Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or
“Simmons”) today reported record net income of $271.2 million for
the year ended December 31, 2021, up $16.3 million, or 6 percent,
compared to $254.9 million earned during the full year 2020.
Diluted earnings per share for 2021 were $2.46, up $0.15, or 6
percent, compared to $2.31 earned in 2020. Included in 2021 results
were $7.2 million in net after-tax merger related costs, gains on
sale of branches and net branch right-sizing costs. Excluding the
impact of these items, core earnings were $278.3 million for the
year ended December 31, 2021, compared to $264.3 million for the
full year of 2020. Core diluted earnings per share were $2.53 for
2021, compared to $2.40 for 2020.
Net income for the fourth quarter of 2021 was
$48.2 million, compared to $53.0 million in the fourth quarter of
2020. Diluted earnings per share for the fourth quarter of 2021
were $0.42, compared to $0.49 for the fourth quarter of 2020.
Included in fourth quarter 2021 results were $13.6 million
(pre-tax) of merger related costs, primarily associated with the
acquisitions of Landmark Community Bank (“Landmark”) and Triumph
Bancshares, Inc. (“Triumph”), which were completed and integrated
in early October 2021. Excluding the impact of merger related and
net branch rightsizing costs, core earnings were $59.5 million in
the fourth quarter of 2021, compared to $62.0 million in the fourth
quarter of 2020.“Simmons delivered record earnings in 2021 while
continuing to navigate the headwinds brought about by the pandemic
and the resulting impact on economic and business conditions,” said
George A. Makris, Jr, Simmons’ chairman and CEO. “In addition to
our strong financial performance, the year also brought our return
to M&A activity with our acquisitions of Landmark Community
Bank and Triumph Bancshares, Inc., which have significantly
enhanced our size and scale in Tennessee where we now rank as the
8th largest bank based on deposit market share. Shortly after the
acquisition and integration of these two banks in October, we
announced a definitive agreement to acquire Spirit of Texas
Bancshares, Inc., which will further strengthen our Texas franchise
and establish a platform for growth in Houston, Austin, San Antonio
and College Station. We look forward to welcoming our new
customers, associates and shareholders to the Simmons family later
this year.”
“While overall loan growth was muted for much of
the year given the high levels of liquidity throughout the system,
we are beginning to see positive signs that indicate an increase in
business activity and a return to more normalized loan demand.
Newly funded loans and advances topped $2.6 billion in the fourth
quarter while unfunded commitments, considered a leading indicator
of future loan growth, rose 31 percent during the quarter. Equally
important, our commercial loan pipeline rose for the fifth
consecutive quarter and is more than double that of a year ago. We
are encouraged by this positive momentum and believe that our
strong capital position and outstanding deposit base well position
us for another strong year in 2022.”
|
Selected Highlights: |
FY 2021 |
FY 2020 |
Q4 21 |
Q4 20 |
|
Net income |
$271.2 million |
$254.9 million |
$48.2 million |
$53.0 million |
|
Diluted earnings per share |
$2.46 |
|
$2.31 |
|
$0.42 |
|
$0.49 |
|
|
Return on avg assets |
1.15% |
|
1.18% |
|
0.77% |
|
0.96% |
|
|
Return on avg common equity |
8.83% |
|
8.72% |
|
5.87% |
|
7.13% |
|
|
Return on tangible common equity (1) |
14.99% |
|
15.25% |
|
9.98% |
|
12.48% |
|
|
|
|
|
|
|
|
Core earnings (2) |
$278.3 million |
$264.3 million |
$59.5 million |
$62.0 million |
|
Core diluted earnings per share (2) |
$2.53 |
|
$2.40 |
|
$0.52 |
|
$0.57 |
|
|
Core return on avg assets (2) |
1.18% |
|
1.22% |
|
0.96% |
|
1.13% |
|
|
Core return on avg common equity (2) |
9.06% |
|
9.05% |
|
7.24% |
|
8.34% |
|
|
Core return on tangible common equity (1)(2) |
15.38% |
|
15.79% |
|
12.19% |
|
14.51% |
|
|
Efficiency ratio (3) |
57.92% |
|
54.18% |
|
59.48% |
|
54.75% |
|
|
Adjusted pre-tax, pre-provision earnings (2) |
$293.9 million |
$352.7 million |
$73.7 million |
$83.1 million |
(1) Return on tangible common
equity excludes goodwill and other intangible assets and is a
non-GAAP measurement. See “Non-GAAP Financial Measures” and
“Reconciliation of Non-GAAP Financial Measures”
below.(2) Core and adjusted figures exclude
non-core items and are non-GAAP measurements. See “Non-GAAP
Financial Measures” and “Reconciliation of Non-GAAP Financial
Measures” below.(3) Efficiency is a non-GAAP
measurement. See “Non-GAAP Financial Measures” and “Reconciliation
of Non-GAAP Financial Measures” below.Loans
|
($ in billions) |
Q4 21 |
Q3 21 |
Q2 21 |
Q1 21 |
Q4 20 |
|
Total loans |
$12.0 |
$10.8 |
$11.4 |
$12.2 |
$12.9 |
|
Total loans excluding PPP |
$11.9 |
$10.6 |
$10.9 |
$11.4 |
$12.0 |
Total loans at the end of the fourth quarter of
2021 were $12.0 billion, compared to $10.8 billion at the end of
the third quarter of 2021 and $12.9 billion at the end of the
fourth quarter of 2020. The decrease in total loans from a year ago
reflects planned run-off in certain targeted portfolios, Paycheck
Protection Program (“PPP”) loan forgiveness, and increased paydowns
and payoffs that were exacerbated by higher than normal levels of
liquidity made available during the pandemic. The increase in total
loans on a linked quarter basis primarily reflects loans acquired
in connection with the Landmark and Triumph acquisitions, and an
increase in loan production, which offset paydowns and payoffs
during the quarter.
At the same time, evidence suggests that loan
demand is beginning to return to more normalized levels. During the
fourth quarter of 2021, newly funded loans and advances totaled
$2.6 billion, up from $1.5 billion during the third quarter of
2021. Unfunded commitments rose for the third consecutive quarter,
including a 31 percent increase on a linked quarter basis. Momentum
in our commercial pipeline continued during the quarter with all
loan opportunities totaling $2.3 billion, an increase of 56 percent
on a linked quarter basis and more than double the levels of a year
ago. This marked the fifth consecutive quarter of increased
activity in the commercial pipeline as each respective category
showed double-digit increases from third quarter 2021 levels.
Equally important, the increases were broad-based across most of
our markets and across our business units.
Deposits
|
($ in billions) |
Q4 21 |
Q3 21 |
Q2 21 |
Q1 21 |
Q4 20 |
|
Total deposits |
$19.4 |
$18.1 |
$18.3 |
$18.2 |
$17.0 |
|
Noninterest bearing deposits |
$5.3 |
$4.9 |
$4.9 |
$4.9 |
$4.5 |
|
Interest bearing deposits |
$11.6 |
$10.7 |
$10.6 |
$10.3 |
$9.7 |
|
Time deposits |
$2.5 |
$2.5 |
$2.8 |
$3.0 |
$2.8 |
Total deposits at the end of the fourth quarter
of 2021 were $19.4 billion, an increase of $2.4 billion, or 14
percent, from $17.0 billion at the end of the fourth quarter of
2020. Total noninterest bearing deposits accounts totaled $5.3
billion, up $843 million, or 19 percent, from $4.5 billion at the
end of the fourth quarter a year ago. Interest bearing deposits
(checking, savings and money market accounts) totaled $11.6
billion, up $1.9 billion, or 20 percent, compared to $9.7 billion
at the end of 2020. The year-over-year increases in each of these
categories reflects an increase in customers as well as acquired
deposits from the Landmark and Triumph acquisitions. Time deposits
totaled $2.5 billion at the end of the fourth quarter of 2021, down
13 percent compared to $2.8 billion at the end of 2020.
Net Interest Income
|
|
Q4 21 |
Q3 21 |
Q2 21 |
Q1 21 |
Q4 20 |
|
Loan yield (1) |
4.58% |
4.76% |
4.73% |
4.75% |
4.74% |
|
Security yield (1) |
1.74% |
1.77% |
1.97% |
2.36% |
2.48% |
|
Cost of interest bearing deposits |
0.23% |
0.27% |
0.32% |
0.41% |
0.47% |
|
Cost of deposits (2) |
0.17% |
0.20% |
0.24% |
0.30% |
0.34% |
|
Cost of borrowed funds |
1.95% |
1.96% |
1.97% |
1.91% |
1.88% |
|
Net interest spread (1) |
2.74% |
2.72% |
2.74% |
2.83% |
3.04% |
|
Net interest margin (1) |
2.86% |
2.85% |
2.89% |
2.99% |
3.22% |
(1) Fully tax equivalent using
an effective tax rate of 26.135%.(2) Includes
noninterest bearing deposits.
Net interest income for the fourth quarter of
2021 totaled $153.1 million, compared to $155.0 million in the
fourth quarter of 2020, a decrease of 1 percent. Included in net
interest income is accretion recognized on loans acquired, which
totaled $5.8 million in the fourth quarter of 2021 and $9.0 million
in the fourth quarter of 2020. Also included in net interest income
is interest income on PPP loans, which totaled $5.1 million in the
fourth quarter of 2021 and $6.5 million in the fourth quarter of
2020. The decrease in net interest income from a year ago reflects
lower average loan balances, a decrease in loan yields and lower
contributions from accretion and PPP loans, offset in part by our
ability to successfully reduce deposit costs.
The yield on loans for the fourth quarter of
2021 was 4.58 percent, compared to 4.76 percent in the third
quarter of 2021 and 4.74 percent in the fourth quarter of 2020.
Cost of deposits for the fourth quarter of 2021 was 17 basis
points, down 3 basis points on a linked quarter basis and down 17
basis points compared to the fourth quarter of 2020. Net interest
margin on a fully taxable equivalent basis was 2.86 percent for the
fourth quarter of 2021, compared to 2.85 percent in the third
quarter of 2021 and 3.22 percent in the fourth quarter of 2020.
Throughout 2021, the Company strategically redeployed excess
liquidity through the purchase of investment securities, including
short-term variable rate securities. At December 31, 2021,
short-term, variable securities totaled approximately $1.5
billion.
Noninterest IncomeNoninterest
income for 2021 was $191.8 million, compared to $239.8 million
recorded in 2020. The decrease in noninterest income was primarily
due to a $39.3 million decrease in gains on sales of investment
securities and a $12.7 million decrease in mortgage lending income,
offset in part by a $3.5 million increase in debit and credit card
fees as a result of an increased usage and a higher number of
customers.
Noninterest income for the fourth quarter of
2021 was $46.6 million, compared to $41.8 million in the fourth
quarter of 2020. The increase in noninterest income compared to a
year ago was broad based as most of our fee-based businesses posted
gains, including mortgage lending income up $2.1 million, service
charges on deposit accounts up $1.1 million, debit and credit card
fee up $1.0 million and wealth management fees up $0.8 million.
|
Select Noninterest Income Items($ in
millions) |
FY 2021 |
FY 2020 |
Q4 21 |
Q4 20 |
|
Service charges on deposit accounts |
$43.2 |
$43.1 |
$11.9 |
|
$10.8 |
|
Wealth management fees |
$31.2 |
$30.4 |
$8.0 |
|
$7.2 |
|
Debit and credit card fees (1) |
$28.2 |
$24.7 |
$7.5 |
|
$6.4 |
|
Mortgage lending income |
$21.8 |
$34.5 |
$5.0 |
|
$3.0 |
|
Bank owned life insurance |
$8.9 |
$5.8 |
$2.8 |
|
$1.5 |
|
Gain on sale of securities |
$15.5 |
$54.8 |
$(0.4) |
|
- |
|
Other income |
$35.3 |
$39.9 |
$10.0 |
|
$11.0 |
|
|
|
|
|
|
|
Core other income (2) |
$29.6 |
$31.1 |
$10.0 |
|
$10.8 |
(1) During the second quarter
of 2021, certain debit and credit card transaction fees were
reclassified from noninterest expense to noninterest income. Prior
periods have been adjusted to reflect this
reclassification.(2) Core figures exclude non-core
items and are non-GAAP measurements. Please see “Non-GAAP Financial
Measures” and “Reconciliation of Non-GAAP Financial Measures”
below.
Noninterest ExpenseNoninterest
expense for 2021 was $483.6 million, down $1.1 million, or less
than 1 percent, compared to $484.7 million recorded in 2020.
Included in 2021 noninterest expense are pre-tax, non-core items
totaling $15.3 million that primarily consist of merger-related
expenses ($15.9 million, pre-tax). Excluding these items, core
noninterest expense for 2021 was $468.2 million, compared to core
noninterest expense of $463.2 million for 2020. The increase was
primarily attributable to an increase in salaries and benefits
(+$6.9 million), offset in part by a decline in furniture and
equipment expense (-$4.0 million).
Noninterest expense for the fourth quarter of
2021 totaled $141.6 million, compared to $125.8 million in the
fourth quarter of 2020. Included in noninterest expense are
pre-tax, non-core items totaling $15.2 million that primarily
consisted of merger-related expenses ($13.6 million, pre-tax).
Excluding these items, core noninterest expense for the fourth
quarter of 2021 was $126.4 million, compared to $113.4 million in
the fourth quarter of 2020. The increase in noninterest expense was
primarily due to the addition of operating expenses associated with
the acquired banks at the beginning of the quarter. Expected costs
saves from the acquisitions are expected to be achieved, in their
entirety, in 2022. During the fourth quarter of 2021, the Company
also donated $2.5 million to the Simmons First Foundation.
|
Select Noninterest Expense Items($ in
millions) |
FY 2021 |
FY 2020 |
Q4 21 |
Q4 20 |
|
Salaries and employee benefits |
$246.3 |
$242.5 |
$63.9 |
$55.8 |
|
Occupancy expense, net |
$38.8 |
$37.6 |
$11.0 |
$9.2 |
|
Furniture and equipment expense |
$19.9 |
$24.0 |
$4.7 |
$5.9 |
|
Merger related costs |
$15.9 |
$4.5 |
$13.6 |
$0.7 |
|
Other operating expenses (1) |
$153.6 |
$165.2 |
$45.7 |
$52.0 |
|
|
|
|
|
|
|
Core salaries and employee benefits (2) |
$246.2 |
$239.4 |
$63.8 |
$55.6 |
|
Core other operating expenses (2) |
$157.1 |
$153.0 |
$45.8 |
$41.8 |
(1) During the second quarter
of 2021, certain debit and credit card transaction fees were
reclassified from noninterest expense to noninterest income. Prior
periods have been adjusted to reflect this
reclassification.(2) Core figures exclude non-core
items and are non-GAAP measurements. Please see “Non-GAAP Financial
Measures” and “Reconciliation of Non-GAAP Financial Measures”
below.
Asset Quality
|
($ in millions) |
Q4 21 |
Q3 21 |
Q2 21 |
Q1 21 |
Q4 20 |
|
Allowance for credit losses on loans to total loans |
1.71% |
1.87% |
2.00% |
1.93% |
1.85% |
|
Allowance for credit losses on loans to nonperforming loans |
300% |
341% |
281% |
204% |
193% |
|
Nonperforming loans to total loans |
0.57% |
0.55% |
0.71% |
0.95% |
0.96% |
|
Net charge-off ratio (annualized) |
0.31% |
0.17% |
(0.07%) |
0.10% |
0.52% |
|
Net charge-off ratio YTD (annualized) |
0.13% |
0.06% |
0.01% |
0.10% |
0.45% |
|
|
|
|
|
|
|
|
Total nonperforming loans |
$68.6 |
$59.4 |
$80.9 |
$115.5 |
$123.5 |
|
Total other nonperforming assets |
$7.7 |
$13.5 |
$16.3 |
$12.4 |
$20.4 |
Credit quality metrics showed marked improvement
throughout the year. Total nonperforming assets as a percentage of
total assets were 0.31 percent at the end of 2021, compared to 0.64
percent at the end of 2020. Total nonperforming loans at the end of
the fourth quarter of 2021 totaled $68.6 million, down $54.9
million compared to $123.5 million at the end of the fourth quarter
a year ago. Net charge-offs as a percentage of average loans for
the full year of 2021 were 13 basis points, down from 45 basis
points reported for the full year of 2020. Net charge-offs for the
fourth quarter of 2021 were 31 basis points, compared to 52 basis
points for the fourth quarter of 2020. Provision for credit losses
for the full year of 2021 was a credit of $32.7 million compared to
expense of $75.0 million for the full year of 2020, reflecting
positive trends in asset quality metrics throughout the year and
improved economic modeling scenarios that in the prior year were
negatively impacted by the corresponding impact of the pandemic on
the macroeconomic environment. Provision for credit losses on loans
during the fourth quarter of 2021 was a credit of $1.3 million,
compared to expense of $6.9 million during the fourth quarter of
2020.
The allowance for credit losses on loans at the
end of 2021 was $205.3 million, compared to $238.1 million at the
end of 2020. During the fourth quarter of 2021, the Company
recorded allowance of $13.4 million in connection with Purchase
Credit Deteriorated loans acquired in the Landmark and Triumph
acquisitions. The allowance to loan ratio ended 2021 at 1.71
percent, compared to 1.85 percent at the end of 2020, and the
nonperforming loan coverage ratio was 300 percent at the end of
2021, compared to 193 percent at the end of 2020.
Capital
|
|
Q4 21 |
Q3 21 |
Q2 21 |
Q1 21 |
Q4 20 |
|
Stockholders’ equity to total assets |
13.1% |
13.1% |
13.0% |
12.6% |
13.3% |
|
Tangible common equity to tangible assets (1) |
8.5% |
8.4% |
8.4% |
7.9% |
8.5% |
|
Regulatory common equity tier 1 ratio |
13.8% |
14.3% |
14.2% |
14.1% |
13.4% |
|
Regulatory tier 1 leverage ratio |
9.1% |
9.1% |
9.0% |
9.0% |
9.1% |
|
Regulatory tier 1 risk-based capital ratio |
13.8% |
14.3% |
14.2% |
14.1% |
13.4% |
|
Regulatory total risk-based capital ratio |
16.8% |
17.4% |
17.5% |
17.5% |
16.8% |
(1) Tangible common equity to
tangible assets is a non-GAAP measurement. Please see “Non-GAAP
Financial Measures” and “Reconciliation of Non-GAAP Financial
Measures” below.
Total common stockholders’ equity at the end of
2021 was $3.2 billion, compared to $3.0 billion at the end of 2020.
During the fourth quarter of 2021, the Company redeemed its
outstanding preferred stock totaling approximately $767 thousand.
Book value per share at the end of the fourth quarter of 2021 was
$28.82, compared to $27.53 at the end of the fourth quarter of
2020. Tangible book value per share was $17.71 at the end of the
fourth quarter of 2021, compared to $16.56 at the end of the fourth
quarter of 2020. The ratio of stockholders’ equity to total assets
at December 31, 2021 was 13.1 percent, while tangible common equity
to tangible total assets was 8.5 percent. All of the Company’s
regulatory capital ratios continue to significantly exceed
“well-capitalized” guidelines, and it is noteworthy that the
increase in book value per share and tangible book value per share
was accomplished while also completing the acquisitions of Landmark
and Triumph, paying cash dividends and actively utilizing the
Company’s stock repurchase program.
Share Repurchase Program and Cash
DividendAs a result of the Company’s strong capital
position and ability to organically generate capital, the Company’s
board of directors has declared a quarterly cash dividend on the
Company’s Class A common stock of $0.19 per share, which is payable
on April 4, 2022, to shareholders of record as of March 15, 2022.
The cash dividend rate represents an increase of $0.01 per share,
or 6 percent, from the dividend paid for the same time period last
year.
During the fourth quarter of 2021, the Company
repurchased approximately 2.6 million shares of its Class A common
stock at an average price of $29.69 pursuant to the Company’s stock
repurchase program, which was originally approved in October 2019
(the “2019 Program”). Remaining capacity under the 2019 Program at
the end of 2021 totaled approximately $20.6 million. During January
2022, the Company substantially exhausted the remaining capacity
under the 2019 Program.
Therefore, the Company also announced today that
its board of directors has authorized a new stock repurchase
program (the “New Program”) under which the Company may repurchase
up to $175,000,000 of its Class A common stock currently issued and
outstanding. The New Program replaces the 2019 Program.
Under the New Program, the Company may
repurchase shares of its common stock through open market and
privately negotiated transactions or otherwise. The timing,
pricing, and amount of any repurchases under the New Program will
be determined by the Company’s management at its discretion based
on a variety of factors, including, but not limited to, trading
volume and market price of the Company’s common stock, corporate
considerations, the Company’s working capital and investment
requirements, general market and economic conditions, and legal
requirements. The New Program does not obligate the Company to
repurchase any common stock and may be modified, discontinued, or
suspended at any time without prior notice. The Company anticipates
funding for the New Program to come from available sources of
liquidity, including cash on hand and future cash flow. The New
Program will terminate on January 31, 2024 (unless terminated
sooner).
Simmons First National
CorporationSimmons First National Corporation (NASDAQ:
SFNC) is a Mid-South based financial holding company whose
principal subsidiary, Simmons Bank, operates 199 financial centers
in Arkansas, Missouri, Tennessee, Texas, Oklahoma and Kansas.
Founded in 1903, Simmons Bank offers comprehensive financial
solutions delivered with a client-centric approach. Simmons Bank
was named to Forbes’ list of “World’s Best Banks” for the second
consecutive year and ranked among the top 30 banks in Forbes’ list
of “America’s Best Banks” for 2021. Additional information about
Simmons and Simmons Bank can be found on our website at
simmonsbank.com, by following @Simmons_Bank on Twitter or by
visiting our newsroom.
Conference CallManagement will
conduct a live conference call to review this information beginning
at 9:00 a.m. Central Time today, Thursday, January 27, 2022.
Interested persons can listen to this call by
dialing toll-free 1-866-298-7926 (United States and Canada
only) and asking for the Simmons First National Corporation
conference call, conference ID 7373369. In addition, the call
will be available live or in recorded version on the Company’s
website at simmonsbank.com for at least 60 days.
Non-GAAP Financial MeasuresThis
press release contains financial information determined by methods
other than in accordance with U.S. generally accepted accounting
principles (“GAAP”). The Company’s management uses these non-GAAP
financial measures in their analysis of the Company’s performance.
These measures adjust GAAP performance measures to, among other
things, include the tax benefit associated with revenue items that
are tax-exempt, as well as exclude from income available to common
shareholders, non-interest income, and non-interest expense certain
income and expenses related to significant non-core activities,
including merger-related expenses, gain on sale of branches, early
retirement program expenses and net branch right-sizing expenses.
In addition, the Company also presents certain figures based on
tangible common stockholders’ equity, tangible assets and tangible
book value, which exclude goodwill and other intangible assets. The
Company further presents certain figures that are exclusive of the
impact of PPP loans. The Company’s management believes that these
non-GAAP financial measures are useful to investors because they,
among other things, present the results of the Company’s ongoing
operations without the effect of mergers or other items not central
to the Company’s ongoing business, as well as normalize for tax
effects. Management, therefore, believes presentations of these
non-GAAP financial measures provide useful supplemental information
that is essential to a proper understanding of the operating
results of the Company’s core businesses, and management uses these
non-GAAP financial measures to assess the performance of the
Company’s core businesses as related to prior financial periods.
These non-GAAP disclosures should not be viewed as a substitute for
operating results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies. Where non-GAAP financial measures are
used, the comparable GAAP financial measure, as well as the
reconciliation to the comparable GAAP financial measure, can be
found in the tables of this release.
Forward-Looking
StatementsCertain statements in this news release may not
be based on historical facts and should be considered
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements, including, without limitation, statements made in Mr.
Makris’s quotes, may be identified by reference to future periods
or by the use of forward-looking terminology, such as “believe,”
“budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,”
“target,” “estimate,” “plan,” “project,” “continue,” “contemplate,”
“positions,” “prospects,” “predict,” or “potential,” by future
conditional verbs such as “will,” “would,” “should,” “could,”
“might” or “may,” or by variations of such words or by similar
expressions. These forward-looking statements include, without
limitation, statements relating to Simmons’ future growth, lending
capacity and lending activity, loan demand, revenue, assets, asset
quality, profitability, net interest margin, non-interest revenue,
share repurchase program, acquisition strategy, digital banking
initiatives, the Company’s ability to recruit and retain key
employees, branch closures and branch sales, the adequacy of the
allowance for credit losses, the ability of the Company to manage
the impacts of the COVID-19 pandemic, and the impacts of the
Company’s and its customers’ participation in the PPP. Any
forward-looking statement speaks only as of the date of this news
release, and Simmons undertakes no obligation to update these
forward-looking statements to reflect events or circumstances that
occur after the date of this news release. By nature,
forward-looking statements are based on various assumptions and
involve inherent risk and uncertainties. Various factors,
including, but not limited to, changes in economic conditions,
credit quality, interest rates, loan demand, deposit flows, real
estate values, the assumptions used in making the forward-looking
statements, the securities markets generally or the price of
Simmons’ common stock specifically, and information technology
affecting the financial industry; the effect of steps the Company
takes and has taken in response to the COVID-19 pandemic; the
severity and duration of the pandemic, including the effectiveness
of “booster” vaccination efforts and developments with respect to
COVID-19 variants; 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; changes in accounting principles relating to
loan loss recognition (current expected credit losses, or CECL);
the ability to obtain regulatory approvals and meet other closing
conditions to the proposed merger of Spirit of Texas Bancshares,
Inc. (“Spirit”) with and into the Company (“Proposed Transaction”);
delay in closing the Proposed Transaction; difficulties and delays
in integrating the acquired business or fully realizing cost
savings and other benefits of the Proposed Transaction; 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 projected in
or contemplated by the forward-looking statements. Additional
information on factors that might affect the Company’s financial
results is included in the Company’s Form 10-K for the year ended
December 31, 2020, 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.
Important Additional Information and
Where to Find ItThis communication does not constitute an
offer to sell or the solicitation of an offer to buy any securities
or a solicitation of any vote or approval with respect to the
Proposed Transaction. No offer of securities shall be made except
by means of a prospectus meeting the requirements of the Securities
Act of 1933, as amended, and no offer to sell or solicitation of an
offer to buy shall be made in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
In connection with the Proposed Transaction, the
Company has filed with the SEC a registration statement on Form S-4
(the “Registration Statement”) to register the shares of Company
common stock that will be issued to Spirit shareholders in the
Proposed Transaction. The Registration Statement includes a proxy
statement of Spirit and a prospectus of the Company (the “Proxy
Statement/Prospectus”), and the Company and/or Spirit may file with
the SEC other relevant documents concerning the Proposed
Transaction. The definitive Proxy Statement/Prospectus is being
mailed to shareholders of Spirit. SHAREHOLDERS ARE URGED TO READ
THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS
REGARDING THE PROPOSED TRANSACTION CAREFULLY AND IN ITS ENTIRETY
WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED
WITH THE SEC BY THE COMPANY AND/OR SPIRIT, AS WELL AS ANY
AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Free copies of the Proxy Statement/Prospectus,
as well as other filings containing information about the Company
and Spirit, may be obtained at the SEC’s Internet site
(http://www.sec.gov), when they are filed by the Company or Spirit.
You will also be able to obtain these documents, when they are
filed, free of charge, from the Company at simmonsbank.com under
the heading “Investor Relations” or from Spirit at www.sotb.com
under the “Investor Relations” link. Copies of the Proxy
Statement/Prospectus can also be obtained, free of charge, by
directing a request to the Company at Simmons First National
Corporation, 501 Main Street, Pine Bluff, Arkansas 71601,
Attention: Ed Bilek, Director of Investor Relations, Email:
ed.bilek@simmonsbank.com or ir@simmonsbank.com, Telephone: (870)
541-1000; or by directing a request to Spirit at Spirit of Texas
Bancshares, Inc., 1836 Spirit of Texas Way, Conroe, Texas 77301,
Attention: Corporate Secretary, Email: jgoleman@sotb.com,
Telephone: (936) 521-1836.
Participants in the
SolicitationThe Company, Spirit, and certain of their
respective directors, executive officers and employees may be
deemed to be participants in the solicitation of proxies from the
shareholders of Spirit in connection with the Proposed Transaction.
Information about the Company’s directors and executive officers is
available in its proxy statement for its 2021 annual meeting of
shareholders, which was filed with the SEC on April 15, 2021.
Information about Spirit’s directors and executive officers is
available in its proxy statement for its 2021 annual meeting of
shareholders, which was filed with the SEC on April 9, 2021.
Information regarding all of the persons who may, under the rules
of the SEC, be deemed participants in the proxy solicitation and a
description of their direct and indirect interests, by security
holdings or otherwise, will be contained in the Proxy
Statement/Prospectus regarding the Proposed Transaction and other
relevant materials to be filed with the SEC when they become
available. Free copies of these documents may be obtained as
described in the preceding paragraph.
FOR MORE INFORMATION CONTACT:Ed BilekEVP, Director of Investor
RelationsSimmons First National
Corporationed.bilek@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) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
| ($
in thousands) |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
| Cash and
non-interest bearing balances due from banks |
$ |
209,190 |
|
$ |
225,500 |
|
$ |
215,381 |
|
$ |
227,713 |
|
$ |
217,499 |
|
| Interest
bearing balances due from banks and federal funds sold |
|
1,441,463 |
|
|
1,555,913 |
|
|
2,123,743 |
|
|
3,677,750 |
|
|
3,254,653 |
|
|
Cash and cash equivalents |
|
1,650,653 |
|
|
1,781,413 |
|
|
2,339,124 |
|
|
3,905,463 |
|
|
3,472,152 |
|
| Interest
bearing balances due from banks - time |
|
1,882 |
|
|
1,780 |
|
|
1,335 |
|
|
1,334 |
|
|
1,579 |
|
| Investment
securities - held-to-maturity |
|
1,529,221 |
|
|
1,516,797 |
|
|
931,352 |
|
|
609,500 |
|
|
333,031 |
|
| Investment
securities - available-for-sale |
|
7,113,545 |
|
|
6,822,203 |
|
|
6,556,581 |
|
|
4,528,348 |
|
|
3,473,598 |
|
| Mortgage
loans held for sale |
|
36,356 |
|
|
34,628 |
|
|
36,011 |
|
|
63,655 |
|
|
137,378 |
|
| Other assets
held for sale |
|
100 |
|
|
100 |
|
|
100 |
|
|
100 |
|
|
100 |
|
| Loans: |
|
|
|
|
|
|
Loans |
|
12,012,503 |
|
|
10,825,227 |
|
|
11,386,352 |
|
|
12,195,873 |
|
|
12,900,897 |
|
|
Allowance for credit losses on loans |
|
(205,332 |
) |
|
(202,508 |
) |
|
(227,239 |
) |
|
(235,116 |
) |
|
(238,050 |
) |
|
Net loans |
|
11,807,171 |
|
|
10,622,719 |
|
|
11,159,113 |
|
|
11,960,757 |
|
|
12,662,847 |
|
| Premises and
equipment |
|
483,469 |
|
|
463,924 |
|
|
429,587 |
|
|
427,540 |
|
|
441,692 |
|
| Premises
held for sale |
|
- |
|
|
- |
|
|
6,090 |
|
|
13,613 |
|
|
15,008 |
|
| Foreclosed
assets and other real estate owned |
|
6,032 |
|
|
11,759 |
|
|
15,239 |
|
|
11,168 |
|
|
18,393 |
|
| Interest
receivable |
|
72,990 |
|
|
68,405 |
|
|
67,916 |
|
|
71,359 |
|
|
72,597 |
|
| Bank owned
life insurance |
|
445,305 |
|
|
421,762 |
|
|
419,198 |
|
|
257,152 |
|
|
255,630 |
|
|
Goodwill |
|
1,146,007 |
|
|
1,075,305 |
|
|
1,075,305 |
|
|
1,075,305 |
|
|
1,075,305 |
|
| Other
intangible assets |
|
106,235 |
|
|
100,428 |
|
|
103,759 |
|
|
107,091 |
|
|
111,110 |
|
| Other
assets |
|
325,793 |
|
|
304,707 |
|
|
282,449 |
|
|
315,732 |
|
|
289,332 |
|
|
Total assets |
$ |
24,724,759 |
|
$ |
23,225,930 |
|
$ |
23,423,159 |
|
$ |
23,348,117 |
|
$ |
22,359,752 |
|
| |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest bearing transaction accounts |
$ |
5,325,318 |
|
$ |
4,918,845 |
|
$ |
4,893,959 |
|
$ |
4,884,667 |
|
$ |
4,482,091 |
|
|
Interest bearing transaction accounts and savings deposits |
|
11,588,770 |
|
|
10,697,451 |
|
|
10,569,602 |
|
|
10,279,997 |
|
|
9,672,608 |
|
|
Time deposits |
|
2,452,460 |
|
|
2,455,774 |
|
|
2,841,052 |
|
|
3,024,724 |
|
|
2,832,327 |
|
|
Total deposits |
|
19,366,548 |
|
|
18,072,070 |
|
|
18,304,613 |
|
|
18,189,388 |
|
|
16,987,026 |
|
| Federal
funds purchased and securities sold |
|
|
|
|
|
|
under agreements to repurchase |
|
185,403 |
|
|
217,276 |
|
|
187,215 |
|
|
323,053 |
|
|
299,111 |
|
| Other
borrowings |
|
1,337,973 |
|
|
1,338,585 |
|
|
1,339,193 |
|
|
1,340,467 |
|
|
1,342,067 |
|
| Subordinated
notes and debentures |
|
384,131 |
|
|
383,278 |
|
|
383,143 |
|
|
383,008 |
|
|
382,874 |
|
| Other
liabilities held for sale |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
154,620 |
|
| Accrued
interest and other liabilities |
|
201,863 |
|
|
184,190 |
|
|
169,629 |
|
|
181,426 |
|
|
217,398 |
|
|
Total liabilities |
|
21,475,918 |
|
|
20,195,399 |
|
|
20,383,793 |
|
|
20,417,342 |
|
|
19,383,096 |
|
| |
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Preferred stock |
|
- |
|
|
767 |
|
|
767 |
|
|
767 |
|
|
767 |
|
|
Common stock |
|
1,127 |
|
|
1,066 |
|
|
1,084 |
|
|
1,083 |
|
|
1,081 |
|
|
Surplus |
|
2,164,989 |
|
|
1,974,561 |
|
|
2,021,128 |
|
|
2,017,188 |
|
|
2,014,076 |
|
|
Undivided profits |
|
1,093,270 |
|
|
1,065,566 |
|
|
1,004,314 |
|
|
948,913 |
|
|
901,006 |
|
|
Accumulated other comprehensive (loss) income: |
|
|
|
|
|
|
Unrealized (depreciation) appreciation on AFS securities |
|
(10,545 |
) |
|
(11,429 |
) |
|
12,073 |
|
|
(37,176 |
) |
|
59,726 |
|
|
Total stockholders' equity |
|
3,248,841 |
|
|
3,030,531 |
|
|
3,039,366 |
|
|
2,930,775 |
|
|
2,976,656 |
|
|
Total liabilities and stockholders' equity |
$ |
24,724,759 |
|
$ |
23,225,930 |
|
$ |
23,423,159 |
|
$ |
23,348,117 |
|
$ |
22,359,752 |
|
|
|
|
|
|
|
|
| Page
1 |
| |
|
|
|
|
|
|
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) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
2020 |
|
| ($
in thousands, except per share data) |
|
|
|
|
|
|
|
INTEREST INCOME |
|
|
|
|
|
|
|
Loans (including fees) |
$ |
137,564 |
|
$ |
132,216 |
|
$ |
138,804 |
|
$ |
146,424 |
$ |
160,115 |
|
|
Interest bearing balances due from banks and
federal funds sold |
|
583 |
|
|
763 |
|
|
651 |
|
|
798 |
|
716 |
|
|
Investment securities |
|
32,275 |
|
|
30,717 |
|
|
27,128 |
|
|
21,573 |
|
17,207 |
|
|
Mortgage loans held for sale |
|
310 |
|
|
230 |
|
|
386 |
|
|
639 |
|
1,070 |
|
|
TOTAL
INTEREST INCOME |
|
170,732 |
|
|
163,926 |
|
|
166,969 |
|
|
169,434 |
|
179,108 |
|
|
INTEREST EXPENSE |
|
|
|
|
|
|
|
Time deposits |
|
3,705 |
|
|
4,747 |
|
|
6,061 |
|
|
7,091 |
|
7,835 |
|
|
Other deposits |
|
4,390 |
|
|
4,369 |
|
|
4,721 |
|
|
6,088 |
|
6,536 |
|
|
Federal funds purchased and securities |
|
|
|
|
|
|
|
sold under agreements to
repurchase |
|
72 |
|
|
70 |
|
|
192 |
|
|
245 |
|
284 |
|
|
Other borrowings |
|
4,903 |
|
|
4,893 |
|
|
4,897 |
|
|
4,802 |
|
4,869 |
|
|
Subordinated notes and debentures |
|
4,581 |
|
|
4,610 |
|
|
4,565 |
|
|
4,527 |
|
4,624 |
|
|
TOTAL
INTEREST EXPENSE |
|
17,651 |
|
|
18,689 |
|
|
20,436 |
|
|
22,753 |
|
24,148 |
|
| NET
INTEREST INCOME |
|
153,081 |
|
|
145,237 |
|
|
146,533 |
|
|
146,681 |
|
154,960 |
|
|
Provision for credit losses |
|
(1,308 |
) |
|
(19,890 |
) |
|
(12,951 |
) |
|
1,445 |
|
6,943 |
|
| NET
INTEREST INCOME AFTER PROVISION |
|
|
|
|
|
|
|
FOR CREDIT LOSSES |
|
154,389 |
|
|
165,127 |
|
|
159,484 |
|
|
145,236 |
|
148,017 |
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
Wealth management fees |
|
8,042 |
|
|
7,877 |
|
|
7,892 |
|
|
7,361 |
|
7,233 |
|
|
Service charges on deposit accounts |
|
11,909 |
|
|
11,557 |
|
|
10,050 |
|
|
9,715 |
|
10,799 |
|
|
Other service charges and fees |
|
1,762 |
|
|
1,964 |
|
|
2,048 |
|
|
1,922 |
|
1,783 |
|
|
Mortgage lending income |
|
5,043 |
|
|
5,818 |
|
|
4,490 |
|
|
6,447 |
|
2,993 |
|
|
Debit and credit card fees |
|
7,460 |
|
|
7,102 |
|
|
7,073 |
|
|
6,610 |
|
6,415 |
|
|
Bank owned life insurance income |
|
2,768 |
|
|
2,573 |
|
|
2,038 |
|
|
1,523 |
|
1,481 |
|
|
(Loss) gain on sale of securities, net |
|
(348 |
) |
|
5,248 |
|
|
5,127 |
|
|
5,471 |
|
16 |
|
|
Other income |
|
9,965 |
|
|
6,411 |
|
|
8,397 |
|
|
10,500 |
|
11,041 |
|
|
TOTAL
NON-INTEREST INCOME |
|
46,601 |
|
|
48,550 |
|
|
47,115 |
|
|
49,549 |
|
41,761 |
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
63,832 |
|
|
61,902 |
|
|
60,261 |
|
|
60,340 |
|
55,762 |
|
|
Occupancy expense, net |
|
11,033 |
|
|
9,361 |
|
|
9,103 |
|
|
9,300 |
|
9,182 |
|
|
Furniture and equipment expense |
|
4,721 |
|
|
4,895 |
|
|
4,859 |
|
|
5,415 |
|
5,940 |
|
|
Other real estate and foreclosure expense |
|
576 |
|
|
339 |
|
|
863 |
|
|
343 |
|
551 |
|
|
Deposit insurance |
|
2,108 |
|
|
1,870 |
|
|
1,687 |
|
|
1,308 |
|
1,627 |
|
|
Merger-related costs |
|
13,591 |
|
|
1,401 |
|
|
686 |
|
|
233 |
|
731 |
|
|
Other operating expenses |
|
45,736 |
|
|
34,565 |
|
|
37,198 |
|
|
36,063 |
|
52,047 |
|
|
TOTAL
NON-INTEREST EXPENSE |
|
141,597 |
|
|
114,333 |
|
|
114,657 |
|
|
113,002 |
|
125,840 |
|
| NET
INCOME BEFORE INCOME TAXES |
|
59,393 |
|
|
99,344 |
|
|
91,942 |
|
|
81,783 |
|
63,938 |
|
|
Provision for income taxes |
|
11,155 |
|
|
18,770 |
|
|
17,018 |
|
|
14,363 |
|
10,970 |
|
| NET
INCOME |
|
48,238 |
|
|
80,574 |
|
|
74,924 |
|
|
67,420 |
|
52,968 |
|
|
Preferred stock dividends |
|
8 |
|
|
13 |
|
|
13 |
|
|
13 |
|
13 |
|
| NET
INCOME AVAILABLE TO COMMON STOCKHOLDERS |
$ |
48,230 |
|
$ |
80,561 |
|
$ |
74,911 |
|
$ |
67,407 |
$ |
52,955 |
|
|
BASIC EARNINGS PER SHARE |
$ |
0.42 |
|
$ |
0.75 |
|
$ |
0.69 |
|
$ |
0.62 |
$ |
0.49 |
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.42 |
|
$ |
0.74 |
|
$ |
0.69 |
|
$ |
0.62 |
$ |
0.49 |
|
| |
|
|
|
|
|
|
| Page
2 |
| |
|
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
SFNC |
|
Consolidated Risk-Based Capital |
|
|
|
|
|
| For
the Quarters Ended |
Dec
31 |
Sep
30 |
Jun
30 |
Mar
31 |
Dec
31 |
|
(Unaudited) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
| ($
in thousands) |
|
|
|
|
|
| Tier
1 capital |
|
|
|
|
|
|
Stockholders' equity |
$ |
3,248,841 |
|
$ |
3,030,531 |
|
$ |
3,039,366 |
|
$ |
2,930,775 |
|
$ |
2,976,656 |
|
| CECL
transition provision (1) |
|
114,458 |
|
|
122,787 |
|
|
128,933 |
|
|
131,637 |
|
|
131,430 |
|
|
Disallowed intangible assets, net of deferred
tax |
|
(1,226,686 |
) |
|
(1,152,688 |
) |
|
(1,156,203 |
) |
|
(1,159,720 |
) |
|
(1,163,797 |
) |
|
Unrealized loss (gain) on AFS securities |
|
10,545 |
|
|
11,429 |
|
|
(12,073 |
) |
|
37,176 |
|
|
(59,726 |
) |
|
Total Tier 1 capital |
|
2,147,158 |
|
|
2,012,059 |
|
|
2,000,023 |
|
|
1,939,868 |
|
|
1,884,563 |
|
| |
|
|
|
|
|
| Tier
2 capital |
|
|
|
|
|
|
Trust preferred securities and subordinated
debt |
|
384,131 |
|
|
383,278 |
|
|
383,143 |
|
|
383,008 |
|
|
382,874 |
|
|
Qualifying allowance for loan losses and |
|
|
|
|
|
|
reserve for unfunded
commitments |
|
71,853 |
|
|
60,700 |
|
|
79,138 |
|
|
87,251 |
|
|
89,546 |
|
|
Total Tier 2 capital |
|
455,984 |
|
|
443,978 |
|
|
462,281 |
|
|
470,259 |
|
|
472,420 |
|
|
Total risk-based capital |
$ |
2,603,142 |
|
$ |
2,456,037 |
|
$ |
2,462,304 |
|
$ |
2,410,127 |
|
$ |
2,356,983 |
|
| |
|
|
|
|
|
| Risk
weighted assets |
$ |
15,538,967 |
|
$ |
14,098,320 |
|
$ |
14,076,975 |
|
$ |
13,771,244 |
|
$ |
14,048,608 |
|
| |
|
|
|
|
|
| Adjusted
average assets for leverage ratio |
$ |
23,647,901 |
|
$ |
22,189,921 |
|
$ |
22,244,118 |
|
$ |
21,668,406 |
|
$ |
20,765,127 |
|
| |
|
|
|
|
|
|
Ratios at end of quarter |
|
|
|
|
|
|
Equity to assets |
|
13.14 |
% |
|
13.05 |
% |
|
12.98 |
% |
|
12.55 |
% |
|
13.31 |
% |
| Tangible
common equity to tangible assets (2) |
|
8.51 |
% |
|
8.41 |
% |
|
8.36 |
% |
|
7.88 |
% |
|
8.45 |
% |
|
Common equity Tier 1 ratio (CET1) |
|
13.82 |
% |
|
14.27 |
% |
|
14.20 |
% |
|
14.08 |
% |
|
13.41 |
% |
|
Tier 1 leverage ratio |
|
9.08 |
% |
|
9.07 |
% |
|
8.99 |
% |
|
8.95 |
% |
|
9.08 |
% |
|
Tier 1 risk-based capital ratio |
|
13.82 |
% |
|
14.27 |
% |
|
14.21 |
% |
|
14.09 |
% |
|
13.41 |
% |
|
Total risk-based capital ratio |
|
16.75 |
% |
|
17.42 |
% |
|
17.49 |
% |
|
17.50 |
% |
|
16.78 |
% |
| |
|
|
|
|
|
| (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. |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| Page
3 |
| |
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
SFNC |
|
|
Consolidated Investment Securities |
|
|
|
|
|
|
| For
the Quarters Ended |
Dec
31 |
Sep
30 |
Jun
30 |
Mar
31 |
Dec
31 |
|
|
(Unaudited) |
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
| ($
in thousands) |
|
|
|
|
|
|
|
Investment Securities - End of Period |
|
|
|
|
|
|
|
Held-to-Maturity |
|
|
|
|
|
|
|
U.S. Government agencies |
$ |
232,609 |
$ |
232,549 |
$ |
77,396 |
$ |
77,396 |
$ |
- |
|
|
Mortgage-backed securities |
|
70,342 |
|
57,930 |
|
60,649 |
|
47,988 |
|
22,354 |
|
|
State and political subdivisions |
|
1,209,051 |
|
1,209,091 |
|
793,307 |
|
484,116 |
|
310,109 |
|
|
Other securities |
|
17,219 |
|
17,227 |
|
- |
|
- |
|
568 |
|
|
Total held-to-maturity (net of
credit losses) |
|
1,529,221 |
|
1,516,797 |
|
931,352 |
|
609,500 |
|
333,031 |
|
|
Available-for-Sale |
|
|
|
|
|
|
|
U.S. Treasury |
$ |
300 |
$ |
300 |
$ |
600 |
$ |
600 |
$ |
- |
|
|
U.S. Government agencies |
|
364,641 |
|
354,382 |
|
554,937 |
|
487,679 |
|
477,237 |
|
|
Mortgage-backed securities |
|
4,448,616 |
|
4,421,620 |
|
3,987,209 |
|
2,133,086 |
|
1,394,936 |
|
|
State and political subdivisions |
|
1,819,658 |
|
1,575,208 |
|
1,557,497 |
|
1,571,910 |
|
1,470,723 |
|
|
Other securities |
|
480,330 |
|
470,693 |
|
456,338 |
|
335,073 |
|
130,702 |
|
|
Total available-for-sale (net
of credit losses) |
|
7,113,545 |
|
6,822,203 |
|
6,556,581 |
|
4,528,348 |
|
3,473,598 |
|
|
Total investment securities
(net of credit losses) |
$ |
8,642,766 |
$ |
8,339,000 |
$ |
7,487,933 |
$ |
5,137,848 |
$ |
3,806,629 |
|
|
Fair value - HTM investment
securities |
$ |
1,517,378 |
$ |
1,487,916 |
$ |
935,596 |
$ |
597,694 |
$ |
341,925 |
|
| |
|
|
|
|
|
|
|
Investment Securities - QTD Average |
|
|
|
|
|
|
| Taxable
securities |
$ |
5,790,429 |
$ |
5,475,932 |
$ |
4,265,545 |
$ |
2,471,291 |
$ |
1,757,234 |
|
| Tax exempt
securities |
|
2,787,301 |
|
2,496,958 |
|
2,157,076 |
|
1,919,919 |
|
1,528,127 |
|
|
Total investment securities - QTD average |
$ |
8,577,730 |
$ |
7,972,890 |
$ |
6,422,621 |
$ |
4,391,210 |
$ |
3,285,361 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Page
4 |
|
| |
|
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
SFNC |
|
|
Consolidated Loans |
|
|
|
|
|
|
| For
the Quarters Ended |
Dec
31 |
Sep
30 |
Jun
30 |
Mar
31 |
Dec
31 |
|
|
(Unaudited) |
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
| ($
in thousands) |
|
|
|
|
|
|
| Loan
Portfolio - End of Period |
|
|
|
|
|
|
|
Consumer |
|
|
|
|
|
|
|
Credit cards |
$ |
187,052 |
$ |
175,884 |
$ |
177,634 |
$ |
175,458 |
$ |
188,845 |
|
|
Other consumer |
|
168,318 |
|
182,492 |
|
181,712 |
|
172,965 |
|
202,379 |
|
|
Total consumer |
|
355,370 |
|
358,376 |
|
359,346 |
|
348,423 |
|
391,224 |
|
| Real
Estate |
|
|
|
|
|
|
|
Construction |
|
1,327,210 |
|
1,229,740 |
|
1,428,165 |
|
1,451,841 |
|
1,596,255 |
|
|
Single-family residential |
|
2,101,136 |
|
1,540,701 |
|
1,608,028 |
|
1,730,056 |
|
1,880,673 |
|
|
Other commercial real estate |
|
5,738,904 |
|
5,308,902 |
|
5,332,655 |
|
5,638,010 |
|
5,746,863 |
|
|
Total real estate |
|
9,167,250 |
|
8,079,343 |
|
8,368,848 |
|
8,819,907 |
|
9,223,791 |
|
|
Commercial |
|
|
|
|
|
|
|
Commercial |
|
1,992,043 |
|
1,821,905 |
|
2,074,729 |
|
2,444,700 |
|
2,574,386 |
|
|
Agricultural |
|
168,717 |
|
216,735 |
|
193,462 |
|
155,921 |
|
175,905 |
|
|
Total commercial |
|
2,160,760 |
|
2,038,640 |
|
2,268,191 |
|
2,600,621 |
|
2,750,291 |
|
| Other |
|
329,123 |
|
348,868 |
|
389,967 |
|
426,922 |
|
535,591 |
|
|
Total loans |
$ |
12,012,503 |
$ |
10,825,227 |
$ |
11,386,352 |
$ |
12,195,873 |
$ |
12,900,897 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Page
5 |
|
| |
|
|
|
|
|
|
|
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) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
| ($
in thousands) |
|
|
|
|
|
|
Allowance for Credit Losses on Loans |
|
|
|
|
|
|
Beginning balance, after adoption of ASC 326 |
$ |
202,508 |
|
$ |
227,239 |
|
$ |
235,116 |
|
$ |
238,050 |
|
$ |
248,251 |
|
| |
|
|
|
|
|
| Day 1 PCD
allowance from acquisitions |
|
|
|
|
|
|
Landmark (10/08/2021) |
|
2,359 |
|
|
|
|
|
|
Triumph (10/08/2021) |
|
11,092 |
|
|
|
|
|
|
Total Day 1 PCD allowance |
|
13,451 |
|
|
|
|
|
| |
|
|
|
|
|
| Loans
charged off |
|
|
|
|
|
|
Credit cards |
|
865 |
|
|
711 |
|
|
1,046 |
|
|
1,003 |
|
|
787 |
|
|
Other consumer |
|
477 |
|
|
463 |
|
|
411 |
|
|
702 |
|
|
960 |
|
|
Real estate |
|
2,624 |
|
|
5,941 |
|
|
439 |
|
|
1,687 |
|
|
10,415 |
|
|
Commercial |
|
8,513 |
|
|
932 |
|
|
309 |
|
|
859 |
|
|
8,199 |
|
|
Total loans charged off |
|
12,479 |
|
|
8,047 |
|
|
2,205 |
|
|
4,251 |
|
|
20,361 |
|
| |
|
|
|
|
|
| Recoveries
of loans previously charged off |
|
|
|
|
|
|
Credit cards |
|
247 |
|
|
267 |
|
|
244 |
|
|
290 |
|
|
241 |
|
|
Other consumer |
|
267 |
|
|
408 |
|
|
425 |
|
|
304 |
|
|
355 |
|
|
Real estate |
|
916 |
|
|
2,068 |
|
|
1,523 |
|
|
403 |
|
|
431 |
|
|
Commercial |
|
1,730 |
|
|
463 |
|
|
2,147 |
|
|
320 |
|
|
1,835 |
|
|
Total recoveries |
|
3,160 |
|
|
3,206 |
|
|
4,339 |
|
|
1,317 |
|
|
2,862 |
|
|
Net loans charged off |
|
9,319 |
|
|
4,841 |
|
|
(2,134 |
) |
|
2,934 |
|
|
17,499 |
|
| Provision
for credit losses on loans |
|
(1,308 |
) |
|
(19,890 |
) |
|
(10,011 |
) |
|
- |
|
|
7,298 |
|
| Balance, end
of quarter |
$ |
205,332 |
|
$ |
202,508 |
|
$ |
227,239 |
|
$ |
235,116 |
|
$ |
238,050 |
|
| |
|
|
|
|
|
|
Non-performing assets |
|
|
|
|
|
|
Non-performing loans |
|
|
|
|
|
|
Nonaccrual loans |
$ |
68,204 |
|
$ |
59,054 |
|
$ |
80,282 |
|
$ |
114,856 |
|
$ |
122,879 |
|
|
Loans past due 90 days or more |
|
349 |
|
|
334 |
|
|
653 |
|
|
635 |
|
|
578 |
|
|
Total non-performing loans |
|
68,553 |
|
|
59,388 |
|
|
80,935 |
|
|
115,491 |
|
|
123,457 |
|
| Other
non-performing assets |
|
|
|
|
|
|
Foreclosed assets and other real estate
owned |
|
6,032 |
|
|
11,759 |
|
|
15,239 |
|
|
11,168 |
|
|
18,393 |
|
|
Other non-performing assets |
|
1,667 |
|
|
1,724 |
|
|
1,062 |
|
|
1,229 |
|
|
2,016 |
|
|
Total other non-performing
assets |
|
7,699 |
|
|
13,483 |
|
|
16,301 |
|
|
12,397 |
|
|
20,409 |
|
|
Total
non-performing assets |
$ |
76,252 |
|
$ |
72,871 |
|
$ |
97,236 |
|
$ |
127,888 |
|
$ |
143,866 |
|
| Performing
TDRs (troubled debt restructurings) |
$ |
4,289 |
|
$ |
4,251 |
|
$ |
4,436 |
|
$ |
3,805 |
|
$ |
3,138 |
|
| |
|
|
|
|
|
|
Ratios |
|
|
|
|
|
| Allowance
for credit losses on loans to total loans |
|
1.71 |
% |
|
1.87 |
% |
|
2.00 |
% |
|
1.93 |
% |
|
1.85 |
% |
| Allowance
for credit losses to non-performing loans |
|
300 |
% |
|
341 |
% |
|
281 |
% |
|
204 |
% |
|
193 |
% |
|
Non-performing loans to total loans |
|
0.57 |
% |
|
0.55 |
% |
|
0.71 |
% |
|
0.95 |
% |
|
0.96 |
% |
|
Non-performing assets (including performing TDRs) |
|
|
|
|
|
|
to total assets |
|
0.33 |
% |
|
0.33 |
% |
|
0.43 |
% |
|
0.56 |
% |
|
0.66 |
% |
|
Non-performing assets to total assets |
|
0.31 |
% |
|
0.31 |
% |
|
0.42 |
% |
|
0.55 |
% |
|
0.64 |
% |
| Annualized
net charge offs to total loans |
|
0.31 |
% |
|
0.17 |
% |
|
-0.07 |
% |
|
0.10 |
% |
|
0.52 |
% |
| Annualized
net credit card charge offs to |
|
|
|
|
|
|
total credit card loans |
|
1.29 |
% |
|
0.96 |
% |
|
1.78 |
% |
|
1.58 |
% |
|
1.15 |
% |
| |
|
|
|
|
|
| |
|
|
|
|
|
| Page
6 |
| |
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
|
|
|
|
|
|
SFNC |
| Consolidated -
Average Balance Sheet and Net Interest Income
Analysis |
|
|
|
|
|
|
| For
the Quarters Ended |
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months
Ended Dec 2021 |
|
Three Months
Ended Sep 2021 |
|
Three Months
Ended Dec 2020 |
| ($
in thousands) |
Average
Balance |
Income/
Expense |
Yield/ Rate |
|
Average
Balance |
Income/
Expense |
Yield/ Rate |
|
Average
Balance |
Income/
Expense |
Yield/
Rate |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
| Earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing balances due from banks |
|
|
|
|
|
|
|
|
|
|
|
|
and federal funds sold |
$ |
1,484,752 |
$ |
583 |
0.16 |
% |
$ |
1,866,530 |
$ |
763 |
0.16 |
% |
$ |
2,651,938 |
$ |
716 |
0.11 |
% |
|
Investment securities - taxable |
|
5,790,429 |
|
17,186 |
1.18 |
% |
|
5,475,932 |
|
17,076 |
1.24 |
% |
|
1,757,234 |
|
7,720 |
1.75 |
% |
|
Investment securities - non-taxable (FTE) |
|
2,787,301 |
|
20,470 |
2.91 |
% |
|
2,496,958 |
|
18,399 |
2.92 |
% |
|
1,528,127 |
|
12,778 |
3.33 |
% |
|
Mortgage loans held for sale |
|
42,866 |
|
310 |
2.87 |
% |
|
32,134 |
|
230 |
2.84 |
% |
|
179,275 |
|
1,070 |
2.37 |
% |
|
Loans - including fees (FTE) |
|
11,924,444 |
|
137,762 |
4.58 |
% |
|
11,030,438 |
|
132,399 |
4.76 |
% |
|
13,457,077 |
|
160,306 |
4.74 |
% |
|
Total interest earning assets
(FTE) |
|
22,029,792 |
|
176,311 |
3.18 |
% |
|
20,901,992 |
|
168,867 |
3.21 |
% |
|
19,573,651 |
|
182,590 |
3.71 |
% |
|
Non-earning assets |
|
2,668,230 |
|
|
|
|
2,353,549 |
|
|
|
|
2,278,443 |
|
|
|
Total assets |
$ |
24,698,022 |
|
|
|
$ |
23,255,541 |
|
|
|
$ |
21,852,094 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
| Interest
bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing transaction and |
|
|
|
|
|
|
|
|
|
|
|
|
savings accounts |
$ |
11,413,325 |
$ |
4,390 |
0.15 |
% |
$ |
10,629,142 |
$ |
4,369 |
0.16 |
% |
$ |
9,389,570 |
$ |
6,536 |
0.28 |
% |
|
Time deposits |
|
2,607,011 |
|
3,705 |
0.56 |
% |
|
2,645,896 |
|
4,747 |
0.71 |
% |
|
2,823,166 |
|
7,835 |
1.10 |
% |
|
Total interest bearing
deposits |
|
14,020,336 |
|
8,095 |
0.23 |
% |
|
13,275,038 |
|
9,116 |
0.27 |
% |
|
12,212,736 |
|
14,371 |
0.47 |
% |
|
Federal funds purchased and securities |
|
|
|
|
|
|
|
|
|
|
|
|
sold under agreement to
repurchase |
|
223,008 |
|
72 |
0.13 |
% |
|
219,604 |
|
70 |
0.13 |
% |
|
340,333 |
|
284 |
0.33 |
% |
|
Other borrowings |
|
1,340,825 |
|
4,903 |
1.45 |
% |
|
1,338,866 |
|
4,893 |
1.45 |
% |
|
1,342,403 |
|
4,869 |
1.44 |
% |
|
Subordinated notes and debentures |
|
383,489 |
|
4,581 |
4.74 |
% |
|
383,213 |
|
4,610 |
4.77 |
% |
|
382,808 |
|
4,624 |
4.81 |
% |
|
Total interest bearing
liabilities |
|
15,967,658 |
|
17,651 |
0.44 |
% |
|
15,216,721 |
|
18,689 |
0.49 |
% |
|
14,278,280 |
|
24,148 |
0.67 |
% |
| Non-interest
bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
5,288,933 |
|
|
|
|
4,803,171 |
|
|
|
|
4,413,168 |
|
|
|
Other liabilities |
|
179,362 |
|
|
|
|
167,677 |
|
|
|
|
204,014 |
|
|
|
Total liabilities |
|
21,435,953 |
|
|
|
|
20,187,569 |
|
|
|
|
18,895,462 |
|
|
|
Stockholders' equity |
|
3,262,069 |
|
|
|
|
3,067,972 |
|
|
|
|
2,956,632 |
|
|
|
Total liabilities and
stockholders' equity |
$ |
24,698,022 |
|
|
|
$ |
23,255,541 |
|
|
|
$ |
21,852,094 |
|
|
| Net interest
income (FTE) |
|
$ |
158,660 |
|
|
|
$ |
150,178 |
|
|
|
$ |
158,442 |
|
| Net interest
spread (FTE) |
|
|
2.74 |
% |
|
|
2.72 |
% |
|
|
3.04 |
% |
| Net interest
margin (FTE) - quarter-to-date |
|
|
2.86 |
% |
|
|
2.85 |
% |
|
|
3.22 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest
margin (FTE) - year-to-date |
|
|
2.89 |
% |
|
|
2.91 |
% |
|
|
3.38 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Page
7 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Simmons First National Corporation |
|
|
|
SFNC |
|
|
Consolidated - Selected Financial Data |
|
|
|
|
|
|
| For
the Quarters Ended |
Dec
31 |
Sep
30 |
Jun
30 |
Mar
31 |
Dec
31 |
|
|
(Unaudited) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
| ($
in thousands, except share data) |
|
|
|
|
|
|
|
QUARTER-TO-DATE |
|
|
|
|
|
|
|
Financial Highlights - GAAP |
|
|
|
|
|
|
|
Net Income |
$ |
48,230 |
|
$ |
80,561 |
|
$ |
74,911 |
|
$ |
67,407 |
|
$ |
52,955 |
|
|
|
Diluted earnings per share |
|
0.42 |
|
|
0.74 |
|
|
0.69 |
|
|
0.62 |
|
|
0.49 |
|
|
|
Return on average assets |
|
0.77 |
% |
|
1.37 |
% |
|
1.29 |
% |
|
1.20 |
% |
|
0.96 |
% |
|
|
Return on average common equity |
|
5.87 |
% |
|
10.42 |
% |
|
10.08 |
% |
|
9.20 |
% |
|
7.13 |
% |
|
|
Return on tangible common equity |
|
9.98 |
% |
|
17.43 |
% |
|
17.25 |
% |
|
15.85 |
% |
|
12.48 |
% |
|
|
Net interest margin (FTE) |
|
2.86 |
% |
|
2.85 |
% |
|
2.89 |
% |
|
2.99 |
% |
|
3.22 |
% |
|
|
FTE adjustment |
|
5,579 |
|
|
4,941 |
|
|
4,548 |
|
|
4,163 |
|
|
3,482 |
|
|
|
Average diluted shares outstanding |
|
114,491,119 |
|
|
108,359,890 |
|
|
108,822,175 |
|
|
108,655,293 |
|
|
108,888,264 |
|
|
|
Shares repurchased under plan |
|
2,625,348 |
|
|
1,806,205 |
|
|
- |
|
|
130,916 |
|
|
1,034,364 |
|
|
|
Average price of shares repurchased |
|
29.69 |
|
|
28.48 |
|
|
- |
|
|
23.53 |
|
|
19.36 |
|
|
|
Cash dividends declared per common share |
|
0.18 |
|
|
0.18 |
|
|
0.18 |
|
|
0.18 |
|
|
0.17 |
|
|
|
Financial Highlights - Core (non-GAAP) |
|
|
|
|
|
|
|
Core earnings (excludes non-core items) (1) |
$ |
59,486 |
|
$ |
79,350 |
|
$ |
75,435 |
|
$ |
63,995 |
|
$ |
61,977 |
|
|
|
Core diluted earnings per share (1) |
|
0.52 |
|
|
0.73 |
|
|
0.69 |
|
|
0.59 |
|
|
0.57 |
|
|
|
Accretable yield on acquired loans |
|
5,758 |
|
|
4,122 |
|
|
5,619 |
|
|
6,630 |
|
|
8,999 |
|
|
|
Efficiency ratio (1) |
|
59.48 |
% |
|
58.10 |
% |
|
56.75 |
% |
|
57.25 |
% |
|
54.75 |
% |
|
|
Core return on average assets (1) |
|
0.96 |
% |
|
1.35 |
% |
|
1.30 |
% |
|
1.14 |
% |
|
1.13 |
% |
|
|
Core return on average common equity (1) |
|
7.24 |
% |
|
10.26 |
% |
|
10.15 |
% |
|
8.73 |
% |
|
8.34 |
% |
|
|
Core return on tangible common equity (1) |
|
12.19 |
% |
|
17.18 |
% |
|
17.36 |
% |
|
15.08 |
% |
|
14.51 |
% |
|
|
YEAR-TO-DATE |
|
|
|
|
|
|
|
Financial Highlights - GAAP |
|
|
|
|
|
|
|
Net Income |
$ |
271,109 |
|
$ |
222,879 |
|
$ |
142,318 |
|
$ |
67,407 |
|
$ |
254,852 |
|
|
|
Diluted earnings per share |
|
2.46 |
|
|
2.05 |
|
|
1.31 |
|
|
0.62 |
|
|
2.31 |
|
|
|
Return on average assets |
|
1.15 |
% |
|
1.29 |
% |
|
1.25 |
% |
|
1.20 |
% |
|
1.18 |
% |
|
|
Return on average common equity |
|
8.83 |
% |
|
9.91 |
% |
|
9.64 |
% |
|
9.20 |
% |
|
8.72 |
% |
|
|
Return on tangible common equity |
|
14.99 |
% |
|
16.86 |
% |
|
16.56 |
% |
|
15.85 |
% |
|
15.25 |
% |
|
|
Net interest margin (FTE) |
|
2.89 |
% |
|
2.91 |
% |
|
2.94 |
% |
|
2.99 |
% |
|
3.38 |
% |
|
|
FTE adjustment |
|
19,231 |
|
|
13,652 |
|
|
8,711 |
|
|
4,163 |
|
|
11,001 |
|
|
|
Average diluted shares outstanding |
|
110,198,094 |
|
|
108,667,928 |
|
|
108,746,439 |
|
|
108,655,293 |
|
|
110,173,661 |
|
|
|
Cash dividends declared per common share |
|
0.72 |
|
|
0.54 |
|
|
0.36 |
|
|
0.18 |
|
|
0.68 |
|
|
|
Financial Highlights - Core (non-GAAP) |
|
|
|
|
|
|
|
Core earnings (excludes non-core items) (1) |
$ |
278,266 |
|
$ |
218,780 |
|
$ |
139,430 |
|
$ |
63,995 |
|
$ |
264,300 |
|
|
|
Core diluted earnings per share (1) |
|
2.53 |
|
|
2.01 |
|
|
1.28 |
|
|
0.59 |
|
|
2.40 |
|
|
|
Accretable yield on acquired loans |
|
22,129 |
|
|
16,371 |
|
|
12,249 |
|
|
6,630 |
|
|
41,507 |
|
|
|
Efficiency ratio (1) |
|
57.92 |
% |
|
57.37 |
% |
|
57.00 |
% |
|
57.25 |
% |
|
54.18 |
% |
|
|
Core return on average assets (1) |
|
1.18 |
% |
|
1.27 |
% |
|
1.22 |
% |
|
1.14 |
% |
|
1.22 |
% |
|
|
Core return on average common equity (1) |
|
9.06 |
% |
|
9.73 |
% |
|
9.45 |
% |
|
8.73 |
% |
|
9.05 |
% |
|
|
Core return on tangible common equity (1) |
|
15.38 |
% |
|
16.56 |
% |
|
16.23 |
% |
|
15.08 |
% |
|
15.79 |
% |
|
| END
OF PERIOD |
|
|
|
|
|
|
|
Book value per share |
$ |
28.82 |
|
$ |
28.42 |
|
$ |
28.03 |
|
$ |
27.04 |
|
$ |
27.53 |
|
|
|
Tangible book value per share |
|
17.71 |
|
|
17.39 |
|
|
17.16 |
|
|
16.13 |
|
|
16.56 |
|
|
|
Shares outstanding |
|
112,715,444 |
|
|
106,603,231 |
|
|
108,386,669 |
|
|
108,345,732 |
|
|
108,077,662 |
|
|
|
Full-time equivalent employees |
|
2,877 |
|
|
2,740 |
|
|
2,783 |
|
|
2,817 |
|
|
2,827 |
|
|
|
Total number of financial centers |
|
199 |
|
|
185 |
|
|
198 |
|
|
198 |
|
|
204 |
|
|
| |
|
|
|
|
|
|
| (1) Core earnings
exclude non-core items, which is a non-GAAP measurement.
Reconciliations to GAAP are included in the |
|
| schedules
accompanying this release. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Page
8 |
|
| |
|
|
|
|
|
|
|
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) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
| ($
in thousands, except per share data) |
|
|
|
|
|
|
QUARTER-TO-DATE |
|
|
|
|
|
| Net
Income |
$ |
48,230 |
|
$ |
80,561 |
|
$ |
74,911 |
|
$ |
67,407 |
|
$ |
52,955 |
|
|
Non-core items |
|
|
|
|
|
|
Gain on sale of branches |
|
- |
|
|
- |
|
|
(16 |
) |
|
(5,300 |
) |
|
(275 |
) |
|
Merger-related costs |
|
13,591 |
|
|
1,401 |
|
|
686 |
|
|
233 |
|
|
731 |
|
|
Early retirement program |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
62 |
|
|
Branch right-sizing (net) |
|
1,648 |
|
|
(3,041 |
) |
|
39 |
|
|
448 |
|
|
11,696 |
|
|
Tax effect (1) |
|
(3,983 |
) |
|
429 |
|
|
(185 |
) |
|
1,207 |
|
|
(3,192 |
) |
|
Net non-core items |
|
11,256 |
|
|
(1,211 |
) |
|
524 |
|
|
(3,412 |
) |
|
9,022 |
|
| Core
earnings (non-GAAP) |
$ |
59,486 |
|
$ |
79,350 |
|
$ |
75,435 |
|
$ |
63,995 |
|
$ |
61,977 |
|
| |
|
|
|
|
|
| Diluted
earnings per share |
$ |
0.42 |
|
$ |
0.74 |
|
$ |
0.69 |
|
$ |
0.62 |
|
$ |
0.49 |
|
|
Non-core items |
|
|
|
|
|
|
Gain on sale of branches |
|
- |
|
|
- |
|
|
- |
|
|
(0.05 |
) |
|
- |
|
|
Merger-related costs |
|
0.12 |
|
|
0.01 |
|
|
0.01 |
|
|
- |
|
|
- |
|
|
Early retirement program |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
Branch right-sizing (net) |
|
0.01 |
|
|
(0.03 |
) |
|
- |
|
|
0.01 |
|
|
0.11 |
|
|
Tax effect (1) |
|
(0.03 |
) |
|
0.01 |
|
|
(0.01 |
) |
|
0.01 |
|
|
(0.03 |
) |
|
Net non-core items |
|
0.10 |
|
|
(0.01 |
) |
|
- |
|
|
(0.03 |
) |
|
0.08 |
|
| Core diluted
earnings per share (non-GAAP) |
$ |
0.52 |
|
$ |
0.73 |
|
$ |
0.69 |
|
$ |
0.59 |
|
$ |
0.57 |
|
| |
|
|
|
|
|
| (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 |
$ |
9,965 |
|
$ |
6,411 |
|
$ |
8,397 |
|
$ |
10,500 |
|
$ |
11,041 |
|
|
Non-core items (1) |
|
(2 |
) |
|
239 |
|
|
(445 |
) |
|
(5,477 |
) |
|
(275 |
) |
|
Core other income (non-GAAP) |
$ |
9,963 |
|
$ |
6,650 |
|
$ |
7,952 |
|
$ |
5,023 |
|
$ |
10,766 |
|
| |
|
|
|
|
|
|
Non-interest expense |
$ |
141,597 |
|
$ |
114,333 |
|
$ |
114,657 |
|
$ |
113,002 |
|
$ |
125,840 |
|
|
Non-core items (1) |
|
(15,241 |
) |
|
1,879 |
|
|
(1,154 |
) |
|
(858 |
) |
|
(12,489 |
) |
|
Core non-interest expense (non-GAAP) |
$ |
126,356 |
|
$ |
116,212 |
|
$ |
113,503 |
|
$ |
112,144 |
|
$ |
113,351 |
|
| |
|
|
|
|
|
|
Salaries and employee benefits |
$ |
63,832 |
|
$ |
61,902 |
|
$ |
60,261 |
|
$ |
60,340 |
|
$ |
55,762 |
|
|
Non-core items (1) |
|
- |
|
|
(66 |
) |
|
- |
|
|
- |
|
|
(144 |
) |
|
Core salaries and employee benefits
(non-GAAP) |
$ |
63,832 |
|
$ |
61,836 |
|
$ |
60,261 |
|
$ |
60,340 |
|
$ |
55,618 |
|
| |
|
|
|
|
|
|
Merger related costs |
$ |
13,591 |
|
$ |
1,401 |
|
$ |
686 |
|
$ |
233 |
|
$ |
731 |
|
|
Non-core items (1) |
|
(13,591 |
) |
|
(1,401 |
) |
|
(686 |
) |
|
(233 |
) |
|
(731 |
) |
|
Core merger related costs (non-GAAP) |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
| |
|
|
|
|
|
|
Other operating expenses |
$ |
45,736 |
|
$ |
34,565 |
|
$ |
37,198 |
|
$ |
36,063 |
|
$ |
52,047 |
|
|
Non-core items (1) |
|
96 |
|
|
3,759 |
|
|
(89 |
) |
|
(208 |
) |
|
(10,270 |
) |
|
Core other operating expenses (non-GAAP) |
$ |
45,832 |
|
$ |
38,324 |
|
$ |
37,109 |
|
$ |
35,855 |
|
$ |
41,777 |
|
| |
|
|
|
|
|
| (1) Non-core items
include gain on sale of branches, merger related costs, early
retirement program expenses and |
| branch
right-sizing costs. |
|
|
|
|
|
| |
|
|
|
|
|
| Page
9 |
|
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) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
| ($
in thousands, except per share data) |
|
|
|
|
|
|
YEAR-TO-DATE |
|
|
|
|
|
| Net
Income |
$ |
271,109 |
|
$ |
222,879 |
|
$ |
142,318 |
|
$ |
67,407 |
|
$ |
254,852 |
|
|
Non-core items |
|
|
|
|
|
|
Gain on sale of branches |
|
(5,316 |
) |
|
(5,316 |
) |
|
(5,316 |
) |
|
(5,300 |
) |
|
(8,368 |
) |
|
Merger-related costs |
|
15,911 |
|
|
2,320 |
|
|
919 |
|
|
233 |
|
|
4,531 |
|
|
Early retirement program |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
2,901 |
|
|
Branch right-sizing (net) |
|
(906 |
) |
|
(2,554 |
) |
|
487 |
|
|
448 |
|
|
13,727 |
|
|
Tax effect (1) |
|
(2,532 |
) |
|
1,451 |
|
|
1,022 |
|
|
1,207 |
|
|
(3,343 |
) |
|
Net non-core items |
|
7,157 |
|
|
(4,099 |
) |
|
(2,888 |
) |
|
(3,412 |
) |
|
9,448 |
|
| Core
earnings (non-GAAP) |
$ |
278,266 |
|
$ |
218,780 |
|
$ |
139,430 |
|
$ |
63,995 |
|
$ |
264,300 |
|
| |
|
|
|
|
|
| Diluted
earnings per share |
$ |
2.46 |
|
$ |
2.05 |
|
$ |
1.31 |
|
$ |
0.62 |
|
$ |
2.31 |
|
|
Non-core items |
|
|
|
|
|
|
Gain on sale of branches |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|
(0.07 |
) |
|
Merger-related costs |
|
0.15 |
|
|
0.02 |
|
|
0.01 |
|
|
- |
|
|
0.04 |
|
|
Early retirement program |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
0.03 |
|
|
Branch right-sizing (net) |
|
(0.01 |
) |
|
(0.02 |
) |
|
- |
|
|
0.01 |
|
|
0.12 |
|
|
Tax effect (1) |
|
(0.02 |
) |
|
0.01 |
|
|
0.01 |
|
|
0.01 |
|
|
(0.03 |
) |
|
Net non-core items |
|
0.07 |
|
|
(0.04 |
) |
|
(0.03 |
) |
|
(0.03 |
) |
|
0.09 |
|
| Core diluted
earnings per share (non-GAAP) |
$ |
2.53 |
|
$ |
2.01 |
|
$ |
1.28 |
|
$ |
0.59 |
|
$ |
2.40 |
|
| |
|
|
|
|
|
| (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 |
$ |
35,273 |
|
$ |
25,308 |
|
$ |
18,897 |
|
$ |
10,500 |
|
$ |
39,876 |
|
|
Non-core items (1) |
|
(5,685 |
) |
|
(5,683 |
) |
|
(5,922 |
) |
|
(5,477 |
) |
|
(8,738 |
) |
|
Core other income (non-GAAP) |
$ |
29,588 |
|
$ |
19,625 |
|
$ |
12,975 |
|
$ |
5,023 |
|
$ |
31,138 |
|
| |
|
|
|
|
|
|
Non-interest expense |
$ |
483,589 |
|
$ |
341,992 |
|
$ |
227,659 |
|
$ |
113,002 |
|
$ |
484,736 |
|
|
Non-core items (1) |
|
(15,374 |
) |
|
(133 |
) |
|
(2,012 |
) |
|
(858 |
) |
|
(21,529 |
) |
|
Core non-interest expense (non-GAAP) |
$ |
468,215 |
|
$ |
341,859 |
|
$ |
225,647 |
|
$ |
112,144 |
|
$ |
463,207 |
|
| |
|
|
|
|
|
|
Salaries and employee benefits |
$ |
246,335 |
|
$ |
182,503 |
|
$ |
120,601 |
|
$ |
60,340 |
|
$ |
242,474 |
|
|
Non-core items (1) |
|
(66 |
) |
|
(66 |
) |
|
- |
|
|
- |
|
|
(3,085 |
) |
|
Core salaries and employee benefits
(non-GAAP) |
$ |
246,269 |
|
$ |
182,437 |
|
$ |
120,601 |
|
$ |
60,340 |
|
$ |
239,389 |
|
| |
|
|
|
|
|
|
Merger related costs |
$ |
15,911 |
|
$ |
2,320 |
|
$ |
919 |
|
$ |
233 |
|
$ |
4,531 |
|
|
Non-core items (1) |
|
(15,911 |
) |
|
(2,320 |
) |
|
(919 |
) |
|
(233 |
) |
|
(4,531 |
) |
|
Core merger related costs (non-GAAP) |
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
| |
|
|
|
|
|
|
Other operating expenses |
$ |
153,562 |
|
$ |
107,826 |
|
$ |
73,261 |
|
$ |
36,063 |
|
$ |
165,201 |
|
|
Non-core items (1) |
|
3,558 |
|
|
3,462 |
|
|
(297 |
) |
|
(208 |
) |
|
(12,155 |
) |
|
Core other operating expenses (non-GAAP) |
$ |
157,120 |
|
$ |
111,288 |
|
$ |
72,964 |
|
$ |
35,855 |
|
$ |
153,046 |
|
| |
|
|
|
|
|
| (1) Non-core items
include gain on sale of branches, merger related costs, early
retirement program expenses and |
| branch
right-sizing costs. |
|
|
|
|
|
| |
|
|
|
|
|
| Page
10 |
|
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) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
| ($
in thousands, except per share data) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Calculation of
Tangible Common Equity and the Ratio of Tangible Common Equity to
Tangible Assets |
|
|
|
| |
|
|
|
|
|
|
| Total common
stockholders' equity |
$ |
3,248,841 |
|
$ |
3,029,764 |
|
$ |
3,038,599 |
|
$ |
2,930,008 |
|
$ |
2,975,889 |
|
|
| Intangible
assets: |
|
|
|
|
|
|
|
Goodwill |
|
(1,146,007 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
|
Other intangible assets |
|
(106,235 |
) |
|
(100,428 |
) |
|
(103,759 |
) |
|
(107,091 |
) |
|
(111,110 |
) |
|
| Total
intangibles |
|
(1,252,242 |
) |
|
(1,175,733 |
) |
|
(1,179,064 |
) |
|
(1,182,396 |
) |
|
(1,186,415 |
) |
|
| Tangible
common stockholders' equity |
$ |
1,996,599 |
|
$ |
1,854,031 |
|
$ |
1,859,535 |
|
$ |
1,747,612 |
|
$ |
1,789,474 |
|
|
| |
|
|
|
|
|
|
| Total
assets |
$ |
24,724,759 |
|
$ |
23,225,930 |
|
$ |
23,423,159 |
|
$ |
23,348,117 |
|
$ |
22,359,752 |
|
|
| Intangible
assets: |
|
|
|
|
|
|
|
Goodwill |
|
(1,146,007 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
|
Other intangible assets |
|
(106,235 |
) |
|
(100,428 |
) |
|
(103,759 |
) |
|
(107,091 |
) |
|
(111,110 |
) |
|
| Total
intangibles |
|
(1,252,242 |
) |
|
(1,175,733 |
) |
|
(1,179,064 |
) |
|
(1,182,396 |
) |
|
(1,186,415 |
) |
|
| Tangible
assets |
$ |
23,472,517 |
|
$ |
22,050,197 |
|
$ |
22,244,095 |
|
$ |
22,165,721 |
|
$ |
21,173,337 |
|
|
| |
|
|
|
|
|
|
| Paycheck
protection program ("PPP") loans |
|
(116,659 |
) |
|
(212,087 |
) |
|
(441,353 |
) |
|
(797,629 |
) |
|
(904,673 |
) |
|
| Total assets
excluding PPP loans |
$ |
24,608,100 |
|
$ |
23,013,843 |
|
$ |
22,981,806 |
|
$ |
22,550,488 |
|
$ |
21,455,079 |
|
|
| Tangible
assets excluding PPP loans |
$ |
23,355,858 |
|
$ |
21,838,110 |
|
$ |
21,802,742 |
|
$ |
21,368,092 |
|
$ |
20,268,664 |
|
|
| |
|
|
|
|
|
|
| Ratio of
common equity to assets |
|
13.14 |
% |
|
13.04 |
% |
|
12.97 |
% |
|
12.55 |
% |
|
13.31 |
% |
|
| Ratio of
common equity to assets excluding PPP loans |
|
13.20 |
% |
|
13.16 |
% |
|
13.22 |
% |
|
12.99 |
% |
|
13.87 |
% |
|
| Ratio of
tangible common equity to tangible assets |
|
8.51 |
% |
|
8.41 |
% |
|
8.36 |
% |
|
7.88 |
% |
|
8.45 |
% |
|
| Ratio of
tangible common equity to tangible assets excluding PPP loans |
|
8.55 |
% |
|
8.49 |
% |
|
8.53 |
% |
|
8.18 |
% |
|
8.83 |
% |
|
| |
|
|
|
|
|
|
|
Calculation of Tangible Book Value per Share |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Total common
stockholders' equity |
$ |
3,248,841 |
|
$ |
3,029,764 |
|
$ |
3,038,599 |
|
$ |
2,930,008 |
|
$ |
2,975,889 |
|
|
| Intangible
assets: |
|
|
|
|
|
|
|
Goodwill |
|
(1,146,007 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
|
Other intangible assets |
|
(106,235 |
) |
|
(100,428 |
) |
|
(103,759 |
) |
|
(107,091 |
) |
|
(111,110 |
) |
|
| Total
intangibles |
|
(1,252,242 |
) |
|
(1,175,733 |
) |
|
(1,179,064 |
) |
|
(1,182,396 |
) |
|
(1,186,415 |
) |
|
| Tangible
common stockholders' equity |
$ |
1,996,599 |
|
$ |
1,854,031 |
|
$ |
1,859,535 |
|
$ |
1,747,612 |
|
$ |
1,789,474 |
|
|
| Shares of
common stock outstanding |
|
112,715,444 |
|
|
106,603,231 |
|
|
108,386,669 |
|
|
108,345,732 |
|
|
108,077,662 |
|
|
| Book value
per common share |
$ |
28.82 |
|
$ |
28.42 |
|
$ |
28.03 |
|
$ |
27.04 |
|
$ |
27.53 |
|
|
| Tangible
book value per common share |
$ |
17.71 |
|
$ |
17.39 |
|
$ |
17.16 |
|
$ |
16.13 |
|
$ |
16.56 |
|
|
| |
|
|
|
|
|
|
| Page
11 |
|
|
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) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
| ($
in thousands) |
|
|
|
|
|
|
|
Calculation of Core Return on Average Assets |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Net
income |
$ |
48,230 |
|
$ |
80,561 |
|
$ |
74,911 |
|
$ |
67,407 |
|
$ |
52,955 |
|
|
| Net non-core
items, net of taxes, adjustment |
|
11,256 |
|
|
(1,211 |
) |
|
524 |
|
|
(3,412 |
) |
|
9,022 |
|
|
| Core
earnings |
$ |
59,486 |
|
$ |
79,350 |
|
$ |
75,435 |
|
$ |
63,995 |
|
$ |
61,977 |
|
|
| |
|
|
|
|
|
|
| Average
total assets |
$ |
24,698,022 |
|
$ |
23,255,541 |
|
$ |
23,257,921 |
|
$ |
22,738,821 |
|
$ |
21,852,094 |
|
|
| |
|
|
|
|
|
|
| Return on
average assets |
|
0.77 |
% |
|
1.37 |
% |
|
1.29 |
% |
|
1.20 |
% |
|
0.96 |
% |
|
| Core return
on average assets |
|
0.96 |
% |
|
1.35 |
% |
|
1.30 |
% |
|
1.14 |
% |
|
1.13 |
% |
|
| |
|
|
|
|
|
|
|
Calculation of Return on Tangible Common
Equity |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Net
income |
$ |
48,230 |
|
$ |
80,561 |
|
$ |
74,911 |
|
$ |
67,407 |
|
$ |
52,955 |
|
|
| Amortization
of intangibles, net of taxes |
|
2,575 |
|
|
2,460 |
|
|
2,462 |
|
|
2,470 |
|
|
2,475 |
|
|
| Total income
available to common stockholders |
$ |
50,805 |
|
$ |
83,021 |
|
$ |
77,373 |
|
$ |
69,877 |
|
$ |
55,430 |
|
|
| |
|
|
|
|
|
|
| Net non-core
items, net of taxes |
|
11,256 |
|
|
(1,211 |
) |
|
524 |
|
|
(3,412 |
) |
|
9,022 |
|
|
| Core
earnings |
|
59,486 |
|
|
79,350 |
|
|
75,435 |
|
|
63,995 |
|
|
61,977 |
|
|
| Amortization
of intangibles, net of taxes |
|
2,575 |
|
|
2,460 |
|
|
2,462 |
|
|
2,470 |
|
|
2,475 |
|
|
| Total core
income available to common stockholders |
$ |
62,061 |
|
$ |
81,810 |
|
$ |
77,897 |
|
$ |
66,465 |
|
$ |
64,452 |
|
|
| |
|
|
|
|
|
|
| Average
common stockholders' equity |
$ |
3,261,627 |
|
$ |
3,067,205 |
|
$ |
2,980,609 |
|
$ |
2,972,689 |
|
$ |
2,955,865 |
|
|
| Average
intangible assets: |
|
|
|
|
|
|
|
Goodwill |
|
(1,137,441 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
|
Other intangibles |
|
(105,155 |
) |
|
(102,576 |
) |
|
(105,785 |
) |
|
(109,850 |
) |
|
(113,098 |
) |
|
| Total
average intangibles |
|
(1,242,596 |
) |
|
(1,177,881 |
) |
|
(1,181,090 |
) |
|
(1,185,155 |
) |
|
(1,188,403 |
) |
|
| Average
tangible common stockholders' equity |
$ |
2,019,031 |
|
$ |
1,889,324 |
|
$ |
1,799,519 |
|
$ |
1,787,534 |
|
$ |
1,767,462 |
|
|
| |
|
|
|
|
|
|
| Return on
average common equity |
|
5.87 |
% |
|
10.42 |
% |
|
10.08 |
% |
|
9.20 |
% |
|
7.13 |
% |
|
| Return on
tangible common equity |
|
9.98 |
% |
|
17.43 |
% |
|
17.25 |
% |
|
15.85 |
% |
|
12.48 |
% |
|
| Core return
on average common equity |
|
7.24 |
% |
|
10.26 |
% |
|
10.15 |
% |
|
8.73 |
% |
|
8.34 |
% |
|
| Core return
on tangible common equity |
|
12.19 |
% |
|
17.18 |
% |
|
17.36 |
% |
|
15.08 |
% |
|
14.51 |
% |
|
| |
|
|
|
|
|
|
|
Calculation of Efficiency Ratio
(1) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Non-interest
expense |
$ |
141,597 |
|
$ |
114,333 |
|
$ |
114,657 |
|
$ |
113,002 |
|
$ |
125,840 |
|
|
| Non-core
non-interest expense adjustment |
|
(15,241 |
) |
|
1,879 |
|
|
(1,154 |
) |
|
(858 |
) |
|
(12,489 |
) |
|
| Other real
estate and foreclosure expense adjustment |
|
(576 |
) |
|
(339 |
) |
|
(863 |
) |
|
(343 |
) |
|
(545 |
) |
|
| Amortization
of intangibles adjustment |
|
(3,486 |
) |
|
(3,331 |
) |
|
(3,333 |
) |
|
(3,344 |
) |
|
(3,351 |
) |
|
| Efficiency
ratio numerator |
$ |
122,294 |
|
$ |
112,542 |
|
$ |
109,307 |
|
$ |
108,457 |
|
$ |
109,455 |
|
|
| |
|
|
|
|
|
|
| Net-interest
income |
$ |
153,081 |
|
$ |
145,237 |
|
$ |
146,533 |
|
$ |
146,681 |
|
$ |
154,960 |
|
|
| Non-interest
income |
|
46,601 |
|
|
48,550 |
|
|
47,115 |
|
|
49,549 |
|
|
41,761 |
|
|
| Non-core
non-interest income adjustment |
|
(2 |
) |
|
239 |
|
|
(445 |
) |
|
(5,477 |
) |
|
(275 |
) |
|
| Fully
tax-equivalent adjustment (effective tax rate of 26.135%) |
|
5,579 |
|
|
4,941 |
|
|
4,548 |
|
|
4,163 |
|
|
3,482 |
|
|
| Loss (gain)
on sale of securities |
|
348 |
|
|
(5,248 |
) |
|
(5,127 |
) |
|
(5,471 |
) |
|
(16 |
) |
|
| Efficiency
ratio denominator |
$ |
205,607 |
|
$ |
193,719 |
|
$ |
192,624 |
|
$ |
189,445 |
|
$ |
199,912 |
|
|
| |
|
|
|
|
|
|
| Efficiency
ratio (1) |
|
59.48 |
% |
|
58.10 |
% |
|
56.75 |
% |
|
57.25 |
% |
|
54.75 |
% |
|
| |
|
|
|
|
|
|
| (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. |
|
|
| |
|
|
|
|
|
|
| Page
12 |
|
|
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) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
| ($
in thousands) |
|
|
|
|
|
|
|
Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP)
Earnings |
|
|
|
|
|
| |
|
|
|
|
|
|
| Net income
available to common stockholders |
$ |
48,230 |
|
$ |
80,561 |
|
$ |
74,911 |
|
$ |
67,407 |
|
$ |
52,955 |
|
|
| Provision
for income taxes |
|
11,155 |
|
|
18,770 |
|
|
17,018 |
|
|
14,363 |
|
|
10,970 |
|
|
| Provision
for credit losses (including provision for unfunded
commitments) |
|
(1,308 |
) |
|
(19,890 |
) |
|
(12,951 |
) |
|
1,445 |
|
|
6,943 |
|
|
| Loss (gain)
on sale of securities |
|
348 |
|
|
(5,248 |
) |
|
(5,127 |
) |
|
(5,471 |
) |
|
(16 |
) |
|
| Net pre-tax
non-core items |
|
15,239 |
|
|
(1,640 |
) |
|
709 |
|
|
(4,619 |
) |
|
12,214 |
|
|
| Adjusted
Pre-tax, pre-provision (PTPP) earnings |
$ |
73,664 |
|
$ |
72,553 |
|
$ |
74,560 |
|
$ |
73,125 |
|
$ |
83,066 |
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Page
13 |
|
|
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) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
| ($
in thousands) |
|
|
|
|
|
|
Calculation of Core Return on Average Assets |
|
|
|
|
|
| |
|
|
|
|
|
| Net
income |
$ |
271,109 |
|
$ |
222,879 |
|
$ |
142,318 |
|
$ |
67,407 |
|
$ |
254,852 |
|
| Net non-core
items, net of taxes, adjustment |
|
7,157 |
|
|
(4,099 |
) |
|
(2,888 |
) |
|
(3,412 |
) |
|
9,448 |
|
| Core
earnings |
$ |
278,266 |
|
$ |
218,780 |
|
$ |
139,430 |
|
$ |
63,995 |
|
$ |
264,300 |
|
| |
|
|
|
|
|
| Average
total assets |
$ |
23,492,308 |
|
$ |
23,085,987 |
|
$ |
22,999,805 |
|
$ |
22,738,821 |
|
$ |
21,590,745 |
|
| |
|
|
|
|
|
| Return on
average assets |
|
1.15 |
% |
|
1.29 |
% |
|
1.25 |
% |
|
1.20 |
% |
|
1.18 |
% |
| Core return
on average assets |
|
1.18 |
% |
|
1.27 |
% |
|
1.22 |
% |
|
1.14 |
% |
|
1.22 |
% |
| |
|
|
|
|
|
|
Calculation of Return on Tangible Common
Equity |
|
|
|
|
|
| |
|
|
|
|
|
| Net
income |
$ |
271,109 |
|
$ |
222,879 |
|
$ |
142,318 |
|
$ |
67,407 |
|
$ |
254,852 |
|
| Amortization
of intangibles, net of taxes |
|
9,967 |
|
|
7,392 |
|
|
4,932 |
|
|
2,470 |
|
|
9,968 |
|
| Total income
available to common stockholders |
$ |
281,076 |
|
$ |
230,271 |
|
$ |
147,250 |
|
$ |
69,877 |
|
$ |
264,820 |
|
| |
|
|
|
|
|
| Net non-core
items, net of taxes |
|
7,157 |
|
|
(4,099 |
) |
|
(2,888 |
) |
|
(3,412 |
) |
|
9,448 |
|
| Core
earnings |
|
278,266 |
|
|
218,780 |
|
|
139,430 |
|
|
63,995 |
|
|
264,300 |
|
| Amortization
of intangibles, net of taxes |
|
9,967 |
|
|
7,392 |
|
|
4,932 |
|
|
2,470 |
|
|
9,968 |
|
| Total core
income available to common stockholders |
$ |
288,233 |
|
$ |
226,172 |
|
$ |
144,362 |
|
$ |
66,465 |
|
$ |
274,268 |
|
| |
|
|
|
|
|
| Average
common stockholders' equity |
$ |
3,071,313 |
|
$ |
3,007,181 |
|
$ |
2,976,671 |
|
$ |
2,972,689 |
|
$ |
2,921,039 |
|
| Average
intangible assets: |
|
|
|
|
|
|
Goodwill |
|
(1,090,967 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
(1,075,305 |
) |
|
(1,065,190 |
) |
|
Other intangibles |
|
(105,820 |
) |
|
(106,043 |
) |
|
(107,806 |
) |
|
(109,850 |
) |
|
(118,812 |
) |
| Total
average intangibles |
|
(1,196,787 |
) |
|
(1,181,348 |
) |
|
(1,183,111 |
) |
|
(1,185,155 |
) |
|
(1,184,002 |
) |
| Average
tangible common stockholders' equity |
$ |
1,874,526 |
|
$ |
1,825,833 |
|
$ |
1,793,560 |
|
$ |
1,787,534 |
|
$ |
1,737,037 |
|
| |
|
|
|
|
|
| Return on
average common equity |
|
8.83 |
% |
|
9.91 |
% |
|
9.64 |
% |
|
9.20 |
% |
|
8.72 |
% |
| Return on
tangible common equity |
|
14.99 |
% |
|
16.86 |
% |
|
16.56 |
% |
|
15.85 |
% |
|
15.25 |
% |
| Core return
on average common equity |
|
9.06 |
% |
|
9.73 |
% |
|
9.45 |
% |
|
8.73 |
% |
|
9.05 |
% |
| Core return
on tangible common equity |
|
15.38 |
% |
|
16.56 |
% |
|
16.23 |
% |
|
15.08 |
% |
|
15.79 |
% |
| |
|
|
|
|
|
|
Calculation of Efficiency Ratio
(1) |
|
|
|
|
|
| |
|
|
|
|
|
| Non-interest
expense |
$ |
483,589 |
|
$ |
341,992 |
|
$ |
227,659 |
|
$ |
113,002 |
|
$ |
484,736 |
|
| Non-core
non-interest expense adjustment |
|
(15,374 |
) |
|
(133 |
) |
|
(2,012 |
) |
|
(858 |
) |
|
(21,529 |
) |
| Other real
estate and foreclosure expense adjustment |
|
(2,121 |
) |
|
(1,545 |
) |
|
(1,206 |
) |
|
(343 |
) |
|
(1,706 |
) |
| Amortization
of intangibles adjustment |
|
(13,494 |
) |
|
(10,008 |
) |
|
(6,677 |
) |
|
(3,344 |
) |
|
(13,495 |
) |
| Efficiency
ratio numerator |
$ |
452,600 |
|
$ |
330,306 |
|
$ |
217,764 |
|
$ |
108,457 |
|
$ |
448,006 |
|
| |
|
|
|
|
|
| Net-interest
income |
$ |
591,532 |
|
$ |
438,451 |
|
$ |
293,214 |
|
$ |
146,681 |
|
$ |
639,734 |
|
| Non-interest
income |
|
191,815 |
|
|
145,214 |
|
|
96,664 |
|
|
49,549 |
|
|
239,769 |
|
| Non-core
non-interest income adjustment |
|
(5,685 |
) |
|
(5,683 |
) |
|
(5,922 |
) |
|
(5,477 |
) |
|
(8,738 |
) |
| Fully
tax-equivalent adjustment (effective tax rate of 26.135%) |
|
19,231 |
|
|
13,652 |
|
|
8,711 |
|
|
4,163 |
|
|
11,001 |
|
| Gain on sale
of securities |
|
(15,498 |
) |
|
(15,846 |
) |
|
(10,598 |
) |
|
(5,471 |
) |
|
(54,806 |
) |
| Efficiency
ratio denominator |
$ |
781,395 |
|
$ |
575,788 |
|
$ |
382,069 |
|
$ |
189,445 |
|
$ |
826,960 |
|
| |
|
|
|
|
|
| Efficiency
ratio (1) |
|
57.92 |
% |
|
57.37 |
% |
|
57.00 |
% |
|
57.25 |
% |
|
54.18 |
% |
| |
|
|
|
|
|
| (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. |
|
| |
|
|
|
|
|
| Page
14 |
| |
|
|
|
|
|
|
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) |
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
| ($
in thousands) |
|
|
|
|
|
|
|
Calculation of Adjusted Pre-Tax, Pre-Provision (PTPP)
Earnings |
|
|
|
|
|
| |
|
|
|
|
|
|
| Net income
available to common stockholders |
$ |
271,109 |
|
$ |
222,879 |
|
$ |
142,318 |
|
$ |
67,407 |
|
$ |
254,852 |
|
|
| Provision
for income taxes |
|
61,306 |
|
|
50,151 |
|
|
31,381 |
|
|
14,363 |
|
|
64,890 |
|
|
| Provision
for credit losses (including provision for unfunded
commitments) |
|
(32,704 |
) |
|
(31,396 |
) |
|
(11,506 |
) |
|
1,445 |
|
|
74,973 |
|
|
| Gain on sale
of securities |
|
(15,498 |
) |
|
(15,846 |
) |
|
(10,598 |
) |
|
(5,471 |
) |
|
(54,806 |
) |
|
| Net pre-tax
non-core items |
|
9,689 |
|
|
(5,550 |
) |
|
(3,910 |
) |
|
(4,619 |
) |
|
12,791 |
|
|
| Adjusted
Pre-tax, pre-provision (PTPP) earnings |
$ |
293,902 |
|
$ |
220,238 |
|
$ |
147,685 |
|
$ |
73,125 |
|
$ |
352,700 |
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Page
15 |
|
| |
|
|
|
|
|
|
Grafico Azioni Simmons First National (NASDAQ:SFNC)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Simmons First National (NASDAQ:SFNC)
Storico
Da Lug 2023 a Lug 2024
