.135%.

 

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SOURCE Simmons First National Corporation

FAQ

What was SFNC's net income and EPS for Q4 2024?

Simmons First National reported net income of $48.3 million and diluted earnings per share of $0.38 for Q4 2024.

How did SFNC's net interest margin change in Q4 2024?

SFNC's net interest margin increased by 13 basis points to 2.87% in Q4 2024 compared to 2.74% in Q3 2024.

What was SFNC's total loan balance at the end of Q4 2024?

SFNC's total loans were $17.0 billion at the end of Q4 2024, down from $17.3 billion at the end of Q3 2024.

How did SFNC's asset quality metrics perform in Q4 2024?

SFNC's nonperforming loans increased to $110.7 million, with a net charge-off ratio of 0.27% and an allowance for credit losses ratio of 1.38% in Q4 2024.