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Simmons First National Corporation Reports Third Quarter 2022 Earnings of $80.6 million, Earnings Per Diluted Share of $0.63

Positive operating leverage driven by strong total revenue and adjusted pre-provision net revenue growth

PINE BLUFF, Ark., Oct. 25, 2022 /PRNewswire/ --

George A. Makris, Jr., Simmons' Chairman and CEO, commented on the third quarter

Our financial performance in the quarter demonstrates the diversity of our franchise and our ability to navigate the current economic environment. Total revenue growth was strong and well balanced, increasing 5 percent from the previous quarter. Noninterest expense was well contained, decreasing 11 percent on a reported basis and 1 percent on an adjusted basis. As a result of the positive operating leverage we generated in the quarter, pre-provision net revenue was the highest in our history and we delivered a return on equity of 10 percent and a ROTE of 18 percent.

As we enter the final quarter of the year with positive momentum, we also recognize the backdrop of economic uncertainty that persists. Inflation levels remain elevated and market expectations are that interest rates will continue to rise, which will most likely have an impact on future economic growth and activity. As such, we are intently focused on targeted balance sheet growth that optimizes capital, prudently managing spreads, and maintaining disciplined loan and deposit pricing strategies. We believe our conservative credit culture and emphasis on effective risk management has served, and will continue to serve, us well during periods of economic unrest.

Importantly, the unwavering commitment of our associates provides us with pride and confidence in the future. It is through their efforts that we will be well-positioned to continue our tradition of prospering in competitive markets and challenging times.

FINANCIAL HIGHLIGHTS

   3Q22

2Q22

3Q21

FINANCIAL RESULTS (in millions)

     

Revenue

$236.6

$225.3

$193.8

Revenue, excluding securities gain (loss) (1)

236.6

225.4

188.5

Noninterest expense

138.9

156.8

114.3

Pre-provision net revenue (1)

97.7

68.6

74.2

Merger related costs

1.4

19.1

1.4

Adjusted pre-provision net revenue (1)

100.0

88.1

72.6

Provision for credit losses

0.1

33.9

(19.9)

Net income

80.6

27.5

80.6

PER SHARE DATA

     

Diluted earnings

$  0.63

$  0.21

$  0.74

Adjusted diluted earnings (1)

0.64

0.52

0.73

Book value

24.87

25.31

28.42

Tangible book value (1)

13.51

14.07

17.39

BALANCE SHEET (in millions)

     

Total loans

$15,607

$15,110

$10,825

Total deposits

22,149

22,036

18,072

Total shareholders' equity

3,157

3,260

3,031

ASSET QUALITY

     

Net charge-off ratio

— %

0.02 %

0.17 %

Nonperforming loan ratio

0.37

0.42

0.55

Nonperforming assets to total assets

0.23

0.26

0.31

Allowance for credit losses to total loans

1.27

1.41

1.87

Nonperforming loan coverage ratio

342

334

341

SELECT RATIOS

     

Net interest margin (FTE) (2)

3.34 %

3.24 %

2.85 %

Efficiency ratio (1)

54.41

57.49

58.10

Loan to deposit ratio

70.47

68.57

59.90

Common equity tier 1 (CET1) ratio

11.73

12.10

14.27

Total risk-based capital ratio

14.08

14.83

17.42

Third Quarter Highlights

Comparisons reflect 3Q22 vs 2Q22

  • Diluted EPS of $0.63 and adjusted diluted EPS (1) of $0.64
     
  • Revenue increased 5%, fueled by a 5% increase in net interest income and a 7% increase in noninterest income
     
  • Noninterest expense decreased 11%. Excluding merger related costs and certain other items, adjusted noninterest expense (1) decreased 1%
     
  • Positive operating leverage drives 13% increase in adjusted pre-provision net revenue and 308 bp improvement in efficiency ratio
     
  • Solid balance sheet growth led by a 3% increase in total loans while total deposits increased 1%
     
  • Asset quality metrics remain at historically low-levels and reflect conservative credit culture and strategic decision in 2019 to de-risk certain elements of acquired loan portfolios
     
  • $45 million of common stock repurchased during the 3Q22

Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $80.6 million for the third quarter of 2022, compared to $27.5 million for the second quarter of 2022 and $80.6 million in the third quarter of 2021. Diluted earnings per share were $0.63 for the third quarter of 2022, compared to $0.21 in the second quarter of 2022 and $0.74 in the third quarter of 2021. As shown in the table below, certain items, consisting primarily of merger-related expenses and branch right sizing costs, totaled $1.7 million (after-tax) in the third quarter of 2022. In the second quarter of 2022, certain items as shown in the table below totaled $39.4 million (after-tax) and included Day 2 accounting provision required for loans and unfunded commitments acquired in connection with an acquisition. Certain items for the third quarter of 2021 as shown in the table below totaled $(1.2) million (after-tax). Excluding these items, adjusted diluted earnings per share(1) were $0.64 for the third quarter of 2022, $0.52 for the second quarter of 2022 and $0.73 for the third quarter of 2021.   

Total revenue for the third quarter of 2022 was $236.6 million, up 5 percent compared to the second quarter of 2022, and up 22 percent compared to the third quarter of 2021. Pre-provision net revenue(1) totaled $97.7 million during the third quarter of 2022, compared to $68.6 million in the second quarter of 2022 and $74.2 million in the third quarter of 2021. Adjusted pre-provision net revenue(1) totaled $100.0 million in the third quarter of 2022, up 13 percent from second quarter 2022 levels and 38 percent from third quarter 2021 levels. As a result of the positive operating leverage delivered in the quarter, the efficiency ratio(1) for the third quarter of 2022 was 54.41 percent, an improvement of 308 basis points from second quarter 2022 levels and 369 basis points from third quarter 2021 levels.

Impact of Certain Items on Earnings and Diluted EPS

$ in millions, except per share data

Q3 22

Q2 22

Q3 21

Net income

$ 80.6

$ 27.5

$ 80.6

       

Day 2 accounting provision

-

33.8

-

Merger related expenses

1.4

19.1

1.4

Branch right sizing costs, net

1.3

0.4

(3.0)

Loss from early retirement of TruPS

0.4

-

-

Gain on sale of intellectual property

(0.8)

-

-

   Total pre-tax impact

2.3

53.3

(1.6)

Tax effect (3)

(0.6)

(14.0)

0.4

   Total impact on earnings

1.7

39.3

(1.2)

Adjusted earnings (1)

$ 82.3

$ 66.8

$ 79.4

       

Diluted EPS

$ 0.63

$ 0.21

$ 0.74

       

Day 2 accounting provision

-

0.27

-

Merger related expenses

0.01

0.15

0.01

Branch right sizing costs

0.01

-

(0.03)

Loss from early retirement of TruPS

-

-

-

Gain on sale of intellectual property

(0.01)

-

-

   Total pre-tax impact

0.01

0.41

(0.02)

Tax effect (3)

-

(0.11)

0.01

   Total impact on earnings

0.01

0.31

(0.01)

Adjusted Diluted EPS (1)

$ 0.64

$ 0.52

$ 0.73

       

Average diluted shares outstanding

128,336,422

128,720,078

108,359,890

Net Interest Income

Net interest income for the third quarter of 2022 totaled $193.6 million, up 5 percent compared to the second quarter of 2022, and up 33 percent compared to the third quarter of 2021. Included in net interest income is accretion recognized on assets acquired, which totaled $5.8 million in the third quarter of 2022, $9.9 million in the second quarter of 2022 and $4.1 million in the third quarter of 2021. Also included in net interest income is income from Paycheck Protection Program (PPP) loans totaling $0.2 million in the third quarter of 2022, $1.6 million in the second quarter of 2022 and $9.6 million in the third quarter of 2021. The increase in net interest income on a linked quarter basis was driven by a $25.8 million increase in interest income, reflecting higher average loan balances (up $843 million), increased interest income from the securities portfolio and the benefit of higher interest rates. These items more than offset the $17.3 million increase in interest expense that also reflects higher interest rates, as well as a shift in consumer sentiment given the attractiveness of higher yielding time deposits in the current interest rate environment.

The yield on loans for the third quarter of 2022 was 4.86 percent, compared to 4.54 percent in the second quarter of 2022 and 4.76 percent in the third quarter of 2021. The yield on investment securities for the third quarter of 2022 was 2.29 percent, compared to 2.08 percent in the second quarter of 2022 and 1.77 percent in the third quarter of 2021. Cost of deposits for the third quarter of 2022 were 47 basis points, compared to 18 basis points in the second quarter of 2022 and 20 basis points in the third quarter of 2021.  Net interest margin on a fully taxable equivalent basis for the third quarter of 2022 was 3.34 percent, compared to 3.24 percent in the second quarter of 2022 and 2.85 percent in the third quarter of 2021. While PPP loan interest income had no impact on the net interest margin in the third quarter of 2022, it positively impacted the net interest margin by 3 basis points in the second quarter of 2022 and 14 basis points in the third quarter of 2021.

 

Q3 22

Q2 22

Q1 22

Q4 21

Q3 21

Loan yield (FTE) (2)

4.86 %

4.54 %

4.34 %

4.58 %

4.76 %

Security yield (FTE) (2)

2.29

2.08

1.86

1.74

1.77

Cost of interest bearing deposits

0.65

0.25

0.19

0.23

0.27

Cost of deposits

0.47

0.18

0.14

0.17

0.20

Cost of borrowed funds

2.66

2.13

1.94

1.95

1.96

Net interest spread (FTE) (2)

3.11

3.11

2.66

2.74

2.72

Net interest margin (FTE) (2)

3.34

3.24

2.76

2.86

2.85

Net interest margin (FTE)

   excluding PPP (1) (2)

3.34

3.21

2.74

2.79

2.71

Noninterest Income

Noninterest income for the third quarter of 2022 was $43.0 million, compared to $40.2 million in the second quarter of 2022 and $48.6 million in the third quarter of 2021. Gains (losses) on the sales of investment securities totaled $(22) thousand in the third quarter of 2022, $(150) thousand in the second quarter of 2022 and $5.2 million in the third quarter of 2021. The $2.8 million increase in noninterest income on a linked quarter basis was primarily attributable to an increase in wealth management fees (up $1.3 million) and service charges on deposit accounts (up $1.2 million), offset in part by a decline in debit and credit card interchange fees (down $0.5 million).

Noninterest Income

$ in millions

Q3 22

Q2 22

Q1 22

Q4 21

Q3 21

Service charges on deposit accounts

$ 12.6

$ 11.4

$ 10.7

$ 11.9

$ 11.6

Wealth management fees

8.6

7.2

8.0

8.0

7.9

Debit and credit card fees

7.7

8.2

7.4

7.5

7.1

Mortgage lending income

2.6

2.2

4.6

5.0

5.8

Other service charges and fees

2.1

1.9

1.6

1.8

2.0

Bank owned life insurance

2.9

2.6

2.7

2.8

2.6

Gain (loss) on sale of securities

-

(0.2)

(0.1)

(0.3)

5.2

Other income

6.7

6.8

7.3

10.0

6.4

           

Adjusted other income (1)

6.4

6.9

7.3

10.0

6.7

Noninterest Expense

Noninterest expense for the third quarter of 2022 was $138.9 million, compared to $156.8 million in the second quarter of 2022 and $114.3 million in the third quarter of 2021. Included in noninterest expense are certain items, primarily comprised of merger related and branch right sizing costs, totaling $2.6 million in the third quarter of 2022, $19.4 million in the second quarter of 2022 and a $1.9 million credit in the third quarter of 2021. Excluding these certain items (which are described in the "Reconciliation of non-GAAP Financial Measures" table below), adjusted noninterest expense(1) was $136.4 million for the third quarter of 2022, $137.4 million in the second quarter of 2022 and $116.2 million in the third quarter of 2021. The decrease in adjusted noninterest expense on a linked quarter basis was primarily due to a decline in salaries and employee benefits (down $2.2 million) and a $1.6 million contribution to the Simmons First Foundation recorded in the second quarter of 2022 that was not repeated in the third quarter, reflecting a portion of paper statement fees collected as part of an effort to encourage customers to enroll in eStatements. These decreases were offset in part by increases in occupancy expense (up $0.8 million) and deposit insurance (up $0.5 million). The decrease in noninterest expense, coupled with the growth in revenue, resulted in an efficiency ratio(1) of 54.41 percent during the third quarter of 2022, down 308 basis points from second quarter 2022 levels.

Noninterest Expense

$ in millions

Q3 22

Q2 22

Q1 22

Q4 21

Q3 21

Salaries and employee benefits

$71.9

$74.1

$67.9

$63.9

$61.9

Occupancy expense, net

11.7

11.0

10.0

11.0

9.4

Furniture and equipment

5.4

5.1

4.8

4.7

4.9

Deposit insurance

3.3

2.8

1.8

2.1

1.9

Other real estate and foreclosure expense

0.2

0.1

0.3

0.6

0.3

Merger related costs

1.4

19.1

1.9

13.6

1.4

Other operating expenses

45.1

44.5

41.6

45.7

34.6

           

Adjusted salaries and employee benefits (1)

71.9

74.1

67.9

63.8

61.8

Adjusted other operating expenses (1)

44.1

44.5

40.9

45.8

38.3

Efficiency ratio (1)

54.41 %

57.49 %

62.95 %

59.48 %

58.10 %

Loans and Unfunded Loan Commitments

Total loans at the end of the third quarter of 2022 were $15.6 billion, up $497 million, or 3 percent, compared to $15.1 billion at the end of the second quarter of 2022. Loan growth was widespread throughout our geographic markets, and each of our core banking units posted positive loan growth on a linked quarter basis, including Metro Banking (+2 percent), Community Banking (+3 percent) and Corporate Banking (+9 percent). At the same time, growth was generally broad-based by loan type and more than offset continued market-driven weakness in mortgage warehouse lending. Commercial loan line utilization rates have remained relatively stable and below pre-pandemic levels. Additionally, loan growth was weighted toward the latter half of the quarter as period-end loans exceeded average total loans of $15.3 billion for the third quarter of 2022.

Unfunded commitments increased for the sixth consecutive quarter to $5.1 billion, up $665 million or 15 percent on a linked quarter basis. At the same time, activity within our commercial loan pipeline slowed, as expected, given the impact of the rapidly rising interest rates, and our emphasis on maintaining prudent underwriting standards and pricing discipline. Commercial loans approved and ready to close at the end of the third quarter of 2022 totaled $552 million and the rate on ready to close commercial loans was 5.84 percent, up 139 basis points from the rate on ready to close commercial loans at the end of the second quarter of 2022.

$ in millions

Q3 22

Q2 22

Q1 22

Q4 21

Q3 21

Total loans

$15,607

$15,110

$12,029

$12,013

$10,825

           

PPP loans

$  12

$  19

$  62

$117

$212

Mortgage warehouse loans

129

168

166

230

275

Energy loans

55

55

48

105

128

           

Unfunded loan commitments

$5,138

$4,473

$3,428

$2,943

$2,254

Linked quarter change in unfunded commitments

15 %

30 %

16 %

31 %

6 %

Deposits

Total deposits at the end of the third quarter of 2022 were $22.1 billion, compared to $22.0 billion at the end of the second quarter of 2022 and $18.1 billion at the end of the third quarter of 2021. Noninterest bearing deposits totaled $6.2 billion, up 3 percent from second quarter 2022, and represent 28.1 percent of total deposits, compared to 27.5 percent at the end of the second quarter of 2022. Interest bearing deposits (checking, savings and money market accounts) totaled $12.1 billion at the end of the third quarter of 2022, compared to $12.8 billion at the end of the second quarter of 2022. The decline in interest bearing deposits was offset by an increase in time deposits, which totaled $3.8 billion at the end of the third quarter of 2022, compared to $3.2 billion at the end of the second quarter of 2022. The change in mix of deposits on a linked quarter basis was primarily attributable to the attractiveness of higher rate deposits, principally certificates of deposits, given the rapid increase in interest rates that has occurred during 2022. The loan to deposit ratio ended the third quarter of 2022 at 70 percent, compared to 69 percent at the end of the second quarter of 2022 and 60 percent at the end of the third quarter of 2021.  

$ in millions

Q3 22

Q2 22

Q1 22

Q4 21

Q3 21

Noninterest bearing deposits

$  6,218

$  6,057

$  5,224

$  5,325

$  4,919

Interest bearing deposits

12,104

12,816

12,106

11,589

10,697

Time deposits

3,827

3,163

2,062

2,453

2,456

   Total deposits

$22,149

$22,036

$19,392

$19,367

$18,072

           

Noninterest bearing deposits to total deposits

28.1 %

27.5 %

26.9 %

27.5 %

27.2 %

Total loans to total deposits

70.5

68.6

62.0

62.0

59.9

Asset Quality

While the quality of our loan portfolio remains strong, and credit quality metrics remain at historical lows, we continue to carefully monitor our various geographies and segments for signs of stress or weakness. Total nonperforming loans at the end of the third quarter of 2022 were $57.8 million, down $5.8 million compared to $63.6 million at the end of the second quarter of 2022 and down $1.6 million compared to $59.4 million at the end of the third quarter of 2021. Total nonperforming assets as a percentage of total assets were 0.23 percent at the end of the third quarter of 2022, compared to 0.26 percent at the end of the second quarter of 2022 and 0.31 percent at the end of the third quarter of 2021. Loan charge-offs were offset by recoveries in the quarter, resulting in a net charge-off ratio of less than 1 basis point, compared to 2 basis points in the second quarter of 2022 and 17 basis points in the third quarter of 2021.

During the third quarter of 2022, provision for credit losses was $0.1 million, compared to $33.9 million in the second quarter of 2022 and provision recapture of $19.9 million in the third quarter of 2021. The allowance for credit losses on loans at the end of the third quarter of 2022 was $197.6 million, compared to $212.6 million at the end of the second quarter of 2022 and $202.5 million at the end of the third quarter of 2021. The allowance for credit losses on loans to total loans ended the quarter at 1.27 percent, compared to 1.41 percent at the end of the second quarter of 2022 and 1.87 percent at the end of the third quarter of 2021. The nonperforming loan coverage ratio ended the quarter at 342 percent, compared to 334 percent at the end of the second quarter of 2022 and 341 percent at the end of the third quarter of 2021. The reserve for unfunded commitments totaled $41.9 million at the end of the third quarter of 2022, compared to $25.9 million at the end of the third quarter of 2021 and $22.4 million at the end of the third quarter of 2021.

$ in millions

Q3 22

Q2 22

Q1 22

Q4 21

Q3 21

Allowance for credit losses on loans to total loans

1.27 %

1.41 %

1.49 %

1.71 %

1.87 %

Allowance for credit losses on loans to nonperforming loans

342

334

278

300

341

Nonperforming loans to total loans

0.37

0.42

0.53

0.57

0.55

Net charge-off ratio (annualized)

0.02

0.22

0.31

0.17

Net charge-off ratio YTD (annualized)

0.07

0.11

0.22

0.13

0.06

           

Total nonperforming loans

$57.8

$63.6

$64.3

$68.6

$59.4

Total other nonperforming assets

4.7

6.4

6.6

7.7

13.5

   Total nonperforming assets

$62.5

$70.0

$70.9

$76.3

$72.9

           

Reserve for unfunded commitments

$41.9

$25.9

$22.4

$22.4

$22.4

Capital

Total common stockholders' equity at the end of the third quarter of 2022 was $3.2 billion, compared to $3.3 billion at the end of the second quarter of 2022 and $3.0 billion at the end of the third quarter of 2021. The decrease in common stockholders' equity on a linked quarter basis reflected an increase in retained earnings, offset by the return of capital to shareholders through share repurchases and the payment of a cash dividend, and an increase in unrealized losses associated with investment securities classified as available-for-sale. Book value per share at the end of the third quarter of 2022 was $24.87, compared to $25.31 at the end of the second quarter of 2022 and $28.42 at the end of the third quarter of 2021. Tangible book value per share(1) was $13.51 at the end of the third quarter of 2022, compared to $14.07 at the end of the second quarter of 2022 and $17.39 at the end of the third quarter of 2021. Stockholders' equity to total assets at September 30, 2022, was 11.7 percent, and tangible common equity to tangible assets(1) was 6.7 percent. All of Simmons' regulatory capital ratios continue to significantly exceed "well-capitalized" guidelines.

 

Q3 22

Q2 22

Q1 22

Q4 21

Q3 21

Stockholders' equity to total assets

11.7 %

12.0 %

12.1 %

13.1 %

13.1 %

Tangible common equity to tangible assets (1)

6.7

7.0

7.4

8.5

8.4

Regulatory common equity tier 1 ratio

11.7

12.1

13.5

13.8

14.3

Regulatory tier 1 leverage ratio

9.2

9.2

9.0

9.1

9.1

Regulatory tier 1 risk-based capital ratio

11.7

12.1

13.5

13.8

14.3

Regulatory total risk-based capital ratio

14.1

14.8

16.4

16.8

17.4

Share Repurchase Program and Cash Dividend

Simmons has a strong record of returning excess capital to shareholders through a strategic combination of cash dividends and share repurchases. As announced on October 20, 2022, as a result of Simmons' strong capital position and ability to organically generate capital, the board of directors declared a quarterly cash dividend on Simmons' Class A common stock of $0.19 per share, which is payable on January 3, 2023, to shareholders of record as of December 15, 2022. The cash dividend represents an increase of $0.01 per share, or 6 percent, from the dividend paid for the same time period last year. The annual cash dividend rate of $0.76 for 2022 represents a ten-year compound annual growth rate of 7 percent, and 2022 represents the 113th consecutive year that Simmons has paid cash dividends. According to research performed by Dividend Power, Simmons is one of only 23 U.S. publicly traded companies that have paid dividends for 100+ uninterrupted years.

During the third quarter of 2022, Simmons repurchased approximately 1.9 million shares of its Class A common stock at an average price of $23.91 under its 2022 stock repurchase program that was announced in January 2022 (2022 Program). Under the 2022 Program, Simmons is authorized to repurchase up to $175,000,000 of its issued and outstanding Class A common stock. Market conditions and our capital needs will drive the decisions 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, October 25, 2022. Interested persons can listen to this call by dialing toll-free 1-877-270-2148 (North America only) and asking for the Simmons First National Corporation conference call, conference ID 10171429. In addition, the call will be available live or in recorded version on the 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 113 consecutive years. Its principal subsidiary, Simmons Bank, operates 230 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 2022, Simmons Bank was named to Forbes list of "America's Best Banks" for the second consecutive year and was named to Forbes list of "World's Best Banks" for the third 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), 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 the Spirit acquisition, 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 news release may not be based on historical facts and should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, without limitation, statements made in Mr. Makris's quotes, may be identified by reference to future periods or by the use of forward-looking terminology, such as "believe," "budget," "expect," "foresee," "anticipate," "intend," "indicate," "target," "estimate," "plan," "project," "continue," "contemplate," "positions," "prospects," "predict," or "potential," by future conditional verbs such as "will," "would," "should," "could," "might" or "may," or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons' future growth, 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 news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates and related governmental policies, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons' common stock specifically, and information technology affecting the financial industry; the effect of steps the Company takes and has taken in response to the COVID-19 pandemic; the severity and duration of the COVID-19 pandemic and the heightened impact it has on many of the risks described herein; the effects of the COVID-19 pandemic on, among other things, the Company's operations, liquidity, and credit quality; general economic and market conditions; 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; 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, 2021, and other reports that the Company has filed with or furnished to the U.S. Securities and Exchange Commission (the SEC), all of which are available from the SEC on its website, www.sec.gov

 

 Simmons First National Corporation 

               

 SFNC 

 Consolidated End of Period Balance Sheets 

                 

 For the Quarters Ended 

 Sep 30 

 

 Jun 30 

 

 Mar 31 

 

 Dec 31 

 

 Sep 30 

 (Unaudited) 

2022

 

2022

 

2022

 

2021

 

2021

($ in thousands)

                 

 ASSETS 

                 

 Cash and noninterest bearing balances due from banks 

$         175,547

 

$         193,473

 

$         195,510

 

$         209,190

 

$         225,500

 Interest bearing balances due from banks and federal funds sold 

503,863

 

771,374

 

1,491,507

 

1,441,463

 

1,555,913

     Cash and cash equivalents 

679,410

 

964,847

 

1,687,017

 

1,650,653

 

1,781,413

 Interest bearing balances due from banks - time 

1,290

 

1,535

 

1,857

 

1,882

 

1,780

 Investment securities - held-to-maturity 

3,787,076

 

3,819,682

 

1,556,825

 

1,529,221

 

1,516,797

 Investment securities - available-for-sale 

3,937,543

 

4,341,647

 

6,640,069

 

7,113,545

 

6,822,203

 Mortgage loans held for sale 

12,759

 

14,437

 

18,206

 

36,356

 

34,628

 Other loans held for sale 

2,292

 

16,375

 

-

 

100

 

100

 Loans: 

                 

 Loans 

15,607,135

 

15,110,344

 

12,028,593

 

12,012,503

 

10,825,227

 Allowance for credit losses on loans 

(197,589)

 

(212,611)

 

(178,924)

 

(205,332)

 

(202,508)

 Net loans 

15,409,546

 

14,897,733

 

11,849,669

 

11,807,171

 

10,622,719

 Premises and equipment 

549,932

 

553,062

 

486,531

 

483,469

 

463,924

 Foreclosed assets and other real estate owned 

3,612

 

4,084

 

5,118

 

6,032

 

11,759

 Interest receivable 

86,637

 

82,332

 

69,357

 

72,990

 

68,405

 Bank owned life insurance 

488,364

 

486,355

 

448,011

 

445,305

 

421,762

 Goodwill 

1,309,000

 

1,310,528

 

1,147,007

 

1,146,007

 

1,075,305

 Other intangible assets 

133,059

 

137,285

 

102,748

 

106,235

 

100,428

 Other assets 

675,554

 

588,707

 

469,853

 

325,793

 

304,707

 Total assets 

$    27,076,074

 

$    27,218,609

 

$    24,482,268

 

$    24,724,759

 

$    23,225,930

                   

 LIABILITIES AND STOCKHOLDERS' EQUITY 

                 

 Deposits: 

                 

 Noninterest bearing transaction accounts 

$      6,218,283

 

$      6,057,186

 

$      5,223,862

 

$      5,325,318

 

$      4,918,845

 Interest bearing transaction accounts and savings deposits 

12,103,994

 

12,816,198

 

12,105,948

 

11,588,770

 

10,697,451

 Time deposits 

3,826,415

 

3,162,479

 

2,062,612

 

2,452,460

 

2,455,774

         Total deposits 

22,148,692

 

22,035,863

 

19,392,422

 

19,366,548

 

18,072,070

 Federal funds purchased and securities sold 

                 

 under agreements to repurchase 

168,513

 

155,101

 

196,828

 

185,403

 

217,276

 Other borrowings 

964,772

 

1,060,244

 

1,337,243

 

1,337,973

 

1,338,585

 Subordinated notes and debentures 

365,951

 

421,693

 

384,242

 

384,131

 

383,278

 Accrued interest and other liabilities 

270,995

 

285,813

 

209,926

 

201,863

 

184,190

 Total liabilities 

23,918,923

 

23,958,714

 

21,520,661

 

21,475,918

 

20,195,399

                   

 Stockholders' equity: 

                 

 Preferred stock 

-

 

-

 

-

 

-

 

767

 Common stock 

1,269

 

1,288

 

1,125

 

1,127

 

1,066

 Surplus 

2,527,153

 

2,569,060

 

2,150,453

 

2,164,989

 

1,974,561

 Undivided profits 

1,196,459

 

1,139,975

 

1,136,990

 

1,093,270

 

1,065,566

 Accumulated other comprehensive (loss) income: 

                 

 Unrealized (depreciation) appreciation on AFS securities 

(567,730)

 

(450,428)

 

(326,961)

 

(10,545)

 

(11,429)

 Total stockholders' equity 

3,157,151

 

3,259,895

 

2,961,607

 

3,248,841

 

3,030,531

 Total liabilities and stockholders' equity 

$    27,076,074

 

$    27,218,609

 

$    24,482,268

 

$    24,724,759

 

$    23,225,930

 

 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) 

2022

 

2022

 

2022

 

2021

 

2021

($ in thousands, except per share data)

                 

 INTEREST INCOME 

                 

    Loans (including fees) 

$ 187,347

 

$ 163,578

 

$ 127,176

 

$ 137,564

 

$    132,216

    Interest bearing balances due from banks and federal funds sold 

1,141

 

1,117

 

649

 

583

 

763

    Investment securities 

40,954

 

37,848

 

33,712

 

32,275

 

30,717

    Mortgage loans held for sale 

178

 

200

 

190

 

310

 

230

    Other loans held for sale 

998

 

2,063

 

-

 

-

 

-

            TOTAL INTEREST INCOME 

230,618

 

204,806

 

161,727

 

170,732

 

163,926

 INTEREST EXPENSE 

                 

    Time deposits 

8,204

 

2,875

 

2,503

 

3,705

 

4,747

    Other deposits 

17,225

 

6,879

 

4,314

 

4,390

 

4,369

    Federal funds purchased and securities 

                 

      sold under agreements to repurchase 

305

 

119

 

68

 

72

 

70

    Other borrowings 

6,048

 

4,844

 

4,779

 

4,903

 

4,893

    Subordinated notes and debentures 

5,251

 

4,990

 

4,457

 

4,581

 

4,610

            TOTAL INTEREST EXPENSE 

37,033

 

19,707

 

16,121

 

17,651

 

18,689

 NET INTEREST INCOME 

193,585

 

185,099

 

145,606

 

153,081

 

145,237

    Provision for credit losses 

103

 

33,859

 

(19,914)

 

(1,308)

 

(19,890)

 NET INTEREST INCOME AFTER PROVISION 

                 

    FOR CREDIT LOSSES 

193,482

 

151,240

 

165,520

 

154,389

 

165,127

 NONINTEREST INCOME 

                 

    Service charges on deposit accounts 

12,560

 

11,379

 

10,696

 

11,909

 

11,557

    Debit and credit card fees 

7,685

 

8,224

 

7,449

 

7,460

 

7,102

    Wealth management fees 

8,562

 

7,214

 

7,968

 

8,042

 

7,877

    Mortgage lending income 

2,593

 

2,240

 

4,550

 

5,043

 

5,818

    Bank owned life insurance income 

2,902

 

2,563

 

2,706

 

2,768

 

2,573

    Other service charges and fees (includes insurance income) 

2,085

 

1,871

 

1,637

 

1,762

 

1,964

    Gain (loss) on sale of securities 

(22)

 

(150)

 

(54)

 

(348)

 

5,248

    Other income 

6,658

 

6,837

 

7,266

 

9,965

 

6,411

            TOTAL NONINTEREST INCOME 

43,023

 

40,178

 

42,218

 

46,601

 

48,550

 NONINTEREST EXPENSE 

                 

    Salaries and employee benefits 

71,923

 

74,135

 

67,906

 

63,832

 

61,902

    Occupancy expense, net 

11,674

 

11,004

 

10,023

 

11,033

 

9,361

    Furniture and equipment expense 

5,394

 

5,104

 

4,775

 

4,721

 

4,895

    Other real estate and foreclosure expense 

168

 

142

 

343

 

576

 

339

    Deposit insurance 

3,278

 

2,812

 

1,838

 

2,108

 

1,870

    Merger-related costs 

1,422

 

19,133

 

1,886

 

13,591

 

1,401

    Other operating expenses 

45,084

 

44,483

 

41,646

 

45,736

 

34,565

            TOTAL NONINTEREST EXPENSE 

138,943

 

156,813

 

128,417

 

141,597

 

114,333

 NET INCOME BEFORE INCOME TAXES 

97,562

 

34,605

 

79,321

 

59,393

 

99,344

    Provision for income taxes 

16,959

 

7,151

 

14,226

 

11,155

 

18,770

 NET INCOME 

80,603

 

27,454

 

65,095

 

48,238

 

80,574

    Preferred stock dividends 

-

 

-

 

-

 

8

 

13

 NET INCOME AVAILABLE TO COMMON STOCKHOLDERS 

$   80,603

 

$   27,454

 

$   65,095

 

$   48,230

 

$      80,561

 BASIC EARNINGS PER SHARE 

$       0.63

 

$       0.21

 

$       0.58

 

$       0.42

 

$          0.75

 DILUTED EARNINGS PER SHARE 

$       0.63

 

$       0.21

 

$       0.58

 

$       0.42

 

$          0.74

 

 Simmons First National Corporation 

             

 SFNC 

 Consolidated Risk-Based Capital 

                 

 For the Quarters Ended 

Sep 30 

 

Jun 30 

 

Mar 31 

 

Dec 31 

 

Sep 30 

 (Unaudited) 

2022

 

2022

 

2022

 

2021

 

2021

($ in thousands)

                 

Tier 1 capital

                 

   Stockholders' equity

$   3,157,151

 

$   3,259,895

 

$   2,961,607

 

$   3,248,841

 

$      3,030,531

   CECL transition provision (1)

92,619

 

92,619

 

92,619

 

114,458

 

122,787

   Disallowed intangible assets, net of deferred tax

(1,416,453)

 

(1,423,323)

 

(1,224,691)

 

(1,226,686)

 

(1,152,688)

   Unrealized loss (gain) on AFS securities

567,730

 

450,428

 

326,961

 

10,545

 

11,429

      Total Tier 1 capital

2,401,047

 

2,379,619

 

2,156,496

 

2,147,158

 

2,012,059

                   

Tier 2 capital

                 

   Subordinated notes and debentures

365,951

 

421,693

 

384,242

 

384,131

 

383,278

   Qualifying allowance for loan losses and 
       reserve for unfunded commitments

116,257

 

114,733

 

78,057

 

71,853

 

60,700

      Total Tier 2 capital

482,208

 

536,426

 

462,299

 

455,984

 

443,978

      Total risk-based capital

$   2,883,255

 

$   2,916,045

 

$   2,618,795

 

$   2,603,142

 

$      2,456,037

                   

Risk weighted assets

$ 20,470,918

 

$ 19,669,149

 

$ 15,953,622

 

$ 15,538,967

 

$    14,098,320

                   

Adjusted average assets for leverage ratio

$ 25,986,938

 

$ 25,807,113

 

$ 23,966,206

 

$ 23,647,901

 

$    22,189,921

                   

Ratios at end of quarter

                 

   Equity to assets

11.66 %

 

11.98 %

 

12.10 %

 

13.14 %

 

13.05 %

   Tangible common equity to tangible assets (2)

6.69 %

 

7.03 %

 

7.37 %

 

8.51 %

 

8.41 %

   Common equity Tier 1 ratio (CET1)

11.73 %

 

12.10 %

 

13.52 %

 

13.82 %

 

14.27 %

   Tier 1 leverage ratio

9.24 %

 

9.22 %

 

9.00 %

 

9.08 %

 

9.07 %

   Tier 1 risk-based capital ratio

11.73 %

 

12.10 %

 

13.52 %

 

13.82 %

 

14.27 %

   Total risk-based capital ratio

14.08 %

 

14.83 %

 

16.42 %

 

16.75 %

 

17.42 %

                   

(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 

 Sep 30 

 

 Jun 30 

 

 Mar 31 

 

 Dec 31 

 

 Sep 30 

 (Unaudited) 

2022

 

2022

 

2022

 

2021

 

2021

($ in thousands)

                 

Investment Securities - End of Period

                 

 Held-to-Maturity 

                 

    U.S. Government agencies 

$      447,400

 

$      446,789

 

$    232,670

 

$    232,609

 

$    232,549

    Mortgage-backed securities 

1,214,882

 

1,244,713

 

112,496

 

70,342

 

57,930

    State and political subdivisions 

1,865,203

 

1,868,924

 

1,194,459

 

1,209,051

 

1,209,091

    Other securities 

259,591

 

259,256

 

17,200

 

17,219

 

17,227

       Total held-to-maturity (net of credit losses) 

3,787,076

 

3,819,682

 

1,556,825

 

1,529,221

 

1,516,797

 Available-for-Sale 

                 

    U.S. Treasury 

$          2,191

 

$          1,441

 

$              -

 

$           300

 

$           300

    U.S. Government agencies 

188,060

 

198,333

 

333,231

 

364,641

 

354,382

    Mortgage-backed securities 

2,670,348

 

2,963,934

 

4,166,108

 

4,448,616

 

4,421,620

    State and political subdivisions 

822,509

 

915,255

 

1,653,694

 

1,819,658

 

1,575,208

    Other securities 

254,435

 

262,684

 

487,036

 

480,330

 

470,693

       Total available-for-sale (net of credit losses) 

3,937,543

 

4,341,647

 

6,640,069

 

7,113,545

 

6,822,203

       Total investment securities (net of credit losses) 

$   7,724,619

 

$   8,161,329

 

$ 8,196,894

 

$ 8,642,766

 

$ 8,339,000

       Fair value - HTM investment securities 

$   2,984,040

 

$   3,278,962

 

$ 1,307,058

 

$ 1,517,378

 

$ 1,487,916

 

 

 Simmons First National Corporation 

             

 SFNC 

 Consolidated Loans 

                 

 For the Quarters Ended 

 Sep 30 

 

 Jun 30 

 

 Mar 31 

 

 Dec 31 

 

 Sep 30 

 (Unaudited) 

2022

 

2022

 

2022

 

2021

 

2021

($ in thousands)

                 

Loan Portfolio - End of Period

                 

 Consumer: 

                 

    Credit cards 

$      192,559

 

$      189,684

 

$      184,372

 

$      187,052

 

$      175,884

    Other consumer 

180,604

 

204,692

 

180,602

 

168,318

 

182,492

 Total consumer 

373,163

 

394,376

 

364,974

 

355,370

 

358,376

 Real Estate: 

                 

    Construction 

2,372,294

 

2,082,688

 

1,423,445

 

1,326,371

 

1,229,740

    Single-family residential 

2,467,008

 

2,357,942

 

2,042,978

 

2,101,975

 

1,540,701

    Other commercial real estate 

7,249,891

 

7,082,055

 

5,762,567

 

5,738,904

 

5,308,902

 Total real estate 

12,089,193

 

11,522,685

 

9,228,990

 

9,167,250

 

8,079,343

 Commercial: 

                 

    Commercial 

2,525,218

 

2,612,256

 

2,016,405

 

1,992,043

 

1,821,905

    Agricultural 

263,539

 

218,743

 

150,465

 

168,717

 

216,735

 Total commercial 

2,788,757

 

2,830,999

 

2,166,870

 

2,160,760

 

2,038,640

 Other 

356,022

 

362,284

 

267,759

 

329,123

 

348,868

       Total loans 

$ 15,607,135

 

$ 15,110,344

 

$ 12,028,593

 

$ 12,012,503

 

$ 10,825,227

 

 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) 

2022

 

2022

 

2022

 

2021

 

2021

($ in thousands)

                 

Allowance for Credit Losses on Loans

                 

 Beginning balance 

$  212,611

 

$ 178,924

 

$   205,332

 

$  202,508

 

$  227,239

                   

 Day 1 PCD allowance from acquisitions: 

                 

    Landmark (10/08/2021) 

-

 

-

 

-

 

2,359

 

-

    Triumph (10/08/2021) 

-

 

-

 

-

 

11,092

 

-

    Spirit of Texas (04/08/2022) 

1,057

 

4,043

 

-

 

-

 

-

       Total Day 1 PCD allowance 

1,057

 

4,043

 

-

 

13,451

 

-

                   

 Loans charged off: 

                 

    Credit cards 

903

 

1,004

 

920

 

865

 

711

    Other consumer 

505

 

518

 

414

 

477

 

463

    Real estate 

130

 

115

 

485

 

2,624

 

5,941

    Commercial 

1,874

 

688

 

6,319

 

8,513

 

932

       Total loans charged off 

3,412

 

2,325

 

8,138

 

12,479

 

8,047

                   

 Recoveries of loans previously charged off: 

                 

    Credit cards 

250

 

249

 

274

 

247

 

267

    Other consumer 

278

 

302

 

387

 

267

 

408

    Real estate 

1,982

 

391

 

426

 

916

 

2,068

    Commercial 

720

 

621

 

557

 

1,730

 

463

       Total recoveries 

3,230

 

1,563

 

1,644

 

3,160

 

3,206

    Net loans charged off 

182

 

762

 

6,494

 

9,319

 

4,841

 Provision for credit losses on loans 

(15,897)

 

30,406

 

(19,914)

 

(1,308)

 

(19,890)

 Balance, end of quarter 

$  197,589

 

$ 212,611

 

$   178,924

 

$  205,332

 

$  202,508

                   

Nonperforming assets

                 

 Nonperforming loans: 

                 

    Nonaccrual loans 

$    57,534

 

$   62,670

 

$     64,096

 

$    68,204

 

$    59,054

    Loans past due 90 days or more 

242

 

904

 

240

 

349

 

334

       Total nonperforming loans 

57,776

 

63,574

 

64,336

 

68,553

 

59,388

 Other nonperforming assets: 

                 

   Foreclosed assets and other real estate owned

3,612

 

4,084

 

5,118

 

6,032

 

11,759

    Other nonperforming assets 

1,146

 

2,314

 

1,479

 

1,667

 

1,724

       Total other nonperforming assets 

4,758

 

6,398

 

6,597

 

7,699

 

13,483

          Total nonperforming assets 

$    62,534

 

$   69,972

 

$     70,933

 

$    76,252

 

$    72,871

 Performing TDRs (troubled debt restructurings) 

$      1,869

 

$     2,655

 

$       3,424

 

$      4,289

 

$      4,251

                   

Ratios

                 

 Allowance for credit losses on loans to total loans 

1.27 %

 

1.41 %

 

1.49 %

 

1.71 %

 

1.87 %

 Allowance for credit losses to nonperforming loans 

342 %

 

334 %

 

278 %

 

300 %

 

341 %

 Nonperforming loans to total loans 

0.37 %

 

0.42 %

 

0.53 %

 

0.57 %

 

0.55 %

 Nonperforming assets (including performing TDRs)
     to total assets 

0.24 %

 

0.27 %

 

0.30 %

 

0.33 %

 

0.33 %

 Nonperforming assets to total assets 

0.23 %

 

0.26 %

 

0.29 %

 

0.31 %

 

0.31 %

 Annualized net charge offs to average loans (QTD) 

0.00 %

 

0.02 %

 

0.22 %

 

0.31 %

 

0.17 %

 Annualized net charge offs to average loans (YTD) 

0.07 %

 

0.11 %

 

0.22 %

 

0.13 %

 

0.06 %

 Annualized net credit card charge offs to
    average credit card loans 

1.30 %

 

1.55 %

 

1.39 %

 

1.29 %

 

0.96 %

 

 Simmons First National Corporation 

       

 SFNC 

 Consolidated - Average Balance Sheet and Net Interest Income Analysis 

 For the Quarters Ended 

       

 (Unaudited) 

                                 
 

 Three Months Ended
Sep 2022 

 

 Three Months Ended Jun 2022 

 

 Three Months Ended
Sep 2021 

 ($ 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

$      327,841

 

$      1,141

 

1.38 %

 

$      777,098

 

$      1,117

 

0.58 %

 

$   1,866,530

 

$         763

 

0.16 %

   Investment securities - taxable

5,408,189

 

24,848

 

1.82 %

 

5,674,470

 

21,794

 

1.54 %

 

5,475,932

 

17,076

 

1.24 %

   Investment securities - non-taxable (FTE)

2,665,515

 

21,805

 

3.25 %

 

2,725,610

 

21,733

 

3.20 %

 

2,496,958

 

18,399

 

2.92 %

   Mortgage loans held for sale

13,280

 

178

 

5.32 %

 

17,173

 

200

 

4.67 %

 

32,134

 

230

 

2.84 %

   Other loans held for sale

9,439

 

998

 

41.95 %

 

22,114

 

2,063

 

37.42 %

 

-

 

-

 

0.00 %

   Loans - including fees (FTE)

15,320,833

 

187,851

 

4.86 %

 

14,478,183

 

163,995

 

4.54 %

 

11,030,438

 

132,399

 

4.76 %

      Total interest earning assets (FTE)

23,745,097

 

236,821

 

3.96 %

 

23,694,648

 

210,902

 

3.57 %

 

20,901,992

 

168,867

 

3.21 %

   Non-earning assets

3,123,634

         

3,074,384

         

2,353,549

       

     Total assets

$ 26,868,731

         

$ 26,769,032

         

$ 23,255,541

       
                                   

LIABILITIES AND STOCKHOLDERS' EQUITY

                               

Interest bearing liabilities:

                                 

    Interest bearing transaction and 
      savings accounts

$ 12,264,655

 

$    17,225

 

0.56 %

 

$ 12,807,502

 

$      6,879

 

0.22 %

 

$ 10,629,142

 

$      4,369

 

0.16 %

   Time deposits

3,314,948

 

8,204

 

0.98 %

 

2,586,567

 

2,875

 

0.45 %

 

2,645,896

 

4,747

 

0.71 %

      Total interest bearing deposits

15,579,603

 

25,429

 

0.65 %

 

15,394,069

 

9,754

 

0.25 %

 

13,275,038

 

9,116

 

0.27 %

   Federal funds purchased and securities
      sold under agreement to repurchase

196,047

 

305

 

0.62 %

 

210,280

 

119

 

0.23 %

 

219,604

 

70

 

0.13 %

   Other borrowings

1,123,797

 

6,048

 

2.14 %

 

1,241,501

 

4,844

 

1.56 %

 

1,338,866

 

4,893

 

1.45 %

   Subordinated notes and debentures

411,018

 

5,251

 

5.07 %

 

418,327

 

4,990

 

4.78 %

 

383,213

 

4,610

 

4.77 %

      Total interest bearing liabilities

17,310,465

 

37,033

 

0.85 %

 

17,264,177

 

19,707

 

0.46 %

 

15,216,721

 

18,689

 

0.49 %

Non-interest bearing liabilities:

                                 

   Non-interest bearing deposits

6,022,899

         

5,926,304

         

4,803,171

       

   Other liabilities

243,296

         

216,848

         

167,677

       

      Total liabilities

23,576,660

         

23,407,329

         

20,187,569

       

Stockholders' equity

3,292,071

         

3,361,703

         

3,067,972

       

      Total liabilities and stockholders' equity

$ 26,868,731

         

$ 26,769,032

         

$ 23,255,541

       

Net interest income (FTE)

   

$  199,788

         

$  191,195

         

$  150,178

   

Net interest spread (FTE)

       

3.11 %

         

3.11 %

         

2.72 %

Net interest margin (FTE)

       

3.34 %

         

3.24 %

         

2.85 %

 

 Simmons First National Corporation 

             

 SFNC 

 Consolidated - Selected Financial Data 

                 

 For the Quarters Ended 

Sep 30 

 

Jun 30 

 

Mar 31

 

Dec 31 

 

Sep 30 

 (Unaudited) 

2022

 

2022

 

2022

 

2021

 

2021

($ in thousands, except share data)

                 

QUARTER-TO-DATE

                 

Financial Highlights - As Reported

                 

Net Income

$        80,603

 

$        27,454

 

$        65,095

 

$        48,230

 

$        80,561

Diluted earnings per share

0.63

 

0.21

 

0.58

 

0.42

 

0.74

Return on average assets

1.19 %

 

0.41 %

 

1.06 %

 

0.77 %

 

1.37 %

Return on average common equity

9.71 %

 

3.28 %

 

8.33 %

 

5.87 %

 

10.42 %

Return on tangible common equity (non-GAAP) (1)

17.99 %

 

6.28 %

 

14.31 %

 

9.98 %

 

17.43 %

Net interest margin (FTE)

3.34 %

 

3.24 %

 

2.76 %

 

2.86 %

 

2.85 %

FTE adjustment

6,203

 

6,096

 

5,602

 

5,579

 

4,941

Average diluted shares outstanding

128,336,422

 

128,720,078

 

113,026,911

 

114,491,119

 

108,359,890

Shares repurchased under plan

1,883,713

 

2,035,324

 

513,725

 

2,625,348

 

1,806,205

Average price of shares repurchased

23.91

 

24.59

 

31.25

 

29.69

 

28.48

Cash dividends declared per common share

0.190

 

0.190

 

0.190

 

0.180

 

0.180

Accretable yield on acquired loans

5,834

 

9,898

 

3,703

 

5,758

 

4,122

Financial Highlights - Adjusted (non-GAAP) (1)

                 

Adjusted earnings

$        82,281

 

$        66,818

 

$        67,159

 

$        76,244

 

$        79,350

Adjusted diluted earnings per share

0.64

 

0.52

 

0.59

 

0.67

 

0.73

Adjusted return on average assets

1.21 %

 

1.00 %

 

1.10 %

 

1.22 %

 

1.35 %

Adjusted return on average common equity

9.92 %

 

7.97 %

 

8.59 %

 

9.27 %

 

10.26 %

Adjusted return on tangible common equity

18.35 %

 

14.38 %

 

14.74 %

 

15.49 %

 

17.18 %

Efficiency ratio (2)

54.41 %

 

57.49 %

 

62.95 %

 

59.48 %

 

58.10 %

YEAR-TO-DATE

                 

Financial Highlights - GAAP

                 

Net Income

$      173,152

 

$        92,549

 

$        65,095

 

$      271,109

 

$      222,879

Diluted earnings per share

1.40

 

0.77

 

0.58

 

2.46

 

2.05

Return on average assets

0.88 %

 

0.72 %

 

1.06 %

 

1.15 %

 

1.29 %

Return on average common equity

7.07 %

 

5.71 %

 

8.33 %

 

8.83 %

 

9.91 %

Return on tangible common equity (non-GAAP) (1)

12.77 %

 

10.24 %

 

14.31 %

 

14.99 %

 

16.86 %

Net interest margin (FTE)

3.12 %

 

3.01 %

 

2.76 %

 

2.89 %

 

2.91 %

FTE adjustment

17,901

 

11,698

 

5,602

 

19,231

 

13,652

Average diluted shares outstanding

123,387,503

 

120,826,798

 

113,026,911

 

110,198,094

 

108,667,928

Cash dividends declared per common share

0.570

 

0.380

 

0.190

 

0.720

 

0.540

Financial Highlights - Adjusted (non-GAAP) (1)

                 

Adjusted earnings

$      216,258

 

$      133,977

 

$        67,159

 

$      295,024

 

$      218,780

Adjusted diluted earnings per share

1.75

 

1.11

 

0.59

 

2.68

 

2.01

Adjusted return on average assets

1.11 %

 

1.05 %

 

1.10 %

 

1.26 %

 

1.27 %

Adjusted return on average common equity

8.83 %

 

8.27 %

 

8.59 %

 

9.61 %

 

9.73 %

Adjusted return on tangible common equity

15.80 %

 

14.56 %

 

14.74 %

 

16.27 %

 

16.56 %

Efficiency ratio (2)

57.95 %

 

59.97 %

 

62.95 %

 

57.92 %

 

57.37 %

END OF PERIOD

                 

Book value per share

$          24.87

 

$          25.31

 

$          26.32

 

$          28.82

 

$          28.42

Tangible book value per share

13.51

 

14.07

 

15.22

 

17.71

 

17.39

Shares outstanding

126,943,467

 

128,787,764

 

112,505,555

 

112,715,444

 

106,603,231

Full-time equivalent employees

3,206

 

3,233

 

2,893

 

2,877

 

2,740

Total number of financial centers

230

 

233

 

197

 

199

 

185

 

(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 adjusted noninterest expense before foreclosed property expense and amortization of intangibles 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) 

2022

 

2022

 

2022

 

2021

 

2021

 (in thousands, except per share data) 

                 

QUARTER-TO-DATE

                 

 Net Income 

$    80,603

 

$   27,454

 

$     65,095

 

$    48,230

 

$    80,561

 Certain items: 

                 

(Gain) loss from early retirement of TruPS

365

 

-

 

-

 

-

 

-

Gain on sale of intellectual property

(750)

 

-

 

-

 

-

 

-

Merger related costs

1,422

 

19,133

 

1,886

 

13,591

 

1,401

Branch right sizing (net)

1,235

 

380

 

909

 

1,648

 

(3,041)

Day 2 CECL provision

-

 

33,779

 

-

 

22,688

 

-

Tax effect (1)

(594)

 

(13,928)

 

(731)

 

(9,913)

 

429

    Certain items, net of tax 

1,678

 

39,364

 

2,064

 

28,014

 

(1,211)

 Adjusted earnings (non-GAAP) 

$    82,281

 

$   66,818

 

$     67,159

 

$    76,244

 

$    79,350

                   

 Diluted earnings per share 

$        0.63

 

$       0.21

 

$         0.58

 

$        0.42

 

$        0.74

 Certain items: 

                 

(Gain) loss from early retirement of TruPS

-

 

-

 

-

 

-

 

-

Gain on sale of intellectual property

(0.01)

 

-

 

-

 

-

 

-

Merger related costs

0.01

 

0.15

 

0.01

 

0.12

 

0.01

Branch right sizing (net)

0.01

 

-

 

0.01

 

0.01

 

(0.03)

Day 2 CECL provision

-

 

0.27

 

-

 

0.20

 

-

Tax effect (1)

-

 

(0.11)

 

(0.01)

 

(0.08)

 

0.01

    Certain items, net of tax 

0.01

 

0.31

 

0.01

 

0.25

 

(0.01)

 Adjusted diluted earnings per share (non-GAAP) 

$        0.64

 

$       0.52

 

$         0.59

 

$        0.67

 

$        0.73

                   

 (1) Effective tax rate of 26.135%. 

                 
                   

Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)

           
                   

QUARTER-TO-DATE

                 

    Other income 

$      6,658

 

$     6,837

 

$       7,266

 

$      9,965

 

$      6,411

Certain items (1)

(320)

 

88

 

-

 

(2)

 

239

    Adjusted other income (non-GAAP) 

$      6,338

 

$     6,925

 

$       7,266

 

$      9,963

 

$      6,650

                   

    Noninterest expense 

$  138,943

 

$ 156,813

 

$   128,417

 

$  141,597

 

$  114,333

Certain items (1)

(2,592)

 

(19,425)

 

(2,795)

 

(15,241)

 

1,879

    Adjusted noninterest expense (non-GAAP) 

$  136,351

 

$ 137,388

 

$   125,622

 

$  126,356

 

$  116,212

                   

    Salaries and employee benefits 

$    71,923

 

$   74,135

 

$     67,906

 

$    63,832

 

$    61,902

Certain items (1)

-

 

-

 

-

 

-

 

(66)

    Adjusted salaries and employee benefits (non-GAAP) 

$    71,923

 

$   74,135

 

$     67,906

 

$    63,832

 

$    61,836

                   

    Other operating expenses 

$    45,084

 

$   44,483

 

$     41,646

 

$    45,736

 

$    34,565

Certain items (1)

(973)

 

(7)

 

(717)

 

96

 

3,759

    Adjusted other operating expenses (non-GAAP) 

$    44,111

 

$   44,476

 

$     40,929

 

$    45,832

 

$    38,324

 

 (1) Certain items include loss from early retirement of trust preferred securities, gain on sale of intellectual property, 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 

Sep 30 

 

Jun 30 

 

Mar 31 

 

Dec 31 

 

Sep 30 

 (Unaudited) 

2022

 

2022

 

2022

 

2021

 

2021

 (in thousands, except per share data) 

                 

YEAR-TO-DATE

                 

 Net Income 

$  173,152

 

$   92,549

 

$     65,095

 

$  271,109

 

$  222,879

 Certain items: 

                 

Gain on sale of branches

-

 

-

 

-

 

(5,316)

 

(5,316)

(Gain) loss from early retirement of TruPS

365

 

-

 

-

 

-

 

-

Gain on sale of intellectual property

(750)

 

-

 

-

 

-

 

-

Merger related costs

22,441

 

21,019

 

1,886

 

15,911

 

2,320

Branch right sizing (net)

2,524

 

1,289

 

909

 

(906)

 

(2,554)

Day 2 CECL provision

33,779

 

33,779

 

-

 

22,688

 

-

Tax effect (1)

(15,253)

 

(14,659)

 

(731)

 

(8,462)

 

1,451

    Certain items, net of tax 

43,106

 

41,428

 

2,064

 

23,915

 

(4,099)

 Adjusted earnings (non-GAAP) 

$  216,258

 

$ 133,977

 

$     67,159

 

$  295,024

 

$  218,780

                   

 Diluted earnings per share 

$        1.40

 

$       0.77

 

$         0.58

 

$        2.46

 

$        2.05

 Certain items: 

                 

Gain on sale of branches

-

 

-

 

-

 

(0.05)

 

(0.05)

(Gain) loss from early retirement of TruPS

-

 

-

 

-

 

-

 

-

Gain on sale of intellectual property

(0.01)

 

-

 

-

 

-

 

-

Merger related costs

0.18

 

0.17

 

0.01

 

0.15

 

0.02

Branch right sizing (net)

0.02

 

0.01

 

0.01

 

(0.01)

 

(0.02)

Day 2 CECL provision

0.28

 

0.28

 

-

 

0.21

 

-

Tax effect (1)

(0.12)

 

(0.12)

 

(0.01)

 

(0.08)

 

0.01

    Certain items, net of tax 

0.35

 

0.34

 

0.01

 

0.22

 

(0.04)

 Adjusted earnings (non-GAAP) 

$        1.75

 

$       1.11

 

$         0.59

 

$        2.68

 

$        2.01

                   

 (1) Effective tax rate of 26.135%. 

                 
                   

Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP)

           
                   

YEAR-TO-DATE

                 

    Other income 

$    20,761

 

$   14,103

 

$       7,266

 

$    35,273

 

$    25,308

Certain items (1)

(232)

 

88

 

-

 

(5,685)

 

(5,683)

    Adjusted other income (non-GAAP) 

$    20,529

 

$   14,191

 

$       7,266

 

$    29,588

 

$    19,625

                   

    Noninterest expense 

$  424,173

 

$ 285,230

 

$   128,417

 

$  483,589

 

$  341,992

Certain items (1)

(24,812)

 

(22,220)

 

(2,795)

 

(15,374)

 

(133)

    Adjusted noninterest expense (non-GAAP) 

$  399,361

 

$ 263,010

 

$   125,622

 

$  468,215

 

$  341,859

                   

    Salaries and employee benefits 

$  213,964

 

$ 142,041

 

$     67,906

 

$  246,335

 

$  182,503

Certain items (1)

-

 

-

 

-

 

(66)

 

(66)

    Adjusted salaries and employee benefits (non-GAAP) 

$  213,964

 

$ 142,041

 

$     67,906

 

$  246,269

 

$  182,437

                   

    Other operating expenses 

$  131,213

 

$   86,129

 

$     41,646

 

$  153,562

 

$  107,826

Certain items (1)

(1,697)

 

(724)

 

(717)

 

3,558

 

3,462

    Adjusted other operating expenses (non-GAAP) 

$  129,516

 

$   85,405

 

$     40,929

 

$  157,120

 

$  111,288

           

 (1) Certain items include loss from early retirement of trust preferred securities, gain on sale of intellectual property, gain on sale of 

 branches, 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 

Sep 30 

 

Jun 30 

 

Mar 31 

 

Dec 31 

 

Sep 30 

 (Unaudited) 

2022

 

2022

 

2022

 

2021

 

2021

($ 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

$   3,157,151

 

$   3,259,895

 

$   2,961,607

 

$   3,248,841

 

$   3,029,764

Intangible assets:

                 

   Goodwill

(1,309,000)

 

(1,310,528)

 

(1,147,007)

 

(1,146,007)

 

(1,075,305)

   Other intangible assets

(133,059)

 

(137,285)

 

(102,748)

 

(106,235)

 

(100,428)

Total intangibles

(1,442,059)

 

(1,447,813)

 

(1,249,755)

 

(1,252,242)

 

(1,175,733)

Tangible common stockholders' equity

$   1,715,092

 

$   1,812,082

 

$   1,711,852

 

$   1,996,599

 

$   1,854,031

                   

Total assets

$ 27,076,074

 

$ 27,218,609

 

$ 24,482,268

 

$ 24,724,759

 

$ 23,225,930

Intangible assets:

                 

   Goodwill

(1,309,000)

 

(1,310,528)

 

(1,147,007)

 

(1,146,007)

 

(1,075,305)

   Other intangible assets

(133,059)

 

(137,285)

 

(102,748)

 

(106,235)

 

(100,428)

Total intangibles

(1,442,059)

 

(1,447,813)

 

(1,249,755)

 

(1,252,242)

 

(1,175,733)

Tangible assets

$ 25,634,015

 

$ 25,770,796

 

$ 23,232,513

 

$ 23,472,517

 

$ 22,050,197

                   

Paycheck protection program ("PPP") loans

(12,143)

 

(19,476)

 

(61,887)

 

(116,659)

 

(212,087)

Total assets excluding PPP loans

$ 27,063,931

 

$ 27,199,133

 

$ 24,420,381

 

$ 24,608,100

 

$ 23,013,843

Tangible assets excluding PPP loans

$ 25,621,872

 

$ 25,751,320

 

$ 23,170,626

 

$ 23,355,858

 

$ 21,838,110

                   

Ratio of common equity to assets

11.66 %

 

11.98 %

 

12.10 %

 

13.14 %

 

13.04 %

Ratio of common equity to assets excluding PPP loans

11.67 %

 

11.99 %

 

12.13 %

 

13.20 %

 

13.16 %

Ratio of tangible common equity to tangible assets

6.69 %

 

7.03 %

 

7.37 %

 

8.51 %

 

8.41 %

Ratio of tangible common equity to tangible assets excluding PPP loans

6.69 %

 

7.04 %

 

7.39 %

 

8.55 %

 

8.49 %

                   

Calculation of Tangible Book Value per Share

                 
                   

Total common stockholders' equity

$   3,157,151

 

$   3,259,895

 

$   2,961,607

 

$   3,248,841

 

$   3,029,764

Intangible assets:

                 

   Goodwill

(1,309,000)

 

(1,310,528)

 

(1,147,007)

 

(1,146,007)

 

(1,075,305)

   Other intangible assets

(133,059)

 

(137,285)

 

(102,748)

 

(106,235)

 

(100,428)

Total intangibles

(1,442,059)

 

(1,447,813)

 

(1,249,755)

 

(1,252,242)

 

(1,175,733)

Tangible common stockholders' equity

$   1,715,092

 

$   1,812,082

 

$   1,711,852

 

$   1,996,599

 

$   1,854,031

Shares of common stock outstanding

126,943,467

 

128,787,764

 

112,505,555

 

112,715,444

 

106,603,231

Book value per common share

$          24.87

 

$          25.31

 

$          26.32

 

$          28.82

 

$          28.42

Tangible book value per common share

$          13.51

 

$          14.07

 

$          15.22

 

$          17.71

 

$          17.39

 

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) 

2022

 

2022

 

2022

 

2021

 

2021

($ in thousands)

                 

Calculation of Adjusted Return on Average Assets

                 
                   

Net income

$        80,603

 

$        27,454

 

$        65,095

 

$        48,230

 

$                80,561

Certain items, net of tax (non-GAAP)

1,678

 

39,364

 

2,064

 

28,014

 

(1,211)

Adjusted earnings (non-GAAP)

$        82,281

 

$        66,818

 

$        67,159

 

$        76,244

 

$                79,350

                   

Average total assets

$ 26,868,731

 

$ 26,769,032

 

$ 24,826,199

 

$ 24,698,022

 

$         23,255,541

                   

Return on average assets

1.19 %

 

0.41 %

 

1.06 %

 

0.77 %

 

1.37 %

Adjusted return on average assets (non-GAAP)

1.21 %

 

1.00 %

 

1.10 %

 

1.22 %

 

1.35 %

                   

Calculation of Return on Tangible Common Equity

                 
                   

Net income

$        80,603

 

$        27,454

 

$        65,095

 

$        48,230

 

$                80,561

Amortization of intangibles, net of taxes

3,121

 

3,025

 

2,575

 

2,575

 

2,460

Total income available to common stockholders

$        83,724

 

$        30,479

 

$        67,670

 

$        50,805

 

$                83,021

                   

Certain items, net of tax (non-GAAP)

1,678

 

39,364

 

2,064

 

28,014

 

(1,211)

Adjusted earnings (non-GAAP)

82,281

 

66,818

 

67,159

 

76,244

 

79,350

Amortization of intangibles, net of taxes

3,121

 

3,025

 

2,575

 

2,575

 

2,460

Total adjusted earnings available to common stockholders (non-GAAP)

$        85,402

 

$        69,843

 

$        69,734

 

$        78,819

 

$                81,810

                   

Average common stockholders' equity

$   3,292,071

 

$   3,361,703

 

$   3,169,108

 

$   3,261,627

 

$           3,067,205

Average intangible assets:

                 

   Goodwill

(1,309,804)

 

(1,299,821)

 

(1,146,034)

 

(1,137,441)

 

(1,075,305)

   Other intangibles

(135,718)

 

(114,195)

 

(104,905)

 

(105,155)

 

(102,576)

Total average intangibles

(1,445,522)

 

(1,414,016)

 

(1,250,939)

 

(1,242,596)

 

(1,177,881)

Average tangible common stockholders' equity (non-GAAP)

$   1,846,549

 

$   1,947,687

 

$   1,918,169

 

$   2,019,031

 

$           1,889,324

                   

Return on average common equity

9.71 %

 

3.28 %

 

8.33 %

 

5.87 %

 

10.42 %

Return on tangible common equity

17.99 %

 

6.28 %

 

14.31 %

 

9.98 %

 

17.43 %

Adjusted return on average common equity (non-GAAP)

9.92 %

 

7.97 %

 

8.59 %

 

9.27 %

 

10.26 %

Adjusted return on tangible common equity (non-GAAP)

18.35 %

 

14.38 %

 

14.74 %

 

15.49 %

 

17.18 %

                   

Calculation of Efficiency Ratio (1)

                 
                   

Noninterest expense

$      138,943

 

$      156,813

 

$      128,417

 

$      141,597

 

$              114,333

Certain items (non-GAAP)

(2,592)

 

(19,425)

 

(2,795)

 

(15,241)

 

1,879

Other real estate and foreclosure expense adjustment

(168)

 

(142)

 

(343)

 

(576)

 

(339)

Amortization of intangibles adjustment

(4,225)

 

(4,096)

 

(3,486)

 

(3,486)

 

(3,331)

Efficiency ratio numerator

$      131,958

 

$      133,150

 

$      121,793

 

$      122,294

 

$              112,542

                   

Net interest income

$      193,585

 

$      185,099

 

$      145,606

 

$      153,081

 

$              145,237

Noninterest income

43,023

 

40,178

 

42,218

 

46,601

 

48,550

Certain items (non-GAAP)

(320)

 

88

 

-

 

(2)

 

239

Fully tax-equivalent adjustment (effective tax rate of 26.135%)

6,203

 

6,096

 

5,602

 

5,579

 

4,941

(Gain) loss on sale of securities

22

 

150

 

54

 

348

 

(5,248)

Efficiency ratio denominator

$      242,513

 

$      231,611

 

$      193,480

 

$      205,607

 

$              193,719

                   

Efficiency ratio (1)

54.41 %

 

57.49 %

 

62.95 %

 

59.48 %

 

58.10 %

 

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

 

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) 

2022

 

2022

 

2022

 

2021

 

2021

($ in thousands)

                 

Calculation of Adjusted Net Interest Margin

                 
                   

Net interest income

$      193,585

 

$      185,099

 

$      145,606

 

$      153,081

 

$      145,237

Fully tax-equivalent adjustment (effective tax rate of 26.135%)

6,203

 

6,096

 

5,602

 

5,579

 

4,941

Fully tax-equivalent net interest income

199,788

 

191,195

 

151,208

 

158,660

 

150,178

                   

Total accretable yield

(5,834)

 

(9,898)

 

(3,703)

 

(5,758)

 

(4,122)

Adjusted net interest income

$      193,954

 

$      181,297

 

$      147,505

 

$      152,902

 

$      146,056

                   

PPP loan interest income

(191)

 

$         (1,648)

 

$         (2,113)

 

$         (5,107)

 

$         (9,614)

Net interest income adjusted for PPP loans

$      199,597

 

$      189,547

 

$      149,095

 

$      153,553

 

$      140,564

                   

Average earning assets

$ 23,745,097

 

$ 23,694,648

 

$ 22,185,215

 

$ 22,029,792

 

$ 20,901,992

Average PPP loan balance

(18,179)

 

(43,329)

 

(89,757)

 

(172,130)

 

(359,828)

Average earning assets adjusted for PPP loans

$ 23,726,918

 

$ 23,651,319

 

$ 22,095,458

 

$ 21,857,662

 

$ 20,542,164

                   

Net interest margin

3.34 %

 

3.24 %

 

2.76 %

 

2.86 %

 

2.85 %

Net interest margin adjusted for PPP loans

3.34 %

 

3.21 %

 

2.74 %

 

2.79 %

 

2.71 %

                   

Calculation of Pre-Provision Net Revenue (PPNR)

                 
                   

Net interest income

$      193,585

 

$      185,099

 

$      145,606

 

$      153,081

 

$      145,237

Noninterest income

43,023

 

40,178

 

42,218

 

46,601

 

48,550

Less: Gain (loss) on sale of securities

(22)

 

(150)

 

(54)

 

(348)

 

5,248

Less: Noninterest expense

138,943

 

156,813

 

128,417

 

141,597

 

114,333

Pre-Provision Net Revenue (PPNR)

$        97,687

 

$        68,614

 

$        59,461

 

$        58,433

 

$        74,206

                   

Calculation of Adjusted Pre-Provision Net Revenue

                 
                   

Pre-Provision Net Revenue (PPNR)

$        97,687

 

$        68,614

 

$        59,461

 

$        58,433

 

$        74,206

Plus: Loss from early retirement of TruPS

365

 

-

 

-

 

-

 

-

Less: Gain on sale of intellectual property

(750)

 

-

 

-

 

-

 

-

Plus: Merger related costs

1,422

 

19,133

 

1,886

 

13,591

 

1,401

Plus: Branch right sizing costs

1,235

 

380

 

909

 

1,648

 

(3,041)

Adjusted Pre-Provision Net Revenue

$        99,959

 

$        88,127

 

$        62,256

 

$        73,672

 

$        72,566

 

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) 

2022

 

2022

 

2022

 

2021

 

2021

($ in thousands)

                 

Calculation of Adjusted Return on Average Assets

                 
                   

Net income

$      173,152

 

$        92,549

 

$        65,095

 

$      271,109

 

$      222,879

Certain items, net of tax (non-GAAP)

43,106

 

41,428

 

2,064

 

7,157

 

(4,099)

Adjusted earnings (non-GAAP)

$      216,258

 

$      133,977

 

$        67,159

 

$      278,266

 

$      218,780

                   

Average total assets

$ 26,162,136

 

$ 25,802,982

 

$ 24,826,199

 

$ 23,492,308

 

$ 23,085,987

                   

Return on average assets

0.88 %

 

0.72 %

 

1.06 %

 

1.15 %

 

1.29 %

Adjusted return on average assets (non-GAAP)

1.11 %

 

1.05 %

 

1.10 %

 

1.18 %

 

1.27 %

                   

Calculation of Return on Tangible Common Equity

                 
                   

Net income

$      173,152

 

$        92,549

 

$        65,095

 

$      271,109

 

$      222,879

Amortization of intangibles, net of taxes

8,721

 

5,600

 

2,575

 

9,967

 

7,392

Total income available to common stockholders

$      181,873

 

$        98,149

 

$        67,670

 

$      281,076

 

$      230,271

                   

Certain items, net of tax (non-GAAP)

43,106

 

41,428

 

2,064

 

7,157

 

(4,099)

Adjusted earnings (non-GAAP)

216,258

 

133,977

 

67,159

 

278,266

 

218,780

Amortization of intangibles, net of taxes

8,721

 

5,600

 

2,575

 

9,967

 

7,392

Total adjusted earnings available to common stockholders (non-GAAP)

$      224,979

 

$      139,577

 

$        69,734

 

$      288,233

 

$      226,172

                   

Average common stockholders' equity

$   3,274,743

 

$   3,265,935

 

$   3,169,108

 

$   3,071,313

 

$   3,007,181

Average intangible assets:

                 

   Goodwill

(1,252,486)

 

(1,223,352)

 

(1,146,034)

 

(1,090,967)

 

(1,075,305)

   Other intangibles

(118,385)

 

(109,575)

 

(104,905)

 

(105,820)

 

(106,043)

Total average intangibles

(1,370,871)

 

(1,332,927)

 

(1,250,939)

 

(1,196,787)

 

(1,181,348)

Average tangible common stockholders' equity (non-GAAP)

$   1,903,872

 

$   1,933,008

 

$   1,918,169

 

$   1,874,526

 

$   1,825,833

                   

Return on average common equity

7.07 %

 

5.71 %

 

8.33 %

 

8.83 %

 

9.91 %

Return on tangible common equity

12.77 %

 

10.24 %

 

14.31 %

 

14.99 %

 

16.86 %

Adjusted return on average common equity (non-GAAP)

8.83 %

 

8.27 %

 

8.59 %

 

9.06 %

 

9.73 %

Adjusted return on tangible common equity (non-GAAP)

15.80 %

 

14.56 %

 

14.74 %

 

15.38 %

 

16.56 %

                   

Calculation of Efficiency Ratio (1)

                 
                   

Noninterest expense

$      424,173

 

$      285,230

 

$      128,417

 

$      483,589

 

$      341,992

Certain items (non-GAAP)

(24,812)

 

(22,220)

 

(2,795)

 

(15,374)

 

(133)

Other real estate and foreclosure expense adjustment

(653)

 

(485)

 

(343)

 

(2,121)

 

(1,545)

Amortization of intangibles adjustment

(11,807)

 

(7,582)

 

(3,486)

 

(13,494)

 

(10,008)

Efficiency ratio numerator

$      386,901

 

$      254,943

 

$      121,793

 

$      452,600

 

$      330,306

                   

Net interest income

$      524,290

 

$      330,705

 

$      145,606

 

$      591,532

 

$      438,451

Noninterest income

125,419

 

82,396

 

42,218

 

191,815

 

145,214

Certain items (non-GAAP)

(232)

 

88

 

-

 

(5,685)

 

(5,683)

Fully tax-equivalent adjustment (effective tax rate of 26.135%)

17,901

 

11,698

 

5,602

 

19,231

 

13,652

(Gain) loss on sale of securities

226

 

204

 

54

 

(15,498)

 

(15,846)

Efficiency ratio denominator

$      667,604

 

$      425,091

 

$      193,480

 

$      781,395

 

$      575,788

                   

Efficiency ratio (1)

57.95 %

 

59.97 %

 

62.95 %

 

57.92 %

 

57.37 %

 

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

 

 

 

SOURCE Simmons First National Corporation

For further information: Ed Bilek, EVP, Director of Investor and Media Relations, ed.bilek@simmonsbank.com, 205.612.3378 (cell)