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Simmons First National Corporation Reports Fourth Quarter 2024 Results

1. Simmons reported net income of $48.3 million in Q4 2024. 2. Adjusted diluted EPS rose to $0.39, outperforming earlier quarters. 3. Total deposits decreased slightly to $21.9 billion, affecting liquidity. 4. Credit losses rose to $13.3 million, highlighting risk concerns. 5. Overall profitability trends remain positive despite market challenges.

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$22.3601/22 10:57 PM EDTLatest Updated
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Why Bullish?

Strong earnings per share growth indicates solid financial performance, potentially boosting SFNC's stock.

How important is it?

Earnings reports typically influence stock prices significantly, making this news impactful for SFNC.

Why Short Term?

Immediate investor reactions are likely to be favorable, but long-term sustainability remains to be seen.

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, /PRNewswire/ -- George Makris, Jr., Simmons' Chairman and Chief Executive Officer, commented on the quarterly results: Simmons' fourth quarter results were encouraging as we head into 2025.  Profitability trends improved and should be a good foundation from which to build. While we are cautiously optimistic as we enter the new year, we are also watching several factors that could impact us in 2025: a new administration and how its policies affect domestic growth; inflation and employment levels; the trajectory of short-term interest rates; regulatory changes and their effect on our operating costs and growth; insurance availability and costs for both commercial enterprises and consumers; and population migration's effects on housing trends geographically. I also want to recognize and thank the following leaders who retired from Simmons at the end of 2024: Bob Fehlman, Steve Massanelli, Steve Wade, Johnny McCaleb, and Pat Neely. These leaders have played a significant role in the growth of Simmons, and they will be missed. At the same time, I am excited about the next generation of leadership and the opportunities we see ahead.  Financial Highlights    4Q24    3Q24    4Q23 4Q24 Highlights Balance Sheet (in millions) Comparisons reflect 4Q24 vs 3Q24,      except as otherwise noted •  Net income of $48.3 million   and diluted EPS of $0.38 •  Adjusted earnings1 of $49.6   million and adjusted diluted   EPS1 of $0.39 •  Total revenue of $208.5 million   and PPNR1 of $67.4 million •  Adjusted total revenue1 of   $208.5 million and adjusted   PPNR1 of $69.2 million •  Net interest margin of 2.87%,   up 13 bps •  Cost of deposits of 2.60%,   down 19 bps •  Provision for credit losses on   loans exceeded net charge-offs   in the quarter by $1.8 million •  NCO ratio of 27 bps in 4Q24;   6 bps of NCO ratio associated   with run-off portfolio  •  ACL ratio ended the quarter at   1.38%, up 3 bps •  EA ratio of 13.13%; TCE ratio1   up 14 bps to 8.29% •  Book value per share up 3% and   tangible book value per share1   up 6% year-over-year Total loans $17,006 $17,336 $16,846 Total investment securities 6,166 6,350 6,878 Total deposits 21,886 21,935 22,245 Total assets 26,876 27,269 27,346 Total shareholders' equity 3,529 3,529 3,426 Performance Measures (in millions) Total revenue $208.5 $174.8 $177.6 Adjusted total revenue1 208.5 203.2 197.8 Pre-provision net revenue1 (PPNR) 67.4 37.6 29.5 Adjusted pre-provision net revenue1 69.2 66.4 65.1 Provision for credit losses 13.3 12.1 10.0 Per share Data Diluted earnings $  0.38 $  0.20 $  0.19 Adjusted diluted earnings1 0.39 0.37 0.40 Book value 28.08 28.11 27.37 Tangible book value1 16.80 16.78 15.92 Asset Quality Net charge-off ratio (NCO ratio) 0.27 % 0.22 % 0.11 % Nonperforming loan ratio 0.65 0.59 0.50 Nonperforming assets to total assets 0.45 0.38 0.33 Allowance for credit losses to loans (ACL) 1.38 1.35 1.34 Nonperforming loan coverage ratio 212 229 267 Capital Ratios Equity to assets (EA ratio) 13.13 % 12.94 % 12.53 % Tangible common equity (TCE) ratio1 8.29 8.15 7.69 Common equity tier 1 (CET1) ratio 12.38 12.06 12.11 Total risk-based capital ratio 14.61 14.25 14.39 other data Net interest margin (FTE) 2.87 % 2.74 % 2.68 % Loan yield (FTE) 6.32 6.44 6.20 Cost of deposits 2.60 2.79 2.58 Loan to deposit ratio 77.70 79.03 75.73 Borrowed funds to total liabilities 4.92 6.16 5.88 Simmons First National Corporation (NASDAQ: SFNC) (Simmons or Company) today reported net income of $48.3 million for the fourth quarter of 2024, compared to $24.7 million in the third quarter of 2024 and $23.9 million in the fourth quarter of 2023. Diluted earnings per share were $0.38 for the fourth quarter of 2024, compared to $0.20 in the third quarter of 2024 and $0.19 in the fourth quarter of 2023. Adjusted earnings1 for the fourth quarter of 2024 were $49.6 million, compared to $46.0 million in the third quarter of 2024 and $50.2 million in the fourth quarter of 2023. Adjusted diluted earnings per share1 for the fourth quarter of 2024 were $0.39, compared to $0.37 in the third quarter of 2024 and $0.40 in the fourth quarter of 2023. The table below summarizes the impact of certain items, consisting primarily of branch right sizing, early retirement, loss on sale of available-for-sale (AFS) investment securities 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  4Q24  3Q24  4Q23 Net income $ 48.3 $ 24.7 $ 23.9 Branch right sizing, net 1.6 0.4 3.9 Early retirement program 0.2 - 1.0 Loss on sale of AFS investment securities - 28.4 20.2 FDIC special assessment - - 10.5    Total pre-tax impact 1.8 28.8 35.6 Tax effect2 (0.5) (7.5) (9.3)    Total impact on earnings 1.3 21.3 26.3 Adjusted earnings1 $ 49.6 $ 46.0 $ 50.2 Diluted EPS $ 0.38 $ 0.20 $ 0.19 Branch right sizing, net 0.01 - 0.03 Early retirement program - - 0.01 Loss on sale of AFS investment securities - 0.23 0.16 FDIC special assessment - - 0.08    Total pre-tax impact 0.01 0.23 0.28 Tax effect2 - (0.6) (0.07)    Total impact on earnings 0.01 0.17 0.21 Adjusted Diluted EPS1 $ 0.39 $ 0.37 $ 0.40 Net Interest IncomeNet interest income for the fourth quarter of 2024 totaled $164.9 million, compared to $157.7 million in the third quarter of 2024 and $155.6 million in the fourth quarter of 2023. Interest income totaled $326.0 million for the fourth quarter of 2024, compared to $334.3 million in the third quarter of 2024 and $323.5 million in the fourth quarter of 2023. The decrease in interest income on a linked quarter basis was primarily driven by a decline in the level of interest rates resulting from interest rate cuts at the end of the third quarter and during the fourth quarter of 2024. Interest expense totaled $161.0 million for the fourth quarter of 2024, compared to $176.6 million in the third quarter of 2024 and $167.9 million in the fourth quarter of 2023. The decrease in interest expense was driven by lower interest rates, coupled with management's ability to proactively manage deposit costs and reduced use of wholesale funding sources. Included in net interest income is accretion recognized on loans, which totaled $1.9 million in the fourth quarter of 2024, $1.5 million in the third quarter of 2024 and $1.8 million in the fourth quarter of 2023.  The yield on loans on a fully taxable equivalent (FTE) basis for the fourth quarter of 2024 was 6.32 percent, down 12 basis points from 6.44 percent for the third quarter of 2024 and up 12 basis points from 6.20 percent in the fourth quarter of 2023. Cost of deposits for the fourth quarter of 2024 was 2.60 percent, down 19 basis points from 2.79 percent for the third quarter of 2024 and up 2 basis points from 2.58 percent in the fourth quarter of 2023. The net interest margin on an FTE basis for the fourth quarter of 2024 was 2.87 percent, up 13 basis points from 2.74 percent for the third quarter of 2024 and up 19 basis points from 2.68 percent in the fourth quarter of 2023. The increase in net interest margin on a linked quarter basis was primarily due to lower deposits costs, as well as the reduced use of and rate paid on other borrowings. Select Yield/Rates  4Q24  3Q24  2Q24  1Q24  4Q23 Loan yield (FTE)2 6.32 % 6.44 % 6.39 % 6.24 % 6.20 % Investment securities yield (FTE)2 3.54 3.63 3.68 3.76 3.67 Cost of interest bearing deposits 3.28 3.52 3.53 3.48 3.31 Cost of deposits 2.60 2.79 2.79 2.75 2.58 Cost of borrowed funds 5.32 5.79 5.84 5.85 5.79 Net interest spread (FTE)2 2.15 1.95 1.92 1.89 1.93 Net interest margin (FTE)2 2.87 2.74 2.69 2.66 2.68 Noninterest IncomeNoninterest income for the fourth quarter of 2024 was $43.6 million, compared to $17.1 million in the third quarter of 2024 and $22.0 million in the fourth quarter of 2023. Included in the third quarter of 2024 and fourth quarter of 2023 was a $28.4 million and $20.2 million pre-tax loss on the sale of AFS investment securities, respectively. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest income1 was $45.5 million for the third quarter of 2024 and $42.2 million in the fourth quarter of 2023. The decrease in adjusted noninterest income on a linked quarter basis was primarily due to a higher level of other noninterest income resulting from the gain on sale of other real estate recorded in the third quarter of 2024, offset in part by increases in most of our major fee-based businesses.   Noninterest Income $ in millions  4Q24  3Q24        2Q24 1Q24        4Q23  Service charges on deposit accounts $ 13.0 $ 12.7 $ 12.3 $ 12.0 $ 12.8 Wealth management fees 8.8 8.2 8.3 7.5 7.7 Debit and credit card fees 8.3 8.1 8.2 8.2 7.8 Mortgage lending income 1.8 2.0 2.0 2.3 1.6 Other service charges and fees 2.3 2.4 2.4 2.2 2.3 Bank owned life insurance 3.8 3.8 3.9 3.8 3.1 Gain (loss) on sale of securities - (28.4) - - (20.2) Other income 5.6 8.3 6.4 7.2 6.9    Total noninterest income $ 43.6 $ 17.1 $ 43.3 $ 43.2 $ 22.0 Adjusted noninterest income1 $ 43.6 $ 45.5 $43.3 $43.2 $ 42.2 Noninterest ExpenseNoninterest expense for the fourth quarter of 2024 was $141.1 million, compared to $137.2 million in the third quarter of 2024 and $148.1 million in the fourth quarter of 2023. Included in noninterest expense are certain items consisting of branch right sizing, early retirement and an FDIC special assessment. Collectively, these items totaled $1.8 million in the fourth quarter of 2024, $0.4 million in the third quarter of 2024 and $15.4 million in the fourth quarter of 2023. Excluding these items (which are described in the "Reconciliation of Non-GAAP Financial Measures" tables below), adjusted noninterest expense1 was $139.3 million for the fourth quarter of 2024, $136.8 million in the third quarter of 2024 and $132.7 million in the fourth quarter of 2023. The increase in adjusted noninterest expense on a linked quarter basis was primarily due to seasonality in salaries and employee benefits. Noninterest Expense $ in millions   4Q24  3Q24  2Q24  1Q24       4Q23 Salaries and employee benefits $  71.6 $  69.2 $  70.7 $  72.7 $  67.0 Occupancy expense, net 11.9 12.2 11.9 12.3 11.7 Furniture and equipment 5.7 5.6 5.6 5.1 5.4 Deposit insurance 5.6 5.6 5.4 5.5 4.7 Other real estate and foreclosure expense 0.3 0.1 0.1 0.2 0.2 FDIC special assessment - - 0.3 1.6 10.5 Other operating expenses 46.1 44.5 45.4 42.5 48.6    Total noninterest expense $141.1 $137.2 $139.4 $139.9 $148.1 Adjusted salaries and employee benefits1 $  71.4 $  69.2 $ 70.6 $  72.4 $  66.0 Adjusted other operating expenses1 44.7 44.4 44.3 42.4 44.9 Adjusted noninterest expense1 139.3 136.8 137.8 137.9 132.7 Efficiency ratio 65.66 % 75.70 % 68.38 % 69.41 % 80.46 % Adjusted efficiency ratio1 62.89 63.38 65.68 66.42 62.91 Full-time equivalent employees 2,946 2,972 2,961 2,989 3,007 Number of financial centers 222 234 234 233 234 Loans and Unfunded Loan CommitmentsTotal loans at the end of the fourth quarter of 2024 were $17.0 billion, compared to $17.3 billion at the end of the third quarter of 2024 and $16.8 billion at the end of the fourth quarter of 2023. The decrease in total loans on a linked quarter basis was primarily due to normal seasonality in the company's agricultural and mortgage warehouse loan portfolios, as well as further declines in a run-off portfolio consisting of small ticket equipment finance and acquired asset based lending portfolios (run-off portfolio). Unfunded loan commitments at the end of the fourth quarter of 2024 were $3.7 billion, up slightly from third quarter 2024 levels. The commercial loan pipeline ended the fourth quarter of 2024 at $1.3 billion and ready to close loans totaled $552 million, marking the second consecutive quarterly increase in both metrics. Loans and Unfunded Loan Commitments  $ in millions 4Q24       3Q24       2Q24       1Q24       4Q23 Total loans $17,006 $17,336 $17,192 $17,002 $16,846 Unfunded loan commitments 3,739 3,681 3,746 3,875 3,880 Deposits and Other BorrowingsTotal deposits at the end of the fourth quarter of 2024 were $21.9 billion, down slightly from third quarter 2024 levels. The decrease in deposits on a linked quarter basis was primarily due to a decline in time deposits and brokered deposits, offset in part by increases in interest bearing transaction accounts (checking, money market and savings accounts) and public fund deposits. Other borrowings totaled $1.1 billion at the end of the fourth quarter of 2024, compared to $1.5 billion at the end of the third quarter of 2024 and $1.4 billion at the end of the fourth quarter of 2023. The decrease in other borrowing both on a linked quarter and year-over-year basis was primarily due to lower levels of FHLB advances. Deposits $ in millions  4Q24  3Q24  2Q24  1Q24  4Q23 Noninterest bearing deposits $  4,461 $  4,522 $  4,624 $  4,698 $  4,801 Interest bearing transaction accounts 10,331 10,038 10,092 10,316 10,277 Time deposits 3,796 4,014 4,185 4,314 4,266 Brokered deposits 3,298 3,361 2,940 3,025 2,901    Total deposits $21,886 $21,935 $21,841 $22,353 $22,245 Noninterest bearing deposits to total deposits 20 % 21 % 21 % 21 % 22 % Total loans to total deposits 78 79 79 76 76 Asset QualityProvision for credit losses totaled $13.3 million for the fourth quarter of 2024, compared to $12.1 million in the third quarter of 2024 and $10.0 million in the fourth quarter of 2023. Provision for credit losses on loans exceeded net charge-offs by $1.8 million during the fourth quarter of 2024. The allowance for credit losses on loans at the end of the fourth quarter of 2024 was $235.0 million, compared to $233.2 million at the end of the third quarter of 2024 and $225.2 million at the end of the fourth quarter of 2023. The increase in the allowance for credit losses on loans on a linked quarter basis and year-over-year basis reflected continued normalization of the credit environment, macroeconomic conditions and activity in the loan portfolio. The allowance for credit losses on loans was 1.38 percent at the end of the fourth quarter of 2024, compared to 1.35 percent at the end of the third quarter of 2024 and 1.34 percent at the end of the fourth quarter of 2023. Net charge-offs as a percentage of average loans for the fourth quarter of 2024 were 27 basis points, compared to 22 basis points in the third quarter of 2024 and 11 basis points in the fourth quarter of 2023. Net charge-offs in the fourth quarter of 2024 included $2.5 million of charge-offs associated with the run-off portfolio. Net charge-offs from the run-off portfolio accounted for 6 basis points of total net charge-offs during the fourth quarter and 9 basis points of total net charge-offs during the third quarter of 2024. Total nonperforming loans at the end of the fourth quarter of 2024 were $110.7 million, compared to $101.7 million at the end of the third quarter of 2024 and $84.5 million at the end of the fourth quarter of 2023. The increase in nonperforming loans on a linked quarter basis was primarily due to increases from the real estate construction and real estate 1-4 family loan portfolios. The nonperforming loan coverage ratio ended the fourth quarter of 2024 at 212 percent, compared to 229 percent at the end of the third quarter of 2024 and 267 percent at the end of the fourth quarter of 2023. Total nonperforming assets as a percentage of total assets were 45 basis points at the end of the fourth quarter of 2024, compared to 38 basis points at the end of the third quarter of 2024 and 33 basis points at the end of the fourth quarter of 2023. The increase in nonperforming assets as a percentage of total assets on a linked quarter basis was primarily due to an increase in nonperforming loans and an increase in other nonperforming assets resulting from the addition of two foreclosed properties. Asset Quality $ in millions   4Q24   3Q24      2Q24 1Q24 4Q23 Allowance for credit losses on loans to total loans 1.38 % 1.35 % 1.34 % 1.34 % 1.34 % Allowance for credit losses on loans to nonperforming loans 212 229 223 212 267 Nonperforming loans to total loans 0.65 0.59 0.60 0.63 0.50 Net charge-off ratio (annualized) 0.27 0.22 0.19 0.19 0.11 Net charge-off ratio YTD (annualized) 0.22 0.20 0.19 0.19 0.12 Total nonperforming loans $110.7 $101.7 $103.4 $107.3 $84.5 Total other nonperforming assets 10.5 2.6 3.4 5.0 5.8    Total nonperforming assets $121.2 $104.3 $106.8 $112.3 $90.3 Reserve for unfunded commitments $25.6 $25.6 $25.6 $25.6 $25.6 CapitalTotal stockholders' equity at the end of the fourth quarter of 2024 was $3.5 billion, up slightly from the end of the third quarter 2024 and up $102.4 million from $3.4 billion at the end of the fourth quarter of 2023. The increase on a year-over-year basis was primarily due to an increase of $47.3 million in retained earnings, coupled with a $43.5 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 fourth quarter of 2024 was $28.08, compared to $28.11 at the end of the third quarter of 2024 and $27.37 at the end of the fourth quarter of 2023. Tangible book value per share1 at the end of the fourth quarter of 2024 was $16.80, compared to $16.78 at the end of the third quarter of 2024 and $15.92 at the end of the fourth quarter of 2023. Total stockholders' equity as a percentage of total assets at the end of the fourth quarter of 2024 was 13.1 percent, up from 12.9 percent at the end of the third quarter of 2024 and up from 12.5 percent at the end the fourth quarter of 2023. Tangible common equity as a percentage of tangible assets1 at the end of the fourth quarter of 2024 was 8.3 percent, compared to 8.2 percent at the end of the third quarter of 2024 and 7.7 percent at the end of the fourth quarter of 2023. Each of the regulatory capital ratios for Simmons and its lead subsidiary, Simmons Bank, continue to significantly exceed "well-capitalized" regulatory guidelines. Select Capital Ratios 4Q24 3Q24 2Q24 1Q24 4Q23 Stockholders' equity to total assets 13.1 % 12.9 % 12.6 % 12.6 % 12.5 % Tangible common equity to tangible assets1 8.3 8.2 7.8 7.8 7.7 Common equity tier 1 (CET1) ratio 12.4 12.1 12.0 12.0 12.1 Tier 1 leverage ratio 9.7 9.6 9.5 9.4 9.4 Tier 1 risk-based capital ratio 12.4 12.1 12.0 12.0 12.1 Total risk-based capital ratio 14.6 14.3 14.2 14.4 14.4 Share Repurchase ProgramDuring the fourth quarter of 2024, Simmons did not repurchase shares under its stock repurchase program that was authorized in January 2024 (2024 Program), which replaced its former repurchase program that was authorized in January 2022. Remaining authorization under the 2024 Program as of December 31, 2024, was approximately $175 million. The timing, pricing and amount of any repurchases under the 2024 Program will be determined by Simmons' management at its discretion based on a variety of factors including, but not limited to, market conditions, trading volume and market price of Simmons' common stock, Simmons' capital needs, Simmons' working capital and investment requirements, other corporate considerations, economic conditions, and legal requirements.  The 2024 Program does not obligate Simmons to repurchase any common stock and may be modified, discontinued or suspended at any time without prior notice. (1) Non-GAAP measurement. See "Non-GAAP Financial Measures" and "Reconciliation of Non-GAAP Financial Measures" below (2) FTE – fully taxable equivalent basis using an effective tax rate of 26.135% Conference CallManagement will conduct a live conference call to review this information beginning at 7:30 a.m. Central Time on Wednesday, January 22, 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 10195421. 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 115 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 gain/loss on the sale of AFS investment securities. The Company has updated its calculation of certain non-GAAP financial measures to exclude the impact of gains or losses on the sale of AFS investment securities and has presented past periods on a comparable basis. In addition, the Company also presents certain figures based on tangible common stockholders' equity, tangible assets and tangible book value, which exclude goodwill and other intangible assets. The Company further presents certain figures that are exclusive of the impact of deposits and/or loans acquired through acquisitions, mortgage warehouse loans, and/or energy loans, or gains and/or losses on the sale of securities. The Company's management believes that these non-GAAP financial measures are useful to investors because they, among other things, present the results of the Company's ongoing operations without the effect of mergers or other items not central to the Company's ongoing business, as well as normalize for tax effects and certain other effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company's ongoing businesses, and management uses these non-GAAP financial measures to assess the performance of the Company's ongoing businesses as related to prior financial periods. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release. Forward-Looking 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, and future economic conditions and interest rates. Any forward-looking statement speaks only as of the date of this press release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this press release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, changes in credit quality, changes in interest rates and related governmental policies, changes in loan demand, changes in deposit flows, changes in real estate values, changes in the assumptions used in making the forward-looking statements, changes in the securities markets generally or the price of Simmons' common stock specifically, changes in information technology affecting the financial industry, and changes in customer behaviors, including consumer spending, borrowing, and saving habits; general economic and market conditions; changes in governmental administrations; market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and between Israel and Hamas) or other major events, or the prospect of these events; the soundness of other financial institutions and any indirect exposure related to the closings of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships; increased inflation; the loss of key employees; increased competition in the markets in which the Company operates and from non-bank financial institutions; increased unemployment; labor shortages; claims, damages, and fines related to litigation or government actions; changes in accounting principles relating to loan loss recognition (current expected credit losses); the Company's ability to manage and successfully integrate its mergers and acquisitions and to fully realize cost savings and other benefits associated with acquisitions; increased delinquency and foreclosure rates on commercial real estate loans; cyber 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, 2023, and other reports that the Company has filed with or furnished to the U.S. Securities and Exchange Commission (the SEC), all of which are available from the SEC on its website, www.sec.gov. Simmons First National Corporation  SFNC  Consolidated End of Period Balance Sheets  For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023 ($ in thousands)  ASSETS  Cash and noninterest bearing balances due from banks $      429,705 $      398,321 $      320,021 $      380,324 $      345,258  Interest bearing balances due from banks and federal funds sold 257,672 205,081 254,312 222,979 268,834      Cash and cash equivalents 687,377 603,402 574,333 603,303 614,092  Interest bearing balances due from banks - time 100 100 100 100 100  Investment securities - held-to-maturity 3,636,636 3,658,700 3,685,450 3,707,258 3,726,288  Investment securities - available-for-sale 2,529,426 2,691,094 2,885,904 3,027,558 3,152,153  Mortgage loans held for sale 11,417 8,270 13,053 11,899 9,373  Loans:  Loans 17,005,937 17,336,040 17,192,437 17,001,760 16,845,670  Allowance for credit losses on loans (235,019) (233,223) (230,389) (227,367) (225,231)  Net loans 16,770,918 17,102,817 16,962,048 16,774,393 16,620,439  Premises and equipment 585,431 584,366 581,893 576,466 570,678  Foreclosed assets and other real estate owned 9,270 1,299 2,209 3,511 4,073  Interest receivable 123,243 125,700 126,625 122,781 122,430  Bank owned life insurance 531,805 508,781 505,023 503,348 500,559  Goodwill 1,320,799 1,320,799 1,320,799 1,320,799 1,320,799  Other intangible assets 97,242 101,093 104,943 108,795 112,645  Other assets 572,385 562,983 606,692 611,964 592,045  Total assets $ 26,876,049 $ 27,269,404 $ 27,369,072 $ 27,372,175 $ 27,345,674  LIABILITIES AND STOCKHOLDERS' EQUITY  Deposits:  Noninterest bearing transaction accounts $   4,460,517 $   4,521,715 $   4,624,186 $   4,697,539 $   4,800,880  Interest bearing transaction accounts and savings deposits 10,982,022 10,863,945 10,925,179 11,071,762 10,997,425  Time deposits 6,443,211 6,549,774 6,291,518 6,583,703 6,446,673          Total deposits 21,885,750 21,935,434 21,840,883 22,353,004 22,244,978  Federal funds purchased and securities sold  under agreements to repurchase 37,109 51,071 52,705 58,760 67,969  Other borrowings 745,372 1,045,878 1,346,378 871,874 972,366  Subordinated notes and debentures 366,293 366,255 366,217 366,179 366,141  Accrued interest and other liabilities 312,653 341,933 304,020 283,232 267,732  Total liabilities 23,347,177 23,740,571 23,910,203 23,933,049 23,919,186  Stockholders' equity:  Common stock 1,257 1,256 1,255 1,254 1,252  Surplus 2,511,590 2,508,438 2,506,469 2,503,673 2,499,930  Undivided profits 1,376,935 1,355,000 1,356,626 1,342,215 1,329,681  Accumulated other comprehensive (loss) income (360,910) (335,861) (405,481) (408,016) (404,375)  Total stockholders' equity 3,528,872 3,528,833 3,458,869 3,439,126 3,426,488  Total liabilities and stockholders' equity $ 26,876,049 $ 27,269,404 $ 27,369,072 $ 27,372,175 $ 27,345,674 Simmons First National Corporation  SFNC  Consolidated Statements of Income - Quarter-to-Date  For the Quarters Ended Dec 31 Sep 30 Jun 30 Mar 31 Dec 31  (Unaudited) 2024 2024 2024 2024 2023 ($ in thousands, except per share data)  INTEREST INCOME     Loans (including fees) $ 272,727 $ 277,939 $ 270,937 $ 261,490 $  261,505     Interest bearing balances due from banks and federal funds sold 2,913 2,921 2,964 3,010 3,115     Investment securities 50,162 53,220 55,050 58,001 58,755     Mortgage loans held for sale 180 209 194 148 143             TOTAL INTEREST INCOME 325,982 334,289 329,145 322,649 323,518  INTEREST EXPENSE     Time deposits 70,661 73,937 73,946 73,241 72,458     Other deposits 72,369 78,307 79,087 78,692 71,412     Federal funds purchased and securities       sold under agreements to repurchase 119 138 156 189 232     Other borrowings 11,386 17,067 15,025 11,649 16,607     Subordinated notes and debentures 6,505 7,128 7,026 6,972 7,181             TOTAL INTEREST EXPENSE 161,040 176,577 175,240 170,743 167,890  NET INTEREST INCOME 164,942 157,712 153,905 151,906 155,628  PROVISION FOR CREDIT LOSSES     Provision for credit losses on loans 13,332 12,148 11,099 10,206 11,225     Provision for credit losses on unfunded commitments - - - - -     Provision for credit losses on investment securities - AFS - - - - (1,196)     Provision for credit losses on investment securities - HTM - - - - -             TOTAL PROVISION FOR CREDIT LOSSES 13,332 12,148 11,099 10,206 10,029  NET INTEREST INCOME AFTER PROVISION     FOR CREDIT LOSSES 151,610 145,564 142,806 141,700 145,599  NONINTEREST INCOME     Service charges on deposit accounts 12,978 12,713 12,252 11,955 12,782     Debit and credit card fees 8,323 8,144 8,162 8,246 7,822     Wealth management fees 8,828 8,226 8,274 7,478 7,679     Mortgage lending income 1,828 1,956 1,973 2,320 1,603     Bank owned life insurance income 3,780 3,757 3,876 3,814 3,094     Other service charges and fees (includes insurance income) 2,256 2,381 2,352 2,199 2,346     Gain (loss) on sale of securities - (28,393) - - (20,218)     Other income 5,565 8,346 6,410 7,172 6,866             TOTAL NONINTEREST INCOME 43,558 17,130 43,299 43,184 21,974  NONINTEREST EXPENSE     Salaries and employee benefits 71,588 69,167 70,716 72,653 66,982     Occupancy expense, net 11,876 12,216 11,864 12,258 11,733     Furniture and equipment expense 5,671 5,612 5,623 5,141 5,445     Other real estate and foreclosure expense 317 87 117 179 189     Deposit insurance 5,550 5,571 5,682 7,135 15,220     Merger-related costs - - - - -     Other operating expenses 46,115 44,540 45,352 42,513 48,570             TOTAL NONINTEREST EXPENSE 141,117 137,193 139,354 139,879 148,139  NET INCOME BEFORE INCOME TAXES 54,051 25,501 46,751 45,005 19,434     Provision for income taxes 5,732 761 5,988 6,134 (4,473)  NET INCOME $   48,319 $   24,740 $   40,763 $   38,871 $    23,907  BASIC EARNINGS PER SHARE $       0.38 $       0.20 $       0.32 $       0.31 $        0.19  DILUTED EARNINGS PER SHARE $       0.38 $       0.20 $       0.32 $       0.31 $        0.19 Simmons First National Corporation  SFNC  Consolidated Risk-Based Capital  For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023 ($ in thousands) Tier 1 capital    Stockholders' equity $   3,528,872 $   3,528,833 $   3,458,869 $   3,439,126 $   3,426,488    CECL transition provision (1) 30,873 30,873 30,873 30,873 61,746    Disallowed intangible assets, net of deferred tax (1,385,128) (1,388,549) (1,391,969) (1,394,672) (1,398,810)    Unrealized loss (gain) on AFS securities 360,910 335,861 405,481 408,016 404,375       Total Tier 1 capital 2,535,527 2,507,018 2,503,254 2,483,343 2,493,799 Tier 2 capital    Subordinated notes and debentures 366,293 366,255 366,217 366,179 366,141    Subordinated debt phase out (132,000) (132,000) (132,000) (66,000) (66,000)    Qualifying allowance for loan losses and       reserve for unfunded commitments 222,313 220,517 217,684 214,660 170,977       Total Tier 2 capital 456,606 454,772 451,901 514,839 471,118       Total risk-based capital $   2,992,133 $   2,961,790 $   2,955,155 $   2,998,182 $   2,964,917 Risk weighted assets $ 20,473,960 $ 20,790,941 $ 20,856,194 $ 20,782,094 $ 20,599,238 Adjusted average assets for leverage ratio $ 26,037,459 $ 26,198,178 $ 26,371,545 $ 26,312,873 $ 26,552,988 Ratios at end of quarter    Equity to assets 13.13 % 12.94 % 12.64 % 12.56 % 12.53 %    Tangible common equity to tangible assets (2) 8.29 % 8.15 % 7.84 % 7.75 % 7.69 %    Common equity Tier 1 ratio (CET1) 12.38 % 12.06 % 12.00 % 11.95 % 12.11 %    Tier 1 leverage ratio 9.74 % 9.57 % 9.49 % 9.44 % 9.39 %    Tier 1 risk-based capital ratio 12.38 % 12.06 % 12.00 % 11.95 % 12.11 %    Total risk-based capital ratio 14.61 % 14.25 % 14.17 % 14.43 % 14.39 % (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  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023 ($ in thousands) Investment Securities - End of Period  Held-to-Maturity     U.S. Government agencies $    455,869 $    455,179 $    454,488 $    453,805 $    453,121     Mortgage-backed securities 1,070,032 1,093,070 1,119,741 1,142,352 1,161,694     State and political subdivisions 1,857,177 1,857,283 1,857,409 1,855,642 1,856,674     Other securities 253,558 253,168 253,812 255,459 254,799        Total held-to-maturity (net of credit losses) 3,636,636 3,658,700 3,685,450 3,707,258 3,726,288  Available-for-Sale     U.S. Treasury $           996 $        1,290 $        1,275 $        1,964 $        2,254     U.S. Government agencies 54,547 58,397 66,563 69,801 72,502     Mortgage-backed securities 1,392,759 1,510,402 1,730,842 1,845,364 1,940,307     State and political subdivisions 858,182 898,178 864,190 874,849 902,793     Other securities 222,942 222,827 223,034 235,580 234,297        Total available-for-sale (net of credit losses) 2,529,426 2,691,094 2,885,904 3,027,558 3,152,153        Total investment securities (net of credit losses) $ 6,166,062 $ 6,349,794 $ 6,571,354 $ 6,734,816 $ 6,878,441        Fair value - HTM investment securities $ 2,949,951 $ 3,109,610 $ 3,005,524 $ 3,049,281 $ 3,135,370 Simmons First National Corporation  SFNC  Consolidated Loans  For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023 ($ in thousands) Loan Portfolio - End of Period  Consumer:     Credit cards $      181,675 $      177,696 $      178,354 $      182,742 $      191,204     Other consumer 127,319 113,896 130,278 124,531 127,462  Total consumer 308,994 291,592 308,632 307,273 318,666  Real Estate:     Construction 2,789,249 2,796,378 3,056,703 3,331,739 3,144,220     Single-family residential 2,689,946 2,724,648 2,666,201 2,624,738 2,641,556     Other commercial real estate 7,912,336 7,992,437 7,760,266 7,508,049 7,552,410  Total real estate 13,391,531 13,513,463 13,483,170 13,464,526 13,338,186  Commercial:     Commercial 2,434,175 2,467,384 2,484,474 2,499,311 2,490,176     Agricultural 261,154 314,340 285,181 226,642 232,710  Total commercial 2,695,329 2,781,724 2,769,655 2,725,953 2,722,886  Other 610,083 749,261 630,980 504,008 465,932        Total loans $ 17,005,937 $ 17,336,040 $ 17,192,437 $ 17,001,760 $ 16,845,670 Simmons First National Corporation  SFNC  Consolidated Allowance and Asset Quality  For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023 ($ in thousands) Allowance for Credit Losses on Loans  Beginning balance $  233,223 $  230,389 $ 227,367 $   225,231 $  218,547  Loans charged off:     Credit cards 1,629 1,744 1,418 1,646 1,500     Other consumer 505 524 550 732 767     Real estate 3,810 159 123 2,857 1,023     Commercial 6,796 8,235 7,243 4,593 3,105        Total loans charged off 12,740 10,662 9,334 9,828 6,395  Recoveries of loans previously charged off:     Credit cards 391 231 221 248 242     Other consumer 279 275 509 333 518     Real estate 275 403 72 735 785     Commercial 259 439 455 442 309        Total recoveries 1,204 1,348 1,257 1,758 1,854     Net loans charged off 11,536 9,314 8,077 8,070 4,541  Provision for credit losses on loans 13,332 12,148 11,099 10,206 11,225  Balance, end of quarter $  235,019 $  233,223 $ 230,389 $   227,367 $  225,231 Nonperforming assets  Nonperforming loans:     Nonaccrual loans $  110,154 $  100,865 $ 102,891 $   105,788 $    83,325     Loans past due 90 days or more 603 830 558 1,527 1,147        Total nonperforming loans 110,757 101,695 103,449 107,315 84,472  Other nonperforming assets:    Foreclosed assets and other real estate owned 9,270 1,299 2,209 3,511 4,073     Other nonperforming assets 1,202 1,311 1,167 1,491 1,726        Total other nonperforming assets 10,472 2,610 3,376 5,002 5,799           Total nonperforming assets $  121,229 $  104,305 $ 106,825 $   112,317 $    90,271 Ratios  Allowance for credit losses on loans to total loans 1.38 % 1.35 % 1.34 % 1.34 % 1.34 %  Allowance for credit losses to nonperforming loans 212 % 229 % 223 % 212 % 267 %  Nonperforming loans to total loans 0.65 % 0.59 % 0.60 % 0.63 % 0.50 %  Nonperforming assets to total assets 0.45 % 0.38 % 0.39 % 0.41 % 0.33 %  Annualized net charge offs to average loans (QTD) 0.27 % 0.22 % 0.19 % 0.19 % 0.11 %  Annualized net charge offs to average loans (YTD) 0.22 % 0.20 % 0.19 % 0.19 % 0.12 %  Annualized net credit card charge offs to    average credit card loans (QTD) 2.63 % 3.23 % 2.50 % 2.88 % 2.49 % Simmons First National Corporation  SFNC  Consolidated - Average Balance Sheet and Net Interest Income Analysis  For the Quarters Ended  (Unaudited)  Three Months EndedDec 2024  Three Months EndedSep 2024  Three Months EndedDec 2023  ($ 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 $      238,731 $      2,913 4.85 % $      204,505 $      2,921 5.68 % $      230,464 $      3,115 5.36 %    Investment securities - taxable 3,633,138 34,459 3.77 % 3,826,934 37,473 3.90 % 4,410,681 42,895 3.86 %    Investment securities - non-taxable (FTE) 2,633,148 21,260 3.21 % 2,617,532 21,318 3.24 % 2,555,125 21,523 3.34 %    Mortgage loans held for sale 10,713 180 6.68 % 12,425 209 6.69 % 7,644 143 7.42 %    Loans - including fees (FTE) 17,212,034 273,594 6.32 % 17,208,162 278,766 6.44 % 16,793,211 262,353 6.20 %       Total interest earning assets (FTE) 23,727,764 332,406 5.57 % 23,869,558 340,687 5.68 % 23,997,125 330,029 5.46 %    Non-earning assets 3,351,179 3,346,882 3,373,686      Total assets $ 27,078,943 $ 27,216,440 $ 27,370,811 LIABILITIES AND STOCKHOLDERS' EQUITY Interest bearing liabilities:    Interest bearing transaction and      savings accounts $ 10,967,450 $    72,369 2.63 % $ 10,826,514 $    78,307 2.88 % $ 10,730,701 $    71,412 2.64 %    Time deposits 6,397,251 70,661 4.39 % 6,355,801 73,937 4.63 % 6,509,663 72,458 4.42 %       Total interest bearing deposits 17,364,701 143,030 3.28 % 17,182,315 152,244 3.52 % 17,240,364 143,870 3.31 %    Federal funds purchased and securities      sold under agreement to repurchase 47,314 119 1.00 % 51,830 138 1.06 % 65,871 232 1.40 %    Other borrowings 932,366 11,386 4.86 % 1,252,435 17,067 5.42 % 1,212,501 16,607 5.43 %    Subordinated notes and debentures 366,274 6,505 7.07 % 366,236 7,128 7.74 % 366,123 7,181 7.78 %       Total interest bearing liabilities 18,710,655 161,040 3.42 % 18,852,816 176,577 3.73 % 18,884,859 167,890 3.53 % Noninterest bearing liabilities:    Noninterest bearing deposits 4,491,361 4,535,105 4,864,274    Other liabilities 333,781 323,378 285,431       Total liabilities 23,535,797 23,711,299 24,034,564 Stockholders' equity 3,543,146 3,505,141 3,336,247       Total liabilities and stockholders' equity $ 27,078,943 $ 27,216,440 $ 27,370,811 Net interest income (FTE) $  171,366 $  164,110 $  162,139 Net interest spread (FTE) 2.15 % 1.95 % 1.93 % Net interest margin (FTE) 2.87 % 2.74 % 2.68 %  Simmons First National Corporation   SFNC   Consolidated - Selected Financial Data   For the Quarters Ended   Dec 31   Sep 30   Jun 30   Mar 31   Dec 31   (Unaudited)  2024 2024 2024 2024 2023 ($ in thousands, except share data) QUARTER-TO-DATE Financial Highlights - As Reported Net Income $        48,319 $        24,740 $        40,763 $        38,871 $        23,907 Diluted earnings per share 0.38 0.20 0.32 0.31 0.19 Return on average assets 0.71 % 0.36 % 0.60 % 0.57 % 0.35 % Return on average common equity 5.43 % 2.81 % 4.75 % 4.54 % 2.84 % Return on tangible common equity (non-GAAP) (1) 9.59 % 5.27 % 8.67 % 8.33 % 5.61 % Net interest margin (FTE) 2.87 % 2.74 % 2.69 % 2.66 % 2.68 % Efficiency ratio (2) 65.66 % 75.70 % 68.38 % 69.41 % 80.46 % FTE adjustment 6,424 6,398 6,576 6,422 6,511 Average diluted shares outstanding 126,232,084 125,999,269 125,758,166 125,661,950 125,609,265 Shares repurchased under plan - - - - - Average price of shares repurchased - - - - - Cash dividends declared per common share 0.210 0.210 0.210 0.210 0.200 Accretable yield on acquired loans 1,863 1,496 1,569 1,123 1,762 Financial Highlights - Adjusted (non-GAAP) (1) Adjusted earnings $        49,634 $        46,005 $        41,897 $        40,351 $        50,215 Adjusted diluted earnings per share 0.39 0.37 0.33 0.32 0.40 Adjusted return on average assets 0.73 % 0.67 % 0.62 % 0.60 % 0.73 % Adjusted return on average common equity 5.57 % 5.22 % 4.88 % 4.71 % 5.97 % Adjusted return on tangible common equity 9.83 % 9.34 % 8.89 % 8.62 % 11.10 % Adjusted efficiency ratio (2) 62.89 % 63.38 % 65.68 % 66.42 % 62.91 % YEAR-TO-DATE Financial Highlights - GAAP Net Income $      152,693 $      104,374 $        79,634 $        38,871 $      175,057 Diluted earnings per share 1.21 0.83 0.63 0.31 1.38 Return on average assets 0.56 % 0.51 % 0.59 % 0.57 % 0.64 % Return on average common equity 4.38 % 4.02 % 4.64 % 4.54 % 5.21 % Return on tangible common equity (non-GAAP) (1) 7.96 % 7.39 % 8.50 % 8.33 % 9.76 % Net interest margin (FTE) 2.74 % 2.70 % 2.68 % 2.66 % 2.78 % Efficiency ratio (2) 69.57 % 71.00 % 68.90 % 69.41 % 67.75 % FTE adjustment 25,820 19,396 12,998 6,422 25,443 Average diluted shares outstanding 126,115,606 125,910,260 125,693,536 125,661,950 126,775,704 Cash dividends declared per common share 0.840 0.630 0.420 0.210 0.800 Financial Highlights - Adjusted (non-GAAP) (1) Adjusted earnings $      177,887 $      128,253 $        82,248 $        40,351 $      207,716 Adjusted diluted earnings per share 1.41 1.02 0.65 0.32 1.64 Adjusted return on average assets 0.65 % 0.63 % 0.61 % 0.60 % 0.75 % Adjusted return on average common equity 5.10 % 4.94 % 4.80 % 4.71 % 6.18 % Adjusted return on tangible common equity 9.18 % 8.96 % 8.76 % 8.62 % 11.46 % Adjusted efficiency ratio (2) 64.56 % 65.14 % 66.05 % 66.42 % 61.32 % END OF PERIOD Book value per share $          28.08 $          28.11 $          27.56 $          27.42 $          27.37 Tangible book value per share 16.80 16.78 16.20 16.02 15.92 Shares outstanding 125,651,540 125,554,598 125,487,520 125,419,618 125,184,119 Full-time equivalent employees 2,946 2,972 2,961 2,989 3,007 Total number of financial centers 222 234 234 233 234 (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  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023  (in thousands, except per share data) QUARTER-TO-DATE  Net income $    48,319 $    24,740 $   40,763 $     38,871 $    23,907 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - - 283 1,549 10,521 Early retirement program 200 (1) 118 219 1,032 Termination of vendor and software services - (13) 615 - - Loss (gain) on sale of securities - 28,393 - - 20,218 Branch right sizing (net) 1,581 410 519 236 3,846 Tax effect of certain items (1) (466) (7,524) (401) (524) (9,309)     Certain items, net of tax 1,315 21,265 1,134 1,480 26,308  Adjusted earnings (non-GAAP) $    49,634 $    46,005 $   41,897 $     40,351 $    50,215  Diluted earnings per share $        0.38 $        0.20 $       0.32 $         0.31 $        0.19 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - - - 0.01 0.08 Early retirement program - - - - 0.01 Termination of vendor and software services - - 0.01 - - Loss (gain) on sale of securities - 0.23 - - 0.16 Branch right sizing (net) 0.01 - - - 0.03 Tax effect of certain items (1) - (0.06) - - (0.07)     Certain items, net of tax 0.01 0.17 0.01 0.01 0.21  Adjusted diluted earnings per share (non-GAAP) $        0.39 $        0.37 $       0.33 $         0.32 $        0.40  (1) Effective tax rate of 26.135%. Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP) QUARTER-TO-DATE     Noninterest income $    43,558 $    17,130 $   43,299 $     43,184 $    21,974 Certain noninterest income items Loss (gain) on sale of securities - 28,393 - - 20,218     Adjusted noninterest income (non-GAAP) $    43,558 $    45,523 $   43,299 $     43,184 $    42,192     Noninterest expense $  141,117 $  137,193 $ 139,354 $   139,879 $  148,139 Certain noninterest expense items Early retirement program (200) 1 (118) (219) (1,032) FDIC Deposit Insurance special assessment - - (283) (1,549) (10,521) Termination of vendor and software services - 13 (615) - - Branch right sizing expense (1,581) (410) (519) (236) (3,846)     Adjusted noninterest expense (non-GAAP) $  139,336 $  136,797 $ 137,819 $   137,875 $  132,740     Salaries and employee benefits $    71,588 $    69,167 $   70,716 $     72,653 $    66,982 Certain salaries and employee benefits items Early retirement program (200) 1 (118) (219) (1,032) Other - (1) 1 - 2     Adjusted salaries and employee benefits (non-GAAP) $    71,388 $    69,167 $   70,599 $     72,434 $    65,952     Other operating expenses $    46,115 $    44,540 $   45,352 $     42,513 $    48,570 Certain other operating expenses items Termination of vendor and software services - 13 (615) - - Branch right sizing expense (1,457) (184) (392) (83) (3,708)     Adjusted other operating expenses (non-GAAP) $    44,658 $    44,369 $   44,345 $     42,430 $    44,862 Simmons First National Corporation  SFNC  Reconciliation Of Non-GAAP Financial Measures - Adjusted Earnings - Year-to-Date  For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023  (in thousands, except per share data) YEAR-TO-DATE  Net income $  152,693 $  104,374 $   79,634 $     38,871 $  175,057 Certain items (non-GAAP) FDIC Deposit Insurance special assessment 1,832 1,832 1,832 1,549 10,521 Merger related costs - - - - 1,420 Early retirement program 536 336 337 219 6,198 Termination of vendor and software services 602 602 615 - - Loss (gain) on sale of securities 28,393 28,393 - - 20,609 Branch right sizing (net) 2,746 1,165 755 236 5,467 Tax effect of certain items (1) (8,915) (8,449) (925) (524) (11,556)     Certain items, net of tax 25,194 23,879 2,614 1,480 32,659  Adjusted earnings (non-GAAP) $  177,887 $  128,253 $   82,248 $     40,351 $  207,716  Diluted earnings per share $        1.21 $        0.83 $       0.63 $         0.31 $        1.38 Certain items (non-GAAP) FDIC Deposit Insurance special assessment 0.02 0.02 0.02 0.01 0.08 Merger related costs - - - - 0.01 Early retirement program - - - - 0.05 Loss (gain) on sale of securities 0.23 0.23 - - 0.17 Branch right sizing (net) 0.02 0.01 0.01 - 0.04 Tax effect of certain items (1) (0.07) (0.07) (0.01) - (0.09)     Certain items, net of tax 0.20 0.19 0.02 0.01 0.26  Adjusted diluted earnings per share (non-GAAP) $        1.41 $        1.02 $       0.65 $         0.32 $        1.64  (1) Effective tax rate of 26.135%. Reconciliation of Certain Noninterest Income and Expense Items (non-GAAP) YEAR-TO-DATE     Noninterest income $  147,171 $  103,613 $   86,483 $     43,184 $  155,566 Certain noninterest income items Loss (gain) on sale of securities 28,393 28,393 - - 20,609     Adjusted noninterest income (non-GAAP) $  175,564 $  132,006 $   86,483 $     43,184 $  176,175     Noninterest expense $  557,543 $  416,426 $ 279,233 $   139,879 $  563,061 Certain noninterest expense items Merger related costs - - - - (1,420) Early retirement program (536) (336) (337) (219) (6,198) FDIC Deposit Insurance special assessment (1,832) (1,832) (1,832) (1,549) (10,521) Termination of vendor and software services (602) (602) (615) - - Branch right sizing expense (2,746) (1,165) (755) (236) (5,467)     Adjusted noninterest expense (non-GAAP) $  551,827 $  412,491 $ 275,694 $   137,875 $  539,455     Salaries and employee benefits $  284,124 $  212,536 $ 143,369 $     72,653 $  286,117 Certain salaries and employee benefits items Early retirement program (536) (336) (337) (219) (6,198) Other - - 1 - 2     Adjusted salaries and employee benefits (non-GAAP) $  283,588 $  212,200 $ 143,033 $     72,434 $  279,921     Other operating expenses $  178,520 $  132,405 $   87,865 $     42,513 $  177,164 Certain other operating expenses items Termination of vendor and software services (602) (602) (615) - - Branch right sizing expense (2,116) (659) (475) (83) (4,937)     Adjusted other operating expenses (non-GAAP) $  175,802 $  131,144 $   86,775 $     42,430 $  172,227 Simmons First National Corporation  SFNC  Reconciliation Of Non-GAAP Financial Measures - End of Period  For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023 ($ in thousands, except per share data) Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets Total common stockholders' equity $   3,528,872 $   3,528,833 $   3,458,869 $   3,439,126 $   3,426,488 Intangible assets:    Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799)    Other intangible assets (97,242) (101,093) (104,943) (108,795) (112,645) Total intangibles (1,418,041) (1,421,892) (1,425,742) (1,429,594) (1,433,444) Tangible common stockholders' equity $   2,110,831 $   2,106,941 $   2,033,127 $   2,009,532 $   1,993,044 Total assets $ 26,876,049 $ 27,269,404 $ 27,369,072 $ 27,372,175 $ 27,345,674 Intangible assets:    Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799)    Other intangible assets (97,242) (101,093) (104,943) (108,795) (112,645) Total intangibles (1,418,041) (1,421,892) (1,425,742) (1,429,594) (1,433,444) Tangible assets $ 25,458,008 $ 25,847,512 $ 25,943,330 $ 25,942,581 $ 25,912,230 Ratio of common equity to assets 13.13 % 12.94 % 12.64 % 12.56 % 12.53 % Ratio of tangible common equity to tangible assets 8.29 % 8.15 % 7.84 % 7.75 % 7.69 % Calculation of Tangible Book Value per Share Total common stockholders' equity $   3,528,872 $   3,528,833 $   3,458,869 $   3,439,126 $   3,426,488 Intangible assets:    Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799)    Other intangible assets (97,242) (101,093) (104,943) (108,795) (112,645) Total intangibles (1,418,041) (1,421,892) (1,425,742) (1,429,594) (1,433,444) Tangible common stockholders' equity $   2,110,831 $   2,106,941 $   2,033,127 $   2,009,532 $   1,993,044 Shares of common stock outstanding 125,651,540 125,554,598 125,487,520 125,419,618 125,184,119 Book value per common share $          28.08 $          28.11 $          27.56 $          27.42 $          27.37 Tangible book value per common share $          16.80 $          16.78 $          16.20 $          16.02 $          15.92 Calculation of Coverage Ratio of Uninsured, Non-Collateralized Deposits Uninsured deposits at Simmons Bank $   8,467,291 $   8,355,496 $   8,186,903 $   8,413,514 $   8,328,444 Less: Collateralized deposits (excluding portion that is FDIC insured) 2,790,339 2,710,167 2,835,424 2,995,241 2,846,716 Less: Intercompany eliminations 1,045,734 986,626 943,979 775,461 728,480 Total uninsured, non-collateralized deposits $   4,631,218 $   4,658,703 $   4,407,500 $   4,642,812 $   4,753,248 FHLB borrowing availability $   4,716,000 $   4,955,000 $   4,910,000 $   5,326,000 $   5,401,000 Unpledged securities 4,103,000 4,110,000 4,145,000 4,122,000 3,817,000 Fed funds lines, Fed discount window and   Bank Term Funding Program (1) 2,081,000 2,109,000 2,065,000 2,009,000 1,998,000 Additional liquidity sources $ 10,900,000 $ 11,174,000 $ 11,120,000 $ 11,457,000 $ 11,216,000 Uninsured, non-collateralized deposit coverage ratio 2.4 2.4 2.5 2.5 2.4  (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 $        11,536 $          9,314 $          8,077 $          8,070 Less: Net charge offs from run-off portfolio (1) 2,500 3,500 6,700 4,500 Net charge offs excluding run-off portfolio $          9,036 $          5,814 $          1,377 $          3,570 Average total loans $ 17,212,034 $ 17,208,162 $ 17,101,799 $ 16,900,496 Annualized net charge offs to average loans (NCO ratio) 0.27 % 0.22 % 0.19 % 0.19 % NCO ratio, excluding net charge offs associated with run-off portfolio (annualized) 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  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023 ($ in thousands) Calculation of Adjusted Return on Average Assets Net income $        48,319 $        24,740 $        40,763 $        38,871 $        23,907 Certain items (non-GAAP) FDIC Deposit Insurance special assessment - - 283 1,549 10,521 Early retirement program 200 (1) 118 219 1,032 Termination of vendor and software services - (13) 615 - - Loss (gain) on sale of securities - 28,393 - - 20,218 Branch right sizing (net) 1,581 410 519 236 3,846 Tax effect of certain items (2) (466) (7,524) (401) (524) (9,309) Adjusted earnings (non-GAAP) $        49,634 $        46,005 $        41,897 $        40,351 $        50,215 Average total assets $ 27,078,943 $ 27,216,440 $ 27,305,277 $ 27,259,399 $ 27,370,811 Return on average assets 0.71 % 0.36 % 0.60 % 0.57 % 0.35 % Adjusted return on average assets (non-GAAP) 0.73 % 0.67 % 0.62 % 0.60 % 0.73 % Calculation of Return on Tangible Common Equity Net income available to common stockholders $        48,319 $        24,740 $        40,763 $        38,871 $        23,907 Amortization of intangibles, net of taxes 2,843 2,845 2,845 2,844 2,965 Total income available to common stockholders $        51,162 $        27,585 $        43,608 $        41,715 $        26,872 Certain items (non-GAAP) FDIC Deposit Insurance special assessment $                - $                - $             283 $          1,549 $        10,521 Early retirement program 200 (1) 118 219 1,032 Termination of vendor and software services - (13) 615 - - Loss (gain) on sale of securities - 28,393 - - 20,218 Branch right sizing (net) 1,581 410 519 236 3,846 Tax effect of certain items (2) (466) (7,524) (401) (524) (9,309) Adjusted earnings (non-GAAP) 49,634 46,005 41,897 40,351 50,215 Amortization of intangibles, net of taxes 2,843 2,845 2,845 2,844 2,965 Total adjusted earnings available to common stockholders (non-GAAP) $        52,477 $        48,850 $        44,742 $        43,195 $        53,180 Average common stockholders' equity $   3,543,146 $   3,505,141 $   3,451,155 $   3,447,021 $   3,336,247 Average intangible assets:    Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,799)    Other intangibles (99,405) (103,438) (107,173) (111,023) (114,861) Total average intangibles (1,420,204) (1,424,237) (1,427,972) (1,431,822) (1,435,660) Average tangible common stockholders' equity (non-GAAP) $   2,122,942 $   2,080,904 $   2,023,183 $   2,015,199 $   1,900,587 Return on average common equity 5.43 % 2.81 % 4.75 % 4.54 % 2.84 % Return on tangible common equity 9.59 % 5.27 % 8.67 % 8.33 % 5.61 % Adjusted return on average common equity (non-GAAP) 5.57 % 5.22 % 4.88 % 4.71 % 5.97 % Adjusted return on tangible common equity (non-GAAP) 9.83 % 9.34 % 8.89 % 8.62 % 11.10 % Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1) Noninterest expense (efficiency ratio numerator) $      141,117 $      137,193 $      139,354 $      139,879 $      148,139 Certain noninterest expense items (non-GAAP) Early retirement program (200) 1 (118) (219) (1,032) FDIC Deposit Insurance special assessment - - (283) (1,549) (10,521) Termination of vendor and software services - 13 (615) - - Branch right sizing expense (1,581) (410) (519) (236) (3,846) Other real estate and foreclosure expense adjustment (317) (87) (117) (179) (189) Amortization of intangibles adjustment (3,850) (3,851) (3,852) (3,850) (4,015) Adjusted efficiency ratio numerator $      135,169 $      132,859 $      133,850 $      133,846 $      128,536 Net interest income $      164,942 $      157,712 $      153,905 $      151,906 $      155,628 Noninterest income 43,558 17,130 43,299 43,184 21,974 Fully tax-equivalent adjustment (effective tax rate of 26.135%) 6,424 6,398 6,576 6,422 6,511 Efficiency ratio denominator 214,924 181,240 203,780 201,512 184,113 Certain noninterest income items (non-GAAP) (Gain) loss on sale of securities - 28,393 - - 20,218 Adjusted efficiency ratio denominator $      214,924 $      209,633 $      203,780 $      201,512 $      204,331 Efficiency ratio (1) 65.66 % 75.70 % 68.38 % 69.41 % 80.46 % Adjusted efficiency ratio (non-GAAP) (1) 62.89 % 63.38 % 65.68 % 66.42 % 62.91 % (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  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023 ($ in thousands) Calculation of Total Revenue and Adjusted Total Revenue Net interest income $      164,942 $      157,712 $      153,905 $      151,906 $      155,628 Noninterest income 43,558 17,130 43,299 43,184 21,974 Total revenue 208,500 174,842 197,204 195,090 177,602 Certain items, pre-tax (non-GAAP) Less: Gain (loss) on sale of securities - (28,393) - - (20,218) Adjusted total revenue $      208,500 $      203,235 $      197,204 $      195,090 $      197,820 Calculation of Pre-Provision Net Revenue (PPNR) Net interest income $      164,942 $      157,712 $      153,905 $      151,906 $      155,628 Noninterest income 43,558 17,130 43,299 43,184 21,974 Total revenue 208,500 174,842 197,204 195,090 177,602 Less: Noninterest expense 141,117 137,193 139,354 139,879 148,139 Pre-Provision Net Revenue (PPNR) $        67,383 $        37,649 $        57,850 $        55,211 $        29,463 Calculation of Adjusted Pre-Provision Net Revenue Pre-Provision Net Revenue (PPNR) $        67,383 $        37,649 $        57,850 $        55,211 $        29,463 Certain items, pre-tax (non-GAAP) Plus: Loss (gain) on sale of securities - 28,393 - - 20,218 Plus: FDIC Deposit Insurance special assessment - - 283 1,549 10,521 Plus: Early retirement program costs 200 (1) 118 219 1,032 Plus: Termination of vendor and software services - (13) 615 - - Plus: Branch right sizing costs (net) 1,581 410 519 236 3,846 Adjusted Pre-Provision Net Revenue $        69,164 $        66,438 $        59,385 $        57,215 $        65,080 Simmons First National Corporation  SFNC  Reconciliation Of Non-GAAP Financial Measures - Year-to-Date  For the Quarters Ended  Dec 31  Sep 30  Jun 30  Mar 31  Dec 31  (Unaudited) 2024 2024 2024 2024 2023 ($ in thousands) Calculation of Adjusted Return on Average Assets Net income $      152,693 $      104,374 $        79,634 $        38,871 $      175,057 Certain items (non-GAAP) FDIC Deposit Insurance special assessment 1,832 1,832 1,832 1,549 10,521 Merger related costs - - - - 1,420 Early retirement program 536 336 337 219 6,198 Termination of vendor and software services 602 602 615 - - Loss (gain) on sale of securities 28,393 28,393 - - 20,609 Branch right sizing (net) 2,746 1,165 755 236 5,467 Tax effect of certain items (2) (8,915) (8,449) (925) (524) (11,556) Adjusted earnings (non-GAAP) $      177,887 $      128,253 $        82,248 $        40,351 $      207,716 Average total assets $ 27,214,647 $ 27,260,212 $ 27,282,338 $ 27,259,399 $ 27,554,859 Return on average assets 0.56 % 0.51 % 0.59 % 0.57 % 0.64 % Adjusted return on average assets (non-GAAP) 0.65 % 0.63 % 0.61 % 0.60 % 0.75 % Calculation of Return on Tangible Common Equity Net income available to common stockholders $      152,693 $      104,374 $        79,634 $        38,871 $      175,057 Amortization of intangibles, net of taxes 11,377 8,534 5,689 2,844 12,044 Total income available to common stockholders $      164,070 $      112,908 $        85,323 $        41,715 $      187,101 Certain items (non-GAAP) FDIC Deposit Insurance special assessment $          1,832 $          1,832 $          1,832 $          1,549 $        10,521 Merger related costs - - - - 1,420 Early retirement program 536 336 337 219 6,198 Termination of vendor and software services 602 602 615 - - Loss (gain) on sale of securities 28,393 28,393 - - 20,609 Branch right sizing (net) 2,746 1,165 755 236 5,467 Tax effect of certain items (2) (8,915) (8,449) (925) (524) (11,556) Adjusted earnings (non-GAAP) 177,887 128,253 82,248 40,351 207,716 Amortization of intangibles, net of taxes 11,377 8,534 5,689 2,844 12,044 Total adjusted earnings available to common stockholders (non-GAAP) $      189,264 $      136,787 $        87,937 $        43,195 $      219,760 Average common stockholders' equity $   3,486,822 $   3,467,908 $   3,449,089 $   3,447,021 $   3,359,312 Average intangible assets:    Goodwill (1,320,799) (1,320,799) (1,320,799) (1,320,799) (1,320,510)    Other intangibles (105,239) (107,197) (109,098) (111,023) (121,098) Total average intangibles (1,426,038) (1,427,996) (1,429,897) (1,431,822) (1,441,608) Average tangible common stockholders' equity (non-GAAP) $   2,060,784 $   2,039,912 $   2,019,192 $   2,015,199 $   1,917,704 Return on average common equity 4.38 % 4.02 % 4.64 % 4.54 % 5.21 % Return on tangible common equity 7.96 % 7.39 % 8.50 % 8.33 % 9.76 % Adjusted return on average common equity (non-GAAP) 5.10 % 4.94 % 4.80 % 4.71 % 6.18 % Adjusted return on tangible common equity (non-GAAP) 9.18 % 8.96 % 8.76 % 8.62 % 11.46 % Calculation of Efficiency Ratio and Adjusted Efficiency Ratio (1) Noninterest expense (efficiency ratio numerator) $      557,543 $      416,426 $      279,233 $      139,879 $      563,061 Certain noninterest expense items (non-GAAP) Merger related costs - - - - (1,420) Early retirement program (536) (336) (337) (219) (6,198) FDIC Deposit Insurance special assessment (1,832) (1,832) (1,832) (1,549) (10,521) Termination of vendor and software services (602) (602) (615) - - Branch right sizing expense (2,746) (1,165) (755) (236) (5,467) Other real estate and foreclosure expense adjustment (700) (383) (296) (179) (892) Amortization of intangibles adjustment (15,403) (11,553) (7,702) (3,850) (16,306) Adjusted efficiency ratio numerator $      535,724 $      400,555 $      267,696 $      133,846 $      522,257 Net interest income $      628,465 $      463,523 $      305,811 $      151,906 $      650,126 Noninterest income 147,171 103,613 86,483 43,184 155,566 Fully tax-equivalent adjustment (effective tax rate of 26.135%) 25,820 19,396 12,998 6,422 25,443 Efficiency ratio denominator 801,456 586,532 405,292 201,512 831,135 Certain noninterest income items (non-GAAP) (Gain) loss on sale of securities 28,393 28,393 - - 20,609 Adjusted efficiency ratio denominator $      829,849 $      614,925 $      405,292 $      201,512 $      851,744 Efficiency ratio (1) 69.57 % 71.00 % 68.90 % 69.41 % 67.75 % Adjusted efficiency ratio (non-GAAP) (1) 64.56 % 65.14 % 66.05 % 66.42 % 61.32 % (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

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