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Bob Fehlman, Simmons’ Chief Executive Officer, commented on third quarter 2024 results:
Simmons’ third quarter results were highlighted by positive underlying trends across the board. Net interest income increased 10 percent annualized on a linked quarter basis as loan yields continued to increase, while deposit costs were unchanged from second quarter 2024 levels and appear to have peaked.
We also were proactive in responding to favorable market conditions when opportunities presented themselves. During the quarter, we decided to sell certain lower yielding bonds in our securities portfolio to hasten the pace of our ongoing balance sheet optimization strategy. While the loss on the sale of these securities weighed on reported results, on an adjusted basis total revenue, noninterest income and pre-provision net revenue posted solid growth on a linked quarter basis. Equally important, credit trends remained steady in the quarter and our allowance for credit losses on loans ended the quarter at 1.35 percent.
As we enter the final quarter of 2024, we believe our strong capital and liquidity positions combined with the liability sensitivity position of our balance sheet will provide tailwinds as we navigate an uncertain macroeconomic environment.
Financial Highlights 3Q24 2Q24 3Q23 3Q24 Highlights
Balance Sheet (in millions) Comparisons reflect 3Q24 vs 2Q24
Total loans $17,336 $17,192 $16,772
Total investment securities 6,350 6,571 7,101
Total deposits 21,935 21,841 22,231 • Net income of $24.7 million
and diluted EPS of $0.20
Total assets 27,269 27,369 27,564
Total shareholders' equity 3,529 3,459 3,286
Asset Quality • Adjusted earnings1of $46.0
million and adjusted diluted
EPS1of $0.37
Net charge-off ratio (NCO ratio) 0.22% 0.19% 0.28%
Nonperforming loan ratio 0.59 0.60 0.49
Nonperforming assets to total assets 0.38 0.39 0.32 • Total revenue of $174.8 million
and PPNR1of $37.6 million
Allowance for credit losses to loans (ACL) 1.35 1.34 1.30
Nonperforming loan coverage ratio 229 223 267
Performance Measures (in millions) • Adjusted total revenue1of
$203.2 million and adjusted
PPNR1of $66.4 million
Total revenue $174.8 $197.2 $196.2
Adjusted total revenue1 203.2 197.2 196.2
Pre-provision net revenue1 (PPNR) 37.6 57.9 64.2 • Net interest margin of 2.74%,
up 5 bps
Adjusted pre-provision net revenue1 66.4 59.4 66.3
Provision for credit losses 12.1 11.1 7.7 • Cost of deposits unchanged
from 2Q24 levels at 2.79%
Per share Data
Diluted earnings $ 0.20 $ 0.32 $ 0.37
Adjusted diluted earnings1 0.37 0.33 0.39 • Provision for credit losses on
loans exceeded net charge-offs
in the quarter by $2.8 million
Book value 28.11 27.56 26.26
Tangible book value1 16.78 16.20 14.77
Capital Ratios • NCO ratio 22bpsin 3Q24; 9
bpsof NCO ratio associated
with run-off portfolio
Equity to assets (EA ratio) 12.94% 12.64% 11.92%
Tangible common equity (TCE) ratio1 8.15 7.84 7.07
Common equity tier 1 (CET1) ratio 12.06 12.00 12.02 •ACLratio ends the quarter at
1.35%
Total risk-based capital ratio 14.25 14.17 14.27
Liquidity ($ in millions) •EAratio 12.94%;TCEratio1up
31 bpsto 8.15%
Loan to deposit ratio 79.03% 78.72% 75.44%
Borrowed funds to total liabilities 6.16 7.38 7.37
Uninsured, non-collateralized deposits (UCD) $ 4,659 $ 4,408 $ 4,631 • Book value per share up 2%;
tangible book value per share1
up 4%
Additional liquidity sources 11,174 11,120 11,447
Coverage ratio of UCD 2.4x 2.5x 2.5x
Simmons First National Corporation (NASDAQ: SFNC)(Simmons or Company) today reported net income of $24.7 million for the third quarter of 2024, compared to $40.8 million in the second quarter of 2024 and $47.2 million in the third quarter of 2023. Diluted earnings per share were $0.20 for the third quarter of 2024, compared to $0.32 in the second quarter of 2024 and $0.37 in the third quarter of 2023. Adjusted earnings1 for the third quarter of 2024 were $46.0 million, compared to $41.9 million in the second quarter of 2024 and $48.8 million in the third quarter of 2023. Adjusted diluted earnings per share1 for the third quarter of 2024 were $0.37, compared to $0.33 in the second quarter of 2024 and $0.39 in the third quarter of 2023.
During the third quarter of 2024, given prevailing market conditions, we executed a strategic decision to sell approximately $252 million of available-for-sale (AFS) investment securities with a weighted average yield of approximately 1.29 percent, resulting in an after-tax loss of $21.0 million. The proceeds from the sale were used to pay off higher rate wholesale funding consisting of Federal Home Loan Bank advances. The table below summarizes the impact of this transaction, along with the impact of certain other items consisting primarily of branch right sizing, early retirement, and termination of vendor and software services. They are also described in further detail in the “Reconciliation of Non-GAAP Financial Measures” tables contained in this press release.
Impact of Certain Items on Earnings and Diluted EPS
$ in millions, except per share data 3Q24 2Q24 3Q23 Net income $ 24.7 $ 40.8 $ 47.2 FDIC special assessment - 0.3 - Branch right sizing, net 0.4 0.5 0.5 Early retirement program - 0.1 1.6 Termination of vendor and software services - 0.6 - Loss on sale of AFS investment securities 28.4 - - Total pre-tax impact 28.8 1.5 2.1 Tax effect2 (7.5) (0.4) (0.5) Total impact on earnings 21.3 1.1 1.6 Adjusted earnings1 $ 46.0 $ 41.9 $ 48.8 Diluted EPS $ 0.20 $ 0.32 $ 0.37 FDIC special assessment - - - Branch right sizing, net - - 0.01 Early retirement program - - 0.01 Termination of vendor and software contracts - 0.01 - Loss on sale of AFS investment securities 0.23 - - Total pre-tax impact 0.23 0.01 0.02 Tax effect2 (0.6) - - Total impact on earnings 0.17 0.01 0.02 Adjusted Diluted EPS1 $ 0.37 $ 0.33 $ 0.39
Net Interest Income Net interest income for the third quarter of 2024 totaled $157.7 million, compared to $153.9 million in the second quarter of 2024 and $153.4 million in the third quarter of 2023. Interest income totaled $334.3 million in the third quarter of 2024, compared to $329.1 million in the second quarter of 2024 and $310.3 million in the third quarter of 2023. The increase in interest income was primarily driven by an increase in total loans, coupled with an increase in the rate earned on loans. Interest expense totaled $176.6 million in the third quarter of 2024, up $1.3 million on a linked quarter basis primarily due to an increase in other borrowings costs, offset in part by a decrease in the interest expense on interest bearing deposits. Included in net interest income is accretion recognized on loans, which totaled $1.5 million in the third quarter of 2024, $1.6 million in the second quarter of 2024 and $2.1 million in the third quarter of 2023.
The yield on loans on a fully taxable equivalent (FTE) basis for the third quarter of 2024 was 6.44 percent, up 5 basis points from the 6.39 percent for the second quarter of 2024 and up 36 basis points from the 6.08 percent for the third quarter of 2023. Cost of deposits for the third quarter of 2024 was 2.79 percent, unchanged from second quarter 2024 levels. The net interest margin on an FTE basis for the third quarter of 2024 was 2.74 percent, compared to 2.69 percent for the second quarter of 2024 and 2.61 percent for the third quarter of 2023. The 5 basis point increase in the net interest margin on a linked quarter basis included an estimated 3 basis point benefit from the strategic sale of AFS investment securities.
Select Yield/Rates 3Q24 2Q24 1Q24 4Q23 3Q23 Loan yield (FTE)2 6.44% 6.39% 6.24% 6.20% 6.08% Investment securities yield (FTE)2 3.63 3.68 3.76 3.67 3.08 Cost of interest bearing deposits 3.52 3.53 3.48 3.31 3.06 Cost of deposits 2.79 2.79 2.75 2.58 2.37 Cost of borrowed funds 5.79 5.84 5.85 5.79 5.60 Net interest spread (FTE)2 1.95 1.92 1.89 1.93 1.87 Net interest margin (FTE)2 2.74 2.69 2.66 2.68 2.61
Noninterest Income Noninterest income for the third quarter of 2024 was $17.1 million, compared to $43.3 million in the second quarter of 2024 and $42.8 million in the third quarter of 2023. Included in the third quarter of 2024 was a $28.4 million pre-tax loss on the strategic sale of AFS investment securities. Excluding this item, adjusted noninterest income1 was $45.5 million in the third quarter of 2024, compared to $43.3 million in the second quarter of 2024 and $42.8 million in the third quarter of 2023. The increase in adjusted noninterest income on a linked quarter basis was primarily due to an increase in other noninterest income reflecting gains on the sale of other real estate owned.
Noninterest Income 3Q24 2Q24 1Q24 4Q23 3Q23 $ in millions Service charges on deposit accounts $ 12.7 $ 12.3 $ 12.0 $ 12.8 $ 12.4 Wealth management fees 8.2 8.3 7.5 7.7 7.7 Debit and credit card fees 8.1 8.2 8.2 7.8 7.7 Mortgage lending income 2.0 2.0 2.3 1.6 2.2 Other service charges and fees 2.4 2.4 2.2 2.3 2.2 Bank owned life insurance 3.8 3.9 3.8 3.1 3.1 Gain (loss) on sale of securities (28.4) - - (20.2) - Other income 8.3 6.4 7.2 6.9 7.4 Total noninterest income $ 17.1 $ 43.3 $ 43.2 $ 22.0 $ 42.8 Adjusted noninterest income1 $ 45.5 $ 43.3 $ 43.2 $ 42.2 $ 42.8
Noninterest Expense Noninterest expense for the third quarter of 2024 was $137.2 million, compared to $139.4 million in the second quarter of 2024 and $132.0 million in the third quarter of 2023. Included in noninterest expense are certain items consisting of branch right sizing, early retirement, and termination of vendor and software services, amongst others. Collectively, these items totaled $0.4 million in the third quarter of 2024, $1.5 million in the second quarter of 2024 and $2.1 million in the third quarter of 2023. Excluding these items (which are described in the “Reconciliation of Non-GAAP Financial Measures” tables below), adjusted noninterest expense1 was $136.8 million in the third quarter of 2024, $137.8 million in the second quarter of 2024 and $129.9 million in the third quarter of 2023. The decrease in noninterest expense and adjusted noninterest expense on a linked quarter basis was primarily attributable to a decline in salaries and employee benefits reflecting incentive compensation accrual adjustments.
Noninterest Expense 3Q24 2Q24 1Q24 4Q23 3Q23 $ in millions Salaries and employee benefits $ 69.2 $ 70.7 $ 72.7 $ 67.0 $ 67.4 Occupancy expense, net 12.2 11.9 12.3 11.7 12.0 Furniture and equipment 5.6 5.6 5.1 5.4 5.1 Deposit insurance 5.6 5.4 5.5 4.7 4.7 Other real estate and foreclosure expense 0.1 0.1 0.2 0.2 0.2 FDIC special assessment - 0.3 1.6 10.5 - Other operating expenses 44.5 45.4 42.5 48.6 42.6 Total noninterest expense $137.2 $139.4 $139.9 $148.1 $132.0 Adjusted salaries and employee benefits1 $ 69.2 $ 70.6 $ 72.4 $ 66.0 $ 65.8 Adjusted other operating expenses1 44.4 44.3 42.4 44.9 42.1 Adjusted noninterest expense1 136.8 137.8 137.9 132.7 129.9 Efficiency ratio 75.70% 68.38% 69.41% 80.46% 65.11% Adjusted efficiency ratio1 63.38 65.68 66.42 62.91 61.94 Full-time equivalent employees 2,972 2,961 2,989 3,007 3,005
Loans and Unfunded Loan Commitments Total loans at the end of the third quarter of 2024 were $17.3 billion, up $564.2 million, or 3 percent, compared to $16.8 billion at the end of the third quarter of 2023. Total loans on a linked quarter basis increased $143.6 million, or 3 percent on an annualized basis. Unfunded loan commitments at the end of the third quarter of 2024 were $3.7 billion, down slightly from second quarter 2024 levels. The commercial loan pipeline ended the third quarter of 2024 at $1.2 billion, compared to $1.0 billion at the end of the second quarter of 2024 and $877 million at the end of the third quarter of 2023. The rate on ready to close commercial loans at the end of the third quarter of 2024 was 8.31 percent.
Loans and Unfunded Loan Commitments 3Q24 2Q24 1Q24 4Q23 3Q23 $ in millions Total loans $17,336 $17,192 $17,002 $16,846 $16,772 Unfunded loan commitments 3,681 3,746 3,875 3,880 4,049
Deposits Total deposits at the end of the third quarter of 2024 were $21.9 billion, compared to $21.8 billion at the end of the second quarter of 2024 and $22.2 billion at the end of the third quarter of 2023. The increase in total deposits on a linked quarter basis was primarily attributable to an increase in public funds and brokered deposits. During the third quarter of 2024, the brokered deposit market reflected more favorable pricing opportunities compared to other wholesale funding options. As a result, while the utilization of brokered deposits increased during the third quarter of 2024, other borrowings totaled $1.0 billion, down $300.5 million on a linked quarter basis. The loan to deposit ratio at the end of the third quarter of 2024 was 79 percent, unchanged from second quarter 2024 levels.
Deposits 3Q24 2Q24 1Q24 4Q23 3Q23 $ in millions Noninterest bearing deposits $ 4,522 $ 4,624 $ 4,698 $ 4,801 $ 4,991 Interest bearing transaction accounts 10,038 10,092 10,316 10,277 9,875 Time deposits 4,014 4,185 4,314 4,266 4,103 Brokered deposits 3,361 2,940 3,025 2,901 3,262 Total deposits $21,935 $21,841 $22,353 $22,245 $22,231 Noninterest bearing deposits to total deposits 21% 21% 21% 22% 22% Total loans to total deposits 79 79 76 76 75
Asset Quality Provision for credit losses totaled $12.1 million for the third quarter of 2024, compared to $11.1 for the second quarter of 2024 and $7.7 million for the third quarter of 2023. Provision for credit losses on loans exceeded net charge-offs by $2.8 million during the third quarter of 2024. The allowance for credit losses on loans at the end of the third quarter of 2024 was $233.2 million, compared to $230.4 million at the end of the second quarter of 2024 and $218.5 million at the end of the third quarter of 2023. The increase in allowance for credit losses on loans on a linked quarter and year-over-year basis reflected normalization of the credit environment from historical lows, as well as changes in the macroeconomic conditions and increased activity in the loan portfolio. The allowance for credit losses on loans as a percentage of total loans was 1.35 percent at the end of the third quarter of 2024, compared to 1.34 percent at the end of the second quarter of 2024 and 1.30 percent at the end of the third quarter of 2023.
Net charge-offs as a percentage of average loans for the third quarter of 2024 were 22 basis points, compared to 19 basis points in the second quarter of 2024 and 28 basis points in the third quarter of 2023. Net charge-offs in the third quarter of 2024 included $3.5 million of charge-offs associated with the run-off portfolio, which consists of an acquired asset-based lending portfolio and a small ticket equipment finance portfolio. Net charge-offs from the run-off portfolio accounted for 9 basis points of total net charge-offs during the third quarter of 2024 and 16 basis points of total net charge-offs during the second quarter of 2024.
Total nonperforming loans at the end of the third quarter of 2024 were $101.7 million, compared to $103.4 million at the end of the second quarter of 2024 and $81.9 million at the end of the third quarter of 2023. The decrease in nonperforming loans on a linked quarter basis reflected $5 million of payoffs from the run-off portfolio and the previously noted charge-offs associated with this portfolio. The nonperforming loan coverage ratio ended the third quarter of 2024 at 229 percent, compared to 223 percent at the end of the second quarter of 2024 and 267 percent at the end of the third quarter of 2023. Total nonperforming assets as a percentage of total assets were 38 basis points at the end of the third quarter of 2024, compared to 39 basis points at the end of the second quarter of 2024 and 32 basis points at the end of the third quarter of 2023.
Asset Quality 3Q24 2Q24 1Q24 4Q23 3Q23 $ in millions Allowance for credit losses on loans to total loans 1.35% 1.34% 1.34% 1.34% 1.30% Allowance for credit losses on loans to nonperforming loans 229 223 212 267 267 Nonperforming loans to total loans 0.59 0.60 0.63 0.50 0.49 Net charge-off ratio (annualized) 0.22 0.19 0.19 0.11 0.28 Net charge-off ratio YTD (annualized) 0.20 0.19 0.19 0.12 0.12 Total nonperforming loans $101.7 $103.4 $107.3 $84.5 $81.9 Total other nonperforming assets 2.6 3.4 5.0 5.8 5.2 Total nonperforming assets $104.3 $106.8 $112.3 $90.3 $87.1 Reserve for unfunded commitments $25.6 $25.6 $25.6 $25.6 $25.6
Capital Total stockholders’ equity at the end of the third quarter of 2024 was $3.5 billion, compared to $3.3 billion at the end of the third quarter of 2023. On a linked quarter basis, total stockholders’ equity increased $70.0 million, primarily as a result of a $69.6 million recapture of accumulated other comprehensive income principally associated with mark-to-market adjustment on AFS investment securities. Book value per share at the end of the third quarter of 2024 was $28.11, up 2 percent on a linked quarter basis and up 7 percent compared to the end of the third quarter of 2023. Tangible book value per share1 at the end of the third quarter of 2024 was $16.78, up 4 percent on a linked quarter basis and up 14 percent compared to the end of the third quarter of 2023.
Total stockholders’ equity as a percentage of total assets at September 30, 2024 was 12.9 percent, up from 12.6 percent reported at the end of the second quarter of 2024 and up from 11.9 percent reported at the end of the third quarter of 2023. Tangible common equity as a percentage of tangible assets1 was 8.2 percent, up from 7.8 percent reported at the end of the second quarter of 2024 and up from 7.1 percent reported at the end of the third quarter of 2023. Each of the regulatory capital ratios for Simmons and its lead subsidiary, Simmons Bank, continue to significantly exceed “well-capitalized” guidelines.
Select Capital Ratios 3Q24 2Q24 1Q24 4Q23 3Q23 Stockholders' equity to total assets 12.9% 12.6% 12.6% 12.5% 11.9% Tangible common equity to tangible assets1 8.2 7.8 7.8 7.7 7.1 Common equity tier 1 (CET1) ratio 12.1 12.0 12.0 12.1 12.0 Tier 1 leverage ratio 9.6 9.5 9.4 9.4 9.3 Tier 1 risk-based capital ratio 12.1 12.0 12.0 12.1 12.0 Total risk-based capital ratio 14.3 14.2 14.4 14.4 14.3
Share Repurchase Program During the third quarter of 2024, Simmons did not repurchase shares under its stock repurchase program that was authorized in January 2024 (2024 Program), which replaced its former repurchase program that was authorized in January 2022. Remaining authorization under the 2024 Program as of September 30, 2024, was approximately $175 million. The timing, pricing and amount of any repurchases under the 2024 Program will be determined by Simmons’ management at its discretion based on a variety of factors including, but not limited to, market conditions, trading volume and market price of Simmons’ common stock, Simmons’ capital needs, Simmons’ working capital and investment requirements, other corporate considerations, economic conditions, and legal requirements. The 2024 Program does not obligate Simmons to repurchase any common stock and may be modified, discontinued or suspended at any time without prior notice.
____________________ (1) Non-GAAP measurement. See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" below (2) FTE - fully taxable equivalent basis using an effective tax rate of 26.135%
Conference Call Management will conduct a live conference call to review this information beginning at 9:00 a.m. Central Time today, Friday, October 18, 2024. Interested persons can listen to this call by dialingtoll-free 1-844-481-2779 (North America only) and asking for the Simmons First National Corporation conference call, conference ID10193072. In addition, the call will be available live or in recorded version on Simmons’ website at simmonsbank.comfor at least 60 days following the date of the call.
Simmons First National Corporation Simmons First National Corporation (NASDAQ: SFNC) is a Mid-South based financial holding company that has paid cash dividends to its shareholders for 115 consecutive years. Its principal subsidiary, Simmons Bank, operates 234 branches in Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas. Founded in 1903, Simmons Bank offers comprehensive financial solutions delivered with a client-centric approach. In 2024, Simmons Bank was recognized by U.S. News & World Report as one of the 2024-2025 Best Companies to Work For in the South and by Forbes as one of America’s Best-In-State Banks 2024 in Tennessee and America’s Best-In-State Banks 2024 in Missouri. Additional information about Simmons Bank can be found on our website at simmonsbank.com, by following @Simmons_Bank on X (formerly Twitter) or by visiting our newsroom.
Non-GAAP Financial Measures This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from net income (including on a per share diluted basis), pre-tax, pre-provision earnings, net charge-offs, income available to common shareholders, non-interest income, and non-interest expense certain income and expense items attributable to, for example, merger activity (primarily including merger-related expenses), gains and/or losses on sale of branches, net branch right-sizing initiatives, FDIC special assessment charges and gain/loss on the sale of AFS investment securities. The Company has updated its calculation of certain non-GAAP financial measures to exclude the impact of gains or losses on the sale of AFS investment securities in light of the impact of the Company’s strategic AFS investment securities transactions during the fourth quarter of 2023 and has presented past periods on a comparable basis.
In addition, the Company also presents certain figures based on tangible common stockholders’ equity, tangible assets and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of the impact of deposits and/or loans acquired through acquisitions, mortgage warehouse loans, and/or energy loans, or gains and/or losses on the sale of securities. The Company’s management believes that these non-GAAP financial measures are useful to investors because they, among other things, present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalize for tax effects and certain other effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s ongoing businesses, and management uses these non-GAAP financial measures to assess the performance of the Company’s ongoing businesses as related to prior financial periods. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.
Forward-Looking Statements Certain statements in this press release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. 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 adequacy of the allowance for credit losses, and future economic conditions and interest rates. Any forward-looking statement speaks only as of the date of this press release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this press release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, changes in credit quality, changes in interest rates and related governmental policies, changes in loan demand, changes in deposit flows, changes in real estate values, changes in the assumptions used in making the forward-looking statements, changes in the securities markets generally or the price of Simmons’ common stock specifically, changes in information technology affecting the financial industry, and changes in customer behaviors, including consumer spending, borrowing, and saving habits; general economic and market conditions; changes in governmental administrations; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and between Israel and Hamas) or other major events, or the prospect of these events; the soundness of other financial institutions and any indirect exposure related to the closings of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships; increased inflation; the loss of key employees; increased competition in the markets in which the Company operates and from non-bank financial institutions; increased unemployment; labor shortages; claims, damages, and fines related to litigation or government actions; changes in accounting principles relating to loan loss recognition (current expected credit losses); the Company’s ability to manage and successfully integrate its mergers and acquisitions and to fully realize cost savings and other benefits associated with acquisitions; increased delinquency and foreclosure rates on commercial real estate loans; cyber 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, 2023, and other reports that the Company has filed with or furnished to the U.S. Securities and Exchange Commission (the SEC), all of which are available from the SEC on its website, www.sec.gov. 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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands) ASSETS Cash and noninterest bearing balances due from banks $ 398,321 $ 320,021 $ 380,324 $ 345,258 $ 181,822 Interest bearing balances due from banks and federal funds sold 205,081 254,312 222,979 268,834 423,826 Cash and cash equivalents 603,402 574,333 603,303 614,092 605,648 Interest bearing balances due from banks - time 100 100 100 100 100 Investment securities - held-to-maturity 3,658,700 3,685,450 3,707,258 3,726,288 3,742,292 Investment securities - available-for-sale 2,691,094 2,885,904 3,027,558 3,152,153 3,358,421 Mortgage loans held for sale 8,270 13,053 11,899 9,373 11,690 Loans: Loans 17,336,040 17,192,437 17,001,760 16,845,670 16,771,888 Allowance for credit losses on loans (233,223) (230,389) (227,367) (225,231) (218,547) Net loans 17,102,817 16,962,048 16,774,393 16,620,439 16,553,341 Premises and equipment 584,366 581,893 576,466 570,678 567,167 Foreclosed assets and other real estate owned 1,299 2,209 3,511 4,073 3,809 Interest receivable 125,700 126,625 122,781 122,430 110,361 Bank owned life insurance 508,781 505,023 503,348 500,559 497,465 Goodwill 1,320,799 1,320,799 1,320,799 1,320,799 1,320,799 Other intangible assets 101,093 104,943 108,795 112,645 116,660 Other assets 562,983 606,692 611,964 592,045 676,572 Total assets $ 27,269,404 $ 27,369,072 $ 27,372,175 $ 27,345,674 $ 27,564,325 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest bearing transaction accounts $ 4,521,715 $ 4,624,186 $ 4,697,539 $ 4,800,880 $ 4,991,034 Interest bearing transaction accounts and savings deposits 10,863,945 10,925,179 11,071,762 10,997,425 10,571,807 Time deposits 6,549,774 6,291,518 6,583,703 6,446,673 6,668,370 Total deposits 21,935,434 21,840,883 22,353,004 22,244,978 22,231,211 Federal funds purchased and securities sold under agreements to repurchase 51,071 52,705 58,760 67,969 74,482 Other borrowings 1,045,878 1,346,378 871,874 972,366 1,347,855 Subordinated notes and debentures 366,255 366,217 366,179 366,141 366,103 Accrued interest and other liabilities 341,933 304,020 283,232 267,732 259,119 Total liabilities 23,740,571 23,910,203 23,933,049 23,919,186 24,278,770 Stockholders' equity: Common stock 1,256 1,255 1,254 1,252 1,251 Surplus 2,508,438 2,506,469 2,503,673 2,499,930 2,497,874 Undivided profits 1,355,000 1,356,626 1,342,215 1,329,681 1,330,810 Accumulated other comprehensive (loss) income (335,861) (405,481) (408,016) (404,375) (544,380) Total stockholders' equity 3,528,833 3,458,869 3,439,126 3,426,488 3,285,555 Total liabilities and stockholders' equity $ 27,269,404 $ 27,369,072 $ 27,372,175 $ 27,345,674 $ 27,564,325
Simmons First National Corporation SFNC Consolidated Statements of Income - Quarter-to-Date For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands, except per share data) INTEREST INCOME Loans (including fees) $ 277,939 $ 270,937 $ 261,490 $ 261,505 $ 255,901 Interest bearing balances due from banks and federal funds sold 2,921 2,964 3,010 3,115 3,569 Investment securities 53,220 55,050 58,001 58,755 50,638 Mortgage loans held for sale 209 194 148 143 178 TOTAL INTEREST INCOME 334,289 329,145 322,649 323,518 310,286 INTEREST EXPENSE Time deposits 73,937 73,946 73,241 72,458 68,062 Other deposits 78,307 79,087 78,692 71,412 65,095 Federal funds purchased and securities sold under agreements to repurchase 138 156 189 232 277 Other borrowings 17,067 15,025 11,649 16,607 16,450 Subordinated notes and debentures 7,128 7,026 6,972 7,181 6,969 TOTAL INTEREST EXPENSE 176,577 175,240 170,743 167,890 156,853 NET INTEREST INCOME 157,712 153,905 151,906 155,628 153,433 PROVISION FOR CREDIT LOSSES Provision for credit losses on loans 12,148 11,099 10,206 11,225 20,222 Provision for credit losses on unfunded commitments - - - - (11,300) Provision for credit losses on investment securities - AFS - - - (1,196) (1,200) Provision for credit losses on investment securities - HTM - - - - - TOTAL PROVISION FOR CREDIT LOSSES 12,148 11,099 10,206 10,029 7,722 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 145,564 142,806 141,700 145,599 145,711 NONINTEREST INCOME Service charges on deposit accounts 12,713 12,252 11,955 12,782 12,429 Debit and credit card fees 8,144 8,162 8,246 7,822 7,712 Wealth management fees 8,226 8,274 7,478 7,679 7,719 Mortgage lending income 1,956 1,973 2,320 1,603 2,157 Bank owned life insurance income 3,757 3,876 3,814 3,094 3,095 Other service charges and fees (includes insurance income) 2,381 2,352 2,199 2,346 2,232 Gain (loss) on sale of securities (28,393) - - (20,218) - Other income 8,346 6,410 7,172 6,866 7,433 TOTAL NONINTEREST INCOME 17,130 43,299 43,184 21,974 42,777 NONINTEREST EXPENSE Salaries and employee benefits 69,167 70,716 72,653 66,982 67,374 Occupancy expense, net 12,216 11,864 12,258 11,733 12,020 Furniture and equipment expense 5,612 5,623 5,141 5,445 5,117 Other real estate and foreclosure expense 87 117 179 189 228 Deposit insurance 5,571 5,682 7,135 15,220 4,672 Merger-related costs - - - - 5 Other operating expenses 44,540 45,352 42,513 48,570 42,582 TOTAL NONINTEREST EXPENSE 137,193 139,354 139,879 148,139 131,998 NET INCOME BEFORE INCOME TAXES 25,501 46,751 45,005 19,434 56,490 Provision for income taxes 761 5,988 6,134 (4,473) 9,243 NET INCOME $ 24,740 $ 40,763 $ 38,871 $ 23,907 $ 47,247 BASIC EARNINGS PER SHARE $ 0.20 $ 0.32 $ 0.31 $ 0.19 $ 0.38 DILUTED EARNINGS PER SHARE $ 0.20 $ 0.32 $ 0.31 $ 0.19 $ 0.37
Simmons First National Corporation SFNC Consolidated Risk-Based Capital For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands) Tier 1 capital Stockholders' equity $ 3,528,833 $ 3,458,869 $ 3,439,126 $ 3,426,488 $ 3,285,555 CECL transition provision (1) 30,873 30,873 30,873 61,746 61,746 Disallowed intangible assets, net of deferred tax (1,388,549) (1,391,969) (1,394,672) (1,398,810) (1,402,682) Unrealized loss (gain) on AFS securities 335,861 405,481 408,016 404,375 544,380 Total Tier 1 capital 2,507,018 2,503,254 2,483,343 2,493,799 2,488,999 Tier 2 capital Subordinated notes and debentures 366,255 366,217 366,179 366,141 366,103 Subordinated debt phase out (132,000) (132,000) (66,000) (66,000) (66,000) Qualifying allowance for loan losses and reserve for unfunded commitments 220,517 217,684 214,660 170,977 165,490 Total Tier 2 capital 454,772 451,901 514,839 471,118 465,593 Total risk-based capital $ 2,961,790 $ 2,955,155 $ 2,998,182 $ 2,964,917 $ 2,954,592 Risk weighted assets $ 20,790,941 $ 20,856,194 $ 20,782,094 $ 20,599,238 $ 20,703,669 Adjusted average assets for leverage ratio $ 26,198,178 $ 26,371,545 $ 26,312,873 $ 26,552,988 $ 26,733,658 Ratios at end of quarter Equity to assets 12.94% 12.64% 12.56% 12.53% 11.92% Tangible common equity to tangible assets (2) 8.15% 7.84% 7.75% 7.69% 7.07% Common equity Tier 1 ratio (CET1) 12.06% 12.00% 11.95% 12.11% 12.02% Tier 1 leverage ratio 9.57% 9.49% 9.44% 9.39% 9.31% Tier 1 risk-based capital ratio 12.06% 12.00% 11.95% 12.11% 12.02% Total risk-based capital ratio 14.25% 14.17% 14.43% 14.39% 14.27%
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands) Investment Securities - End of Period Held-to-Maturity U.S. Government agencies $ 455,179 $ 454,488 $ 453,805 $ 453,121 $ 452,428 Mortgage-backed securities 1,093,070 1,119,741 1,142,352 1,161,694 1,178,324 State and political subdivisions 1,857,283 1,857,409 1,855,642 1,856,674 1,857,652 Other securities 253,168 253,812 255,459 254,799 253,888 Total held-to-maturity (net of credit losses) 3,658,700 3,685,450 3,707,258 3,726,288 3,742,292 Available-for-Sale U.S. Treasury $ 1,290 $ 1,275 $ 1,964 $ 2,254 $ 2,224 U.S. Government agencies 58,397 66,563 69,801 72,502 172,759 Mortgage-backed securities 1,510,402 1,730,842 1,845,364 1,940,307 2,157,092 State and political subdivisions 898,178 864,190 874,849 902,793 790,344 Other securities 222,827 223,034 235,580 234,297 236,002 Total available-for-sale (net of credit losses) 2,691,094 2,885,904 3,027,558 3,152,153 3,358,421 Total investment securities (net of credit losses) $ 6,349,794 $ 6,571,354 $ 6,734,816 $ 6,878,441 $ 7,100,713 Fair value - HTM investment securities $ 3,109,610 $ 3,005,524 $ 3,049,281 $ 3,135,370 $ 2,848,211
Simmons First National Corporation SFNC Consolidated Loans For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands) Loan Portfolio - End of Period Consumer: Credit cards $ 177,696 $ 178,354 $ 182,742 $ 191,204 $ 191,550 Other consumer 113,896 130,278 124,531 127,462 112,832 Total consumer 291,592 308,632 307,273 318,666 304,382 Real Estate: Construction 2,796,378 3,056,703 3,331,739 3,144,220 3,022,321 Single-family residential 2,724,648 2,666,201 2,624,738 2,641,556 2,657,879 Other commercial real estate 7,992,437 7,760,266 7,508,049 7,552,410 7,565,008 Total real estate 13,513,463 13,483,170 13,464,526 13,338,186 13,245,208 Commercial: Commercial 2,467,384 2,484,474 2,499,311 2,490,176 2,477,077 Agricultural 314,340 285,181 226,642 232,710 296,912 Total commercial 2,781,724 2,769,655 2,725,953 2,722,886 2,773,989 Other 749,261 630,980 504,008 465,932 448,309 Total loans $ 17,336,040 $ 17,192,437 $ 17,001,760 $ 16,845,670 $ 16,771,888
Simmons First National Corporation SFNC Consolidated Allowance and Asset Quality For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands) Allowance for Credit Losses on Loans Beginning balance $ 230,389 $ 227,367 $ 225,231 $ 218,547 $ 209,966 Loans charged off: Credit cards 1,744 1,418 1,646 1,500 1,318 Other consumer 524 550 732 767 633 Real estate 159 123 2,857 1,023 9,723 Commercial 8,235 7,243 4,593 3,105 1,219 Total loans charged off 10,662 9,334 9,828 6,395 12,893 Recoveries of loans previously charged off: Credit cards 231 221 248 242 234 Other consumer 275 509 333 518 344 Real estate 403 72 735 785 429 Commercial 439 455 442 309 245 Total recoveries 1,348 1,257 1,758 1,854 1,252 Net loans charged off 9,314 8,077 8,070 4,541 11,641 Provision for credit losses on loans 12,148 11,099 10,206 11,225 20,222 Balance, end of quarter $ 233,223 $ 230,389 $ 227,367 $ 225,231 $ 218,547 Nonperforming assets Nonperforming loans: Nonaccrual loans $ 100,865 $ 102,891 $ 105,788 $ 83,325 $ 81,135 Loans past due 90 days or more 830 558 1,527 1,147 806 Total nonperforming loans 101,695 103,449 107,315 84,472 81,941 Other nonperforming assets: Foreclosed assets and other real estate owned 1,299 2,209 3,511 4,073 3,809 Other nonperforming assets 1,311 1,167 1,491 1,726 1,417 Total other nonperforming assets 2,610 3,376 5,002 5,799 5,226 Total nonperforming assets $ 104,305 $ 106,825 $ 112,317 $ 90,271 $ 87,167 Ratios Allowance for credit losses on loans to total loans 1.35% 1.34% 1.34% 1.34% 1.30% Allowance for credit losses to nonperforming loans 229% 223% 212% 267% 267% Nonperforming loans to total loans 0.59% 0.60% 0.63% 0.50% 0.49% Nonperforming assets to total assets 0.38% 0.39% 0.41% 0.33% 0.32% Annualized net charge offs to average loans (QTD) 0.22% 0.19% 0.19% 0.11% 0.28% Annualized net charge offs to average loans (YTD) 0.20% 0.19% 0.19% 0.12% 0.12% Annualized net credit card charge offs to average credit card loans (QTD) 3.23% 2.50% 2.88% 2.49% 2.19%
Simmons First National Corporation SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis
For the Quarters Ended
(Unaudited)
Three Months Ended Three Months Ended Three Months Ended
Sep 2024 Jun 2024 Sep 2023
($ in thousands) Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate Balance Expense Rate
ASSETS
Earning assets:
Interest bearing balances due from banks
and federal funds sold $ 204,505 $ 2,921 5.68% $ 214,777 $ 2,964 5.55% $ 331,444 $ 3,569 4.27%
Investment securities - taxable 3,826,934 37,473 3.90% 4,035,508 39,283 3.92% 4,638,486 34,734 2.97%
Investment securities - non-taxable (FTE) 2,617,532 21,318 3.24% 2,597,005 21,429 3.32% 2,617,152 21,563 3.27%
Mortgage loans held for sale 12,425 209 6.69% 10,328 194 7.55% 9,542 178 7.40%
Loans - including fees (FTE) 17,208,162 278,766 6.44% 17,101,799 271,851 6.39% 16,758,597 256,757 6.08%
Total interest earning assets (FTE) 23,869,558 340,687 5.68% 23,959,417 335,721 5.64% 24,355,221 316,801 5.16%
Non-earning assets 3,346,882 3,345,860 3,239,390
Total assets $ 27,216,440 $ 27,305,277 $ 27,594,611
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest bearing liabilities:
Interest bearing transaction and
savings accounts $ 10,826,514 $ 78,307 2.88% $ 10,973,462 $ 79,087 2.90% $ 10,682,767 $ 65,095 2.42%
Time deposits 6,355,801 73,937 4.63% 6,447,259 73,946 4.61% 6,558,110 68,062 4.12%
Total interest bearing deposits 17,182,315 152,244 3.52% 17,420,721 153,033 3.53% 17,240,877 133,157 3.06%
Federal funds purchased and securities
sold under agreement to repurchase 51,830 138 1.06% 50,558 156 1.24% 89,769 277 1.22%
Other borrowings 1,252,435 17,067 5.42% 1,111,734 15,025 5.44% 1,222,557 16,450 5.34%
Subordinated notes and debentures 366,236 7,128 7.74% 366,198 7,026 7.72% 366,085 6,969 7.55%
Total interest bearing liabilities 18,852,816 176,577 3.73% 18,949,211 175,240 3.72% 18,919,288 156,853 3.29%
Noninterest bearing liabilities:
Noninterest bearing deposits 4,535,105 4,624,819 5,032,631
Other liabilities 323,378 280,092 271,014
Total liabilities 23,711,299 23,854,122 24,222,933
Stockholders' equity 3,505,141 3,451,155 3,371,678
Total liabilities and stockholders' equity $ 27,216,440 $ 27,305,277 $ 27,594,611
Net interest income (FTE) $ 164,110 $ 160,481 $ 159,948
Net interest spread (FTE) 1.95% 1.92% 1.87%
Net interest margin (FTE) 2.74% 2.69% 2.61%
Simmons First National Corporation SFNC Consolidated - Selected Financial Data For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands, except share data) QUARTER-TO-DATE Financial Highlights - As Reported Net Income $ 24,740 $ 40,763 $ 38,871 $ 23,907 $ 47,247 Diluted earnings per share 0.20 0.32 0.31 0.19 0.37 Return on average assets 0.36% 0.60% 0.57% 0.35% 0.68% Return on average common equity 2.81% 4.75% 4.54% 2.84% 5.56% Return on tangible common equity (non-GAAP) (1) 5.27% 8.67% 8.33% 5.61% 10.33% Net interest margin (FTE) 2.74% 2.69% 2.66% 2.68% 2.61% Efficiency ratio (2) 75.70% 68.38% 69.41% 80.46% 65.11% FTE adjustment 6,398 6,576 6,422 6,511 6,515 Average diluted shares outstanding 125,999,269 125,758,166 125,661,950 125,609,265 126,283,609 Shares repurchased under plan - - - - 1,128,962 Average price of shares repurchased - - - - 17.69 Cash dividends declared per common share 0.210 0.210 0.210 0.200 0.200 Accretable yield on acquired loans 1,496 1,569 1,123 1,762 2,146 Financial Highlights - Adjusted (non-GAAP) (1) Adjusted earnings $ 46,005 $ 41,897 $ 40,351 $ 50,215 $ 48,804 Adjusted diluted earnings per share 0.37 0.33 0.32 0.40 0.39 Adjusted return on average assets 0.67% 0.62% 0.60% 0.73% 0.70% Adjusted return on average common equity 5.22% 4.88% 4.71% 5.97% 5.74% Adjusted return on tangible common equity 9.34% 8.89% 8.62% 11.10% 10.64% Adjusted efficiency ratio (2) 63.38% 65.68% 66.42% 62.91% 61.94% YEAR-TO-DATE Financial Highlights - GAAP Net Income $ 104,374 $ 79,634 $ 38,871 $ 175,057 $ 151,150 Diluted earnings per share 0.83 0.63 0.31 1.38 1.19 Return on average assets 0.51% 0.59% 0.57% 0.64% 0.73% Return on average common equity 4.02% 4.64% 4.54% 5.21% 6.00% Return on tangible common equity (non-GAAP) (1) 7.39% 8.50% 8.33% 9.76% 11.14% Net interest margin (FTE) 2.70% 2.68% 2.66% 2.78% 2.82% Efficiency ratio (2) 71.00% 68.90% 69.41% 67.75% 64.13% FTE adjustment 19,396 12,998 6,422 25,443 18,932 Average diluted shares outstanding 125,910,260 125,693,536 125,661,950 126,775,704 127,099,727 Cash dividends declared per common share 0.630 0.420 0.210 0.800 0.600 Financial Highlights - Adjusted (non-GAAP) (1) Adjusted earnings $ 128,253 $ 82,248 $ 40,351 $ 207,716 $ 157,501 Adjusted diluted earnings per share 1.02 0.65 0.32 1.64 1.24 Adjusted return on average assets 0.63% 0.61% 0.60% 0.75% 0.76% Adjusted return on average common equity 4.94% 4.80% 4.71% 6.18% 6.25% Adjusted return on tangible common equity 8.96% 8.76% 8.62% 11.46% 11.58% Adjusted efficiency ratio (2) 65.14% 66.05% 66.42% 61.32% 60.81% END OF PERIOD Book value per share $ 28.11 $ 27.56 $ 27.42 $ 27.37 $ 26.26 Tangible book value per share 16.78 16.20 16.02 15.92 14.77 Shares outstanding 125,554,598 125,487,520 125,419,618 125,184,119 125,133,281 Full-time equivalent employees 2,972 2,961 2,989 3,007 3,005 Total number of financial centers 234 234 233 234 232
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 (in thousands, except per share data) QUARTER-TO-DATE Net income $ 24,740 $ 40,763 $ 38,871 $ 23,907 $ 47,247 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - 283 1,549 10,521 - Merger related costs - - - - 5 Early retirement program (1) 118 219 1,032 1,557 Termination of vendor and software services (13) 615 - - - Loss (gain) on sale of securities 28,393 - - 20,218 - Branch right sizing (net) 410 519 236 3,846 547 Tax effect of certain items (1) (7,524) (401) (524) (9,309) (552) Certain items, net of tax 21,265 1,134 1,480 26,308 1,557 Adjusted earnings (non-GAAP) $ 46,005 $ 41,897 $ 40,351 $ 50,215 $ 48,804 Diluted earnings per share $ 0.20 $ 0.32 $ 0.31 $ 0.19 $ 0.37 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - - 0.01 0.08 - Early retirement program - - - 0.01 0.01 Termination of vendor and software services - 0.01 - - - Loss (gain) on sale of securities 0.23 - - 0.16 - Branch right sizing (net) - - - 0.03 0.01 Tax effect of certain items (1) (0.06) - - (0.07) - Certain items, net of tax 0.17 0.01 0.01 0.21 0.02 Adjusted diluted earnings per share (non-GAAP) $ 0.37 $ 0.33 $ 0.32 $ 0.40 $ 0.39 (1) Effective tax rate of 26.135%. Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP) QUARTER-TO-DATE Noninterest income $ 17,130 $ 43,299 $ 43,184 $ 21,974 $ 42,777 Certain noninterest income items Loss (gain) on sale of securities 28,393 - - 20,218 - Adjusted noninterest income (non-GAAP) $ 45,523 $ 43,299 $ 43,184 $ 42,192 $ 42,777 Noninterest expense $ 137,193 $ 139,354 $ 139,879 $ 148,139 $ 131,998 Certain noninterest expense items Merger related costs - - - - (5) Early retirement program 1 (118) (219) (1,032) (1,557) FDIC Deposit Insurance special assessment - (283) (1,549) (10,521) - Termination of vendor and software services 13 (615) - - - Branch right sizing expense (410) (519) (236) (3,846) (547) Adjusted noninterest expense (non-GAAP) $ 136,797 $ 137,819 $ 137,875 $ 132,740 $ 129,889 Salaries and employee benefits $ 69,167 $ 70,716 $ 72,653 $ 66,982 $ 67,374 Certain salaries and employee benefits items Early retirement program 1 (118) (219) (1,032) (1,557) Other (1) 1 - 2 - Adjusted salaries and employee benefits (non-GAAP) $ 69,167 $ 70,599 $ 72,434 $ 65,952 $ 65,817 Other operating expenses $ 44,540 $ 45,352 $ 42,513 $ 48,570 $ 42,582 Certain other operating expenses items Termination of vendor and software services 13 (615) - - - Branch right sizing expense (184) (392) (83) (3,708) (466) Adjusted other operating expenses (non-GAAP) $ 44,369 $ 44,345 $ 42,430 $ 44,862 $ 42,116
Simmons First National Corporation SFNC Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Year-to-Date For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 (in thousands, except per share data) YEAR-TO-DATE Net income $ 104,374 $ 79,634 $ 38,871 $ 175,057 $ 151,150 Certain items (non-GAAP) FDIC Deposit Insurance special assessment 1,832 1,832 1,549 10,521 - Merger related costs - - - 1,420 1,420 Early retirement program 336 337 219 6,198 5,166 Termination of vendor and software services 602 615 - - - Loss (gain) on sale of securities 28,393 - - 20,609 391 Branch right sizing (net) 1,165 755 236 5,467 1,621 Tax effect of certain items (1) (8,449) (925) (524) (11,556) (2,247) Certain items, net of tax 23,879 2,614 1,480 32,659 6,351 Adjusted earnings (non-GAAP) $ 128,253 $ 82,248 $ 40,351 $ 207,716 $ 157,501 Diluted earnings per share $ 0.83 $ 0.63 $ 0.31 $ 1.38 $ 1.19 Certain items (non-GAAP) FDIC Deposit Insurance special assessment 0.02 0.02 0.01 0.08 - Merger related costs - - - 0.01 0.01 Early retirement program - - - 0.05 0.04 Loss (gain) on sale of securities 0.23 - - 0.17 - Branch right sizing (net) 0.01 0.01 - 0.04 0.02 Tax effect of certain items (1) (0.07) (0.01) - (0.09) (0.02) Certain items, net of tax 0.19 0.02 0.01 0.26 0.05 Adjusted diluted earnings per share (non-GAAP) $ 1.02 $ 0.65 $ 0.32 $ 1.64 $ 1.24 (1) Effective tax rate of 26.135%. Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP) YEAR-TO-DATE Noninterest income $ 103,613 $ 86,483 $ 43,184 $ 155,566 $ 133,592 Certain noninterest income items Loss (gain) on sale of securities 28,393 - - 20,609 391 Adjusted noninterest income (non-GAAP) $ 132,006 $ 86,483 $ 43,184 $ 176,175 $ 133,983 Noninterest expense $ 416,426 $ 279,233 $ 139,879 $ 563,061 $ 414,922 Certain noninterest expense items Merger related costs - - - (1,420) (1,420) Early retirement program (336) (337) (219) (6,198) (5,166) FDIC Deposit Insurance special assessment (1,832) (1,832) (1,549) (10,521) - Termination of vendor and software services (602) (615) - - - Branch right sizing expense (1,165) (755) (236) (5,467) (1,621) Adjusted noninterest expense (non-GAAP) $ 412,491 $ 275,694 $ 137,875 $ 539,455 $ 406,715 Salaries and employee benefits $ 212,536 $ 143,369 $ 72,653 $ 286,117 $ 219,135 Certain salaries and employee benefits items Early retirement program (336) (337) (219) (6,198) (5,166) Other - 1 - 2 - Adjusted salaries and employee benefits (non-GAAP) $ 212,200 $ 143,033 $ 72,434 $ 279,921 $ 213,969 Other operating expenses $ 132,405 $ 87,865 $ 42,513 $ 177,164 $ 128,594 Certain other operating expenses items Termination of vendor and software services (602) (615) - - - Branch right sizing expense (659) (475) (83) (4,937) (1,229) Adjusted other operating expenses (non-GAAP) $ 131,144 $ 86,775 $ 42,430 $ 172,227 $ 127,365
Simmons First National Corporation SFNC Reconciliation Of Non-GAAP Financial Measures - End of Period For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands, except per share data) Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets Total common stockholders' equity $ 3,528,833 $ 3,458,869 $ 3,439,126 $ 3,426,488 $ 3,285,555 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799) Other intangible assets (101,093) (104,943) (108,795) (112,645) (116,660) Total intangibles (1,421,892) (1,425,742) (1,429,594) (1,433,444) (1,437,459) Tangible common stockholders' equity $ 2,106,941 $ 2,033,127 $ 2,009,532 $ 1,993,044 $ 1,848,096 Total assets $ 27,269,404 $ 27,369,072 $ 27,372,175 $ 27,345,674 $ 27,564,325 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799) Other intangible assets (101,093) (104,943) (108,795) (112,645) (116,660) Total intangibles (1,421,892) (1,425,742) (1,429,594) (1,433,444) (1,437,459) Tangible assets $ 25,847,512 $ 25,943,330 $ 25,942,581 $ 25,912,230 $ 26,126,866 Ratio of common equity to assets 12.94% 12.64% 12.56% 12.53% 11.92% Ratio of tangible common equity to tangible assets 8.15% 7.84% 7.75% 7.69% 7.07% Calculation of Tangible Book Value per Share Total common stockholders' equity $ 3,528,833 $ 3,458,869 $ 3,439,126 $ 3,426,488 $ 3,285,555 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799) Other intangible assets (101,093) (104,943) (108,795) (112,645) (116,660) Total intangibles (1,421,892) (1,425,742) (1,429,594) (1,433,444) (1,437,459) Tangible common stockholders' equity $ 2,106,941 $ 2,033,127 $ 2,009,532 $ 1,993,044 $ 1,848,096 Shares of common stock outstanding 125,554,598 125,487,520 125,419,618 125,184,119 125,133,281 Book value per common share $ 28.11 $ 27.56 $ 27.42 $ 27.37 $ 26.26 Tangible book value per common share $ 16.78 $ 16.20 $ 16.02 $ 15.92 $ 14.77 Calculation of Coverage Ratio of Uninsured, Non-Collateralized Deposits Uninsured deposits at Simmons Bank $ 8,355,496 $ 8,186,903 $ 8,413,514 $ 8,328,444 $ 8,143,200 Less: Collateralized deposits (excluding portion that is FDIC insured) 2,710,167 2,835,424 2,995,241 2,846,716 2,835,405 Less: Intercompany eliminations 986,626 943,979 775,461 728,480 676,840 Total uninsured, non-collateralized deposits $ 4,658,703 $ 4,407,500 $ 4,642,812 $ 4,753,248 $ 4,630,955 FHLB borrowing availability $ 4,955,000 $ 4,910,000 $ 5,326,000 $ 5,401,000 $ 5,372,000 Unpledged securities 4,110,000 4,145,000 4,122,000 3,817,000 4,124,000 Fed funds lines, Fed discount window and Bank Term Funding Program (1) 2,109,000 2,065,000 2,009,000 1,998,000 1,951,000 Additional liquidity sources $ 11,174,000 $ 11,120,000 $ 11,457,000 $ 11,216,000 $ 11,447,000 Uninsured, non-collateralized deposit coverage ratio 2.4 2.5 2.5 2.4 2.5 (1) The Bank Term Funding Program closed for new loans on March 11, 2024. At no time did Simmons borrow funds under this program. Calculation of Net Charge Off Ratio Net charge offs $ 9,314 $ 8,077 $ 8,070 Less: Net charge offs from run-off portfolio (1) 3,500 6,700 4,500 Net charge offs excluding run-off portfolio $ 5,814 $ 1,377 $ 3,570 Average total loans $ 17,208,162 $ 17,101,799 $ 16,900,496 Annualized net charge offs to average loans (NCO ratio) 0.22% 0.19% 0.19% NCO ratio, excluding net charge offs associated with run-off portfolio (annualized) 0.13% 0.03% 0.08% (1) Run-off portfolio consists of asset based lending and small equipment finance portfolios obtained in acquisitions.
Simmons First National Corporation SFNC Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands) Calculation of Adjusted Return on Average Assets Net income $ 24,740 $ 40,763 $ 38,871 $ 23,907 $ 47,247 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - 283 1,549 10,521 - Merger related costs - - - - 5 Early retirement program (1) 118 219 1,032 1,557 Termination of vendor and software services (13) 615 - - - Loss (gain) on sale of securities 28,393 - - 20,218 - Branch right sizing (net) 410 519 236 3,846 547 Tax effect of certain items (2) (7,524) (401) (524) (9,309) (552) Adjusted earnings (non-GAAP) $ 46,005 $ 41,897 $ 40,351 $ 50,215 $ 48,804 Average total assets $ 27,216,440 $ 27,305,277 $ 27,259,399 $ 27,370,811 $ 27,594,611 Return on average assets 0.36% 0.60% 0.57% 0.35% 0.68% Adjusted return on average assets (non-GAAP) 0.67% 0.62% 0.60% 0.73% 0.70% Calculation of Return on Tangible Common Equity Net income available to common stockholders $ 24,740 $ 40,763 $ 38,871 $ 23,907 $ 47,247 Amortization of intangibles, net of taxes 2,845 2,845 2,844 2,965 3,027 Total income available to common stockholders $ 27,585 $ 43,608 $ 41,715 $ 26,872 $ 50,274 Certain items (non-GAAP) FDIC Deposit Insurance special assessment $ - $ 283 $ 1,549 $ 10,521 $ - Merger related costs - - - - 5 Early retirement program (1) 118 219 1,032 1,557 Termination of vendor and software services (13) 615 - - - Loss (gain) on sale of securities 28,393 - - 20,218 - Branch right sizing (net) 410 519 236 3,846 547 Tax effect of certain items (2) (7,524) (401) (524) (9,309) (552) Adjusted earnings (non-GAAP) 46,005 41,897 40,351 50,215 48,804 Amortization of intangibles, net of taxes 2,845 2,845 2,844 2,965 3,027 Total adjusted earnings available to common stockholders (non-GAAP) $ 48,850 $ 44,742 $ 43,195 $ 53,180 $ 51,831 Average common stockholders' equity $ 3,505,141 $ 3,451,155 $ 3,447,021 $ 3,336,247 $ 3,371,678 Average intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799) Other intangibles (103,438) (107,173) (111,023) (114,861) (119,125) Total average intangibles (1,424,237) (1,427,972) (1,431,822) (1,435,660) (1,439,924) Average tangible common stockholders' equity (non-GAAP) $ 2,080,904 $ 2,023,183 $ 2,015,199 $ 1,900,587 $ 1,931,754 Return on average common equity 2.81% 4.75% 4.54% 2.84% 5.56% Return on tangible common equity 5.27% 8.67% 8.33% 5.61% 10.33% Adjusted return on average common equity (non-GAAP) 5.22% 4.88% 4.71% 5.97% 5.74% Adjusted return on tangible common equity (non-GAAP) 9.34% 8.89% 8.62% 11.10% 10.64% Calculation of Efficiency Ratio and Adjusted Efficiency Ratio(1) Noninterest expense (efficiency ratio numerator) $ 137,193 $ 139,354 $ 139,879 $ 148,139 $ 131,998 Certain noninterest expense items (non-GAAP) Merger related costs - - - - (5) Early retirement program 1 (118) (219) (1,032) (1,557) FDIC Deposit Insurance special assessment - (283) (1,549) (10,521) - Termination of vendor and software services 13 (615) - - - Branch right sizing expense (410) (519) (236) (3,846) (547) Other real estate and foreclosure expense adjustment (87) (117) (179) (189) (228) Amortization of intangibles adjustment (3,851) (3,852) (3,850) (4,015) (4,097) Adjusted efficiency ratio numerator $ 132,859 $ 133,850 $ 133,846 $ 128,536 $ 125,564 Net interest income $ 157,712 $ 153,905 $ 151,906 $ 155,628 $ 153,433 Noninterest income 17,130 43,299 43,184 21,974 42,777 Fully tax-equivalent adjustment (effective tax rate of 26.135%) 6,398 6,576 6,422 6,511 6,515 Efficiency ratio denominator 181,240 203,780 201,512 184,113 202,725 Certain noninterest income items (non-GAAP) (Gain) loss on sale of securities 28,393 - - 20,218 - Adjusted efficiency ratio denominator $ 209,633 $ 203,780 $ 201,512 $ 204,331 $ 202,725 Efficiency ratio(1) 75.70% 68.38% 69.41% 80.46% 65.11% Adjusted efficiency ratio (non-GAAP)(1) 63.38% 65.68% 66.42% 62.91% 61.94%
(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 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands) Calculation of Total Revenue and Adjusted Total Revenue Net interest income $ 157,712 $ 153,905 $ 151,906 $ 155,628 $ 153,433 Noninterest income 17,130 43,299 43,184 21,974 42,777 Total revenue 174,842 197,204 195,090 177,602 196,210 Certain items, pre-tax (non-GAAP) Less: Gain (loss) on sale of securities (28,393) - - (20,218) - Adjusted total revenue $ 203,235 $ 197,204 $ 195,090 $ 197,820 $ 196,210 Calculation of Pre-Provision Net Revenue (PPNR) Net interest income $ 157,712 $ 153,905 $ 151,906 $ 155,628 $ 153,433 Noninterest income 17,130 43,299 43,184 21,974 42,777 Total revenue 174,842 197,204 195,090 177,602 196,210 Less: Noninterest expense 137,193 139,354 139,879 148,139 131,998 Pre-Provision Net Revenue (PPNR) $ 37,649 $ 57,850 $ 55,211 $ 29,463 $ 64,212 Calculation of Adjusted Pre-Provision Net Revenue Pre-Provision Net Revenue (PPNR) $ 37,649 $ 57,850 $ 55,211 $ 29,463 $ 64,212 Certain items, pre-tax (non-GAAP) Plus: Loss (gain) on sale of securities 28,393 - - 20,218 - Plus: FDIC Deposit Insurance special assessment - 283 1,549 10,521 - Plus: Merger related costs - - - - 5 Plus: Early retirement program costs (1) 118 219 1,032 1,557 Plus: Termination of vendor and software services (13) 615 - - - Plus: Branch right sizing costs (net) 410 519 236 3,846 547 Adjusted Pre-Provision Net Revenue $ 66,438 $ 59,385 $ 57,215 $ 65,080 $ 66,321
Simmons First National Corporation SFNC Reconciliation Of Non-GAAP Financial Measures - Year-to-Date For the Quarters Ended Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 (Unaudited) 2024 2024 2024 2023 2023 ($ in thousands) Calculation of Adjusted Return on Average Assets Net income $ 104,374 $ 79,634 $ 38,871 $ 175,057 $ 151,150 Certain items (non-GAAP) FDIC Deposit Insurance special assessment 1,832 1,832 1,549 10,521 - Merger related costs - - - 1,420 1,420 Early retirement program 336 337 219 6,198 5,166 Termination of vendor and software services 602 615 - - - Loss (gain) on sale of securities 28,393 - - 20,609 391 Branch right sizing (net) 1,165 755 236 5,467 1,621 Tax effect of certain items (2) (8,449) (925) (524) (11,556) (2,247) Adjusted earnings (non-GAAP) $ 128,253 $ 82,248 $ 40,351 $ 207,716 $ 157,501 Average total assets $ 27,260,212 $ 27,282,338 $ 27,259,399 $ 27,554,859 $ 27,616,882 Return on average assets 0.51% 0.59% 0.57% 0.64% 0.73% Adjusted return on average assets (non-GAAP) 0.63% 0.61% 0.60% 0.75% 0.76% Calculation of Return on Tangible Common Equity Net income available to common stockholders $ 104,374 $ 79,634 $ 38,871 $ 175,057 $ 151,150 Amortization of intangibles, net of taxes 8,534 5,689 2,844 12,044 9,079 Total income available to common stockholders $ 112,908 $ 85,323 $ 41,715 $ 187,101 $ 160,229 Certain items (non-GAAP) FDIC Deposit Insurance special assessment $ 1,832 $ 1,832 $ 1,549 $ 10,521 $ - Merger related costs - - - 1,420 1,420 Early retirement program 336 337 219 6,198 5,166 Termination of vendor and software services 602 615 - - - Loss (gain) on sale of securities 28,393 - - 20,609 391 Branch right sizing (net) 1,165 755 236 5,467 1,621 Tax effect of certain items (2) (8,449) (925) (524) (11,556) (2,247) Adjusted earnings (non-GAAP) 128,253 82,248 40,351 207,716 157,501 Amortization of intangibles, net of taxes 8,534 5,689 2,844 12,044 9,079 Total adjusted earnings available to common stockholders (non-GAAP) $ 136,787 $ 87,937 $ 43,195 $ 219,760 $ 166,580 Average common stockholders' equity $ 3,467,908 $ 3,449,089 $ 3,447,021 $ 3,359,312 $ 3,367,088 Average intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,510) (1,320,412) Other intangibles (107,197) (109,098) (111,023) (121,098) (123,200) Total average intangibles (1,427,996) (1,429,897) (1,431,822) (1,441,608) (1,443,612) Average tangible common stockholders' equity (non-GAAP) $ 2,039,912 $ 2,019,192 $ 2,015,199 $ 1,917,704 $ 1,923,476 Return on average common equity 4.02% 4.64% 4.54% 5.21% 6.00% Return on tangible common equity 7.39% 8.50% 8.33% 9.76% 11.14% Adjusted return on average common equity (non-GAAP) 4.94% 4.80% 4.71% 6.18% 6.25% Adjusted return on tangible common equity (non-GAAP) 8.96% 8.76% 8.62% 11.46% 11.58% Calculation of Efficiency Ratio and Adjusted Efficiency Ratio(1) Noninterest expense (efficiency ratio numerator) $ 416,426 $ 279,233 $ 139,879 $ 563,061 $ 414,922 Certain noninterest expense items (non-GAAP) Merger related costs - - - (1,420) (1,420) Early retirement program (336) (337) (219) (6,198) (5,166) FDIC Deposit Insurance special assessment (1,832) (1,832) (1,549) (10,521) - Termination of vendor and software services (602) (615) - - - Branch right sizing expense (1,165) (755) (236) (5,467) (1,621) Other real estate and foreclosure expense adjustment (383) (296) (179) (892) (703) Amortization of intangibles adjustment (11,553) (7,702) (3,850) (16,306) (12,291) Adjusted efficiency ratio numerator $ 400,555 $ 267,696 $ 133,846 $ 522,257 $ 393,721 Net interest income $ 463,523 $ 305,811 $ 151,906 $ 650,126 $ 494,498 Noninterest income 103,613 86,483 43,184 155,566 133,592 Fully tax-equivalent adjustment (effective tax rate of 26.135%) 19,396 12,998 6,422 25,443 18,932 Efficiency ratio denominator 586,532 405,292 201,512 831,135 647,022 Certain noninterest income items (non-GAAP) (Gain) loss on sale of securities 28,393 - - 20,609 391 Adjusted efficiency ratio denominator $ 614,925 $ 405,292 $ 201,512 $ 851,744 $ 647,413 Efficiency ratio(1) 71.00% 68.90% 69.41% 67.75% 64.13% Adjusted efficiency ratio (non-GAAP)(1) 65.14% 66.05% 66.42% 61.32% 60.81%
(1) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues. Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is a non-GAAP measurement. (2) Effective tax rate of 26.135%.
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