• Simmons First National Corporation Reports 2020 Earnings

    Source: Nasdaq GlobeNewswire / 26 Jan 2021 07:30:02   America/Chicago

    PINE BLUFF, Ark., Jan. 26, 2021 (GLOBE NEWSWIRE) -- Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or “Simmons”), parent company of Simmons Bank, today announced net income of $254.9 million for the year ended December 31, 2020, compared to $237.8 million for 2019, an increase of $17.0 million, or 7.2%. Diluted earnings per share were $2.31 for 2020, a decrease of $0.10 or 4.2%, compared to the prior year. Included in the 2020 results were $9.4 million in net after-tax merger-related, early retirement program and net branch right-sizing costs and the gains on the sales of branches in Texas and Colorado. Excluding the impact of these items, core earnings were $264.3 million for the year ended December 31, 2020, compared to $269.6 million for 2019, a decrease of $5.3 million, or 2.0%. Core diluted earnings per share were $2.40, a decrease of $0.33 or 12.1%, from 2019.

    Fourth quarter 2020 net income was $53.0 million compared to $52.7 million for the same period in 2019. Diluted earnings per share were $0.49 for the fourth quarters of both 2020 and 2019. Excluding $9.0 million in net after-tax merger-related, early retirement program and net branch right-sizing costs, fourth quarter 2020 core earnings were $62.0 million, a decrease of $9.1 million, or 12.8%, compared to the fourth quarter of 2019. Core diluted earnings per share were $0.57, a decrease of $0.09, or 13.6%, from the same period in 2019.

    “As we look back on a very challenging year, we are very proud of the teamwork and results we achieved,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “We mobilized over 1,500 associates to work from home at times during the year while maintaining our ability to serve our customers. We provided over 8,000 PPP loans totaling almost $1 billion to businesses that faced extraordinary uncertainty and helped support over 100,000 jobs. We integrated Landmark Bank into Simmons Bank, not without some obstacles due to COVID-19 restrictions, but our associates persevered to get the job done. We contributed $3 million to the Simmons First Foundation to support conservation projects throughout our service area. We enhanced our digital banking offerings, and our customers have benefitted from their ability to conduct their business when they want, where they want. We worked diligently to position ourselves with less risk and with the capacity to help the economy recover from the economic crisis caused by COVID-19. We increased our dividend to our shareholders, and our profitability was excellent, especially under the circumstances. Also during 2020, we successfully completed our regulatory exam cycle, including our first CFPB exam. I, personally, could not be prouder of our team.”

    Selected Highlights:FY 2020 FY 2019 4th Qtr 2020 4th Qtr 2019
    Net income$254.9 million $237.8 million $53.0 million $52.7 million
    Diluted earnings per share$2.31 $2.41 $0.49 $0.49
    Return on avg assets1.18% 1.33% 0.96% 1.04%
    Return on avg common equity8.72% 9.93% 7.13% 8.01%
    Return on tangible common equity (1)15.25% 17.99% 12.48% 14.62%
            
    Core earnings (2)264.3 million $269.6 million $62.0 million $71.1 million
    Core diluted earnings per share (2)$2.40 $2.73 $0.57 $0.66
    Core return on avg assets (2)1.22% 1.51% 1.13% 1.41%
    Core return on avg common equity (2)9.05% 11.25% 8.34% 10.80%
    Core return on tangible common equity (1)(2)15.79% 20.31% 14.51% 19.49%
    Efficiency ratio (3)54.66% 50.33% 55.27% 52.63%
    Adjusted pre-tax, pre-provision earnings (2)$352.7 million $375.0 million $83.1 million $95.1 million


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

    Loans

    ($ in billions)4th Qtr 20203rd Qtr 20204th Qtr 2019
    Total loans$12.90$14.02$14.43

    Total loans were $12.9 billion at December 31, 2020, a decrease of $1.5 billion, or 10.6%, compared to December 31, 2019. On a linked-quarter basis (December 31, 2020 compared to September 30, 2020), total loans decreased $1.1 billion, or 8.0%. “The decline in the loan balance reflects the tepid loan demand during 2020. Approximately $375 million of the decrease was due to the sale of loans associated with branch sales in South Texas and Colorado during the year. Our total loan pipeline consisting of all loan opportunities, which was a robust $1.7 billion at December 31, 2019 fell to $374 million at September 30, 2020. The pipeline is starting to rebuild and ended 2020 at $674 million, including $177 million in loans approved and ready to close. On a positive note, our concentration levels in commercial real estate are now well below regulatory guidelines and we have substantial capacity to make additional loans, help borrowers in our markets and help the economy recover,” said Makris.

    Through December 31, 2020, the Company originated approximately 8,200 loans under the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, with an average balance of $119,000 per loan. Approximately 93% of the PPP loans had a balance less than $350,000 as of December 31, 2020.

    PPP Loans
    Balance as of December 31, 2020
    # of
    Loans
     Original
    Balance

    ($ in millions)
     Balance
    December 31, 2020
    ($ in millions)
     
    Less than $50,0005,22063%$94.510% $90.810%
    $50,000 to $350,0002,44530%$305.231% $285.231%
    More than $350,000 to less than $2 million4816%$357.937% $315.435%
    $2 million to $10 million621%$217.922% $213.324%
    Total8,208100%$975.6100% $904.7100%

    Deposits

    ($ in billions)4th Qtr 20203rd Qtr 20204th Qtr 2019
    Total deposits$17.0$16.2$16.1
    Non-interest bearing deposits$4.5$4.4$3.7
    Interest bearing deposits$9.7$9.0$9.1
    Time deposits$2.8$2.8$3.3

    Total deposits were $17.0 billion at December 31, 2020, an increase of $878.1 million, or 5.5%, since December 31, 2019. On a linked-quarter basis, total deposits increased $740.4 million, or 4.6%, primarily due to increases in interest bearing accounts. Both consumer and commercial deposit balances have grown since the economic stimulus legislation, including legislation that established the PPP program, was implemented in mid-2020. Trends affected by the increasing cash balances are paydowns on loans, reduced credit card balances and fewer overdraft activities.

    Net Interest Income

     4th Qtr
    2020
    3rd Qtr
    2020
    2nd Qtr
    2020
    1st Qtr
    2020
    4th Qtr
    2019
    Loan yield (1)4.74%4.54%4.84%5.19%5.43%
    Core loan yield (1) (2)4.47%4.29%4.52%4.86%5.00%
    Security yield (1)2.48%2.60%2.50%2.63%2.73%
    Cost of interest bearing deposits0.47%0.54%0.59%1.03%1.22%
    Cost of deposits (3)0.34%0.39%0.44%0.80%0.94%
    Cost of borrowed funds1.88%1.85%1.84%2.06%2.30%
    Net interest margin (1)3.22%3.21%3.42%3.68%3.78%
    Core net interest margin (1) (2)3.04%3.02%3.18%3.42%3.44%


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

    The Company’s net interest income for the fourth quarter of 2020 was $155.0 million, a decrease of $12.1 million, or 7.3%, from the same period in 2019. The decrease in net interest income was primarily due to the decline in the loan yield of 69 basis points and the lower average loan balance during the period. Included in interest income was the yield accretion recognized on loans acquired of $9.0 million and $15.1 million for the fourth quarters of 2020 and 2019, respectively.

    The loan yield was 4.74% for the quarter ended December 31, 2020, a 20 basis point increase from the third quarter of 2020. The core loan yield, which excludes the accretion, was 4.47% for the same period. The PPP loan yield was approximately 2.42% during the fourth quarter of 2020 (including accretion of net fees), which decreased the Company’s overall loan yield by approximately 13 basis points.

    Net interest margin (FTE) was 3.22% for the quarter ended December 31, 2020, while the core net interest margin, which excludes the accretion, was 3.04% for the same period. The net interest margin during the fourth quarter of 2020 was affected by additional liquidity and the lower yielding PPP loans originated during the second and third quarters of 2020, which decreased the net interest margin by approximately 38 basis points.

    Non-Interest Income

    Non-interest income for 2020 was $248.5 million, an increase of $43.5 million compared to the previous year. The increase was primarily due to a $19.5 million increase in mortgage lending income and a $41.5 million increase in gains on sale of securities recognized on the rebalancing of the investment portfolio during 2020. These increases were partially offset by the one-time gain on sale of the Visa Inc. class B common stock of $42.9 million that was completed during the third quarter of 2019.

    Non-interest income for the fourth quarter of 2020 was $44.1 million, a decrease of $1.6 million compared to the same period in the previous year.

    Selected Non-Interest Income Items
    ($ in millions)
    FY 2020FY 20194th Qtr 20204th Qtr 2019
    Service charges on deposit accounts$43.1$44.8$10.8$13.3
    Mortgage lending income$34.5$15.0$3.0$4.0
    SBA lending income$1.3$2.7$0.5$0.3
    Debit and credit card fees$33.5$29.3$8.7$8.9
    Gain on sale of securities$54.8$13.3-$0.4
    Other income$38.5$62.0$10.6$7.1
         
    Core other income (1)(2)$29.8$62.0$10.3$7.1


    (1) Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.
    (2) Core other income includes the gain on sale of Visa Inc. class B common stock in 2019.

    Non-Interest Expense

    Non-interest expense for 2020 was $493.5 million, an increase of $32.4 million compared to the previous year. Included in 2020 were $21.5 million of pre-tax non-core items, which mostly consisted of branch right sizing costs. Excluding these expenses, core non-interest expense for 2020 was $472.0 million, an increase of $53.8 million compared to 2019 core non-interest expense. The increase was primarily due to the incremental costs associated with the 2019 mergers and the Next Generation Banking (“NGB”) technology initiative. The Company recognized an additional $14.8 million in software and technology expense related to its NGB initiative in 2020.

    Non-interest expense for the fourth quarter of 2020 was $128.1 million, a decrease of $14.0 million compared to the fourth quarter of 2019. Included in this quarter were $12.5 million of pre-tax non-core items for merger-related, early retirement program and branch right-sizing costs. Excluding these expenses, core non-interest expense was $115.6 million for the fourth quarter of 2020, a decrease of $1.6 million compared to the same period in 2019.

    Also included during the fourth quarter of 2020 was a $3 million contribution to the Simmons First Foundation for grants to support conservation projects throughout the Simmons Bank footprint.

    The efficiency ratio for 2020 was 54.66% while the efficiency ratio for the fourth quarter of 2020 was 55.27%.

    Selected Non-Interest Expense Items
    ($ in millions)


    FY 2020


    FY 2019


    4th Qtr 2020


    4th Qtr 2019
    Salaries and employee benefits$242.5$227.8$55.8$63.2
    Merger related costs$4.5$36.4$0.7$24.8
    Other operating expenses$174.0$138.9$54.3$38.0
         
    Core salaries and employee benefits (1)$239.4$224.3$55.6$63.2
    Core merger related costs (1)----
    Core other operating expenses (1)$161.8$135.9$44.1$38.0


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

    Early in 2020, the Company offered qualifying associates an early retirement option resulting in $2.9 million of non-core expense during 2020. The Company expects ongoing net annualized savings of approximately $2.9 million.

    Management continuously evaluates the Company’s branch network as part of its analysis of the profitability of the Company’s operations and the efficiency with which it delivers banking services to its markets. As a result of this ongoing evaluation, the Company closed 11 branch locations during the second quarter of 2020, with estimated net annual cost savings of approximately $2.4 million related to these locations. The Company closed 23 branch locations on October 9, 2020, with an expected net annual cost savings of approximately $6.7 million. Also during 2020, nine branches were sold in South Texas and Colorado.

    Asset Quality

     4th Qtr
    2020
    3rd Qtr
    2020
    2nd Qtr
    2020
    1st Qtr
    2020
    4th Qtr
    2019
    Allowance for credit losses on loans to total loans1.85%1.77%1.59%1.69%0.47%
    Allowance for credit losses on loans to non-performing loans193%147%175%154%74%
    Non-performing loans to total loans0.96%1.20%0.91%1.10%0.64%
    Net charge-off ratio (annualized)0.52%0.16%1.04%0.07%0.09%
    Net charge-off ratio YTD (annualized)0.45%0.43%0.56%0.07%0.24%

    At December 31, 2020, the allowance for credit losses on loans was $238.1 million. Included in total loans was $904.7 million of government guaranteed PPP loans. Non-performing loans decreased $45.2 million during the fourth quarter of 2020, which contributed to the decrease in provision for credit losses for the quarter when compared to the third quarter of 2020.

    Provision for credit losses for 2020 was $75.0 million, an increase of $31.7 million from 2019. Provision for credit losses for the fourth quarter of 2020 was $6.9 million, an increase of $2.0 million when compared to the same period of 2019. Makris stated, “Due to the uncertainty in the economy during 2020, we were quick to offer loan modifications to our customers to help them through the uncertain times. The majority of modified loans are projected to return to regular payments prior to the end of the third quarter of 2021. We feel we have made adequate provision for potential risk in our credit portfolio and have reviewed and adjusted the risk rating of all modified loans.” Makris continued, “The hospitality industry, particularly hotels, continues to struggle with a return to normal.”

    Foreclosed Assets and Other Real Estate Owned

    At December 31, 2020, foreclosed assets and other real estate owned were $18.4 million, a decrease of $728,000, or 3.8%, compared to the same period in 2019. The composition of these assets is divided into three types:        



    ($ in millions)
    4th Qtr
    2020
    3rd Qtr
    2020
    2nd Qtr
    2020
    1st Qtr
    2020
    4th Qtr
    2019
    Closed bank branches and branch sites$0.6$0.6$2.7$8.8$5.7
    Foreclosed assets – acquired$15.3$9.3$9.2$9.2$10.3
    Foreclosed assets – legacy$2.5$2.7$2.2$2.8$3.1

    Capital

     4th Qtr
    2020
    3rd Qtr
    2020
    2nd Qtr
    2020
    1st Qtr
    2020
    4th Qtr
    2019
    Stockholders’ equity to total assets13.3%13.7%13.3%13.7%14.1%
    Tangible common equity to tangible assets (1)8.5%8.7%8.3%8.4%9.0%
    Regulatory common equity tier 1 ratio13.4%12.6%11.9%11.1%10.9%
    Regulatory tier 1 leverage ratio9.1%9.1%8.8%9.0%9.6%
    Regulatory tier 1 risk-based capital ratio13.4%12.6%11.9%11.1%10.9%
    Regulatory total risk-based capital ratio16.8%15.8%14.9%14.1%13.7%


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

    At December 31, 2020, common stockholders' equity was $3.0 billion. Book value per share was $27.53 and tangible book value per share was $16.56 at December 31, 2020. The ratio of stockholders’ equity to total assets was 13.3% at December 31, 2020, while the ratio of tangible common equity to tangible assets was 8.5%. As of December 31, 2020, PPP loans totaled $904.7 million, which are 100% federally guaranteed and have a zero percent risk-weight for regulatory capital ratios. Excluding PPP loans from total assets, equity to total assets was 13.9%, tangible common equity to tangible assets was 8.8% and the regulatory tier 1 leverage ratio was 9.5%.

    Simmons First National Corporation

    Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $22.4 billion as of December 31, 2020. The Company, through its subsidiaries, conducts financial operations in Arkansas, Illinois, Kansas, Missouri, Oklahoma, Tennessee and Texas and offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock is listed on the NASDAQ Global Select Market under the symbol “SFNC.”

    Conference Call

    Management will conduct a live conference call to review this information beginning at 9:00 a.m. CST today, Tuesday, January 26, 2021. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 3994603. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com for at least 60 days.

    Non-GAAP Financial Measures

    This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders, non-interest income, and non-interest expense certain income and expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches, early retirement program expenses and net branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity, tangible assets and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of the impact of PPP loans. The Company’s management believes that these non-GAAP financial measures are useful to investors because they, among other things, present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalize for tax effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

    Forward-Looking Statements

    Some of the statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Makris’s quotes, may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, NGB and other digital banking initiatives, the Company’s ability to recruit and retain key employees, the benefits associated with the Company’s early retirement program, branch closures and branch sales, the adequacy of the allowance for credit losses, the ability of the Company to manage the impact of the COVID-19 pandemic, expectations and projections regarding the Company’s COVID-19 loan modification program, 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 COVID-19; the severity and duration of the pandemic, including the effectiveness of vaccination efforts; the pace of recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; unemployment; claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the PPP loan program authorized by the CARES Act); changes in accounting principles relating to loan loss recognition (current expected credit losses, or CECL); the Company’s ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; government legislation; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in the Company’s Form 10-K for the year ended December 31, 2019, and its Form 10-Q for the quarter ended June 30, 2020, which have been filed with, and are available from, the U.S. Securities and Exchange Commission.

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

        
    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) 2020  2020  2020  2020  2019 
    ($ in thousands)               
    ASSETS               
    Cash and non-interest bearing balances due from banks$217,499 $382,691 $234,998 $244,123 $277,208 
    Interest bearing balances due from banks and federal funds sold 3,254,653  2,139,440  2,310,162  1,493,076  719,415 
        Cash and cash equivalents 3,472,152  2,522,131  2,545,160  1,737,199  996,623 
    Interest bearing balances due from banks - time 1,579  4,061  4,561  4,309  4,554 
    Investment securities - held-to-maturity 333,031  47,102  51,720  53,968  40,927 
    Investment securities - available-for-sale 3,473,598  2,607,288  2,496,896  2,466,640  3,288,343 
    Mortgage loans held for sale 137,378  192,729  120,034  49,984  58,102 
    Other assets held for sale 100  389  399  115,315  260,332 
    Loans:               
    Loans 12,900,897  14,017,442  14,606,900  14,374,277  14,425,704 
    Allowance for credit losses on loans (238,050) (248,251) (231,643) (243,195) (68,244)
    Net loans 12,662,847  13,769,191  14,375,257  14,131,082  14,357,460 
    Premises and equipment 441,692  470,491  478,896  484,990  492,384 
    Premises held for sale 15,008  4,486  4,576  -  - 
    Foreclosed assets and other real estate owned 18,393  12,590  14,111  20,805  19,121 
    Interest receivable 72,597  77,352  79,772  57,039  62,707 
    Bank owned life insurance 255,630  257,718  256,643  255,197  254,152 
    Goodwill 1,075,305  1,075,305  1,064,765  1,064,978  1,055,520 
    Other intangible assets 111,110  114,460  117,823  121,673  127,340 
    Other assets 289,332  282,102  293,071  278,173  241,578 
    Total assets$22,359,752 $21,437,395 $21,903,684 $20,841,352 $21,259,143 
                    
    LIABILITIES AND STOCKHOLDERS' EQUITY               
    Deposits:               
    Non-interest bearing transaction accounts$4,482,091 $4,451,385 $4,608,098 $3,572,244 $3,741,093 
    Interest bearing transaction accounts and savings deposits 9,672,608  8,993,255  8,978,045  8,840,678  9,090,878 
    Time deposits 2,832,327  2,802,007  3,029,975  3,146,811  3,276,969 
            Total deposits 16,987,026  16,246,647  16,616,118  15,559,733  16,108,940 
    Federal funds purchased and securities sold               
    under agreements to repurchase 299,111  313,694  387,025  377,859  150,145 
    Other borrowings 1,342,067  1,342,769  1,393,689  1,396,829  1,297,599 
    Subordinated notes and debentures 382,874  382,739  382,604  388,396  388,260 
    Other liabilities held for sale 154,620  -  -  58,405  159,853 
    Accrued interest and other liabilities 217,398  209,305  219,545  214,730  165,422 
    Total liabilities 19,383,096  18,495,154  18,998,981  17,995,952  18,270,219 
                    
    Stockholders' equity:               
    Preferred stock 767  767  767  767  767 
    Common stock 1,081  1,090  1,090  1,090  1,136 
    Surplus 2,014,076  2,032,372  2,029,383  2,026,420  2,117,282 
    Undivided profits 901,006  866,503  819,153  778,893  848,848 
    Accumulated other comprehensive income (loss):               
    Unrealized accretion (depreciation) on AFS securities 59,726  41,509  54,310  38,230  20,891 
    Total stockholders' equity 2,976,656  2,942,241  2,904,703  2,845,400  2,988,924 
    Total liabilities and stockholders' equity$22,359,752 $21,437,395 $21,903,684 $20,841,352 $21,259,143 
                    


    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) 2020  2020  2020  2020  2019 
    ($ in thousands, except per share data)               
    INTEREST INCOME               
       Loans$160,115 $163,180 $176,910 $187,566 $193,402 
       Interest bearing balances due from banks and federal funds sold 716  623  603  2,441  2,625 
       Investment securities 17,207  14,910  13,473  18,943  16,962 
       Mortgage loans held for sale 1,070  1,012  668  281  402 
               TOTAL INTEREST INCOME 179,108  179,725  191,654  209,231  213,391 
    INTEREST EXPENSE               
       Time deposits 7,835  9,437  10,803  13,323  16,198 
       Other deposits 6,536  6,769  7,203  17,954  20,331 
       Federal funds purchased and securities               
         sold under agreements to repurchase 284  335  337  759  368 
       Other borrowings 4,869  4,943  4,963  4,877  4,615 
       Subordinated notes and debentures 4,624  4,631  4,667  4,835  4,813 
               TOTAL INTEREST EXPENSE 24,148  26,115  27,973  41,748  46,325 
    NET INTEREST INCOME 154,960  153,610  163,681  167,483  167,066 
       Provision for credit losses 6,943  22,981  21,915  23,134  4,903 
    NET INTEREST INCOME AFTER PROVISION               
       FOR CREDIT LOSSES 148,017  130,629  141,766  144,349  162,163 
    NON-INTEREST INCOME               
       Trust income 6,557  6,744  7,253  7,151  7,430 
       Service charges on deposit accounts 10,799  10,385  8,570  13,328  13,332 
       Other service charges and fees 1,783  1,764  1,489  1,588  1,915 
       Mortgage lending income 2,993  13,971  12,459  5,046  4,029 
       SBA lending income 484  304  245  296  321 
       Investment banking income 676  557  571  877  822 
       Debit and credit card fees 8,710  8,850  7,996  7,914  8,920 
       Bank owned life insurance income 1,481  1,591  1,445  1,298  1,411 
       Gain on sale of securities, net 16  22,305  390  32,095  377 
       Other income 10,557  5,380  9,809  12,801  7,073 
               TOTAL NON-INTEREST INCOME 44,056  71,851  50,227  82,394  45,630 
    NON-INTEREST EXPENSE               
       Salaries and employee benefits 55,762  61,144  57,644  67,924  63,235 
       Occupancy expense, net 9,182  9,647  9,217  9,510  9,272 
       Furniture and equipment expense 5,940  6,231  6,144  5,723  5,758 
       Other real estate and foreclosure expense 551  602  274  325  1,089 
       Deposit insurance 1,627  2,244  2,838  2,475  (134)
       Merger-related costs 731  902  1,830  1,068  24,831 
       Other operating expenses 54,342  38,179  39,651  41,788  38,044 
               TOTAL NON-INTEREST EXPENSE 128,135  118,949  117,598  128,813  142,095 
    NET INCOME BEFORE INCOME TAXES 63,938  83,531  74,395  97,930  65,698 
       Provision for income taxes 10,970  17,633  15,593  20,694  12,976 
    NET INCOME 52,968  65,898  58,802  77,236  52,722 
       Preferred stock dividends 13  13  13  13  13 
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS$52,955 $65,885 $58,789 $77,223 $52,709 
    BASIC EARNINGS PER SHARE$0.49 $0.60 $0.54 $0.68 $0.49 
    DILUTED EARNINGS PER SHARE$0.49 $0.60 $0.54 $0.68 $0.49 
                    


    Simmons First National Corporation   SFNC
    Consolidated Risk-Based Capital           
    For the Quarters Ended Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
    (Unaudited) 2020  2020  2020  2020  2019 
    ($ in thousands)               
    Tier 1 capital               
       Stockholders' equity$2,976,656 $2,942,241 $2,904,703 $2,845,400 $2,988,924 
       CECL transition provision (1) 131,430  134,798  130,480  134,558  - 
       Disallowed intangible assets, net of deferred tax (1,163,797) (1,167,357) (1,160,385) (1,164,038) (1,160,079)
       Unrealized (gain) loss on AFS securities (59,726) (41,509) (54,310) (38,230) (20,891)
          Total Tier 1 capital 1,884,563  1,868,173  1,820,488  1,777,690  1,807,954 
                    
    Tier 2 capital               
       Trust preferred securities and subordinated debt 382,874  382,739  382,604  388,396  388,260 
       Qualifying allowance for loan losses and               
          reserve for unfunded commitments 89,546  96,734  83,780  96,015  76,644 
          Total Tier 2 capital 472,420  479,473  466,384  484,411  464,904 
          Total risk-based capital$2,356,983 $2,347,646 $2,286,872 $2,262,101 $2,272,858 
                    
    Risk weighted assets$14,034,563 $14,878,932 $15,362,175 $16,012,233 $16,554,081 
                    
    Adjusted average assets for leverage ratio$20,765,127 $20,652,454 $20,742,824 $19,832,219 $18,852,798 
                    
    Ratios at end of quarter               
       Equity to assets 13.31% 13.72% 13.26% 13.65% 14.06%
       Tangible common equity to tangible assets (2) 8.45% 8.65% 8.31% 8.44% 8.99%
       Common equity Tier 1 ratio (CET1) 13.42% 12.55% 11.85% 11.10% 10.92%
       Tier 1 leverage ratio 9.08% 9.05% 8.78% 8.96% 9.59%
       Tier 1 risk-based capital ratio 13.43% 12.56% 11.85% 11.10% 10.92%
       Total risk-based capital ratio 16.79% 15.78% 14.89% 14.13% 13.73%
                    
    (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) 2020  2020  2020  2020  2019
    ($ in thousands)              
    Investment Securities - End of Period              
    Held-to-Maturity              
       Mortgage-backed securities$22,354 $24,297 $25,980 $27,121 $10,796
       State and political subdivisions 310,109  21,930  24,777  25,985  27,082
       Other securities 568  875  963  862  3,049
          Total held-to-maturity (net of credit losses) 333,031  47,102  51,720  53,968  40,927
    Available-for-Sale              
       U.S. Treasury$- $- $- $424,989 $449,729
       U.S. Government agencies 477,237  471,973  210,921  161,289  194,249
       Mortgage-backed securities 1,394,936  903,687  1,154,086  1,179,837  1,742,945
       State and political subdivisions 1,470,723  1,133,006  1,054,068  678,243  880,524
       Other securities 130,702  98,622  77,821  22,282  20,896
          Total available-for-sale (net of credit losses) 3,473,598  2,607,288  2,496,896  2,466,640  3,288,343
          Total investment securities (net of credit losses)$3,806,629 $2,654,390 $2,548,616 $2,520,608 $3,329,270
          Fair value - HTM investment securities$341,925 $49,064 $53,751 $55,714 $41,855
                   
    Investment Securities - QTD Average              
    Taxable securities$1,757,234 $1,534,742 $1,642,083 $2,324,188 $1,940,755
    Tax exempt securities 1,528,127  1,155,099  866,944  900,223  825,000
       Total investment securities - QTD average$3,285,361 $2,689,841 $2,509,027 $3,224,411 $2,765,755
                   


    Simmons First National Corporation   SFNC
    Consolidated Loans              
    For the Quarters Ended Dec 31  Sep 30  Jun 30  Mar 31  Dec 31
    (Unaudited) 2020  2020  2020  2020  2019
    ($ in thousands)              
    Loan Portfolio - End of Period              
    Consumer              
       Credit cards$180,354 $172,880 $184,348 $188,596 $204,802
       Other consumer 210,870  190,736  214,024  267,870  249,694
    Total consumer 391,224  363,616  398,372  456,466  454,496
    Real Estate              
       Construction 1,596,255  1,853,360  2,010,256  2,024,118  2,236,861
       Single-family residential 1,880,673  1,997,070  2,207,087  2,343,543  2,442,064
       Other commercial real estate 5,746,863  6,132,823  6,316,444  6,466,104  6,205,599
    Total real estate 9,223,791  9,983,253  10,533,787  10,833,765  10,884,524
    Commercial              
       Commercial 2,574,386  2,907,798  3,038,216  2,314,472  2,495,516
       Agricultural 175,905  241,687  217,715  191,535  315,454
    Total commercial 2,750,291  3,149,485  3,255,931  2,506,007  2,810,970
    Other 535,591  521,088  418,810  578,039  275,714
          Total Loans$12,900,897 $14,017,442 $14,606,900 $14,374,277 $14,425,704
                   



    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) 2020  2020  2020  2020  2019 
    ($ in thousands)               
    Allowance for Credit Losses on Loans               
    Beginning balance, prior to adoption of ASC 326         $68,244 $66,590 
    Impact of adopting ASC 326 (1)         $151,377    
    Beginning balance, after adoption of ASC 326$248,251 $231,641 $243,195 $219,621    
                    
    Loans charged off               
       Credit cards 787  832  1,053  1,441  1,287 
       Other consumer 960  1,091  592  1,379  1,425 
       Real estate 10,415  1,153  1,824  396  892 
       Commercial 8,199  4,327  35,687  523  459 
          Total loans charged off 20,361  7,403  39,156  3,739  4,063 
                    
    Recoveries of loans previously charged off               
       Credit cards 241  276  272  225  287 
       Other consumer 355  366  301  443  304 
       Real estate 431  120  253  101  146 
       Commercial 1,835  936  98  347  77 
          Total recoveries 2,862  1,698  924  1,116  814 
       Net loans charged off 17,499  5,705  38,232  2,623  3,249 
    Provision for credit losses on loans 7,298  22,315  26,678  26,197  4,903 
    Balance, end of quarter$238,050 $248,251 $231,641 $243,195 $68,244 
                    
    Non-performing assets               
    Non-performing loans               
       Nonaccrual loans$122,968 $168,349 $131,888 $156,746 $91,723 
       Loans past due 90 days or more 322  156  537  1,305  855 
          Total non-performing loans 123,290  168,505  132,425  158,051  92,578 
    Other non-performing assets               
       Foreclosed assets and other real estate owned 18,393  12,590  14,111  20,805  19,121 
       Other non-performing assets 2,016  1,983  2,008  2,169  1,964 
          Total other non-performing assets 20,409  14,573  16,119  22,974  21,085 
             Total non-performing assets$143,699 $183,078 $148,544 $181,025 $113,663 
    Performing TDRs (troubled debt restructurings)$3,138 $3,379 $3,960 $4,110 $4,411 
                    
    Ratios               
    Allowance for credit losses on loans to total loans 1.85% 1.77% 1.59% 1.69% 0.47%
    Allowance for credit losses to non-performing loans 193% 147% 175% 154% 74%
    Non-performing loans to total loans 0.96% 1.20% 0.91% 1.10% 0.64%
    Non-performing assets (including performing TDRs)               
      to total assets 0.66% 0.86% 0.70% 0.89% 0.56%
    Non-performing assets to total assets 0.64% 0.85% 0.68% 0.87% 0.53%
    Annualized net charge offs to total loans 0.52% 0.16% 1.04% 0.07% 0.09%
    Annualized net credit card charge offs to               
      total credit card loans 1.20% 1.26% 1.67% 2.29% 1.99%
                    
    (1) The Company adopted ASC 326.effective January 1, 2020.               
          



    Simmons First National Corporation         SFNC
    Consolidated - Average Balance Sheet and Net Interest Income Analysis      
    For the Quarters Ended           
    (Unaudited)           
     Three Months Ended
    Dec 2020
     Three Months Ended
    Sep 2020
     Three Months Ended
    Dec 2019
    ($ 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$2,651,938 $716 0.11% $2,265,233 $623 0.11% $789,035 $2,625 1.32%
       Investment securities - taxable 1,757,234  7,720 1.75%  1,534,742  7,193 1.86%  1,940,755  11,080 2.27%
       Investment securities - non-taxable (FTE) 1,528,127  12,778 3.33%  1,155,099  10,382 3.58%  825,000  7,945 3.82%
       Mortgage loans held for sale 179,275  1,070 2.37%  145,226  1,012 2.77%  53,511  402 2.98%
       Loans (FTE) 13,457,077  160,306 4.74%  14,315,014  163,379 4.54%  14,144,703  193,511 5.43%
          Total interest earning assets (FTE) 19,573,651  182,590 3.71%  19,415,314  182,589 3.74%  17,753,004  215,563 4.82%
       Non-earning assets 2,278,443       2,350,007       2,288,886     
         Total assets$21,852,094      $21,765,321      $20,041,890     
                            
    LIABILITIES AND STOCKHOLDERS' EQUITY          
    Interest bearing liabilities:           
       Interest bearing transaction and           
         savings accounts$9,389,570 $6,536 0.28% $8,977,886 $6,769 0.30% $8,440,090 $20,331 0.96%
       Time deposits 2,823,166  7,835 1.10%  2,998,091  9,437 1.25%  3,393,089  16,198 1.89%
          Total interest bearing deposits 12,212,736  14,371 0.47%  11,975,977  16,206 0.54%  11,833,179  36,529 1.22%
       Federal funds purchased and securities                       
         sold under agreement to repurchase 340,333  284 0.33%  386,631  335 0.34%  147,395  368 0.99%
       Other borrowings 1,342,403  4,869 1.44%  1,357,278  4,943 1.45%  1,168,897  4,615 1.57%
       Subordinated notes and debentures 382,808  4,624 4.81%  382,672  4,631 4.81%  376,766  4,813 5.07%
          Total interest bearing liabilities 14,278,280  24,148 0.67%  14,102,558  26,115 0.74%  13,526,237  46,325 1.36%
    Non-interest bearing liabilities:                       
       Non-interest bearing deposits 4,413,168       4,529,782       3,524,092     
       Other liabilities 204,014       190,169       379,909     
          Total liabilities 18,895,462       18,822,509       17,430,238     
    Stockholders' equity 2,956,632       2,942,812       2,611,652     
          Total liabilities and stockholders' equity$21,852,094      $21,765,321      $20,041,890     
    Net interest income (FTE)   $158,442      $156,474      $169,238  
    Net interest spread (FTE)      3.04%       3.00%       3.46%
    Net interest margin (FTE) - quarter-to-date      3.22%       3.21%       3.78%
                            
    Net interest margin (FTE) - year-to-date      3.38%       3.43%       3.85%
                            
    Core net interest margin (FTE) - quarter-to-date (1)      3.04%       3.02%       3.44%
    Core loan yield (FTE) - quarter-to-date (1)      4.47%       4.29%       5.00%
                            
    Core net interest margin (FTE) - year-to-date (1)      3.16%       3.20%       3.59%
    Core loan yield (FTE) - year-to-date (1)      4.54%       4.56%       5.18%
                            
    (1) Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.
                


    Simmons First National Corporation   SFNC
    Consolidated - Selected Financial Data     
    For the Quarters EndedDec 31
     Sep 30
     Jun 30
     Mar 31
     Dec 31
     
    (Unaudited) 2020 2020 2020 2020 2019 
    ($ in thousands, except share data)               
    QUARTER-TO-DATE               
    Financial Highlights - GAAP               
    Net Income$52,955 $65,885 $58,789 $77,223 $52,709 
    Diluted earnings per share 0.49  0.60  0.54  0.68  0.49 
    Return on average assets 0.96% 1.20% 1.08% 1.48% 1.04%
    Return on average common equity 7.13% 8.91% 8.21% 10.83% 8.01%
    Return on tangible common equity 12.48% 15.45% 14.55% 19.00% 14.62%
    Net interest margin (FTE) 3.22% 3.21% 3.42% 3.68% 3.78%
    FTE adjustment 3,482  2,864  2,350  2,305  2,172 
    Amortization of intangibles 3,351  3,362  3,369  3,413  3,270 
    Amortization of intangibles, net of taxes 2,475  2,483  2,489  2,521  2,416 
    Average diluted shares outstanding 108,888,264  109,207,294  109,130,866  113,137,223  108,472,559 
    Shares repurchased under plan 1,034,364  -  -  4,922,336  390,000 
    Average price of shares repurchased 19.36  -  -  18.96  25.95 
    Cash dividends declared per common share 0.17  0.17  0.17  0.17  0.16 
    Financial Highlights - Core (non-GAAP)               
    Core earnings (excludes non-core items) (1)$61,977 $68,338 $60,147 $73,838 $71,074 
    Core diluted earnings per share (1) 0.57  0.63  0.55  0.65  0.66 
    Core net interest margin (FTE) (2) 3.04% 3.02% 3.18% 3.42% 3.44%
    Accretable yield on acquired loans 8,999  8,948  11,723  11,837  15,100 
    Efficiency ratio (1) 55.27% 54.12% 51.46% 57.79% 52.63%
    Core return on average assets (1) 1.13% 1.25% 1.11% 1.42% 1.41%
    Core return on average common equity (1) 8.34% 9.24% 8.40% 10.35% 10.80%
    Core return on tangible common equity (1) 14.51% 16.00% 14.87% 18.19% 19.49%
    YEAR-TO-DATE               
    Financial Highlights - GAAP               
    Net Income$254,852 $201,897 $136,012 $77,223 $237,828 
    Diluted earnings per share 2.31  1.83  1.22  0.68  2.41 
    Return on average assets 1.18% 1.25% 1.28% 1.48% 1.33%
    Return on average common equity 8.72% 9.27% 9.45% 10.83% 9.93%
    Return on tangible common equity 15.25% 16.19% 16.57% 19.00% 17.99%
    Net interest margin (FTE) 3.38% 3.43% 3.55% 3.68% 3.85%
    FTE adjustment 11,001  7,519  4,655  2,305  7,322 
    Amortization of intangibles 13,495  10,144  6,782  3,413  11,805 
    Amortization of intangibles, net of taxes 9,968  7,493  5,010  2,521  8,720 
    Average diluted shares outstanding 110,173,661  110,480,508  111,083,999  113,137,223  98,796,628 
    Cash dividends declared per common share 0.68  0.51  0.34  0.17  0.64 
    Financial Highlights - Core (non-GAAP)               
    Core earnings (excludes non-core items) (1)$264,300 $202,323 $133,985 $73,838 $269,566 
    Core diluted earnings per share (1) 2.40  1.83  1.21  0.65  2.73 
    Core net interest margin (FTE) (2) 3.16% 3.20% 3.30% 3.42% 3.59%
    Accretable yield on acquired loans 41,507  32,508  23,560  11,837  41,244 
    Efficiency ratio (1) 54.66% 54.46% 54.62% 57.79% 50.33%
    Core return on average assets (1) 1.22% 1.26% 1.26% 1.42% 1.51%
    Core return on average common equity (1) 9.05% 9.29% 9.31% 10.35% 11.25%
    Core return on tangible common equity (1) 15.79% 16.22% 16.33% 18.19% 20.31%
    END OF PERIOD               
    Book value per share$27.53 $26.98 $26.64 $26.11 $26.30 
    Tangible book value per share 16.56  16.07  15.79  15.22  15.89 
    Shares outstanding 108,077,662  109,023,781  108,994,389  108,966,331  113,628,601 
    Full-time equivalent employees 2,923  2,904  2,939  3,079  3,270 
    Total number of financial centers 204  226  226  240  251 
                    
    (1) Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.
    (2) Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.
          



    Simmons First National Corporation   SFNC
    Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Quarter-to-Date 
    For the Quarters Ended Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
    (Unaudited) 2020  2020  2020  2020  2019 
    ($ in thousands, except per share data)               
    QUARTER-TO-DATE               
    Net Income$52,955 $65,885 $58,789 $77,223 $52,709 
    Non-core items               
    Gain on sale of branches (275) -  (2,204) (5,889) - 
    Merger-related costs 731  902  1,830  1,068  24,831 
    Early retirement program 62  2,346  493  -  - 
    Branch right-sizing (net) 11,696  72  1,721  238  37 
    Tax effect (1) (3,192) (867) (482) 1,198  (6,503)
    Net non-core items 9,022  2,453  1,358  (3,385) 18,365 
    Core earnings (non-GAAP)$61,977 $68,338 $60,147 $73,838 $71,074 
                    
    Diluted earnings per share$0.49 $0.60 $0.54 $0.68 $0.49 
    Non-core items               
    Gain on sale of branches -  -  (0.02) (0.05) - 
    Merger-related costs -  0.01  0.02  0.01  0.23 
    Early retirement program -  0.02  -  -  - 
    Branch right-sizing (net) 0.11  -  0.02  -  - 
    Tax effect (1) (0.03) -  (0.01) 0.01  (0.06)
    Net non-core items 0.08  0.03  0.01  (0.03) 0.17 
    Core diluted earnings per share (non-GAAP)$0.57 $0.63 $0.55 $0.65 $0.66 
                    
    (1) Effective tax rate of 26.135%.               
                    
    Reconciliation of Selected Non-Core Non-Interest Income and Expense Items (non-GAAP) 
                    
    QUARTER-TO-DATE               
       Other income$10,557 $5,380 $9,809 $12,801 $7,073 
    Non-core items (1) (275) (370) (2,204) (5,889) - 
       Core other income (non-GAAP)$10,282 $5,010 $7,605 $6,912 $7,073 
                    
       Non-interest expense$128,135 $118,949 $117,598 $128,813 $142,095 
    Non-core items (1) (12,489) (3,690) (4,044) (1,306) (24,868)
       Core non-interest expense (non-GAAP)$115,646 $115,259 $113,554 $127,507 $117,227 
                    
       Salaries and employee benefits$55,762 $61,144 $57,644 $67,924 $63,235 
    Non-core items (1) (144) (2,448) (493) -  - 
       Core salaries and employee benefits (non-GAAP)$55,618 $58,696 $57,151 $67,924 $63,235 
                    
       Merger related costs$731 $902 $1,830 $1,068 $24,831 
    Non-core items (1) (731) (902) (1,830) (1,068) (24,831)
       Core merger related costs (non-GAAP)$- $- $- $- $- 
                    
       Other operating expenses$54,342 $38,179 $39,651 $41,788 $38,044 
    Non-core items (1) (10,270) (11) (1,662) (212) (4)
       Core other operating expenses (non-GAAP)$44,072 $38,168 $37,989 $41,576 $38,040 
                    
    (1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and branch right-sizing costs.
          



    Simmons First National Corporation   SFNC
    Reconciliation Of Non-GAAP Financial Measures - Core Earnings - Year-to-Date 
    For the Quarters Ended Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
    (Unaudited) 2020  2020  2020  2020  2019 
    ($ in thousands, except per share data)               
    YEAR-TO-DATE               
    Net Income$254,852 $201,897 $136,012 $77,223 $237,828 
    Non-core items               
    Gain on sale of branches (8,368) (8,093) (8,093) (5,889) - 
    Merger-related costs 4,531  3,800  2,898  1,068  36,379 
    Early retirement program 2,901  2,839  493  -  3,464 
    Branch right-sizing (net) 13,727  2,031  1,959  238  3,129 
    Tax effect (1) (3,343) (151) 716  1,198  (11,234)
    Net non-core items 9,448  426  (2,027) (3,385) 31,738 
    Core earnings (non-GAAP)$264,300 $202,323 $133,985 $73,838 $269,566 
                    
    Diluted earnings per share$2.31 $1.83 $1.22 $0.68 $2.41 
    Non-core items               
    Gain on sale of branches (0.07) (0.07) (0.07) (0.05) - 
    Merger-related costs 0.04  0.03  0.03  0.01  0.37 
    Early retirement program 0.03  0.02  -  -  0.03 
    Branch right-sizing (net) 0.12  0.02  0.02  -  0.03 
    Tax effect (1) (0.03) -  0.01  0.01  (0.11)
    Net non-core items 0.09  -  (0.01) (0.03) 0.32 
    Core diluted earnings per share (non-GAAP)$2.40 $1.83 $1.21 $0.65 $2.73 
                    
    (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$38,547 $27,990 $22,610 $12,801 $62,015 
    Non-core items (1) (8,738) (8,463) (8,093) (5,889) - 
       Core other income (non-GAAP)$29,809 $19,527 $14,517 $6,912 $62,015 
                    
       Non-interest expense$493,495 $365,360 $246,411 $128,813 $461,112 
    Non-core items (1) (21,529) (9,040) (5,350) (1,306) (42,972)
       Core non-interest expense (non-GAAP)$471,966 $356,320 $241,061 $127,507 $418,140 
                    
       Salaries and employee benefits$242,474 $186,712 $125,568 $67,924 $227,795 
    Non-core items (1) (3,085) (2,941) (493) -  (3,464)
       Core salaries and employee benefits (non-GAAP)$239,389 $183,771 $125,075 $67,924 $224,331 
                    
       Merger related costs$4,531 $3,800 $2,898 $1,068 $36,379 
    Non-core items (1) (4,531) (3,800) (2,898) (1,068) (36,379)
       Core merger related costs (non-GAAP)$- $- $- $- $- 
                    
       Other operating expenses$173,960 $119,618 $81,439 $41,788 $138,852 
    Non-core items (1) (12,155) (1,885) (1,874) (212) (2,938)
       Core other operating expenses (non-GAAP)$161,805 $117,733 $79,565 $41,576 $135,914 
                    
    (1) Non-core items include gain on sale of branches, merger related costs, early retirement program expenses and branch right-sizing costs.
          


    Simmons First National Corporation    SFNC
    Reconciliation Of Non-GAAP Financial Measures - End of Period   
    For the Quarters Ended Dec 31   Sep 30   Jun 30   Mar 31   Dec 31 
    (Unaudited) 2020   2020   2020   2020   2019 
    ($ 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$2,975,889  $2,941,474  $2,903,936  $2,844,633  $2,988,157 
    Intangible assets:                   
       Goodwill (1,075,305)  (1,075,305)  (1,064,765)  (1,064,978)  (1,055,520)
       Other intangible assets (111,110)  (114,460)  (117,823)  (121,673)  (127,340)
    Total intangibles (1,186,415)  (1,189,765)  (1,182,588)  (1,186,651)  (1,182,860)
    Tangible common stockholders' equity$1,789,474  $1,751,709  $1,721,348  $1,657,982  $1,805,297 
                        
    Total assets$22,359,752  $21,437,395  $21,903,684  $20,841,352  $21,259,143 
    Intangible assets:                   
       Goodwill (1,075,305)  (1,075,305)  (1,064,765)  (1,064,978)  (1,055,520)
       Other intangible assets (111,110)  (114,460)  (117,823)  (121,673)  (127,340)
    Total intangibles (1,186,415)  (1,189,765)  (1,182,588)  (1,186,651)  (1,182,860)
    Tangible assets$21,173,337  $20,247,630  $20,721,096  $19,654,701  $20,076,283 
                        
    Paycheck protection program ("PPP") loans (904,673)  (970,488)  (963,712)        
    Total assets excluding PPP loans$21,455,079  $20,466,907  $20,939,972         
    Tangible assets excluding PPP loans$20,268,664  $19,277,142  $19,757,384         
                        
    Ratio of equity to assets 13.31%  13.72%  13.26%  13.65%  14.06%
    Ratio of equity to assets excluding PPP loans 13.87%  14.38%  13.87%        
    Ratio of tangible common equity to tangible assets 8.45%  8.65%  8.31%  8.44%  8.99%
    Ratio of tangible common equity to tangible assets excluding PPP loans 8.83%  9.09%  8.71%        
                        
    Calculation of Tangible Book Value per Share                   
                        
    Total common stockholders' equity$2,975,889  $2,941,474  $2,903,936  $2,844,633  $2,988,157 
    Intangible assets:                   
       Goodwill (1,075,305)  (1,075,305)  (1,064,765)  (1,064,978)  (1,055,520)
       Other intangible assets (111,110)  (114,460)  (117,823)  (121,673)  (127,340)
    Total intangibles (1,186,415)  (1,189,765)  (1,182,588)  (1,186,651)  (1,182,860)
    Tangible common stockholders' equity$1,789,474  $1,751,709  $1,721,348  $1,657,982  $1,805,297 
    Shares of common stock outstanding 108,077,662   109,023,781   108,994,389   108,966,331   113,628,601 
    Book value per common share$27.53  $26.98  $26.64  $26.11  $26.30 
    Tangible book value per common share$16.56  $16.07  $15.79  $15.22  $15.89 
                        
    Calculation of Regulatory Tier 1 Leverage Ratio Excluding Average PPP Loans                   
                        
    Total Tier 1 capital$1,884,563  $1,868,173  $1,820,488         
                        
    Adjusted average assets for leverage ratio$20,765,127  $20,652,454  $20,742,824         
    Average PPP loans (937,544)  (967,152)  (645,172)        
    Adjusted average assets excluding average PPP loans$19,827,583  $19,685,302  $20,097,652         
                        
    Tier 1 leverage ratio 9.08%  9.05%  8.78%        
    Tier 1 leverage ratio excluding average PPP loans 9.50%  9.49%  9.06%        
                        



    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) 2020   2020   2020   2020   2019 
    ($ in thousands)                   
    Calculation of Core Return on Average Assets                   
                        
    Net income$52,955  $65,885  $58,789  $77,223  $52,709 
    Net non-core items, net of taxes, adjustment 9,022   2,453   1,358   (3,385)  18,365 
    Core earnings$61,977  $68,338  $60,147  $73,838  $71,074 
                        
    Average total assets$21,852,094  $21,765,321  $21,822,273  $20,920,223  $20,041,890 
                        
    Return on average assets 0.96%  1.20%  1.08%  1.48%  1.04%
    Core return on average assets 1.13%  1.25%  1.11%  1.42%  1.41%
                        
    Calculation of Return on Tangible Common Equity                   
                        
    Net income$52,955  $65,885  $58,789  $77,223  $52,709 
    Amortization of intangibles, net of taxes 2,475   2,483   2,489   2,521   2,416 
    Total income available to common stockholders$55,430  $68,368  $61,278  $79,744  $55,125 
                        
    Net non-core items, net of taxes 9,022   2,453   1,358   (3,385)  18,365 
    Core earnings 61,977   68,338   60,147   73,838   71,074 
    Amortization of intangibles, net of taxes 2,475   2,483   2,489   2,521   2,416 
    Total core income available to common stockholders$64,452  $70,821  $62,636  $76,359  $73,490 
                        
    Average common stockholders' equity$2,955,865  $2,942,045  $2,879,337  $2,869,177  $2,611,143 
    Average intangible assets:                   
       Goodwill (1,075,305)  (1,064,893)  (1,064,955)  (1,055,498)  (997,004)
       Other intangibles (113,098)  (116,385)  (120,111)  (125,746)  (118,311)
    Total average intangibles (1,188,403)  (1,181,278)  (1,185,066)  (1,181,244)  (1,115,315)
    Average tangible common stockholders' equity$1,767,462  $1,760,767  $1,694,271  $1,687,933  $1,495,828 
                        
    Return on average common equity 7.13%  8.91%  8.21%  10.83%  8.01%
    Return on tangible common equity 12.48%  15.45%  14.55%  19.00%  14.62%
    Core return on average common equity 8.34%  9.24%  8.40%  10.35%  10.80%
    Core return on tangible common equity 14.51%  16.00%  14.87%  18.19%  19.49%
                        
    Calculation of Efficiency Ratio (1)                   
                        
    Non-interest expense$128,135  $118,949  $117,598  $128,813  $142,095 
    Non-core non-interest expense adjustment (12,489)  (3,690)  (4,044)  (1,306)  (24,868)
    Other real estate and foreclosure expense adjustment (545)  (600)  (242)  (319)  (1,063)
    Amortization of intangibles adjustment (3,351)  (3,362)  (3,369)  (3,413)  (3,270)
    Efficiency ratio numerator$111,750  $111,297  $109,943  $123,775  $112,894 
                        
    Net-interest income$154,960  $153,610  $163,681  $167,483  $167,066 
    Non-interest income 44,056   71,851   50,227   82,394   45,630 
    Non-core non-interest income adjustment (275)  (370)  (2,204)  (5,889)  - 
    Fully tax-equivalent adjustment (effective tax rate of 26.135%) 3,482   2,864   2,350   2,305   2,172 
    Gain on sale of securities (16)  (22,305)  (390)  (32,095)  (377)
    Efficiency ratio denominator$202,207  $205,650  $213,664  $214,198  $214,491 
                        
    Efficiency ratio (1) 55.27%  54.12%  51.46%  57.79%  52.63%
                        
    (1) Efficiency ratio is core non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items.
      



    Simmons First National Corporation    SFNC
    Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued)  
    For the Quarters Ended Dec 31  Sep 30  Jun 30  Mar 31  Dec 31 
    (Unaudited) 2020  2020  2020  2020  2019 
    ($ in thousands)               
    Calculation of Core Net Interest Margin               
                    
    Net interest income$154,960 $153,610 $163,681 $167,483 $167,066 
    Fully tax-equivalent adjustment (effective tax rate of 26.135%) 3,482  2,864  2,350  2,305  2,172 
    Fully tax-equivalent net interest income 158,442  156,474  166,031  169,788  169,238 
                    
    Total accretable yield (8,999) (8,948) (11,723) (11,837) (15,100)
    Core net interest income$149,443 $147,526 $154,308 $157,951 $154,138 
                    
    PPP loan and excess liquidity interest income (6,983)$(6,131)$(5,623)      
    Net interest income adjusted for PPP loans and liquidity$151,459 $150,343 $160,408       
                    
    Average earning assets$19,573,651 $19,415,314 $19,517,475 $18,581,491 $17,753,004 
    Average PPP loan balance and excess liquidity (2,837,125) (2,359,928)$(2,071,411)      
    Average earning assets adjusted for PPL loans and liquidity$16,736,526 $17,055,386 $17,446,064       
                    
    Net interest margin 3.22% 3.21% 3.42% 3.68% 3.78%
    Core net interest margin 3.04% 3.02% 3.18% 3.42% 3.44%
    Net interest margin adjusted for PPP loans and liquidity 3.60% 3.51% 3.70%      
                    
    Calculation of Core Loan Yield               
                    
    Loan interest income (FTE)$160,306 $163,379 $177,168 $187,566 $193,402 
    Total accretable yield (8,999) (8,948) (11,723) (11,837) (15,100)
    Core loan interest income$151,307 $154,431 $165,445 $175,729 $178,302 
    PPP loan interest income (6,457) (5,782)$(3,733)      
    Core loan interest income without PPP loans$144,850 $148,649 $161,712       
                    
    Average loan balance$13,457,077 $14,315,014 $14,731,306 $14,548,853 $14,144,703 
    Average PPP loan balance (937,544)$(967,152)$(645,172)      
    Average loan balance without PPP loans$12,519,533 $13,347,862 $14,086,134       
                    
    Core loan yield 4.47% 4.29% 4.52% 4.86% 5.00%
    Core loan yield without PPP loans 4.60% 4.43% 4.62%      
                    
    Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings               
                    
    Net income available to common stockholders$52,955 $65,885 $58,789 $77,223 $52,709 
    Provision for income taxes 10,970  17,633  15,593  20,694  12,976 
    Provision for credit losses (including provision for unfunded commitments) 6,943  22,981  21,915  23,134  4,903 
    (Gain) loss on sale of securities (16) (22,305) (390) (32,095) (377)
    Net pre-tax non-core items 12,214  3,320  1,840  (4,583) 24,868 
    Adjusted Pre-tax, pre-provision (PTPP) earnings$83,066 $87,514 $97,747 $84,373 $95,079 
                    
                    


    Simmons First National Corporation    SFNC
    Reconciliation Of Non-GAAP Financial Measures - Year-to-Date   
    For the Quarters EndedDec 31Sep 30Jun 30Mar 31Dec 31
    (Unaudited) 2020   2020   2020   2020   2019 
    ($ in thousands)                   
    Calculation of Core Return on Average Assets     
          
    Net income$254,852  $201,897  $136,012  $77,223  $237,828 
    Net non-core items, net of taxes, adjustment 9,448   426   (2,027)  (3,385)  31,738 
    Core earnings$264,300  $202,323  $133,985  $73,838  $269,566 
                        
    Average total assets$21,590,745  $21,503,564  $21,371,248  $20,920,223  $17,871,748 
                        
    Return on average assets 1.18%  1.25%  1.28%  1.48%  1.33%
    Core return on average assets 1.22%  1.26%  1.26%  1.42%  1.51%
                        
    Calculation of Return on Tangible Common Equity                   
          
    Net income$254,852  $201,897  $136,012  $77,223  $237,828 
    Amortization of intangibles, net of taxes 9,968   7,493   5,010   2,521   8,720 
    Total income available to common stockholders$264,820  $209,390  $141,022  $79,744  $246,548 
                        
    Net non-core items, net of taxes 9,448   426   (2,027)  (3,385)  31,738 
    Core earnings 264,300   202,323   133,985   73,838   269,566 
    Amortization of intangibles, net of taxes 9,968   7,493   5,010   2,521   8,720 
    Total core income available to common stockholders$274,268  $209,816  $138,995  $76,359  $278,286 
                        
    Average common stockholders' equity$2,921,039  $2,910,366  $2,894,351  $2,869,177  $2,396,024 
    Average intangible assets:     
       Goodwill (1,065,190)  (1,061,793)  (1,060,226)  (1,055,498)  (921,635)
       Other intangibles (118,812)  (120,731)  (122,928)  (125,746)  (104,000)
    Total average intangibles (1,184,002)  (1,182,524)  (1,183,154)  (1,181,244)  (1,025,635)
    Average tangible common stockholders' equity$1,737,037  $1,727,842  $1,711,197  $1,687,933  $1,370,389 
                        
    Return on average common equity 8.72%  9.27%  9.45%  10.83%  9.93%
    Return on tangible common equity 15.25%  16.19%  16.57%  19.00%  17.99%
    Core return on average common equity 9.05%  9.29%  9.31%  10.35%  11.25%
    Core return on tangible common equity 15.79%  16.22%  16.33%  18.19%  20.31%
                        
    Calculation of Efficiency Ratio (1)                   
          
    Non-interest expense$493,495  $365,360  $246,411  $128,813  $461,112 
    Non-core non-interest expense adjustment (21,529)  (9,040)  (5,350)  (1,306)  (42,972)
    Other real estate and foreclosure expense adjustment (1,706)  (1,161)  (561)  (319)  (3,282)
    Amortization of intangibles adjustment (13,495)  (10,144)  (6,782)  (3,413)  (11,805)
    Efficiency ratio numerator$456,765  $345,015  $233,718  $123,775  $403,053 
                        
    Net-interest income$639,734  $484,774  $331,164  $167,483  $601,753 
    Non-interest income 248,528   204,472   132,621   82,394   205,031 
    Non-core non-interest income adjustment (8,738)  (8,463)  (8,093)  (5,889)  - 
    Fully tax-equivalent adjustment (effective tax rate of 26.135%) 11,001   7,519   4,655   2,305   7,322 
    Gain on sale of securities (54,806)  (54,790)  (32,485)  (32,095)  (13,314)
    Efficiency ratio denominator$835,719  $633,512  $427,862  $214,198  $800,792 
                        
    Efficiency ratio (1) 54.66%  54.46%  54.62%  57.79%  50.33%
                        
    (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 Dec 31   Sep 30   Jun 30   Mar 31   Dec 31 
    (Unaudited) 2020   2020   2020   2020   2019 
    ($ in thousands)                   
    Calculation of Core Net Interest Margin                   
                        
    Net interest income$639,734  $484,774  $331,164  $167,483  $601,753 
    Fully tax-equivalent adjustment (effective tax rate of 26.135%) 11,001   7,519   4,655   2,305   7,322 
    Fully tax-equivalent net interest income 650,735   492,293   335,819   169,788   609,075 
                        
    Total accretable yield (41,507)  (32,508)  (23,560)  (11,837)  (41,244)
    Core net interest income$609,228  $459,785  $312,259  $157,951  $567,831 
    Average earning assets$19,272,886  $19,172,318  $19,049,487  $18,581,491  $15,824,571 
                        
    Net interest margin 3.38%  3.43%  3.55%  3.68%  3.85%
    Core net interest margin 3.16%  3.20%  3.30%  3.42%  3.59%
                        
    Calculation of Core Loan Yield                   
                        
    Loan interest income (FTE)$688,600  $528,294  $364,915  $187,566  $710,935 
    Total accretable yield (41,507)  (32,508)  (23,560)  (11,837)  (41,244)
    Core loan interest income$647,093  $495,786  $341,355  $175,729  $669,691 
    Average loan balance$14,260,689  $14,530,938  $14,640,082  $14,548,853  $12,938,013 
                        
    Core loan yield 4.54%  4.56%  4.69%  4.86%  5.18%
                        
    Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP) Earnings    
          
    Net income available to common stockholders$254,852  $201,897  $136,012  $77,223  $237,828 
    Provision for income taxes 64,890   53,920   36,287   20,694   64,265 
    Provision for credit losses (including provision for unfunded commitments) 74,973   68,030   45,049   23,134   43,240 
    (Gain) loss on sale of securities (54,806)  (54,790)  (32,485)  (32,095)  (13,314)
    Net pre-tax non-core items 12,791   577   (2,743)  (4,583)  42,972 
    Adjusted Pre-tax, pre-provision (PTPP) earnings$352,700  $269,634  $182,120  $84,373  $374,991 
                        

     


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