Simmons First National Corporation Reports First Quarter 2025 Results

, /PRNewswire/ -- George Makris, Jr., Simmons' Chairman and Chief Executive Officer, commented on first quarter 2025 results: We are pleased with our first quarter's performance, which demonstrated the continued improvement in profitability fundamentals. Increases in loans and customer deposits combined with a decrease in wholesale funding have driven a healthy increase in our net interest margin and positive trends in total revenue. We increased the loss provision on two specific credit relationships that we have been watching for some time due to unfavorable events that occurred for both since the end of 2024. Otherwise, we believe the asset quality in our portfolio remains sound. We are, though, carefully monitoring the economic volatility in the United States and the world. Financial markets suffer in times of uncertainty, which appears present today, and can threaten the pace of business investment. We are hopeful for stability in economic policy, which will provide better insight into future growth opportunities. In the meantime, we will continue to invest in our business as well as the communities we serve. Financial Highlights 1Q25 4Q24 1Q24 1Q25 Highlights Balance Sheet (in millions) Comparisons reflect 1Q25 vs 1Q24 unless otherwise noted • Total revenue of $209.6 million and PPNR1 of $65.0 million • Adjusted total revenue1 of $209.6 million and adjusted PPNR1 of $66.0 million • Net interest margin of 2.95%, up 8 bps; the 4th consecutive quarterly increase in net interest margin • Cost of deposits at 2.44%, down 16 bps; customer deposits up $183 million • Noninterest income of $46.2 million, up 6% linked quarter • Noninterest expense includes a $4.3 million charge related to a customer deposit fraud event identified during the quarter • Nonaccrual loans include two specific credit relationships totaling $49.8 million • $15.6 million of incremental provision expense associated with the two specific credit relationships • NCO ratio of 23 bps in 1Q24; 4 bps of NCO ratio associated with run-off portfolio Total loans $17,094 $17,006 $17,002 Total investment securities 6,107 6,166 6,735 Total deposits 21,685 21,886 22,353 Total assets 26,793 26,876 27,372 Total shareholders' equity 3,531 3,529 3,439 Performance Measures (in millions) Total revenue $209.6 $208.5 $195.1 Adjusted total revenue1 209.6 208.5 195.1 Pre-provision net revenue1 (PPNR) 65.0 67.4 55.2 Adjusted pre-provision net revenue1 66.0 69.2 57.2 Provision for credit losses on loans 26.8 13.3 10.2 Per share Data Diluted earnings $ 0.26 $ 0.38 $ 0.31 Adjusted diluted earnings1 0.26 0.39 0.32 Book value 28.04 28.08 27.42 Tangible book value1 16.81 16.80 16.02 Asset Quality Net charge-off ratio (NCO ratio) 0.23 % 0.27 % 0.19 % Nonperforming loan ratio 0.89 0.65 0.63 Nonperforming assets to total assets 0.61 0.45 0.41 Allowance for credit losses to loans (ACL) 1.48 1.38 1.34 Nonperforming loan coverage ratio 165 212 212 Capital Ratios Equity to assets (EA ratio) 13.18 % 13.13 % 12.56 % Tangible common equity (TCE) ratio1 8.34 8.29 7.75 Common equity tier 1 (CET1) ratio 12.21 12.38 11.95 Total risk-based capital ratio 14.59 14.61 14.43 other data Net interest margin (FTE) 2.95 % 2.87 % 2.66 % Loan yield (FTE) 6.20 6.32 6.24 Cost of deposits 2.44 2.60 2.75 Loan to deposit ratio 78.83 77.70 76.06 Borrowed funds to total liabilities 5.59 4.92 5.42 Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $32.4 million for the first quarter of 2025, compared to $48.3 million in the fourth quarter of 2024 and $38.9 million in the first quarter of 2024. Diluted earnings per share were $0.26 for the first quarter of 2025, compared to $0.38 in the fourth quarter of 2024 and $0.31 in the first quarter of 2024. Adjusted earnings1 for the first quarter of 2025 were $33.1 million, compared to $49.6 million in the fourth quarter of 2024 and $40.4 million in the first quarter of 2024. Adjusted diluted earnings per share1 for the first quarter of 2025 were $0.26, compared to $0.39 in the fourth quarter of 2024 and $0.32 in the first quarter of 2024. The table below summarizes the impact of certain items, consisting primarily of branch right sizing, early retirement and FDIC special assessments. 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 1Q25 4Q24 1Q24 Net income $ 32.4 $ 48.3 $ 38.9 Branch right sizing, net 1.0 1.6 0.2 Early retirement program - 0.2 0.2 FDIC special assessment - - 1.6 Total pre-tax impact 1.0 1.8 2.0 Tax effect2 (0.3) (0.5) (0.5) Total impact on earnings 0.7 1.3 1.5 Adjusted earnings1 $ 33.1 $ 49.6 $ 40.4 Diluted EPS $ 0.26 $ 0.38 $ 0.31 Branch right sizing, net - 0.01 - Early retirement program - - - FDIC special assessment - - 0.01 Total pre-tax impact - 0.01 0.01 Tax effect2 - - - Total impact on earnings - 0.01 0.01 Adjusted Diluted EPS1 $ 0.26 $ 0.39 $ 0.32 At the end of the first quarter of 2025, two specific credit relationships totaling $49.8 million migrated to nonperforming. The first credit relationship totaling $26.9 million relates to a downtown St. Louis hotel that was originated pre-pandemic and has been on our classified list since April of 2021. This is the only credit relationship within our portfolio located in downtown St. Louis. While the property securing the relationship remains in operation and we believe is entering a stronger season of the year, the borrower experienced seasonal stress during the first quarter of 2025 combined with harsher than usual winter conditions. As a result, we raised our specific reserve level to 63 percent of principal, which we expect to adequately cover any potential loss beyond the combined value of collateral and recourse. The second credit relationship totaling $22.9 million relating to a fast-food operator primarily resulted from our latest acquisition and has been on our classified list since June of 2024 due to sector-related headwinds and global cash flow concerns with the borrower. While such loan was current on interest as of March 31, 2025, the migration to nonperforming was due, in part, to the fact that we identified a large customer deposit fraud during the first quarter of 2025 that concerned entities affiliated with the borrower (the "Fraud Event"). (Accordingly, total noninterest expense during the first quarter of 2025 included a charge of $4.3 million associated with the Fraud Event.) The specific reserve on this relationship was raised to 61 percent of principal, which we expect to adequately cover any potential loss beyond the combined value of collateral and recourse. In total, the incremental provision expense associated with these two specific credit relationships accounted for $15.6 million of the total $26.8 million of provision for credit losses on loans recorded during the first quarter of 2025. Net Interest IncomeNet interest income for the first quarter of 2025 totaled $163.4 million, compared to $164.9 million in the fourth quarter of 2024 and $151.9 million in the first quarter of 2024. Interest income totaled $307.8 million for the first quarter of 2025, compared to $326.0 million in the fourth quarter of 2024 and $322.6 million in the first quarter of 2024. The decrease in interest income on a linked quarter basis was primarily driven by interest rate cuts at the end of 2024 and the corresponding decline in earning asset yields, lower day count in the comparable quarters and a reduction in swap income given the reduction in interest rates. Interest expense totaled $144.4 million for the first quarter of 2025, compared to $161.0 million in the fourth quarter of 2024 and $170.7 million in the first quarter of 2024. The decrease in interest expense reflected a lower interest rate environment, management's efforts to proactively manage deposit costs and a reduction in the use of wholesale funding. Included in net interest income is accretion recognized on acquisition related loans, which totaled $1.1 million in the first quarter of 2025, $1.9 million in the fourth quarter of 2024 and $1.1 million in the first quarter of 2024. The yield on loans on a fully taxable equivalent (FTE) basis for the first quarter of 2025 was 6.20 percent, down 12 basis points from 6.32 percent for the fourth quarter of 2024 and down 4 basis points from 6.24 percent in the first quarter of 2024. Cost of deposits for the first quarter of 2025 was 2.44 percent, down 16 basis points from 2.60 percent in the fourth quarter of 2024 and 31 basis points from 2.75 percent in the first quarter of 2024. The net interest margin on an FTE basis for the first quarter of 2025 was 2.95 percent, up 8 basis points from 2.87 percent in the third quarter of 2024 and up 29 basis points from 2.66 percent in the first quarter of 2024. This marked the fourth consecutive quarter of net interest margin expansion. The increase in net interest margin on a linked quarter basis was primarily due to lower deposits costs, as well as the reduced rate and use of wholesale funding that more than offset a decline on the yield and volume of earning assets. Select Yield/Rates 1Q25 4Q24 3Q24 2Q24 1Q24 Loan yield (FTE)2 6.20 % 6.32 % 6.44 % 6.39 % 6.24 % Investment securities yield (FTE)2 3.48 3.54 3.63 3.68 3.76 Cost of interest bearing deposits 3.05 3.28 3.52 3.53 3.48 Cost of deposits 2.44 2.60 2.79 2.79 2.75 Cost of borrowed funds 5.09 5.32 5.79 5.84 5.85 Net interest spread (FTE)2 2.30 2.15 1.95 1.92 1.89 Net interest margin (FTE)2 2.95 2.87 2.74 2.69 2.66 Noninterest IncomeNoninterest income for the first quarter of 2025 was $46.2 million, compared to $43.6 million in the fourth quarter of 2024 and $43.2 million in the first quarter of 2024. The increase in noninterest income on a linked quarter basis was primarily due to increased swap fee income and fair value adjustments on Small Business Investment Company (SBIC) investments, which are included in "Other income" in the table below. The increase in noninterest income on a year-over-year basis was primarily due to increased swap fee income, coupled with increases in wealth management fees and service charges on deposit accounts. Noninterest Income $ in millions 1Q25 4Q24 3Q24 2Q24 1Q24 Service charges on deposit accounts $ 12.6 $ 13.0 $ 12.7 $ 12.3 $ 12.0 Wealth management fees 9.6 9.7 9.1 9.2 8.4 Debit and credit card fees 8.4 8.3 8.1 8.2 8.2 Mortgage lending income 2.0 1.8 2.0 2.0 2.3 Other service charges and fees 1.3 1.4 1.5 1.4 1.3 Bank owned life insurance 4.1 3.8 3.8 3.9 3.8 Gain (loss) on sale of securities - - (28.4) - - Other income 8.0 5.6 8.3 6.4 7.2 Total noninterest income $ 46.2 $ 43.6 $ 17.1 $ 43.3 $ 43.2 Adjusted noninterest income1 $ 46.2 $ 43.6 $ 45.5 $43.3 $43.2 Noninterest ExpenseNoninterest expense for the first quarter of 2025 was $144.6 million, compared to $141.1 million in the fourth quarter of 2024 and $139.9 million in the first quarter of 2024. Included in noninterest expense are certain items consisting of branch right sizing, early retirement and an FDIC special assessment. Collectively, these items totaled $1.0 million in the first quarter of 2025, $1.8 million in the fourth quarter of 2024 and $2.0 million in the first quarter of 2024. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest expense1 was $143.6 million for the first quarter of 2025, $139.3 million in the fourth quarter of 2024 and $137.9 million in the first quarter of 2024. The increase in adjusted noninterest expense on a linked quarter basis reflected increased salaries and benefits primarily due to seasonally higher payroll taxes and the previously mentioned Fraud Event. Excluding the $4.3 million of expenses associated with the Fraud Event, adjusted noninterest expense for the first quarter of 2025 would have been $139.3 million 1, down slightly from fourth quarter 2024 levels. Noninterest Expense $ in millions 1Q25 4Q24 3Q24 2Q24 1Q24 Salaries and employee benefits $ 74.8 $ 71.6 $ 69.2 $ 70.7 $ 72.7 Occupancy expense, net 12.7 11.9 12.2 11.9 12.3 Furniture and equipment 5.5 5.7 5.6 5.6 5.1 Deposit insurance 5.4 5.6 5.6 5.4 5.5 Other real estate and foreclosure expense 0.2 0.3 0.1 0.1 0.2 FDIC special assessment - - - 0.3 1.6 Other operating expenses 46.1 46.1 44.5 45.4 42.5 Total noninterest expense $144.6 $141.1 $137.2 $139.4 $139.9 Adjusted salaries and employee benefits1 $ 74.8 $ 71.4 $ 69.2 $ 70.6 $ 72.4 Adjusted other operating expenses1 45.9 44.7 44.4 44.3 42.4 Adjusted noninterest expense1 143.6 139.3 136.8 137.8 137.9 Efficiency ratio 66.94 % 65.66 % 75.70 % 68.38 % 69.41 % Adjusted efficiency ratio1 64.75 62.89 63.38 65.68 66.42 Full-time equivalent employees 2,949 2,946 2,972 2,961 2,989 Number of financial centers 222 222 234 234 233 Loans and Unfunded Loan CommitmentsTotal loans at the end of the first quarter of 2025 were $17.1 billion, compared to $17.0 billion at the end of both the fourth quarter of 2024 and the first quarter of 2024. The increase in total loans on a linked quarter basis was primarily due to growth in the commercial real estate, mortgage warehouse and agricultural portfolios. Unfunded loan commitments at the end of the first quarter of 2025 were $3.9 billion, up $149 million, or 4 percent, from fourth quarter 2024 levels. The commercial loan pipeline totaled $1.8 billion at the end of the first quarter of 2025, up 43 percent compared to the fourth quarter of 2024, and ready to close commercial loans totaled $757 million, marking the third consecutive quarterly increase in both metrics. Loans and Unfunded Loan Commitments $ in millions 1Q25 4Q24 3Q24 2Q24 1Q24 Total loans $17,094 $17,006 $17,336 $17,192 $17,002 Unfunded loan commitments 3,888 3,739 3,681 3,746 3,875 Deposits and Other BorrowingsTotal deposits at the end of the first quarter of 2025 were $21.7 billion, compared to $21.9 billion at the end of the fourth quarter of 2024 and $22.4 billion at the end of the first quarter of 2024. The decrease in total deposits on a linked quarter basis was primarily due to a decline in time deposits and brokered deposits, offset in part by an increase in interest bearing transaction accounts (checking, money market and savings accounts, and public funds). Other borrowings totaled $1.3 billion at the end of the first quarter of 2025, compared to $1.1 billion at the end of the fourth quarter of 2024. The increase in other borrowings on a linked quarter was primarily due to an increase in FHLB advances. Deposits $ in millions 1Q25 4Q24 3Q24 2Q24 1Q24 Noninterest bearing deposits $ 4,455 $ 4,461 $ 4,522 $ 4,624 $ 4,698 Interest bearing transaction accounts 10,621 10,331 10,038 10,092 10,316 Time deposits 3,695 3,796 4,014 4,185 4,314 Brokered deposits 2,914 3,298 3,361 2,940 3,025 Total deposits $21,684 $21,886 $21,935 $21,841 $22,353 Noninterest bearing deposits to total deposits 21 % 20 % 21 % 21 % 21 % Total loans to total deposits 79 78 79 79 76 Asset QualityNet charge-offs as a percentage of average loans for the first quarter of 2025 were 23 basis points, compared to 27 basis points in the fourth quarter of 2024 and 19 basis points in the first quarter of 2024. Net charge-offs in the first quarter of 2025 included $1.9 million of charge-offs associated with a run-off portfolio consisting of small ticket equipment finance and acquired asset-based lending portfolios ("run-off portfolio"). Net charge-offs from the run-off portfolio accounted for 4 basis points of total net charge-offs during the first quarter of 2025, 6 basis points of total net charge-offs during the fourth quarter of 2024 and 11 basis points of total net charge-offs in the first quarter of 2024. Total nonperforming loans at the end of the first quarter of 2025 totaled $152.3 million, compared to $110.7 million at the end of the fourth quarter of 2024 and $107.3 million at the end of the first quarter of 2024. The increase in the nonperforming loans on a linked quarter basis and year-over-year basis was primarily due to the two specific credit relationships discussed above that were placed on nonaccrual at the end of the first quarter of 2025. The nonperforming loan coverage ratio ended the first quarter of 2025 at 165 percent, compared to 212 percent at both the end of the fourth quarter of 2024 and the first quarter of 2024. Total nonperforming assets as a percentage of total assets were 61 basis points at the end of the first quarter of 2025, compared to 45 basis points at the end of the fourth quarter of 2024 and 41 basis points at the end of the first quarter of 2024. Provision for credit losses on loans totaled $26.8 million for the first quarter of 2025, compared to $13.3 million in the fourth quarter of 2024 and $10.2 million in the first quarter of 2024. The increase in provision for credit losses on loans primarily reflected $15.6 million of incremental provision related to the aforementioned two specific credit relationships. The allowance for credit losses on loans at the end of the first quarter of 2025 was $252.2 million, compared to $235.0 million at the end of the fourth quarter of 2024 and $227.4 million at the end of the first quarter of 2024. The allowance for credit losses on loans as a percentage of total loans was 1.48 percent at the end of the first quarter of 2025, compared to 1.38 percent at the end of the fourth quarter of 2024 and 1.34 percent at the end of the first quarter of 2024. Asset Quality $ in millions 1Q25 4Q24 3Q24 2Q24 1Q24 Allowance for credit losses on loans to total loans 1.48 % 1.38 % 1.35 % 1.34 % 1.34 % Allowance for credit losses on loans to nonperforming loans 165 212 229 223 212 Nonperforming loans to total loans 0.89 0.65 0.59 0.60 0.63 Net charge-off ratio (annualized) 0.23 0.27 0.22 0.19 0.19 Net charge-off ratio YTD (annualized) 0.23 0.22 0.20 0.19 0.19 Total nonperforming loans $152.3 $110.7 $101.7 $103.4 $107.3 Total other nonperforming assets 10.0 10.5 2.6 3.4 5.0 Total nonperforming assets $162.3 $121.2 $104.3 $106.8 $112.3 Reserve for unfunded commitments $25.6 $25.6 $25.6 $25.6 $25.6 CapitalTotal stockholders' equity at the end of the first quarter of 2025 was $3.5 billion, up slightly from the end of the fourth quarter of 2024 and up $92.4 million from $3.4 billion at the end of the first quarter of 2024. The increase on a year-over-year basis was primarily due to an increase of $40.3 million in retained earnings, coupled with a $40.3 million recapture of accumulated other comprehensive income principally associated with the mark-to-market adjustment on AFS investment securities. Book value per share at the end of the first quarter of 2025 was $28.04, compared to $28.08 at the end of the fourth quarter of 2024 and $27.42 at the end of the first quarter of 2024. Tangible book value per share1 at the end of the first quarter of 2025 was $16.81, compared to $16.80 at the end of the fourth quarter of 2024 and $16.02 at the end of the first quarter of 2024. Total stockholders' equity as a percentage of total assets at the end of the first quarter of 2025 was 13.2 percent, compared to 13.1 percent at the end of the fourth quarter of 2024 and 12.6 percent at the end of the first quarter of 2024. Tangible common equity as a percentage of tangible assets1 at the end of the first quarter of 2025 was 8.3 percent, up slightly from fourth quarter 2024 levels and up from 7.8 percent reported at the end of the first quarter of 2024. Each of the applicable regulatory capital ratios for Simmons and its principal subsidiary, Simmons Bank, continue to significantly exceed "well-capitalized" regulatory guidelines. Select Capital Ratios 1Q25 4Q24 3Q24 2Q24 1Q24 Stockholders' equity to total assets 13.2 % 13.1 % 12.9 % 12.6 % 12.6 % Tangible common equity to tangible assets1 8.3 8.3 8.2 7.8 7.8 Common equity tier 1 (CET1) ratio 12.2 12.4 12.1 12.0 12.0 Tier 1 leverage ratio 9.8 9.7 9.6 9.5 9.4 Tier 1 risk-based capital ratio 12.2 12.4 12.1 12.0 12.0 Total risk-based capital ratio 14.6 14.6 14.3 14.2 14.4 Share Repurchase ProgramDuring the first quarter of 2025, 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 March 31, 2025, 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 CallManagement will conduct a live conference call to review this information beginning at 7:30 a.m. Central Time on Thursday, April 17, 2025. Interested persons can listen to this call by dialing toll-free 1-844-481-2779 (North America only) and asking for the Simmons First National Corporation conference call, conference ID 10198144. In addition, the call will be available live or in recorded version on Simmons' website at simmonsbank.com for at least 60 days following the date of the call. Simmons First National CorporationSimmons First National Corporation (NASDAQ: SFNC) is a Mid-South based financial holding company that has paid cash dividends to its shareholders for 116 consecutive years. Its principal subsidiary, Simmons Bank, operates 222 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 Newsweek as one of America's Best Regional Banks 2025, 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 MeasuresThis press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (GAAP). The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from net income (including on a per share diluted basis), pre-tax, pre-provision earnings, net charge-offs, income available to common shareholders, noninterest income, and noninterest 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, early retirement program, FDIC special assessment charges and expenses related to the Fraud Event. 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, or the aforementioned two specific credit relationships. 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 StatementsCertain 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. Makris'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, future economic conditions and interest rates, and the adequacy of reserve levels for loans. 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; changes in tariff policies; 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) 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); fraud that results in material losses or that we have not discovered yet that may result in material 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; significant increases in nonaccrual loan balances; cyber or other information technology 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. 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. 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, 2024, 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 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ in thousands) ASSETS Cash and noninterest bearing balances due from banks $ 423,171 $ 429,705 $ 398,321 $ 320,021 $ 380,324 Interest bearing balances due from banks and federal funds sold 211,115 257,672 205,081 254,312 222,979 Cash and cash equivalents 634,286 687,377 603,402 574,333 603,303 Interest bearing balances due from banks - time 100 100 100 100 100 Investment securities - held-to-maturity 3,615,556 3,636,636 3,658,700 3,685,450 3,707,258 Investment securities - available-for-sale 2,491,849 2,529,426 2,691,094 2,885,904 3,027,558 Mortgage loans held for sale 8,351 11,417 8,270 13,053 11,899 Loans: Loans 17,094,078 17,005,937 17,336,040 17,192,437 17,001,760 Allowance for credit losses on loans (252,168) (235,019) (233,223) (230,389) (227,367) Net loans 16,841,910 16,770,918 17,102,817 16,962,048 16,774,393 Premises and equipment 573,616 585,431 584,366 581,893 576,466 Foreclosed assets and other real estate owned 8,976 9,270 1,299 2,209 3,511 Interest receivable 117,398 123,243 125,700 126,625 122,781 Bank owned life insurance 535,324 531,805 508,781 505,023 503,348 Goodwill 1,320,799 1,320,799 1,320,799 1,320,799 1,320,799 Other intangible assets 93,714 97,242 101,093 104,943 108,795 Other assets 551,112 572,385 562,983 606,692 611,964 Total assets $ 26,792,991 $ 26,876,049 $ 27,269,404 $ 27,369,072 $ 27,372,175 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest bearing transaction accounts $ 4,455,255 $ 4,460,517 $ 4,521,715 $ 4,624,186 $ 4,697,539 Interest bearing transaction accounts and savings deposits 11,265,554 10,982,022 10,863,945 10,925,179 11,071,762 Time deposits 5,963,811 6,443,211 6,549,774 6,291,518 6,583,703 Total deposits 21,684,620 21,885,750 21,935,434 21,840,883 22,353,004 Federal funds purchased and securities sold under agreements to repurchase 50,133 37,109 51,071 52,705 58,760 Other borrowings 884,863 745,372 1,045,878 1,346,378 871,874 Subordinated notes and debentures 366,331 366,293 366,255 366,217 366,179 Accrued interest and other liabilities 275,559 312,653 341,933 304,020 283,232 Total liabilities 23,261,506 23,347,177 23,740,571 23,910,203 23,933,049 Stockholders' equity: Common stock 1,259 1,257 1,256 1,255 1,254 Surplus 2,515,372 2,511,590 2,508,438 2,506,469 2,503,673 Undivided profits 1,382,564 1,376,935 1,355,000 1,356,626 1,342,215 Accumulated other comprehensive (loss) income (367,710) (360,910) (335,861) (405,481) (408,016) Total stockholders' equity 3,531,485 3,528,872 3,528,833 3,458,869 3,439,126 Total liabilities and stockholders' equity $ 26,792,991 $ 26,876,049 $ 27,269,404 $ 27,369,072 $ 27,372,175 Simmons First National Corporation SFNC Consolidated Statements of Income - Quarter-to-Date For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ in thousands, except per share data) INTEREST INCOME Loans (including fees) $ 257,755 $ 272,727 $ 277,939 $ 270,937 $ 261,490 Interest bearing balances due from banks and federal funds sold 2,703 2,913 2,921 2,964 3,010 Investment securities 47,257 50,162 53,220 55,050 58,001 Mortgage loans held for sale 122 180 209 194 148 TOTAL INTEREST INCOME 307,837 325,982 334,289 329,145 322,649 INTEREST EXPENSE Time deposits 62,559 70,661 73,937 73,946 73,241 Other deposits 67,895 72,369 78,307 79,087 78,692 Federal funds purchased and securities sold under agreements to repurchase 113 119 138 156 189 Other borrowings 7,714 11,386 17,067 15,025 11,649 Subordinated notes and debentures 6,134 6,505 7,128 7,026 6,972 TOTAL INTEREST EXPENSE 144,415 161,040 176,577 175,240 170,743 NET INTEREST INCOME 163,422 164,942 157,712 153,905 151,906 PROVISION FOR CREDIT LOSSES Provision for credit losses on loans 26,797 13,332 12,148 11,099 10,206 TOTAL PROVISION FOR CREDIT LOSSES 26,797 13,332 12,148 11,099 10,206 NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 136,625 151,610 145,564 142,806 141,700 NONINTEREST INCOME Service charges on deposit accounts 12,635 12,978 12,713 12,252 11,955 Debit and credit card fees 8,446 8,323 8,144 8,162 8,246 Wealth management fees 9,629 9,658 9,098 9,187 8,398 Mortgage lending income 2,013 1,828 1,956 1,973 2,320 Bank owned life insurance income 4,092 3,780 3,757 3,876 3,814 Other service charges and fees (includes insurance income) 1,333 1,426 1,509 1,439 1,279 Gain (loss) on sale of securities - - (28,393) - - Other income 8,007 5,565 8,346 6,410 7,172 TOTAL NONINTEREST INCOME 46,155 43,558 17,130 43,299 43,184 NONINTEREST EXPENSE Salaries and employee benefits 74,824 71,588 69,167 70,716 72,653 Occupancy expense, net 12,651 11,876 12,216 11,864 12,258 Furniture and equipment expense 5,465 5,671 5,612 5,623 5,141 Other real estate and foreclosure expense 198 317 87 117 179 Deposit insurance 5,391 5,550 5,571 5,682 7,135 Other operating expenses 46,051 46,115 44,540 45,352 42,513 TOTAL NONINTEREST EXPENSE 144,580 141,117 137,193 139,354 139,879 NET INCOME BEFORE INCOME TAXES 38,200 54,051 25,501 46,751 45,005 Provision for income taxes 5,812 5,732 761 5,988 6,134 NET INCOME $ 32,388 $ 48,319 $ 24,740 $ 40,763 $ 38,871 BASIC EARNINGS PER SHARE $ 0.26 $ 0.38 $ 0.20 $ 0.32 $ 0.31 DILUTED EARNINGS PER SHARE $ 0.26 $ 0.38 $ 0.20 $ 0.32 $ 0.31 Simmons First National Corporation SFNC Consolidated Risk-Based Capital For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ in thousands) Tier 1 capital Stockholders' equity $ 3,531,485 $ 3,528,872 $ 3,528,833 $ 3,458,869 $ 3,439,126 CECL transition provision (1) - 30,873 30,873 30,873 30,873 Disallowed intangible assets, net of deferred tax (1,381,953) (1,385,128) (1,388,549) (1,391,969) (1,394,672) Unrealized loss (gain) on AFS securities 367,710 360,910 335,861 405,481 408,016 Total Tier 1 capital 2,517,242 2,535,527 2,507,018 2,503,254 2,483,343 Tier 2 capital Subordinated notes and debentures 366,331 366,293 366,255 366,217 366,179 Subordinated debt phase out (132,000) (132,000) (132,000) (132,000) (66,000) Qualifying allowance for loan losses and reserve for unfunded commitments 257,769 222,313 220,517 217,684 214,660 Total Tier 2 capital 492,100 456,606 454,772 451,901 514,839 Total risk-based capital $ 3,009,342 $ 2,992,133 $ 2,961,790 $ 2,955,155 $ 2,998,182 Risk weighted assets $ 20,621,540 $ 20,473,960 $ 20,790,941 $ 20,856,194 $ 20,782,094 Adjusted average assets for leverage ratio $ 25,619,424 $ 26,037,459 $ 26,198,178 $ 26,371,545 $ 26,312,873 Ratios at end of quarter Equity to assets 13.18 % 13.13 % 12.94 % 12.64 % 12.56 % Tangible common equity to tangible assets (2) 8.34 % 8.29 % 8.15 % 7.84 % 7.75 % Common equity Tier 1 ratio (CET1) 12.21 % 12.38 % 12.06 % 12.00 % 11.95 % Tier 1 leverage ratio 9.83 % 9.74 % 9.57 % 9.49 % 9.44 % Tier 1 risk-based capital ratio 12.21 % 12.38 % 12.06 % 12.00 % 11.95 % Total risk-based capital ratio 14.59 % 14.61 % 14.25 % 14.17 % 14.43 % (1) The Company has elected to use the CECL transition provision allowed for in the year of adopting ASC 326. (2) Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release. Simmons First National Corporation SFNC Consolidated Investment Securities For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ in thousands) Investment Securities - End of Period Held-to-Maturity U.S. Government agencies $ 456,545 $ 455,869 $ 455,179 $ 454,488 $ 453,805 Mortgage-backed securities 1,048,170 1,070,032 1,093,070 1,119,741 1,142,352 State and political subdivisions 1,856,905 1,857,177 1,857,283 1,857,409 1,855,642 Other securities 253,936 253,558 253,168 253,812 255,459 Total held-to-maturity (net of credit losses) 3,615,556 3,636,636 3,658,700 3,685,450 3,707,258 Available-for-Sale U.S. Treasury $ 699 $ 996 $ 1,290 $ 1,275 $ 1,964 U.S. Government agencies 52,318 54,547 58,397 66,563 69,801 Mortgage-backed securities 1,380,913 1,392,759 1,510,402 1,730,842 1,845,364 State and political subdivisions 832,898 858,182 898,178 864,190 874,849 Other securities 225,021 222,942 222,827 223,034 235,580 Total available-for-sale (net of credit losses) 2,491,849 2,529,426 2,691,094 2,885,904 3,027,558 Total investment securities (net of credit losses) $ 6,107,405 $ 6,166,062 $ 6,349,794 $ 6,571,354 $ 6,734,816 Fair value - HTM investment securities $ 2,929,625 $ 2,949,951 $ 3,109,610 $ 3,005,524 $ 3,049,281 Simmons First National Corporation SFNC Consolidated Loans For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ in thousands) Loan Portfolio - End of Period Consumer: Credit cards $ 179,680 $ 181,675 $ 177,696 $ 178,354 $ 182,742 Other consumer 97,198 127,319 113,896 130,278 124,531 Total consumer 276,878 308,994 291,592 308,632 307,273 Real Estate: Construction 2,778,245 2,789,249 2,796,378 3,056,703 3,331,739 Single-family residential 2,647,451 2,689,946 2,724,648 2,666,201 2,624,738 Other commercial real estate 8,051,304 7,912,336 7,992,437 7,760,266 7,508,049 Total real estate 13,477,000 13,391,531 13,513,463 13,483,170 13,464,526 Commercial: Commercial 2,372,681 2,434,175 2,467,384 2,484,474 2,499,311 Agricultural 370,923 261,154 314,340 285,181 226,642 Total commercial 2,743,604 2,695,329 2,781,724 2,769,655 2,725,953 Other 596,596 610,083 749,261 630,980 504,008 Total loans $ 17,094,078 $ 17,005,937 $ 17,336,040 $ 17,192,437 $ 17,001,760 Simmons First National Corporation SFNC Consolidated Allowance and Asset Quality For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ in thousands) Allowance for Credit Losses on Loans Beginning balance $ 235,019 $ 233,223 $ 230,389 $ 227,367 $ 225,231 Loans charged off: Credit cards 1,460 1,629 1,744 1,418 1,646 Other consumer 1,133 505 524 550 732 Real estate 4,425 3,810 159 123 2,857 Commercial 4,243 6,796 8,235 7,243 4,593 Total loans charged off 11,261 12,740 10,662 9,334 9,828 Recoveries of loans previously charged off: Credit cards 211 391 231 221 248 Other consumer 306 279 275 509 333 Real estate 99 275 403 72 735 Commercial 997 259 439 455 442 Total recoveries 1,613 1,204 1,348 1,257 1,758 Net loans charged off 9,648 11,536 9,314 8,077 8,070 Provision for credit losses on loans 26,797 13,332 12,148 11,099 10,206 Balance, end of quarter $ 252,168 $ 235,019 $ 233,223 $ 230,389 $ 227,367 Nonperforming assets Nonperforming loans: Nonaccrual loans $ 151,897 $ 110,154 $ 100,865 $ 102,891 $ 105,788 Loans past due 90 days or more 494 603 830 558 1,527 Total nonperforming loans 152,391 110,757 101,695 103,449 107,315 Other nonperforming assets: Foreclosed assets and other real estate owned 8,976 9,270 1,299 2,209 3,511 Other nonperforming assets 978 1,202 1,311 1,167 1,491 Total other nonperforming assets 9,954 10,472 2,610 3,376 5,002 Total nonperforming assets $ 162,345 $ 121,229 $ 104,305 $ 106,825 $ 112,317 Ratios Allowance for credit losses on loans to total loans 1.48 % 1.38 % 1.35 % 1.34 % 1.34 % Allowance for credit losses to nonperforming loans 165 % 212 % 229 % 223 % 212 % Nonperforming loans to total loans 0.89 % 0.65 % 0.59 % 0.60 % 0.63 % Nonperforming assets to total assets 0.61 % 0.45 % 0.38 % 0.39 % 0.41 % Annualized net charge offs to average loans (QTD) 0.23 % 0.27 % 0.22 % 0.19 % 0.19 % Annualized net charge offs to average loans (YTD) 0.23 % 0.22 % 0.20 % 0.19 % 0.19 % Annualized net credit card charge offs to average credit card loans (QTD) 2.72 % 2.63 % 3.23 % 2.50 % 2.88 % Simmons First National Corporation SFNC Consolidated - Average Balance Sheet and Net Interest Income Analysis For the Quarters Ended (Unaudited) Three Months EndedMar 2025 Three Months EndedDec 2024 Three Months EndedMar 2024 ($ in thousands) AverageBalance Income/Expense Yield/Rate AverageBalance Income/Expense Yield/Rate AverageBalance Income/Expense Yield/Rate ASSETS Earning assets: Interest bearing balances due from banks and federal funds sold $ 241,021 $ 2,703 4.55 % $ 238,731 $ 2,913 4.85 % $ 211,121 $ 3,010 5.73 % Investment securities - taxable 3,540,559 31,584 3.62 % 3,633,138 34,459 3.77 % 4,162,455 42,198 4.08 % Investment securities - non-taxable (FTE) 2,608,070 21,217 3.30 % 2,633,148 21,260 3.21 % 2,635,368 21,301 3.25 % Mortgage loans held for sale 8,142 122 6.08 % 10,713 180 6.68 % 9,048 148 6.58 % Loans - including fees (FTE) 16,920,050 258,625 6.20 % 17,212,034 273,594 6.32 % 16,900,496 262,414 6.24 % Total interest earning assets (FTE) 23,317,842 314,251 5.47 % 23,727,764 332,406 5.57 % 23,918,488 329,071 5.53 % Non-earning assets 3,360,786 3,351,179 3,340,911 Total assets $ 26,678,628 $ 27,078,943 $ 27,259,399 LIABILITIES AND STOCKHOLDERS' EQUITY Interest bearing liabilities: Interest bearing transaction and savings accounts $ 11,177,550 $ 67,895 2.46 % $ 10,967,450 $ 72,369 2.63 % $ 11,132,396 $ 78,692 2.84 % Time deposits 6,160,429 62,559 4.12 % 6,397,251 70,661 4.39 % 6,448,014 73,241 4.57 % Total interest bearing deposits 17,337,979 130,454 3.05 % 17,364,701 143,030 3.28 % 17,580,410 151,933 3.48 % Federal funds purchased and securities sold under agreement to repurchase 39,797 113 1.15 % 47,314 119 1.00 % 54,160 189 1.40 % Other borrowings 706,402 7,714 4.43 % 932,366 11,386 4.86 % 873,278 11,649 5.37 % Subordinated notes and debentures 366,312 6,134 6.79 % 366,274 6,505 7.07 % 366,160 6,972 7.66 % Total interest bearing liabilities 18,450,490 144,415 3.17 % 18,710,655 161,040 3.42 % 18,874,008 170,743 3.64 % Noninterest bearing liabilities: Noninterest bearing deposits 4,342,948 4,491,361 4,654,179 Other liabilities 320,721 333,781 284,191 Total liabilities 23,114,159 23,535,797 23,812,378 Stockholders' equity 3,564,469 3,543,146 3,447,021 Total liabilities and stockholders' equity $ 26,678,628 $ 27,078,943 $ 27,259,399 Net interest income (FTE) $ 169,836 $ 171,366 $ 158,328 Net interest spread (FTE) 2.30 % 2.15 % 1.89 % Net interest margin (FTE) 2.95 % 2.87 % 2.66 % Simmons First National Corporation SFNC Consolidated - Selected Financial Data For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ in thousands, except share data) QUARTER-TO-DATE Financial Highlights - As Reported Net Income $ 32,388 $ 48,319 $ 24,740 $ 40,763 $ 38,871 Diluted earnings per share 0.26 0.38 0.20 0.32 0.31 Return on average assets 0.49 % 0.71 % 0.36 % 0.60 % 0.57 % Return on average common equity 3.69 % 5.43 % 2.81 % 4.75 % 4.54 % Return on tangible common equity (non-GAAP) (1) 6.61 % 9.59 % 5.27 % 8.67 % 8.33 % Net interest margin (FTE) 2.95 % 2.87 % 2.74 % 2.69 % 2.66 % Efficiency ratio (2) 66.94 % 65.66 % 75.70 % 68.38 % 69.41 % FTE adjustment 6,414 6,424 6,398 6,576 6,422 Average diluted shares outstanding 126,336,557 126,232,084 125,999,269 125,758,166 125,661,950 Cash dividends declared per common share 0.213 0.210 0.210 0.210 0.210 Accretable yield on acquired loans 1,084 1,863 1,496 1,569 1,123 Financial Highlights - Adjusted (non-GAAP) (1) Adjusted earnings $ 33,122 $ 49,634 $ 46,005 $ 41,897 $ 40,351 Adjusted diluted earnings per share 0.26 0.39 0.37 0.33 0.32 Adjusted return on average assets 0.50 % 0.73 % 0.67 % 0.62 % 0.60 % Adjusted return on average common equity 3.77 % 5.57 % 5.22 % 4.88 % 4.71 % Adjusted return on tangible common equity 6.75 % 9.83 % 9.34 % 8.89 % 8.62 % Adjusted efficiency ratio (2) 64.75 % 62.89 % 63.38 % 65.68 % 66.42 % YEAR-TO-DATE Financial Highlights - GAAP Net Income $ 32,388 $ 152,693 $ 104,374 $ 79,634 $ 38,871 Diluted earnings per share 0.26 1.21 0.83 0.63 0.31 Return on average assets 0.49 % 0.56 % 0.51 % 0.59 % 0.57 % Return on average common equity 3.69 % 4.38 % 4.02 % 4.64 % 4.54 % Return on tangible common equity (non-GAAP) (1) 6.61 % 7.96 % 7.39 % 8.50 % 8.33 % Net interest margin (FTE) 2.95 % 2.74 % 2.70 % 2.68 % 2.66 % Efficiency ratio (2) 66.94 % 69.57 % 71.00 % 68.90 % 69.41 % FTE adjustment 6,414 25,820 19,396 12,998 6,422 Average diluted shares outstanding 126,336,557 126,115,606 125,910,260 125,693,536 125,661,950 Cash dividends declared per common share 0.213 0.840 0.630 0.420 0.210 Financial Highlights - Adjusted (non-GAAP) (1) Adjusted earnings $ 33,122 $ 177,887 $ 128,253 $ 82,248 $ 40,351 Adjusted diluted earnings per share 0.26 1.41 1.02 0.65 0.32 Adjusted return on average assets 0.50 % 0.65 % 0.63 % 0.61 % 0.60 % Adjusted return on average common equity 3.77 % 5.10 % 4.94 % 4.80 % 4.71 % Adjusted return on tangible common equity 6.75 % 9.18 % 8.96 % 8.76 % 8.62 % Adjusted efficiency ratio (2) 64.75 % 64.56 % 65.14 % 66.05 % 66.42 % END OF PERIOD Book value per share $ 28.04 $ 28.08 $ 28.11 $ 27.56 $ 27.42 Tangible book value per share 16.81 16.80 16.78 16.20 16.02 Shares outstanding 125,926,822 125,651,540 125,554,598 125,487,520 125,419,618 Full-time equivalent employees 2,949 2,946 2,972 2,961 2,989 Total number of financial centers 222 222 234 234 233 (1) Non-GAAP measurement that management believes aids in the understanding and discussion of results. Reconciliations to GAAP are included in the schedules accompanying this release. (2) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues. Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is a non-GAAP measurement. Simmons First National Corporation SFNC Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Quarter-to-Date For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 (in thousands, except per share data) QUARTER-TO-DATE Net income $ 32,388 $ 48,319 $ 24,740 $ 40,763 $ 38,871 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - - - 283 1,549 Early retirement program - 200 (1) 118 219 Termination of vendor and software services - - (13) 615 - Loss (gain) on sale of securities - - 28,393 - - Branch right sizing (net) 994 1,581 410 519 236 Tax effect of certain items (1) (260) (466) (7,524) (401) (524) Certain items, net of tax 734 1,315 21,265 1,134 1,480 Adjusted earnings (non-GAAP) $ 33,122 $ 49,634 $ 46,005 $ 41,897 $ 40,351 Diluted earnings per share $ 0.26 $ 0.38 $ 0.20 $ 0.32 $ 0.31 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - - - - 0.01 Early retirement program - - - - - Termination of vendor and software services - - - 0.01 - Loss (gain) on sale of securities - - 0.23 - - Branch right sizing (net) - 0.01 - - - Tax effect of certain items (1) - - (0.06) - - Certain items, net of tax - 0.01 0.17 0.01 0.01 Adjusted diluted earnings per share (non-GAAP) $ 0.26 $ 0.39 $ 0.37 $ 0.33 $ 0.32 (1) Effective tax rate of 26.135%. Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP) QUARTER-TO-DATE Noninterest income $ 46,155 $ 43,558 $ 17,130 $ 43,299 $ 43,184 Certain noninterest income items Loss (gain) on sale of securities - - 28,393 - - Adjusted noninterest income (non-GAAP) $ 46,155 $ 43,558 $ 45,523 $ 43,299 $ 43,184 Noninterest expense $ 144,580 $ 141,117 $ 137,193 $ 139,354 $ 139,879 Certain noninterest expense items Early retirement program - (200) 1 (118) (219) FDIC Deposit Insurance special assessment - - - (283) (1,549) Termination of vendor and software services - - 13 (615) - Branch right sizing expense (994) (1,581) (410) (519) (236) Adjusted noninterest expense (non-GAAP) 143,586 139,336 136,797 137,819 137,875 Less: Fraud event (4,300) - - - - Adjusted noninterest expense, excluding fraud event (non-GAAP) $ 139,286 $ 139,336 $ 136,797 $ 137,819 $ 137,875 Salaries and employee benefits $ 74,824 $ 71,588 $ 69,167 $ 70,716 $ 72,653 Certain salaries and employee benefits items Early retirement program - (200) 1 (118) (219) Other - - (1) 1 - Adjusted salaries and employee benefits (non-GAAP) $ 74,824 $ 71,388 $ 69,167 $ 70,599 $ 72,434 Other operating expenses $ 46,051 $ 46,115 $ 44,540 $ 45,352 $ 42,513 Certain other operating expenses items Termination of vendor and software services - - 13 (615) - Branch right sizing expense (161) (1,457) (184) (392) (83) Adjusted other operating expenses (non-GAAP) $ 45,890 $ 44,658 $ 44,369 $ 44,345 $ 42,430 Simmons First National Corporation SFNC Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Year-to-Date For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 (in thousands, except per share data) YEAR-TO-DATE Net income $ 32,388 $ 152,693 $ 104,374 $ 79,634 $ 38,871 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - 1,832 1,832 1,832 1,549 Early retirement program - 536 336 337 219 Termination of vendor and software services - 602 602 615 - Loss (gain) on sale of securities - 28,393 28,393 - - Branch right sizing (net) 994 2,746 1,165 755 236 Tax effect of certain items (1) (260) (8,915) (8,449) (925) (524) Certain items, net of tax 734 25,194 23,879 2,614 1,480 Adjusted earnings (non-GAAP) $ 33,122 $ 177,887 $ 128,253 $ 82,248 $ 40,351 Diluted earnings per share $ 0.26 $ 1.21 $ 0.83 $ 0.63 $ 0.31 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - 0.02 0.02 0.02 0.01 Early retirement program - - - - - Termination of vendor and software services - - - - - Loss (gain) on sale of securities - 0.23 0.23 - - Branch right sizing (net) - 0.02 0.01 0.01 - Tax effect of certain items (1) - (0.07) (0.07) (0.01) - Certain items, net of tax - 0.20 0.19 0.02 0.01 Adjusted diluted earnings per share (non-GAAP) $ 0.26 $ 1.41 $ 1.02 $ 0.65 $ 0.32 (1) Effective tax rate of 26.135%. Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP) YEAR-TO-DATE Noninterest income $ 46,155 $ 147,171 $ 103,613 $ 86,483 $ 43,184 Certain noninterest income items Loss (gain) on sale of securities - 28,393 28,393 - - Adjusted noninterest income (non-GAAP) $ 46,155 $ 175,564 $ 132,006 $ 86,483 $ 43,184 Noninterest expense $ 144,580 $ 557,543 $ 416,426 $ 279,233 $ 139,879 Certain noninterest expense items Early retirement program - (536) (336) (337) (219) FDIC Deposit Insurance special assessment - (1,832) (1,832) (1,832) (1,549) Termination of vendor and software services - (602) (602) (615) - Branch right sizing expense (994) (2,746) (1,165) (755) (236) Adjusted noninterest expense (non-GAAP) 143,586 551,827 412,491 275,694 137,875 Less: Fraud event (4,300) - - - - Adjusted noninterest expense, excluding fraud event (non-GAAP) $ 139,286 $ 551,827 $ 412,491 $ 275,694 $ 137,875 Salaries and employee benefits $ 74,824 $ 284,124 $ 212,536 $ 143,369 $ 72,653 Certain salaries and employee benefits items Early retirement program - (536) (336) (337) (219) Other - - - 1 - Adjusted salaries and employee benefits (non-GAAP) $ 74,824 $ 283,588 $ 212,200 $ 143,033 $ 72,434 Other operating expenses $ 46,051 $ 178,520 $ 132,405 $ 87,865 $ 42,513 Certain other operating expenses items Termination of vendor and software services - (602) (602) (615) - Branch right sizing expense (161) (2,116) (659) (475) (83) Adjusted other operating expenses (non-GAAP) $ 45,890 $ 175,802 $ 131,144 $ 86,775 $ 42,430 Simmons First National Corporation SFNC Reconciliation Of Non-GAAP Financial Measures - End of Period For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ 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 $ 3,531,485 $ 3,528,872 $ 3,528,833 $ 3,458,869 $ 3,439,126 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799) Other intangible assets (93,714) (97,242) (101,093) (104,943) (108,795) Total intangibles (1,414,513) (1,418,041) (1,421,892) (1,425,742) (1,429,594) Tangible common stockholders' equity $ 2,116,972 $ 2,110,831 $ 2,106,941 $ 2,033,127 $ 2,009,532 Total assets $ 26,792,991 $ 26,876,049 $ 27,269,404 $ 27,369,072 $ 27,372,175 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799) Other intangible assets (93,714) (97,242) (101,093) (104,943) (108,795) Total intangibles (1,414,513) (1,418,041) (1,421,892) (1,425,742) (1,429,594) Tangible assets $ 25,378,478 $ 25,458,008 $ 25,847,512 $ 25,943,330 $ 25,942,581 Ratio of common equity to assets 13.18 % 13.13 % 12.94 % 12.64 % 12.56 % Ratio of tangible common equity to tangible assets 8.34 % 8.29 % 8.15 % 7.84 % 7.75 % Calculation of Tangible Book Value per Share Total common stockholders' equity $ 3,531,485 $ 3,528,872 $ 3,528,833 $ 3,458,869 $ 3,439,126 Intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799) Other intangible assets (93,714) (97,242) (101,093) (104,943) (108,795) Total intangibles (1,414,513) (1,418,041) (1,421,892) (1,425,742) (1,429,594) Tangible common stockholders' equity $ 2,116,972 $ 2,110,831 $ 2,106,941 $ 2,033,127 $ 2,009,532 Shares of common stock outstanding 125,926,822 125,651,540 125,554,598 125,487,520 125,419,618 Book value per common share $ 28.04 $ 28.08 $ 28.11 $ 27.56 $ 27.42 Tangible book value per common share $ 16.81 $ 16.80 $ 16.78 $ 16.20 $ 16.02 Calculation of Coverage Ratio of Uninsured, Non-Collateralized Deposits Uninsured deposits at Simmons Bank $ 8,614,833 $ 8,467,291 $ 8,355,496 $ 8,186,903 $ 8,413,514 Less: Collateralized deposits (excluding portion that is FDIC insured) 3,005,328 2,790,339 2,710,167 2,835,424 2,995,241 Less: Intercompany eliminations 1,073,500 1,045,734 986,626 943,979 775,461 Total uninsured, non-collateralized deposits $ 4,536,005 $ 4,631,218 $ 4,658,703 $ 4,407,500 $ 4,642,812 FHLB borrowing availability $ 4,432,000 $ 4,716,000 $ 4,955,000 $ 4,910,000 $ 5,326,000 Unpledged securities 4,197,000 4,103,000 4,110,000 4,145,000 4,122,000 Fed funds lines, Fed discount window and Bank Term Funding Program (1) 1,780,000 2,081,000 2,109,000 2,065,000 2,009,000 Additional liquidity sources $ 10,409,000 $ 10,900,000 $ 11,174,000 $ 11,120,000 $ 11,457,000 Uninsured, non-collateralized deposit coverage ratio 2.3 2.4 2.4 2.5 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 $ 9,648 $ 11,536 $ 9,314 $ 8,077 $ 8,070 Less: Net charge offs from run-off portfolio (1) 1,900 2,500 3,500 6,700 4,500 Net charge offs excluding run-off portfolio $ 7,748 $ 9,036 $ 5,814 $ 1,377 $ 3,570 Average total loans $ 16,920,050 $ 17,212,034 $ 17,208,162 $ 17,101,799 $ 16,900,496 Annualized net charge offs to average loans (NCO ratio) 0.23 % 0.27 % 0.22 % 0.19 % 0.19 % NCO ratio, excluding net charge offs associated with run-off portfolio (annualized) 0.19 % 0.21 % 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 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ in thousands) Calculation of Adjusted Return on Average Assets Net income $ 32,388 $ 48,319 $ 24,740 $ 40,763 $ 38,871 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - - - 283 1,549 Early retirement program - 200 (1) 118 219 Termination of vendor and software services - - (13) 615 - Loss (gain) on sale of securities - - 28,393 - - Branch right sizing (net) 994 1,581 410 519 236 Tax effect of certain items (2) (260) (466) (7,524) (401) (524) Adjusted earnings (non-GAAP) $ 33,122 $ 49,634 $ 46,005 $ 41,897 $ 40,351 Average total assets $ 26,678,628 $ 27,078,943 $ 27,216,440 $ 27,305,277 $ 27,259,399 Return on average assets 0.49 % 0.71 % 0.36 % 0.60 % 0.57 % Adjusted return on average assets (non-GAAP) 0.50 % 0.73 % 0.67 % 0.62 % 0.60 % Calculation of Return on Tangible Common Equity Net income available to common stockholders $ 32,388 $ 48,319 $ 24,740 $ 40,763 $ 38,871 Amortization of intangibles, net of taxes 2,605 2,843 2,845 2,845 2,844 Total income available to common stockholders $ 34,993 $ 51,162 $ 27,585 $ 43,608 $ 41,715 Certain items (non-GAAP) FDIC Deposit Insurance special assessment $ - $ - $ - $ 283 $ 1,549 Early retirement program - 200 (1) 118 219 Termination of vendor and software services - - (13) 615 - Loss (gain) on sale of securities - - 28,393 - - Branch right sizing (net) 994 1,581 410 519 236 Tax effect of certain items (2) (260) (466) (7,524) (401) (524) Adjusted earnings (non-GAAP) 33,122 49,634 46,005 41,897 40,351 Amortization of intangibles, net of taxes 2,605 2,843 2,845 2,845 2,844 Total adjusted earnings available to common stockholders (non-GAAP) $ 35,727 $ 52,477 $ 48,850 $ 44,742 $ 43,195 Average common stockholders' equity $ 3,564,469 $ 3,543,146 $ 3,505,141 $ 3,451,155 $ 3,447,021 Average intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799) Other intangibles (95,787) (99,405) (103,438) (107,173) (111,023) Total average intangibles (1,416,586) (1,420,204) (1,424,237) (1,427,972) (1,431,822) Average tangible common stockholders' equity (non-GAAP) $ 2,147,883 $ 2,122,942 $ 2,080,904 $ 2,023,183 $ 2,015,199 Return on average common equity 3.69 % 5.43 % 2.81 % 4.75 % 4.54 % Return on tangible common equity 6.61 % 9.59 % 5.27 % 8.67 % 8.33 % Adjusted return on average common equity (non-GAAP) 3.77 % 5.57 % 5.22 % 4.88 % 4.71 % Adjusted return on tangible common equity (non-GAAP) 6.75 % 9.83 % 9.34 % 8.89 % 8.62 % Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1) Noninterest expense (efficiency ratio numerator) $ 144,580 $ 141,117 $ 137,193 $ 139,354 $ 139,879 Certain noninterest expense items (non-GAAP) Early retirement program - (200) 1 (118) (219) FDIC Deposit Insurance special assessment - - - (283) (1,549) Termination of vendor and software services - - 13 (615) - Branch right sizing expense (994) (1,581) (410) (519) (236) Other real estate and foreclosure expense adjustment (198) (317) (87) (117) (179) Amortization of intangibles adjustment (3,527) (3,850) (3,851) (3,852) (3,850) Adjusted efficiency ratio numerator $ 139,861 $ 135,169 $ 132,859 $ 133,850 $ 133,846 Net interest income $ 163,422 $ 164,942 $ 157,712 $ 153,905 $ 151,906 Noninterest income 46,155 43,558 17,130 43,299 43,184 Fully tax-equivalent adjustment (effective tax rate of 26.135%) 6,414 6,424 6,398 6,576 6,422 Efficiency ratio denominator 215,991 214,924 181,240 203,780 201,512 Certain noninterest income items (non-GAAP) (Gain) loss on sale of securities - - 28,393 - - Adjusted efficiency ratio denominator $ 215,991 $ 214,924 $ 209,633 $ 203,780 $ 201,512 Efficiency ratio (1) 66.94 % 65.66 % 75.70 % 68.38 % 69.41 % Adjusted efficiency ratio (non-GAAP) (1) 64.75 % 62.89 % 63.38 % 65.68 % 66.42 % (1) Efficiency ratio is noninterest expense as a percent of net interest income (fully taxable equivalent) and noninterest revenues. Adjusted efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles and certain adjusting items as a percent of net interest income (fully taxable equivalent) and noninterest revenues, excluding gains and losses from securities transactions and certain adjusting items, and is a non-GAAP measurement. (2) Effective tax rate of 26.135%. Simmons First National Corporation SFNC Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date (continued) For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ in thousands) Calculation of Total Revenue and Adjusted Total Revenue Net interest income $ 163,422 $ 164,942 $ 157,712 $ 153,905 $ 151,906 Noninterest income 46,155 43,558 17,130 43,299 43,184 Total revenue 209,577 208,500 174,842 197,204 195,090 Certain items, pre-tax (non-GAAP) Less: Gain (loss) on sale of securities - - (28,393) - - Adjusted total revenue $ 209,577 $ 208,500 $ 203,235 $ 197,204 $ 195,090 Calculation of Pre-Provision Net Revenue (PPNR) Net interest income $ 163,422 $ 164,942 $ 157,712 $ 153,905 $ 151,906 Noninterest income 46,155 43,558 17,130 43,299 43,184 Total revenue 209,577 208,500 174,842 197,204 195,090 Less: Noninterest expense 144,580 141,117 137,193 139,354 139,879 Pre-Provision Net Revenue (PPNR) $ 64,997 $ 67,383 $ 37,649 $ 57,850 $ 55,211 Calculation of Adjusted Pre-Provision Net Revenue Pre-Provision Net Revenue (PPNR) $ 64,997 $ 67,383 $ 37,649 $ 57,850 $ 55,211 Certain items, pre-tax (non-GAAP) Plus: Loss (gain) on sale of securities - - 28,393 - - Plus: FDIC Deposit Insurance special assessment - - - 283 1,549 Plus: Early retirement program costs - 200 (1) 118 219 Plus: Termination of vendor and software services - - (13) 615 - Plus: Branch right sizing costs (net) 994 1,581 410 519 236 Adjusted Pre-Provision Net Revenue $ 65,991 $ 69,164 $ 66,438 $ 59,385 $ 57,215 Simmons First National Corporation SFNC Reconciliation Of Non-GAAP Financial Measures - Year-to-Date For the Quarters Ended Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 (Unaudited) 2025 2024 2024 2024 2024 ($ in thousands) Calculation of Adjusted Return on Average Assets Net income $ 32,388 $ 152,693 $ 104,374 $ 79,634 $ 38,871 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - 1,832 1,832 1,832 1,549 Early retirement program - 536 336 337 219 Termination of vendor and software services - 602 602 615 - Loss (gain) on sale of securities - 28,393 28,393 - - Branch right sizing (net) 994 2,746 1,165 755 236 Tax effect of certain items (2) (260) (8,915) (8,449) (925) (524) Adjusted earnings (non-GAAP) $ 33,122 $ 177,887 $ 128,253 $ 82,248 $ 40,351 Average total assets $ 26,678,628 $ 27,214,647 $ 27,260,212 $ 27,282,338 $ 27,259,399 Return on average assets 0.49 % 0.56 % 0.51 % 0.59 % 0.57 % Adjusted return on average assets (non-GAAP) 0.50 % 0.65 % 0.63 % 0.61 % 0.60 % Calculation of Return on Tangible Common Equity Net income available to common stockholders $ 32,388 $ 152,693 $ 104,374 $ 79,634 $ 38,871 Amortization of intangibles, net of taxes 2,605 11,377 8,534 5,689 2,844 Total income available to common stockholders $ 34,993 $ 164,070 $ 112,908 $ 85,323 $ 41,715 Certain items (non-GAAP) FDIC Deposit Insurance special assessment $ - $ 1,832 $ 1,832 $ 1,832 $ 1,549 Early retirement program - 536 336 337 219 Termination of vendor and software services - 602 602 615 - Loss (gain) on sale of securities - 28,393 28,393 - - Branch right sizing (net) 994 2,746 1,165 755 236 Tax effect of certain items (2) (260) (8,915) (8,449) (925) (524) Adjusted earnings (non-GAAP) 33,122 177,887 128,253 82,248 40,351 Amortization of intangibles, net of taxes 2,605 11,377 8,534 5,689 2,844 Total adjusted earnings available to common stockholders (non-GAAP) $ 35,727 $ 189,264 $ 136,787 $ 87,937 $ 43,195 Average common stockholders' equity $ 3,564,469 $ 3,486,822 $ 3,467,908 $ 3,449,089 $ 3,447,021 Average intangible assets: Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799) Other intangibles (95,787) (105,239) (107,197) (109,098) (111,023) Total average intangibles (1,416,586) (1,426,038) (1,427,996) (1,429,897) (1,431,822) Average tangible common stockholders' equity (non-GAAP) $ 2,147,883 $ 2,060,784 $ 2,039,912 $ 2,019,192 $ 2,015,199 Return on average common equity 3.69 % 4.38 % 4.02 % 4.64 % 4.54 % Return on tangible common equity 6.61 % 7.96 % 7.39 % 8.50 % 8.33 % Adjusted return on average common equity (non-GAAP) 3.77 % 5.10 % 4.94 % 4.80 % 4.71 % Adjusted return on tangible common equity (non-GAAP) 6.75 % 9.18 % 8.96 % 8.76 % 8.62 % Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1) Noninterest expense (efficiency ratio numerator) $ 144,580 $ 557,543 $ 416,426 $ 279,233 $ 139,879 Certain noninterest expense items (non-GAAP) Early retirement program - (536) (336) (337) (219) FDIC Deposit Insurance special assessment - (1,832) (1,832) (1,832) (1,549) Termination of vendor and software services - (602) (602) (615) - Branch right sizing expense (994) (2,746) (1,165) (755) (236) Other real estate and foreclosure expense adjustment (198) (700) (383) (296) (179) Amortization of intangibles adjustment (3,527) (15,403) (11,553) (7,702) (3,850) Adjusted efficiency ratio numerator $ 139,861 $ 535,724 $ 400,555 $ 267,696 $ 133,846 Net interest income $ 163,422 $ 628,465 $ 463,523 $ 305,811 $ 151,906 Noninterest income 46,155 147,171 103,613 86,483 43,184 Fully tax-equivalent adjustment (effective tax rate of 26.135%) 6,414 25,820 19,396 12,998 6,422 Efficiency ratio denominator 215,991 801,456 586,532 405,292 201,512 Certain noninterest income items (non-GAAP) (Gain) loss on sale of securities - 28,393 28,393 - - Adjusted efficiency ratio denominator $ 215,991 $ 829,849 $ 614,925 $ 405,292 $ 201,512 Efficiency ratio (1) 66.94 % 69.57 % 71.00 % 68.90 % 69.41 % Adjusted efficiency ratio (non-GAAP) (1) 64.75 % 64.56 % 65.14 % 66.05 % 66.42 % (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%. SOURCE Simmons First National Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Simmons First National Corporation Reports First Quarter 2025 Results

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