PINE
BLUFF, Ark., April 25,
2023 /PRNewswire/ --
Bob Fehlman, Simmons' Chief
Executive Officer, commented on first quarter 2023 results
While the continued challenges from rising interest rates,
coupled this quarter with heightened market volatility, brought
amplified attention to the financial services industry, our focus
remained on the fundamentals that have served us well during our
120-year history.
Deposit levels were stable, further highlighting the
granularity of our deposit base, as well as the long-term
relationships we have with many of our customers. Consistent with
industry trends, we experienced migration to higher rate deposits
throughout the quarter, resulting in an increase in the cost of
deposits. Despite these challenges, we continued to operate from a
position of strength given our solid liquidity position. Uninsured
deposits represented only 23 percent of total deposits. At
$10.8 billion, additional liquidity
sources available to the company represented 2.0 times the level of
uninsured deposits. Capital levels increased with all regulatory
capital ratios significantly above "well-capitalized" guidelines,
and our TCE ratio ended the quarter at 7.3 percent. Key credit
quality metrics also remained strong with our NPL coverage ratio at
324 percent and our allowance to loan ratio at 1.25
percent.
Overall expenses were well contained in the quarter. Through
our Better Bank Initiative, we have identified an estimated
$15 million in annual noninterest
expense cost savings that we expect to be fully incorporated into
our run-rate by the end of 2023. The programs under this initiative
are designed to optimize operational processes, further improve the
customer experience and increase our capacity to capitalize on
organic growth opportunities, while at the same time improving our
long-term growth profile.
Financial
Highlights
|
1Q23
|
4Q22
|
1Q22
|
|
Q1 23
Highlights
|
Balance Sheet
(in millions)
|
|
|
|
|
Metrics as of quarter end:
· Stable
deposit levels further
highlight the granularity of our
deposit portfolio and long-term
relationships with many
customers
· Solid
liquidity position with
loan to deposit ratio at 74%;
other borrowings unchanged at
6% of total liabilities
·
Uninsured deposits represented
23% of total deposits;
additional liquidity sources
provide 2.0x coverage of
uninsured deposits
·
Disciplined loan growth as total
loans increase 3% on a linked
quarter basis
·
Maintained strong credit quality
metrics; NPL coverage ratio at
324% and allowance to loan
ratio of 1.25%
· All
regulatory capital ratios
continue to significantly exceed
"well-capitalized guidelines;
TCE ratio1 at 7.3%
|
Total
deposits
|
$22,452
|
$22,548
|
$19,392
|
|
Total loans
|
16,555
|
16,142
|
12,029
|
|
Total investment
securities
|
7,521
|
7,613
|
8,197
|
|
Total shareholders'
equity
|
3,340
|
3,269
|
2,962
|
|
Asset
Quality
|
|
|
|
|
Net charge-off
ratio
|
0.03 %
|
0.13 %
|
0.22 %
|
|
Nonperforming loan
ratio
|
0.38
|
0.37
|
0.53
|
|
Nonperforming assets to
total assets
|
0.26
|
0.23
|
0.29
|
|
Allowance for credit
losses to total loans
|
1.25
|
1.22
|
1.49
|
|
Nonperforming loan
coverage ratio
|
324
|
334
|
278
|
|
Capital
Ratios
|
|
|
|
|
Equity to
assets
|
12.11 %
|
11.91 %
|
12.10 %
|
|
Tangible common equity
(TCE) ratio1
|
7.25
|
7.00
|
7.37
|
|
Common equity tier 1
(CET1) ratio
|
11.87
|
11.90
|
13.52
|
|
Total risk-based
capital ratio
|
14.47
|
14.22
|
16.42
|
|
Liquidity ($ in
millions)
|
|
|
|
|
Loan to deposit
ratio
|
73.74 %
|
71.59 %
|
62.03 %
|
|
Borrowed funds to total
liabilities
|
6.32 %
|
5.73 %
|
8.91 %
|
|
Uninsured
deposits
|
$
5,268
|
$
6,740
|
$5,910
|
|
Additional liquidity
sources
|
$10,780
|
$10,604
|
$8,358
|
|
Coverage ratio of
uninsured deposits
|
2.0x
|
1.6x
|
1.4x
|
|
Performance
Measures (in millions)
|
|
|
|
|
Total
revenue
|
$223.7
|
$237.7
|
$187.8
|
|
Pre-provision net
revenue1
|
80.4
|
95.2
|
59.5
|
|
Adjusted pre-provision
net revenue1
|
82.8
|
92.2
|
62.3
|
|
Provision for credit
losses on loans
|
10.9
|
-
|
(19.9)
|
|
Provision for credit
losses on securities
|
13.3
|
-
|
-
|
|
Noninterest
income
|
45.8
|
44.6
|
42.2
|
|
Noninterest
expense
|
143.2
|
142.6
|
128.4
|
|
Simmons First National Corporation (NASDAQ:
SFNC) (Simmons or Company) today reported net income of
$45.6 million for the first quarter
of 2023, compared to $83.3 million in
the fourth quarter of 2022 and $65.1
million in the first quarter of 2022. Diluted earnings per
share were $0.36 for the first
quarter of 2023, compared to $0.65 in
the fourth quarter of 2022 and $0.58
in the first quarter of 2022. Adjusted earnings1 for the
first quarter of 2023 were $47.3
million, compared to $81.1
million in the fourth quarter of 2022 and $67.2 million in the first quarter of 2022. A
summary of certain items, consisting primarily of merger related
costs and branch right-sizing costs, are described in the
"Reconciliation of Non-GAAP Financial Measures" tables below.
Total revenue for the first quarter of 2023 was $223.7 million, compared to $237.7 million in the fourth quarter of 2022 and
$187.8 million in the first quarter
of 2022. Pre-provision net revenue1 for the first
quarter of 2023 was $80.4 million,
compared to $95.2 million in the
fourth quarter of 2022 and $59.5
million in the first quarter of 2022. Adjusted pre-provision
net revenue1 was $82.8
million, compared to $92.2
million in the fourth quarter of 2022 and $62.3 million in the first quarter of 2022.
The decline in revenue and pre-provision net revenue on a linked
quarter basis primarily reflected a decrease in net interest
income, as an increase in deposit cost and the continued change in
the mix of deposits more than offset an increase in interest income
on earning assets, an increase in noninterest income and well
contained noninterest expense growth. Results for the first quarter
of 2023 also include a provision for credit losses of $24.2 million, reflecting loan growth in the
quarter, the impact of updated economic assumptions and the
identification of two nonperforming corporate bonds in the
securities portfolio. During the fourth quarter of 2022, the
Company did not record a provision for credit losses, and in the
first quarter of 2022 recorded a recapture of provision expense of
$19.9 million.
Net Interest Income
Net interest income for the first
quarter of 2023 totaled $177.8
million, compared to $193.0
million for the fourth quarter of 2022 and $145.6 million for the first quarter of 2022.
Included in net interest income is accretion recognized on assets
acquired, which totaled $2.6 million
in the first quarter of 2023, $4.5
million in the fourth quarter of 2022 and $3.7 million in the first quarter of 2022. On a
linked quarter basis, interest income increased $14.6 million, while interest expense increased
$29.7 million primarily as a result
of the competitive interest rate environment and the corresponding
migration to higher rate deposits products.
The yield on loans for the first quarter of 2023 was 5.67
percent, compared to 5.40 percent in the fourth quarter of 2022 and
4.34 percent in the first quarter of 2022. The yield on investment
securities for the first quarter of 2023 was 2.92 percent, compared
to 2.68 percent for the fourth quarter of 2022 and 1.86 percent for
the first quarter of 2022. Cost of deposits for the first quarter
of 2023 was 1.58 percent, compared to 1.02 percent for the fourth
quarter of 2022 and 0.14 percent for the first quarter of 2022. The
increase in the cost of deposits reflected the dramatic increase in
interest rates during 2022 and the first quarter of 2023, customer
migration to higher rate deposit products and increased competition
for deposits. The net interest margin on a fully taxable equivalent
basis for the first quarter of 2023 was 3.09 percent, compared to
3.31 percent for the fourth quarter of 2022 and 2.76 percent for
the first quarter of 2022.
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Q1 22
|
Loan yield (FTE)
2
|
5.67 %
|
5.40 %
|
4.86 %
|
4.54 %
|
4.34 %
|
Investment securities
yield (FTE) 2
|
2.92
|
2.68
|
2.29
|
2.08
|
1.86
|
Cost of interest
bearing deposits
|
2.10
|
1.41
|
0.65
|
0.25
|
0.19
|
Cost of
deposits
|
1.58
|
1.02
|
0.47
|
0.18
|
0.14
|
Cost of borrowed
funds
|
4.29
|
3.92
|
2.66
|
2.13
|
1.94
|
Net interest spread
(FTE) 2
|
2.52
|
2.87
|
3.11
|
3.11
|
2.66
|
Net interest margin
(FTE) 2
|
3.09
|
3.31
|
3.34
|
3.24
|
2.76
|
Noninterest Income
Noninterest income for the first
quarter of 2023 was $45.8 million,
compared to $44.6 million in the
fourth quarter of 2022 and $42.2
million in the first quarter of 2022. Included in first
quarter 2023 results is a $4.0
million legal reserve recapture associated with previously
disclosed legal matters. The fourth quarter of 2022 included a
$4.1 million gain on insurance
settlement related to a weather event that caused severe damage to
one of our branches. Adjusted noninterest income1 for
the first quarter of 2023 was $45.8
million, compared to $40.6
million in the fourth quarter of 2022 and $42.2 million for the first quarter of 2022. The
increase in adjusted noninterest income on a linked quarter basis
was primarily attributable to an increase in service charges on
deposit accounts and mortgage lending income and legal reserve
recapture, offset by a market driven decline in wealth management
fees. On a year-over-year basis, the increase in noninterest income
was primarily attributable to an increase in service charges on
deposit accounts, debit and credit card fees and legal reserve
recapture, offset in part by a decline in mortgage lending income
resulting from reduced activity throughout the housing market given
the dramatic increase in interest rates.
Noninterest
Income
$ in
millions
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Q1 22
|
Service charges on
deposit accounts
|
$ 12.4
|
$ 11.9
|
$ 12.6
|
$ 11.4
|
$ 10.7
|
Wealth management
fees
|
7.4
|
8.2
|
8.6
|
7.2
|
8.0
|
Debit and credit card
fees
|
8.0
|
7.8
|
7.7
|
8.2
|
7.4
|
Mortgage lending
income
|
1.6
|
1.1
|
2.6
|
2.2
|
4.6
|
Other service charges
and fees
|
2.3
|
2.0
|
2.1
|
1.9
|
1.6
|
Bank owned life
insurance
|
3.0
|
3.0
|
2.9
|
2.6
|
2.7
|
Gain (loss) on sale of
securities
|
-
|
(0.1)
|
-
|
(0.2)
|
(0.1)
|
Gain on insurance
settlement
|
-
|
4.1
|
-
|
-
|
-
|
Other income
|
11.3
|
6.6
|
6.7
|
6.8
|
7.3
|
|
|
|
|
|
|
Adjusted other income
1
|
11.3
|
6.6
|
6.3
|
6.9
|
7.3
|
Noninterest Expense
Noninterest expense for the first
quarter of 2023 was $143.2 million,
compared to $142.6 million in the
fourth quarter of 2022 and $128.4
million in the first quarter of 2022. Included in
noninterest expense are certain items, primarily consisting of
merger related and branch right sizing costs, totaling $2.4 million in the first quarter of 2023,
$1.1 million the fourth quarter of
2022 and $2.8 million in the first
quarter of 2022. Excluding these items (which are described in the
"Reconciliation of Non-GAAP Financial Measures" tables below),
adjusted noninterest expense1 was $140.9 million in the first quarter of 2023,
$141.4 million in the fourth quarter
of 2022 and $125.6 million in the
first quarter of 2022. The decrease in adjusted noninterest expense
on a linked quarter basis was primarily due to a decrease in other
operating expenses, which in the fourth quarter of 2022 included
$1.2 million related to the
amortization of certain tax credits. The increase in salaries and
employee benefits on a linked quarter basis reflected seasonal
payroll taxes incurred during the first quarter, 401(k) profit
sharing contribution and equity awards compensation. The increase
in adjusted noninterest expense compared to the first quarter of
2022 primarily reflects the aforementioned items, as well as the
acquisition of Spirit of Texas Bancshares, Inc. (Spirit) which
closed early in the second quarter of 2022.
Noninterest
Expense
$ in
millions
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Q1 22
|
Salaries and employee
benefits
|
$77.0
|
$73.0
|
$71.9
|
$74.1
|
$67.9
|
Occupancy expense,
net
|
11.6
|
11.6
|
11.7
|
11.0
|
10.0
|
Furniture and
equipment
|
5.1
|
5.4
|
5.4
|
5.1
|
4.8
|
Deposit
insurance
|
4.9
|
3.7
|
3.3
|
2.8
|
1.8
|
Other real estate and
foreclosure expense
|
0.2
|
0.4
|
0.2
|
0.1
|
0.3
|
Merger related
costs
|
1.4
|
-
|
1.4
|
19.1
|
1.9
|
Other operating
expenses
|
43.1
|
48.5
|
45.1
|
44.5
|
41.6
|
|
|
|
|
|
|
Adjusted other
operating expenses 1
|
42.3
|
47.5
|
44.1
|
42.7
|
40.9
|
Efficiency
ratio
|
62.28 %
|
58.33 %
|
57.22 %
|
67.77 %
|
66.39 %
|
Adjusted efficiency
ratio 1
|
59.38 %
|
56.97 %
|
54.41 %
|
56.74 %
|
62.95 %
|
Loans and Unfunded Loan Commitments
Total loans at the
end of the first quarter of 2023 were $16.6
billion, an increase of $413
million, or 3 percent, compared to $16.1 billion at the end of the fourth quarter of
2022. The increase in total loans was supported by diverse growth
in terms of type and by geographic market. On a year-over-year
basis, total loans were up $4.5
billion, or 38 percent, reflecting, in large part, the
acquisition of Spirit.
Unfunded commitments at the end of the first quarter of 2023
were $4.7 billion, compared to
$5.0 billion at the end of the fourth
quarter of 2022 and $3.4 billion at
the end of the first quarter of 2022. While unfunded commitments
are considered a key indicator of future loan growth, higher
interest rates, softening economic conditions and forecasts of a
potential recession in the U.S. have resulted in lower activity in
our commercial loan pipeline. Commercial loans approved and ready
to close at the end of the first quarter of 2023 totaled
$504 million and the rate on ready to
close commercial loans was 7.32 percent, up 47 basis points from
the rate on ready to close commercial loans at the end of the
fourth quarter of 2022.
$ in
millions
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Q1 22
|
Total loans
|
$16,555
|
$16,142
|
$15,607
|
$15,110
|
$12,029
|
Unfunded loan
commitments
|
$4,725
|
$5,000
|
$5,138
|
$4,473
|
$3,428
|
Deposits
Total deposits at the end of the first
quarter of 2023 were $22.5 billion,
relatively unchanged from the end of the fourth quarter of 2022,
and up $3.1 billion compared to the
first quarter of 2022. Noninterest bearing deposits totaled
$5.5 billion at the end of the first
quarter of 2023, compared to $6.0
billion at the end of the fourth quarter of 2022 and
$5.2 billion at the end of the first
quarter of 2022. Noninterest bearing deposits represent 24 percent
of total deposits at the end of the first quarter of 2023, compared
to 27 percent at the end of both the fourth quarter of 2022 and the
first quarter of 2022. Interest bearing transaction accounts
totaled $11.3 billion at the end of
the first quarter of 2023, compared to $11.8
billion at the end of the fourth quarter of 2022 and
$12.1 billion at the end of the first
quarter of 2022. Time deposits totaled $5.7
billion at the end of the first quarter of 2023, compared to
$4.8 billion at the end of the fourth
quarter of 2022 and $2.1 billion at
the end of the first quarter of 2022. The change in the mix of
deposits on a linked quarter basis continued to reflect increased
market competition and consumer migration toward higher rate
deposits, principally certificates of deposits, given the rapid
increase in interest rates that has occurred over the past year.
The loan to deposit ratio ended the first quarter of 2023 at 74
percent, compared to 72 percent at the end of the fourth quarter of
2022 and 62 percent at the end of the first quarter of 2022.
$ in
millions
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Q1 22
|
Noninterest bearing
deposits
|
$
5,489
|
$
6,017
|
$
6,218
|
$
6,057
|
$
5,224
|
Interest bearing
transaction accounts
|
11,284
|
11,763
|
12,104
|
12,816
|
12,106
|
Time
deposits
|
5,679
|
4,768
|
3,827
|
3,163
|
2,062
|
Total
deposits
|
$22,452
|
$22,548
|
$22,149
|
$22,036
|
$19,392
|
|
|
|
|
|
|
Noninterest bearing
deposits to total deposits
|
24 %
|
27 %
|
28 %
|
27 %
|
27 %
|
Total loans to total
deposits
|
74
|
72
|
70
|
69
|
62
|
Asset Quality
Total nonperforming loans at the end of
the first quarter of 2023 were $63.7
million, compared to $58.9
million at the end of the fourth quarter of 2022 and
$64.3 million at the end of the first
quarter of 2022. Total nonperforming assets as a percentage of
total assets were 0.26 percent at the end of the first quarter of
2023, compared to 0.23 percent at the end of the fourth quarter
2022 and 0.29 percent at the end of the first quarter of 2022. The
increase in nonperforming assets on a linked quarter basis was
primarily due to isolated corporate bonds in the investment
securities portfolio totaling approximately $4.0 million. Net charge-offs as a percentage of
average loans for the first quarter of 2023 were 3 basis points,
compared to 13 basis points in the fourth quarter of 2022 and 22
basis points in the first quarter of 2022.
Provision for credit losses totaled $24.2
million in the first quarter of 2023, compared to provision
recapture of $19.9 million in the
first quarter of 2022. Of the total provision for credit losses
recorded in the first quarter of 2023, approximately $10.9 million was related to loans, reflecting
loan growth in the quarter, as well as the impact of updated
economic assumptions. Approximately $13.3
million of provision for credit losses was related to
decreases in the value of corporate bonds in the investment
securities portfolio, including the previously noted securities
classified as nonperforming during the quarter. The allowance for
credit losses on loans at the end of the first quarter of 2023 was
$206.6 million, compared to
$197.0 million at the end of the
fourth quarter of 2022 and $178.9
million at the end of the first quarter of 2022. The
nonperforming loan coverage ratio ended the quarter at 324 percent,
compared to 334 percent at the end of the fourth quarter of 2022
and 278 percent at the end of the first quarter of 2022. The
reserve for unfunded commitments totaled $41.9 million at the end of the first quarter of
2023, unchanged from fourth quarter 2022 levels and up from
$22.4 million at the end of the first
quarter of 2022.
$ in
millions
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Q1 22
|
Allowance for credit
losses on loans to total loans
|
1.25 %
|
1.22 %
|
1.27 %
|
1.41 %
|
1.49 %
|
Allowance for credit
losses on loans to nonperforming loans
|
324
|
334
|
342
|
334
|
278
|
Nonperforming loans to
total loans
|
0.38
|
0.37
|
0.37
|
0.42
|
0.53
|
Net charge-off ratio
(annualized)
|
0.03
|
0.13
|
-
|
0.02
|
0.22
|
Net charge-off ratio
YTD (annualized)
|
0.03
|
0.09
|
0.07
|
0.11
|
0.22
|
|
|
|
|
|
|
Total nonperforming
loans
|
$63.7
|
$58.9
|
$57.8
|
$63.6
|
$64.3
|
Total other
nonperforming assets
|
7.7
|
3.6
|
4.7
|
6.4
|
6.6
|
Total
nonperforming assets
|
$71.4
|
$62.5
|
$62.5
|
$70.0
|
$70.9
|
|
|
|
|
|
|
Reserve for unfunded
commitments
|
$41.9
|
$41.9
|
$41.9
|
$25.9
|
$22.4
|
Capital
Total common stockholders' equity at the end
of the first quarter of 2023 was $3.3
billion, compared to $3.0
billion at the end of the first quarter of 2022. On a linked
quarter basis, total common stockholders' equity increased
$70.5 million primarily as a result
of a $46.9 million decrease in
unrealized losses associated with investment securities classified
as available-for-sale. Book value per share at the end of the first
quarter of 2023 was $26.24, compared
to $25.73 at the end of the fourth
quarter of 2022 and $26.32 at the end
of the first quarter of 2022. Tangible book value per
share1 was $14.88 at the
end of the first quarter of 2023, compared to $14.33 at the end of the fourth quarter of 2022
and $15.22 at the end of the first
quarter of 2022. Stockholders' equity to total assets at
March 31, 2023, was 12.1 percent,
compared to 11.9 percent at the end of the fourth quarter of 2022
and 12.1 percent at the end of the first quarter of 2022. Tangible
common equity to tangible assets1 was 7.3 percent at
March 31, 2023, compared to 7.0
percent at December 31, 2022, and 7.4
percent at March 31, 2022. All of
Simmons' regulatory capital ratios significantly exceed
"well-capitalized" guidelines.
|
Q1 23
|
Q4 22
|
Q3 22
|
Q2 22
|
Q1 22
|
Stockholders' equity to
total assets
|
12.1 %
|
11.9 %
|
11.7 %
|
12.0 %
|
12.1 %
|
Tangible common equity
to tangible assets 1
|
7.3
|
7.0
|
6.7
|
7.0
|
7.4
|
Common equity tier 1
(CET1) ratio
|
11.9
|
11.9
|
11.7
|
12.1
|
13.5
|
Tier 1 leverage
ratio
|
9.2
|
9.3
|
9.2
|
9.2
|
9.0
|
Tier 1 risk-based
capital ratio
|
11.9
|
11.9
|
11.7
|
12.1
|
13.5
|
Total risk-based
capital ratio
|
14.5
|
14.2
|
14.1
|
14.8
|
16.4
|
Share Repurchase Program and Cash Dividend
As a result
of Simmons' solid capital position and its ability to organically
generate capital, the board of directors declared a cash dividend
on Simmons' Class A common stock for the second quarter of 2023 of
$0.20 per share, which represents a 5
percent increase from the cash dividend paid for the same time
period last year. The cash dividend is payable on July 3, 2023, to shareholders of record as of
June 15, 2023. The indicated
annualized cash dividend rate of $0.80 represents a ten-year compound annual
growth rate of 7 percent. 2023 represents the 114th
consecutive year that Simmons has paid cash dividends and the
12th consecutive year that Simmons has increased its
dividend. According to research by Dividend Power, Simmons is one
of only 24 U.S. publicly traded companies that have paid dividends
for 100+ uninterrupted years. Simmons also earned Dividend Power's
designation as a "Dividend Contender," a title reserved exclusively
for companies that have increased their dividend for 10 to 24
consecutive years. As of April 21,
2023, Dividend Power research noted that Simmons is one of
only 371 companies out of nearly 6,000 companies listed on the New
York Stock Exchange and NASDAQ in 2022 to achieve this
distinction.
During the first quarter of 2023, Simmons did not repurchase
shares under its 2022 stock repurchase program (2022 Program).
Remaining authorization under the 2022 Program as of March 31, 2023, was approximately $80 million. Market conditions and our capital
needs will drive the decision regarding future stock repurchases;
the timing, pricing and amount of any repurchases under the 2022
Program will be determined by Simmons' management at its
discretion; and the 2022 Program does not obligate Simmons to
repurchase any common stock and may be modified, discontinued or
suspended at any time without prior notice.
|
|
|
(1)
|
Non-GAAP measurement. See "Non-GAAP Financial
Measures" and "Reconciliation of Non-GAAP Financial Measures"
below
|
(2)
|
FTE – fully taxable equivalent using an effective tax
rate of 26.135%
|
(3)
|
Effective tax rate of 26.135%
|
Conference Call
Management will conduct a live
conference call to review this information beginning at
9:00 a.m. Central Time today,
Tuesday, April 25, 2023. Interested
persons can listen to this call by dialing toll-free
1-888-222-5806 (North America
only) and asking for the Simmons First National Corporation
conference call, conference ID 10176799. In addition, the call
will be available live or in recorded version on Simmons' website
at simmonsbank.com for at least 60 days following the date of
the call.
Simmons First National Corporation
Simmons First
National Corporation (NASDAQ: SFNC) is a Mid-South based financial
holding company that has paid cash dividends to its shareholders
for 114 consecutive years. Its principal subsidiary, Simmons Bank, operates 231 branches in
Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. Founded in 1903, Simmons Bank offers comprehensive financial
solutions delivered with a client-centric approach. In 2023,
Simmons Bank was recognized by
Forbes as one of America's Best Midsize Employers and among
the World's Best Banks for the fourth consecutive year. In 2022,
Simmons Bank was named to
Forbes' list of "America's Best Banks" for the second
consecutive year. Additional information about Simmons Bank can be found on our website at
simmonsbank.com, by following @Simmons_Bank on Twitter or by
visiting our newsroom.
Non-GAAP Financial Measures
This press release
contains financial information determined by methods other than in
accordance with U.S. generally accepted accounting principles
(GAAP). The Company's management uses these non-GAAP financial
measures in their analysis of the Company's performance. These
measures adjust GAAP performance measures to, among other things,
include the tax benefit associated with revenue items that are
tax-exempt, as well as exclude from net income (including on a per
share diluted basis), pre-tax, pre-provision earnings, net
charge-offs, income available to common shareholders, non-interest
income, and non-interest expense certain income and expense items
attributable to merger activity (primarily including merger-related
expenses and Day 2 CECL provisions), gains and/or losses on sale of
branches, net branch right-sizing initiatives, loss on redemption
of trust preferred securities and gain on sale of intellectual
property. 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, deposits and/or loans
acquired through acquisitions, mortgage warehouse loans, and/or
energy loans, or gains and/or losses on the sale of securities. The
Company's management believes that these non-GAAP financial
measures are useful to investors because they, among other things,
present the results of the Company's ongoing operations without the
effect of mergers or other items not central to the Company's
ongoing business, as well as normalize for tax effects, the effects
of the PPP, and certain other effects. Management, therefore,
believes presentations of these non-GAAP financial measures provide
useful supplemental information that is essential to a proper
understanding of the operating results of the Company's ongoing
businesses, and management uses these non-GAAP financial measures
to assess the performance of the Company's ongoing businesses as
related to prior financial periods. These non-GAAP disclosures
should not be viewed as a substitute for operating results
determined in accordance with GAAP, nor are they necessarily
comparable to non-GAAP performance measures that may be presented
by other companies. Where non-GAAP financial measures are used, the
comparable GAAP financial measure, as well as the reconciliation to
the comparable GAAP financial measure, can be found in the tables
of this release.
Forward-Looking Statements
Certain statements in this
press release may not be based on historical facts and should be
considered "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements, including, without limitation,
statements made in Mr. Fehlman's quote, may be identified by
reference to future periods or by the use of forward-looking
terminology, such as "believe," "budget," "expect," "foresee,"
"anticipate," "intend," "indicate," "target," "estimate," "plan,"
"project," "continue," "contemplate," "positions," "prospects,"
"predict," or "potential," by future conditional verbs such as
"will," "would," "should," "could," "might" or "may," or by
variations of such words or by similar expressions. These
forward-looking statements include, without limitation, statements
relating to Simmons' future growth, business strategies, lending
capacity and lending activity, loan demand, revenue, assets, asset
quality, profitability, dividends, net interest margin,
non-interest revenue, share repurchase program, acquisition
strategy, digital banking initiatives, the Company's ability to
recruit and retain key employees, the estimated cost savings
associated with the Company's Better Bank Initiative, the adequacy
of the allowance for credit losses, and future economic conditions
and interest rates. Any forward-looking statement speaks only as of
the date of this 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,
changes in credit quality, changes in interest rates and related
governmental policies, changes in loan demand, changes in deposit
flows, changes in real estate values, changes in the assumptions
used in making the forward-looking statements, changes in the
securities markets generally or the price of Simmons' common stock
specifically, and changes in information technology affecting the
financial industry; changes in customer behaviors, including
consumer spending, borrowing, and saving habits; the effects of the
COVID-19 pandemic on, among other things, the Company's operations,
liquidity, and credit quality; general economic and market
conditions; market disruptions including pandemics or significant
health hazards, severe weather conditions, natural disasters,
terrorist activities, financial crises, political crises, war and
other military conflicts (including the ongoing military conflict
between Russia and Ukraine) or other major events, or the
prospect of these events; the soundness of other financial
institutions and indirect exposure related to the closings of
Silicon Valley Bank (SVB), Signature Bank and Silvergate Bank and
their impact on the broader market through other customers,
suppliers and partners (or that the conditions which resulted in
the liquidity concerns with SVB, Signature Bank and Silvergate Bank
may also adversely impact, directly or indirectly, other financial
institutions and market participants with which the Company has
commercial or deposit relationships); increased inflation;
the loss of key employees; increased competition in the markets in
which the Company operates; increased unemployment; labor
shortages; claims, damages, and fines related to litigation or
government actions; changes in accounting principles relating to
loan loss recognition (current expected credit losses); the
Company's ability to manage and successfully integrate its mergers
and acquisitions and to fully realize cost savings and other
benefits associated with those transactions; cyber threats, attacks
or events; reliance on third parties for key services; government
legislation; and other factors, many of which are beyond the
control of the Company, could cause actual results to differ
materially from those projected in or contemplated by the
forward-looking statements. Additional information on factors that
might affect the Company's financial results is included in the
Company's Form 10-K for the year ended December 31, 2022, and other reports that the
Company has filed with or furnished to the U.S. Securities and
Exchange Commission (the SEC), all of which are available from the
SEC on its website, www.sec.gov. In addition, there can be no
guarantee that the board of directors (Board) of Simmons will
approve a quarterly dividend in future quarters, and the timing,
payment, and amount of future dividends (if any) is subject to,
among other things, the discretion of the Board and may differ
significantly from past dividends.
Simmons First
National Corporation
|
|
|
|
|
SFNC
|
Consolidated
End of Period Balance Sheets
|
|
|
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ in
thousands)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and
noninterest bearing balances due from banks
|
$ 199,316
|
$ 200,616
|
$ 175,547
|
$ 193,473
|
$ 195,510
|
Interest bearing
balances due from banks and federal funds sold
|
325,135
|
481,506
|
503,863
|
771,374
|
1,491,507
|
Cash and cash
equivalents
|
524,451
|
682,122
|
679,410
|
964,847
|
1,687,017
|
Interest bearing
balances due from banks - time
|
795
|
795
|
1,290
|
1,535
|
1,857
|
Investment
securities - held-to-maturity
|
3,765,483
|
3,759,706
|
3,787,076
|
3,819,682
|
1,556,825
|
Investment
securities - available-for-sale
|
3,755,956
|
3,852,854
|
3,937,543
|
4,341,647
|
6,640,069
|
Mortgage loans
held for sale
|
4,244
|
3,486
|
12,759
|
14,437
|
18,206
|
Other loans held
for sale
|
-
|
-
|
2,292
|
16,375
|
-
|
Loans:
|
|
|
|
|
|
Loans
|
16,555,098
|
16,142,124
|
15,607,135
|
15,110,344
|
12,028,593
|
Allowance for
credit losses on loans
|
(206,557)
|
(196,955)
|
(197,589)
|
(212,611)
|
(178,924)
|
Net
loans
|
16,348,541
|
15,945,169
|
15,409,546
|
14,897,733
|
11,849,669
|
Premises and
equipment
|
564,497
|
548,741
|
549,932
|
553,062
|
486,531
|
Foreclosed assets
and other real estate owned
|
2,721
|
2,887
|
3,612
|
4,084
|
5,118
|
Interest
receivable
|
98,775
|
102,892
|
86,637
|
82,332
|
69,357
|
Bank owned life
insurance
|
493,191
|
491,340
|
488,364
|
486,355
|
448,011
|
Goodwill
|
1,320,799
|
1,319,598
|
1,309,000
|
1,310,528
|
1,147,007
|
Other intangible
assets
|
124,854
|
128,951
|
133,059
|
137,285
|
102,748
|
Other
assets
|
579,139
|
622,520
|
675,554
|
588,707
|
469,853
|
Total
assets
|
$ 27,583,446
|
$ 27,461,061
|
$ 27,076,074
|
$ 27,218,609
|
$ 24,482,268
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Noninterest
bearing transaction accounts
|
$
5,489,434
|
$
6,016,651
|
$
6,218,283
|
$
6,057,186
|
$
5,223,862
|
Interest bearing
transaction accounts and savings deposits
|
11,283,584
|
11,762,885
|
12,103,994
|
12,816,198
|
12,105,948
|
Time
deposits
|
5,678,757
|
4,768,558
|
3,826,415
|
3,162,479
|
2,062,612
|
Total deposits
|
22,451,775
|
22,548,094
|
22,148,692
|
22,035,863
|
19,392,422
|
Federal funds
purchased and securities sold
|
|
|
|
|
|
under agreements
to repurchase
|
142,862
|
160,403
|
168,513
|
155,101
|
196,828
|
Other
borrowings
|
1,023,826
|
859,296
|
964,772
|
1,060,244
|
1,337,243
|
Subordinated
notes and debentures
|
366,027
|
365,989
|
365,951
|
421,693
|
384,242
|
Accrued interest
and other liabilities
|
259,055
|
257,917
|
270,995
|
285,813
|
209,926
|
Total
liabilities
|
24,243,545
|
24,191,699
|
23,918,923
|
23,958,714
|
21,520,661
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred
stock
|
-
|
-
|
-
|
-
|
-
|
Common
stock
|
1,273
|
1,270
|
1,269
|
1,288
|
1,125
|
Surplus
|
2,533,589
|
2,530,066
|
2,527,153
|
2,569,060
|
2,150,453
|
Undivided
profits
|
1,275,720
|
1,255,586
|
1,196,459
|
1,139,975
|
1,136,990
|
Accumulated other
comprehensive (loss) income
|
(470,681)
|
(517,560)
|
(567,730)
|
(450,428)
|
(326,961)
|
Total
stockholders' equity
|
3,339,901
|
3,269,362
|
3,157,151
|
3,259,895
|
2,961,607
|
Total liabilities
and stockholders' equity
|
$ 27,583,446
|
$ 27,461,061
|
$ 27,076,074
|
$ 27,218,609
|
$ 24,482,268
|
Simmons First
National Corporation
|
|
|
|
|
SFNC
|
Consolidated
Statements of Income - Quarter-to-Date
|
|
|
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ in thousands,
except per share data)
|
|
|
|
|
|
INTEREST
INCOME
|
|
|
|
|
|
Loans (including fees)
|
$ 227,498
|
$ 216,091
|
$ 187,347
|
$ 163,578
|
$
127,176
|
Interest bearing balances due from banks and federal funds
sold
|
2,783
|
2,593
|
1,141
|
1,117
|
649
|
Investment securities
|
48,774
|
45,689
|
40,954
|
37,848
|
33,712
|
Mortgage loans held for sale
|
82
|
152
|
178
|
200
|
190
|
Other loans held for sale
|
-
|
59
|
998
|
2,063
|
-
|
TOTAL INTEREST INCOME
|
279,137
|
264,584
|
230,618
|
204,806
|
161,727
|
INTEREST
EXPENSE
|
|
|
|
|
|
Time
deposits
|
39,538
|
22,434
|
8,204
|
2,875
|
2,503
|
Other deposits
|
47,990
|
34,615
|
17,225
|
6,879
|
4,314
|
Federal funds purchased and securities
|
|
|
|
|
|
sold under agreements
to repurchase
|
323
|
449
|
305
|
119
|
68
|
Other borrowings
|
8,848
|
9,263
|
6,048
|
4,844
|
4,779
|
Subordinated notes and debentures
|
4,603
|
4,797
|
5,251
|
4,990
|
4,457
|
TOTAL INTEREST EXPENSE
|
101,302
|
71,558
|
37,033
|
19,707
|
16,121
|
NET INTEREST
INCOME
|
177,835
|
193,026
|
193,585
|
185,099
|
145,606
|
PROVISION FOR
CREDIT LOSSES
|
|
|
|
|
|
Provision for credit losses on loans
|
10,916
|
26
|
(15,897)
|
30,406
|
(19,914)
|
Provision for credit losses on unfunded
commitments
|
-
|
-
|
16,000
|
3,453
|
-
|
Provision for credit losses on investment securities -
AFS
|
12,800
|
-
|
-
|
-
|
-
|
Provision for credit losses on investment securities -
HTM
|
500
|
-
|
-
|
-
|
-
|
TOTAL PROVISION FOR CREDIT LOSSES
|
24,216
|
26
|
103
|
33,859
|
(19,914)
|
NET INTEREST
INCOME AFTER PROVISION
|
|
|
|
|
|
FOR CREDIT LOSSES
|
153,619
|
193,000
|
193,482
|
151,240
|
165,520
|
NONINTEREST
INCOME
|
|
|
|
|
|
Service charges on deposit accounts
|
12,437
|
11,892
|
12,560
|
11,379
|
10,696
|
Debit and credit card fees
|
7,952
|
7,845
|
7,685
|
8,224
|
7,449
|
Wealth management fees
|
7,365
|
8,151
|
8,562
|
7,214
|
7,968
|
Mortgage lending income
|
1,570
|
1,139
|
2,593
|
2,240
|
4,550
|
Bank
owned life insurance income
|
2,973
|
2,975
|
2,902
|
2,563
|
2,706
|
Other service charges and fees (includes insurance
income)
|
2,282
|
2,023
|
2,085
|
1,871
|
1,637
|
Gain
(loss) on sale of securities
|
-
|
(52)
|
(22)
|
(150)
|
(54)
|
Gain
on insurance settlement
|
-
|
4,074
|
-
|
-
|
-
|
Other income
|
11,256
|
6,600
|
6,658
|
6,837
|
7,266
|
TOTAL NONINTEREST INCOME
|
45,835
|
44,647
|
43,023
|
40,178
|
42,218
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
Salaries and employee benefits
|
77,038
|
73,018
|
71,923
|
74,135
|
67,906
|
Occupancy expense, net
|
11,578
|
11,620
|
11,674
|
11,004
|
10,023
|
Furniture and equipment expense
|
5,051
|
5,392
|
5,394
|
5,104
|
4,775
|
Other real estate and foreclosure expense
|
186
|
350
|
168
|
142
|
343
|
Deposit insurance
|
4,893
|
3,680
|
3,278
|
2,812
|
1,838
|
Merger-related costs
|
1,396
|
35
|
1,422
|
19,133
|
1,886
|
Other operating expenses
|
43,086
|
48,480
|
45,084
|
44,483
|
41,646
|
TOTAL NONINTEREST EXPENSE
|
143,228
|
142,575
|
138,943
|
156,813
|
128,417
|
NET INCOME
BEFORE INCOME TAXES
|
56,226
|
95,072
|
97,562
|
34,605
|
79,321
|
Provision for income taxes
|
10,637
|
11,812
|
16,959
|
7,151
|
14,226
|
NET
INCOME
|
45,589
|
83,260
|
80,603
|
27,454
|
65,095
|
Preferred stock dividends
|
-
|
-
|
-
|
-
|
-
|
NET INCOME
AVAILABLE TO COMMON STOCKHOLDERS
|
$
45,589
|
$
83,260
|
$
80,603
|
$
27,454
|
$
65,095
|
BASIC EARNINGS
PER SHARE
|
$ 0.36
|
$ 0.66
|
$ 0.63
|
$ 0.21
|
$
0.58
|
DILUTED
EARNINGS PER SHARE
|
$ 0.36
|
$ 0.65
|
$ 0.63
|
$ 0.21
|
$
0.58
|
Simmons First
National Corporation
|
|
|
|
SFNC
|
Consolidated
Risk-Based Capital
|
|
|
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ in
thousands)
|
|
|
|
|
|
Tier 1
capital
|
|
|
|
|
|
Stockholders' equity
|
$
3,339,901
|
$
3,269,362
|
$
3,157,151
|
$
3,259,895
|
$
2,961,607
|
CECL
transition provision (1)
|
61,746
|
92,619
|
92,619
|
92,619
|
92,619
|
Disallowed
intangible assets, net of deferred tax
|
(1,410,141)
|
(1,412,667)
|
(1,416,453)
|
(1,423,323)
|
(1,224,691)
|
Unrealized
loss (gain) on AFS securities
|
470,681
|
517,560
|
567,730
|
450,428
|
326,961
|
Total Tier 1
capital
|
2,462,187
|
2,466,874
|
2,401,047
|
2,379,619
|
2,156,496
|
|
|
|
|
|
|
Tier 2
capital
|
|
|
|
|
|
Subordinated notes and debentures
|
366,027
|
365,989
|
365,951
|
421,693
|
384,242
|
Qualifying
allowance for loan losses and
|
|
|
|
|
|
reserve for unfunded
commitments
|
173,077
|
115,627
|
116,257
|
114,733
|
78,057
|
Total Tier 2
capital
|
539,104
|
481,616
|
482,208
|
536,426
|
462,299
|
Total risk-based
capital
|
$
3,001,291
|
$
2,948,490
|
$
2,883,255
|
$
2,916,045
|
$
2,618,795
|
|
|
|
|
|
|
Risk weighted
assets
|
$ 20,748,605
|
$ 20,738,727
|
$ 20,470,918
|
$ 19,669,149
|
$ 15,953,622
|
|
|
|
|
|
|
Adjusted average assets
for leverage ratio
|
$ 26,632,691
|
$ 26,407,061
|
$ 25,986,938
|
$ 25,807,113
|
$ 23,966,206
|
|
|
|
|
|
|
Ratios at end of
quarter
|
|
|
|
|
|
Equity to
assets
|
12.11 %
|
11.91 %
|
11.66 %
|
11.98 %
|
12.10 %
|
Tangible
common equity to tangible assets (2)
|
7.25 %
|
7.00 %
|
6.69 %
|
7.03 %
|
7.37 %
|
Common
equity Tier 1 ratio (CET1)
|
11.87 %
|
11.90 %
|
11.73 %
|
12.10 %
|
13.52 %
|
Tier 1
leverage ratio
|
9.24 %
|
9.34 %
|
9.24 %
|
9.22 %
|
9.00 %
|
Tier 1
risk-based capital ratio
|
11.87 %
|
11.90 %
|
11.73 %
|
12.10 %
|
13.52 %
|
Total
risk-based capital ratio
|
14.47 %
|
14.22 %
|
14.08 %
|
14.83 %
|
16.42 %
|
|
|
|
|
|
|
(1) The Company has
elected to use the CECL transition provision allowed for in the
year of adopting ASC 326.
|
(2) Calculations of
tangible common equity to tangible assets and the reconciliations
to GAAP are included in the schedules accompanying this release.
|
Simmons First
National Corporation
|
|
|
|
SFNC
|
Consolidated
Investment Securities
|
|
|
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ in
thousands)
|
|
|
|
|
|
Investment
Securities - End of Period
|
|
|
|
|
|
Held-to-Maturity
|
|
|
|
|
|
U.S.
Government agencies
|
$ 451,052
|
$ 448,012
|
$ 447,400
|
$ 446,789
|
$
232,670
|
Mortgage-backed securities
|
1,201,418
|
1,190,781
|
1,214,882
|
1,244,713
|
112,496
|
State and political subdivisions
|
1,859,970
|
1,860,992
|
1,865,203
|
1,868,924
|
1,194,459
|
Other securities
|
253,043
|
259,921
|
259,591
|
259,256
|
17,200
|
Total
held-to-maturity (net of credit losses)
|
3,765,483
|
3,759,706
|
3,787,076
|
3,819,682
|
1,556,825
|
Available-for-Sale
|
|
|
|
|
|
U.S.
Treasury
|
$
2,220
|
$
2,197
|
$
2,191
|
$
1,441
|
$
-
|
U.S.
Government agencies
|
181,843
|
184,279
|
188,060
|
198,333
|
333,231
|
Mortgage-backed securities
|
2,433,530
|
2,542,902
|
2,670,348
|
2,963,934
|
4,166,108
|
State and political subdivisions
|
895,896
|
871,074
|
822,509
|
915,255
|
1,653,694
|
Other securities
|
242,467
|
252,402
|
254,435
|
262,684
|
487,036
|
Total
available-for-sale (net of credit losses)
|
3,755,956
|
3,852,854
|
3,937,543
|
4,341,647
|
6,640,069
|
Total investment
securities (net of credit losses)
|
$
7,521,439
|
$
7,612,560
|
$
7,724,619
|
$
8,161,329
|
$ 8,196,894
|
Fair value - HTM
investment securities
|
$
3,148,976
|
$
3,063,233
|
$
2,984,040
|
$
3,278,962
|
$ 1,307,058
|
Simmons First
National Corporation
|
|
|
|
SFNC
|
Consolidated
Loans
|
|
|
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ in
thousands)
|
|
|
|
|
|
Loan Portfolio - End
of Period
|
|
|
|
|
|
Consumer:
|
|
|
|
|
|
Credit cards
|
$ 188,590
|
$ 196,928
|
$ 192,559
|
$ 189,684
|
$ 184,372
|
Other consumer
|
142,817
|
152,882
|
180,604
|
204,692
|
180,602
|
Total
consumer
|
331,407
|
349,810
|
373,163
|
394,376
|
364,974
|
Real
Estate:
|
|
|
|
|
|
Construction
|
2,777,122
|
2,566,649
|
2,372,294
|
2,082,688
|
1,423,445
|
Single-family residential
|
2,589,831
|
2,546,115
|
2,467,008
|
2,357,942
|
2,042,978
|
Other commercial real estate
|
7,520,964
|
7,468,498
|
7,249,891
|
7,082,055
|
5,762,567
|
Total real
estate
|
12,887,917
|
12,581,262
|
12,089,193
|
11,522,685
|
9,228,990
|
Commercial:
|
|
|
|
|
|
Commercial
|
2,669,731
|
2,632,290
|
2,525,218
|
2,612,256
|
2,016,405
|
Agricultural
|
220,641
|
205,623
|
263,539
|
218,743
|
150,465
|
Total
commercial
|
2,890,372
|
2,837,913
|
2,788,757
|
2,830,999
|
2,166,870
|
Other
|
445,402
|
373,139
|
356,022
|
362,284
|
267,759
|
Total
loans
|
$ 16,555,098
|
$ 16,142,124
|
$ 15,607,135
|
$ 15,110,344
|
$ 12,028,593
|
Simmons First
National Corporation
|
|
|
|
SFNC
|
Consolidated
Allowance and Asset Quality
|
|
|
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ in
thousands)
|
|
|
|
|
|
Allowance for Credit
Losses on Loans
|
|
|
|
|
|
Beginning
balance
|
$
196,955
|
$
197,589
|
$
212,611
|
$ 178,924
|
$
205,332
|
|
|
|
|
|
|
Day 1 PCD
allowance from acquisitions:
|
|
|
|
|
|
Spirit of Texas (04/08/2022)
|
-
|
4,523
|
1,057
|
4,043
|
-
|
Total Day 1 PCD
allowance
|
-
|
4,523
|
1,057
|
4,043
|
-
|
|
|
|
|
|
|
Loans charged
off:
|
|
|
|
|
|
Credit cards
|
1,076
|
1,035
|
903
|
1,004
|
920
|
Other consumer
|
456
|
439
|
505
|
518
|
414
|
Real
estate
|
1,204
|
3,392
|
130
|
115
|
485
|
Commercial
|
413
|
5,389
|
1,874
|
688
|
6,319
|
Total loans
charged off
|
3,149
|
10,255
|
3,412
|
2,325
|
8,138
|
|
|
|
|
|
|
Recoveries of
loans previously charged off:
|
|
|
|
|
|
Credit cards
|
234
|
251
|
250
|
249
|
274
|
Other consumer
|
240
|
230
|
278
|
302
|
387
|
Real
estate
|
294
|
4,117
|
1,982
|
391
|
426
|
Commercial
|
1,067
|
475
|
720
|
621
|
557
|
Total
recoveries
|
1,835
|
5,073
|
3,230
|
1,563
|
1,644
|
Net
loans charged off
|
1,314
|
5,182
|
182
|
762
|
6,494
|
Provision for
credit losses on loans
|
10,916
|
25
|
(15,897)
|
30,406
|
(19,914)
|
Balance, end of
quarter
|
$
206,557
|
$
196,955
|
$
197,589
|
$ 212,611
|
$
178,924
|
|
|
|
|
|
|
Nonperforming
assets
|
|
|
|
|
|
Nonperforming
loans:
|
|
|
|
|
|
Nonaccrual loans
|
$ 63,218
|
$
58,434
|
$
57,534
|
$
62,670
|
$ 64,096
|
Loans past due 90 days or more
|
437
|
507
|
242
|
904
|
240
|
Total
nonperforming loans
|
63,655
|
58,941
|
57,776
|
63,574
|
64,336
|
Other
nonperforming assets:
|
|
|
|
|
|
Foreclosed
assets and other real estate owned
|
2,721
|
2,887
|
3,612
|
4,084
|
5,118
|
Other nonperforming assets
|
5,012
|
644
|
1,146
|
2,314
|
1,479
|
Total other
nonperforming assets
|
7,733
|
3,531
|
4,758
|
6,398
|
6,597
|
Total nonperforming assets
|
$ 71,388
|
$
62,472
|
$
62,534
|
$
69,972
|
$ 70,933
|
Performing FDMs
(modifications to borrowers
|
|
|
|
|
|
experiencing financial difficulty)
|
$
2,183
|
$ 1,849
|
$ 1,869
|
$ 2,655
|
$
3,424
|
|
|
|
|
|
|
Ratios
|
|
|
|
|
|
Allowance for
credit losses on loans to total loans
|
1.25 %
|
1.22 %
|
1.27 %
|
1.41 %
|
1.49 %
|
Allowance for
credit losses to nonperforming loans
|
324 %
|
334 %
|
342 %
|
334 %
|
278 %
|
Nonperforming
loans to total loans
|
0.38 %
|
0.37 %
|
0.37 %
|
0.42 %
|
0.53 %
|
Nonperforming
assets (including performing FDMs)
|
|
|
|
|
|
to total
assets
|
0.27 %
|
0.23 %
|
0.24 %
|
0.27 %
|
0.30 %
|
Nonperforming
assets to total assets
|
0.26 %
|
0.23 %
|
0.23 %
|
0.26 %
|
0.29 %
|
Annualized net
charge offs to average loans (QTD)
|
0.03 %
|
0.13 %
|
0.00 %
|
0.02 %
|
0.22 %
|
Annualized net
charge offs to average loans (YTD)
|
0.03 %
|
0.09 %
|
0.07 %
|
0.11 %
|
0.22 %
|
Annualized net
credit card charge offs to
|
|
|
|
|
|
average
credit card loans
|
1.69 %
|
1.52 %
|
1.30 %
|
1.55 %
|
1.39 %
|
Simmons First
National Corporation
|
|
|
|
|
|
|
|
SFNC
|
Consolidated -
Average Balance Sheet and Net Interest Income
Analysis
|
|
|
|
|
For the
Quarters Ended
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
Mar 2023
|
|
Three Months
Ended
Dec 2022
|
|
Three Months
Ended
Mar 2022
|
($ 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
|
$ 315,307
|
$ 2,783
|
3.58 %
|
|
$ 361,856
|
$ 2,593
|
2.84 %
|
|
$
1,728,694
|
$
649
|
0.15 %
|
Investment
securities - taxable
|
4,930,945
|
32,804
|
2.70 %
|
|
5,085,960
|
29,645
|
2.31 %
|
|
5,688,306
|
18,148
|
1.29 %
|
Investment
securities - non-taxable (FTE)
|
2,624,642
|
21,522
|
3.33 %
|
|
2,582,050
|
22,123
|
3.40 %
|
|
2,844,777
|
20,937
|
2.98 %
|
Mortgage
loans held for sale
|
5,470
|
82
|
6.08 %
|
|
8,601
|
152
|
7.01 %
|
|
27,633
|
190
|
2.79 %
|
Other
loans held for sale
|
-
|
-
|
0.00 %
|
|
1,704
|
59
|
13.74 %
|
|
-
|
-
|
0.00 %
|
Loans -
including fees (FTE)
|
16,329,761
|
228,257
|
5.67 %
|
|
15,929,957
|
216,782
|
5.40 %
|
|
11,895,805
|
127,405
|
4.34 %
|
Total interest earning
assets (FTE)
|
24,206,125
|
285,448
|
4.78 %
|
|
23,970,128
|
271,354
|
4.49 %
|
|
22,185,215
|
167,329
|
3.06 %
|
Non-earning assets
|
3,282,607
|
|
|
|
3,210,447
|
|
|
|
2,640,984
|
|
|
Total assets
|
$ 27,488,732
|
|
|
|
$ 27,180,575
|
|
|
|
$ 24,826,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
bearing transaction and
|
|
|
|
|
|
|
|
|
|
|
|
savings accounts
|
$ 11,722,591
|
$
47,990
|
1.66 %
|
|
$ 11,859,322
|
$
34,615
|
1.16 %
|
|
$ 12,083,516
|
$ 4,314
|
0.14 %
|
Time
deposits
|
5,155,055
|
39,538
|
3.11 %
|
|
4,212,271
|
22,434
|
2.11 %
|
|
2,241,123
|
2,503
|
0.45 %
|
Total interest bearing
deposits
|
16,877,646
|
87,528
|
2.10 %
|
|
16,071,593
|
57,049
|
1.41 %
|
|
14,324,639
|
6,817
|
0.19 %
|
Federal
funds purchased and securities
|
|
|
|
|
|
|
|
|
|
|
|
sold under agreement to
repurchase
|
148,673
|
323
|
0.88 %
|
|
178,948
|
449
|
1.00 %
|
|
218,186
|
68
|
0.13 %
|
Other
borrowings
|
787,783
|
8,848
|
4.56 %
|
|
923,189
|
9,263
|
3.98 %
|
|
1,337,654
|
4,779
|
1.45 %
|
Subordinated notes and debentures
|
366,009
|
4,603
|
5.10 %
|
|
365,971
|
4,797
|
5.20 %
|
|
384,187
|
4,457
|
4.70 %
|
Total interest bearing
liabilities
|
18,180,111
|
101,302
|
2.26 %
|
|
17,539,701
|
71,558
|
1.62 %
|
|
16,264,666
|
16,121
|
0.40 %
|
Noninterest bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing deposits
|
5,642,779
|
|
|
|
6,161,732
|
|
|
|
5,184,828
|
|
|
Other
liabilities
|
295,191
|
|
|
|
264,230
|
|
|
|
207,597
|
|
|
Total
liabilities
|
24,118,081
|
|
|
|
23,965,663
|
|
|
|
21,657,091
|
|
|
Stockholders'
equity
|
3,370,651
|
|
|
|
3,214,912
|
|
|
|
3,169,108
|
|
|
Total liabilities and
stockholders' equity
|
$ 27,488,732
|
|
|
|
$ 27,180,575
|
|
|
|
$ 24,826,199
|
|
|
Net interest income
(FTE)
|
|
$
184,146
|
|
|
|
$
199,796
|
|
|
|
$
151,208
|
|
Net interest spread
(FTE)
|
|
|
2.52 %
|
|
|
|
2.87 %
|
|
|
|
2.66 %
|
Net interest margin
(FTE)
|
|
|
3.09 %
|
|
|
|
3.31 %
|
|
|
|
2.76 %
|
Simmons First
National Corporation
|
|
|
|
SFNC
|
Consolidated -
Selected Financial Data
|
|
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ in thousands,
except share data)
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Financial Highlights -
As Reported
|
|
|
|
|
|
Net Income
|
$
45,589
|
$
83,260
|
$
80,603
|
$
27,454
|
$
65,095
|
Diluted earnings per
share
|
0.36
|
0.65
|
0.63
|
0.21
|
0.58
|
Return on average
assets
|
0.67 %
|
1.22 %
|
1.19 %
|
0.41 %
|
1.06 %
|
Return on average
common equity
|
5.49 %
|
10.27 %
|
9.71 %
|
3.28 %
|
8.33 %
|
Return on tangible
common equity (non-GAAP) (1)
|
10.25 %
|
19.29 %
|
17.99 %
|
6.28 %
|
14.31 %
|
Net interest margin
(FTE)
|
3.09 %
|
3.31 %
|
3.34 %
|
3.24 %
|
2.76 %
|
Efficiency ratio
(2)
|
62.28 %
|
58.33 %
|
57.22 %
|
67.77 %
|
66.39 %
|
FTE
adjustment
|
6,311
|
6,770
|
6,203
|
6,096
|
5,602
|
Average diluted shares
outstanding
|
127,516,478
|
127,505,996
|
128,336,422
|
128,720,078
|
113,026,911
|
Shares repurchased
under plan
|
-
|
-
|
1,883,713
|
2,035,324
|
513,725
|
Average price of shares
repurchased
|
-
|
-
|
23.91
|
24.59
|
31.25
|
Cash dividends declared
per common share
|
0.200
|
0.190
|
0.190
|
0.190
|
0.190
|
Accretable yield on
acquired loans
|
2,579
|
4,473
|
5,834
|
9,898
|
3,703
|
Financial Highlights -
Adjusted (non-GAAP) (1)
|
|
|
|
|
|
Adjusted
earnings
|
$
47,343
|
$
81,093
|
$
82,281
|
$
68,102
|
$
67,159
|
Adjusted diluted
earnings per share
|
0.37
|
0.64
|
0.64
|
0.53
|
0.59
|
Adjusted return on
average assets
|
0.70 %
|
1.18 %
|
1.21 %
|
1.02 %
|
1.10 %
|
Adjusted return on
average common equity
|
5.70 %
|
10.01 %
|
9.92 %
|
8.13 %
|
8.59 %
|
Adjusted return on
tangible common equity
|
10.62 %
|
18.81 %
|
18.35 %
|
14.65 %
|
14.74 %
|
Adjusted efficiency
ratio (2)
|
59.38 %
|
56.97 %
|
54.41 %
|
56.74 %
|
62.95 %
|
YEAR-TO-DATE
|
|
|
|
|
|
Financial Highlights -
GAAP
|
|
|
|
|
|
Net Income
|
$
45,589
|
$ 256,412
|
$ 173,152
|
$
92,549
|
$
65,095
|
Diluted earnings per
share
|
0.36
|
2.06
|
1.40
|
0.77
|
0.58
|
Return on average
assets
|
0.67 %
|
0.97 %
|
0.88 %
|
0.72 %
|
1.06 %
|
Return on average
common equity
|
5.49 %
|
7.87 %
|
7.07 %
|
5.71 %
|
8.33 %
|
Return on tangible
common equity (non-GAAP) (1)
|
10.25 %
|
14.33 %
|
12.77 %
|
10.24 %
|
14.31 %
|
Net interest margin
(FTE)
|
3.09 %
|
3.17 %
|
3.12 %
|
3.01 %
|
2.76 %
|
Efficiency ratio
(2)
|
62.28 %
|
62.14 %
|
63.54 %
|
67.14 %
|
66.39 %
|
FTE
adjustment
|
6,311
|
24,671
|
17,901
|
11,698
|
5,602
|
Average diluted shares
outstanding
|
127,516,478
|
124,470,184
|
123,387,503
|
120,826,798
|
113,026,911
|
Cash dividends declared
per common share
|
0.200
|
0.760
|
0.570
|
0.380
|
0.190
|
Financial Highlights -
Adjusted (non-GAAP) (1)
|
|
|
|
|
|
Adjusted
earnings
|
$
47,343
|
$ 298,635
|
$ 217,542
|
$ 135,261
|
$
67,159
|
Adjusted diluted
earnings per share
|
0.37
|
2.40
|
1.76
|
1.12
|
0.59
|
Adjusted return on
average assets
|
0.70 %
|
1.13 %
|
1.11 %
|
1.06 %
|
1.10 %
|
Adjusted return on
average common equity
|
5.70 %
|
9.16 %
|
8.88 %
|
8.35 %
|
8.59 %
|
Adjusted return on
tangible common equity
|
10.62 %
|
16.59 %
|
15.89 %
|
14.70 %
|
14.74 %
|
Adjusted efficiency
ratio (2)
|
59.38 %
|
57.50 %
|
57.69 %
|
59.56 %
|
62.95 %
|
END OF
PERIOD
|
|
|
|
|
|
Book value per
share
|
$
26.24
|
$
25.73
|
$
24.87
|
$
25.31
|
$
26.32
|
Tangible book value per
share
|
14.88
|
14.33
|
13.51
|
14.07
|
15.22
|
Shares
outstanding
|
127,282,192
|
127,046,654
|
126,943,467
|
128,787,764
|
112,505,555
|
Full-time equivalent
employees
|
3,189
|
3,236
|
3,206
|
3,233
|
2,893
|
Total number of
financial centers
|
231
|
230
|
230
|
233
|
197
|
|
|
|
|
|
|
(1) Non-GAAP
measurement that management believes aids in the understanding and
discussion of results. Reconciliations to GAAP
are included in the
schedules accompanying this release.
|
(2) Efficiency ratio
is noninterest expense as a percent of net interest income (fully
taxable equivalent) and noninterest revenues. Adjusted efficiency
ratio is noninterest expense before foreclosed property expense,
amortization of intangibles and certain adjusting items as a
percent of net interest income (fully taxable equivalent)
and noninterest revenues, excluding gains and losses
from securities transactions and certain adjusting items, and
is a non-GAAP measurement.
|
Simmons First
National Corporation
|
|
|
|
SFNC
|
Reconciliation
Of Non-GAAP Financial Measures - Adjusted Earnings -
Quarter-to-Date
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
(in thousands,
except per share data)
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Net income available to
common stockholders
|
$ 45,589
|
$
83,260
|
$
80,603
|
$
27,454
|
$ 65,095
|
Certain
items:
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
-
|
(750)
|
-
|
-
|
Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
1,738
|
-
|
Merger related
costs
|
1,396
|
35
|
1,422
|
19,133
|
1,886
|
Branch right sizing
(net)
|
979
|
1,104
|
1,235
|
380
|
909
|
Day 2 CECL
provision
|
-
|
-
|
-
|
33,779
|
-
|
Tax effect
(1)
|
(621)
|
768
|
(594)
|
(14,382)
|
(731)
|
Certain items, net of tax
|
1,754
|
(2,167)
|
1,678
|
40,648
|
2,064
|
Adjusted earnings
(non-GAAP)
|
$ 47,343
|
$
81,093
|
$
82,281
|
$
68,102
|
$ 67,159
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.36
|
$
0.65
|
$
0.63
|
$ 0.21
|
$
0.58
|
Certain
items:
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
-
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
-
|
(0.01)
|
-
|
-
|
Gain on insurance
settlement
|
-
|
(0.03)
|
|
|
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
0.01
|
-
|
Merger related
costs
|
0.01
|
-
|
0.01
|
0.15
|
0.01
|
Branch right sizing
(net)
|
0.01
|
0.01
|
0.01
|
-
|
0.01
|
Day 2 CECL
provision
|
-
|
-
|
-
|
0.27
|
|
Tax effect
(1)
|
(0.01)
|
0.01
|
-
|
(0.11)
|
(0.01)
|
Certain items, net of tax
|
0.01
|
(0.01)
|
0.01
|
0.32
|
0.01
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
0.37
|
$
0.64
|
$
0.64
|
$ 0.53
|
$
0.59
|
|
|
|
|
|
|
(1) Effective
tax rate of 26.135%.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Certain Noninterest Income and Expense Items
(non-GAAP)
|
|
|
|
|
|
|
|
|
|
QUARTER-TO-DATE
|
|
|
|
|
|
Noninterest income
|
$ 45,835
|
$
44,647
|
$
43,023
|
$
40,178
|
$ 42,218
|
Certain noninterest
income items (1)
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
-
|
(750)
|
-
|
-
|
Branch right sizing
income
|
-
|
-
|
65
|
88
|
-
|
Adjusted noninterest income (non-GAAP)
|
$ 45,835
|
$
40,573
|
$
42,703
|
$
40,266
|
$ 42,218
|
|
|
|
|
|
|
Other income
|
$ 11,256
|
$ 6,600
|
$ 6,658
|
$ 6,837
|
$
7,266
|
Certain other income
items (1)
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
-
|
(750)
|
-
|
-
|
Branch right sizing
income
|
-
|
-
|
65
|
88
|
-
|
Adjusted other income (non-GAAP)
|
$ 11,256
|
$ 6,600
|
$ 6,338
|
$ 6,925
|
$
7,266
|
|
|
|
|
|
|
Noninterest expense
|
$
143,228
|
$
142,575
|
$
138,943
|
$ 156,813
|
$
128,417
|
Certain noninterest
expense items (1)
|
|
|
|
|
|
Merger related
costs
|
(1,396)
|
(35)
|
(1,422)
|
(19,133)
|
(1,886)
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
(1,738)
|
-
|
Branch right sizing
expense
|
(979)
|
(1,104)
|
(1,170)
|
(292)
|
(909)
|
Adjusted noninterest expense (non-GAAP)
|
$
140,853
|
$
141,436
|
$
136,351
|
$ 135,650
|
$
125,622
|
|
|
|
|
|
|
Other operating expenses
|
$ 43,086
|
$
48,480
|
$
45,084
|
$
44,483
|
$ 41,646
|
Certain other operating
expenses items (1)
|
|
|
|
|
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
(1,738)
|
-
|
Branch right sizing
expense
|
(816)
|
(953)
|
(973)
|
(7)
|
(717)
|
Adjusted other operating expenses (non-GAAP)
|
$ 42,270
|
$
47,527
|
$
44,111
|
$
42,738
|
$ 40,929
|
|
|
|
|
|
|
(1) Certain
items include gain from early retirement of trust preferred
securities, gain on sale of intellectual property, gain on
insurance settlement,
donation to Simmons First Foundation, merger related costs, branch
right sizing costs and Day 2 CECL provision.
|
Simmons First
National Corporation
|
|
|
|
SFNC
|
Reconciliation
Of Non-GAAP Financial Measures - Adjusted Earnings -
Year-to-Date
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
(in thousands,
except per share data)
|
|
|
|
|
|
YEAR-TO-DATE
|
|
|
|
|
|
Net income available to
common stockholders
|
$ 45,589
|
$
256,412
|
$
173,152
|
$
92,549
|
$ 65,095
|
Certain
items:
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
365
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
(750)
|
(750)
|
-
|
-
|
Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
1,738
|
1,738
|
1,738
|
-
|
Merger related
costs
|
1,396
|
22,476
|
22,441
|
21,019
|
1,886
|
Branch right sizing
(net)
|
979
|
3,628
|
2,524
|
1,289
|
909
|
Day 2 CECL
provision
|
-
|
33,779
|
33,779
|
33,779
|
-
|
Tax effect
(1)
|
(621)
|
(14,939)
|
(15,707)
|
(15,113)
|
(731)
|
Certain items, net of tax
|
1,754
|
42,223
|
44,390
|
42,712
|
2,064
|
Adjusted earnings
(non-GAAP)
|
$ 47,343
|
$
298,635
|
$
217,542
|
$ 135,261
|
$ 67,159
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.36
|
$
2.06
|
$
1.40
|
$ 0.77
|
$
0.58
|
Certain
items:
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
-
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
(0.01)
|
(0.01)
|
-
|
-
|
Gain on insurance
settlement
|
-
|
(0.03)
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
0.01
|
0.01
|
0.01
|
-
|
Merger related
costs
|
0.01
|
0.18
|
0.18
|
0.17
|
0.01
|
Branch right sizing
(net)
|
0.01
|
0.03
|
0.02
|
0.01
|
0.01
|
Day 2 CECL
provision
|
-
|
0.28
|
0.28
|
0.28
|
|
Tax effect
(1)
|
(0.01)
|
(0.12)
|
(0.12)
|
(0.12)
|
(0.01)
|
Certain items, net of tax
|
0.01
|
0.34
|
0.36
|
0.35
|
0.01
|
Adjusted diluted
earnings per share (non-GAAP)
|
$
0.37
|
$
2.40
|
$
1.76
|
$ 1.12
|
$
0.59
|
|
|
|
|
|
|
(1) Effective
tax rate of 26.135%.
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Certain Noninterest Income and Expense Items
(non-GAAP)
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE
|
|
|
|
|
|
Noninterest income
|
$ 45,835
|
$
170,066
|
$
125,419
|
$
82,396
|
$ 42,218
|
Certain noninterest
income items (1)
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
(Gain) loss from early
retirement of TruPS
|
-
|
365
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
(750)
|
(750)
|
-
|
-
|
Branch right sizing
income
|
-
|
153
|
153
|
88
|
-
|
Adjusted noninterest income (non-GAAP)
|
$ 45,835
|
$
165,760
|
$
125,187
|
$
82,484
|
$ 42,218
|
|
|
|
|
|
|
Other income
|
$ 11,256
|
$
27,361
|
$
20,761
|
$
14,103
|
$
7,266
|
Certain other income
items (1)
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
365
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
(750)
|
(750)
|
-
|
-
|
Branch right sizing
income
|
-
|
153
|
153
|
88
|
-
|
Adjusted other income (non-GAAP)
|
$ 11,256
|
$
27,129
|
$
20,529
|
$
14,191
|
$
7,266
|
|
|
|
|
|
|
Noninterest expense
|
$
143,228
|
$
566,748
|
$
424,173
|
$ 285,230
|
$
128,417
|
Certain noninterest
expense items (1)
|
|
|
|
|
|
Merger related
costs
|
(1,396)
|
(22,476)
|
(22,441)
|
(21,019)
|
(1,886)
|
Donation to Simmons
First Foundation
|
-
|
(1,738)
|
(1,738)
|
(1,738)
|
-
|
Branch right sizing
expense
|
(979)
|
(3,475)
|
(2,371)
|
(1,201)
|
(909)
|
Adjusted noninterest expense (non-GAAP)
|
$
140,853
|
$
539,059
|
$
397,623
|
$ 261,272
|
$
125,622
|
|
|
|
|
|
|
Other operating expenses
|
$ 43,086
|
$
179,693
|
$
131,213
|
$
86,129
|
$ 41,646
|
Certain other operating
expenses items (1)
|
|
|
|
|
|
Donation to Simmons
First Foundation
|
-
|
(1,738)
|
(1,738)
|
(1,738)
|
-
|
Branch right sizing
expense
|
(816)
|
(2,650)
|
(1,697)
|
(724)
|
(717)
|
Adjusted other operating expenses (non-GAAP)
|
$ 42,270
|
$
175,305
|
$
127,778
|
$
83,667
|
$ 40,929
|
|
|
|
|
|
|
(1) Certain
items include gain from early retirement of trust preferred
securities, gain on sale of intellectual property, gain on
insurance settlement,
donation to Simmons First Foundation, merger related costs, branch
right sizing costs and Day 2 CECL provision.
|
Simmons First
National Corporation
|
|
|
|
|
SFNC
|
Reconciliation
Of Non-GAAP Financial Measures - End of Period
|
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ 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
|
$
3,339,901
|
$
3,269,362
|
$
3,157,151
|
$
3,259,895
|
$
2,961,607
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,319,598)
|
(1,309,000)
|
(1,310,528)
|
(1,147,007)
|
Other
intangible assets
|
(124,854)
|
(128,951)
|
(133,059)
|
(137,285)
|
(102,748)
|
Total
intangibles
|
(1,445,653)
|
(1,448,549)
|
(1,442,059)
|
(1,447,813)
|
(1,249,755)
|
Tangible common
stockholders' equity
|
$
1,894,248
|
$
1,820,813
|
$
1,715,092
|
$
1,812,082
|
$
1,711,852
|
|
|
|
|
|
|
Total assets
|
$ 27,583,446
|
$ 27,461,061
|
$ 27,076,074
|
$ 27,218,609
|
$ 24,482,268
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,319,598)
|
(1,309,000)
|
(1,310,528)
|
(1,147,007)
|
Other
intangible assets
|
(124,854)
|
(128,951)
|
(133,059)
|
(137,285)
|
(102,748)
|
Total
intangibles
|
(1,445,653)
|
(1,448,549)
|
(1,442,059)
|
(1,447,813)
|
(1,249,755)
|
Tangible
assets
|
$ 26,137,793
|
$ 26,012,512
|
$ 25,634,015
|
$ 25,770,796
|
$ 23,232,513
|
|
|
|
|
|
|
Ratio of common equity
to assets
|
12.11 %
|
11.91 %
|
11.66 %
|
11.98 %
|
12.10 %
|
Ratio of tangible
common equity to tangible assets
|
7.25 %
|
7.00 %
|
6.69 %
|
7.03 %
|
7.37 %
|
|
|
|
|
|
|
Calculation of
Tangible Book Value per Share
|
|
|
|
|
|
|
|
|
|
|
|
Total common
stockholders' equity
|
$
3,339,901
|
$
3,269,362
|
$
3,157,151
|
$
3,259,895
|
$
2,961,607
|
Intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,320,799)
|
(1,319,598)
|
(1,309,000)
|
(1,310,528)
|
(1,147,007)
|
Other
intangible assets
|
(124,854)
|
(128,951)
|
(133,059)
|
(137,285)
|
(102,748)
|
Total
intangibles
|
(1,445,653)
|
(1,448,549)
|
(1,442,059)
|
(1,447,813)
|
(1,249,755)
|
Tangible common
stockholders' equity
|
$
1,894,248
|
$
1,820,813
|
$
1,715,092
|
$
1,812,082
|
$
1,711,852
|
Shares of common stock
outstanding
|
127,282,192
|
127,046,654
|
126,943,467
|
128,787,764
|
112,505,555
|
Book value per common
share
|
$
26.24
|
$
25.73
|
$
24.87
|
$
25.31
|
$
26.32
|
Tangible book value per
common share
|
$
14.88
|
$
14.33
|
$
13.51
|
$
14.07
|
$
15.22
|
|
|
|
|
|
|
Calculation of
Uninsured Deposit Coverage Ratio
|
|
|
|
|
|
|
|
|
|
|
|
Uninsured deposits at
Simmons Bank
|
$
5,896,752
|
$
7,267,220
|
|
|
$
6,414,459
|
Less: Intercompany
eliminations
|
628,592
|
527,542
|
|
|
504,306
|
Total uninsured
deposits
|
$
5,268,160
|
$
6,739,678
|
|
|
$
5,910,153
|
|
|
|
|
|
|
FHLB borrowing
availability
|
$
5,574,000
|
$
5,442,000
|
|
|
$
3,597,000
|
Unpledged
securities
|
3,000,000
|
3,180,000
|
|
|
4,335,000
|
Fed funds lines, Fed
discount window and
|
|
|
|
|
|
Bank Term
Funding Program
|
2,206,000
|
1,982,000
|
|
|
426,000
|
Additional liquidity
sources
|
$ 10,780,000
|
$ 10,604,000
|
|
|
$
8,358,000
|
|
|
|
|
|
|
Uninsured deposit
coverage ratio
|
2.0
|
1.6
|
|
|
1.4
|
Simmons First
National Corporation
|
|
|
|
SFNC
|
Reconciliation
Of Non-GAAP Financial Measures -
Quarter-to-Date
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ in
thousands)
|
|
|
|
|
|
Calculation of
Adjusted Return on Average Assets
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
45,589
|
$
83,260
|
$
80,603
|
$
27,454
|
$
65,095
|
Certain items
(non-GAAP)
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
-
|
(750)
|
-
|
-
|
Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
1,738
|
-
|
Merger related
costs
|
1,396
|
35
|
1,422
|
19,133
|
1,886
|
Branch right sizing
(net)
|
979
|
1,104
|
1,235
|
380
|
909
|
Day 2 CECL
provision
|
-
|
-
|
-
|
33,779
|
-
|
Tax effect of certain
items (2)
|
(621)
|
768
|
(594)
|
(14,382)
|
(731)
|
Adjusted earnings
(non-GAAP)
|
$
47,343
|
$
81,093
|
$
82,281
|
$
68,102
|
$
67,159
|
|
|
|
|
|
|
Average total
assets
|
$ 27,488,732
|
$ 27,180,575
|
$ 26,868,731
|
$ 26,769,032
|
$ 24,826,199
|
|
|
|
|
|
|
Return on average
assets
|
0.67 %
|
1.22 %
|
1.19 %
|
0.41 %
|
1.06 %
|
Adjusted return on
average assets (non-GAAP)
|
0.70 %
|
1.18 %
|
1.21 %
|
1.02 %
|
1.10 %
|
|
|
|
|
|
|
Calculation of
Return on Tangible Common Equity
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
45,589
|
$
83,260
|
$
80,603
|
$
27,454
|
$
65,095
|
Amortization of
intangibles, net of taxes
|
3,026
|
3,035
|
3,121
|
3,025
|
2,575
|
Total income available
to common stockholders
|
$
48,615
|
$
86,295
|
$
83,724
|
$
30,479
|
$
67,670
|
Certain items
(non-GAAP)
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
-
|
(750)
|
-
|
-
|
Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
1,738
|
-
|
Merger related
costs
|
1,396
|
35
|
1,422
|
19,133
|
1,886
|
Branch right sizing
(net)
|
979
|
1,104
|
1,235
|
380
|
909
|
Day 2 CECL
provision
|
-
|
-
|
-
|
33,779
|
-
|
Tax effect of certain
items (2)
|
(621)
|
768
|
(594)
|
(14,382)
|
(731)
|
Adjusted earnings
(non-GAAP)
|
47,343
|
81,093
|
82,281
|
68,102
|
67,159
|
Amortization of
intangibles, net of taxes
|
3,026
|
3,035
|
3,121
|
3,025
|
2,575
|
Total adjusted earnings
available to common stockholders (non-GAAP)
|
$
50,369
|
$
84,128
|
$
85,402
|
$
71,127
|
$
69,734
|
|
|
|
|
|
|
Average common
stockholders' equity
|
$
3,370,651
|
$
3,214,912
|
$
3,292,071
|
$
3,361,703
|
$
3,169,108
|
Average intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,319,624)
|
(1,309,124)
|
(1,309,804)
|
(1,299,821)
|
(1,146,034)
|
Other
intangibles
|
(127,394)
|
(131,229)
|
(135,718)
|
(114,195)
|
(104,905)
|
Total average
intangibles
|
(1,447,018)
|
(1,440,353)
|
(1,445,522)
|
(1,414,016)
|
(1,250,939)
|
Average tangible common
stockholders' equity (non-GAAP)
|
$
1,923,633
|
$
1,774,559
|
$
1,846,549
|
$
1,947,687
|
$
1,918,169
|
|
|
|
|
|
|
Return on average
common equity
|
5.49 %
|
10.27 %
|
9.71 %
|
3.28 %
|
8.33 %
|
Return on tangible
common equity
|
10.25 %
|
19.29 %
|
17.99 %
|
6.28 %
|
14.31 %
|
Adjusted return on
average common equity (non-GAAP)
|
5.70 %
|
10.01 %
|
9.92 %
|
8.13 %
|
8.59 %
|
Adjusted return on
tangible common equity (non-GAAP)
|
10.62 %
|
18.81 %
|
18.35 %
|
14.65 %
|
14.74 %
|
|
|
|
|
|
|
Calculation of
Efficiency Ratio and Adjusted Efficiency Ratio (1)
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(efficiency ratio numerator)
|
$ 143,228
|
$ 142,575
|
$ 138,943
|
$ 156,813
|
$ 128,417
|
Certain noninterest
expense items (non-GAAP)
|
|
|
|
|
|
Merger related
costs
|
(1,396)
|
(35)
|
(1,422)
|
(19,133)
|
(1,886)
|
Donation to Simmons
First Foundation
|
-
|
-
|
-
|
(1,738)
|
-
|
Branch right sizing
expense
|
(979)
|
(1,104)
|
(1,170)
|
(292)
|
(909)
|
Other real estate and
foreclosure expense adjustment
|
(186)
|
(350)
|
(168)
|
(142)
|
(343)
|
Amortization of
intangibles adjustment
|
(4,096)
|
(4,108)
|
(4,225)
|
(4,096)
|
(3,486)
|
Adjusted efficiency
ratio numerator
|
$ 136,571
|
$ 136,978
|
$ 131,958
|
$ 131,412
|
$ 121,793
|
|
|
|
|
|
|
Net interest
income
|
$ 177,835
|
$ 193,026
|
$ 193,585
|
$ 185,099
|
$ 145,606
|
Noninterest
income
|
45,835
|
44,647
|
43,023
|
40,178
|
42,218
|
Fully tax-equivalent
adjustment (effective tax rate of 26.135%)
|
6,311
|
6,770
|
6,203
|
6,096
|
5,602
|
Efficiency ratio
denominator
|
229,981
|
244,443
|
242,811
|
231,373
|
193,426
|
|
|
|
|
|
|
Certain noninterest
income items (non-GAAP)
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
(Gain) loss from early
retirement of TruPS
|
-
|
-
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
-
|
(750)
|
-
|
-
|
Branch right sizing
income
|
-
|
-
|
65
|
88
|
-
|
(Gain) loss on sale of
securities
|
-
|
52
|
22
|
150
|
54
|
Adjusted efficiency
ratio denominator
|
$ 229,981
|
$ 240,421
|
$ 242,513
|
$ 231,611
|
$ 193,480
|
|
|
|
|
|
|
Efficiency
ratio (1)
|
62.28 %
|
58.33 %
|
57.22 %
|
67.77 %
|
66.39 %
|
Adjusted efficiency
ratio (non-GAAP) (1)
|
59.38 %
|
56.97 %
|
54.41 %
|
56.74 %
|
62.95 %
|
|
|
|
|
|
|
(1) Efficiency
ratio is noninterest expense as a percent of net interest income
(fully taxable equivalent) and noninterest revenues. Adjusted
efficiency ratio is
noninterest expense before foreclosed property expense,
amortization of intangibles and certain adjusting items as a
percent of net interest income (fully taxable equivalent) and
noninterest revenues, excluding gains and losses from securities
transactions and certain adjusting items, and is a
non-GAAP measurement.
|
(2) Effective
tax rate of 26.135%.
|
|
|
|
|
Simmons First
National Corporation
|
|
|
|
|
SFNC
|
Reconciliation
Of Non-GAAP Financial Measures - Quarter-to-Date
(continued)
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of
Pre-Provision Net Revenue (PPNR)
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$ 177,835
|
$ 193,026
|
$ 193,585
|
$ 185,099
|
$ 145,606
|
Noninterest
income
|
45,835
|
44,647
|
43,023
|
40,178
|
42,218
|
Revenue
|
223,670
|
237,673
|
236,608
|
225,277
|
187,824
|
Less: Gain (loss) on
sale of securities
|
-
|
(52)
|
(22)
|
(150)
|
(54)
|
Less: Noninterest
expense
|
143,228
|
142,575
|
138,943
|
156,813
|
128,417
|
Pre-Provision Net
Revenue (PPNR)
|
$
80,442
|
$
95,150
|
$
97,687
|
$
68,614
|
$
59,461
|
|
|
|
|
|
|
Calculation of
Adjusted Pre-Provision Net Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Pre-Provision Net
Revenue (PPNR)
|
$
80,442
|
$
95,150
|
$
97,687
|
$
68,614
|
$
59,461
|
Plus: Loss from early
retirement of TruPS
|
-
|
-
|
365
|
-
|
-
|
Less: Gain on sale of
intellectual property
|
-
|
-
|
(750)
|
-
|
-
|
Less: Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
Plus: Donation to
Simmons First Foundation
|
-
|
-
|
-
|
1,738
|
-
|
Plus: Merger related
costs
|
1,396
|
35
|
1,422
|
19,133
|
1,886
|
Plus: Branch right
sizing costs
|
979
|
1,104
|
1,235
|
380
|
909
|
Adjusted Pre-Provision
Net Revenue
|
$
82,817
|
$
92,215
|
$
99,959
|
$
89,865
|
$
62,256
|
Simmons First
National Corporation
|
|
|
|
|
SFNC
|
Reconciliation
Of Non-GAAP Financial Measures - Year-to-Date
|
|
|
|
|
For the
Quarters Ended
|
Mar
31
|
Dec
31
|
Sep
30
|
Jun
30
|
Mar
31
|
(Unaudited)
|
2023
|
2022
|
2022
|
2022
|
2022
|
($ in
thousands)
|
|
|
|
|
|
Calculation of
Adjusted Return on Average Assets
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
45,589
|
$ 256,412
|
$ 173,152
|
$
92,549
|
$
65,095
|
Certain items
(non-GAAP)
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
365
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
(750)
|
(750)
|
-
|
-
|
Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
1,738
|
1,738
|
1,738
|
-
|
Merger related
costs
|
1,396
|
22,476
|
22,441
|
21,019
|
1,886
|
Branch right sizing
(net)
|
979
|
3,628
|
2,524
|
1,289
|
909
|
Day 2 CECL
provision
|
-
|
33,779
|
33,779
|
33,779
|
-
|
Tax effect of certain
items (2)
|
(621)
|
(14,939)
|
(15,707)
|
(15,113)
|
(731)
|
Adjusted earnings
(non-GAAP)
|
$
47,343
|
$ 298,635
|
$ 217,542
|
$ 135,261
|
$
67,159
|
|
|
|
|
|
|
Average total
assets
|
$ 27,488,732
|
$ 26,418,838
|
$ 26,162,136
|
$ 25,802,982
|
$ 24,826,199
|
|
|
|
|
|
|
Return on average
assets
|
0.67 %
|
0.97 %
|
0.88 %
|
0.72 %
|
1.06 %
|
Adjusted return on
average assets (non-GAAP)
|
0.70 %
|
1.13 %
|
1.11 %
|
1.06 %
|
1.10 %
|
|
|
|
|
|
|
Calculation of
Return on Tangible Common Equity
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to
common stockholders
|
$
45,589
|
$ 256,412
|
$ 173,152
|
$
92,549
|
$
65,095
|
Amortization of
intangibles, net of taxes
|
3,026
|
11,756
|
8,721
|
5,600
|
2,575
|
Total income available
to common stockholders
|
$
48,615
|
$ 268,168
|
$ 181,873
|
$
98,149
|
$
67,670
|
Certain items
(non-GAAP)
|
|
|
|
|
|
(Gain) loss from early
retirement of TruPS
|
-
|
365
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
(750)
|
(750)
|
-
|
-
|
Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
Donation to Simmons
First Foundation
|
-
|
1,738
|
1,738
|
1,738
|
-
|
Merger related
costs
|
1,396
|
22,476
|
22,441
|
21,019
|
1,886
|
Branch right sizing
(net)
|
979
|
3,628
|
2,524
|
1,289
|
909
|
Day 2 CECL
provision
|
-
|
33,779
|
33,779
|
33,779
|
-
|
Tax effect of certain
items (2)
|
(621)
|
(14,939)
|
(15,707)
|
(15,113)
|
(731)
|
Adjusted earnings
(non-GAAP)
|
47,343
|
298,635
|
217,542
|
135,261
|
67,159
|
Amortization of
intangibles, net of taxes
|
3,026
|
11,756
|
8,721
|
5,600
|
2,575
|
Total adjusted earnings
available to common stockholders (non-GAAP)
|
$
50,369
|
$ 310,391
|
$ 226,263
|
$ 140,861
|
$
69,734
|
|
|
|
|
|
|
Average common
stockholders' equity
|
$
3,370,651
|
$
3,259,664
|
$
3,274,743
|
$
3,265,935
|
$
3,169,108
|
Average intangible
assets:
|
|
|
|
|
|
Goodwill
|
(1,319,624)
|
(1,266,762)
|
(1,252,486)
|
(1,223,352)
|
(1,146,034)
|
Other
intangibles
|
(127,394)
|
(121,622)
|
(118,385)
|
(109,575)
|
(104,905)
|
Total average
intangibles
|
(1,447,018)
|
(1,388,384)
|
(1,370,871)
|
(1,332,927)
|
(1,250,939)
|
Average tangible common
stockholders' equity (non-GAAP)
|
$
1,923,633
|
$
1,871,280
|
$
1,903,872
|
$
1,933,008
|
$
1,918,169
|
|
|
|
|
|
|
Return on average
common equity
|
5.49 %
|
7.87 %
|
7.07 %
|
5.71 %
|
8.33 %
|
Return on tangible
common equity
|
10.25 %
|
14.33 %
|
12.77 %
|
10.24 %
|
14.31 %
|
Adjusted return on
average common equity (non-GAAP)
|
5.70 %
|
9.16 %
|
8.88 %
|
8.35 %
|
8.59 %
|
Adjusted return on
tangible common equity (non-GAAP)
|
10.62 %
|
16.59 %
|
15.89 %
|
14.70 %
|
14.74 %
|
|
|
|
|
|
|
Calculation of
Efficiency Ratio and Adjusted Efficiency Ratio (1)
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(efficiency ratio numerator)
|
$ 143,228
|
$ 566,748
|
$ 424,173
|
$ 285,230
|
$ 128,417
|
Certain noninterest
expense items (non-GAAP)
|
|
|
|
|
|
Merger related
costs
|
(1,396)
|
(22,476)
|
(22,441)
|
(21,019)
|
(1,886)
|
Donation to Simmons
First Foundation
|
-
|
(1,738)
|
(1,738)
|
(1,738)
|
-
|
Branch right sizing
expense
|
(979)
|
(3,475)
|
(2,371)
|
(1,201)
|
(909)
|
Other real estate and
foreclosure expense adjustment
|
(186)
|
(1,003)
|
(653)
|
(485)
|
(343)
|
Amortization of
intangibles adjustment
|
(4,096)
|
(15,915)
|
(11,807)
|
(7,582)
|
(3,486)
|
Adjusted efficiency
ratio numerator
|
$ 136,571
|
$ 522,141
|
$ 385,163
|
$ 253,205
|
$ 121,793
|
|
|
|
|
|
|
Net interest
income
|
$ 177,835
|
$ 717,316
|
$ 524,290
|
$ 330,705
|
$ 145,606
|
Noninterest
income
|
45,835
|
170,066
|
125,419
|
82,396
|
42,218
|
Fully tax-equivalent
adjustment (effective tax rate of 26.135%)
|
6,311
|
24,671
|
17,901
|
11,698
|
5,602
|
Efficiency ratio
denominator
|
229,981
|
912,053
|
667,610
|
424,799
|
193,426
|
|
|
|
|
|
|
Certain noninterest
income items (non-GAAP)
|
|
|
|
|
|
Gain on insurance
settlement
|
-
|
(4,074)
|
-
|
-
|
-
|
(Gain) loss from early
retirement of TruPS
|
-
|
365
|
365
|
-
|
-
|
Gain on sale of
intellectual property
|
-
|
(750)
|
(750)
|
-
|
-
|
Gain on sale of
branches
|
-
|
-
|
-
|
-
|
-
|
Branch right sizing
income
|
-
|
153
|
153
|
88
|
-
|
(Gain) loss on sale of
securities
|
-
|
278
|
226
|
204
|
54
|
Adjusted efficiency
ratio denominator
|
$ 229,981
|
$ 908,025
|
$ 667,604
|
$ 425,091
|
$ 193,480
|
|
|
|
|
|
|
Efficiency
ratio (1)
|
62.28 %
|
62.14 %
|
63.54 %
|
67.14 %
|
66.39 %
|
Adjusted efficiency
ratio (non-GAAP) (1)
|
59.38 %
|
57.50 %
|
57.69 %
|
59.56 %
|
62.95 %
|
|
|
|
|
|
|
(1) Efficiency
ratio is noninterest expense as a percent of net interest income
(fully taxable equivalent) and noninterest revenues. Adjusted
efficiency ratio is
noninterest expense before foreclosed property expense,
amortization of intangibles and certain adjusting items as a
percent of net interest income (fully taxable equivalent) and
noninterest revenues, excluding gains and losses from securities
transactions and certain adjusting items, and is a non-GAAP
measurement.
|
(2) Effective
tax rate of 26.135%.
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/simmons-first-national-corporation-reports-first-quarter-2023-results-301806057.html
SOURCE Simmons First National Corporation